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Francois Michel: Hello, everyone, and thank you for being here today with us in Paris and also online. I'm, of course, very pleased to meet you all for the first time, and I look forward to having many more interactions with you and with the financial community at large. Today, here with Thierry Hochoa, who is GTT CFO, we will be presenting our financial results for 2025. And Karim Chapot, who is our Senior VP for Technology, will also come on stage to talk about our technologies. Karim has been in GTT for nearly 3 decades. The other members of the Executive Committee are here with us today, and we are all available at the end of this presentation to answer any questions you may have. So the agenda for today is the usual one. I will start by sharing the 2025 key highlights. Then together with Karim, we will give you an update on our technologies and solutions and our innovation strategy. I will then walk you through the market update. Thierry will cover our 2025 financial performance, and I will conclude this presentation with the usual guidance and some key takeaways before opening the floor to your questions. So to start -- I will start with a couple of personal and very important comments on how I see GTT. GTT is a unique company by many, many aspects. And I find it after a couple of weeks in my role, very impressive, even more impressive than what I thought it was. We have a unique technology and expertise which sits at the core of the LNG global value chain. Our expertise is unmatched, and it relies on a very long, very long solid track record of 60 years. There is, of course, in the company, a large number of talents of very competent staff experts and a good combination of IP and skills. It's not only formal IP, it's a lot of skills in the trade. And all of this makes it a very strong basis to create value, which -- in a sustainable fashion, which the company has done successfully in the past and which I can assure you will continue in a very solid, very sustainable manner in the future. I wanted to make this point is something that I do believe fundamentally. That's also why I joined this company. And it is also a belief that is shared amongst our staff and employees. So it's the core DNA of the company. Now key figures. So I'm also very proud to announce that 2025 has been a historical year for GTT. You have seen the release. We have seen a very significant increase both in revenue and in EBITDA, reaching record high levels for the third consecutive year. Our revenue has increased to EUR 803 million or plus 25% year-on-year. Our EBITDA has increased to EUR 542 million, which is plus 40% year-on-year. Our net result has also increased markedly to EUR 414 million. And this has led the Board to propose a dividend of EUR 8.94 per share, which is in line with GTT's constant commitment since the IPO. We continue to provide also a good visibility on the activity of the company. At the end of '25, the order book of GTT is solid. It stands at EUR 1.6 billion. Now regarding the key highlights, and this slide is very important in the presentation. And I start with the core business, which is the membrane containment solutions. The year 2025 was extremely positive in many aspects, but it was singular also. Why? Because the first part of the year, and you see this clearly in the chart -- on the chart on the right, was impacted by very important geopolitical tensions, notably between the U.S. and China. Of course, the discussions on tariffs weighted a lot on the decisions from shipowners to place new orders. And so we saw a moderate order intake well until Q3 and even with a through in Q2, only LNGC was ordered in Q2. It is temporary, but it is as it is. And so what is positive at the end is that the momentum picked up in Q4. You see we have registered 18 LNGC orders in Q4 alone, which is almost as much as the 19 that we have had during the first 9 months of the year. And I can assure you that the momentum continues in '26. We are seeing a very high level of activity of commercial activity. Since the beginning of the year, we have announced 14 LNGC orders since January so far in '26, and we expect many, many more to come quickly. So this temporary slowdown, in fact, is counterbalanced for us by a very high level of activity that has picked up after the end of Q3. And this dynamic is quite similar, was quite similar for FIDs. If you look at the FIDs for new liquefaction trains, in fact, we saw a somewhat moderate start of the year overall and a clear acceleration in the second part in the second half of the year. We could have put the chart here. And overall, '25 was a record year for the decisions to -- final investment decisions for LNG trains with a record level of 84 million tonnes per annum, of which 62 million in the U.S.A. alone. We estimate that these FIDs announced last year will translate into additional needs for new LNGC vessels, representing roughly 150 additional vessels. And so of course, as a consequence, we are confident about the fact that the our order entry -- the level of activity or commercial activity, the order entry will be dynamic, will be good in the quarters to come, but also in the medium term. Second important points for 2025, it is the year when our marine and digital activities, and this is how we call them today, reached a critical mass. We expanded our digital solutions with the acquisition of Danelec. This activity now brings together digital solutions and services dedicated to what we did before, which is services mostly to the LNGC market, but also right now with -- to the wider maritime fleet serving 17,000 vessels. And we now have a very robust platform, a critical mass of people of skills and a large installed base of products, which have reached the market. It may sounds a very simple, but for a medium-sized company, the size of GTT, having an addition of almost 200 highly competent, highly expert people coming in the digital area will allow us to accelerate massively in this area versus what we had been able to do in the previous years. So with this, we are very well equipped to create value in the digital area, marine and digital area, but also for our core LNGC market, and I will come back to it. The third type of activities that we have, and we single out what we call advanced technologies, what I call advanced technologies. Which are the type of activities that are breakthrough in nature and with a very, very high level of technical content. As you know, GTT is a technology company. We need a couple of activities, which are really ahead of the curve, extremely innovative and where we can take perhaps sometimes together with partners, some limited risk to really push the boundaries in terms of technological innovation. Our venture arm, GTT Strategic Ventures had an active year last year. We added 2 new participations, novoMOF, so Metal-Organic Frameworks, but also CorPower. And we also increased our stake in bound4blue to support its industrial developments. Our advanced engineering and modeling consulting team, which is called OS, which has been part of GTT since 2020, continued the development of its modeling solutions and a very active year for AI, in particular, for the maritime applications, but also for other types of applications. And as you know, we have actively taken the decision to focus, I would say, Elogen on the development of its core stack to take into account the slowdown on the [ hydrogen ] market and also focus [ hydrogen ] on what GTT is the best at, which is developing the core technology. So all of this well done in the year. Now let's turn into our technologies and solutions before looking at our market. First, a couple of comments on our innovation strategy. As I was saying, technology and innovation are at the very core of the DNA of GTT. Again, that's the reason I joined because it sets this company completely apart versus traditional company. We have a huge number of experts at the top level in the world in our field. We have more than 3,600 active patents, and we filed again last year, 68 patents, which is slightly upward versus '24. And our innovation strategy is, of course, built by the teams. It's built around the level of expertise that they have, but it's built -- it follows a very simple, I would say, step-by-step disciplined approach, which I will try to summarize as such for the core business. First, we work to improve the efficiency of our containment systems, not only through breakthrough innovations and sometimes we communicate on the breakthrough innovations such as NEXT1, which is a fantastic system, but also with a very sustainable gradual approach to upgrading our existing systems. We have -- our systems, Mark III and NO96 are improved, I would say, almost every quarter with new designs, with new add-ons, with new solutions that allow them to perform better for customers. And this is what makes our innovation strategy so specific. Second, we also invest beyond our own internal systems to improve the overall performance of the LNGC tankers. For instance, we released the design of a new LNGC architecture with 3 tanks and a capacity of 200,000 cubic meters. That means lower boil-off rate, lower operating costs, lower CapEx for the owners. And all of this creates a lot of value for the industry. This comes from us. The third way, and this is an area where you will see an acceleration in the coming years because it's an area where we can invest in a value-creating fashion in a very solid manner, thanks to our newly acquired digital platform. We, of course, have a lot of know-how and a lot of technologies to support the ship operations, especially the LNGC operations through their lifetime. Because we provide technical assistance at various steps of the ship's life because we know how to prevent sloshing because we give day-to-day advice to optimize maintenance or to, for instance, perform alternative survey scheduling. So this is an area where we create value through innovation and that will accelerate. Now to give you more details or better illustrations than I can about those technologies, let me hand over the floor to Karim Chapot, who will present you our solutions. Karim Chapot: Thank you, Francois. Hello, everyone. Thank you for joining us today. I'm very pleased to give you more details and share what made GTC so distinctive. As Francois said, we regularly improve our technology. So we have our standard product, NO96 [ SmartFeed ] and there are regular updates to improve the thermal performance, to improve the reliability of the technology to fit for needs of our clients, and that's something that we did for years. But we are also developing new technologies, upgrade technologies. And this next one product is really our future product. It's really -- it's fantastic products, as said by Francois, which is an upgraded thermal performance, fantastic reliability. And we have the best product today with this next one. And we are also developing new solutions, and that's really where the membrane shine. It's the ability to cover new needs. And for example, for ammonia and low carbon fuel, membrane is fully adapted. And that's really what matters for us for the future. We have a solution. We have upgrades to cover new future needs for fuels. All that will be transformed in the future because we have -- we are coming in a new area, I would say, it's an area of data, and this is made possible with Danelec. And through technology, we improve data collection, and that's really new now. We have access to a lot of information. And based on this information, we are in position to better understand what's happening on shipping operation. So to answer to very specific questions that where it was not possible in the past. So you have -- nowadays, you need to understand that you have several sensors on the ship. This sensor, we have access to the data. And through the data, we are in position to provide very detailed answers. And let's give an example of this kind of question that we have regularly from our clients. Imagine that, for example, in the United States, we have Shell gas with very high level of nitrogen. This is typical of what we have. And this generates a lot of issues for the clients. When you have a very high level of nitrogen, it means that the cargo is very cold. It means that you have a risk of boiler freight, very high level of boiler freight at the beginning of the voyage. You have issues regarding, I would say, the thermal efficiency of your fuel, which means risk of clocking on the propulsion, et cetera, et cetera, mixing of cargoes. This is really where GTT is very strong. It is understanding also operations. So it's not only the containment, but understanding the operation and how we can answer in a very precise manner to our clients on a day-to-day operation and provide the best answers for them to improve their operation. And that's where we would like to focus today our efforts and provide value to our customers. This is here just one example, but we have many, many examples coming every day where we could provide answers and industrialize our answers. So through the combination of expertise and data, we can improve today and tomorrow all these digital platforms based on the know-how that we have gathered all along the year, based on this data and the understanding of the limit of the technology, we can provide real-time monitoring and answer to all their potential need. And I would say, improve the overall value chain from the terminals from the liquefaction terminal to the regasification terminal. So we started already when you look at the maintenance, what we call the ASP alternative survey plan based on all this data and knowing exactly what happened on the ship in operation, we are in a position to really improve the operation of the ship. And instead of opening the tank every 5 years, we propose to the client to open the tank to every 7.5 years. So we increase the time duration between the opening of the tank. And this generates, of course, an optimization of the OpEx of the -- for the owner. And so that's a great solution that is today had a lot of success. So our objective is clear. We want to reinforce our technical leadership by providing these high-value services. This is possible because we have very, very good relation with all the shipowners. We have I would say, very good relation with all the value chain, with all the stakeholders, the charterers. And by having this very strong link, we are in a position to fully understand their needs and to fulfill those needs. And that's really where we would like to dig into. So with this proximity and combined with decades of operational experience and having a deep know-how of experience, it's enabled us to offer relevant solution and innovation and not just be focused on the tanks. So thank you. And now I hand back to Francois. Francois Michel: Thank you, Karim. Now let's look at the market dynamics. My take on this is very simple, I would say. The LNG carrier demand will be very, very good, very strong in the future for very tangible, very concrete reasons. First, there is a growing need for energy and natural gas, in particular, which is a flexible energy will grow and it's also complementary to renewables. Second, to transport this gas -- there is a growing trend to liquefy it for obvious geographic reasons, I would say, but also because it provides greater flexibility and security, both for the producers and for the consumers. And third, and I will dive into this because it's important in our 10-year forecast. The LNG carrier fleet is aging, and this will drive a need for new vessels. So let's take those topics in turn. First, if we start with the traditional energy forecast, as I was saying, and you see it on the chart, what is interesting for us to see is that, of course, the renewable energy is growing, but it is growing in tandem with the growth coming from natural gas. And we view natural gas as slowly, gradually step-by-step in a solid fashion, increasing its share in the overall energy mix, reaching 26% by 2035. Second, as I was saying, natural gas can be consumed locally or exported, but for geographic reasons as well as geopolitical reasons, really core geopolitical reasons, you will see less and less pipelines and more and more liquefactions to provide greater flexibility and greater safety or security of supply to the consumers. The results of this is that the LNG demand will grow in a steady fashion at about 4.5% in the coming years, which is higher than the gas trade, which is higher than the gas demand and of course, higher than the global energy demand growth in volume of slightly below 1%. And this is exactly what you see in all the major forecast from Wood Mackenzie, from BP, from Shell, and they are all pointing towards a sustained growth in demand for LNG well into 2040 and most likely way beyond. It is also worth noting that the IEA has recently reintroduced its current policy scenario this year and also upgraded its stated policy scenario. Second, it's also important to note that all of those forecasts have been revised upward recently. So we see in a consistent manner, a very, let's say, solid growth in demand for the next decades in LNG. And as you can see on the right, with the various projects that have reached FIDs in '25, we now expect the supply to be approximately enough to cover the demand into 2035 or so. But of course, more liquefaction capabilities will be needed to meet the demand from 2030 -- 2035 onwards. One comment on what we call the shipping intensity. The shipping intensity is the number of ships that are needed to transport 1 million tonne per annum of natural gas per year. What you see on this chart is that the fastest-growing producer of LNG is the U.S.A. The fastest-growing consumer of LNG is Asia and the longest route is the U.S.A. to Asia. If we add to that the fact that the Panama Canal is congested, you will see overall an upward movement in the LNG intensity over time for -- again, here also for very concrete, very basic reasons. Now if we look in details at -- if we zoom in on the FIDs, as I mentioned before, 2025 was absolutely a record year in number of FIDs. We have a total number of 84 million tonnes per annum of FIDs, including 62 million in the U.S.A. And I try to compare this with the figures from the past. The average for the past few years was between 20 and 25 a year. So very, very -- more than 3x the average of the previous years. And just this single year, not yet translated into additional LNGCs orders really for real, will represent an additional need of 150 vessels. So it's a very positive point in terms of outlook. What is also interesting is that additional projects, more than those ones will be needed to serve the LNG demands that we have seen on the charts before and that some of those projects are well advanced in terms of SPAs. In fact, we have counted more than 50 million tonnes per annum of pre-FID SPAs, so SPAs that have not been included in signed firm FIDs yet. And this is -- this bodes very well, in fact, for the activity level of future FIDs. We have also put on this slide the number of projects, the list of projects which could take FID in '26 and '27. Of course, it's always very difficult to point to which project exactly will take FID when, but that gives you an idea of the material reality of this trend. The third driver for the LNGC demand, which I wanted to underline is the fleet replacement. And here, we need robust statistics. The LNG carrier fleet is aging. And in the next 10 years, more than 300 vessels will be more than 20 years old and of which a bit more than 200 will be more than 25 years old. And interestingly, by the way, you will see on the next slides that's when ships are being scrapped today, they are being scrapped at 25 years old. So there is a turning point in the value of the ship at about this age. And as you can see on this middle chart, less than half of the fleet today is running on the latest types of engines, which are far more efficient than the older ones. So I would say, regardless, our view, our basic view is that regardless of additional incentives such as the EU ETS, which will, of course, put some additional pressure to decarbonize this full industry and which will further increase gradually over the years to come. But I would say, regardless of this, we are convinced that simple economics will put pressure on the fleet to scrap more and more vessels and to replace them with new ones. And we are already seeing this happening because, as you know, and this is what you see on the left chart, we have seen last year a record number of scraps and conversion. The total number of ships being scrapped or converted has reached an all-time high of 19 ships. All of these factors combined will lead us to review upward our long-term estimates for LNGCs over the next 10 years, which we know put here, hence, the plus-plus after the 450. It's a little bit early for me. I've not met all customers. So it's a little bit early for me to give you very specific figures on that. But let's say, all the indications we have, markets indications we have for the moment point to a solid upward revision of this figure. So we see a very solid level of activity in our sectors for fundamental reasons. The rest of the activity is good. We see it as solid, and we have not made any revisions. Now if I turn to another market for us, which is LNG as a fuel. As you know, LNG as a fuel -- the LNG as a fuel market continues to be booming. And in fact, it has reached more than 150 units, both in '24 and in '25, and I believe that it will stay at a very high level. In fact, for fundamental reasons, when you talk to ship owners or the shipyards, LNG is winning the battle of the fuel compared with methanol or compared with oil, and this is clearly a fundamental trend. Second, what is also positive is that we are convinced that membrane type solutions and our solutions are the right ones for many of those LNG tanks. Not for all, but for many of them, if not for the majority. So a very significant share. Now of course, because this market has increased very fast, we need to make sure that we bring the membrane type solutions in a way that answers to the shipyards needs and to their level of expertise in how to handle membrane type solutions as fast. And it's also true that in the very short run, using a Type C tank is easier for a shipyard. So we will be working on that. We have a strong expertise. We have delivered a lot of systems, and we have come with a very strong action plan on this, which is summarized at the bottom here, but where I'm involved myself. First, of course, we invest and we will continue to do so in R&D to make sure that membrane type solutions keep improving. We have come up with new systems in '24 with the recycle with the [indiscernible] technology, and we just got an AiP for GTT Cubiq in -- do a couple of weeks ago. So you will see more and more innovation to have better membrane systems. But second, which is even more important to me, we will be working together with partners very close to the shipyards that are building the ships so that's we bring our membrane type solutions in a very, let's say, easy to do business with pre-industrialized fashion so that the shipyards can almost bring them plug and play in their own processes. And here, I see a potential, very concrete potential creation of value leveraging on our expertise. Especially for the shipyards that have not been used to using membranes for LNGC, which I think this is the hurdle today for the growth in our solutions. Now third market for us is marine and digital solutions. And as you know, we had already been developing a number of solutions historically in GTT, building on our own internal forces, building on advanced modeling and engineering capabilities, the OS team in particular, and also some acquisitions, Ascenz Marorka, and BPS. Everything changed in scale and in nature. And I insist on the fact that everything -- I mean, everything gained a critical mass last year in '25 because we [ know ] have a critical mass of solutions of staff and also on the number of ships that we serve. We [indiscernible] we have systems installed on 17,000 ships, which changes everything. The second point, which is very important and which I will underline is that we are not purely in hardware, and we are not purely in software here. We have the right mix, the right balance on the hardware and software solutions. And my view of this is -- and this is one of the reasons why we wanted to call this activity marine and digital is that it's not purely a software venture. It's very solid, robust systems at the core of the ship's operations, mixing hardware and software. With this, it brings us a very solid base to do 2 things. First of all, to accelerate the development of the marine and digital activity led by Casper Jensen. And we will keep developing on this. And I can tell you, I'm very confident about the synergies that we have announced so far, not only on cost, but also and more importantly, the sales synergies that will result from this. So the integration is running very well. We are confident, and we are solid there. Second, we will leverage this platform to create new services, really tangible concrete value-creating services for the LNGC fleet where we can mix this digital expertise and the expertise that we have in the membrane, in the containment systems and in the molecule handling, I would say. So let me hand over the floor now to Thierry for the financial overview, and then I'll be back for the '26 guidance and takeaways. Thierry Hochoa: Thank you, Francois. Good morning, everyone. Now moving on to the financial part of the presentation, and let's start with the order book. We can say the order intake has been more moderate than in 2025 than in previous years with 45 new orders in 2025 for the core business and 19 new orders for [ LNGs ] fuel, sorry. As mentioned by Francois earlier, part of the orders has been delayed from 2025 to 2026 and due to geopolitical uncertainties, but our backlog remains very solid with 280 units, 88 units at the end of December for the core business and 48 units for LNG as fuel. Moreover, the beginning of this year give us positive signals and confidence with the future or for the future because we have already been booked or notified of 14 orders of LNG and [indiscernible] carriers as of today. What does it mean 288 units in terms of consumptions and flows for the core business and in terms of revenues. This means EUR 1.6 billion in revenues already secured. This means strong visibility for GTT in the years to come with EUR 609 million in revenues in 2026, and for the core business alone. This means EUR 542 million in revenues for 2027. Now moving on to our revenue. Total revenue amounted to EUR 803 million in 2025, up plus 25% compared to last year, mainly driven by new builds and higher numbers of constructions under construction in 2025, mainly driven by services activities as well, which are almost stable at EUR 23 million, thanks to development of our certification activities and -- but less pre-engineering studies, mainly driven by Marine and Digital Solutions increasing their revenues by 131% compared to last year at around EUR 36 million and including Danelec activities, which generated EUR 6 million in 2025 in 5 months. And finally, revenue generated by electrolysers activities at EUR 4.6 million, reflecting our desire to mainly focus on our technology and on a few profitable projects. Let's continue with the other main aggregates of the P&L, in particularly the EBITDA and EBIT. You can see the impressive increase, respectively, by plus 40% for the EBITDA and 26% for both -- sorry, for EBIT compared to last year. This is mainly explained by the increase in revenue from GTT's activity -- main activity. This is explained by the absence of significant delays in ship construction schedules and this is explained by a strong and close monitoring of our costs. As a consequence, the EBITDA margins amounted or amount to 67% in 2025 compared to 60% last year. Net income also increased by 90% compared to last year, including the [ outsourcing ] cost of Elogen. Two additional comments on this slide. The first one regarding investments. Our investments increased mainly linked to the acquisition of Danelec for EUR 194 million in 2025 and the new minority stakes within the framework of GTT Ventures Capital. And regarding our cash position at EUR 347 million at the end of 2025, if we consider our first loan taken out for the acquisition of Danelec, the net cash position reached EUR 237 million at the end of 2025. So thanks to our strong activity and robust financial figures, the dividends distributed will represent 80% of the consolidated net income as announced in our guidance last year in the same place. This represents EUR 8.94 up -- per share, up 90% compared to last year. I will now hand to Francois to -- for the 2026 outlook and the conclusion. Francois Michel: Thank you, Thierry. So regarding the '26 outlook, so what we see is that we see '26 revenues ranging between EUR 740 million and EUR 780 million, still marking the second best year for GTT and following a record 2025. As we explained, there is a gradual end of the 2022 order peak, which was the very, very abnormal peak with 162 LNGC ordered in a single year and a somewhat moderate start of the '25 level. They have a mechanical impact temporarily, I would say, on the level of activity in '26. but it's not a level that will stay on -- it's not an effect that will stay on forever. So it's very temporary in terms of, I would say, slowdown. Second, our EBITDA level is expected in between EUR 490 million and EUR 530 million, very solid level, which I am sure you have noticed implies a very high level of EBITDA margin, and we will maintain a very strict cost discipline and execution control discipline to secure this level, I can assure you. The third point where we will be absolutely disciplined is dividend policy. We will maintain our dividend policy, which has been the core of our promise to investors over the past years and since the IPO. So that sums it up for the '26 outlook. Now before opening the floor to your questions, let me summarize or give you a few takeaways. So '25 is absolutely a record year for GTT. It shows that's the group has the right strategy, a fantastic, very unique positioning at the core of the LNG value chain, the capacity to execute on this positioning, the teams that are needed to secure this execution hence that also the discipline and the policy to execute it up to, of course, the dividend policies. So it also means that the staff have done a great job, and I would like to thank all of the teams for having delivered such a fantastic performance. Of course, we have been helped by a very good market, in particular in '25, but it will continue doing so in the future. Secondly, '25 is also a very good year for us when it comes to looking not at the past, but in the future because the record high level of FIDs that we have seen and that are solid and firm will translate into additional needs of 150 ships just for one single year. Third, at the end of '25, we still have a very solid order book at EUR 1.6 billion, which gives us a lot of -- of course, a lot of robustness in our forecast for the coming years. We are also -- '25 has also been the year that when we have built a real marine and digital activity, which we will leverage to create more value in this field, in this sector, but also for the core business of containment systems because it allows us to do a lot of activities through the lives of the ships for LNGCs, which we could not do before. So it will be -- it will allow us to create a lot more value. And third, I can tell you that when I look at what lies ahead, of course, we will continue to leverage our very strong expertise, the model of GTT, which is technology expertise based in the LNG and in, I would say, in the LNG world, but mixing it with advanced know-how and the good skills in data and digital will create a lot of value for all stakeholders, for a lot for our customers, but of course, a lot also for our shareholders. Now thank you for your attention. I hope the presentation was clear. And we and together with the management group here and Thierry, in particular, we are happy to answer to your questions. Jean-Luc Romain: I have a question about your technologies and the adoption of your new technologies. You mentioned GTT NEXT1 is a fantastic technology and Mark III and NO96 are continuously improved. What would convince the shipyards or the shipowner to move from continuously improved NO96 or Mark III to the NEXT1 technology. Same question for Cubiq. Francois Michel: I will -- thank you for your question. I will let Karim Chapot answer on the particular technologies and then perhaps give you some complement on the marketing strategy. Karim Chapot: Yes. Regarding -- that's true that NO and Mark have a fantastic legacy and had a lot of success and both clients and shipyards love this technology. But it's clear that the next one has a major advantage. It's first the level of reliability that is much higher than Mark III and NO. And also something that is special is the ability to be enhanced. This NEXT1 technology is designed for the future, is designed to, in fact, be really efficient in a world where we are -- we have a huge tension on the CO2 price and the requirement from the client to be at a very, very low boil of freight. And we are selling a solution at 0.07, but they are strong options and optionality on the design to be further improved, and that's really where the next one shine. So today, of course, the shipyards are looking at it. They are developing all this industrial scheme. We are working with them. We are supporting them. We are marketing the solution to the owners. And we see some very influent owners really interested by this optionality. For sure, as soon as the IMO and I would say, the LNG -- the [indiscernible] start to be important on the cost of CO2. It will go gradually, then the next one will really shine based on its characteristic, based on this thermal capabilities in improvement, based on its design, which this optionality are rather limited, I would say, for Mark III and NO96. Regarding the over solution, the Cubiq solution, the Cubiq solution is a solution that has the advantage of first reducing the cost. So we have removed the chamfers. So we have a solution that is fully optimized CapEx-wise. And this was promoted to the shipyard, and I can tell you they are really interested. They are interested because it offers really an optimum in the volume occupation for the ship. So you really, for example, for a different type of ship, you really have further volume that you can promote. So for example -- well, for different kind of applications. So the design is such that you optimize the volume, but you also reduce significantly the cost. And so that's an optimum. And we worked on the liquid motion side to reduce the sloshing load and improve the cost of the insulation. So by having all this improvement, we are in position to deliver a very good product for LNG as fuel application. And today, we see real interest for major shipyards. Unknown Executive: Can you please give some detail about the LNG global shipping market? What's the part of EU in the shipping market? And what could happen if the Russian gas come back to EU? It may happen. That's my first question. Second question is everything seems to run perfectly. So what is your worst nightmare. Francois Michel: So thank you for your question. Your first question was the LNG market dynamic for the EU and Russia, right? Okay. Thank you for your questions. So first of all, there will not be -- the way we anticipate is even if there is, let's say, a ceasefire or end of the war, then there will still be sanctions and there will be no additional orders or no activities until sanctions are lifted for the Russian projects. So no, if at some point in the future, the sanctions are lifted, we expect some Russian projects, Arctic LNG 2, for instance, to be able to reopen exports, including to the EU, and that would require additional ships, which will generate activity for us. That's the way we see it. So it's possibility to sell more. For the moment, it's totally close, and we are just monitoring the situation. Second -- your second question is everything runs perfectly. Yes, GTT is, I would say, it's an impressive machine. So I will not say the opposite. But of course, I see many things where I believe we can accelerate and create even more value and very concrete things building on what I have seen in the past. I will give you some very concrete grounded examples. One is, of course, leveraging what we have as a platform for digital applications to develop -- to be better in terms of service and maintenance and high value-added services for the LNGC market as a whole is something that -- I think it's a first win for us. Second, working better for the LFS and for the onshore market, understanding better the supply chain constraints, very close to the shipyards and the manufacturing constraints is also something where I think we can remove this bottleneck and increase our market share and the penetration of our solutions for those concrete applications. Then there is -- there are long-term very operational topics where that I will describe over time in the next couple of months, where I think the company can be even stronger on its core business and what has been done in the past. So I see a lot -- I'm very optimistic. I think I see even more potential for additional value creation and acceleration than what I thought before joining, to be frank. Henri Patricot: I have 2 questions. The first one, I know you said it's still early, but I wanted to come back to the 450++ and wondering how much is plus, plus worth? Are we taking 25, 50, 100 more orders? And what's giving you this increased confidence around this long-term outlook? And then secondly, on digital, you referenced the potential for synergies and growth. Just wondering, how do you expect that to translate into digital revenue growth this year and beyond? Francois Michel: Thank you for your questions. I did hesitate a lot on the wording of the 450++ because I knew it would trigger some questions. But I wanted to give you a deep indication on the fact that I am convinced that this number can be revised upwards. This number is the combination is the cumulative of 3 things. It's the amount of ships that still need to be delivered for existing projects that have reached FIDs. It's the amount of ships that will be needed for new FIDs, and this is where we have the highest uncertainty. And it's the amount of ships in the coming decade that will need to be scrapped. And there, we see a solid 200 to 225 ships being scrapped and that will need to be replaced for the various reasons that I explained before. So we had communicated before on the fact that the number would be slightly up versus 450. I see it significantly upward versus 450. That's the first thing. So significantly up, not just a handful, okay? Now let me turn to Thierry for the specific question on digital. Thierry Hochoa: Okay. Just regarding the digital activities, you know that we do not provide any guidance per [ BU ] -- but I can tell you that the growth of the digital will be significant first because we are going to integrate for 100% of Danelec and for the full year of 2026. That's a mechanic approach. And regarding the organic growth for the digital activities, we expect to deliver the synergies that we discussed last year. And we have a strong dynamic regarding the combination of hardware and software. And you know that regarding this acquisition, we do not have any common clients. And it's very easy, I guess, to combine these 2 activities and to develop common figures and common growth for the digital activities. But we do not disclose any figures per [ BU ]. Jean-Francois Granjon: Three questions from my side. The first one, regarding the expectation, we see an acceleration of new orders in the second half of last year and the case for the beginning of this year. Do you estimate that this should have a positive impact not on 2026, but on 2027 growth for the top line and for the earnings? The second question concerns the digital business. We see a strong improvement for the gross margin, 77% versus 48% previously. So can you explain what's happened? And do you consider this sustainable to see such a level of gross margin? And the last question regarding Elogen. We saw a strong cut for the losses last year. What do you expect for 2026 and above. Francois Michel: Thank you for your 3 questions. I will take number one and number three, and Thierry, you can -- Chap you can take the one on margin of digital. So one is the very positive dynamic that we see in order entry today, can it already have an impact as of '27? Yes. Yes, it definitely can. The extent for that is still unknown. But today, the average time between an order, a firm order and steel cutting is about 14 months. So I would say, in between 12 and 18 months. So it can have an impact or the beginning of an impact in '27. This is also the reason why the early '25 loss of moderate intake had an impact on our sales this year. So we are still in the period where what we are recording right now and what has been recorded in a very positive manner last year can be integrated in '27, Yes, of course. Jean-Francois Granjon: Francois, you expect some new growth for the top line in '27 versus '26? Francois Michel: It's too early to discuss, but it will have an impact. I mean if the level of orders stay at the level that we see today, of course, it will have a impact. The third -- your third question was regarding Elogen. The decision to focus Elogen on the core technology development was absolutely the right one, given the market and given also the fact that there is still a lot to do to further improve the products to make it really the best stack or the most efficient stack in, I would say, at least in the Western world. So we are there. We are very solid in terms of technology. We have limited the losses of Elogen to just a couple of million euros a year, which is a very reasonable result. And this is what we have for today. So we keep -- we will be running on a handful of projects, not more than that, small-sized projects to keep developing the technology. We will not take long, large exposures to large projects. We don't need that in the current market conditions, and we will progress from there. Thierry, you want to say a word on the [ margin ]. Thierry Hochoa: Thank you, Jean-Francois, for your question and to underline the impressive increase in gross margin for the digital activities. As I've already discussed last year regarding this activity to increase and to have profitable activity, we need to have a leadership position in this area, definitely. And in '25, we increased our price and mainly for Ascenz Marorka. So that's why we have this level of gross margin today. And we will continue in that way because today, thanks to Danelec, we have a leading position in specific areas, and we will continue to increase our price if we have this capacity and the possibility regarding these elements and the clients. Francois Michel: I think also Danelec brings us -- Danelec is a very structured company combining hardware and software. So it has an approach to value in this digital world, which is very grounded, very solid. The Ascenz Marorka know-how is extremely, I would say, engineering driven. And so mixing the best of both, which is a lot of technology from Ascenz Marorka and Danelec very solid P&L driven is a good way to create value, and this is what we are already seeing in the figures. Unknown Executive: We have a couple of questions from analysts online. So we will take them. And afterwards, we can take some few questions from the room again. Operator: The first question is from Matt Smith of Bank of America. Matthew Smith: My first question was around the record FID activity that we've seen for LNG projects in '25. So I agree that, that really underscores a big pickup in order intake for yourself versus the 2025 results. I guess I just wanted to ask how quickly you felt that those orders need to flow through. Is that the sort of next 12 months? Or is it the next 3 years? What is your sense on timing there? That would be the first question. And the second one, much broader. We talked to geopolitical uncertainties, a very broad term sort of impact in 2025 orders. Could you sort of zoom into some of the more specifics as it relates to LNG trade and whether some of those uncertainties we look to have a bit more clarity on today, please? Francois Michel: Thank you. Thank you. So thank you for the 2 clear questions. We are already seeing very active discussions regarding the potential orders after the projects that reached FIDs last year. So very concrete, very -- our teams are involved in many of those discussions as we speak. So we expect those orders to come for some of them quite quickly and for others, I would say, within the next 18 months or so. So that's the best estimate I can give you today. But not -- it's not 3 or 4 years, I would say, within the next 18 months, perhaps 24 months for some projects, but not longer than that. So that should give us a good level of order. Perhaps there can be some slippage, but best feeling that I have today from looking at the company. Again, I'm new, but that's my best assessment. Second to your question on geopolitical tensions. Of course, there can be -- there could be a surge in tensions between the U.S. and China. What we have seen so far, however, is that if you look at the direct impact of the trade discussions or the tough trade discussions between the U.S. and China on the LNGC market, there have been very limited -- the LNGC market has been excluded from the tariff discussions on the port duties between the U.S. and China. And even if it were revived in one way or another, it would leave enough time for the market to adjust or to reroute the ships. Perhaps -- the one factor that could create some [ deformation ] is, of course, if there were some additional intense pressure for a lot of players in the industry not to use Chinese shipyards as there was last year. I mean, if you look at the number of orders on 2 Chinese shipyards, it was very limited last year. And then fortunately, it came back up this year with 6 new orders. That could create some bottlenecks in the supply chain in Korea. But I would see the risk being there. But again, Korean yards have capacity. They have spare capacity today as we speak. They have also the capacity to allocate capacity resources from non-LNGC market to the LNGC market. So we are not seeing a bottleneck as we speak. Operator: [Operator Instructions] The next question is from Richard Dawson of Berenberg. Richard Dawson: Two from my side. Firstly, implied EBITDA margin guidance is very resilient for 2026 despite the potential reduction in the core business. So interested just to understand what's supporting that margin, and given we could see some operating leverage reduce as core revenue falls and also the digital service business ramps up, which I believe is somewhat dilutive to group margins. That's the first question. And then secondly, maybe a bit of a broader topic, but there was some news in January that India is exploring options to construct some LNG vessels domestically. Have you had any early discussions with those Indian shipyards about using GTT's technology? And how quickly do you think any increase in shipyard slots could come online? Francois Michel: Thank you for your clear questions. Let me start. India is a country I know very well. And yes, we have had early discussions with Indian shipyards. Now how fast can India enter into the LNGC market, we will see. But if it is the case and when it is the case, we will be there and well positioned. That is clear. And this is an area that we are working actively on. Second, in particular, in tandem in particular, good coordination with Korean yards, to be frank. Second, regarding your question on EBITDA, and I will let Thierry answer this one, but I can tell you the discipline on costs in GTT is strong, and I will clearly make sure it remains very strong. Thierry Hochoa: Yes. We are very confident to deliver this EBITDA margin in 2026 because we have this cost discipline definitely. And I remind you that we have a flexible cost in our P&L. And definitely, when we have less activities, we can react very quickly regarding and to adjust our P&L. So that's why we are very confident because if we have less activities in 2025 in terms of orders, our different directions and department, so we'll adjust definitely their charge to take into account these less activities. So that's why we are very confident regarding this guidance and the EBITDA margin that we need to deliver in 2026. Francois Michel: And yes, at this level of activity, we are very, very, very far from a position where it would start to be difficult for us to adjust our cost base. Operator: The next question is from Guilherme Levy of Morgan Stanley. Guilherme Levy: Francois, I wish you all the best in the new position. I have 2 questions, please. The first one, you alluded in the press release to a potential of cross-selling from your digital services business of EUR 25 million to EUR 30 million by 2030. I was wondering if you can provide us more color around the progress to 2030. And then secondly, just thinking about your currently very strong net cash position. I was wondering if you could put more of that cash to work in the near term how are you thinking about M&A? And also, just curious about dividends. But of course, you reiterated your dividend policy. And in a year with slightly lower EBITDA, that will ultimately mean that your dividends could decline next year. Would you be keen to keep dividends flat for longer using your net cash position? Francois Michel: Thank you for your questions. I think your question on cross-selling for digital raises a broader question regarding how efficient we are to generate synergies between Danelec and BPS and Ascenz Marorka. But so let me give the floor to [indiscernible] for the broader question on how well we are executing the synergies. And then perhaps, Thierry, you can comment on the actual levels of the synergies and also the question on cash generation. Unknown Executive: Thank you, Francois. On the broader side of the equation, clearly, when the announcement was made by GTT to acquire Danelec, it was mentioned that we, in combination, the Ascenz Marorka, Danelec and BPS would be on board around about 17,000 vessels. Not all those vessels carry all our solutions and all our services. The vast majority of those vessels carry either VDR or shaft power meter. And those 2 hardware propositions are actually a way in for us to try to sell other services. But we actually, in the cross-selling activities, and I think Thierry can probably comment on the actual numbers, I can comment on the activities. We go about this in a very structured way. So we have mapped all those 17,000 vessels down to IMO numbers with unique products and services. And then we basically reach out to all of them to see whether we can add more within our own digital domain. And as part of those 17,000 vessels, there are also some LNG core vessels that we should be able to sell more to. So a lot of activities around that. And clearly, also one of the biggest activities is to try to streamline our offering and not do duplicate offering into the market. We want to streamline the offering around performance, around voice optimization and not have more than one solution to our customers. Francois Michel: Thank you, [ Kasper ]. Thierry Hochoa: Yes. Regarding the figures of revenue synergies, we have an estimation around EUR 25 million, EUR 30 million for these 2 activities. And the rationale is the fact that with Danelec, we have 15,000 vessels and Ascenz Marorka, we have 2,000 vessels. And the combination of the software that we have in Ascenz Marorka, our current affiliate and to impose this solution to the vessels of Danelec can deliver these synergies around EUR 25 million, EUR 30 million. That's the combination of 2 and based on this 15,000 equipped vessels of Danelec or from Danelec. Francois Michel: Do you want to take the question on the cash. Thierry Hochoa: Can you remind me your question, sorry, regarding your cash generation? I'm sorry. Guilherme Levy: On the cash generation, I was just wondering what could we have in mind in terms of uses for your net cash position at the moment? Just thinking about dividends, your willingness to keep dividends flat even though you have reiterated your dividend policy of 80% of net income for the next year? And also if there is any sort of inorganic growth opportunity that you have identified for the near term? Thierry Hochoa: Okay. Thank you for your question. And yes, I think the first element and first topic for the cash allocation is the dividends. We have a strong dividend policy, 80% of our net consolidated results and we will continue and confirm that we will use our cash for that. The second element is organic growth. You know that we have ambition for our technology for next one. That's an example. But for the other technologies that we are working on it to protect our core business. And we will continue investing our R&D around 10% of our revenue in average, and we will continue that way. And if tomorrow, we have opportunities in M&A, especially in digital because once again, we need to have a leadership position to have the pricing power and to be more profitable with this activity, we will continue in that way as well. Operator: The next question is from Kevin Roger of Kepler Cheuvreux. Kevin Roger: First of all, welcome on board, all the best for the new position at GTT. And I'm very sorry for that, but I will have maybe not a nice one for you, and it's around Elogen. For us, it's quite difficult to make the difference between the technologies available on the market. You come from a player that has also an electrolyser of technology. So I was wondering if you can share a bit with us your take on what is different for Elogen compared to the Street in terms of value to the market, technology, et cetera. That would be the first one. And the second one is just maybe as a kind of second derivative from the one with the cash, but you have generated a lot of cash in 2025. You have already offset in a sense the acquisition of Danelec. So why don't you offset the provision on Elogen for the dividend payments, keeping the 80% of the net results, which include a EUR 15 million provision roughly on Elogen. So just maybe also to understand why you do not offset that for the shareholders on the dividend payments, please? Francois Michel: Thank you for your warm welcome. And I'm very happy to take your questions. First on Elogen. So Elogen is a specialist in high-performance PEM applications with, I would say, medium-scale electrolyzers, which are very -- at a very high level of performance for small-scale applications. The market to produce [ hydrogen ] is, in fact, very broad, it ranges from projects of a couple of hundreds of kilowatts to sometimes up to 1 gigawatt of projects. For some projects in India, it's 650 twice to 650 megawatts for a single project. Elogen is not playing in this market. Elogen targets and has the right technology to target projects up to a couple of megawatts. And those projects are coming at a reasonable pace. They will be -- they will come more and more as the overall hydrogen supply chain matures, which is why we should not accelerate too much in this field because we should not be ahead of the market. We need to be ready when the market develops gradually. And during the time that the market matures, we keep investing to have the best technology to sell those, I would say, intermediate size and small-sized projects. Elogen has very good products for this kind of applications. But of course, this market is, for the moment, relatively slow. And so we want to go at the pace that is required by the market. And we want also to keep a technological -- an edge over the technology. And I think something that GTT has done very, very well. If you look at what happens on the Elogen market is that you have some PEM players who have targeted very, very large projects and build up enormous capacities. GTT has not done so. We are focused on the right scale of the projects to keep investing in a prudent, in a cautious manner on developing its technology for the right projects. I think it's quite successful as an approach. The second is what about the cash and the dividend policy? I can tell you, GTT will maintain its dividend policy, which has been the core of the value for the company and for the shareholders since the beginning. Here, I see no value -- no reason to make an exception, but perhaps Thierry, you can comment. Thierry Hochoa: Yes. Thank you, Kevin, for your question. And this provision, EUR 45 million for Elogen. We can say that we consider this EUR 45 million for the provision to be operational costs, and that results in a cash outflow such as the construction of the gigafactory. So we consider that operational cost, and it's part of our operational results. So that's why we consider that's not necessary to retreat this element regarding the dividends. And second aspect, Kevin, we consider that a yield of nearly 5% remains satisfactory yield, I guess, Kevin. Operator: The final question from the online question this is from Jamie Franklin of Jefferies. Jamie Franklin: My questions have actually been answered. Thank you so I will hand it over. Francois Michel: Thank you. Any more questions from the room? Okay. So I would like again to thank you all for attending this presentation, both in Paris and online. We will have a lot of, let's say, opportunities to interact. Please call us any time. We're happy to take your questions and to interact and also to take your advice guidance on how we can improve further. Thank you.
Operator: Welcome to Onex Fourth Quarter and Full Year 2025 Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. And now I'd like to turn the call over to Jill Homenuk, Managing Director, Shareholder Relations and Communications at Onex. Please go ahead. Jill Homenuk: Thank you. Good morning, everyone, and thanks for joining us. We're broadcasting this call on our website. Hosting the call today are Bobby Le Blanc, Onex's Chief Executive Officer; and Chris Govan, our Chief Financial Officer. Earlier this morning, we issued our fourth quarter and full year 2025 press release, MD&A and consolidated financial statements, which are available on the Shareholders section of our website and have also been filed on SEDAR. A supplemental information package is also available on our website. As a reminder, all references to dollar amounts on this call are in U.S. unless otherwise stated. I must also point everyone to our webcast presentation for our usual disclaimer and cautionary factors relating to any forward-looking statements contained in today's presentation and remarks. With that, I'll now turn the call over to Bobby. Robert LeBlanc: Good morning, everyone. In 2025, Onex delivered strong results and made meaningful progress on our business and capital allocation objectives to set the stage for accelerated value creation and earnings growth going forward. Most notably, our recently completed acquisition of Convex and our new strategic relationship with AIG has significantly enhanced our growth prospects and earnings outlook. Across Onex, we are entering 2026 with momentum and confidence. We're able to do almost 7 years of due diligence on Convex given it was an Onex Partners V portfolio company. This is exactly the type of informational advantage that we look for as investors. Convex is expected to be Onex's largest contributor to value creation going forward. And the accelerated closing reflected a strong commitment and alignment across Convex, AIG and Onex to complete the transaction on an expedited basis. As a reminder, the transaction valued Convex at $7 billion with Onex and AIG owning approximately 63% and 35%, respectively. In addition, the Convex management team demonstrated their alignment and conviction by rolling approximately $500 million of equity and accrued incentives, which is a major vote of confidence in our partnership and go-forward strategy. This morning, we released our year-end financial information for Convex. In 2025, the team delivered another outstanding year, continuing to demonstrate their ability to deliver industry-leading growth and profitability. You'll find more information in our Q4 supplemental information package, but here are some of the highlights. For the year, Convex delivered $711 million in net income and an overall return on equity of 20%. Net income increased 25% versus the $566 million Q3 latest 12 months figure we announced at the time of the acquisition and grew 40% from the $506 million delivered in 2024. This 2025 net income figure equates to $423 million for Onex based upon our 63% ownership position and is updated for Convex's pro forma interest cost on the $600 million of debt raised as part of the transaction. The team achieved $5.9 billion of gross premium written in 2025, growing 14% year-over-year. Convex's ability to scale to this level of gross premium written in less than 7 years demonstrates the impressive business the Convex team has built and the value they provide to their customers. Despite the significant growth, Convex has still only captured about 2% of its addressable market, which highlights the significant opportunity we and management continue to see for the business. Convex also delivered consistent and strong underwriting performance in 2025 with an 89% combined ratio, the third consecutive year of combined ratios under 90%. Management expects to continue growing earnings through cycle by utilizing several structural levers, including: one, capturing further operating leverage as Convex continues to scale into its expense base; two, growth in asset leverage; three, growth in net underwriting profitability; and lastly, yield improvement on Convex's growing investment portfolio. This strong financial performance increased Convex's tangible book value to $3.8 billion at year-end, resulting in a reduction of Onex's effective acquisition multiple to 1.8x tangible book value and 10x 2025 net income. In our supplemental information package, we outlined more information, including Convex's structural competitive advantages, how management plans to continue to grow through cycle and how Convex should deliver significant value to Onex shareholders. When we announced the transaction, one of our commitments to shareholders was to ensure you receive transparency on our investment in Convex so you can value it appropriately. Next month, in follow-up to today's earnings update, we plan to publish complete financial information for Convex, similar to the tables we provided at the time of our Q3 announcement. The addition of Convex as a core Onex platform alongside private equity and credit will play a pivotal role in our ongoing transition where we continue to prioritize consistently growing net income and free cash flow to help drive overall enterprise value. Our future capital allocation initiatives will align with this strategy, focusing on direct investments with strong risk-adjusted returns, low leverage and longer hold periods in sectors where we have a right to win. While we continue to support our private equity and credit strategies to ensure continued alignment with our LPs and co-investors by participating in each fund up to a maximum of 10%, this capital-lighter model will enable a higher proportion of third-party capital in our funds. This, in turn, will contribute to ongoing growth in fee-generating AUM, fee-related earnings and carried interest. Early in 2025, both of our private equity platforms, Onex Partners and ONCAP completed successful fundraises. And throughout the year, both made progress in continuing to return capital to their limited partners and co-investors, a total of $8 billion in realizations and securing new investment opportunities with high conviction value creation plans. Onex Partners had an active and successful year and has extended the momentum into 2026. OP announced $7.7 billion in total distributions in 2025, including $4.3 billion to its co-investors. Since 2024, OP has returned $10 billion of capital across 8 realizations and completed 6 new investments totaling $2 billion. Recently, OP entered into an agreement to create a $1.5 billion multi-asset continuation vehicle with leading global secondary funds and sovereign investors. The transaction is expected to close this quarter and delivered proceeds of approximately $310 million to Onex. Importantly, we will also bring DPI for Onex Partners V to 0.8x, positioning it very favorably relative to other funds of this vintage. As you all know, there has recently been a lot of news around software and AI disruption. Looking at the percentage of our investing capital in technology-enabled businesses, we feel comfortable with our relative exposure and the embedded protections of our company's business models and competitive environments. Only 4% of Onex's total investing capital is tied directly to pure vertical software businesses. Looking at it from the broadest perspective, only 14% of Onex's total investing capital is invested in tech-enabled firms. All these businesses have proprietary data and significant competitive moats sustained by regulatory barriers and B2B workflows occurring inside their systems. Across our operating companies, we are not seeing any meaningful evidence of disruption, but rather they're continuously improving their product value proposition through the adoption of AI and other data analytic tools. Turning to ONCAP. The team returned $270 million to investors, including Onex in 2025, which was primarily driven by the partial sale of Precision Concepts. ONCAP also recently completed its leadership succession process, which resulted in 2 of its most proven leaders, Adam Shantz and Steve Marshall becoming co-heads of the platform. Michael Lay has transitioned into the role of ONCAP Executive Chair. Congratulations to each of them on this milestone, which ensures long-term leadership continuity for ONCAP. Our credit team had another outstanding year. Within structured credit, where we are recognized as a global leader, we priced 28 CLOs across the U.S. and Europe, raising more than $6 billion of new fee-generating AUM and extending another $6 billion. Chris will get into more detail on fee-related earnings, but it's worth noting that the team's ability to increase fee-generating AUM has enabled them to exceed our Investor Day run rate FRE expectations. We have a reputation for delivering strong performance within our CLOs relative to peer firms through a proactive and diligent approach to portfolio management. By heavily investing in our underwriting processes and implementing state-of-the-art risk management tools and processes, we were able to navigate the spread challenged credit landscape and avoid involvement in some of the high-profile casualties like First Brands and Saks Global that impacted the broader credit market last year. The credit team to its credit is also underweight software and AI risk credits across its portfolio. Across Onex, our success wouldn't be possible without the commitment and dedication of the people who make up the organization. I want to thank them for all they do and also for making Onex a great place to come to work every day. We have strong conviction in Onex's intrinsic value and are intensifying our efforts to have that value reflected in our stock price. In the supplemental information package, we've included how management views Onex's intrinsic value. At this stage of our capital allocation transition, we believe it is appropriate to utilize a sum of the parts framework. There are currently 3 distinct value drivers for shareholders: Convex, our asset management business and our remaining balance sheet investments. The slide on the screen is a really important one to focus on. As you can see, when utilizing -- first, the acquisition for Convex, which we believe is conservative given the strong recent performance and then applying a 15x multiple to pro forma 2026 year-end run rate fee-related earnings, and then finally, looking at the value of our remaining investing capital at the Q4 valuation, we believe intrinsic value is $174. Importantly, our current estimate does not include the value we expect to generate for shareholders over time from reorienting realized proceeds from our private equity investments into 1 or 2 direct balance sheet investments similar to Convex that ideally have a good strategic fit with Convex and our asset management business. These investments will use lower leverage and have attractive risk-adjusted return profiles to drive growth in enterprise value for Onex shareholders. We will also provide significant transparency and financial KPIs, similar to Convex on each investment to support our shareholders in measuring our performance. Having our intrinsic value properly reflected in our share price is a top priority, and we are committed to delivering the earnings growth, disciplined execution and transparency to make this happen. I want to thank our shareholders for their ongoing support over the past year and for their confidence as we move forward. The pieces are in place for a solid year, and our team is laser-focused on driving enterprise and shareholder value. I'll now turn the call over to Chris. Christopher Govan: Thanks, Bobby, and good morning, everyone. While most of my remarks will focus on our results for the quarter, I will also take some time to provide an update following the completion of the Convex acquisition. So let's start with our investing segment. Onex ended the year with investing capital per share of $124.70, a return of 3% in the quarter and 10% for the year. The 5-year CAGR on investing capital per share is now 11%. Investing gains in the quarter were driven by strong returns from Onex Partners V and Onex Partners Opportunities of 4% and 7%, respectively, and a 6% return across the ONCAP portfolio. Our credit investments were essentially flat in Q4, driven by spread compression on the CLO's underlying portfolio of loans. With spreads on the CLO's debt fixed in the short term, spread compression in the portfolio results in a reduction in the mark-to-market value of our CLO equity. However, it's important to note that our CLO investments continue to offer an attractive go-forward return and cash distribution profile. Moreover, we expect any mismatch in spreads to be eliminated by refinancing the CLO liabilities as they come out of their no-call period, which is typically 1 or 2 years. As Bobby discussed, 2025 was a strong year of private equity realizations for us with the $8 billion of realizations across the platforms, delivering over $800 million to Onex Corporation. Realizations in the fourth quarter included Onex Partners V sales of 54% of OneDigital and 25% of WestJet. In addition, Onex Corp. completed its final realization of Ryan Specialty, netting just over $200 million. In total, the Ryan Specialty investment generated aggregate proceeds of $1.2 billion for Onex Corp. over almost 8 years, a multiple of capital of 3.8x and a 49% IRR. On the new investment front, activity in the fourth quarter included the acquisition of Integrated Specialty Coverages by Onex Partners Opportunities and ONCAP V investment in CSN Collision. Onex Partners Opportunities also agreed to invest in its fourth portfolio company, a transaction that is expected to close later this quarter. On the asset management side of the business, Onex ended the quarter with nearly $44 billion of fee-generating AUM, an increase of 24% during the year. The increase primarily reflects the issuance of new CLOs, commitments made to ONCAP V and Onex Partners Opportunities and net write-ups in the PE portfolio. The Asset Management segment generated earnings of $49 million in Q4, of which $2 million was fee-related earnings from our PE and credit platforms. After factoring in the costs associated with managing Onex Corporation's capital and maintaining the public company, firm-wide FRE was a loss of $4 million for the quarter and $3 million for the year. Looking forward, credit continues its strong FRE trajectory, ending 2025 with run rate FRE of $60 million. As Bobby noted, this is ahead of our 2023 Investor Day target. And consistent with the Q3 earnings call commentary, we ended the year with firm-wide run rate FRE of $17 million, which includes the benefit of the multi-asset continuation vehicle or MACV that Bobby mentioned. At the time of the Q3 call, we expected the MACV to be signed up for the year-end, so its impact was included in the $17 million forecast. I should also note that since management fees on the MACV won't start accruing until the transaction closes later this quarter, we don't expect our quarterly FRE to reflect the $17 million annual run rate until Q2. With that in mind, we're projecting firm-wide FRE for 2026 in the low to mid-$20 million range. And more importantly, we expect to exit 2026 with firm-wide run rate FRE that is more than twice the $17 million from the start of the year. And I think it's important to note, our assumptions around new fee-generating AUM in 2026 include only about 1/3 of AIG's $2 billion of expected commitments and no additional allocations from Convex. As an aside for those of you wondering about the MACV economics, from an invested capital perspective, Onex's expected proceeds from the sale represent pricing that is about 98% of where we had those investments marked at Q4. However, the MACV has a couple of other benefits. It converts Onex's capital into fee and carry-generating AUM and it extends the life of management fees and carry on third-party capital. So when we add the present value of these benefits to the sales proceeds, we think of the value to Onex being well above the Q4 marks. Now as alluded to at the outset, I think it would be helpful for me to add some color around the final funding of the Convex transaction as well as Onex's go-forward liquidity position. At closing, Onex grew $700 million under a NAV loan facility, $300 million less than originally contemplated in a $1 billion draw. The reduced draw was possible due to incremental realizations and distributions from our private equity platforms. Following the close of the transaction, Onex retained approximately $400 million of cash and near cash and maintained access to $500 million of undrawn funds on the revolving portion of NAV loan, providing total liquidity of approximately $900 million. As a reminder, Onex has almost $5 billion of PE investments relative to $735 million of unfunded commitments, of which only $330 million are to funds in their commitment period. So we're quite comfortable that this liquidity is sufficient to fund our capital needs, and we expect significant net PE realizations over the next few years. With this being my final earnings call as CFO, I want to close by thanking all of my colleagues at Onex who have supported me over the last 11 years, including, of course, Bobby. And most importantly, thank you, Gerry, for building this wonderful company and giving me the opportunity to serve as its CFO. Finally, a warm welcome to Meg McClellan, Onex's next CFO. I look forward to supporting her during the transition. That concludes the prepared remarks. We'll now be happy to take any questions. Operator: [Operator Instructions] Our first question comes from the line of Graham Ryding from TD Securities. Graham Ryding: There's -- I appreciate the disclosure you provided on Convex. And I think you flagged some areas in the presentation, Slide 14, where you think could potentially offset what looks like it might be a softening or is a softening pricing environment. What areas do you think, in particular, are going to have the most impact here? And are you expecting Convex to continue to generate earnings growth in what might be sort of a later stage in the cycle? Robert LeBlanc: Graham, it's Bobby. Like we're viewing 2026 as a sort of minus 4-ish percent rate environment for property and casualty. But just given where Convex is in its evolution, we believe those levers that we have to pull would more than offset that type of rate pressure. Those things include continuing to gain market share. Importantly, we are nowhere near growing into our expense base. So that operating leverage is going to continue as we continue to grow the top line. And on the left side of the balance sheet, we've really never done anything to sort of optimize yield enhancement, if you will. I think there's a very good opportunity there without taking much incremental risk, by the way, including using some of Onex's products for a small portion of their balance sheet. And finally, the way it works in insurance, as you grow in scale, you also grow into your asset leverage. And our asset leverage has meaningful upside from this point forward. So I feel quite good, absent very strange catastrophic events that you're going to continue to see earnings growth in 2026 from Convex. Graham Ryding: Okay. Great. And on the FRE outlook, Chris, that you provided, I appreciate the sort of ladder that you provided to sort of get you to $35 million as a run rate. Is that -- should we interpret that as sort of Q4, you hit that $35 million by Q4 '26? And did you say that 1/3 of the $2 billion from AIG is part of that sort of exit run rate? Christopher Govan: Yes. So I'll take the second part first. That's correct. Our budget, I'll call it, has about 1/3 of that capital being allocated this year. And so it would be fully in the year-end run rate, but obviously doesn't fully impact in-year revenues and profitability. In terms of when we expect to hit that $35 million, yes, we're going to hit it at year-end. But that, again, given it's a run rate, and so you have capital being raised constantly throughout the year, you sort of -- we take the benefit of that all at year-end on an annualized basis, but some of that revenue won't be fully impacting Q4. So you really don't expect -- we don't expect to hit our run rate in terms of in-quarter earnings until the following quarter. So you'd expect something close to 1/4 of that in Q1 '27. Robert LeBlanc: And one other thing, Graham, that those numbers only include 1/3 of AIG, but they also include no dollars coming in from Convex, which I think is a very conservative assumption. Operator: And our next question comes from the line of Bart Dziarski from RBC Capital Markets. Bart Dziarski: I wanted to ask around the software tech exposure. So thanks for giving that to us, Bobby, 4% invested capital. Just to confirm, is that also 4% of AUM? And could you split that between the exposure within private equity and private credit? Robert LeBlanc: Yes. So that is our overall NAV exposure to software is 4% and things that are on our balance sheet, okay? So for that, it is mostly private equity, in particular, 2 software companies that we have, PowerSchool and Unanet. So we are very underweight on the private equity side software. On the credit side to their -- and I said credit twice when I did the script, and I'll say it again, like they are meaningfully underweight software by more than 200 basis points against their comp sets, which is great. And I'd be remiss just not to give that team a lot of credit, not only for being underweight software and AI risk type loans, but they're meaningfully underweight in direct lending. And I'm sure you're watching and hearing all of the news around direct lending, particularly in the retail front right now. And they were not in any of the major credits of Tricolor, First Brands and Saks. Like that team has done a very good job of -- we overinvested in analysts, right? And we heavily invested in state-of-the-art risk management tools. But I also give credit just to the judgment and seeing where the puck was going, so to speak, and are really proud of all of our investment teams in terms of where we sit on a relative basis and on an absolute basis with exposure to software. Christopher Govan: Yes. And Bart, just Chris, for a second. Just on your total AUM question and the 4%. I don't have an exact number, but I know that the total private equity AUM, the exposure will be less than that 4%. We're a little overweight just in terms of allocations and commitments to funds compared to the platform as a whole. Bart Dziarski: Okay. Great. That's very helpful. And then just on the FRE guide, so thanks for unpacking that for us, Chris. And wondering, could you give us kind of the latest on fundraising, OP VI. I think that fund has now been launched in Q1, if I'm not mistaken. But maybe just your latest thoughts sizing, timing of that fund. Robert LeBlanc: Yes. I wouldn't call it officially launched, but we're certainly in the process of gearing up for fundraising like real time. We're not going to get into today's size and timing, but certainly, we'd be looking to have a first close at some point in 2026. But there's really not much more we can say on that point. Ronnie is in the market still with his OSCO fund. We expect that to close sometime in the next quarter or 2. I don't see ONCAP in market in 2026, just given they're about halfway through their investment period in their current fund. And then as for the rest of our credit products, we're always in market vis-a-vis trying to sell every day because those are not traditional fund structured products or are things that our LPs and other people can invest in every day. Bart Dziarski: Okay. Great. And then just one more, if I may. You made an interesting point around Convex Capital coming into Onex. And so maybe just help us understand that like the duration of Convex's liabilities, what assets would they lend themselves to, to be managed by Onex? Like how would that matching work? Robert LeBlanc: Yes. So like -- unlike life insurance, property casualty insurance has less asset leverage, if you will, which is why you see so many people going after these annuity blocks, which we looked at, by the way, and never really could get comfortable with the pricing. And we knew this asset so much better. It's just an easier place for us to be in. But it depends on the person investing the dollars into the funds. People -- insurance companies, which are people -- are firms, obviously, that we're trying to do business with outside of even AIG and Convex. For those that are overcapitalized that can afford risk-based capital charges, they may be more evenly split between PE and credit. But the riskier the asset, the higher the capital charge for an insurance company when they invest in alternative asset management. So most focus on credit, but a lot also focus on PE and the percent of PE relative to credit or infrastructure, real estate or whatever asset class you want to talk about, depending on the risk profile and their capital base, they may be more aggressive or less aggressive. But they tend to lean more towards credit than PE. But for what we're looking at with AIG and Convex in the near term, I think it could be more balanced than you would expect from a PE and credit perspective. But we're working on that right now with AIG and Convex. But you should also think about Convex in terms of how much of their asset base would be in sort of noninvestment grade, high quality, like the current portfolio at Convex is like literally a AA+ portfolio. You shouldn't be ever thinking that more than 10% goes into those type of assets. 90% of what Convex does will always be sort of AA+ pristine type assets that are assets matched up against liabilities. Operator: This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Bobby Le Blanc for any further remarks. Robert LeBlanc: Thank you very much, and thanks for participating on the call. Chris and I are musing, we're going to try to get this to not be on a Friday going forward. I think that will be good for everybody. But before we close the call, I just once again, I want to thank you, Chris, for your partnership and all that you've done for Onex over your career here. You're not going anywhere, so I'm going to start with that. But as your role changes, I just want to make sure we thank you for all you've done to date. And as for our new CFO, Meg McClellan, we look forward to her joining us, and she'll be on the next earnings call. And I look forward to introducing again. And until then, have a great day and a great weekend. Thanks again. Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.
Operator: Good morning, ladies and gentlemen, and welcome to the Air Liquide Full Year 2025 Revenue Conference Call. [Operator Instructions] I will now hand over to the Air Liquide team. Please begin your meeting, and I will be standing by. Aude Rodriguez: Thank you, and good morning, everyone. This is Aude Rodriguez, the Head of Investor Relations. Thank you very much for attending the call today. Francois Jackow and Jerome Pelletan will present the performance of the full year 2025. For the Q&A session, they will be joined by Emilie Mouren-Renouard and Adam Peters, both Group VP overseeing, respectively, EMEA and North America. Adam is on the phone with us from the U.S. In the agenda, our next announcement is on April 28 for our first quarter revenue. Let me now hand you over to Francois. François Jackow: Thank you, Aude, and good morning to all of you. It is a real pleasure to be with you today for this earnings call. This past year, Air Liquide has reached new heights in both operational excellence and financial performance. The inherent strength of our operating model, coupled with the transformation momentum driven by our teams, has delivered robust performance across all key metrics. This is particularly significant, given the ongoing macroeconomic and geopolitical headwinds. Let's look at the specifics. Sales grew plus 2% on a comparable basis. This proves our ability to capture growth even in a complex environment. Our focus on operating discipline is delivering clear results. It reflects more and more the visible contribution of the transformation momentum throughout the organization. We achieved a record Gas & Services OI margin improvement of 130 basis points, excluding energy pass-through. At the group level, the 100 basis point improvement keeps us firmly on track to meet our 2026 commitment of plus 460 basis points in 5 years. This operational leverage translated directly to the bottom line with recurring net profit growing by plus 10%, excluding currency impact. Our recurring ROCE continues to rise above 11%. Sustaining this momentum while simultaneously scaling up our investments is a testament to our disciplined capital allocation and, of course, improve performance. Our ability to generate cash has again improved. Cash flow is growing at plus 8%, excluding currency impact, providing us with significant strategic flexibility. Our performance is equally strong on extra financial fronts. We achieved record safety levels. We also further decoupled growth from carbon with CO2 emissions now 13% below our 2020 baseline, and the carbon intensity had been reduced by 46% in 10 years. Finally, our investment backlog remained at a record high of nearly EUR 5 billion in spite of the exit of the ExxonMobil Baytown project. This is more than 15% above last year. These are committed, signed projects already under construction effectively locking in our future growth. Our investment portfolio of 12 months opportunities is also at a record high level of EUR 4.6 billion. As these results demonstrate, Air Liquide is steadfast not only in delivering profitable growth regardless of the macroeconomic conditions, but also preparing for the next phase of growth. This is a structural strength of the group. 2025 marks the end of the 4-year strategic ADVANCE plan. You see on Slide 4 that we have successfully delivered on all 3 objectives of our ADVANCE strategic plan: Growth, first, with over 6% average annual sales growth on a comparable basis versus 2021, we have exceeded our midterm ambitions. Returns, our recurring ROCE has remained consistently above 10% since 2022, hitting this target a full year ahead of schedule. Decarbonization. Finally, with 3 consecutive years of absolute CO2 emissions reduction, our emissions are now 13% below 2020 level. We have officially reached the inflection point we projected for 2025. In summary, the ADVANCE plan has met its objective across all horizons. In the current supply environment, this track record demonstrates our ability to deliver consistent results. It is the foundation upon which we build our next chapter with confidence. On Slide 5, you see one of the reasons to be confident. The acceleration in margin improvement you see here is a direct result of our evolving culture of operational excellence. Looking at the graph, the progression is clear. We shifted gears during 2017, 2021 period, stepping up our performance to plus 240 basis points versus 50 basis points in the previous 5 years. Under the ADVANCE plan, we have accelerated once again. With a national 100 basis points delivered in 2025, we are now fully on track to reach our record-high target of plus 460 basis points by the end of 2026. This momentum proves our ability to structurally enhance our profitability year after year. And there is more to come. And the reason why there is more to come is that our margin expansion is underpinned by the structural transformation program we launched in mid-2024. In 2025, we shift from design to full-scale execution, leveraging data and AI to drive structural efficiency. Here are some examples across each of our 4 pillars. First, streamlining the organization. We have simplified our structure, reducing by up to 3 management layers. In the past 18 months, we have reduced our global headcount by 5%. This is without taking into account the new restructuring projects announced in 17 European countries this past December. This will secure midterm synergies as they are fully implemented. Second, industrial excellence. Our new performance management system is now 100% deployed, creating a unified global standard for operation benchmarking. It is designed to continuously boost our performance across more than 400 industrial sites and covering the full value chain. Another example is our end-to-end optimization for liquid gases, which is already rolled out at 45%, significantly reducing our industrial and supply chain costs. Third, Global Business Services, GBS. We have eliminated subcritical smaller GBS and expanded our reach with a fourth state-of-the-art GBS center located in India. GBS headcount has grown by plus 35% as we migrate tax from local operations to specialized hubs. We have now secured 25% of our targeted savings from this initiative. As you see, there is more to come. Finally, commercial initiatives to transform customer care to AI-driven automation. Five major projects are now in the rollout phase, including the AI powered streamline processing of over 17,000 daily customer e-mails and orders in Europe and in the U.S. This transformation program is still in its early stages but the momentum is clear. Leveraging our customer-centric and employee engagement culture, we are building a leaner more disciplined, more standardized, more data-driven and more agile Air Liquide. On Slide 7, as a matter of fact, I want to highlight the strength of our human and social commitments, which are foundations of our long-term success. Safety excellence. We achieved the lowest lost time accident frequency rate in our history. It represents a 60% reduction over just 2 years. Why? I am personally proud of this progress by our teams. Safety remains an absolute priority. And our ambition remains unchanged, 0 accident. Social impact. Under the ADVANCE plan, we have reached several milestones in our social commitment. We have significantly increased the representation of women in management, leading the industry by example. I am also pleased to announce the full deployment of our common social care coverage across every country where we operate. Finally, community engagement. We have successfully scaled our global program to support local communities, ensuring our growth, create a positive impact wherever we are present. These achievements are the tangible evidence of Air Liquide's commitment to combining financial performance with a positive impact. All-weather growth is a unique strength of Air Liquide. Moving to Slide 8. We have clear evidence of our 4 growth engines in action delivering both immediate and long-term value. First, asset optimization. We continue to unlock low CapEx growth by leveraging our existing pipeline networks and infrastructure. This allows us to secure new sales with minimal investment. Then core business leadership. Our technological edge remains a major differentiator. As such, in 2025, we secured several long-term contracts in electronics across Asia and the U.S., alongside a landmark project in Europe. Then, energy and industry transition. The industry transformation, which implies carbon reduction, but also electrification and automation is ongoing. It is a long-term trend shaping the manufacturing industry for years to come. Here, we are solidifying our leading position in many ways being at the forefront of our customers' needs. Key milestone this year includes the signing of second 200 megawatt electrolyzer in Europe and the electrification of 2 air separation units in China. Then, of course, strategic acquisitions. Beyond the targeted 13 bolt-ons to increase local density, we reached a major milestone in 2025 with the acquisition of DIG Airgas in South Korea. This is highly strategic, providing us with a leading position in the world's first largest industrial gas market, a market expected to double over the next decade. In summary, while the first 3 engines fueled our growth by EUR 5 billion of investment backlog, the addition of the DIG acquisition and our bolt-on strategy brings our total capital deployment to nearly EUR 8 billion. Every euro of this is dedicated to securing future growth with return on investment remaining our absolute priority. Turning to Slide 9. Let's look at the exceptional positive momentum in our Electronics business. This is a key structural growth driver where Air Liquide is uniquely positioned. Over the past 24 months, we have converted demand into a record of EUR 1 billion in CapEx through new projects signed worldwide, accretive on margin. But the pipeline ahead is even more significant. We are currently tracking EUR 2 billion in active opportunities targeted for signature in the upcoming year. To give you a sense of scale, Electronics now accounts for over 40% of our 12-month investment opportunities, with a heavy concentration in the high-growth markets of Asia and the U.S. These recent wins powered by our leading-edge technologies do more than just grow the business. They firmly reinforce our position as the global #1 in electronics. On Slide 10, we are committed to converting this increased performance and growth pipeline into value for our shareholders. These are not just words. Supported by our Board of Directors, we will propose to increase the dividend to EUR 3.70 per share at the next general assembly. This represents a significant increase of 12% compared to last year. It continues our long-term track record of almost 8% average annual growth in dividend per share over the last 20 years with a clear acceleration over the past 3 years, reaching almost a 40% increase. In addition, the Board has decided to propose to proceed with a 1-for-10 free share attribution in June 2026, subject to the authorization of course, of the next general assembly. These new shares will be eligible for dividends starting in 2027 further compounding shareholders' return. This balanced approach has delivered an average total shareholder return of 11% per year over the last 2 decades. Our original model and our focus on performance continue to turn operational success into sustainable return for shareholders. Turning to Slide 11. Let's review our outlook. On the left, you will find our formal guidance for 2026, which remained centered on our commitment to performance. For 2026, we reiterate our objective of delivering an additional plus 100 basis points of margin improvement. In addition, to provide you with greater visibility into our long-term trajectory, we have decided to further raise and extend our margin ambition. This extension through 2027 implies an additional 100 basis points of improvement for the 2027 fiscal year. With this, we are now increasing our total target to 560 basis points over a 6-year period. By expanding our ambition today, we are demonstrating our strong confidence in our ability to drive further performance. This is a clear commitment to delivering sustainable, long-term profitable growth and value for our stakeholders. We look forward to hosting a Capital Markets Day in the second half of this year, where we will outline our strategic road map and long-term financial ambitions. Thank you very much for your attention. I now ask Jerome to drive you through the details of our financial performance. Jerome? Jérôme Pelletan: Thank you, Francois, and good morning, everyone. I will now review our numbers in more detail. So coming back to the full year now on Page 13, group sales delivered sustained resilient growth in a still uncertain environment. Energy pass-through turned into a slight tailwind, and there was no significant scope effect in 2025. DIG being closed in January 2026. So overall Gas & Services sales achieved a plus 2% comparable increase as did our newly consolidated Engineering and Technologies activity. Thus, overall group sales were also up plus 2% on a comp basis for the year with a slight uptick for Q4 at plus 2.5%. So zooming into Q4 2025 on Slide 14, all business lines as well as all geographies delivered sales growth. Let us now review the Q4 activity for each of main geographies. I am now on Page 15. So sales in the Americas remained strong, up plus 5% on a comp basis. Large industry were strong and benefited from additional hydrogen volumes in the U.S. as well as solid Airgas and Cogen. In Merchant, sales were driven by an improved pricing effect of plus 2%, supported by active pricing management at Airgas. Volumes were resilient with regards to gases, while hardgoods remained soft. Growth in Healthcare was very strong driven by sustained high pricing in the U.S., including U.S. proximity care and our intel core -- Intelli-OX service cylinder development. Growth was further supported by the increase of home health care patients in LatAm, together with solid pricing. Finally, in Electronics, the very strong growth in carrier gases for new project start-ups and ramp-up was offset by high 2024 base in equipment and installation. Overall sales in EMEA were up plus 1% with continued very solid growth in Healthcare. Large Industry was flat. Solid airgases in Italy and South Africa and a favorable mirror effect on the customer turnaround in Q4 '24 in Saudi Arabia offset low hydrogen and Cogen sales, especially in Benelux. In Merchant underlying sales were resilient, excluding transfer activity from GM&T. Pricing was positive at plus 0.8% despite the impact of the indexation on decreasing energy prices in bulk contracts and low pricing in Helium. Finally, Healthcare growth was robust at plus 4.3%. Sales have been supported by strong home health care activity, notably in diabetes, community care in Germany and sleep apnea. Mix Asia posted positive growth in Q4. In Large Industry, low demand offset positive contribution from start-up and ramp-up in China and Korea. Sales in Merchant were flat. China posted growth despite helium headwinds. Sales in the Rest of Asia were somewhat mixed, but mostly low. Electronic sales improved by plus 5%. Growth in carrier airgas came mainly from start-up and ramp-up, in particular, in Taiwan and strong growth in materials were only partly offset by the equipment and installation comparison to a very high level in 2024. I will now comment on our Q4 activity by business line on Page 16. In Merchant, we saw increased pricing at plus 3.2% in Q4. So overall volume were resilient in a subdued industrial environment. Large Industry benefited from start-up contribution, mainly in Americas and Asia and from a solid base activity in the Americas. EMEA and Asia saw overall low demand. Page 17 now. There was a strong underlying momentum in Electronics at plus 6%, excluding E&I. Sales benefiting from a strong contribution from carrier gas, mainly start-up and ramp-up, in particular, in Taiwan and in the U.S. as well as solid materials performance in Korea and Taiwan. This growth was tempered as E&I sales normalized following a record year in 2024. Finally, in Healthcare, we pursue strong trends despite a high comparable in Q4 '24. Home Healthcare was again robust, supported by diabetes, sleep apnea and community care. In medical gases, sales growth was strong with steady pricing addressing inflation, especially in the Americas. On Page 18 now, as Francois mentioned, the success of our structural transformation program has been again demonstrated by our improved operating margin. Results were even more impressive regarding Gas & Services OIR margin, which improved by plus 130 bps. Getting into the detail, purchase were down minus 3.6%, though stable, excluding the currency impact and the reclassification effect and the increase in energy price, particularly natural gas was offset by the decrease in purchase of material and equipment due to a decline in sales and goods. Personnel expense were down minus 1.5% and showed a limited increase of plus 1.5%, excluding the currency impact in an inflationary environment that benefited from the reduction in headcount of around minus 5% since the beginning of 2024, supported by the rationalization plans across all geographies. Depreciation is aligned with the level of start-up and ramp-up. This has resulted in group operating margin improvement at plus 100 bps, excluding the impact of the energy pass-through. On Page 19, now this margin improvement was supported by a structured execution plan based on the 3 pillars. First, Industrial Merchant pricing remains solid with adapting to inflationary pressure and amid pressure in the Americas and to lower energy cost in Europe. We have and we will continue to focus on price management above the cost curve. We have also executed a record level of efficiencies, delivering EUR 631 million in 2025, which is significantly above our yearly advanced objective of EUR 400 million. Thirdly, we're active in portfolio management. We closed indeed 13 acquisitions in 2025 and executed 3 divestitures with a continued focus on strategic, profitable and margin accretive opportunities. Let us now review quickly the bottom of the P&L. I'm now on Page 20. Operating income ratio increased plus 3.5% as published. Excluding the currency impact, it goes by plus 7.7%, which is significantly higher than comparable sales growth, highlighting the strong leverage effect. Nonrecurring operating income and expense account for EUR 300 million, including restructuring costs for approximately EUR 200 million with the main parts in Europe. Net financial costs were down slightly with a decrease in average debt outstanding and in factoring. The cost of debt now stands at 3.3%, slightly down from 3.4% in 2024. The income tax rate was at 25.2% and compared with 24% in 2024, impacted by an exceptional stock tax surcharge in France in 2025. Net profit growth was up 6.4% and recurring net profit, excluding FX, increased significantly by around plus 10%. I am now on Page 21. We generated a record EUR 6.8 billion in cash in 2025. As you can see, our strong cash flow finance increased CapEx at EUR 4.1 billion gross value or EUR 3.7 billion net of asset divestiture as well as EUR 1.9 billion in dividends, which represents another record level for us. We are also able to reduce net debt, while net debt-to-equity ratio stood at 31.2%, highlighting the strength of the cash flow. Keep in mind now that this ratio will increase by more than 10 percentage points with the DIG acquisition, which closed early 2026. On Page 22, you can see that recurring ROCE continues to ramp up well above our 10% advanced objective and this despite continued large investments to fuel our long-term growth. On Page 23, although the DIG acquisition closed in January '26, in order to give you a complete picture with regards to the full project development, I will present the 12 months portfolio of opportunities and backlog, including the opportunities and site projects acquired with DIG Airgas. So industry and financial decision for the year remain at a high level of EUR 4.2 billion. Strategic financial decision of DIG Airgas will appear with our Q1 2026 decisions. Our investment backlog now remains very strong at EUR 4.9 billion, which is now the fourth year in a row above EUR 4 billion. The backlog is very much and well diversified, including more than 70 projects across all geographies with approximately 40% of the backlog now being dedicated to electronics projects. Finally, our 12-month portfolio opportunities at a record high, EUR 4.6 billion. The removal of the Exxon Baytown project is now compensated by the entry of new projects in Electronics and Large Industry as well as opportunities from DIG Airgas. The current 12 months portfolio now consists of more than 40% project in Electronics. And bear in mind that the portfolio beyond 12 months remains dynamic and totals above EUR 10 billion. On Page 24, as mentioned by Francois for 2026, we're strongly aligned with our ambition to improve operating margin by plus 100 bps and confident in our ability to deliver recurring net profit growth at constant exchange rates. We now commit to a further expansion for OIR margin improvement in 2027 to reach plus 560 bps of cumulative improvement over 6 years 2022-2027. Thank you for your attention. Back to you, Francois. François Jackow: Thank you very much, Jerome. I believe we can start the Q&A. Operator: [Operator Instructions] The question comes from the line of Alejandro Vigil from Santander. Alejandro Vigil: Congratulations for the '25 results. The first question is about the organic growth. In the fourth quarter, we saw some acceleration of 2.5% from the previous quarter. How you are starting this beginning of the year? If you can give us some indication of the level of activity in the beginning of the first quarter? And the second question is about the remuneration, there's a whole distribution. You increased double digit the dividends for '26. My question is about your considerations or your thoughts about the buybacks. At the end of the day, the level of leverage is still low. Looking at the opportunities, probably you have room to fund these acquisitions through the balance sheet. If you can elaborate on why to increase double-digit dividends instead of considering buybacks instead? François Jackow: Thank you very much for all the questions. I will take the first one and Jerome will comment on the second point. So indeed, I mean, we have seen a pickup in the activity at the end of the year. This being said, I think in the current environment, we believe that we will be probably, and that's the main assumption, in the same kind of trend for 2026. So this time probably a soft growth. But if we just look back a little bit, we tend to see a more positive sign that could definitely, I mean, give us some uptick during the year, maybe not in Q1, but as we go during the year. What are those? I mean, clearly, we mentioned electronics. And you remember that there has been a very strong comparison effect where the activity of E&I was extremely strong in 2024. So you have not seen the underlying trend. But clearly, we see the volume and the carrier gas contribution clearly picking up. We start also to see, I mean, some signals in some subsegments in the U.S. industrial activity. So again, we have to be cautious, but those could be positive signals coming later on during the year. Even in Europe, and maybe Emilie will have the opportunity to talk more about that later on, we clearly, I mean, see that some sectors like chemicals are still in the middle of difficult time with some restructuring. But in the past few weeks, we have heard positive news regarding the steel industry, especially with new announcements for new plants, but also the start of some of the production lines. So I think all those could definitely contribute. Again, our best assumption for our financial projection is that it will be basically the same kind of trend for 2026 as what we have seen for 2025. And we do consider that anything better than that would be an upside for us. And regardless of the environment, of course, we are absolutely committed to deliver the margin improvement. And finally, on the outlook and the momentum, I think we have to keep in mind that we have a super high level of business development activity. We mentioned electronics, we mentioned also a large industry. We start to see, I mean, project popping up in the U.S., which is probably the effect of the reshoring. So all this should be good opportunities and potentially also further M&As of different sizes. So this is the outlook for 2026. Again, confident in our ability to continue to deliver the improved performance, I would say, regardless of the environment. Jerome, do you want to talk about the increased dividend and our thinking behind that? Jérôme Pelletan: Yes. Thank you very much for your question. So you're right to point that plus 12% increase of dividend is a very good and a strong sign of confidence, and that's really the state of mind that we are today. We have also to bear in mind that when you come back to the different I would say, parameters, we can see that we have delivered nearly EUR 7 billion of cash flow. So this is strong. And the level of gearing today is quite low at slightly above 31%. So we have the means to distribute, and that's why we have decided, which is very much the result of our, I would say, improvement of our performance trend and the overall performance over the last year. So that's why we have decided. And you know this is also a sign that Individual shareholders like as well. But to come back on your second question, our policy has always been very clear. Given this very strong cash flow improvement in the last years, our order of, I would say, allocation is first, and we want to continue to finance the CapEx and that's important because that's where when we earn projects, we want also to allocate on that. The second point is M&A and significant M&A and that's why we have also the means to accelerate and to acquire DIG at the beginning of the year. And the last thing is on distribution on dividends, which again is a very strong one. So as it related to buyback, no, our current status is very clear. There is no taboo, okay? And this is something that we are looking. We basically continue to monitor the performance on the cash. And we have no specific announcement to make today, but we are looking at all options. Operator: Now we're going to take our next question. And it comes line of John Campbell from Bank of America. John Campbell: I will ask 2, if possible. So coming back to one of the points you made. You talked about potential positive signals in the U.S. in terms of activity. Can you perhaps elaborate on what those potential signals are? And maybe to give you an example, your U.S. peer recently discussed they see packaged gas volumes as a leading indicator of activity. Do you agree with that assessment? And perhaps how are those activity levels trending? That's my first question. The second question, I noticed there was a big meeting in Antwerp, I think it was last week, to discuss economic competitiveness in the EU, and they have been caused to review the CO2 emissions levy that is placed on industry. Maybe perhaps in light of this, how do you see the level of engagement with potential customers, particularly in Europe when around the energy transition? And perhaps you mentioned that electronics is a large opportunity. Would you say that sort of electronics potential orders can match the scale of potential previous hopes for energy transition projects? François Jackow: Thank you very much, John. I will ask Adam who is in the U.S. to comment on the merchant, but also the large industry and the electronics business probably. And Emilie will talk about the CO2 situation in Europe and how we see this. Adam? Adam Peters: Yes, absolutely. Thanks, Francois. Thank you, John. So if I look at activity levels in the U.S. and kind of building off of some of Francois's previous points about what we see, we definitely see some positive signals. So if I go kind of sector by sector and take the merchant business, we continue to see resilient gas volumes and we see in the merchant business where it's buoyed by the pricing effect that we have. We also see on the hard goods side, some potential tailwinds coming in 2026 around sectors like defense, for example, like space and the like. So we see activity coming in various areas. We're still a bit cautious in that regard because, obviously, this depends heavily on certainty around tariffs and certainty around interest rates and the like. But overall, when we look forward, we see positive signals. I would say on the really positive side, what we see is, a strong shift towards more traditional investment opportunities in business development. So when we look at business development, we can probably talk a little bit about this later, we see a shift from energy transition more towards the examples that Francois mentioned earlier around core investments and existing assets, where we see a lot of interest from clients and a continued very strong business development effort on the electronics side and in large industries going forward. So I would say we have definitely not seen a slowdown in the activity for business development. The customer engagement remains very high. And I'm quite optimistic about 2026. And I think this feeds into the backlog comments that Francois and Jerome talked about earlier and also the portfolio that we see. François Jackow: Thank you very much, Adam. I cannot resist, I mean, to build up on what you mentioned about the space because there has been a lot of discussion recently about the opportunities in the space area. And indeed, we are very excited and positive on this because we are today in the space business, and we are probably the only player with covering the full chain from the oxygen-hydrogen supply, but also, I mean, krypton, xenon for satellite and all the technology from the launcher to the satellite. So as you may know, I mean, we have a strong position in Europe and also a presence in the U.S. In the U.S. alone, we have more than 180 customers in the space ecosystem. So we see the momentum, clearly, and we benefit from this. And there are indeed a lot of opportunities. What we have to keep in mind, and I don't want to pull down, I mean, the excitement about this new opportunity is that some of the bigger opportunity may end up actually being a sale of equipment. So it's not, at this stage, traditional over-the-fence business. So there again, I mean, we are very well positioned. But let's not -- I mean, it's not necessarily comparable with the rest of the large industry or the electronics business. It may be a onetime sale of equipment for some of those projects. But again, very well positioned and ready to take the opportunities as we have done in the past years and months. I turn over to another area, Emilie. Do you want to speak a little bit about Q2 and Europe and what we hear and see from customers? Emilie Mouren-Renouard: Absolutely. Thank you, Francois, and good morning, everyone. So yes, we followed this Antwerp meeting last week carefully, and we were actually present in Antwerp. The chemical industry really did some strong speeches about competitiveness of the European industry and also on ETS, the CO2 tax Europe. So that created a bit of confusion. Just to remind everyone, a revision of the ETS was anyway due and flat for the second half of this year. So this is not new. But of course, the ETS price is impacting some of our customers positively or negatively. For us also, I want to remind everyone, our own emissions are subject to ETFs that are covered by our long-term contracts and the cost of the ETF is passed through to our customers the same way energy is. So definitely, chemical industry is suffering right now from structural competitiveness gap, like was said last week in Antwerp. But there are also positive signs in Europe. Francois mentioned one on steel industry. So on the steel industry, we see positive signs of picking up volumes picking up in January, in particular, more than we had seen in the overall 2025 year. This is helped by quotas and limiting imports to Europe and of course, the CBAM as well. We also see some positive signs in Germany, so not necessarily on the chemical industry, but in Germany overall with a bit more volumes and also a bit better business mood. Remember, we are very committed to Germany. We've announced investment of a large basin in electronics last year in Dresden. So this is positive. And overall, we continue to have a strong backlog of projects in Europe as well. So we'll continue to work with the European Union, with governments to improve the competitiveness of the industry in Europe, but there are also positive signs that I just mentioned. François Jackow: Thank you very much, Emilie. I think, John, you had kind of also a side question, which was the share of electronics versus energy transition. I think with what was mentioned by Emilie and also what we see in other regions like China, the energy transition is still alive. So there is still a pipeline of projects, a very robust project. Again, it's a long-term trend. So it's not by any means disappearing, and we are very well positioned there again. What we see, and that was your point, clearly, is the pickup in the electronics projects driven by the AI and the rate for capacity in chips, but also in memory. And this is clearly accelerating in the past few weeks even and the need for sovereignty. That's why, I mean, we see most of the major region of the world, a very, very strong momentum. As of today, there is 40% of our backlog, which is the electronics projects. So you see there is a shift. They are gaining importance. We do expect this to continue to grow. This being said, again, there are some energy transition projects that remain. So I think the takeaway probably from this is to have in mind that in the current time, having a very diversified portfolio and being able in terms of footprint and segment to be agile and to capture the opportunities wherever they are is really a differentiating factor and as of now, leveraging our #1 position in electronics is clearly the strength. Operator: And the question comes line of Tony Jones from Rothschild & Co. There is no answer from Tony Jones' line, and we're going to the next question. And the question comes from the line of Alex Sloane from Barclays. Alexander Sloane: Two for me, please. The first one, just on Baytown. I mean you've been clear, that's contractually protected, no financial impact. But stepping back, do you see any broader risk of customer-led causes or deferrals across decarbonization projects in your backlog or opportunity pipeline? And what are you seeing in terms of customer decision cycles? And is your '26, '27 margin trajectory, assuming any change in conversion rates? That would be the first one. And secondly, on electronics. Clearly, up to 40% now of the backlog and opportunity pipeline driving outsized growth. Can you comment on whether we should expect any material mix effect on margins from the outsized growth of this segment over the next 2 years? Are you seeing any change in the competitive dynamics in this segment as clearly it's driving most of the opportunity at the moment? François Jackow: Alex, thank you very much. So briefly on the first one, no, we don't see projects which are at risk today in the portfolio, in the backlog. Again, I mean, all the projects have secure contracts, secure customer, secure fundings when they are registered in the backlog. You remember, we have been extremely prudent in the way we were accounting for the Exxon project. So there may be projects, which appear or disappear in the portfolio, but not in the backlog, so no incidents on our financial performance for 2026 and 2027. On the second one, on the electronics, what we see are mostly carrier gas projects, which today represent 50% of the electronics business activities. So you see gradually, it's moving. And those projects in terms of margin should be accretive because in some of those projects, the energy is included. But in others, the energy is not included. So the margin ratio is higher. So when they will come on line and keep in mind that those project takes 2, 3 years to build, yes, they will have a positive margin contribution. At the end of the day, what is very important for us is the return on the capital employed, and that's how we are making a decision. Yes, it's a competitive area. Many people are fighting for those projects. The good news is that given the volume of the projects, we can be selective and we are selective and we choose the battle basically where we have a competitive advantage and we can really create value for our customers. And when you look at 2025, we get more than our share of the new projects, and we are committed to continue in that way. Operator: And the question comes from line of Martin Roediger from Kepler Cheuvreaux. Martin Roediger: Thanks for taking my 2 questions, please. First, on energy supply. In case several energy suppliers within the European Union have a problem in providing you with energy, to which extent are you protected against that shortfall in energy supply? How is the compensation scheme? Is there any difference in the compensation scheme between the energy resource electricity and the energy resource natural gas? And the second question also related to energy, on energy costs. I recall that a few years ago, you had EUR 3.5 billion energy costs on a global basis. Is that still the case? Is the split in energy still 60% electricity and 40% natural gas? Or did that change? And is that also a good proxy for the individual regions? François Jackow: Martin, thank you very much for your question. I will ask Emilie who is a specialty of energy in Europe to speak about it. And probably, Jerome, you take the global view on the energy costs. Emilie? Emilie Mouren-Renouard: Absolutely, thank you. So briefly, of course, energy is a very large part of our cost stack, especially in large industry. So it is important for us. We monitor that quickly on a regular basis, and we are protected by our contract with the pass-through clauses to our customers. And in case to answer more precisely to your question of a problem of energy supply, then it falls under the force majeure type of clauses we have in all our contracts with our customers. François Jackow: Thank you very much. Jerome? Jérôme Pelletan: Thank you very much, Martin, for your question. So when you refer to EUR 3.6 billion, it was very much at the time where the impact after the beginning of the war in Ukraine started to have significant high prices on the energy cost and mainly in Europe and mainly on natural gas. So today, I would say that it is coming still above the level of pre-war. But the mix is related to the share between natural gas for hydrogen business, HyCO business, and electricity for other should be relatively close. And those, as said by Emilie, are fully secured and fully pass-through to the customer. So no big change in terms of the weight of those energy or consumed and presented in the cost stack. Operator: And our next question comes from line of Georgina Fraser from Goldman Sachs. Georgina Iwamoto: It's one question, but I think it might be 2 or 3 combined. You have this EUR 200 million in onetime costs related to European restructuring measures for 2026. Could you please put some context around this number? What percent of European sales will be impacted? Are there any networking effect implications? And are these measures in line with existing customer plans? Or is Air Liquide moving independently? François Jackow: Thank you very much, Georgina. So Emilie, do you want to talk a little bit about how you want to transform and to adapt our footprint in Europe and what you have launched? Emilie Mouren-Renouard: Absolutely. Thank you. So in Europe, we've well embarked on the structural transformation launched at the group level since 2024, so we are adapting our cost structure to the level of activity into the volumes, and we are restructuring. So maybe I'll give you some elements. First, on the organization and processes. So streamlining our organization. That is what we are doing, removing layers of management, simplification of our organization. And for instance, we moved from 4 clusters to 2 in Europe. If I include med gas that we integrated and merged into the merchant activity to create synergies, so we now have all the med gas activities under the same operational and management team as merchants in Europe. So this restructuring effort is taking place in all parts of Europe. The idea, like I said, is really to adapt the cost structure to the activities, moving some tasks to the GBS as well. This is an important part of our transformation and also really restructuring to be prepared for the long term to be more profitable over the long term. So this is structural. We're also streamlining our processes and tools, having the same way of doing things across Europe, one single state-of-the-art ERP across Europe. And finally, also using more and more AI to automate, to optimize our operations in all domains, customer care, call centers, in sales, in safety, in industrial part of the activity. François Jackow: Thank you very much. So that's for Europe, which is the bulk of the EUR 200 million. I mean I think this is 70% of that. There are other things which are similar in other parts of the world. What is absolutely key is that in this world, which is transforming, we want to anticipate. So part of it is to adapt the footprint, and that's what Emilie has mentioned. And we want to do that with courage, with determination in a respectful manner for our employees and for our customers because those are the values of Air Liquide, but we have to do it, and we have started and already done that in several cases, and we will continue to do that. At the same time, and that's the positive news, we continue to invest in leading segment and to support and to drive this transformation, as we mentioned before. And as a matter of fact, in the past 3 years, we have invested more than EUR 3 billion in Europe, showing that we are positioning ourselves to be able to be a key partner and key supplier for the transformed Europe industry that is being built. So thank you very much, Georgina, and good to hear you. Next question, please. Operator: And the question comes from line of Chetan Udeshi from JPMorgan. Chetan Udeshi: The first question, I was just -- sorry my first question is on your investment opportunities and backlog. I think you have included the part from DIG now in those numbers. And I was just trying to see the underlying shift if I remove DIG. And it seems for the first time, maybe in many quarters, sequentially, the backlog and investment opportunities are actually down versus Q3. And I'm just curious, is this all because of the removal of the Exxon project? Or do you actually see that the incremental opportunities are probably slowing? And just second associated question. You got this compensation from Exxon project in 2025 because it's been terminated. Did this have a positive impact on your second half margins? Because I see there's a big jump in the other income in the second half of '25, and I'm assuming almost all of that is associated with this project. If that's the case, if you can quantify? And last question, simple. I don't see any guidance on start-up revenue this time. So maybe if you can just help us what do you think we should have in mind? François Jackow: Thank you very much, Chetan. Thank you for your questions. I think Jerome will be pleased to answer the 3 questions. I may complement if needed, but go ahead, Jerome. The first one on the DIG and the contribution of DIG and the backlog. Jérôme Pelletan: So it's very simple. When you took the backlog of EUR 4.9 billion today, you have about EUR 200 million of backlog coming from DIG, okay? So EUR 4.7 billion plus EUR 0.2 billion. And you recall, Chetan, it's very much aligned with what we said last time during the call when we made the announcement of DIG, that there was some CapEx underlying. So that's very much aligned which is showing that basically a very good trend on this opportunity. On the portfolio of opportunities, you have a total of EUR 4.6 billion, a record. And that does include about EUR 800 million of DIG. So I hope it's quite clear. François Jackow: And just Chetan, on this one, on the backlog from one quarter to another one, in my point of view, there is no worries. Basically, this is a normal life of a pipeline of the project. You have the projects which are exiting because the projects are starting up. So it's normal that depending on the timing, they go up and down. So the general trend is a very solid backlog, which is continuing to increase. If you look at a year-to-year basis, it's plus 15%, as I mentioned. So from that point of view, absolutely no worries. Exxon contribution for the year? Jérôme Pelletan: So I hear what you said. So basically, it's neutral on margin because the compensation we had from the customer as basically covering our consolidation costs and so on. So that's basically neutral on margin for 2025. That's what you have to bear in mind. You have also to bear in mind that we have no financial exposure on that, that's basically it, okay? And your last question, start-up guidance for 2026. So we have not disclosed this contribution for 2026 for a few reasons, Chetan. First, Francois explained that many times, there is shift today in contract structure. The fact that we have some energy transition projects, which have increased, which are going more and more into a tolling style contract, basically is polluting the fact on this contribution. So that's the very first point. The second point is, as you know, there is geographical energy volatility, and disparity in energy pricing. So basically, as we are showing this number with energy contribution, it's create artificial difference in sales contribution from the same level of CapEx, which gives difficulty to estimate future sales contribution, the second reason. François Jackow: And the last reason, by the way, if I may, Chetan, none of our competitors currently disclose its contribution from start-up and ramp-up. So all these different elements make us the conclusion that it was not super relevant at this stage. We are looking potentially as other indicator review. We see maybe on EBIT level and so on, but it's a bit early to say. But the main reason, clearly, Chetan is that it's becoming a proxy, which is less relevant to predict the growth overall for the reason mentioned by Jerome, but you mentioned energy transition. But as a matter of fact, it will be the same with the electronics project because some of the current sales, it has energy included, others do not. So again, the traditional way of looking and predicting the sales with the amount of investment does not work anymore. We'll try to find a way to help you to do your forecast, but that's why today we are dropping this proxy. All right. Thank you very much. I think we still have time for 1 or 2 questions. We have many more questions. So go ahead. Operator: Now we're going to take our next question. And it comes from Jean-Luc Romain CIC CIB. Jean-Luc Romain: It relates to the cement industry. When we look at some of your clients or partners in the industry, there are several projects to decarbonize the cement plants And your CryoCap technology is all over the place on their website. Could you give us an idea of what's moving towards a decision? What's still a long way ahead? François Jackow: Thank you very much, Jean-Luc. Emilie, do you want to speak about this? Emilie Mouren-Renouard: Jean-Luc, on the cement industry, this is one of our key growth opportunities for the future, like you said, around our CryoCap technology, proprietary, and we are really the leader in the carbon capture technology. So the discussions remain active with our potential customers in the cement industry. They are continuing on their journey, knowing that they have all the commitment towards carbon neutrality by 2050. There's no way they can achieve that without carbon capture. So we continue the discussion with all of them. Of course, it depends now on FID to answer precisely your question. It depends on ETS price, on the regulation subsidies in place, and also on the whole chain, it's not just about the capture, but the capture, the transport and the sequestration that need to also be ready and also missing a few still mechanisms like CCSD to really make it to the final investment decision, that again, momentum is still there with all our cement industry players. François Jackow: Thank you very much, Emilie. So we'll take 2 quick questions, 2 more questions, please. Operator: And now we're going to take our next question for today. And the question comes line of Sebastian Bray from Berenberg. Sebastian Bray: Can I ask about the backlog composition? Because leaving aside the question of how much is electronics and how much is associated with other end markets, have there been any changes relative to what Air Liquide has done historically in terms of contract length and the split between large industries and on-site that include parts of electronics in that and merchant gases. The reason I ask this is that Linde has pretty high backlogs close to record. Their products looks fairly healthy, excluding the new energy parts and Air Liquide is at record levels. And if we hit 2 to 3 years' time and everybody is bringing online new projects, does that pose an issue for merchant pricing, given that a lot of these large on-site projects are going to be adding capacity to merchants? François Jackow: Well, thank you very much, Sebastian, for your question. So as you know, we are extremely disciplined in the way we are evaluating projects. So every time there is a project, we look at, of course, the merit of, I would say, the anchor customer when it's a large industry or electronics customer. And if there is a potential upside with the merchant, we do consider that after careful consideration of the market potential and the local situation. And what you have to take into account here is clearly that the merchant market is a local market. So it depends on the situation. And with those new investments, you can bring very effective new source of products in regions where we are lacking products, and there are still quite a bit of those globally. So today, I don't see a threat at least from the Air Liquide point of view, I cannot speak for our competitors. But are extremely careful and disciplined in the way we justify new merchant investment. And again, it's based on the local situation. So that's how we are looking at things for the backlog, again, mostly driven for us by large industry and electronics. Thank you very much. Last question, please? Operator: And now we're going to take our last question for today. And it comes line of James Hooper from Bernstein. James Hooper: I've got a couple, please. First one is on the 2027 margin target. Great to hear the extension of that target. Are there measures that will deliver this going to be the same as the ones driving 2025 or 2026 or they may be different? And then a second question. I'd like to pick up on some of the -- about lower demand in Asia in large industries. Can you give us an indication of what's happening on the ground in Asia, particularly China? Is there any effect from overcapacity and anti-involution? And also a quick update on the helium market, please? François Jackow: I will start with the last one maybe on Asia because we didn't talk so much about Asia. Right now, again, we see a clear momentum in electronics across the board, and this is for a new project, but we see also picking up, clearly. So that's a very positive one. When you talk about overcapacity, mostly, it relates to what we have seen in the manufacturing in China. And we see some slowdown or maybe extended turnaround from some of the customer in China. But I would say on average, we are probably less impacted than other players because of the quality of the portfolio of companies we have. We have been extremely discipline in selecting over the years, I mean, the top-tier customers, which are the ones typically who have the best competitive situation. This being said, we do expect a further consolidation in some sectors, which overall should bring benefit to have cleaner, more efficient manufacturing capabilities for China and to export. Regarding the helium situation, again, globally, I mean, we are in a situation where there is low demand compared to the supply for helium. Keep in mind that for Air Liquide, and that's not necessarily the case for all our competitors, helium is only 3% to 4% of sales and 80% of our business is based on long-term contracts, both in electronics, which is still growing and Industrial Merchant. So yes, we are impacted mostly in some regions. China is clearly one market where we see a decreasing volume and decreasing pricing. But overall, our helium business is still strong and well resilient. Regarding the 2027 margin objective, I think really what you need to take out of that is the confidence that we have in our ability to continue to provide margin improvement. And the reason that we are confident it's because this is based on the structural efficiencies, which are the results of the transformation program. If you step back, you have seen that 3 years ago, I mean, a lot of the margin improvement was coming from the pricing. The pricing is still there, and we have really moved up our capabilities to secure pricing whenever it's possible. But with the lowest inflation, the pricing contribution is decreasing everywhere. But what we see is a pickup of the efficiencies, again, almost 30% more this year compared to last year, and we do expect this to continue. As I mentioned today and previously, we are at the beginning of the journey for many of the transformation initiative. So there is more to come in '27, '28 and so on, maybe not always at the same rate, but for 2027, we are very confident with this margin improvement. So thank you very much. This concludes our session. Thank you very much for all your insightful questions for sure. In conclusion, I would like to say that after a strong performance in 2025, Air Liquide entered 2026 with a proven model, record backlog, momentum in transformation and clearly, extended horizon for profitability. And we are all ready to build on this momentum. Thank you very much for your attention. I wish all of you a very good day. Operator: This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.
Operator: Good afternoon, ladies and gentlemen, and welcome to the Boardwalk Real Estate Investment Trust Fourth Quarter 2025 Earnings Call. [Operator Instructions] This call is being recorded today, Friday, February 20, 2026. I would now like to turn the conference over to our first speaker today, Eric Bowers, Vice President of Finance and Investor Relations. Please go ahead. John Bowers: Thank you, John, and welcome to the Boardwalk REIT 2025 Fourth Quarter Results Conference Call. With me here today are Sam Kolias, Chief Executive Officer; James Ha, President; Gregg Tinling, our Chief Financial Officer; Samantha Kolias-Gunn, Senior VP of Corporate Development and Governance; and Samantha Adams, our Senior VP of Investments. We would like to acknowledge on behalf of Boardwalk, the treaties and traditional territories across our operations and express gratitude and respect for the land we are gathered on today, and we now know as Canada. We respect indigenous peoples and communities as the original stewards of this land. We come with respect for this land that we are on today for all the people who have and continue to reside here and the rich diversity of First Nations, Inuit, and Métis peoples. Before we get to our results, please note that this call is being broadly distributed by way of webcast. If you have not already done so, please visit us at bwalk.com/investors, where you will find a link to today's presentation as well as PDF files of the Trust's financial statements, MD&A and annual report. Starting on Slide 2, we would like to remind our listeners that certain statements in this call and presentation may be considered forward-looking statements. Although the expectations set forth in such statements are based on reasonable assumptions, Boardwalk's future operation and its actual performance may differ materially from those in any forward-looking statements. Additional information that could cause actual results to differ materially from these statements are detailed in Boardwalk's publicly filed documents. I would like to now turn the call over to Sam Kolias. Sam Kolias: Thank you, Eric. Starting on Slide 4, welcome, everyone, to our Boardwalk Family Forever and to our year-end 2025 results. Redefining BFF, Boardwalk Family Forever is at the top of our organizational chart. Family is everything. Affordable multifamily communities have always been an essential product and service. Together with our residents, our associates, investors, partners, capital environment, community, we are all essential and interconnected family members with our true north where love always lives. Together, we go far. Our leaders put our team first and our team puts our resident members first. Guided by the golden rule, we have a peak performing customer service culture that creates exceptional results as we continue to see on our next Slide 5. Our continued impressive performance with GAAP and non-GAAP measures increasing from the same quarter last year, same-property rental revenue increased 5.8% and same-property net operating income increased 9%. Our operating margin increased by 190 basis points to 66.4% as well as our funds from operation per unit increasing by 11.2%. I would like to now pass it over to Samantha Kolias-Gunn. Samantha Kolias-Gunn: Thank you so much, Sam. We are extremely grateful for our team, our Boardwalk families perseverance, performance and continued commitment to our purpose, bringing our resident family members home to love always. Continuing on to Slide 6, our operational stability and commitment to affordable housing. Rental market fundamentals in our core markets are balanced. Demand continues for more affordable housing despite supply deliveries focused on higher-end luxury products to justify high construction costs. We are so grateful for our partnership with CMHC and our federal government that have implemented effective public policy to build more supply that has resulted in a balancing of the rental markets across Canada, providing more affordability to all Canadians. We are well positioned to deliver on our commitment to provide much-needed affordable housing in a more competitive environment with our experienced peak performing team, exceptional product quality from the $1 billion invested since 2017 in rebrand and repositioning efforts and dedication to our Boardwalk family as responsible community providers. Our self-regulation provides us with continued steady results as we remain flexible with our rental rates, producing greater stability in occupancy, margins, NOI and reputation paired with our strong financial foundation, minimum distribution policy, resulting in maximum reinvestment and free cash flow, strategic repositioning, unparalleled customer service and on our foundation of strong family values, we remain in a position to deliver solid performance. This is what sets us apart, bringing new home to where love always lives. Boardwalk strives to be the first choice in multifamily apartment communities to work, invest and call home with our Boardwalk Family Forever. Moving on to Slide 7. Our strategic rebranding enhances our resident member experience and exceptional quality at an affordable price, keeping our occupancy high at 97.6%. Per rentals.ca data, our average occupied rents of $15.90 per 2-bedroom apartment are attractive, especially relative to the Canadian average of $22.45. Moving on to Slide 8. Alberta continues to see positive population growth with small relative amounts of nonpermanent residents. Affordability continues to drive positive population and leading economic growth in our core markets, Alberta and Saskatchewan, reflected in our appendix. Quebec has delivered exceptional results, further evidencing the strong demand for affordable housing. Ontario remains stable. We are strategically in all the right places at the right time. Please refer to our appendix for more data on the resilience of the Alberta economy and renewed Alberta advantage. We would like to now pass the call on to Gregg Tinling, who will provide us with an overview of our quarter results, strong balance sheet, fair value and ESG. Gregg? Gregg Tinling: Thank you, Samantha. Beginning on Slide 9, occupancy remains strong, supported by continued growth in occupied rent. While vacancy loss increased, the trust effectively reduced leasing incentives, which contributed to the higher rental revenue reported in Q4 2025 compared to the same period last year. These results reflect the success of our strategic initiatives aimed at maximizing free cash flow and diversifying our product offering, delivering meaningful financial performance. Of note, the decrease in rental revenue shown for Q3 2025 as compared to the second quarter is due to properties that were sold -- that were previously included in the same property portfolio as reported in Q2 2025. Slide 10 provides an overview of leasing spreads for new and renewed leases under our self-regulated resident-friendly centric model. This approach continues to drive strong retention and referrals while keeping turnover and operating expenses low. On a year-over-year basis, leasing spreads have moderated, reflecting a more balanced supply-demand environment. Increased supply in select portfolio markets, particularly at the higher price points has led to greater competition and vacancy. Q4 2025 reflected a return to typical seasonality, coupled with reduced migration activity, this led to softer traffic, prompting us to concentrate on our priority of sustaining strong occupancy levels. Our strategic flexibility with new rental rates enabled us to preserve elevated occupancy while maintaining solid operating margins and net operating income. We remain focused on maintaining high occupancy and maximizing resident retention. This strategy reinforces our commitment to providing affordable resident-friendly housing in our core markets while also reducing costs and steadying operational performance, delivering long-term value for all stakeholders. Slide 11 shows sequential quarterly rental revenue growth, including 0% growth in Q4 2025 compared to the previous quarter. The change over each quarter is a reflection of Boardwalk's strategy, striving toward balancing the optimum level of market rents, rental incentives and occupancy rates in order to achieve its NOI optimization strategy. Turning to Slide 12. Same property net operating income increased by 7.3% in Q4 2025 compared to the same quarter last year. Supported by revenue growth of 4.5%, Alberta, the Trust's largest region, contributed meaningfully to this performance with a 4.4% increase in rental revenue, driven by stronger in-place occupied rents and reduced leasing incentives. Total rental expenses declined by 0.6% year-over-year, primarily due to lower utility costs with the removal of the federal carbon tax, alongside reductions in property taxes and insurance premiums. Slide 13 highlights administration costs and deferred unit-based compensation. Overall, total administration costs for the year increased 2.4% compared to 2024, mainly due to inflationary wage adjustments at the onset of the year. Deferred unit-based compensation decreased 11.7% year-over-year due to an $850,000 onetime true-up adjustment in the prior year to recognize unvested deferred units that would automatically vest if the participants who are eligible were to depart from Boardwalk. Slide 14 outlines Boardwalk's mortgage maturity schedule. The Trust's debt portfolio is well staggered with approximately 96% of the mortgage balance carrying NHA insurance through the Canada Mortgage and Housing Corporation. This insurance remains in place for the full amortization period and backed by the Government of Canada, enables access to financing at rates below conventional mortgage levels with a current estimated 5-year and 10-year CMHC rate of 3.45% and 4%, respectively. Although current interest rates are above the Trust's maturing rates over the next few years, the trust maturity curve remains staggered, reducing the renewal amount in any particular year. Lastly, the Trust has an interest coverage of 3.08 in the current quarter. In 2025, the Trust renewed $403 million at an average interest rate of 3.72% and with an average term of 6 years. In addition, the Trust made mortgage principal repayments totaling $79 million during the year. To date, of the $832 million of 2026 mortgages maturing, we have renewed or forward locked $228 million at an average rate of 3.72% and an average term of approximately 8 years. Combined with our cash on hand as well as our unused credit facilities, we are well positioned with strong liquidity available. Current underwriting criteria in our most recent submissions to CMHC and our lenders has remained in line with our historically conservative estimates. Please refer to Slide 49, which summarizes our 2025 mortgage program completed and Slide 50 for additional details on our 2026 mortgage program. Slide 15 illustrates the Trust's estimated fair value of its investment properties, excluding adjustments for IFRS 16. As of December 31, 2025, the fair value of investment properties totaled $8.7 billion compared to $8.2 billion as of December 31, 2024. The increase in overall fair value is the result of new acquisitions during the year and increases from rental rate growth while being slightly offset by dispositions of noncore assets and increase in cap rates in select markets, along with an upward adjustment for vacancy assumptions in Calgary to reflect a more balanced market. Current estimated fair value of approximately $247,000 per apartment door remains below replacement cost. In consultation with our external appraisers, the cap rates used in determining Q4 2025 fair value increased from Q4 2024 and Q3 2025, as cap rates were increased in Ontario, Victoria as well as the Trust's secondary markets in Alberta. The increase in cap rates were in response to either increased pressure on market rents or to reflect slightly higher risk fundamentals. As it does every quarter, the Trust will continue to review completed asset sales, transactions and market reports to determine if adjustments to cap rates are necessary. Most recent published cap rate reports suggest that the cap rates being utilized by the Trust for calculating fair value are within their estimated ranges. Slide 16 highlights our ESG initiatives. We'd like to highlight our 2025 GRESB score of 72, which represents a 7.5% increase compared to the prior year. Using a disciplined capital allocation approach, we are focused on reducing emissions through reduced utilities consumption and therefore, reducing utilities costs while always promoting social and governance initiatives. We encourage our stakeholders to view our 2024 ESG report available on the Trust's website. I would like to now turn the call over to Samantha Adams to highlight our capital allocation initiatives. Samantha Adams: Thank you, Gregg. 2025 was a year of tactical, disciplined capital recycling and allocation. As we move into 2026, we are maintaining this approach and continue to focus on our value-add repositioning initiatives, targeted dispositions of our noncore communities and unit repurchase program under the NCIB. Slide 17 illustrates how the reinvestment of our free cash flow back into our communities significantly increases the value proposition for our resident family members by upgrading common areas and adding meaningful amenities to enhance our overall experience. These renovations in turn help us strengthen market share in a more balanced market, boost retention and improve occupancy, ultimately enhancing our NOI and operating margins. In 2025, we completed the repositioning of 20 communities and since 2017, have undertaken renovations across the majority of our portfolio. Our strategy is to continue with our renovation program and have 16 projects planned for 2026. Slide 18 demonstrates the ongoing disconnect between our unit price and the value of our portfolio. Our NCIB continues to be a key capital allocation tool, helping to drive our compounded FFO per unit growth by over 12% per year since 2021. Over the past year, we invested $57.3 million into our unit repurchase program at an average price of $63.81. We have remained active with our buyback strategy. And to date in 2026, we have tactically deployed $18 million under the NCIB at a weighted average price of $67.63. This investment in our units and our platform remains the most accretive use of our capital today at implied yields exceeding 6%. Slides 19 and 20 present a summary of the acquisitions and dispositions successfully completed or recently announced. In 2025, we acquired $551 million in new properties located in Montreal, Calgary, Regina and Saskatoon at an average cap rate of 5%, representing our lifestyle and community brands. We also completed the sale of $241 million of noncore properties in Quebec City and Edmonton. And subsequent to year-end, we have completed or announced the sale of an additional $84 million of noncore properties. Two are located in Montreal and 3 are located in Edmonton. Our dispositions were sold at an average cap rate of approximately 5% and represent an average vintage of 1982. These successful dispositions completed at pricing in line with our fair value have enabled us to strategically redeploy capital towards the strongest risk-adjusted opportunities as summarized on Slide 21. And today, we anticipate remaining active under the NCIB and continuing the disposition program of our noncore properties at levels comparable to or exceeding 2025. I would now like to turn the call over to James Ha to discuss our track record of creating value and our updated 2026 guidance. James Ha: Thank you, Samantha, and thank you to our entire Boardwalk team for your service and commitment to our resident members, which has resulted in the strong 2025 results our team is sharing today. Our focus on investing in and delivering the best quality and affordable communities is why our residents make Boardwalk their first choice as the place to call home and reward our team with continued high occupancy and high retention rates. Slide 22 introduces our 2026 outlook as we build off our base of accretion-focused capital allocation and strong operating platform that provides resident-friendly affordability, product value and value in our communities. With the housing market that is more balanced, we continue to see that the demand for affordable housing remains resilient, and our outlook for the upcoming year is positive. 2026, we are anticipating same-property NOI growth of between 1.5% and 4.5% and FFO per unit of between $4.65 and $4.90. Please note that this forward-looking guidance does not include any potential asset dispositions, and we will be regularly updating and refining our outlook in the quarters to come. On Slide 23, we are pleased to announce an 11% increase to our regular monthly distribution equating to $1.80 per trust unit on an annualized basis beginning in March. Since 2021, our distribution has increased at a compounded annual growth rate of over 10%, while still retaining an industry high proportion of our cash flow to reinvest and compound growth. Our formula has extended our FFO per unit track record. And in 2025, we have more than doubled our FFO per unit in just 8 years. On Slide 24, this FFO growth, along with our approach to maximum cash flow retention has improved our leverage metrics to provide Boardwalk with one of the strongest and most flexible balance sheets. By retaining and recycling our own cash flow, we are able to grow while also consistently improve our leverage metrics, which provides the Trust with significant flexibility and liquidity to take advantage of opportunities that arise. One of these opportunities is shown on Slides 25 and 26, which highlights the exceptional value that our trust units represent. Our current trading price equates to less than $200,000 per apartment door at a mid-6% cap rate on a forward basis. Both metrics are exceptional when considering our product quality, locations, spread to financing costs and consistent cash flow growth as shared in our outlook. Recent private market transactions continue to be supportive of our estimated net asset value of $247,000 per door or $96 per trust unit. With the value our trust units represent, we are currently prioritizing investing in our own assets and platform through our normal course issuer bid with a planned minimum investment of $100 million to take advantage of this very attractive pricing and valuation in our own high-value platform. In closing, our team continues to be focused on delivering the best quality and value in housing to our resident members. Our unique operating platform and experienced team continues to demonstrate our ability to create value for all our stakeholders as we consistently deliver leading organic and FFO per unit growth that is increasing our free cash flow and operating margins. We would like to thank our resident members, our team, our partners and all our stakeholders for an exceptional 2025. We are looking forward to continuing our track record of growth into 2026, providing communities that our resident members are proud to call home. We'd now like to open up the line for questions. Operator: [Operator Instructions] Our first question comes from the line of Dean Wilkinson from CIBC. Dean Wilkinson: Maybe just high level, the news last night, probably not a surprise to anybody. But can we just sort of get your thoughts on what you think a referendum could mean just for population growth, demand, things like that? I know the outcomes could be varied and very hard to peg, but just how are you thinking about that? Sam Kolias: Thank you, Dean. It's Sam. And it's hard to see very many lineups and crowds just anecdotally on referendum. And I'm not too sure which referendum because there was a number of referendum questions yesterday, and then there's also the referendum on separation. And the good news over the summer, there was a lot of crowds on the petition for Canada and to keep Canada together. And personally, I saw a lot of people, and we saw the most sign-ups on keeping Alberta in Canada, more signatures than we've ever received. So that's what we're looking at, and we're not really aware and the friends that we have are for Alberta in Canada. I don't really know very many personally. It's best that we stay together. That's a good public policy. And the referendum that we just got yesterday with immigration, on that immigration or referendum question, we agree with the best case examples on public policy that are premier noted during our Harper administration. And the positive migration, the economic growth that came with it and the very sustainable immigration policy that we did have during the Harper administration where a lot of folks that we need to build more schools help us with our hospital, health care teachers, all the trades that we continue to need. That has been proven public policy that our premier is pointing out that is for everybody's benefit and what our premier is championing for that, by the way, we are champions of sustainable population growth that we need. And so that's our thoughts on the 2 referendum questions. Dean Wilkinson: Yes. I guess it's an issue that you wouldn't have to talk about it if everyone didn't want to be there. So it's a positive, I suppose. Maybe on a little more of an esoteric note. Sam, you've kind of embraced technology in the past. You've made technology platform investments. AI has been -- is kind of rolling through the market as this disruptive force over the past couple of weeks. How are you guys thinking about what AI could do for the business and perhaps how that could help managing multifamily as we go forward? Because I would imagine it's not a disruptor, but perhaps more of an enabler. Sam Kolias: Correct. It's Sam again, Dean. And we use our tools and technology to increase our productivity, to decrease our costs, to increase our resident member experience. And we've seen some positive time-reducing benefits from the tools that we've developed. We've also seen and we've all experienced the challenges with AI and anybody on this call that's tried to deal with a chatbot alone shares our collective frustrations with just AI. So it's absolutely clear that the choice is essential and human intelligence is still superior to artificial intelligence. And together, we have to use artificial intelligence as a tool and recognize that and always provide the choice for our resident members to channels that quickly allow access to either one of our amazing personal service associates, managers versus a chat box that for some tasks are acceptable and simple. So I guess it's more us as a tool, our productivity. The information, the reports that we see, the dashboards, very, very helpful to see the data that we continue to use and harvest to make the best decisions for our productivity and our resident member experience. Dean Wilkinson: Great. You and I are both big fans of human intelligence. Operator: Your next question comes from the line of Fred Blondeau from Green Street. Frederic Blondeau: I'll keep the subject of referendums for the [indiscernible]. A question for James here. Just looking at your SPNOI guidance. I was wondering if you could give us a sense of the main assumptions on each end of the spectrum because it looks a bit wide on our end. James Ha: Sure, Fred. It's James. Let me start and the team feel that we're missing anything. But when we look at same-property NOI, the approximate breakdowns are revenue between about 2.5% and 4%. And then on the operating expense side, generally between 2% to 4%. Frederic Blondeau: Got it. And would you say you see greater risks on the demand side for '26 or more on the supply side or a mix of both? James Ha: It's certainly a mix of both, Fred. We, for the first time in a long time, are seeing a much more balanced housing market across Canada. And where is that coming from? Well, that's coming from the additional supply that we as Canadians needed in the housing market. As you know, most of that supply that's being -- that has been delivered and is being delivered is primarily at the upper end of the rental market because of the cost of construction. And so we do see the upper end of the rental market continuing to be competitive. Where we are seeing strength and resilience, though, is affordable housing. And fortunately, with our portfolio average rent of below $1,600, we think the majority of our portfolio is going to continue to see the benefits of that. And so through the winter months on the demand side, as Gregg talked about in his prepared remarks, we did slower traffic this winter, kind of the return to seasonality. We had cold weather pretty well across the country and we saw that reflected in terms of traffic. With February now and as we get into the spring rental season, we have seen that pick up. And so February so far, so good. In the first 19 days of February, we're almost 90% covered of our turnover, which is a great sign. And so we are seeing the early signs today of what could be a good return to spring rental season. Operator: Your next question comes from the line of Brad Sturges from Raymond James. Bradley Sturges: Just to maybe expand on that line of questioning that Fred had there. Just I guess -- and I appreciate the chart you gave on leasing spreads to date. Just in terms of what's occurred in January and February, can you give a sense of the type of turnover you're seeing? I know that the focus is more on retention, but is there a little bit more specific breakdown you can give in terms of the breakdown of the suites turning either by affordability price point or other metrics? James Ha: Brad, we don't have the exact stats to be able to deliver them right now. However, we have looked at the type of turnover that we're getting, and we're seeing primarily at the upper end. Again, as we talked about, what we're seeing is that our more affordable product, the availability of that remains very close to 0. We've shared this story before. If anybody was looking to move to Alberta and Saskatchewan and you needed to move here for March 1 and your budget was $1,500, I would say, hey, we're going to have to do some work to find you that apartment. If you came to Alberta or Saskatchewan and your budget was $2,200, there's availability at that price point. And so as a result of that, because there is more availability, more choice at that upper end, that's where you are seeing more velocity and movement from a resident standpoint. But we did add on that leasing spreads graph, our volume and number of leases completed in each month. And so as we can see there, the winter months are slower. We remain focused on retention. And as we talked about with the pickup so far with what we're seeing in February, we do anticipate an improvement in those new leasing spreads. Bradley Sturges: Right. That's helpful. I guess, can you comment also in terms of like incentives have been trending down to the end of the year? Like how are you using incentives, I guess, within Q1? And then how would you expect that to trend over the rest of the year? James Ha: Yes, fairly sporadically. I mean our team always has the ability -- our leasing team always has the ability to use what we call pocket incentives. But our approach has really just been to adjust market rents when needed. Obviously, through the winter months, our strategy and approach was to maintain our high occupancy. And so we remain really flexible with those incentives. I think going forward, as we move into the spring rental months or pardon me, the spring rental season, we'll adjust market rents up or down accordingly depending on how the leasing season goes. The outlook for incentives, though, our team has done a remarkable job, a phenomenal job in terms of bringing those down. Going forward, we'll likely just focus on what that net rents number is and make those adjustments to face rents as appropriate. Bradley Sturges: And just last question on the revenue guidance there, the 2.5% to 4%. Could you break that down just by renewal spreads, new leasing and what you're expecting for occupancy? James Ha: Yes. Occupancy, our strategy is always to maintain high occupancy. And so we're very happy with our occupancy levels today of almost 98%. We'd love to see that creep a little bit higher. But practically speaking, the 97% to 98% mark is a good mark to have and a target that we have built into our forecast. Renewal spreads, again, we've been quite consistent there. As we look forward, our team and our retention teams are already negotiating renewals into April and May, and we're seeing very consistent results. And then on the new leasing spread side, again, as we get into the spring rental season, we would be looking for those to improve. And that only happens because we are going into the spring rental season with 98% occupancy or very close to 98% occupancy. And so when I look at the cadence there, we expect renewals to remain consistent and then an improvement from what you saw in December and January for new leasing spreads as we move into the spring. Operator: Your next question comes from the line of Golden Nguyen-Halfyard from TD Securities. Golden Nguyen-Halfyard: Just to add on to the same-property NOI question from earlier. What do you think are some of the drivers that would put you guys on the top end of the range versus the bottom end of the guidance you guys provided? James Ha: Yes. Great question, Golden. It's James again. Certainly, a strong spring rental season would allow for that. Again, we see continued strong demand for the more affordable product. I think if we can see a strong influx of demand in our markets during spring/summer, that could set us up well to hit the upper end of that revenue range that we talked about earlier. In addition to our team is always focused in on our controllable costs. As we know, our team has been -- has performed very well on that each year over the last several years. And on the controllable side, we have initiatives that we're driving that -- we're aiming to improve on those as well. And so if we can get some wins on those, that could potentially help us move towards that upper end. On the noncontrollable side, property taxes is a big one that Gregg and team and we flagged last November. We are forecasting a slightly elevated property tax increase this year. And again, we're active on assessments, appeals and working with our city counselors at the municipal level to see if we can bring those property taxes to more sustainable levels going forward. And so each of those components, Golden, are inputs into that, and we'll be working very hard on our side to outperform, as always, our forecast here. Golden Nguyen-Halfyard: Great. Maybe one more from my end, just on capital recycling. You've made good progress last year. Maybe if you could talk a bit about how you're feeling about the disposition environment for 2026. And maybe add a bit on the acquisition market and what you're seeing today and maybe the pace you can expect to see for 2026. Samantha Adams: Golden, it's Samantha Adam speaking. Yes, we foresee a similar program as we rolled out in 2025 and 2026 in terms of the dispositions. So we suspect levels will be similar or exceeding 2025. And then in terms of the acquisitions, we're not active today on the acquisition front. It's been relatively quiet, I would say, over the last couple of months. But we're always open to opportunities. But as of today, we're not actively pursuing anything. James Ha: It's hard to compete with our stock buyback right now and the opportunity that we have with the exceptional value our stock represents the 6.5% cap rate on a forward basis that we're trading at, our stock looks like a great place to be recycling capital into, Golden. Operator: Your next question comes from the line of Sairam Srinivas from ATB Capital Markets. Sairam Srinivas: Just probably looking at your comment on new leasing spreads, James. When you look at tenants moving out in the last couple of months now, are you seeing many of them compete with these newer assets? And when you are looking at your new leasing spread coming down, what are these competing assets like over there? James Ha: Yes. I mean there is more availability in the marketplace that upper end with deliveries. And again, this is across the country. We saw -- because of the lower traffic in December, January, pretty well across the country, we saw lower volumes and lower guest cards, lower traffic, which, again, to maintain our high occupancy, there was great deals that we had provided residents that moved in during those months. But the new competition for the most part, we're seeing at our more expensive product within our portfolio. That's where we're seeing the most competition. In our more affordable product, again, that's where it remains fairly resilient, and we continue to see strong demand and strong occupancies and spreads there. I don't know if that answers your question? Sairam Srinivas: It does, it does. And I'm just thinking from the perspective of the higher-end units in the market right now coming down, competing because -- and thanks to incentives, I guess. Are you actually seeing a lot of these competing units being incentivized by the supply coming in? James Ha: Yes. On a net rent basis, I mean, you see incentives in the marketplace. I mean all you have to do is go to RentFaster or Apartments.ca, and you can see 1 month, 2 months being offered in those newer products that are getting delivered. Again, this is pretty well what we're seeing across the country. Good news in Alberta, Saskatchewan specifically, we are seeing with the increased traffic with the spring rental season and some of those buildings are pulling back. Even ourselves included, if I think of our 45 railroad community in Brampton, we've had to provide some strong incentives and strong discount offerings over the winter months to obtain our full occupancy status that we have there. But getting to that full occupancy status allows us [indiscernible] then pullback on those discounts. And so you're starting to see that in the new builds that have gone through absorption. But it's really dynamic and fluid though, Sai. I would say, again, we anticipate that upper end, that north of $2,000 price point to continue to remain competitive. Sam Kolias: Sorry, it's Sam. And Slide 46 on move-outs is pretty descriptive of what we're seeing. So Q-over-Q, we're seeing a drop in turnover. And one of the reasons for moving out, which we're really pleased about is the reason for cost. That's going down, as you can see, from 271 in Q4 move-outs because of cost down to 191 due to cost. So the affordability is key, and we're seeing higher wages, inflation in wage pressure, settlements increase and [indiscernible] updated the average wage as much higher, too. And our rents just aren't going up as fast anymore across the country. And so that affordability, that balance we're seeing in the marketplace is very healthy because an affordable housing market and especially affordable rental housing market is mission-critical to a solid economy. Operator: Your next question comes from the line of Mike Markidis from BMO. Michael Markidis: I guess, so you clarified that on the dispositions, you expect to be as active, if not more active this year. And then it sounds like you're going to lean more into the NCIB with proceeds this year. What's changed? Because last year, you guys bought over $500 million and just looking at the stock chart, like on a range-bound basis, your stock was kind of at a similar level. So what makes it more attractive today than last year? James Ha: Mike, it's James. I mean, for one, our earnings are about 10% higher already versus this time last year, and we continue to see growth, as you can see in our guidance for 2026. And so the yield on that continues to be higher. In addition to, I think from an acquisition standpoint, as Samantha had talked about, we're looking for opportunities. We're always going to be open for opportunities, but we're also looking for those best deals as well. And so as of right now, as Samantha had shared, we haven't found that one yet. And with our cash flow model, we have capital and liquidity to invest every single day. And so right now, with what we're seeing, stock buyback looks like a great place to be allocating capital and proceeds from dispositions. Michael Markidis: Okay. And just a follow-up on that. You guys obviously did a great job bringing down your leverage from in excess of 13x to the current level of around 10. Is that sort of considered to be the new normal going forward for Boardwalk, absent material change in your cost of equity? Just how are you guys thinking about that? James Ha: Mike, it's James. The new normal for Boardwalk, which is declining debt-to-EBITDA is going to be the new normal, but at 10, that's not our goal. We continue to strive to reduce that debt to EBITDA. And again, that naturally is going to happen because of our cash flow model -- cash flow retention model and cash flow growth model for that matter. And so when you put those 2 together, we organically will continue to reduce that debt to EBITDA and look forward to continuing to execute on that. Michael Markidis: Okay. And then just last one for me. You've guys been able to push your turnover down. It keeps trending lower. You've got good visibility into the spring leasing season. So from now, I guess, is there anything to suggest that turnover will continue to grind lower? It's going to stay stable or in the spring will we start to see that tick back up? James Ha: Yes, we'd like it to be lower, Mike, because as we know, in Alberta and Saskatchewan, specifically, our team does a great job with our retention and balancing that turnover with spreads and costs. As we look into the spring season, historically, you generally see a little bit of a higher turnover in the spring and summer months, which I would expect that. But overall, on a trend basis year-over-year, we would aim to continue to lower that turnover on a year-over-year basis. Operator: Your next question comes from the line of Kyle Stanley from Desjardins. Kyle Stanley: Just kind of sticking with the commentary around spring leasing. Can you quantify maybe the uptick in demand you're seeing so far into the spring and how that may compare versus what you saw last year? And is there anything else driving it other than seasonality? Just trying to really understand the confidence in really seeing the demand pick back up. James Ha: We were looking at our guest cards, which is traffic. And when we look at guest cards so far in the first 19 days of February versus the first 19 days this time last year, we're about bang on -- and so that compares when we're looking at our guest cards for December and January, we were down about 20% year-over-year. And so we have seen that pick up. We've asked our teams on the ground. Is this -- how does this feel team? Is it more immigration? Is it pent-up demand? And from our team's perspective, so far, again, this is just what we're hearing from the ground is a little bit of both. When we look at our phone inquiries, we still continue to see a lot of 416, 905, 604 area codes calling into our sites. Certainly, weather plays a part of this, Kyle. We had cold winters across the country in December. And so there is -- that plays into that seasonality. But so far, so good. With what we're seeing in the first 19 days of February, again, I quoted earlier how much of our turnover has already been leased up. With what we're seeing right now, we do see some increased traffic and velocity heading into the spring. And again, our confidence on this comes from starting at close to 98% occupancy. And so we're not having to fill up at the same time. We really like being full heading into this busier season. Kyle Stanley: Right. Okay. No, that's helpful and kind of brings me to my next question, I guess, your ability to not have to fill up while also leasing, does that give you confidence that the negative 5% new leasing spread, does that trend closer to flat as we get into the stronger months? Or do you expect new leasing spreads to maybe stay in the negative range for the bulk of the year? James Ha: We are seeing improvement on it right now as we speak. Again, that's in the first 18 days of February. And I'm quoting 18 because our data does lag a day or so. But let's not forget that 75% of our deal flow comes from retention and renewals. And so you see the renewal spreads there. They remain positive. Again, we're negotiating 2, 3 months in advance already, and we're seeing consistent results there. And so retention is key in our markets. And so far, so good on that front as well, Kyle. Kyle Stanley: Okay. I appreciate that. And just one last one, just on your kind of higher level outlook for market rent. I mean it seems like most of the focus today is on the timing for positive rent inflection. I just love your thoughts on when do you see that occurring? Is it a late '26 event? Or do you think that gets pushed into '27? Just love your high-level thoughts. James Ha: Yes. High level thoughts, again, it's James here, Kyle. High level, I think it depends on price point and it depends on product type. And so again, as we talked about, we see the upper end of the rental market. So again, north of $2,000 a month remaining very competitive. Where there may be opportunity to see continued improvement in market rents, though remains in the more affordable product. And so communities where market rents are $1,400, $1,500, $1,600 where affordability is so high, that's where we can see some market rent adjustments upwards. And you see that even in our own portfolio, Kyle, if you look and segment by market, you can see that our more affordable markets are seeing market rent increases. In our more expensive markets and expensive product, that's where you've seen us adjust market rents. We see that trend continuing for 2026. Operator: Your next question comes from the line of Mario Saric from Scotiabank. Mario Saric: I just wanted to clarify, James, your comment on the expectation for consistent renewal spreads would consistent essentially be defined as kind of 3% to 4%, which is what you did in Q4? James Ha: Yes. Similar -- if we look at Slide 10 there, portfolio-wide tracking in the 3% to 4% range. We are looking for that to remain consistent through the spring. Mario Saric: Got it. And where would you say -- like if you compare, let's say, your sub $2,000 per month portfolio relative to market, given you adopted the gradual or the restrained rent increases over time, where would you characterize your kind of mark-to-market for your -- how much lower are you than peers in terms of your in-place rent today in the affordable portfolio? James Ha: Our market rents are fairly dynamic, and we're pricing those all the time. And so I know we get this question regularly, but in non-price controlled markets, I mean, it is quite fluid. And so as we head into the spring rental season -- sorry, let me start with -- as of December, we feel that, that mark-to-market, I think you can find it on Slide 47, is fairly accurate for that point in time. So again, December 31. And keep in mind that mark-to-market doesn't come from just new leasing. It also comes from renewals as well. And so as we head into the spring rental season, I think with the traffic we're seeing, again, in our more affordable product, as we talked about earlier, we see occupied rents continuing to increase, but we also see market rents continuing to increase in that more affordable product. And so to quantify it, Mario, I think that slide does a pretty good job of it at that point in time. If I had to guess what that's going to look like for March 31, I think you're going to see occupied rent increase because the majority of our portfolio remains in that affordable bucket. And I think you see market rents increase a little bit in that more affordable segment, which again represents the majority of our portfolio. Mario Saric: Okay. Okay. And then just switching from my last question. Within the guidance, you mentioned there's no dispositions included to the extent that you were to kind of hit your target on dispositions for the year based on, I guess, the in-place debt profile, if you were to hit your target and redeploy the proceeds into your NCIB, would that be FFO accretive or kind of neutral or dilutive in your view? James Ha: Mario, it's James. It would be accretive subject to timing. And so that math is simple, right? I mean it's -- you can see it even with this Montreal disposition proceeds from January, where we're selling noncore communities that under a 5 cap, we're turning around and buying back stock at 6.5%. That maths subject to timing, of course. And so our note on the disposition side is really just going to be subject to how quickly we can redeploy proceeds, which as more dispositions come through in the year, we'll provide an outlook and a view on that when that time comes. Mario Saric: Okay. I was just thinking more along the lines of an FFO yield without kind of understanding what the debt profile of the potentially disposed assets could be, but it sounds like it would also be accretive from that perspective. James Ha: Yes. On a levered basis, FFO yield is a metric that we look at as well, Mario. And of course, it depends on the assets that we're disposing of and what that leverage profile looks like, which is very unique from a community to community. But yes, you pin it bang on our view in terms of disposing noncore assets, that FFO yield and the alternate place where we can redeploy that capital is a huge consideration on our part as well. And yes, Mario, sorry, our expectation is that recycling is accretive. Operator: Your next question comes from the line of Matt Kornack from National Bank Financial. Matt Kornack: Just going back to the Montreal disposition; a, was there a mortgage in place on those 2 properties? And if so, kind of where were the interest rates? And then that product hold probably a little bit more challenging to manage, but it is affordable presumably. So how do you make the differentiation between what affordable you want to own versus what you're disposing of at this point? Samantha Adams: Matt, it's Samantha Adams speaking. Yes, the debt on the 2 Montreal assets was about just under $23 million at a rate of just under 4%. I think it was about 3.9%. Matt Kornack: And just in terms of, yes, just how you think about -- I mean, that product, I looked at it's got some rents sub $1,000 granted. That may not be affordable necessarily for the tenant types that would occupy those properties. But how do you kind of look at affordability and what you want to keep asset-wise versus what is noncore from a disposition standpoint? Samantha Adams: Okay. Got it. Affordability sort of involves every decision we make on the acquisition side and on the disposition side. We are all about providing affordable homes to our resident family members. But in terms of decisions, whether or not we dispose of a property, affordability would play a part of it, but it also stems from other factors. There may be capital requirements. The building may no longer allow our incredible experienced team to amend or renovate the property to deliver the type of experience we want to deliver to our resident members. And it also provides a really cost-effective source of cash flow for us, so which we can then redeploy into whether it's our NCIB or ultimately back into new acquisitions. It is a really, really strong use of source of cash flow for us. Matt Kornack: Okay. That makes sense. You mentioned, I think, that a portion of your growth is going to come from renewal rates in Quebec. They've been elevated for the last 2 years. The new rent control regime there, I think, favors kind of investment in the properties. Presumably, you're already investing. So is it just the ability to capture a percentage of that CapEx that you're spending in the properties that you think you'll get that excess renewal increases? James Ha: We do, Matt. We see a continuation of that for [ 2026 ]. Our team has invested in our Quebec portfolio. We continue to, and we were very happy to see the acknowledgment for those capital improvements and to keep communities affordable in Quebec. And so we do expect elevated adjustments for our Quebec portfolio relative to the [indiscernible] guideline. Matt Kornack: Okay. And then on Calgary, I know you gave a broader view as to how you see things evolving. But for that market, in particular, it seems like it's more supply, again, like the population growth is pretty good in Calgary, but it seems to be a more difficult or competitive jurisdiction at this point. What do you think the time horizon is for kind of supply absorption and as an improvement in that market from a market rent standpoint? James Ha: Matt, Calgary has benefited and continues to benefit from population growth for all the reasons that we've talked about at length over the past many years. We've invested heavily in our portfolio and our average rents in Calgary as a result of those is $1,900. It's very close to that mark that we were talking about earlier. And so we are in that competitive segment within our own portfolio. We are seeing continued supply deliveries from communities that went under construction 2, 3 years ago. But as we're seeing in other parts of the country, economics matter and development -- peak development economics have come and gone. And so we would anticipate the under construction numbers and the number of projects that are starting to start to taper. But here in Calgary, because we have population growth, we do need that new supply. And fortunately, again, in Calgary, we are seeing a pretty good balance. We continue to see strong retention within our Calgary portfolio. We continue to prioritize that occupancy. I would anticipate we are starting to lap those -- that period of time where we saw more balance in Calgary. And so we are -- we could see some stabilization in terms of where those market rents are. But again, that's all going to be subject to what does the immigration profile look like? What are we doing with immigration across Canada? We still think Alberta is going to win relative to other places because of the low taxes, the affordable housing, all the things, again, we've talked about in the past. But again, are we going to see more permanent residents in the country? Are we going to see more nonpermanent residents in the country? And that will help define not just for Calgary, but frankly, across the country, what rental rates are going to look like in the short to medium term. Matt Kornack: Yes. Makes sense. And then last operational one for me. You've done exceptionally well on NOI margins. I think you've troughed at 51% in 2017 on a trailing basis. You're up to 65%. That's ahead of where you would have been kind of pre-oil correction. Is -- it's sounds like your costs and your revenues are going to track each other, but do you think that's done in terms of margin expansion? Is there a structural ceiling? Or is there a little bit more to push on the margin front at this point? James Ha: Definitely more to push, Matt. I mean it's a goal that we've communicated to all of our stakeholders that margin improvement is a big one for us. We still see a path through it. I know we gave ranges for that. But our team is doing a good job on controlling what we can control in addition to on some of our expense items like utilities, as an example, we have, as we talked about in the past, started to shift that consumption -- or pardon me, that expense to our residents who are actually the ones consuming that. And so that's helping keep rents low. It's helping us improve our operating margins. And it's helping us reduce overall consumptions within our portfolio, which is a win-win-win scenario. And so as we look forward, Matt, I think we're just getting started on the margins. We are aiming and building strategies and approaches to continue to improve that going forward. Matt Kornack: Just as an update, we didn't hear any cheers on the call. So I just wanted to let you know as proud Alberta Canadians with Team Canada pulled out the win in hockey. Samantha Kolias-Gunn: And congratulations to Team Canada. Operator: There are no further questions at this time. I will now turn the call back to Sam Kolias, Chief Executive Officer. Please continue. Sam Kolias: Thank you, John. As always, if there are any further questions or comments, please do not hesitate to contact us. With gratitude, we'd like to thank our entire team that puts the extra in ordinary day in and day out. Our team is truly extraordinary. Thank you, loyal family residents, CMHC, our lenders, partners and, of course, our unitholders from far and wide and local. It really is all about our BFF, our Boardwalk Family Forever, whose huge shoulders we stand. And as leaders, we continue to do everything we can to support continued growth and extraordinary. We can't thank our extraordinary team and great leaders enough. We are pleased with our improving results on a foundation of exceptional value, service and experience we continue to provide our resident family members, our investors and all our stakeholders. We conclude home is where our heart is, our heart is where our family is and our family is where love always lives. Our occupied rent average, $1,590. Our love always, priceless. Welcome home to love always. Our future is Boardwalk Family Forever. What can be more important when choosing where to call home? Well, we heard from Matt, maybe a Canada men's gold medal, but maybe not more important, but it's really high up there. And again, congratulations to our Canadian men's hockey team for winning gold. God bless us, and now more than ever, grant us all peace, our greatest prize of all. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Welcome to the Cofinimmo Full Year 2025 Results Conference Call. [Operator Instructions]. I will now hand the conference over to your host Jean-Pierre Hanin, CEO of Cofinimmo. Please, sir, go ahead. Jean-Pierre Hanin: Thank you, Marja, and good morning to everybody. Thank you for joining us for the presentation of Cofinimmo's results for the full year 2025. I'm joined by some of my colleagues, Jean Kotarakos, CFO; Sebastien Berden, COO; and Sophie Grulois, General Counsel and Secretary General. As usual, we'll keep the presentation focused, and we look forward to your questions at the end. I will start with a brief update on the contemplated combination with Aedifica through a public exchange offer that we addressed in our several press release available on our website and published between the 1st of May '25 and the 29th of January 2026. On the 3rd of June 2025, Aedifica and Cofinimmo reached an agreement to unite and create Europe's leading healthcare REIT. The combination of both companies will be realized through a voluntary and conditional exchange offer for all Cofinimmo shares launched by Aedifica. After approval of the Aedifica shareholders in July 2025, the Dutch and German competition authorities also granted their approval. On the 21st of January '26, we were informed that the Belgian Competition Authority granted clearance for the proposed combination, subject to the commitment offered by Aedifica to dispose of healthcare assets located in Belgium over several years with a total value of EUR 300 million. On the 29th of January, the offer prospectus of Aedifica and the response memorandum of Cofinimmo were approved by the FSMA. Subsequently, the initial exchange offer for acceptance by the public was launched on the 30th of January 2026. This offer is currently ongoing, as you all know, and will be closed on the 2nd of March of this year with the announcement of the results in the following days. Beyond this brief update, you will understand that today's discussion will focus on Cofinimmo's stand-alone performance and outlook. Let's begin with the key highlights from the year on Slide 3. Despite a volatile macro environment, 2025 has been a year of strong operational and financial performance for Cofinimmo, which leads to results higher than the outlook. Those good results arise from an excellent operational performance, a gross rental income of EUR 355 million, up nearly 3% like-for-like, a high occupancy rate of 98.4% and long residential length of 13 years on average. The solid financial foundation on which Cofinimmo was built also explained those good results. For example, a very low average cost of debt of 1.5%, one of the lowest level for REITs in Europe and a low debt-to-asset ratio of 42.8%, reflecting disciplined portfolio management. Sustainability has remained a core focus through the year. I'll come back on that later. The net result from core activities, EPRA earnings, rose by 0.7% to EUR 246 million, above guidance. The net result -- group share reached EUR 213 million, up EUR 150 million year-on-year. Healthcare real estate market, up 77% of our EUR 6.1 billion portfolio. The Office segment has largely been recentered on the best area of the Brussels Central Business District. I will comment on our investment and divestment 2025 and on the outlook '26 later in the presentation. All those elements allowed the Board to confirm a gross dividend of EUR 5.20 per share for 2025, payable in 2026. Our company profile and strategy are already well known by all of you, so I suggest to go directly to Slide #8, which also reflects something you know quite well, which is the evolution of over time of a different segment until 2025. Let's move on Slide 10. So last year, we achieved gross investment of EUR 111 million, essentially linked to the execution of development projects in healthcare. We also continued on the right bar chart, our asset rotation mainly in healthcare, ending 2025 with EUR 82 million of divestment. Divestments were all made in line with the latest fair value. Those of distribution network assets were even done above fair value. Slide 11 summarizes for you the active portfolio rotation. Since 2019, we have transformed what was still dominantly a Belgian office player into a leading European healthcare REIT. Over 20 years, the group completed EUR 4.6 billion net investment in healthcare with a clear acceleration since 2018 and a slowdown since 2022. Over the same period, we managed to realize net divestment amounting to almost EUR 1 billion in offices. Slide 12 illustrates the solid portfolio growth since 2018. You can witness our investment pace and the expansion path in healthcare real estate despite change in market conditions. This results in a portfolio growth of 7% on average per year. Over the same period, thanks to our proactive management, we kept our debt-to-asset ratio at an adequate level as shown on the right-hand chart. The outlook for the end of 2025 was around 43%, and we managed to close the year in the lower end of this outlook at 42.8%. On Slide 13, I'd like to comment on the Cofinimmo's share performance on the stock market. Since our last call in July, we gained approximately EUR 700 million in market cap, which associate now between EUR 3.5 billion and EUR 3.6 billion. After several difficult years, European healthcare real estate, in general, performed well on the stock market during the 2025 financial year, and this was even more true for Cofinimmo in particular. Three distinct periods can be identified. Firstly, the adjustment to the 2025 dividend outlook payable in '26 announced in February '25, and that was well received by the market. The share price rose 8% between the close of the trading on the 20th of February and that on the 2nd of April '25 in the context of a boost M&A activity in the U.K. Secondly, the share price also performed well after President Trump announced Liberation Day, climbing 30% between the close of trading on the 2nd of April and the 29th of April '25. It was due to the fact that healthcare real estate is not directly affected by tariffs. Thirdly, the share price accelerated from 30th of April onward, stabilizing at a level reflecting the proposed combination with Aedifica through a public exchange offer. After a new acceleration in the last weeks of the year, the share price reached EUR 79.2 on the last day of 2025, up 18% since the end of April. The total gross returns for shareholders just amount to 45% cumulatively over 2025 and even more than 82% until the 18th of February of this year. Going to sustainability, I'm on Slide 15 to 19, you see that, as usual, sustainability is at the core of our strategy and embedded in all operations. Let me give you some recent examples. Cofinimmo improved its ranking in the Europe's Climate Leaders list issued by the Financial Times, now at the fourth place among 39 European real estate companies. In 2025, we achieved 10 new BREEAM certifications across healthcare and office assets. Two days ago, another good news, we were included in the S&P Global Sustainability Yearbook 2025. We renewed our Great Place to Work certification in Belgium and Germany and the scope of our ISO 14001 certification was extended to Spain, and we received the EPRA Sustainability Gold Award for the 12th consecutive year. I'm on Slide 17 now. As a reminder, our Thirty to the Cube project designed in agreement with science-based targets foresees a 30% reduction in energy intensity of our portfolio by 2030. At the end of 2025, the energy intensity has already been reduced by 26% since 2017. You have, as usual, on Slide 18 and 19, the list of sustainability benchmarks and awards show that our efforts have positioned us as a very credible player in the industry. Now let's turn to the property portfolio. I'm on Slide 21 where you see that our property portfolio maintains a very high occupancy rate of 90.4% at the end of 2025. On the same slide, you see the top 10 list of our tenants. Our tenant base is diversified with the top 10 tenants accounting for 62% of contractual rents. Moving to Slide 22. The overall weighted average residual terms remain quite long at 13 years and even at 14 years for healthcare. Lease maturities are well spread over segments and geographies. On the next slide, we see that over 2025, gross rental yield at 100% occupancy stands at 5.9%, with net yield at 5.6%. Overall, our average net yields are closer to 6% than to 5%. Also, yields are stable across segment, reflecting disciplined asset management and resilient demand. Sebastien Berden, CEO, will now provide insight into our segment. Sébastien Berden: Thank you, Jean-Pierre, and good morning to all of you. Since 2018, we consolidated our position within the healthcare sector in Europe. And I'm sure you remember, we achieved this through geographic expansion, but also by diversifying in the different types of healthcare buildings. As illustrated on this slide, our portfolio spans 9 countries and includes 8 different types of healthcare assets. Next to nursing home, which still form the majority of our assets. We own acute care and rehab clinics as well as primary care and facilities for disabled people to mention only a few. Moving to Slide 26. This is an overview of our portfolio. The fair value amounts to EUR 4.7 billion and represents 77% of Cofinimmo's overall portfolio. After some selective divestments, we own now 304 assets, representing more than 30,000 beds and supplying 1.9 million square meters to many clients. On Slide 27, we present a little update of the statistics on underlying occupancy that soon became a habit in the market. And the trend in the evolution of underlying occupancy is good. You'll recall that in '23 and '24, we saw a continued improvement in occupancy rates in most countries, while now the same trend continued as the average occupancy in our portfolio stands at 93% in December '25, up 1% from last year. I'm sure you also remember that we compiled the statistics from our observations during visits, and we will reconfirm this figure within a couple of months when we also receive the reports from all our tenants for all our assets, likely somewhere in June or July. On Slide 28, we also like to remind you of the many projects and buildings under construction we managed in '25. And although the list is long, we actually reduced it with 5 projects that were completed in 2025. These were projects in Spain, Belgium and the Netherlands we had in our rolling pipeline in months and are very happy to have now been delivered. And maybe I'd like to draw your attention this time also on a series of investments we did in nursing homes and care facilities for disabled people in Finland. We are very happy with this as we strongly believe in the Finnish market and could agree on a gross rental initial yield of approximately 7%. And as you know, when Cofinimmo invests, Cofinimmo also divests, and this is a summary on our divestments in Slide 29. These were primarily all the nursing homes in France and a series of smaller assets and medical office buildings in the Netherlands. We disposed them in the context of our asset rotation program that we set up since a couple of months now. Let's now move to the Pubstone portfolio and move to Slide 32. This slide is a quick reminder of the portfolio that represents 800 pubs and restaurants for a fair value of EUR 500 million. Slide 33 reports on the activity of the Pubstone team. Well, the activity was one of active divestment in 2025 with a disposed volume of approximately EUR 9 million at excellent conditions since all disposals were sold at prices above fair value. Worth mentioning also is a disposal in our PPP portfolio for a police office near Antwerp. Finally, I'm also asked to provide you with a short update on our office portfolio and propose we move to Slide 35. This portfolio represents a fair value of EUR 925 million with 25 properties supplying 250,000 square meters to many clients. Slide 36 reports on the activity of the Office team and their excellent work and performance again in '25. The team worked further on the optimalization of this portfolio, keeping almost 3/4 of the square meters within the European district of the CBD. This segment where we can observe the highest average rents and where the prime rent was observed. And then finally, on Slide 37, we report on one of our milestones in '25 in this portfolio. It is a reminder of the renovation of an office building in Mechelen City between Brussels and Antwerp, offering 15,000 square meter lease and leased to the Flemish community for 18 years. I will now pass the floor to Jean Kotarakos, our CFO, who will delve within the financial specifics of our company. Jean Kotarakos: Thank you, Sebastien. Good morning to all. We can go to Slide 39. Here, we observed that our overall portfolio has experienced a like-for-like rental increase of almost 3%, primarily fueled by indexation and new leases. Besides this, the minus 1.1% year-on-year change you can see in gross rental income is mainly due to changes in the scope. We can move to Slide 40, where we see a 0.7% growth of the EPRA earnings compared to 2024 at EUR 246 million, which is higher than the outlook. Please note that this figure excludes nonrecurring effects arising from the proposed combination with Aedifica over the year and the divestment of a finance lease receivable in Q3, which partially offset each other and represent a net expense of EUR 1.4 million recorded as a result of the portfolio below EPRA earnings. The EPRA EPS reached EUR 6.45, which again is higher than the outlook. On Slide 41, we present the IFRS -- net result, sorry, which stands at EUR 213 million at the end of '25 or EUR 6.61 per share. The increase of EUR 150 million compared to '24 is due to the increase in the net result from core activities of EUR 2 million, combined with the net effect of the changes in the fair value of hedging instruments and investment properties, which are both mainly noncash items between the end of '24 and the end of '25. The net result group share per share at the end of December '25 takes into account the issuance of shares in '24 as illustrated by the increased denominator, which increased from 37.5 million to more than 38 million rounded. Drilling down into the portfolio result, we see a figure of minus EUR 23 million compared to minus EUR 152 million at the end of '24. This encompasses the following key elements. The gain or losses on disposal of investment properties and other nonfinancial assets amount to plus EUR 4 million, so it's a gain at the end of '25 compared to minus EUR 16 million at the end of '24. The item changes in the fair value of investment properties is positive at the end of December '25, plus EUR 2 million compared to minus EUR 123 million at the end of '24. Without the initial effect from the changes in the scope, the changes in the fair value of investment properties during the first quarter of '25 were positive, putting an end to 9 consecutive quarters of decrease, and they remain stable in the second, third and fourth quarters. In total, this change was plus 0.1% for the '25 financial year and is mainly due to, firstly, a change of plus 0.1% in the real estate which arises firstly from a negative change in France, mainly due to the increase in registration fees following the Finance Act implemented on the 1st of April by certain local authorities as well as downward revision to inflation forecast in that country. And secondly, a positive change in the Netherlands derives from the combined effect of indexations and the increase in estimated rental value reflecting, sorry, an increase in operators' public financing. All this is combined with a minus 0.8% change in the Office segment, representing only 15% of the consolidated portfolio and partially offset by a change of plus 1.8% in the property of distribution networks. Turning to Slide 42 and looking at the balance sheet. We observed that our total assets are valued at approximately EUR 6.4 billion. Investment properties at fair value represent nearly 95% of this figure. Those assets are financed by roughly EUR 3.5 billion in equity and less than EUR 3 billion in liabilities. The Slide 43 offers an analysis of the evolution of the debt-to-asset ratio from 42.6% at the end of '24 to 42.8% at the end of '25. This stability can be attributed to several factors. First, the dividend '24 paid to our shareholders last May has led to an increase of 3.7%, which was offset by the cash flow produced during the full year '25, generating a decrease of 3.8%, while the net investment of '25 had a global effect of a mere 0.2% positive. On Slide 44, you can see that the EPRA NAV -- sorry, that the NAV is somewhere between EUR 92 and EUR 101 per share, depending on the concept you like most. I will comment on the evolution of the IFRS NAV between '24, where it stood at EUR 92.84 per share versus EUR 92.2 per share at the end of December '25. This very limited decrease of EUR 0.6 per share has 2 drivers. The payment of the dividend '24 in May '25, which still amounted to EUR 6.20 per share, partially offset by the net result for '25 being EUR 5.61 per share as seen on the previous slide. Let's now move to the financial resources at our disposal. In '25, there was no equity raise as there was no optional dividend. I'm on Slide 47. Our S&P credit rating to BBB with a stable outlook was confirmed in March '25 with the report being published in April. It's also worth mentioning that S&P improved its outlook early June '25 following the press release related to the proposed combination with Aedifica and reiterated this outlook early November '25. This means that the combined entity rating could improve by 1 notch after completion of the combination. Cofinimmo continued to proactively manage its financial maturities, as you can see on Slide 48. In this context, Cofinimmo signed new long-term credit lines for EUR 185 million and extended a cumulative amount of EUR 494 million for 1 year. Slide 49 reminds you that Cofinimmo holds EUR 2.6 billion in sustainable financing, comprising various instruments, including a sustainable commercial paper program. We can go to the next slide. And on this slide, Slide 50, we show further the breakdown of the long-term committed financing instruments split between bonds and similar instruments which represent almost 1/3 of the total and bank facilities representing more than 2/3 of the total. This includes a headroom of more than EUR 1 billion of available credit lines after the deduction of the backup of the commercial paper program. The second chart shows the breakdown of the drawn financial debt. Going now on to Slide 51. Due to the passage of time and the weight of the 2 benchmark bonds of EUR 500 million each in our maturity table, the average debt maturity after it remains stable at 4 years in '23 and '24 stands now at 3 years at end of '25. The average cost of debt is still very low at 1.5%, which is one of the lowest across the European REIT landscape and in line with the outlook. On the medium term, we anticipate a gradual increase year-on-year to reach around 2.3% in '28 when the first benchmark bond will mature. Looking at the maturity table on Slide 52, we can see that the operations recently carried out provided that the long-term financial commitments for 2026 are now reduced to EUR 267 million versus EUR 781 million at the beginning of '25 and EUR 695 million at the end of the third quarter '25. Most of the credit lines maturing in '26, representing EUR 207 million out of the mentioned EUR 267 million will not be refinanced earlier since they have been concluded at attractive conditions. And finally, Slide 53 reminds us the high hedging ratio foreseen for the coming years. I will now hand over to Jean-Pierre, who will give you an update on the '26 outlook. Jean-Pierre Hanin: Thank you, Jean. Thank you for this financial overview. On Slide 55, you will find the breakdown of net investment estimate for 2026. Turning first to the investment column on the left on the slide. We are considering at this stage gross investment for a total of EUR 310 million for 2026 splitted between committed development project, files under DD or being contemplated, other healthcare investment and limited CapEx for offices and distribution networks. Secondly, on the divestment aspect on the right side of the slide, we foresee a total of EUR 110 million, the lion's share of it, 5 already done under due dil and EUR 6 million of other potential divestment file. With this projection, net investment would reach around EUR 200 million at the end of 2026. I will end this presentation with an update on the outlook for this year on a stand-alone basis. Cofinimmo expects, barring major unforeseen event, to achieve a net result from core activities group share per share, which is equivalent to EPRA EPS of EUR 6.35 per share for the 2026 financial year, leaving aside the nonrecurring effect arising from the proposed combination with Aedifica. The debt-to-asset ratio as at the end of '26 would then amount to around 44% compared to 42.8% at the end of last year. We appreciate your attention. We all know that the mindset are more in the direction of the future deal with Aedifica, for which all the team of Cofinimmo are very supportive and already working on it. But of course, we are, as usual, at your disposal for any questions you might have. Thank you. Operator: [Operator Instructions] Our first question comes from the line of Charles Boissier at UBS. Charles Boissier: Two questions from my side. So first on healthcare tenants and second on Offices. On healthcare tenants, I think back in 2024, the write-downs amounted to EUR 0.5 million. And now you have mentioned some write-down on receivables, termination payments in the order of EUR 6 million offsetting each other. So it's 12x more than 2024. So I just wanted to know about the context behind these write-downs and how much annualized rent does it correspond to? And to what extent this is also in the 2026 guidance as well? Jean-Pierre Hanin: Thank you, Charles. First, on the numbers, Jean? Jean Kotarakos: Yes, Charles, I would like just to precise 2 things. The amount offset each other, in fact, so we have a write-down indeed of EUR 6 million on receivable and then indemnities of EUR 6 million, which is a positive amount. Jean-Pierre Hanin: So it's not an add-on. It's minus -- so -- but anyway, it's -- your second question about the context. So as you know, the global context for operators is seriously improving with some variation regarding the speed depending on the size of the operator on the geography, as also known and reflected in the press, including in the last quarter of '25 and the beginning of this year. Some of them are still finalizing the restructuring of their balance sheet. And I would say, for some of these operators linked to activities that have nothing to do with healthcare, which means that healthcare assets are very sound, and this is still the view that we have for all assets. And basically, this write-downs have been indeed taken, but they might lead to credits in future periods. And that's basically the position we have preferred to take, especially in view of the coming deal for the future. So this is basically the end of, for some of the operators, some difficult periods. Some of them tackle problem at the beginning. Those who had problem outside of the healthcare started to restructure their balance sheet a bit later. But basically, nothing very worrying. As far as Armonia is concerned, you are also reading the press. We have an agreement with them in agreed form, not yet signed, but it's -- as we speak, it could be in the [indiscernible] could be received as we speak. So basically, this is the situation. As far as Offices is concerned, I guess that your question is about the evolution of the occupancy ratio. Again, the Office portfolio with much more tenants is leaving, you have sometimes up, sometimes down, depending at the time where you take the picture. So we have also some divestment again, is it just the portfolio leaving. It's not reflecting a structural deterioration or anything else, but just the portfolio going through its normal life, I would say. And you know that we have seriously upgraded the quality. So now for buyers to buy everything, I think -- not only the upgrade of the quality, but also the refocus on the CBD all assets that make it even as a whole, an attractive portfolio. Charles Boissier: And so if I hear you, then based on your leasing conversation, you wouldn't necessarily expect 2026 occupancy in offices to significantly deteriorate from here? Jean-Pierre Hanin: From what I know today, no. And the CBD remains the best area in Brussels. So -- especially, we are in the best part in the Leopold District, as you know. And today, there is no sign that this would deteriorate. I'm telling you this because we all have in mind what happened a few weeks ago with -- there has been some headwinds some years ago with the -- basically working from home. And then since 2 months, some people saying, with AI, the occupancy will go down. But in all markets, the Brussels market has always been qualified by some international investors as a bit more boring because more resilient, but resilience is also very positive, and we don't see anything related to that coming as we speak. Operator: Our next question comes from the line of Vivien Maquet at Degroof Petercam. Vivien Maquet: A couple of questions on my end. If I may start with the first one on the divestment target. Could you maybe share how much of this EUR 110 million relates to offices because I think that most of it is now under due diligence or has been completed. So I think that you have a good, I would say, idea on the share of Offices. Could you share it? Jean-Pierre Hanin: Yes. Well, as we are only in February, as every year, the allocation between Healthcare and Offices that we have in mind in February might be quite different when we land at the end of the year, especially, as you know, that as far as Offices is concerned, everything is for sale. So to tell you that in EUR 110 million, there is 50% of Offices and DPN, which is more or less what we have in mind. Of course, the Offices divestment could be much more significant. So the guidance about allocation has to be taken with a bit of caution, especially when we are in February. I think around September, then the allocation becomes a bit more relevant. Vivien Maquet: I understand. But if it's on due diligence, I mean, you have -- how much is Offices under due diligence there? Jean-Pierre Hanin: Under due dil, let me give you... Jean Kotarakos: Yes. You have Offices in due dil. Jean-Pierre Hanin: I prefer not to give you the amount because we are talking of, I would say, not small assets. And if I give you an amount where we are still negotiating, we still don't want to basically leak information about how much we have in our accounts compared to the discussion we had. Vivien Maquet: Understand. Then maybe another question on the first disposal you have completed to this date. Was there the nursing home in Brussels. I understand you cannot disclose information on the price, but just wanted to understand a bit the rationale behind it because last year, you mostly sold none in Belgium and here you are selling in Brussels. Was that... Jean-Pierre Hanin: No. We have completed an asset rotation plan based on several criteria, real estate criteria, commercial criteria and then climate and energy intensity. And asset rotation is part of any core business as all business. And we also like to have asset rotation within the healthcare portfolio. And if you look at our track record in the past, it's consistent. So it's nothing more than executed a sound and well studied asset rotation plan. You should not see anything more than that. Vivien Maquet: Okay. And then one last question on Europe, the others. Could you share your view on where we stand for the healthcare in Germany? How do you see the market? Do you see it as bottoming out? And do you see increasing opportunity for you, thanks to increased profitability of the tenants to commit to new projects there? Do you believe it's the right time to look at that market? Jean-Pierre Hanin: Yes, I think you have to make a distinction between standing assets and development project. For development project, given the position of certain developer and so on, operators are thinking again about it and are studying it, but it might still take some months before you see a large portfolio of new assets being constructed. But again, depending on the geographies, we all know that South of Europe is quite dynamic. The U.K. is quite dynamic as well. So I think the overall climate is positive. Certain operators are looking again at growing, not necessarily by owning their real estate, but by looking at consolidation. So clearly, the atmosphere is more positive and more dynamic, especially with the, I would say, sharp need for infrastructure that has been highlighted during the COVID period. So we all know that there is a structural lack of infrastructure, which may differ from one country to the other, which made it a necessity in many of the geographies in Europe. Operator: Our next question comes from the line of Veronique Meertens at Kempen. Veronique Meertens: For me, some questions around the guidance. Maybe as a follow-up on Charles' question. So do I understand correctly that for '26, you do not expect further issues on delayed rental payments from some of these operators? And secondly, on the guidance, could you give some additional color on you being a net investor? Obviously, there's still some CapEx for the pipeline, but what is included in your guidance in terms of the other investments that you pencil in and how big of a share do they have in the rental growth for '26? Jean-Pierre Hanin: Thank you, Veronique. First, on the guidance, remember, last year, the guidance was EUR 620 million, and we ended up with EUR 645 million. And you know us that's basically the way we usually approach things. So the EUR 645 million includes already many of the expectations we have regarding certain operators. So for those situations that are known to us, that's already included in the budget '26 based on the discussion we continue to have. About the investment, well, I think it will depend also about the future combination and how it will be played. You know that basically, we are confined to financing our investment with debt only. And we also want to have our LTV under control. And of course, the coordination with Aedifica is and will be even more important. So there are opportunities on the market. I think that also has been highlighted by Stephan in many occasions. But of course, '26 is a bit of a special year for Cofinimmo in terms of ability to basically harvest as long as the 2 companies have not been completely unified. Veronique Meertens: Of course. No, I understand. But maybe then on those discussions with some of these operators that are struggling, can you elaborate on -- are those discussions around rent levels? Are those discussions around maybe changing to a different operator? Or what are you actually discussing with them? Jean-Pierre Hanin: It's basically not about changing operators. It's understanding to what extent problems outside of healthcare are impacting the healthcare operation. Why? And what are they planned since the healthcare operations are sound, what are they planned to basically solve this issue. It's not related to healthcare. So it's not about ourself finding new operators because the operators or certain houses are in distress. So we are a responsible partner, but there must be a responsible also group. And it's more finding a win-win than any dramatic move (to be continued). Veronique Meertens: Okay. So indeed, so it's not per se worries about the actual rent cover ratios of those specific assets? Jean-Pierre Hanin: No, no, because we -- there has been a discussion, as you know, with [indiscernible] and all landlords in Belgium showed a certain we'd say -- I would say, flexibility to basically ensure the future. And this spirit try to be maintained when they are, I would say, a discussion with operators. Operator: Our next question comes from the line of Steven Boumans at ABN AMRO ODDO BHF. Steven Boumans: So first one is on the -- what is the EUR 12 million loss share in the result of associated companies and joint ventures. Could you give a quick background and especially tell us what we can expect for this line item for '26, please. Jean Kotarakos: Steven, the loss in the associate is mainly strike in the press release. comes from some amount that we had to take regarding the development project in Germany. So it's -- we have published the loss of EUR 8 million in the press release. Steven Boumans: Yes. And is that issue fully gone? So nothing to expect in this line item for '26. Jean Kotarakos: It's a one-off for this year. And normally, we are on the safe side for [indiscernible]. Steven Boumans: Okay, clear. And then maybe on the healthcare investment markets for the potential investments that you see. Could you provide some background on the yields you are seeing? And do you expect to transact those investments and how that compares to, let's say, 6 months or 12 months ago? Jean-Pierre Hanin: Well, I would say 6 and 12 months ago, you had not many transactions. So the few transactions that has been done at that time in terms of yield you could dispute whether they were representative because there has been some, I would say, a very attractive portfolio that has been sold some more. So it's very challenging to say, okay, yields have evolved compared to 12 months ago. I think that what is well appreciated is that the time where money was free with very low interest rate is over. This has been basically translated into the valuation of the various players. So which means that today, you start to see yields that basically reflect this new interest environment, which we believe is there to stay and not to go back to "good old days." We know that there are certain owners that are still dreaming that this come back. The liquidity is coming progressively because you don't have a lot of [indiscernible] seller. If you look at, I think, the larger seller of healthcare assets during the last 2 years has been [indiscernible] and you see the very impressive amount of divestments they have done with them as operators, which in the mind of certain people raise still a question mark, and they have done it at still a good yield. So for me, it's not necessarily that much a big evolution of yield. It's just that basically the dreamer of going back to the 0 interest rate environments are basically almost disappearing. And today, you see here that make more sense concurring this environment that we have today. And corresponding liquidity, more liquidity compared to, I would say, the last 2 years. Steven Boumans: Okay. Clear. And to be [indiscernible] expect from what you see today that the yields on your book value reflect what of the deals that you expect to happen in '26, too. Jean-Pierre Hanin: Yes, I think regarding the valuation, we are comfortable with what is happening today, yes. Operator: [Operator Instructions] Our next question comes from the line of Frederic Renard at Kepler. Frederic Renard: Just a follow-up on the office Polo. I just wanted to know a bit what is the percentage of leasing coming for renegotiation this year? How much have you been able to achieve and at which level of rent? Jean-Pierre Hanin: We need to follow up on that because I don't have the information front of me, there is not a wall of refinancing. And usually, we secure the big chunk, but it should be very marginal. But we will follow up on that with [indiscernible] Frederic to give you more headline on this. Frederic Renard: All right. And then maybe follow-up -- all right. Understood. Maybe just a follow up on the [indiscernible] discussion you mentioned that you were referring to. Just you mentioned that you had a good discussion, but do I understand that actually, you had a discussion already on your facilities and that you actually considered some rent relief. Should I understand that. Jean-Pierre Hanin: Well, basically, there has been -- [indiscernible] has done bilateral discussion with all the vast majority, I would say, of the land lot in Belgium. And the basically focus was to have equal treatment for all of the Belgian landlord. So that was basically the rule of thumb for all this discussion. And to the extent that they were valid argument, the various Belgian landlords have shown temporary flexibility given the global relationship, but also based on recovery plan and measure to be taken by the operators themselves. So basically, the discussion were quite similar in order to ensure equal treatment. Frederic Renard: Okay. And on [indiscernible], remind me, you have also some exposure in Spain, right? Jean-Pierre Hanin: The exposure is very minimal in Spain, but I'm even not. It's -- let me -- now it's in France that we have 2 assets with [indiscernible]. And 2 in Italy, not in Spain. So you are going to a granulometry so I need to verify my note given the asset rotation, but 2 assets in Italy and 2 assets in France. Frederic Renard: And there, the discussion... Jean-Pierre Hanin: The discussion was [indiscernible] period, not [indiscernible]. Operator: Our last question comes from the line of Lynn Hautekeete at KBC. Lynn Hautekeete: I have a follow-up on the healthcare campus in North [indiscernible]. So I'm trying to reconcile the movement on your balance sheet and the cash flows. So on Page 11 in your footnotes. You say that you had EUR 40 million investments in the fourth quarter of EUR 125 million, and that is the net result or a net amount of EUR 56 million and EUR 70 million coming from changes in participations. I'm just wondering that EUR 17 million, what exactly is that figure? Is it CapEx that was supposed to be spent and then did not go out because you sold the participation? Jean Kotarakos: Lynn, I think it's a very detailed question. I can discuss that after the call, if you want. You can reconcile [indiscernible]. Jean-Pierre Hanin: We will give you a full reconciliation, yes, nothing to hide. Because it's -- technically, there are various steps. So it's -- we will give you detail on that. Lynn Hautekeete: Yes, perfect. It's not an easy one. And then maybe second question is on the CapEx of the offices. I was just wondering, is that yielding CapEx? Or is it just part of refurbishments? Jean-Pierre Hanin: Refurbishments, yes. Mostly refurbishments. Lynn Hautekeete: Okay. And then maybe a third one, a quick 1 is on the headroom that you have on your facilities. So that's around EUR 1 billion, and you're not going to replace EUR 270 million of it. Is it possible that, that headroom goes down even further in the future because right now, it's quite expensive to keep the EUR 1 billion. Jean-Pierre Hanin: The future is the combination with Aedifica. So I think we are all waiting that it becomes really to benefit from the combined combination. And you know that the combination will have a positive impact on the cost of capital, including on the abilities basically of our financing and what S&P also has said. So we don't do reasoning on a stand-alone basis for the future, but more on the combined and the news will be good in this respect. Operator: There are no further questions at this time, so I turn the conference back to the speakers for any closing remarks. Jean-Pierre Hanin: Thank you. Well, as usual, I will tell you that we are at your disposal. I think we are all looking at March 2 in our agenda. But in the meantime, if any questions regarding the past, don't hesitate. We have well noticed 2 follow-up that we will do regarding the question that we have raised to date. And of course, we will follow up on that. But if anybody has any other questions, always pleased to answer them. And you know us, you know how to contact and we will follow up. Thank you for your attention, and thank you also for those years of dialogue. This is not the end of the story. There is an exciting operation insight and for sure, the future leader of Europe in healthcare, they will be interesting times. Thank you, and we'll be in touch.
Operator: Good morning, and welcome to Fairfax's 2025 Fourth Quarter Results Conference Call. [Operator Instructions] Today's conference is being recorded. If you have any objections, you may disconnect at this time. Your host for today's call is Peter Clarke with opening remarks from Derek Bulas. Derek, please begin. Derek Bulas: Good morning, and welcome to our call to discuss Fairfax's 2025 year-end results. This call may include forward-looking statements. Actual results may differ perhaps materially from those contained in such forward-looking statements as a result of a variety of uncertainties and risk factors, the most foreseeable of which are set out under risk factors in our base shelf prospectus, which has been filed with Canadian securities regulators and is available on SEDAR+. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements, except as required by applicable securities laws. I'll now turn the call over to our President and COO, Peter Clarke. Peter Clarke: Thank you, Derek. Good morning, and welcome to Fairfax's 2025 Fourth Quarter and Year-End Conference Call. I plan to give you some highlights and then pass the call to Wade Burton, our President and Chief Investment Officer of Hamblin Watsa to comment on investments; and Amy Sherk, our Chief Financial Officer, to provide some additional financial details. 2025 was the best year in our history. We earned $4.8 billion after taxes, the most ever, with record underwriting income of $1.8 billion and record interest and dividend income of $2.6 billion. We also had strong contributions from investments in associates, our noninsurance consolidated investments and net gains on investments. Operating income from our insurance and reinsurance operations on an undiscounted basis and before risk margin was again very strong at $4.6 billion. We have many sources of income, and they all performed very well this year. Our book value per share increased 20.5% adjusted for our $15 dividend to $1,260, up from $1,060 at December 31, 2024, an increase of approximately $200 per share. Last year, we purchased for cancellation just over 1 million shares at an average cost of $1,615 per share. At December 31, 2025, there were 20.9 million shares outstanding. And in the first 6 weeks of 2026, we purchased a further 131,000 shares at an average cost of $1,685 per share. Our insurance and reinsurance companies are in great shape, writing over $33 billion of premium worldwide. We continue to benefit from our scale and diversification through our decentralized insurance operations supported by the deep expertise and long tenure of our presidents and the leadership teams across our insurance and reinsurance businesses. As we have said before, we can see our consolidated operating income for the next number of years at $5 billion, of course, no guarantees, and this consists of $1.5 billion of underwriting profit, interest and dividend income of $2.5 billion and $1 billion income from our associates and noninsurance consolidated income. On February 17, 2026, it was announced Kennedy Wilson entered into a definitive merger agreement pursuant to which they will be acquired in an all-cash transaction by a consortium led by Bill McMorrow, Chairman and Chief Executive Officer of Kennedy Wilson; certain other senior executives and together with Fairfax. Under the merger agreement, the consortium will acquire all outstanding shares of Kennedy Wilson not already owned by members of the consortium for $10.90 per share in cash. The per share purchase price represents a 46% premium to Kennedy Wilson's unaffective share price as of November 4, 2025. The last trading day prior to Kennedy Wilson receiving and publicly disclosing the consortium's proposal. Fairfax has committed to provide the consortium with funding up to an aggregate amount of $1.65 billion, which is the amount necessary to fund the cash purchase price and the redemption of certain preferred shares and other expenses. Bill McMorrow will have effective control and will continue to lead and have ultimate responsibility for the company while Fairfax will have a majority economic interest in the company. The transaction is subject to customary closing conditions, including shareholder approvals and is expected to close in the second quarter of 2026. I will now give you some additional detail on the components of our net earnings for the year. Our investment return for 2025 was outstanding with a return of 9.3%, driven by very stable interest and dividend income and associate earnings and a very strong year on net gains on our equity investments. Consolidated interest and dividend income of $2.6 billion was up $62 million year-over-year, benefiting from a growing investment portfolio offset by lower interest rates and decreased dividend income, primarily from a one-off dividend from Digit Insurance from its IPO in 2024. Net gains on investments of $3.2 billion for the year, we're one of the highest ever in our history, driven by gains on our equity exposures of $3 billion, unrealized gains on our bond portfolio of $385 million, primarily from U.S. treasuries due to the decrease in interest rates during the year, offset by foreign exchange losses of $440 million, much of which was offset by foreign currency translation gains recorded in other comprehensive income. Net gains of $3 billion on our equity and equity-related holdings were driven by realized gains and unrealized mark-to-market gains on investments with our major contributors being our Fairfax TRS, Orla Mining, a position we sold about half of our common shares or 1/4 of our interest including convertibles and warrants in the fourth quarter. Also, contributing with CIB Bank and Metlen Energy. We have always said, and please remember, our net gains or losses on investments only makes sense over the long-term and will fluctuate from quarter-to-quarter or for that matter, year-to-year. More on investments from Wade. As mentioned in previous quarters, our book value per share of $1,260 does not include unrealized gains or losses in our equity accounted investments and our consolidated investments, which are not mark-to-market. At the end of the year, the fair value of these securities is in excess of carrying value by $3.1 billion, an unrealized gain position or $150 per share on a pretax basis. This increased from $1.5 billion or $68 per share last year. In 2025, changes in discount rates resulted in a pretax loss of $59 million, with net gains on bonds of $385 million offset by a loss on net reserves of $444 million. This compares to a pretax loss of $530 million in 2024 with bond losses of $731 million offset by a benefit of $201 million on net reserves. Our insurance and reinsurance businesses wrote $33.3 billion of gross premium in 2025, an all-time high, up 2.3% or $750 million versus 2024. Our North American Insurance segment increased gross premiums by $468 million in 2025 or 5.3%. Crum & Forster had growth of 9.5%, driven by its accident and health business and surplus in specialty lines. Zenith premiums were up 6.5% year-over-year due to positive rate in workers' compensation business, primarily in California, its complementary P&C business and new business in its large account segment. Northbridge's premiums were down 2.6% in Canadian dollars with planned reductions in its personal lines business and in transportation. Their customer retentions continue to remain strong, benefiting from strong customer service. Our global insurer and reinsurer segment, gross premium was up 2.4%, with gross premiums of $17.6 billion in 2025, up $412 million year-over-year. Brit's gross premium was up 3.8% for the year primarily from Brit Re and growth in high-margin classes, including property, financial lines and marine business. On a net basis, Brit's premium was up 4.2% and retaining a greater share of profitable business. Allied World was up 3.3% for the year with gross premiums of $7.4 billion, with each of their operating segments growing with the reinsurance segment up 6.5%, its global markets up 4.7% and North American insurance was up 1%. Odyssey Group's premiums were flat in 2025 with gross written premium of $6.3 billion. Its insurance business was down 4.8% principally from targeted decreases at Hudson in its crop and financial lines of business, while reinsurance was up 3.9%, mainly property business, in the United States, including reinstatement premiums from the California wildfires. Ki, their premium was up 3.8%, primarily on property lines, offset by open market businesses. And our international insurance and reinsurance operations gross premium $6.4 billion in 2025 versus $6.5 billion in 2024. The decline was primarily from Gulf Insurance due to the decrease in health insurance business in its operations in Kuwait. Excluding Gulf Insurance, our international operations premiums were up almost 8%. Fairfax Asia, led by Singapore Re, Colonnade in Eastern Europe, Bryte Insurance in South Africa, our Ukrainian companies, ARX and Universalna and Polish Re all had double-digit growth in the year. A very nice diversified platform that is growing profitably. Our international operations write a significant amount of premium at $6.4 billion. This is bigger than the whole of Fairfax only 15 years ago. We continue to be excited about the prospects for our international operations, and we expect it will be a significant source of growth over time, driven by excellent management teams that are more and more collaborating among themselves and leveraging the strength of Fairfax. On the underwriting front, we had a very strong end to the year with a fourth quarter combined ratio of 88.6% producing an underwriting profit of $753 million. Focusing on the full year, our combined ratio was 93.0% on an undiscounted basis, producing record underwriting profit of $1.8 billion. The combined ratio included catastrophe losses of $1.2 billion, adding 4.8 combined ratio points, primarily from the California wildfires in the first quarter of 2025, Hurricane Melissa in the fourth quarter and other attritional losses. This compares to a combined ratio of 92.7%, underwriting profit of just under $1.8 billion and catastrophe losses up 4.5 points in 2024. As our premium base has expanded and with the benefits of diversification, we expect to be able to absorb significant catastrophe losses within our underlying underwriting profit. For the full year 2025, our global insurers and reinsurers posted a combined ratio of 92.1%, led by Allied World with a combined ratio of 89.3% and an underwriting profit for Allied of $546 million, the largest underwriting profit among all our companies. Odyssey Group had another solid year, producing a combined ratio of 93.8% with underwriting income of $375 million. These results include 11 points of catastrophe losses, primarily from the California wildfire losses in the first quarter of 2025. Of all our company's Odyssey felt the effects of catastrophe losses the most this year, not unexpected. Brit continues to produce excellent results with $183 million of underwriting profit and a third year in a row of sub-95 combined ratio at 92.7%. Ki had a combined ratio of 95.7% with an underwriting profit of $33 million in its first full year reporting as a separate company from Brit. These results were affected by separation costs of 4.4 combined ratio points excluding these nonrecurring costs, the combined ratio would have been in the low 90s, an excellent year for Ki. Our North American insurers had a combined ratio of 93.8% in 2025, very similar to its combined ratio in 2024. Northbridge had the lowest combined ratio of all our major companies with an 88.7% and underwriting income of $238 million. Crum & Forster continues to grow profitably with a combined ratio of 94.8% and an all-time record underwriting profit for them at $236 million. Zenith, our workers' compensation specialist had a combined ratio of 102% managing multiple years of price decreases in that line of business, although now trending in the right direction. Our international operations delivered a combined ratio of 94.7% for the year. Fairfax Asia led the way with a combined ratio of 90.3%, led by Singapore Re, offset by elevated combined ratios at Fairfirst in Srilanka that were affected by Cyclone Ditwah late in the year and Falcon Thailand who suffered 2 major catastrophes in the year. Our operations in South America had an excellent year at 94.5% combined with all its operations producing underwriting profit led by Southbridge in Chile and Fairfax Brazil. Colonnade who write business across Eastern Europe had a great year with underwriting profit of $23 million, more than double the previous year and Polish Re had an excellent year with record underwriting profit and a combined ratio of 94.5%. Bryte in South Africa, for the second year in a row, posted a combined ratio below 95% at 92.2%. Eurolife's non-life operations in Greece had a small underwriting profit at 100.5%, reflecting a very competitive environment, especially in its motor business. And finally, Gulf insurance was back to underwriting profitability in 2025 with a combined ratio of 96.5% and underwriting profit of $53 million. Our international operations diversified across the globe wrote $6.4 billion of gross premium and produced $219 million of underwriting profit. This is a 5x increase over the last 5 years. You can see why we are very excited about our international operations. For the year, our insurance and reinsurance companies recorded favorable reserve development of $752 million or a benefit of 2.9 points on our combined ratio. This is compared to $594 million or the benefit of 2.4 points in 2024. This is the 19th consecutive year our insurance and reinsurance operations have had favorable reserve development, amounting over that time period cumulatively to $6.9 billion. We have a strong reserving philosophy and are focused on setting our ongoing reserves at conservative levels, especially on long tail lines of business. Offsetting this, our runoff operations strengthened reserves by $298 million as part of their annual actuarial reserve process. The strengthening related primarily to latent liabilities due to the continued increases in litigation activity. Through our decentralized operations, our insurance and reinsurance companies continue to thrive writing close to $33 billion in gross premium, producing record underwriting profit and as we've said before, led by our exceptional management team. Our companies are positioned very well to continue capitalizing on their opportunities in their respective markets in 2026. I will now pass the call to Wade Burton, our President and Chief Investment Officer of Hamblin Watsa to comment on our investment. Wade Burton: Thank you, Peter. Good morning. Our investment portfolios ended the quarter at USD 74.9 billion. Of the $74.9 billion, $50 billion was invested in fixed income and $24.9 billion stocks, investment in associates, LPs and preferreds. The $50 billion in fixed income is earning a very nice yield of 5% despite being very short duration and mostly invested in government bonds. We're playing it safe with spreads at lows and uncertainty around inflation numbers, yet earning good money while we do that. We're keeping a close eye on inflation, treasury actions, fed funds rate, GDP growth and corporate profitability, both in the U.S. and globally. If there's one thing our fixed income group has proven is that it has the ability to act quickly when the time is right. It's really a core competitive advantage throughout our investment group. When we feel the time is right, we will act. For now, we're playing it safe in fixed income. All of our top holdings on the $24.9 billion of equity and equity-like investments had good years in 2025. Eurobank, Atlas, Recipe, Fairfax India, Metlen, Sleep Country, EXCO peak achievements are all in great shape, all earning their cost of capital and all beautifully run by people we like and trust. These top holdings are a very large percentage of our equity and equity-like investments and they're making our jobs easy. We've added a new stock to our portfolios. The company is called Under Armour, headed and run by Kevin Plank. Kevin, as a youth was a college level football player and saw an opportunity to make better athletic wear for under equipment. He started Under Armour in his garage in 1996. By 2001, revenues were $50 million, 2005, they were $280 million and in 2017, the company reached $5 billion in sales, profits every year through 2017. 2017 through 2025 were what we would call the lean years. restructuring charges, new CEOs, lawsuits increased SKUs, lower product prices and lower margins. The stock went from as high as in the $50s to as low as in the $4s. Kevin stepped down as CEO in 2020; and finally, took back the role of CEO in 2024. He is refocusing the company on product development, marketing and brand development and reducing SKUs. This is exactly the right plan for the long run. costly and lumpy, and the stock market sometimes doesn't have the patience for that. We can see that they have the balance sheet, the focus and the discipline to turn the company around. And at Fairfax, we focus on the long run. So the lumpiness creates an opportunity for us to take advantage of. With a founder, we are so excited to have running this business. Lastly, you will have seen post year-end 2025 we are taking our long-time partner, Kennedy Wilson Private, buying out minority shareholders at $10.90 a share. Three points on this. One, we have had a long-standing and very profitable relationship with Bill McMorrow, Matt Windisch and the team at Kennedy Wilson from mortgages to LP investments to investments in their shares. Two, Kennedy Wilson has world-class capabilities underwriting real estate. Having this capability in-house at Fairfax has a huge long-term benefit for Fairfax shareholders. Three, the cultural fit between Kennedy Wilson and Fairfax is outstanding. Over the last 16 years, we developed a deep-seated friendship built on respect and openness and striving for excellence, all while treating people well. Overall, 2025 was an outstanding year on the investment side and we are in great shape to weather any coming storms and to take advantage of opportunities. And with that, I will pass it to Amy Sherk, our CFO. Amy Sherk: Thank you, Wade. I'll begin my comments by discussing our noninsurance company results in the fourth quarter and full year of 2025. Noninsurance companies reported an operating income of $101 million in the fourth quarter of 2025 compared to $150 million in the fourth quarter of 2024. Operating income of the noninsurance companies increased to $397 million in the full year of 2025 from $241 million in 2024 despite a primarily noncash impairment charge recorded at Boat Rocker Media of $109 million in 2025 before the company deconsolidated Boat Rocker on August 1. The increase in operating income in 2025 primarily reflected the acquisition of Sleep Country on October 1, 2024, and the consolidation of Peak Achievement on December 20, 2024, which recorded operating income of $92 million and $103 million, respectively, in the full year of 2025. Looking at our share of profit from investments in associates in the first -- in the fourth quarter and full year of 2025, we continue to report strong consolidated share of profit of associates of $252 million in the fourth quarter of 2025 principally related to share of profit of $123 million from Eurobank, $70 million from Poseidon and $34 million from EXCO Resources. In the full year of 2025, consolidated share of profit of associates was $816 million, principally reflecting share of profit of $474 million from Eurobank, $287 million from Poseidon, $55 million from Go Digit and $53 million from EXCO Resources, partially offset by share loss of $65 million from Waterous Fund 3 and $45 million from Fairfax India's investment in Sanmar Chemicals. The decreased share of profit of associates of $816 million in 2025 compared to $956 million in 2024, primarily reflected the company's consolidation of Peak Achievement on December 20, 2024, and its sale of Sigma on March 28, 2025. Peak Achievement and Sigma contributed $57 million and $34 million, respectively, to our share of profit of associates in the full year of 2024. A few comments on our transactions for the quarter. Pursuant to the company's previously announced proposed sale of its Eurolife Life operations to Eurobank, at December 31, 2025, the company had classified assets of $3.4 billion and liabilities of $3.6 billion related to Eurolife Life operations as held for sale in our consolidated balance sheet. The current estimated pretax gain on closing is approximately $350 million. Prior to closing, the company will purchase certain investments held by the Eurolife Life operations which will affect the game ultimately realized on the sale. The proposed transactions are subject to entry into definitive agreements and customary closing conditions and are expected to close in the second quarter of 2026. Subsequent to December 31, 2025, on February 5, 2026, AGT filed an amended and restated preliminary prospectus with Canadian Securities regulatory authorities for a proposed CAD 460 million initial public offering and secondary offering of its common shares of $425 million as a treasury issuance and $35 million in the secondary sale with an expected price range between CAD 26 and CAD 30 per common share. Both Fairfax and AGT's CEO are not selling any common shares in the offering. Subsequent to AGT's initial public offering, the company expects to have directly or indirectly an equity interest in AGT of approximately 51% to 53%. A few words on our IFRS 17 results. The company's consolidated statement of earnings in the fourth quarter and full year of 2025 were also impacted by changes in interest rates and specifically the effects it had on discounting on prior year net losses on claims and our fixed income portfolio. Net earnings of $1.2 billion and $4.8 billion in the fourth quarter and full year of 2025 included a net benefit of only $9 million and a net loss of $59 million, reflecting the effects of changes in interest rates during the quarter and for the full year of 2025. The net benefit in the fourth quarter comprised of a net benefit on insurance contracts and reinsurance contracts held of $42 million and net losses on bonds of $34 million. The net loss for the full year was comprised of a net loss on insurance contracts and reinsurance contracts held of $444 million and net gains on bonds of $385 million. Comparatively, net earnings of $1.2 billion and $3.9 billion in the fourth quarter and full year of 2024 included net losses of $438 million and $530 million, respectively, reflecting the changes -- the effects of changes in interest rates. The net losses in the fourth quarter and full year of 2024 comprised of net losses on bonds of $1.1 billion and $731 million, partially offset by the net benefits of insurance contracts and reinsurance contracts held of $613 million and $201 million, respectively. When you compare the year-over-year change in interest rates on a pretax basis for the quarter and year, the changes resulted in an approximate $446 million and $471 million positive movement in our pretax earnings. This demonstrates our general expectation that our interest rate risk is now partially mitigated. I will close with a few comments on our financial condition. Maintaining an emphasis on financial soundness at December 31, 2025, the company held $2.7 billion of cash and investments at the holding company, had access to our $2 billion unsecured revolving credit facility, an additional $2.2 billion at fair value of investments in associates and consolidated noninsurance companies owned by the holding company. Holding company cash and investments support the company's decentralized structure and enable the company to deploy capital efficiently to its insurance and reinsurance companies. At December 31, 2025, the excess of fair value over carrying value of investments in noninsurance associates and market-traded consolidated noninsurance subsidiaries was $3.1 billion compared to $1.5 billion at December 31, 2024, with $1.4 billion of that increase related to an increase in the publicly traded market price of Eurobank. The pretax excess of $3.1 billion is not reflected in the company's book value per basic share, but is regularly reviewed by management as an indicator of investment performance. The company's total debt to total capital ratio, excluding noninsurance companies, increased to 26.2% at December 31, 2025, compared to 24.8% at December 31, 2024. This primarily reflected increased total debt and redemption of the company's Series E, F, G, H and M preferred shares, partially offset by increased common shareholders' equity. On the redemption of our Canadian dollar-denominated preferred shares in 2025, we recognized a gain of $187 million in equity on the favorable foreign exchange movement. Common shareholders' equity increased by approximately $3.3 billion to $26.3 billion at December 31, up from $23 billion at December 31, 2024, primarily reflecting net earnings attributable to shareholders of Fairfax of $4.8 billion and other comprehensive income of $425 million, primarily related to unrealized foreign currency translation gains net of hedges, as a result of the strengthening of foreign currencies against the U.S. dollar, partially offset by purchases of just over 1 million subordinate voting shares for cancellation for a cash consideration of $1.6 billion or $1,614.69 per share. And payments of common and preferred share dividends totaling $368 million. Subsequent to December 31, 2025, the company has purchased another 130,573 of its subordinate voting shares for cancellation at an aggregate cost of $220 million or $1,684.70 per share. In closing, book value per basic share was $1,260 at December 31, 2025, compared to $1,060 at December 31, 2024, representing an increase per basic share in the full year of 2025 at 20.5% adjusted for our $15 per common share dividend paid in the first quarter. That concludes my remarks, and I will now turn the call back to Peter. Peter Clarke: Thank you, Amy. We are now happy to take any questions that you might have. Denise? Operator: [Operator Instructions] Our first question comes from Stephen Boland with Raymond James. Stephen Boland: Just maybe discussion around some of the premium declines we saw Q4 over Q4 softness, competition within certain business lines? And is there any difference between what you're seeing in North America and the global insurers? Peter Clarke: Sure. Thanks, Stephen. In the fourth quarter, we continue to see softening rates across our companies and that's making it a little more challenging to grow. But as we said in the past, all our companies are focused on underwriting profit and discipline. We have no incentives to grow the top line throughout the group. But we do benefit greatly from our diversified operations by geography and by product. And the wide variety of the markets and segments of our -- that our companies participate in allow us to grow in more attractive areas while curtailing activity and more and less attractive ones. This is a significant strength for us. At a high level, we saw price increases in the low single-digit level with higher price increases in the casualty lines and declines in property, D&O and cyber. The property catastrophe business, especially on the reinsurance side, we are seeing the most pressure on pricing, but again, that's coming from very strong margins. In Canada, in Northbridge, we've seen pricing up about 2% in the year. You may know, we -- the personal lines are probably up closer to 9%, 10%, but that's not a big part of our business. Crum & Forster is about 5.5%. Odyssey with more of their premium coming from the reinsurance side, it's flat to 2% -- and then in Lloyd's, we're seeing probably the most pricing pressure at Brit and Ki pricing is down about 5%. And then Allied World, they're about flat or up 1%. On the international side, it varies across the group. But in a lot of those markets, the pricing tends to be a little less cyclical than in the North American market. But one thing, though, when our pricing -- when pricing levels aren't there, premium isn't growing. This frees up capital for us, and then capital allocation becomes very important. Historically, we have allocated capital very well, and we continue to have many attractive opportunities to deploy it. This includes buying back our own stock, as we've said before, buying minority interest in our own companies or investing as we have been in very good companies, our associates and our noninsurance consolidated companies like a Sleep Country or a Peak. So -- we think we have a lot of great opportunity. As I said, the market, we still see softening. But within Fairfax, we have many different sources of earnings, and we can benefit from that. Operator: Next question comes from Tom MacKinnon with BMO Capital Markets. Tom MacKinnon: I asked this question maybe a little over a year ago, but sort of the tax rate outlook going forward. And the answer I got was between '22 and '25. Now in 2024, it was 24%, but in 2025, it was 18%. So I'll ask the question again about a tax rate outlook going forward and why the -- why was 2025 different than sort of that outlook you provided a little more than a year ago. And what is your outlook for it going forward? Peter Clarke: Yes, there's a lot of activity on the tax side and our tax people in Canada and the United States have been extremely busy you might have known as the Pillar Two tax that has been coming through. And in Canada, we have the EFILE taxes. But Amy, do you want to comment a little bit more on the specifics. Amy Sherk: Sure. Thanks, Peter, and thanks for the question, Tom. We would continue to give the advice that was given last year, which is an appropriate range for our effective tax rate every year going forward. This year, we had something going through that were unique. One of them would be that we had some significant unrealized mark-to-market gains in India. And those gains attract the capital gains rate that is significantly lower than the 26.5% statutory rate here in Canada. So that was a big driver. There has also been a lot of action by domestic governments in terms of introducing their own minimum tax rate. And with that come some tax impact here in Canada when we look at our global minimum tax or Pillar Two tax. So those were really the big drivers this year that lowered our tax rate. But I think the advice provided last year still remains to be true. Peter Clarke: Thanks, Amy. Yes. As you know, Tom, we're right across the world. So it really depends where our earnings come from, and that can affect the ultimate tax rate that we pay. Next question please. Operator: That comes from Bart Dziarski with RBC Capital Markets. Bart Dziarski: Great. And my question, I guess. So your underwriting income for the year was about $1.8 billion. That's 2 years in a row now of $1.8 billion. I know you've got the 1.5-plus guidance. So just how are you thinking about that guidance going forward? I heard your commentary around the softening pricing but we're also seeing your earnings through the cat losses and you've got favorable releases. So putting it all together, I just wanted to your outlook there on the underwriting income guide. Peter Clarke: Sure. Yes. No, we're still -- we still target $1.5 billion of underwriting profit. That's what we're looking for. You're right. In the last 2 years, it's been a little higher than that 1 point -- a little less than $1.8 billion in 2024, a little more than $1.8 billion in 2025. But generally speaking, the cat losses have also been relatively benign or as expected. We haven't had any major catastrophes. With that said, with our premium base the way it is, we are able to absorb significant amount of catastrophes now versus, if you look 10, 15 years ago. But we're just trying to be conservative. We think our reserves are extremely strong. We just came through a hard market. And as I said in my opening remarks, we've had 19 years of favorable reserve development. I think that we have a great process in place for setting our reserves throughout the group. It's all done at the local levels with oversight at the Fairfax holding company and good process in place. So I think the $1.5 billion is a good point. Next question please. Operator: The next question comes from Jaeme Gloyn with National Bank Capital Markets. Jaeme Gloyn: Just wanted to go back to the premium growth discussion and maybe get a little bit more nuance on 2 particular business lines. So one would be the Odyssey Group down in the fourth quarter, 10%. And then the offset would be Crum & Forster, up 27% in the fourth quarter on gross premiums written. Can you sort of dig into those 2? Is this a little bit more as to what was driving some of those results either new business or on nonrenewed accounts, something like that, that could be driving some more outsized performance than just price. Peter Clarke: Sure. And I think when you look at it, if you look at our premium volume by quarter, typically, Jaeme, the fourth quarter is by far the lowest. The first quarter is usually the highest when we write most of our business. So you're coming off a smaller base. So we don't put a lot of -- we don't look a lot on a quarter-to-quarter basis. But for Crum & Forster, premium was up, and it's really on their specialty lines of business, which are less price-sensitive. And in Crum, it's really the A&H division there -- they've been growing. They've -- through Gary McGeddy, they have an outstanding specialty there, and they've been growing not only in the United States, but taking their A&H business internationally. So that's a big driver there. On Odyssey, it would probably -- it's more on the reinsurance side. Again, it's a fourth quarter, not a kind of business is written. It's more 1/1. And so any fluctuations there make the percentage change little emphasize. So I would say those are the 2 main things. Next question, please. Operator: That comes from Daniel Baldini with Oberon Asset Management. Daniel Baldini: Thanks for the wonderful results. So with that said, my question is there any end in sight to these losses from the runoff business? You've disclosed them separately for, I believe, the last 10 years. And when I add them up, it comes to almost $1.6 billion. Now I understand that there are reserves associated with this business, and they produce investment gains. But I can't imagine that when you sort of entered into these deals, you expected losses of this magnitude. So a little bit of color there would be great. Peter Clarke: Sure. Good question. A lot of these liabilities, we inherited through acquisitions back in the late '90s, early 2000s. And they're really latent liabilities. There are asbestos environmental pollution claims. And we have a specialized team that we've segregated these claims, and they're focused on it. We would -- I would say, personally, they're best-in-class. They've been managing these liabilities for a long time. But they're very difficult claims. And as -- in the United States, it's very litigious, and there is continuing, especially on the asbestos front, some of these claims are 30, 40 years old, and we're -- we look at them every year. Typically, you can't use general actuarial techniques to come up with the reserves. So it's a matter of reacting to what happens. Operator: Please stand by. The conference will continue in just 1 moment. We did have a technical issue. Peter Clarke: Hi, Denise. Operator: Yes, sir, you may continue. Thank you. Peter Clarke: Sorry about that. We had a small disconnection, but we're ready to take more questions. Next question please. Operator: The next question comes from David Erb with Merrion Investment Management. David Erb: You have -- Fairfax has roughly $1 billion investment in Fairfax India at current pricing, I believe. And within Fairfax India, roughly half the portfolio is the airport investment BIAL. There's been a little bit of discussion historically about taking BIAL getting in a public listing. And I'm just curious if you could provide an update on that progress. Peter Clarke: Sure. No. I think that's more of a Fairfax India question. But yes, the Bangalore Airport is a significant investment for Fairfax India. And one, obviously, we're very excited about I know they are in the process of having conversations with the regulators and -- but there's not a lot more that I can say on the IPO process. Thank you, though, for the question and next question please. Operator: Next question is from Tom MacKinnon with BMO Capital Markets. Tom MacKinnon: Yes. With respect to the Eurolife transaction, $3.4 billion in assets, I assume then are not part of your general fund anymore. Do I have that correct? And where would we see -- presumably, you're making investments, interest and dividend income on those assets? So where would we see the -- would there be a decline in interest and dividend income going forward with respect to losing those $3.4 billion in assets? And where would that be? Would that be in your interest in dividend income? Or would that be in your -- I'm just trying to figure out what line would that be in your life and runoff business. Where would that show up? Peter Clarke: So the majority of that would be in our life and runoff business. The P&C business is remaining with us. So that's going to continue. And Tom, we're going to get approximately $950 million for the Life business. And eventually, we'll deploy that and that will create earnings off that as well. But generally speaking, yes, it's the interest and dividend income will come off the life and runoff segment. Amy, anything to add? Amy Sherk: The only thing I would add is that held-for-sale accounting means that we just have one line on our balance sheet for the held for sale assets in one line for the held-for-sale liabilities. And we continue to mark-to-market those investments and record any income earned on those investments until the transaction is closed. Peter Clarke: Thank you, Amy, and thank you, Tom. Next question please. Operator: Next question comes from Jaeme Gloyn with National Bank Capital Markets. Jaeme Gloyn: Just wanted to go back to the capital deployment and you mentioned you had capital freed up here with the stock market. So buybacks have been fairly active over Q4 and now year-to-date. So maybe talk through how you're looking at buybacks in the next few months here through 2026. The timing of that minority interest and you can just refresh that? And what does the total return swap, how does that factor into your capital deployment plans? Peter Clarke: Sure. Well, I guess, like I said, with the premiums flattening off, it does produce -- it can produce excess capital at our insurance operations that would produce more dividends up to the holding company. First and foremost, our financial strength that we always said is that's our #1 key, and that's to have significant cash in the holding company. We don't want any long-term -- any debt maturities for the foreseeable future and then our line of credit. So financial strength is #1. Number 2 is, like you said, we've been buying back our own stock at these prices, we think we're pleased to do that. We always look at what the intrinsic value is, and that factors into our capital allocation decision-making. On the Fairfax TRS, we've always said that, that's an investment. We continue to believe it's a very good investment. So we continue to hold that. And buying back Allied and Odyssey, I think, again, both companies, we know very well. They're both performing exceptionally well. So we'd like to do that over time as well. And so those are really the things we're looking at today, always subject to change, of course, Jaeme. But thank you. And next question please. Operator: The next question comes from Bart Dziarski with RBC Capital Markets. Bart Dziarski: Maybe a question for Wade on the investment book. So we're seeing quite a dislocation in markets today. And so are you thinking about maybe shifting some of the positions, taking advantage and being opportunistic in this environment? I'd love to get some color on that. Wade Burton: I guess I would say we have a very robust skilled investment team, and we're constantly looking at all securities. We underwrite for 15%. And as you say, I mean, you're talking about the software and AI, but we're working very hard. And anytime we uncover any opportunities, we will act. So that's what I'd say. We're watching it all very closely, as you can imagine. Peter Clarke: Thank you, Bart. Next question please. Operator: Next question comes from [ Dio Kerathalas ] with a private investor. Unknown Attendee: How are you balancing share repurchases versus holding company liquidity? And what valuation trigger would make you significantly more aggressive on buybacks? Peter Clarke: That's a difficult question. Again, we always -- we discussed it internally all the time. We have many options, right, that with excess capital, with excess dividends coming up. And all I really can say at these prices today, we continue to buy back our stock. We did a significant amount last year. And -- but going forward, things change, and we just -- we are constantly evaluating that and very difficult to put a number on it. But thank you for your question. And we'll take one more question, please. Operator: And the final question does come from Benjamin Graham Sanderson, he's an individual investor. Unknown Attendee: New shareholders still getting aligned with the way you guys think loving it so far. You guys seem like risk of masters and I'm very much enjoying reading back your history and current actions going forward. Question is a very broad one. What currently are the biggest systemic risk you see to the Fairfax system and both in insurance and investments, how are you approaching that to mitigate them? And specifically, how does that relate to the Kennedy Wilson partnership? How does that partnership derisk the system, if at all? Peter Clarke: No. Thank you very much. Yes. No, I think there's -- there's 2 things in this business, and it's the -- we have the insurance operations. And what we've built over the last 40 years, I think is quite substantial, very difficult to replicate. We have essentially 25 separate insurance companies writing $33 billion across the globe. And but -- and some of the best insurance professionals running these companies, on average, our CEOs and Presidents have almost 20 years' experience and that includes last year, we had a succession of 5 separate CEOs that went seamlessly. We always concerned on the insurance side, on the catastrophe exposure, which we monitor constantly and of course, reserves. And again, we have a very strong track record on the reserving side. On the investment side, we've had a long-term track record there. I think the investment philosophy of value investing serves us very well with protection on the downside and that's been a significant strength over time. On Kennedy-Wilson, we're just -- we have a 12-year or 16-year I guess, relationship with Kennedy-Wilson. They've effectively managed our real estate and mortgage business over that time period and has provided us with outstanding returns. And we don't have that capability, at least that size and scale in-house. So we're very excited of what they bring to the table and looking very forward to working with them going forward. So thank you for your question. And if there's no more questions, I'll pass it back to Denise. Operator: That does conclude today's conference call. We appreciate all of you dialing in for this call. Have a wonderful day and weekend. You may disconnect. Thank you. Peter Clarke: Thanks.
Operator: Good morning. Welcome to Megacable's Fourth Quarter 2025 Earnings Conference Call. With us this morning, we have Mr. Enrique Yamuni, CEO; Mr. Raymundo Fernandez, Deputy CEO; and Mr. Luis Zetter, CFO. Let me remind you that the information discussed at today's earnings call may include forward-looking statements on the company's future financial performance and prospects, which are subject to risks and uncertainties. Megacable undertakes no obligation to update or revise any forward-looking statements. I will now turn the call over to Mr. Enrique Yamuni. Sir, you may begin. Enrique Robles: Good morning, everyone, and thank you for joining us today. As we close our 2025, we remain focused on our long-term strategy, expanding and modernizing our network by migrating our base towards fiber, strengthening our value proposition through quality service and competitive pricing, and most importantly, transitioning from a phase of high investment in construction to a period of consolidation, efficiency and stronger cash flow generation. Beyond the numbers, our execution is showing up in places that matter most. We continue to gain share, grow ahead of the market and reinforce Megacable's position as one of the most reliable telecom operations in Mexico while delivering continued revenue growth, margin expansion and a very strong balance sheet. A major driver of our performance over the past quarters has been the scale and pace of our network deployment. When we announced this expansion, it was an ambitious commitment. Today, the results speak for themselves. We successfully took our footprint beyond 19 million homes passed. This milestone matters because it marks the beginning of an intensified consolidation phase, where we will increasingly capture the returns from the footprint we have already deployed. Operationally, we keep solid momentum across both our expansion territories and our legacy footprint. Broadband remains the engine of our portfolio, and we once again closed the quarter within the 100,000 to 150,000 quarterly net adds range we have consistently communicated over the last 2 years. At the same time, we saw a sequentially lower churn, while our ARPU reached one of its highest levels, reflecting the effectiveness of our bundling strategy in driving retention and growth. In parallel, we continue strengthening our fiber footprint, reaching 84% of our subscribers served through fiber technology at the end of the quarter. With this level of penetration, we are firmly positioned as a fiber-based company, with limited legacy technologies remaining only in transition areas. This positions us to deliver superior service quality, higher bandwidth capabilities and a scalable operating platform to meet growing demand for high-speed connectivity. These results were delivered in a market that remains price-sensitive and closely tied to macro conditions, particularly across lower and middle income households. Even so, we continue to compete effectively by combining service quality, competitive pricing and a portfolio that meets evolving customer needs. From a financial perspective, the operational momentum continued to translate into solid top line growth and improving profitability. As you will hear from Luis, the mass market segment again delivered strong performance broadly consistent with what we have seen through the year. While the corporate segment remains softer, resulting in higher single-digit consolidated revenue growth. Profitability also improved, reflecting operating efficiencies and the continued maturation of newer territories. On capital allocation, we closed the year fully aligned with this discipline we're committed to at the start of 2025. CapEx intensity finished below the target we set for the year, representing a meaningful step down versus prior years. This confirms the shift we have been executing from heavy investment towards a more normalized and efficient investment profile. As a result, cash flow generation continued to strengthen, and it remains one of the most important near-term objectives. We are closing the year with a very solid cash flow profile, supported by improving profitability and lower capital intensity. Looking ahead, we are increasingly confident in our ability to convert earnings into sustainable cash generation as we move through to 2026. On the balance sheet, our focus remains on preserving flexibility and maintaining one of the strongest leverage profiles in the industry. This quarter, net debt and leverage ratio continued to trend favorably, and we expect this to remain the case in the coming quarters as profitability improves and CapEx continues to normalize. This reinforces the strength and prudence of our capital structure and supports our long-term strategy without compromising financial stability. The quarter's key message is clear. We are seeing the benefits of the investment made over the last 4 years, not only in subscriber growth and profitability, but also in our ability to deliver what we said we would deliver and more: that track record is important because it builds confidence [ what comes next ]. As we move into 2026, our priorities are clear: consolidate growth in the territories we built, keep advancing our fiber strategy, drive operational efficiency, and above all, maximize free cash flow generation while maintaining our investment-grade profile and executing with the same consistency that has defined this cycle. With that, I will now pass the call over to Raymundo for operational remarks. Please, Raymundo, go ahead. Raymundo Pendones: Thanks, Enrique, and good morning, everyone. During the fourth quarter, our operating efforts remain focused on consolidating both the expansion of our footprint and the ongoing evolution of our network. These initiatives continue to support improvements in service quality and operational efficiency while reinforcing our ability to compete effectively across markets, prioritizing value creation and sustainable subscriber growth. Within this framework, by the end of this quarter, our network infrastructure reached more than 108,000 kilometers, representing 7% annual growth and enabling coverage of 19.2 million homes, a 10% increase year-over-year. Together with the continued migration of legacy infrastructure, these efforts have resulted in 84% of our footprint being served by fiber to the home as of the end of the quarter compared to 75% in fourth quarter 2024. With this level of penetration, Megacable is firmly positioned as a predominantly fiber-based operator, with only a limited portion of its network relying on legacy technologies. Starting with our subscriber base. During fourth quarter 2025, we added 107,000 unique subscribers sequentially, ending the quarter with more than 5.9 million unique subscribers, reflecting continued traction across both our expansion and organic territories. Breaking down the mass segment services, Internet remained the main growth driver. By quarter end, Internet subscribers reached 5.8 million, up 9% year-over-year, or 494,000 net additions. Sequentially, we delivered 133,000 net additions in the quarter, maintaining a clear growth trend and staying in line with our expected range. In Telephony, we ended fourth quarter 2025 with 5.1 million subscribers, up 8% year-over-year, representing 372,000 net additions. Sequentially, we added 56,000 subscribers, in line with the role of Telephony within our bundled value proposition to enhance the overall customer offering. In the same line, our MVNO base reached 679,000 lines at quarter end, representing an annual increase of 23%. We added 39,000 lines sequentially and 125,000 year-over-year, continuing the growth trend we have observed since first quarter 2023 while maintaining the focus on postpaid services. In our Video content segment, we closed the quarter with 4 million unique subscribers comprised of 3.9 million traditional video users and 151,000 apps only users. Both of these services accounted for nearly 2 million active streaming app subscriptions at quarter end, up 99% year-over-year or 990,000 net additions, reflecting subscribers' preference to complement their video service with more than 1 digital app. This consolidated period reflects our strategy to further evolve the content segment into the combination of traditional pay-TV with a more digital integrated offering, increasingly aligned with changing consumption preferences. The continued expansion of our subscriber base translates into an increase in RGUs, which reached nearly 15 million, representing an 8% year-over-year growth. As anticipated, the churn rate declined sequentially this quarter across the 3 mass segment services, reaching 2% for Internet, 2.3% for Video and 2.6% for Telephony. Regarding ARPU, it is important to mention that starting this quarter, we report ARPU based on Internet subscribers, allowing comparison with the rest of the industry. Under this methodology, broadband ARPU stood at MXN 439.8 in this period, while ARPU per unique subscriber was MXN 426.3, one of the highest levels since second quarter 2022, mainly reflecting the price increases implemented during the year. Turning briefly to the corporate segment. Results remained soft during the quarter and continued market caution. While we did some sequential improvement, year-over-year performance remained under pressure, mainly in the corporate and carrier segment. However, we continue to focus on execution, prioritizing service quality, operational efficiency and a disciplined commercial approach. Going forward, as Enrique outlined, our priorities remain consistent: consolidate the expansion and modernization projects already deployed, continue deepening penetration in newer territories, provide the highest quality service to our subscribers and drive cash generation. In parallel, we will maintain a disciplined commercial approach, mindful of the challenges inherent in a highly competitive market and a slower economic growth. Thank you for your attention. I will now turn the call over to Luis for the financial review. Luis Zetter Zermeno: Thank you, Raymundo. Good morning, everyone. Before I begin, I would like to emphasize that all comparisons to 2024 numbers are made against the 2024 audited figures presented on April 29 of 2025. With that context in mind, throughout the year, the disciplined execution of our strategy focused on consolidating new territories and continuing to drive efficiencies across our legacy operations translated into solid revenue growth, healthy profitability and further progress in the soft landing of our investment cycle. In this sense, total revenues reached MXN 9.2 billion during the quarter, an 8% increase year-over-year, driven by robust performance in our mass segment, where revenues grew 10% year-over-year and continued to be our own main source of revenue. This double-digit growth more than offset a 3% contraction in Corporate Telecom segment revenues. Similarly, 2025, total revenues reached MXN 35.4 billion, representing an 8% increase over 2024, following a 10% year-over-year growth in the mass segment, supported by the combined effect of an expanding subscriber base and continued ARPU improvement. Before moving to cost and profitability, I would like to clarify that fourth quarter 2024 figures include specific extraordinary accounting adjustments made during the audit process, particularly the cancellation of account receivables with ALTAN, which increased the cost and SG&A base in that period, consequently affecting positively, EBITDA and net income comparisons made. Now turning to quarterly cost of services and SG&A. This amounted to MXN 2.5 billion and MXN 2.7 billion, respectively, increasing 6% and 1% year-over-year, remaining below revenue growth. For 2025, costs reached MXN 9.6 billion, reflecting a 5% rise compared to 2024, while SG&A totaled MXN 9.9 billion, representing 6% year-over-year growth. These results are mainly attributable to the expansion of our network footprint and higher labor costs, which were partially offset by efficiency gains as newer territories continue to mature. Excluding the receivables write-off effect, total cost and SG&A for the quarter continued to grow at slower pace than revenues, reaffirming the strength and operating discipline of our business. EBITDA totaled MXN 4.5 billion in the quarter, increasing 15% year-over-year with a margin of 44%, favorably compared to 41.3% in the same period of last year, supported by continued efficiency improvements, mainly in new territories. It is important to note that although the EBITDA margin in this quarter is the lowest of the year, this aligns with historical seasonal patterns, as the fourth quarter traditionally records the lowest margin. Following this performance for 2025, EBITDA grew 11% year-over-year, reaching MXN 15.9 billion with a margin of 45%, up 120 basis points compared to the previous year. Excluding the one-off impact of SG&A, quarterly EBITDA increased 8% year-over-year, while full year EBITDA rose 9%. Net income for the quarter was MXN 721 million, increasing 15% sequentially and 74% year-over-year. Likewise, 2025 net income amounted to MXN 2.8 billion, representing 20% growth versus 2024. Our results reflect the strength of our operating performance and an improvement net comprehensive financial results. Quarterly net income, excluding the ALTAN write-off, increased by 33%, while full year growth reached 18%. As we have already mentioned, profitability will strengthen further as depreciation continues to stabilize and the newly integrated regions mature. Turning to the balance sheet. Net debt ended the year at MXN 21.5 billion, decreasing both sequentially and annually. Together with solid EBITDA generation, this contributed to the net debt-to-EBITDA ratio decreasing from 1.45x in third quarter of 2025 and 1.50x in fourth quarter 2024 to 1.35x in this period. Similarly, our interest coverage ratio stands at remaining at healthy levels and providing the flexibility to meet obligations while continuing to execute our long-term strategy with discipline and consistency. As a result, we maintained one of the strongest leverage profiles in the sector, alongside a well-balanced mature structure. CapEx for 2025 remained consistent with our full year investment guidance, closing at MXN 9.1 billion, decreasing from MXN 10.3 billion in 2024, representing 25.9% of total revenue, in line with our objective of 26%. Likewise, CapEx to revenue ratio for the quarter declined from 29.2% in fourth quarter of 2024 to 28.2% in fourth quarter of 2025. This clearly reflects a deceleration versus 2024 levels and reinforces the company transition to a lower investment intensity phase. As the consolidation of investment begins to reflect -- be reflected in the results, cash generation driven from EBITDA minus CapEx, interest and taxes and leases showed strong performance. It rose from MXN 1.75 billion in 2024 to MXN 4.68 billion in 2025, representing 1.6x increase. This progress confirms the effectiveness of the strategy focused on the company's ability to generate sustainable value. Looking ahead to 2026, we will continue balancing profitable growth with discipline and prudent capital allocation. Our priorities remain focused on delivering positive free cash flow, preserving our investment-grade credit profile and further advancing the moderation of recent investment across both expansion and legacy markets while maintaining a lower investment intensity profile. In summary, we closed the year with solid profitability, strong EBITDA performance and improved leverage, all while meeting our CapEx targets. This strengthened operational and financial position will allow us to face future challenges from a solid foundation and generate long-term value for our shareholders. Thank you for your trust. I will now open the floor for questions. Operator: [Operator Instructions] Our first question comes from the line of Marcelo Santos of JPMorgan. Marcelo Santos: I have two questions. The first is like -- about CapEx outlook. So you were below your guidance, a guidance that I must say that was revised down a few times. So what is the outlook for the next couple of years? Could you provide us some color? Should this go down a bit more? Or should it stay at this level? So that's the first question. And the second question is, you made it very clear, generating a lot of cash. That cash is increasing. What is the use of cash? Because I think you are now generating more than the minimum dividend. So what is the decision -- what to do with this cash? Raymundo Pendones: Luis? Luis Zetter Zermeno: Okay. With the CapEx outlook -- Marcelo, thanks for the question, and welcome to the call. And we have been consistently delivering -- and it's consistent with the message that we have established that we are going to be reducing the CapEx to revenues ratio, and that will continue for the future years. Yes, there are some factors that may impact the speed of the reduction, like the -- or the shortage of some chipsets and memories that will impact somehow, the reduction of the ratio. But we are positive on the same outlook. We will continue to have a CapEx for 2026, we estimate between 24% and 26% and going lower than that on 2027. Unknown Executive: Okay. Unknown Executive: No, there was another question. Unknown Executive: Second question. Cash generation. Luis Zetter Zermeno: Cash generation, we have been established generating cash. We have to take in consideration that we have, in 2027, due debt that we have to define with the Board if we are going to reduce the debt or we are going to do something else with the cash generation. We are still analyzing the position, and we will define in the short term, what the strategy should be. But this is a great trouble to have, to define what to do with the cash generation instead of dealing with other type of situations. Operator: Okay. The next question comes from the line of Phani Kanumuri from HSBC. Phani Kumar Kanumuri: My first question is that, as you stated, the market is becoming more competitive and the consumer is weaker. So what is the strategy for your side going forward to maintain the 100,000 to 150,000 net adds? And the second question is that if you look at your net adds, the broadband net adds were higher than the unique net adds this quarter. And I was just trying to understand like, why is that the case? And then why have you shifted your ARPU definition to broadband net adds rather than -- based on broadband net adds rather than unique net adds? Raymundo Pendones: Sure, Phani. Well, our strategy remains focused in both expansion and organic territories. We have a great network. We put investment on the network and the product. We have a great XView product that we are integrating with different apps. So our strategy is to have the much more efficient price placed on the products that we provide to our subscribers, increase bandwidth, as we did in January. We're increasing bandwidth to our subscribers, and we are providing better apps and products to them so they can get in our company, the best service and the best quality. That has, with an aggressive price, proven to drive the growth of this company so far. It is good to mention that we have growth both in organic and expansion or in organic territories. It's not only coming from the new territories we have. So we're not going to move away from what we are doing right, and this is our strategy to have. Regarding the unique and the broadband, that was -- we have a great growth in broadband on that part, that some of them comes with double or triple play. And some of our unique subscribers that is lower on this part is because we are adding broadband to people that have video and video to people to have broadband, in that sense. So we are gaining more RGUs than what we have in unique subscriber. It was a unique position of this quarter. We expect to have very close growth in organic and broadband -- sorry, in unique and broadband subscribers in the future to come. So that will be the answer. Phani Kumar Kanumuri: Yes. And maybe, I mean, just a follow-up on the question. So you had now changing the definition of ARPU based on broadband subscribers rather than unique subscribers. Maybe, what is the logic behind that move? Raymundo Pendones: Yes, we're trying to be more clear to everybody because unique subscriber, it might be confusing, as you are having the question. Sometimes we have much more triple-play service, sometimes double. And sometimes we do campaigns for broadband compared to existing subscribers. The main comparison ARPU in the market is broadband subscribers, which is the majority of the connected homes that we have in the industry. And that's why we are trying to make a much more clear comparison on ARPU regarding other industry players. Operator: Next question comes from Valeria Miranda from [ Jeremi ]. Unknown Analyst: I have two questions, if I may. The first one is regarding the corporate segment. It has been decreasing for the past quarters, given the change in the commercial strategy you mentioned previously. But when do you expect revenue to normalize? And how much would this impact EBITDA? And my second question is given the increased EBITDA and free cash flow generation, coupled with declining net leverage, can we expect an increased payout in relation to EBITDA versus previous years? Raymundo Pendones: Thank you, Valeria. Regarding the corporate segment, yes, we had a tough year, as we say. But that tough year has good positive signs also for us. We changed the way that we commercialize some of the products. So now we have a much more contribution on the profitability of that segment. We were selling a lot of infrastructure on a cash basis. And now the market drives us towards more managed services that recognizes income on time on the future or in a period of time. So we posted a decrease in revenue with a higher margin in that case. And going forward, we expect that to normalize. We pretend to have a much more better year than what we have, trying to recover the levels of what we have in 2024 for that segment. As you know, we integrate and try to migrate the strategy of a connectivity company called Metrocarrier to a much more solution IT infrastructure company called ho1a Innovacion. We are maturing that product, and that's going to the market approach. And we expect 2026 to recover levels as I was saying that. The other one, I don't know, Luis, if you had it? That was right in the third one? Regarding decrease of... Luis Zetter Zermeno: I couldn't get the second one. Raymundo Pendones: Yes, I was trying to finish the first one. Unknown Analyst: Yes. Raymundo Pendones: Can you repeat the second one, please? Unknown Analyst: Yes. Can you hear me? Raymundo Pendones: Yes. Unknown Analyst: Yes. Given the increased EBITDA and free cash flow generation, coupled with the declining net leverage, if we can expect an increased dividend payout in relation to EBITDA versus previous years? Luis Zetter Zermeno: Well, as I mentioned in the previous question, additional generation of cash flow, which is still not defined, where it will go. What is -- our expectation is that it, for sure, will not reduce the dividend payout that has been given by the company. But it's still a definition from the Board. So we expect at least the same approach from previous years. And still to be defined, what the outcome or the use of the additional cash flow will be. Raymundo Pendones: That's the happy problem you were mentioning. Luis Zetter Zermeno: That's a happy problem. Raymundo Pendones: We have always been, Valeria, a very conservative company in that case. We're not -- we don't expect to change our dividend policy that we have right now on that, but we haven't provided a clear idea of what we're going to do in the future with excess of cash. We will talk to the Board on that case and do what's the best for the company and provide a solid balance sheet for whatever it might come in the future, whether to repay, whether to increase dividends or whether to do something else with that. So far, we maintain the same conservative approach that we have in the past. Unknown Analyst: Perfect. Enrique Robles: I would not discard the possibility of increasing our dividend. Because if we don't use -- if we don't find a better use for the cash, we don't see why we shouldn't -- we would not increase the dividend. Not as a consistent or as a change in our policy, but if we don't have a better use for the money, I don't think that the Board would not consider that. I think that the -- it's not -- talking to experts, it's not a good idea to maybe get the company to 0 debt. I don't know if that answers your question. Operator: And the next question comes from Ernesto Gonzalez from Morgan Stanley. Ernesto Gonzalez: It's just on how you're seeing competitive dynamics evolving in Mexico, especially if you could go into what you're seeing in legacy territories and in new territories? It would be great. Raymundo Pendones: Sure, Ernesto. As you all know, we have a very competitive market here in Mexico, and we've been having that for quite some time already. Our strategy is very simple, keep the most efficient company in terms of price approach to cost and EBITDA while being innovative and having the great technology. That's why we put -- almost 85% of the network is already FTTH so we can increase the speeds whenever the market requires that. And we continue to invest in the network so we can increase speeds even if we go above the competition. But it is not only about speed, it's also about the complement of the broadband with other services that we call content -- video content services. That's why when we talk about video, we don't talk only about traditional pay-TV video, but we are adding apps. We normally provide to our subscribers, a combination of apps that makes it very attractive to have content from us. And that's why we have so many RGUs coming from video. As we stand on that, over 2 million apps are already spread among all the subscribers of Megacable. So at the end, we do a combination of great service, good quality, good pricing. We continue to have the best price in the market while we have the best margin in all. And we're not moving to that. It's a very tight execution, and that's where we continue to focus. At the same time, we expect 2026 to make us a slight recovery for the corporate segment. And we will be focused on trying to increase the growth of that unit towards more IT solutions services and not only connectivity. Those are part of the studies that we have internally. Now talking about competition, well, everybody has different positions. Telmex has approached the non-increase of rates that is very similar to what we have right now. And we do compete with them in terms of providing, as I said, more products that we do have. That's how we managed to increase ARPUs slightly, but increase ARPUs while penetrating the market because we were able to sell more bandwidth and products to our existing subscribers. And at the end, when you compare to the other 2 competitors, they all have different particularities. Totalplay has a high ARPU in that part and some financial constraints on that part that make us be more aggressive and flexible towards that company in particular. And then Izzi continues to maintain their HFC approach with some of the -- with their subscribers. So it's going to cost them more to increase bandwidth compared to what we have right now. So we know what competition is tough on that part, but we know what our advantage is to all of them. Even compared to other technologies like broadband, like mobile, fixed mobile that is not done in this market because of -- not capacity from the mobile services and satellite, which is target -- as well as other parts of the world is targeted at a much more higher price and aimed to rural areas and not urban, okay? That's pretty much my vision of the competitive dynamics here in Mexico. Operator: And the next question comes from Lucca Brendim of Bank of America. Lucca Brendim: I have two on my side. The first one, if you could comment a little bit on what do you expect in terms of EBITDA margin going forward, if we should continue to see a similar pace of increase for next year compared to what happened in 2025 versus 2024? And how high do you think margins can go in the long term? And then a second question. Regarding the new regulator in Mexico, have you already seen any difference or something that has impacted the company that we should be aware about with the new regulator? Enrique Robles: About the new regulator -- let me talk about the new regulator. I think the new regulator is taking a very good approach. I think that it's a good surprise for us. We think that they are very much aware of the competitive scenario or landscape in Mexico. And they -- I think they will be a good player, let's put it out this way, in the market. They will -- they are very conscious, I think, and do a good diagnosis of what's needed to get a much better competitive landscape in the market. And the other question was... Luis Zetter Zermeno: EBITDA margins and the expectation for the future. As we have seen, the organic territories has sustained, on a very good levels. Not at the 50% that we had in the past, but 48% to 49%, and is very consistent. And we are also increasing the EBITDA margins on the expansion territories. So our expectation is that the margin overall is going to continue expanding. And we foresee around 50 basis points, which is consistent with the latest years' growth, 50 basis points expansion per year and reaching 47% to 48% by 2028, more or less. Operator: And the next question comes from Pablo Ricalde from Itau. Pablo Ricalde Martinez: I have one question on your pricing strategy for 2026. When do you expect to raise prices? I remember last year, you did the one in March, April, if I'm not mistaken. Just trying to check when do you expect to raise prices this year? Raymundo Pendones: Sure, Pablo. We have 1 price increase already in January that we did. But the way that we do price increases is divided among all the different segments of our subscriber base. Let me explain to you. When you have new subscribers, the price increase comes when the promotional price finish. When you have all subscribers, it comes once a year. Or when you have subscribers that has been having an upgrade or downgrade in the service, the price increase will come when that operator downgrade finish. So it is tough to say what time of the year, but the first that we have was in January, and we may have another one to another subscriber base by the third quarter of this year. Operator: Now we come for another question from Andres Ortiz from BTG. Andres Ortiz: I would like to double tap on the competitive environment. I recently saw that your basic plan now offers 200 megs. I believe you are competing more in speed now, right? So the speed offerings have increased materially over past years. So I just want to understand what's your view on that? And what competition are you seeing? Are they following you? Is it more difficult today to increase ARPU through this view? Or what should we think that? And I will have another question after that. Raymundo Pendones: Thank you for the question, Andres. I will expand on the first explanation I did about the competitive. Yes, we increased speeds to 200 megs. We have a brand-new network. It doesn't require from us, additional CapEx than what we have before. All our network can be upgraded to different speeds, still to our subscribers without requiring that. But it's not only bandwidth, what we are providing to subscribers. As I said, we are increasing the content proposition in terms of apps and trying to maintain the proportion of double to triple play packages. That means video over broadband and telephony. We're one of the highest provider of video in the market. But all of that at a very affordable price that can help us penetrate the market. We do not decrease ARPUs more significantly because we continue to grow from the expansion territories. And when you have a large base of subscribers coming from promotional or promotion prices, they have a lower ARPU. That's why Luis was explaining that we expect also as expansion continues to grow in the future, margins to come to the levels that what we have. Not the 50%, but levels of 47% to 48% in total in the 2 or 3 years to come. That might resume the competitive landscape that we have on the bandwidth. Also remain that our technology, it can be upgraded, not from what we have right now in GPON, XG-PON that we have and we can do in areas, strategic areas where we require for high-end customers. So we're very, very, very strong for the future in terms of bandwidth. And that will also help us to compete with other technologies, whether it's wireless or satellite, in the future to come. Fiber is still the name of the game for broadband, and that's part of our strategy. That's a strong part of our strategy. Andres Ortiz: My follow-up will be exactly on margins. You mentioned that over the long term, 47%, 48% makes sense. That will be for the cable operations, right, not the consolidated business? Luis Zetter Zermeno: No, it will be for the whole company. Raymundo Pendones: It's for the whole company. Operator: Thank you, Andres. At this moment, we don't have more questions in the line, but we have one question from [ David Simon ] from [ Alpha Sydney ]. Can you please discuss the stand-alone streaming app economics and the strategic value to the firm of this offer? Raymundo Pendones: Sure, David. Well, as of today, we try to keep the streaming app strategy tied to our XView platform. We believe it's the best proposition for the subscriber and the best for the organization. So if somebody wants to have a big offer or a good offer on streaming, they have to be part of our XView platform so far. We have some markets and some customers that we can provide to them, single apps to the broadband subscriber. But as of today, we are trying to keep all tied and just provide a single proposition. Whether you want broadband, you have 200 megs. Whether you want broadband with content on that part, you get the best of the XView pay-TV platform, call it that way, plus streaming that is included on that price. And that's the strategy we have so far. Operator: And we have a follow-up from David. Luis, could you explain the expected deferred tax dynamic as CapEx begins to normalize over the next few years? Luis Zetter Zermeno: Sure. Yes, we benefited on the tax levels from the deferred taxes. And we expect a consistent slight reduction over the next few years as he mentions that CapEx is normalizing. So we expect a slight reduction over time. Operator: Okay. We have no more questions. So I'll now pass the call over to Mr. Yamuni for final remarks. Enrique Robles: Okay. Thank you very much. And as always, it's a pleasure to discuss our results with you. Please contact our Investor Relations department if you have any questions or concerns regarding the company. Please -- my -- our -- we're grateful for you -- with you for being in this conference and in the future conference and your interest in the company. As always, we will put our best effort to deliver great results to our shareholders and great results for the communities where we serve. Thank you very much, and have a great weekend. Unknown Executive: Thank you, all.
Operator: Good afternoon, ladies and gentlemen, and welcome to the AngloGold Ashanti Q4 2025 Earnings Release. [Operator Instructions] Please note that this event is being recorded. I will now hand you over to Mr. Stewart Bailey. Please go ahead, sir. Stewart Bailey: Thanks, Judith, and welcome, everybody, to our full year and Q4 results call. As always, Alberto and Gillian will walk through the presentation but you do have other members of our senior leadership team that will be on hand for the Q&A afterwards as needed. I direct you all to the safe harbor statement at the beginning of the presentation, which has got important information regarding forward-looking statements. Without any further ado, I'll hand over to Alberto. Alberto Calderon: Thank you, Stewart, and welcome, everyone. Let's start, as always, with safety. We achieved our lowest ever lowest total recordable injury frequency rate at 0.97, 0.97 injuries per million hours worked. This was the first of a number of records set last year and by far the most important. It is another key milestone on our safety journey, again, outperforming by far the ICMM member average. Our main aim remains to ensure complacency doesn't creep in that we never stop learning from our mistakes and that we are diligent in applying these lessons. This morning, I heard a podcast on our results on AI. They did a great job but one thing that caught my attention, they talked about safety but then they did tie it to the next part of the presentation. Such low levels of safety lead to operational excellence. It means you have more planned maintenance. It means your processing plants are working like they should. You could never achieve the level of operating excellence without operation, the safety statistics that we have. So it is for us our highest priority but it also leads the way to operational excellence. I'm proud to report a strong set of numbers for Q4 and the full year. We set new records in cash flow, earnings and dividend declaration. In the final quarter, we generated free cash flow of more than $1 billion. That's the most ever and more than 3x what we generated in the same quarter last year. As a result, we've declared $875 million to shareholders as a dividend in Q4 alone. What we can control, we continue to control very well. That's clear, especially when you look at our managed operations with higher contribution from Sukari, Obuasi, Siguiri, Geita and Cerro Vanguardia. It's worth highlighting that we also produced 3.7 million ounces of silver at CVSA in Argentina. On the other side of the ledger, we saw lower production from Iduapriem and Sunrise Dam. Obuasi delivered a steady on-plan performance with improvements in recoveries and tonnes treated. Total costs for managed operations were only up 5% on year. This is the fourth year in a row where our cash costs are lower than inflation and royalties. So basically, we have had in real terms, flat cash costs since 2021, the only company in the sector to have been able to achieve that. Cash flow of almost $3 billion was up 204% year-on-year. Adjusted EBITDA grew 129% and headline earnings were up 186%. The balance sheet is in excellent shape. Even after record dividend payments, we were able to turn $567 million of net debt at the end of 2024 to $879 million of net cash at the end of 2025. We have ample liquidity and no material near short-term maturities. We've been clear that shareholders who have patient -- who have been patient through the commodity cycle must see direct benefit from this improved performance. That requires the guardrails of a clear capital allocation framework and a competitive dividend policy. As a reminder, we are 1 year into our new dividend policy. It provides for a set of quarterly payout of $0.125 per share or around $63 million. It also provides for an annual true-up payment, bringing the payout to 50% of free cash flow. In Q2, we took the decision to make an additional payment of $350 million. That takes our Q4 dividend to $875 million and our total payout for 2025 to almost $2 billion. That approach takes us to a net cash zero at the end of 2025. It speaks to the strength of the cash flows from our business and to our confidence in the outlook as we pay out substantially all of the cash we generate this year. I want to emphasize this point because that's always in the questions, what are you going to do? Are you going to be to net cash positive? And I think this is a statement of our confidence in the future but the fact that we bring net cash to 0 at the end of '25. We will see what happens this year. We will see what we do at the end of the next year. But I think that we have set significant precedents in terms of how we deal with quarterly dividends. And I think this is another milestone for us. With Obuasi continued to ramp up our Tier 1 assets now account for more than 70% of production and 80% of reserves. The 2025 results reflect the first full year consolidation of Sukari's operation with a significant impact on both our financial and operating performance. At the same time, our Tier 2 assets continue to deliver strong results with margins well ahead of where our Tier 1 mines were a year ago. A healthy margin and exceptional cash flow leverage are visible across the portfolio, reflecting an active management approach. Completion of the Serra Grande sale on December 1, 2025, will ensure we can further sharpen our focus on the core business. At Obuasi, we delivered what we said we would, producing 266,000 ounces, up 20% year-on-year. The result was supported by our investment in ventilation, material handling and better equipment availability that we're working hard to sustain. It also showed meaningful progress on our technical proof of concept. Underhand drift and fill is working in the high-grade zones and lateral development, which is key to underhand drift and fill is advancing. We were up actually 34% between Q1 of 2025 and Q4 of 2025 in lateral development. And that sets us in a very good stage for our forecast guidance for 2026. We aim to grow production again in 2026 to over 300,000 ounces alongside a commensurate increase in cash flow contribution. Just on the side, this Obuasi produced about $1,300 of free cash flow per ounce in 2025, which was double, for example, what Kibali, our non-managed operation produced in 2025. It's quite a turn of events from what was happening 4 years ago. Sukari is a Tier 1 operation by every measure, record delivery, strong margins and exceptional operational stability. It also has a world-class operating team that has shown itself to be hungry to improve the asset and to benefit from being part of a larger business. They are thriving in a more competitive and supportive environment. 2025 was a record for Sukari, delivering its best ever production and enormous cash flow. In fact, when you look at the net acquisition cost for Centamin after stripping out the sale proceeds for ABC and Doropo, and the cash on the balance sheet, we generated almost 1/3 of the purchase in our first year as owners and the best is yet to come. The integration is fully complete. The full asset potential team has completed its first pass. We have identified a raft of opportunities to increase value from almost every perspective. We see opportunities, the most significant expanding the underground from 1.2 million tonnes moved to 2.3 million on higher grade ore. We just need to develop a new portal and expand the fleet, and we will talk about this in another asset, the impact of the most important idea that wasn't covered in the full asset potential. But there were others, a small heap leach project, improved efficiencies and better recoveries in the plan, just to name a few. From a geological perspective, the ore body is still open with potential to add ounces, and we will be increasing our budget for exploration -- brownfield exploration during 2026. Essentially, there's opportunity wherever we look. While we generated record cash flow, we are aggressively drilling to secure tomorrow. It is worth remembering that we have the industry's top exploration team. They continue to deliver exceptional exploration results across our portfolio, replacing depletion and upgrading resource confidence. This slide breaks down our mineral reserve numbers. We had another very strong return from our brownfield exploration program across a range of assets. We added 10 million new ounces of reserves, more than 3x our depletion. And yes, Nevada added 4.9 million with the first time reserve from Arthur but it wasn't the only one. We also showed a good spread from our operating assets, about 2 more million after depletion with net additions at Geita, Obuasi, Iduapriem, Cuiaba and Kibali. At Geita, which has been a particular focus for us, most of the 1.3 million ounces are in the open pit. Mining is a long-term game, and it's important to zoom out to look at the returns over time. Over the past few years, we've added almost 23 million ounces at an average cost of about $47 an ounce. That value is hard to beat. The holy grail for any gold company is a Tier 1 discovery in a low-risk jurisdiction with long life and strong growth potential. Our Arthur Gold project is just that. What started only a few years ago as an ambitious exploration thesis in the BT district has now evolved into one of the largest and most significant greenfield gold discoveries of this century in the U.S. Today, it transitions from a discovery into a major high-return project. The first-time mineral reserve of 4.9 million ounces is just the top of the iceberg given the much bigger resource in the project area. I probably remind everyone that we complemented our original land position with 3 acquisitions that were very timely from Corvus, Coeur and Augusta, and that really allowed us to consolidate what is probably the most important discovery and land position in Nevada in decades. Let's take a step back and look at the project. Arthur is a fully consolidated district scale opportunity comprising the Merlin and Silicon deposits. It's a large-scale continuous gold system. It features broadly disseminated mineralization alongside high-grade vein system with thickness reaching about 150 meters. The mineralized footprint is extensive, measuring approximately 2.7 kilometers by 1.3 kilometers. The deposit, which is largely oxide is highly amenable to both mining methods and conventional processing. We see a clear geological connection between Merlin and Silicon. There is significant room for continued mineral resource expansion to the west of Merlin and down deep and to the north at Silicon. In fact, Merlin remains completely open to the west and south, and we have a drilling program underway to support further resource exploration. The study envisages a conventional oxide gold mill with carbon and leach. It features a 3-stage crushing circuit with high-pressure grinding roll along with a heap leach circuit for lower grade material. It is as simple as it gets. No autoclaves, no double refractory ore and so many of the others that is common in Nevada. So I'm sorry to say it's just a very simple project. This will be a conventional open pit operation using large-scale equipment. The fleet will include electric rope shovels with 60 cubic meter buckets and ultra-class haul trucks. Our pit phasing is designed to target higher value near surface material early in the mine life to accelerate payback. The width of the ore zones and simple pit geometry will allow for wide mining benches and highly efficient, straightforward mining layouts. Let's look at some of the main highlights of the study, noting that a lot more detail will be available on March 26 when we release our technical report summary. We start with the initial probable mineral reserve of 4.9 million ounces for Merlin, calculated at $1,950 an ounce. That's 88 million tonnes at 1.75 grams per tonne. We expect to produce roughly 4.5 million ounces over an initial 9-year life of mine. Average production is around 0.5 million ounces, though with this edging up towards 800,000 ounces in the early years. We estimate cash cost of around $780 an ounce, all-in sustaining at $950 an ounce. Initial project capital is estimated to be around $3.6 billion, noting that normal margin of error for a PFS stage study. Even using only the initial reserves and at long-term prices, which allows us to make an economic case and to move ahead with permitting, returns at this stage are well north of 20%. Obviously, as we will see in the next slides, the total returns of the project will be much, much higher. When you factor in spot prices, okay, well, obviously, the returns are higher. When you consider the full resource potential, they're higher again. This project has, by almost any measure, the potential to be a defining asset for us and for Southern Nevada because the Merlin reserve is mainly oxide, it avoids the technical complexity and the risk of refractory processing. Crucially, feasibility level environment, hydrological and community baseline studies are already underway. This would be a highly competitive asset even with only the initial reserve and mine life. But while the 4.9 million of reserve is impressive on its own, there's an additional 6.5 million of mineral reserves at Merlin, and we are actively exploring the potential conversion in additional reserves. Actually, we plan for this year to target an additional 1.4 million ounces in line with the online drilling program and then significantly more in the years ahead, both from our defined resource base and from the ongoing exploration campaign in the area, which remains incredibly prospective. And by the way, all of these bubble charts that you see, we wouldn't envision at this stage additional CapEx required. We are essentially drawing from our current record cash flows to invest in a marquee asset to anchor our portfolio well into the 2050s. With that, I will hand over to Gillian to walk through our record financial results and how our robust balance sheet supports this growth. Gillian Doran: Thank you, Alberto. Strong cash conversion was a feature in 2025, ensuring the stronger gold price translated to record free cash flow of $2.9 billion, almost 3x the $956 million generated in 2024. This increase underscores both our improved quality of earnings and stronger operating leverage where the business is converting the better price and operating performance into cash at a significantly higher rate. It also reflects a sustained deliberate focus on cost discipline, working capital management, capital allocation, reinforcing our ability to generate cash through the cycle. In 2025, our cost profile remained under pressure. The tailwind offered by lower energy prices with oil down around 14% year-on-year was offset by realized inflation across our operating footprint. The standout feature of the year, of course, was the step change in gold price, which averaged $3,468 an ounce, a 45% surge over the 2024 average. This change represents a fundamental upward shift from the $1,800 to $2,400 an ounce range we've seen over the last number of years. Production increased 16% year-on-year to 3.1 million ounces in 2025, reflecting solid execution across our core assets. Managed operations were up 19% to 2.8 million ounces, driven mainly by the addition of Sukari and a 20% increase from Obuasi. Geita, CVSA and Siguiri also contributed, and this was partially offset by Iduapriem, Sunrise Dam and the removal of MSG from the portfolio. Cash costs from our managed operations were 5% higher at $1,252 an ounce, mainly due to higher royalties and inflation, both market-driven factors outside of our control. Nonetheless, costs were well contained through disciplined cost management, the benefit from Sukari and the continued delivery of full asset potential initiatives. ASIC for managed operations rose 5% to $1,751 an ounce, reflecting planned reinvestment in sustaining capital, partially offset by higher gold sales. 2025 was a record year, delivering a step change in performance and translating operational execution into record cash generation. Earnings and free cash flow more than doubled, reflecting the 16% increase in production and a 45% increase in gold price. Adjusted EBITDA was up 129% to $6.3 billion and basic earnings of $2.6 billion were up from $1 billion in 2024. We saw a 143% increase in net cash from operating activities to $4.8 billion, even after accounting for higher taxes, flowing from increased profitability. And as previously mentioned, free cash flow was up almost 3x to $2.9 billion, even after funding all CapEx and distributions to our JV partners. Our balance sheet was -- has been well and truly transformed. We entered 2026 with almost $1 billion in net cash, a big turnaround from the $567 million of net debt a year earlier. Our focus is unchanged, maintain discipline, drive operational improvements, maximize cash conversion and ensure high-quality returns through the cycle. Let's have a quick look at our guidance scorecard for 2025. This performance demonstrates the consistency and discipline of our operating model across our 10 assets. We again delivered within guidance on the 2 core benchmarks of reliability, gold production and sustaining capital. While AISC and total cash costs were marginally above the guided range, the variance was driven by higher royalties linked to higher gold price. We successfully managed controllable inputs, maintaining operational delivery and protecting our competitive position despite industry-wide headwinds. Message is straightforward. We delivered on our commitments, stayed disciplined on capital and further strengthened the resilience of our business. We are clear about isolating the controllable elements of our cost base. This transparency allows us to drive better cost performance. In 2025, cash costs were 7% higher at $1,242 an ounce. That increase was driven mainly by market factors outside of our direct control. Inflation, higher gold price-linked royalties, fuel and exchange rates collectively added around $86 an ounce or 7% to that cost base. In addition, the $12 an ounce added by the plant stoppage during Q3 at Siguiri was partially offset by better productivity at Tropicana following the 2024 rainfall event. Our managed operations worked really hard to improve the controllable areas of their cost base. Disciplined execution, operational excellence and the full asset potential program helped to deliver a roughly 1% productivity benefit. This was achieved through higher throughput, better utilization and stronger operating routines. Volumes from Sukari provided another positive tailwind. We remained focused on converting a higher gold price into free cash flow. And in 2025, we did exactly that. We see in the green bars, the price uplift of $3 billion and the higher gold sales volumes of $1 billion. This was primarily from Sukari's inclusion and strong cash flows from Kibali and the ongoing focus on managing our working capital. The result is clear when you look at the improvements in free cash flows. This came despite higher operating costs driven by a combination of higher volumes, inflation royalties, some higher contractor rates and also higher taxes from higher profits. In addition, capital spend stepped up as planned, driven by Sukari's inclusion in the portfolio. Dividends paid to noncontrolling interests were also $517 million higher year-on-year, again, a feature of Sukari's full year inclusion. The net of these factors was a record free cash flow of $2.9 billion in 2025. In 2025, we generated cash flows from operating activities of $4.9 billion. This cash enabled us to reinvest in the business, strengthen the balance sheet, meet obligations to our JV partners and return value to our shareholders. We invested in sustaining capital of $1.1 billion and $459 million in future growth opportunities. $588 million was returned to our noncontrolling joint venture partners and $953 million was used to strengthen the balance sheet as we moved into a net cash position. As Alberto mentioned, we declared an interim dividend of $875 million or USD 1.73 per share for the Q4 2025 period. This payout comprises 50% of free cash flow and an additional amount of $350 million, providing additional direct returns to shareholders and highlighting the continued confidence in the outlook for our operating performance and free cash flow generation in 2026. This takes the total dividends for 2025 to a record $1.8 billion or USD 3.57 per share. At year-end, we had $4.4 billion in liquidity, comprising of $2.9 billion of cash and cash equivalents and the balance of undrawn facilities in our bank accounts. This balance sheet strength has been achieved while investing in safe, stable production, confidently driving projects through our growth pipeline and providing record returns to shareholders. Let me now take you through our 2026 outlook, which is anchored in a portfolio that is performing, supported by a clear operating plan and disciplined value-led investment. For 2026, we are guiding group gold production of between 2.8 million ounces to 3.17 million ounces. Total cash costs for managed operations are estimated to be between $1,335 an ounce to $1,455 an ounce. This reflects a realistic view of the operating and macroeconomic environment with the increase for next year comprising around half in royalties and half from expected inflation and foreign currency exchange movements. The guidance comes in a year characterized by higher material movement across both underground and open pit operations. At the same time, we're investing to further strengthen the business and to unlock value. Sustaining capital for the group is guided at $1 billion to $1.14 billion. Our continued enhancements of and investments in the Sukari operations are anticipated to maintain the sustaining capital expenditure at our managed operations broadly in line with 2025 levels. This is deliberate and value accretive, supporting reliability, improving operational flexibility and advancing full asset potential program initiatives that are expected to drive productivity gains late from late '26 into '27. We are guiding group nonsustaining capital of $785 million to $835 million. In 2026, the key areas are Nevada, additional waste stripping at Sukari and tailings storage facilities at Obuasi and Siguiri, all focused on safeguarding the operating base, creating the flexibility to unlock future production and manage our risks responsibly. Looking into 2027, the continued ramp-up at Obuasi underpins the uplift in production ounces, while unit costs remained flat in real terms, reflecting the benefits of our cost leadership and productivity programs. We are not relying on the gold price to carry performance. We are building structural competitiveness. Capital allocation remains disciplined. We expect sustaining capital to remain broadly consistent with 2025 and 2026 to support safe, stable operations while nonsustaining capital increases as we begin the construction of the North Bullfrog project. This is exactly how we allocate capital, protect and sustain the base, then invest selectively in the highest return growth opportunities, phased prudently, executed rigorously and aligned to long-term value creation. Overall, this guidance reflects a business with strong operational momentum, clear investment priority and continued commitment to cash generation, competitiveness and disciplined growth. I will now pass back to Alberto to dive deeper on our 2026 focus. Alberto Calderon: Thank you, Gillian. 2026 is about disciplined execution. In a strong gold price environment, discipline matters more, not less. Our focus is simple: Protect margins; allocate capital rigorously; and strengthen the portfolio. We remain focused on cost discipline and operational excellence across the portfolio. Through full asset potential, we are systematically looking for ways to offset inflationary pressures and royalty increases, particularly labor, energy and consumables. We are increasing the production contribution for our Tier 1 assets, which structurally lower our cost base and improves margin resilience. Active portfolio management remains core. We've been active in this area, and we'll continue to optimize capital allocation towards assets that generate superior risk-adjusted returns. Sustaining capital is about protecting safety, reliability and asset longevity. We are appropriately capitalizing our assets to ensure safe, stable and sustainable operations. We continue to invest in mineral reserve development to increase operational flexibility, particularly in complex ore bodies. Reserve replacement remains fundamental, sustained reserve growth underpins long-term value creation. Growth capital is focused on high-quality, long-life projects, particularly in Nevada. These projects enhance jurisdictional quality and portfolio resilience. We are creating flexibility for life extension and brownfield growth across the portfolio by building new tailings and opening land to extend our mining operations. We are prioritizing short-cycle, high-return organic projects that strengthen free cash flow generation. Operational excellence alone is not enough. Social and regulatory stability are equally critical. We remain deeply committed to our host communities and governments where we're providing real-time benefit from the higher gold price through taxes, royalties and meaningful participation in the value chain. In this slide, we highlight an emerging picture of low-risk, capital-efficient and very high-return opportunities in our current operation footprint. It underscores what I've said repeatedly that the best opportunities for us lie within the capital we're deploying today is funding low-risk, high-return projects at our current mines. These options have the potential to add between 10% and 15% of our current production profile during the next 3 years. We'll talk much more about this in detail in the second half of the year. As previously mentioned, at Geita, we're advancing a project to lift throughput in the mill and increase production by around 20%. At Sukari, the capital we're spending on accelerated waste stripping and fleet upgrades will underpin a potentially significant mining expansion, coupled with processing improvements like a new gravity circuit and absorption tank to boost recoveries. This will provide a healthy step-up in production. We are seeing similar organic growth across the rest of the portfolio. At Siguiri, we're evaluating the potential to combine some of our existing dormant pits in Block 1 with the ramp-up of production from Block 3 to bring this asset with its exceptional geology into the Tier 1 category. And at Cuiaba, accessing the high-grade Viana ore body is a relatively straightforward opportunity to appreciably improve production. This is what disciplined capital allocation looks like, taking part of our record free cash flow and reinvest in low-risk, high-return opportunities that will optimize the value we can deliver from our world-class ore bodies. All of these growth projects will have a project management office and a VP growth dedicated to these organic projects for the next 3 years. We are prefunding the health and expansion of these assets today, ensuring they remain highly profitable cash generators well into the 2030s. We made steady progress narrowing the rating gap relative to our North American peers. This hasn't been about addressing a single issue, but rather a comprehensive plan over a number of years to strengthen every aspect of the business. Our fundamentals are robust. The portfolio is performing and the outlook is bright. We're delivering on our commitments, achieving consistent operational improvements, enhancing returns and positioning the company for sustainable growth. And importantly, the higher gold price has flowed on to the bottom line. This has generated the highest free cash flow yields in the industry or one of the highest. As you assess our valuation metrics, we believe AngloGold Ashanti represents a compelling investment proposition, as you can see clearly in the graph. Strong cash generation, disciplined shareholder-focused capital allocation, market-leading yield and a valuation that offers clear upside potential. With that, I'll take your questions. Operator: [Operator Instructions] Our first question from the line comes from Adrian Hammond of SBG Securities. Adrian Hammond: I have a few questions. I'll list them in order. Firstly, the payout ratio is obviously welcome, certainly exceeded your current base policy by margin. Given where gold prices are, I get the sense that higher payouts are of the order of the day. But it's -- the question is where does this stop? Because at spot prices, you're going to generate significant amounts of money that you may not have a use for. So should gold prices stay where they are, what should we be modeling in terms of payouts? Is 60% sort of the new benchmark for yourselves at spot? Or should we expect even higher payouts? Secondly, on Slide 28, the organic growth options, I wonder if you can unpick that a bit more clearly. Just to confirm, you're saying 10% growth on your base, so 300,000 ounces. And then correct me if I'm wrong, 100,000 from Geita, I assume that's from 2028, 100,000 from Sukari, when do you expect that? And then, I guess, the balance for Cuiaba and Siguiri? Alberto Calderon: Thank you, Adrian. As always, very good questions, and I probably can answer half of them. So look, the payout ratio, it is one step at a time. We've done it. We -- this is just an indication of how we think about things but I don't want to get ahead of myself. Again, we don't know the gold price where it's going to be. So this is just a commitment that if we have very gold prices, we will do something and we will explain what we're doing with it. So in the end, this is more symbolic. The 300 additional million was just, okay, we're going to get down to net zero at the end of '25. And yes, we'll see what happens. As you know, in -- we have several options in how to deal with capital. So we'll be considering them and you will know of it. What we won't do is tell you every quarter what we're doing with the money. But I don't want to anticipate if the spot at this stage, I would just leave it there. On organic growth, we struggle a bit with saying because we were significantly increasing investment in growth capital. So we wanted to say that. But really, we will come with a very detailed of, as I said, asset by asset. And it's going to be those 4 plus Obuasi. The 10% to 15%, I would calculate it over the 3 million ounces. So yes, that's between 300,000 and 450,000 ounces by the third year. So we will give you lots of detail in this year, I think in the August, that's what we're planning. But we're very excited by this. And as I said, it's going to be Obuasi, it's going to be Sukari. It's going to be Geita, it's going to be Siguiri and it's going to be Cuiaba, relatively low sort of investments. You take Sukari, for example, which is a wonderful job that they did. We're increasing underground sort of movements from 1.2 million to 2.3 million higher grade ore. And hence, we're just planning on this to build an additional platform and obviously, additional mining equipment but we could do it through the same processing plant. And it has an impact of about 100,000 ounces. So I'll give you much more detail as we go through the year. But this is probably the most exciting project we have for 2026. Operator: The next question comes from Josh Wolfson of RBC. Joshua Wolfson: I noted this year, obviously, very positive initial reserve declaration, resources overall stayed stable. With some of the disclosures earlier on the call about reserve conversion of an additional 1.4 million ounces, how are you thinking about further expansion? How are you allocating exploration spending according to that? Alberto Calderon: Okay. Well, I'll answer something, and then we have Marcelo Godoy on the call and I'll ask you to help me. But look, there's always a trade-off. You don't want to go too far advance again on resource. We already have resource for the next 30 years or something like that. So there's always a goldilocks point. And the same with reserves, you needed to find a limit and say, okay, this is where we're going to start. But it's obvious when you see the chart that when we talk about 9 years, it's not going to happen like that. We're going to obviously go very quick. We're going to head to about 800,000 ounces in the second or third year of production. And by then, we will be bringing other ore bodies into reserves and all of that. We do plan to add between 1 million and 1.4 million ounces in 2026. But Marcelo? What else? Marcelo Godoy: Yes. Thanks, Alberto. One thing, when you think about Arthur, you should be thinking about the 12 million tons per year project. And that's what came out of the pre-feasibility study as an optimal size for the project. So any additional addition to the project, you should be using the additional life of mine in your models because that's what the project is really about is continuing increasing the life of the project but continuing to produce 12 million tons per annum. And obviously, there are constraints that made us arrive to that number. As you can see, we have lots of resources to produce at that production rate for multiple decades. and exploration keeps just on giving. And every time we drill, we find more resources, which from -- our focus now is to get the project going and as soon as possible. And that's what the exploration team is focused on. Joshua Wolfson: Got it. And then a question on, I guess, the 2027 guidance. I noticed the company included or disclosed the capital associated with North Bullfrog in 2026. I'm wondering for the 2027 numbers, what's the proportion of capital at North Bullfrog? And then what's the company assuming in terms of the Ghanaian royalty outlook? Is there a change incorporated? Or is it the existing rate? Alberto Calderon: So we're incorporating in North Bullfrog, I think, about $14 million for 2026. I'll get -- Gillian will help me with the rest. We haven't incorporated anything on the Ghanaian royalty. Again, we're having constructive conversations with the government. But at this stage, we will be premature. So Gillian? Gillian Doran: Yes. So thanks, Josh. '27 million North Bullfrog is $320 million, and then we've got about $90 million for Arthur Gold in the guidance as well. Joshua Wolfson: Great. And if I can tuck in one more. Just on the topic of M&A. On the disposition side of things, is CVSA still something that's under consideration? Maybe how are you thinking about that with significantly higher silver prices today? And then on the acquisition side, what's the current thinking? Alberto Calderon: Thank you. Look, CVSA, it wasn't a secret that we were trying to have a sale process. But with gold prices between we started the process and then 6 months later, like everything had changed and silver, everything had changed. And so it just didn't make any sense for anybody nor for the buyer nor for us. The value of the asset, what's going to produce the cash flow in the next 3 years is extraordinary. I have to say the guys over there, it's an extraordinarily good team. There's a standard joke that they're so far away from corporate that they produce -- they're even better because nobody bothers them. So they are very, very good. And they have extended the mine life. We haven't declared it. So I know but they even managed to extend into the 2030. So we're happy owners with them. They do a very good job. And yes, the silver price and gold price for the next time has changed our vision. So we're happy to keep it at this stage. By the way, the government has done an extraordinary job. That was also the issue in the past that we couldn't get the cash flows. Now it's like we're getting the cash flows out, looks like a developed country. Hopefully, Mile will stay there for a while. And then on M&A, what you just heard us on our organic growth. It's -- we have such good opportunities. Obviously, the B team always looks at things but I've said it in the past, it's hard to pay a premium and still add value. Our criteria is always the same, add value, net asset value to the company. And so yes, they still do the job but I would say 99.9% of the company is focused on that organic growth. Operator: The next question comes from Patrick Jones of JPMorgan. Patrick Jones: I appreciate your comments earlier around the predictability of the dividend policy. But obviously, as I said, there's no buybacks this time, but it did make an appearance again in the shareholder return slide. So I guess my question is, what constitutes the comment you gave was around you will consider buybacks and the supportive market conditions there on the slide and what we're going to get the Board to shift its thinking from dividends to buybacks. Alberto Calderon: Okay. Look, we this is something that we reassess. It's part of the book of buybacks, dividends, debt reduction. So this is part of the book. And we always contemplated at this stage, in this case, it was like we have a very good dividend. It's the most generous dividend policy. We're very flattered that several of our colleagues have -- competitors have copied it exactly. So that's a sign of flattery. But at this stage, we're happy where we are. So we'll just take it, as I said, one step at a time. It didn't make any sense for $300 million to do a buyback. So it was clearly a supplementary dividend. We will take it one step at a time, and we will be explaining what we do with the cash in every quarter. Patrick Jones: And maybe just a follow-up question then on Arthur. Obviously, it's shaping up to be an incredibly impressive project. But can you talk through what's kind of the eventual permitting and development timelines, the first output, particularly in light of the comments around North Bullfrog CapEx coming up? Alberto Calderon: So the permitting for Arthur, it's always -- a lot of it is under our control. What we can say is we will seek this FAST Track 41 process, there is incredible support, both from the national government and from the state government. So we have made with the NPO a lot of good progress. And -- but we don't want to give you timelines because it's always so many things out of our control. But we're quite encouraged, as I said, by the support. Marcelo, anything you can add, please? Marcelo Godoy: Yes. Look, we do -- I mean, we don't have exact times at the moment, but what we can tell you is that we want to have the rod before the end of this decade, and we will be producing in the beginning of the next decade. So that's the rough time lines we have at the moment, capitalizing on this fast track process for the NEPA process. Operator: The next question comes from Tanya Jakusconek of Scotiabank. Tanya Jakusconek: Just wanted to start, Gillian, with you, if I could. Just to make sure I understand. So this dividend still the base of $0.125 and the top-up up to 50% of cash flow. Is that now still going to be done quarterly? Or is that top-up still going to happen at the end of the year? It's just we had it quarterly before, and I'm just confused when this top-up happens. Alberto Calderon: So I'll start on that one. Just -- look, the policy is that we pay at the end of the year because the spot price was so high last year. Well, those were the decisions to just say, okay, well, there's a lot of cash accumulated and let's do it by quarter. So I would assume if the spot price stays where it is, probably the Board will consider that again. But the policy is still that we only pay the 50% at the end. So we will take it quarter-by-quarter, Tanya. Tanya Jakusconek: Okay. Fair enough. And just coming back, if I could, to Gillian again on the capital, still on the guidance, you mentioned some big project capital. I guess Nevada, I think, Siguiri, Obuasi. Can you just go through the growth capital, the big chunk for '26 and '27? Gillian Doran: Yes, sure. I think -- so I think it's easier to maybe cover '27 first, given I've already talked about the Nevada element. So there's just over 400 between North Bullfrog and Arthur. We then always have the sort of need to continue to invest in tailings facilities. That takes up an amount across the portfolio. So we've got tailings management at Kibali, Siguiri, Obuasi, Iduapriem, Geita. So absolutely across the portfolio. And then there's some other capitalized open pit waste at Sukari that you're aware of. We talked about it last year. There's a sort of a 3-year stripping campaign for Sukari. I think then if you think about, what does that look like for '26, we have lower than that spend for Nevada, of course, just given where the project phase is. And then you've got the same stripping campaign at Sukari and some investment in tailings and relocation. I think one thing to just mention on that sort of spend, particularly in 2026, it really is required to unlock that reserve growth and the volumes that Alberto spoke about a little earlier on. So maintaining safe tailings facilities and making sure we are relocating communities, et cetera, to be able to unlock that value is a sort of a focus for '26 and beyond. Alberto Calderon: I'd just add quickly. There's $70 million on growth on Kibali, which I think is welcome. I think they're finally facing the gut of facts, and it's good that they're investing in the growth of Kibali. So that is significant. And then yes, the rough numbers in my memory is like $120 million for all these tailings in different projects. It's about $45 million on Cuiaba. That's for the growth project that we talked about before. Nevada is about $145 million. So there, you're up on that would explain a lot of the growth. Tanya Jakusconek: Yes. Okay. Great. And I'm going to have my next question come to Arthur, if I could. And I don't know who would want the maybe Alberto or you Marcelo, may be one of you can just walk us through what you can control, which is the next steps are drilling, then maybe when the feasibility study is coming out. And then obviously, your -- when do you expect to hand in your EIA so that we can understand what you can control. And over this period, Marcelo, do you think we can move the overall resource to 20 million ounces from close to 16 million? Alberto Calderon: Marcelo will help us with this, but just we can't pinpoint. We don't want to commit on timing because it's not in our control. But the rest, I think Marcelo can help you. Marcelo Godoy: Yes. Look, we are going to start the feasibility study in Q2 of this year. So that's where we plan to do that. And the federal permitting is something that we are going to be starting in Q1 2027. That's -- we have control over those dates. Now the end of those process is something that we don't necessarily have control. That's why Alberto is not giving more information on that. Tanya Jakusconek: Yes. No, no, that's fair enough. I mean you control your feasibility study, you control your drilling. I'm just trying to understand what you control, what the time line that you have in place and when you submit the EIA. Marcelo Godoy: Yes. The feasibility study starting in Q2 2026, we intend to be finalizing that in Q4 2027. It's a normal timeline for a feasibility study of that size. Tanya Jakusconek: And then you would hand in your EIA at the end of 2027 as well? Marcelo Godoy: Well, the EIA you can start at the beginning of 2027 because it depends on the mine plan of operations, which is right now under development. So yes, we should be able to start that process in Q1 2027. Tanya Jakusconek: Okay. And anything on the resource drilling over this period? Marcelo Godoy: Look, I think at the end of the day, we want to convert as much as possible, Tanya, and 20 million would be great. But what we need to do now is just to get through the processing because we already have excellent grade and tonnage planning for the first 10 years of the mine. So everything that comes after that, we know it's there, but it's not our highest priority right now. Tanya Jakusconek: No, I appreciate it, Marcelo. Just as a geologist, I look at the sections and the plan view and there's a lot more gold. When are we going to get it? I guess one has to dream. Second -- my last question is actually for Alberto, if I could. Alberto, in sort of your exploration and M&A outlook, we noticed that you keep investing in juniors. Your latest one was in Thesis Gold here in Canada. Maybe talk a little bit about how you're viewing that sort of approach to part of your M&A focus. Alberto Calderon: Well, we have -- fortunately, we have Terry here who leads all of that. So I'll let Terry help us. Terry Briggs: Thank you for picking up the investment in Thesis. We're really excited to work with Ewan and the team there as they advance the Lawyers-Ranch Project. But really, it's quite simple. We take a multipronged approach to growth. Alberto laid out a lot of the organic opportunities within our brownfield sites. We also have greenfields exploration, which led to the Arthur deposit, which is getting a lot of discussion. And we take strategic stakes in interesting projects as well as Alberto said, we continue to assess inorganic opportunities, too. So it's just another tool in our ability to maintain that we can have the most optimal portfolio going into the future. Operator: Our next question comes from Rene Hochreiter of NOAH Capital. Rene Hochreiter: Well done, very good results. Just a quick question. What was the reason for the negative geological model conversion at Geita? And is it likely to be a problem in the future? Alberto Calderon: It was still a negative improvement. Again, I lost our COO because he's taking a plane. So we'll get back to you on that one, but it was still a net improvement. We improved 1.3 million ounces of net addition. Stewart Bailey: And we'll come back to you on the specific answer. Operator: Our next question comes from Joseph Reagor of ROTH Capital Partners. Joseph Reagor: Most of mine have been answered, but just wanted to touch on Arthur. There's been some local opposition from a water standpoint in Nevada projects lately. Do you guys think that, that might have any impact on the decisions you make there? Or is it something you think you can easily mitigate by time of going into production? Alberto Calderon: Look, there's been very constructive discussions that we've had. And actually, from the original project that we had in North, we reformulated significantly, and we have much less use of water. So we've heard and we've dealt with it, there's -- the whole project -- and Marcelo, again, I'll ask him again but there's all sorts of designs to minimize the use of water. But we're quite comfortable at this stage that we're going to be able to deal with all of these issues. But Marcelo... Marcelo Godoy: Look, it is a desert, and we know that water is always going to be an issue but we have been managing. We have a multi-tier process to manage those risks related to water in the project. And we -- as Alberto said, we have very constructive relationship and collaboration right now with the NGOs to get to a common understanding of the water situation in the region. We have very sophisticated hydrogeological models for the region, and we believe that we will be able to overcome those issues. Operator: Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. I will now hand back for closing remarks. Alberto Calderon: Well, thank you again, as always, for accompanying us. Look, we may become a little bit boring. We are predictable. We want to meet guidance. We keep with full asset potential. We don't have a program of the month every year. We'll keep doing that. For us, it's about safe, stable, consistent operations. And now we have a very exciting organic growth project that we'll be sharing with you. And yes, that's about it. We're just going to continue to do what we have been doing for the past years. So thank you all again. Operator: Thank you, sir. Ladies and gentlemen, that concludes this afternoon's event. Thank you for joining us, and you may now disconnect your lines.
Operator: Hello, everyone. Thank you for attending today's iRhythm Holdings, Inc. Q4 2025 Earnings Conference Call. My name is William, and I will be your moderator today. [Operator Instructions] At this time, I would now like to pass the conference over to our host, Stephanie Zhadkevich, Senior Director of Investor Relations with iRhythm. Stephanie? Stephanie Zhadkevich: Thank you all for participating in today's call. Earlier today, iRhythm released financial results for the fourth quarter and full year ended December 31, 2025. Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements. These are based upon our current estimates and various assumptions and reflect management's intentions, beliefs and expectations about future events, strategies, competition, products, operating plans and performance. These statements involve risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Our discussion today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our business performance. These non-GAAP financial measures [indiscernible] and should be read together with the most directly comparable GAAP financial measures. Please refer to the tables in our earnings release and 10-K for a reconciliation of these measures to their most directly comparable GAAP financial measures. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, February 19, 2026. iRhythm disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise. And with that, I'll turn the call over to Quentin Blackford, iRhythm's President and CEO. Quentin Blackford: Thank you, Stephanie. Good afternoon, everyone, and thank you for joining us. I'm pleased to be here with Dan Wilson, our Chief Financial Officer, to discuss our fourth quarter and full year 2025 performance and how we're positioning the company for 2026 and beyond. Dan will walk through our financials shortly, but I want to begin by framing where we stand today and where we're headed. 2025 was a breakout year for iRhythm. We delivered strong volume-led revenue growth and meaningfully expanded margins as we exited the year with momentum across cardiology, primary care, innovative channels and international markets. At the same time, we strengthened the underlying platform that will fuel the next several years of value creation. Growth in the quarter and for the full year continued to be driven by volume across all channels. With growth in the fourth quarter of 27%, this marked our fifth consecutive quarter of revenue growth above 20%, reinforcing the durability of our platform and breadth of our growth drivers. Our leadership in long-term continuous monitoring remains strong with nearly 72% share in a segment growing in the high teens, supported by more than 135 scientific publications to date. On profitability, we also made great progress as we reached a key inflection point, finishing the year with positive free cash flow results for the first time in our company's history and exceeding expectations with respect to adjusted EBITDA margins. In the fourth quarter, adjusted EBITDA margins meaningfully exceeded the 15% goal that we have identified as we approach $1 billion in revenue, demonstrating the profitable scalability of our business. But this year was about more than financial milestones. It is about validating the strategic direction we've set, moving from episodic detection to proactive, integrated and increasingly predictive care. The need for long-term continuous monitoring continues to grow. Arrhythmias remain episodic, often invisible until they cause downstream complications, and they are consistently missed by short duration or symptom-driven diagnostics. Data demonstrates that nearly 65% of all arrhythmias, whether symptomatic or asymptomatic are found after 48 hours of monitoring, reinforcing the need for longer duration. Yet nearly 2 million short duration Holter and event monitors continue to be prescribed in the U.S. market on an annual basis. We estimate that at least 27 million people in the U.S. are living with significant risk of undiagnosed arrhythmias, a staggering and costly gap in care. At the same time, the health care system is constrained. Nearly half of U.S. counties and close to 90% of rural counties have no cardiologists. Access is not improving, which means the point of arrhythmia detection must shift. In 2025, we demonstrated the power of enabling that shift. More than 1/3 of our volume originated in primary care settings, supported by our expanding footprint in integrated delivery networks, EHR integrated workflows and innovative channel partnerships. We now serve approximately 40,000 primary care physicians, creating a scalable proactive care model that aligns with the growing focus on value-based care and population health. This is not a shift away from cardiology. Rather, it expands the market for these important customers as our ability to help rule in and rule out patients can enable cardiology to focus on the highest acuity patients, while primary care becomes an effective front door for earlier detection meeting the majority of our patients where they are most often being seen. Helping to fuel this move upstream is the power of our EHR integration strategy. More than half of our volume now flows through EHR integrated accounts, and 75 of our top 100 customers are fully integrated. These integrations are not simply workflow enhancements, they create meaningful stickiness, increase prescribing consistency and drive long-term account durability. We also advanced our predictive AI capabilities significantly in 2025. With nearly 3 billion hours of curated ECG data, we're now combining internal and external data sets such as claims and EHR information to identify patients at risk of arrhythmias before diagnosis. Early pilots through our partnership with Lucem Health show more than 85% accuracy in pre-identifying patients with clinically relevant arrhythmias. While early, these programs reaffirm our conviction that iRhythm is positioned not just to detect disease but to help predict risk earlier and ultimately to help prevent it. Our initial programs focus on high-risk populations such as patients with diabetes, CKD, CAD, COPD, sleep and heart failure, where arrhythmias are common and costly. These programs are not just about diagnosing more patients, they are focused on doing so in a way that improves the efficiency, quality and cost of care delivery. Zio provides a definitive diagnosis, enabling providers to stratify risk, route patients appropriately and reduce unnecessary downstream health care utilization, resulting in early indications of better patient outcomes and reduced cost of care. As an independent diagnostic provider, iRhythm delivers objective, clinically validated results that integrate directly into existing workflows and care pathways, which helps protect providers and systems in increasingly audit sensitive risk-bearing environments. Within our MCT business, our current Zio AT offering continues to perform exceptionally well, with unit growth running more than twice the company average for the year. The strength continues to be supported by new account wins, expanding utilization within existing accounts and increased prescribing alongside Zio Monitor. This notable and sustained performance even before bringing an exciting new product to market, reinforces our view that Zio AT is a durable growth driver resonating with physicians today and that we will continue to gain market share in the near term. Consistent with our prior comments, we are incredibly excited about our next-gen MCT device, featuring a 21-day wear time, an improved form factor aligned with our Zio Monitor and enhanced algorithms, which is currently under FDA review. We remain in active dialogue with the agency as we work through their questions and continue to expect to release the product in the first half of 2027. We believe the combination of a strong Zio AT offering today and a thoughtfully architected next-generation device sets us up to meaningfully expand our presence in the MCT market, where we hold roughly 15% market share compared to our 72% market share in long-term cardiac monitoring. Every 10 points of market share gains represents roughly $80 million to $100 million of incremental annual revenue. International markets continue to represent a compelling long-term growth opportunity. We are now commercial in the U.K., select EU markets and Japan, markets that collectively conduct over 3 million ambulatory cardiac monitoring tests annually and where iRhythm holds less than 1% share. In the U.K., we delivered our largest quarter of volume ever and we'll be participating in pilots under the NHS Supply Chain's Value-based Procurement Program. In Japan, we are now generating in-country evidence to support future applications to the MHLW for reimbursement reconsideration. Across all regions, our focus remains on disciplined execution, evidence generation and reimbursement progression as we scale these markets thoughtfully. We've also made encouraging progress with our sleep pilots. Early feedback continues to reaffirm the meaningful opportunity ahead as we address long-standing challenges in the sleep diagnostic market. With nearly 40 million sleep apnea patients in the U.S. and significant overlap with arrhythmia populations, we believe we are well positioned to extend our workflow-driven model into this adjacent space as care continues to shift upstream. iRhythm today sits at the intersection of several powerful trends: an aging population, increasing prevalence of arrhythmias, movement toward value-based care and growing demand for proactive health management. We believe the market opportunity ahead is significantly larger than it has historically been viewed and that our platform spanning biosensors, AI and workflow, positions us well to lead that expansion. As we enter 2026, our focus is clear and consistent: one, deliver durable volume-led growth across cardiology, primary care and innovative channels; two, expand margins through sustained operational efficiencies and scale benefits; three, advance platform innovation, including our next-generation MCT and predictive AI; four, scale international and adjacent markets with discipline and rigor; and five, maintain operational excellence and compliance in a rapidly evolving health care environment. With this focus, we are confident in our ability to execute this expansion in a way that creates long-term value for patients, physicians, providers, payers and shareholders. Finally, as the industry grapples with heightened scrutiny around medical documentation practices, including recent attention on chart scraping behaviors, we want to be explicit about our position. iRhythm operates as an independent diagnostic provider with objective clinically validated reports that integrate directly into provider workflows. Our product is prescribed directly by a physician and enables a confirmatory diagnosis. Our processes are designed to support accurate diagnosis while reducing administrative burden and audit exposure for providers and payers. We are an effective tool providing exactly what oversight bodies are asking for in terms of confirmed diagnosis and are excited about the potential tailwinds from the emerging expectations of a more accountable, audit-sensitive environment. Thank you again for joining us today. 2026 marks iRhythm's 20th anniversary and represents a very important year as we aim to become a $1 billion company in 2027, whose truest measures are lives touched, innovations delivered and transformational leadership serving the patients who are counting on us. With that, I'll now turn the call over to Dan to walk through our financial results and outlook. Daniel Wilson: Thank you, Quentin. iRhythm delivered continued strong financial performance in the fourth quarter and full year 2025, reflecting durable demand for iRhythm's Ambulatory Cardiac Monitoring Services and disciplined execution across the organization. We delivered fourth quarter 2025 revenue of $208.9 million representing 27.1% year-over-year growth and full year 2025 revenue of $747.1 million, representing 26.2% growth compared to 2024. Performance was driven primarily by sustained volume demand across our customer base, reflecting continued strength in our core business and contributions from newer growth channels. While volume remains the primary driver of growth, pricing was also favorable for full year 2025 and in the fourth quarter, including improvements with our estimated collections reserves related to our market access, contracting and collection efforts executed throughout 2025. New store growth with new store defined as accounts that have been open for less than 12 months accounted for approximately 68% of our year-over-year volume growth. Home enrollment for Zio Services in the U.S. remained consistent from prior quarters at approximately 23% of volume in the fourth quarter. Moving down the P&L. Gross margin in the fourth quarter was 70.9%, an increase of 90 basis points year-over-year and full year gross margin was 70.6%, an improvement of 170 basis points year-over-year. This sustainable improvement was driven by continued operational efficiencies, including manufacturing automation and workflow optimization as well as scale benefits from higher volumes, partially offset by product mix. Fourth quarter operating expenses were $145.8 million compared to $119.2 million in the prior year period, and operating expenses for the full year 2025 were $584.7 million, an increase of 11.8%. We invested purposefully in the business to fuel near, mid- and long-term growth while delivering strong operating leverage with revenue growing meaningfully faster than operating expenses. On the bottom line, net income for the fourth quarter was $5.6 million or $0.17 per diluted share and was the first positive quarterly net income in iRhythm's history. Net loss for the full year 2025 was $44.6 million or a loss of $1.39 per diluted share. Adjusted EBITDA for the fourth quarter was $34.3 million or 16.4% of revenue, representing a 470 basis point improvement year-over-year and a significant improvement in profitability. Full year adjusted EBITDA was $68.9 million or 9.2% of revenue, representing an improvement of more than 1,000 basis points compared to 2024 and over 500 basis points if normalizing for IP R&D expenses. We generated $14.5 million of free cash flow in the fourth quarter and $34.5 million for the full year, ending 2025 with $583.8 million in cash, cash equivalents and marketable securities and providing us with substantial flexibility to support future growth initiatives. And another milestone for iRhythm, 2025 was the first year of positive adjusted EBITDA and free cash flow in the company's history, a significant result for the company and demonstrative of the profitable growth we are focused on delivering. Looking ahead, we entered 2026 with strong momentum and a solid foundation. For the full year 2026, we expect revenue to be in the range of $870 million to $880 million, representing 16% to 18% year-over-year growth. This outlook reflects sustained demand across our core business while maintaining a disciplined approach to forecasting newer and emerging channels. On a full year basis, we expect pricing to be approximately flat overall to 2025, with revenue growth driven by continued volume growth across core Zio Monitor, Zio AT, innovative channel and international. In the first quarter of 2026, we anticipate revenue to be in the range of $193 million to $195 million, consistent with typical revenue seasonality. For gross margin, we expect the clinical operations and manufacturing efficiencies we've driven will continue to incrementally improve our gross margin profile for the full year of 2026. We believe that these sustainable improvements will continue to lower our cost to serve as we leverage our fixed cost infrastructure over a higher volume of patients overtime and introduce new artificial intelligence and workflow tools. From a profitability standpoint, we expect adjusted EBITDA margin to expand meaningfully to 11.5% to 12.5% of revenue in 2026, reflecting continued gross margin improvement and operating leverage while still investing appropriately in product innovation, commercial initiatives, international expansion and platform capabilities. We continue to anticipate normal seasonality in our adjusted operating expense profile with higher expenses coming through in the earlier half of the year due to spend associated with corporate activities and payroll expenses. For the first quarter of 2026, we anticipate adjusted EBITDA margin to be between 3% and 4% of revenue. And lastly, we expect free cash flow to grow versus 2025 with free cash flow more heavily weighted in the second half of the year due to normal operating seasonality. In closing, we delivered a strong fourth quarter and a transformational year in 2025. We exited the year profitably, free cash flow positive and well positioned to continue scaling the business. Our financial performance reflects the durability of our growth model, the leverage in our operating structure and the discipline with which we are investing for the future. We believe our improving financial profile is supported not only by operating leverage, but also by the growing recognition that our services can reduce downstream health care utilization, which supports durable demand and efficiency-focused care environments. I will now turn the call back to Quentin for closing remarks. Quentin Blackford: The fourth quarter capped an exceptional year for iRhythm. In 2025, we delivered strong top line growth, expanded margins and achieved profitability and free cash flow positivity for the first time in our company's history, all while continuing to invest in innovation and long-term growth. At its core, the challenge in arrhythmia detection remains clear. A reactive symptom-driven approach continues to miss patients. Arrhythmias are episodic, often asymptomatic and frequently undetected by short duration diagnostics, leaving millions undiagnosed and contributing to avoidable downstream events. At the same time, access constraints across the health care system are intensifying. With nearly half of U.S. counties lacking a cardiologist, the point of detection must move upstream. We believe these forces, rising clinical need and constrained access are fundamentally reshaping our market and play directly into iRhythms' strengths. As we enter 2026, our 20th year as a company, we do so with more momentum, scale and strategic clarity than at any point in our history. Looking ahead to 2026, we are confident in our ability to deliver another year of durable volume-led growth while continuing to expand profitability. Our focus remains on disciplined execution, expanding access through primary care and integrated networks, advancing our platform through AI and workflow innovation and investing selectively in product and international growth, all while maintaining financial discipline. We believe iRhythm is still in the early innings of unlocking a market that is far larger than historically recognized, and we are well positioned to lead that expansion in a way that creates long-term value for patients, providers, payers and shareholders. With that, we're now happy to take your questions. Operator: [Operator Instructions] Our first question comes from the line of Joanne Wuensch with Citigroup. Joanne Wuensch: I think part of what has been weighing on the stock is the language around the elimination of chart-derived diagnosis from CMS and what it might mean for Zio use? Could you please address that? And I do have a follow-up. Quentin Blackford: Joanne, thanks for being here. Thanks for the question. Yes, I'd be happy to address that. I think that -- actually, I think there's two issues in and around Medicare to address. One is around the pricing and one is around the chart-derived diagnosis. And I think that Zio frankly fits both of those issues really well in terms of addressing the underlying concerns that might be out there around it. When you think about chart-derived diagnosis, Zio delivers the opportunity to get to a confirmatory diagnosis, which I think is very important. Physicians are prescribing the product. Patients are wearing that product. We're getting a very clear signal from that patient of which we're then able to provide a report that can provide an opportunity for that physician to confirm a diagnosis. And I think that's very important that it ends up integrating into the workflow and the patient records, that are then ultimately reviewed down the line from an audit perspective or any other perspective to confirm, in fact, that there was a diagnosis made. So I think we play very well there. I'm actually very excited by some of the conversations we've had with partners out there who are using the device in that way, and I believe it's going to end up being a nice tailwind for us. At the same time, I think there's some concerns around just the overall pricing direction, maybe pricing not intended to be as much of an increase in the future years is what folks had anticipated. But I think, again, what we're finding in these programs that Zio is being utilized in is that we are, in fact, reducing the cost of care for these patients and that's starting to become very clear to us. I actually think you're going to see some data that's going to get published later this year from some of these innovative channel partners who are able to demonstrate pretty clearly now that they've got a period of time under their belt of using Zio in a proactive way that it's going to demonstrate the cost of caring for these populations is in fact being reduced and coming down. And that's exciting to see. I can't wait to have that data get published and get out there, but I think it addresses the very focus of where health care is going, which is we've got to get the cost of care down and Zio is demonstrating the real ability to do that. So I think both of those have been a bit of an area of concern, and I think Zio and iRhythm itself are positioned incredibly well to address those. Joanne Wuensch: Just as a quick follow-up and a different topic. Did you give guidance for what you think gross and operating margins may look like for 2026? Daniel Wilson: Yes. Joanne, we did give formal guidance for adjusted EBITDA. That was adjusted EBITDA margin of 11.5% to 12.5% for the full year. We also gave guidance there for Q1 of 3% to 4% for Q1 '26. On gross margin, I did comment, we expect incremental improvement relative to 2025, I can tell you we're thinking that in the range of 80 to 100 basis points of improvement relative to 2025. So hopefully, that gets you there for the '26 number. Operator: [Operator Instructions] Our next question comes from the line of Vijay Kumar with Evercore ISI. Vijay Kumar: One on the guidance kind of questions, right? Like, I know there's focus on CMS reimbursement. But I'm wondering, is the CMS proposal perhaps a tailwind if hospitals are doing chart scraping now, are they now being forced to use or should be using Zio Monitors in LTCM patches, right, to avoid chart scraping. So I'm wondering, could this be a tailwind? And along those lines, what are you assuming for international growth in fiscal '26? Quentin Blackford: Yes. Maybe I'll let Dan hit on the international assumption in the guidance. With respect to your first question, in the chart scraping comments and again, having a confirmatory diagnosis that is in the medical records, I think that is something that our partners are very focused on. Again, in the discussions with them, I think that's exactly the path that they're heading down. I'm bullish on what that has the potential to mean for iRhythm and our company. I do think that folks are going to look for ways to continue to button up and bolster sort of their evidence and documentation around anything with particular Medicare focus on it. And so I do think this ends up being a tailwind. At the same time, we did not factor anything into our forward-looking expectations around this at this point in time. I think this is one where we'll let that play out. We'll let that show up in results. And if so, we'll talk about that in a very favorable way. But early indications, early conversations, I feel very bullish around sort of how folks are talking about the way that iRhythm and Zio can be used to address some of these concerns. So we'll see how that plays out, but I'm excited about it. Dan, maybe you want to hit on the international. Daniel Wilson: Yes. Vijay, so your question on international contribution within the 2026 guide. We'll tell you that we have that growing slightly ahead of overall company growth. I would say some upside there potentially, but really just getting started in a number of those markets, 5 of the 6 that we are in were opened, call it, in the last 18 months or so. So would expect the progress we're making in '26 to really show up more meaningfully in terms of contribution as we look to '27 and beyond. Operator: Our next question comes from the line of Allen Gong with JPMorgan. K. Gong: So let me get one. I kind of want to touch on some of the AI concerns that we've seen weighing on some stocks in med tech recently. I think in the past, you've talked about maybe like 20% of the customer base will want to do some of the analysis on their own. And in that case, you're not really able to bill CMS for that analysis portion of the code. But if your providers are more willing to use AI and potentially do some of that more analysis on their own with the help of third-party providers. Is that something that you're concerned about? And how do you address that concern? Quentin Blackford: Thanks, Allen. Look, I think we're all incredibly excited about the prospects of AI and where that can go over the future years. I think at the same time, we've been doing this for 20 years. And frankly, our platform is pretty much a closed platform. But I think what sets us apart and continues to give me confidence that we're going to have success in this area is that it's more than just a software capability. It's more than just an AI capability. It starts with the data. The AI is only as good as the data coming into it. And we have very specific purpose-built hardware that allows us to capture very clean ECG data, having a clean signal is very important. If you're starting to bring together disparate data sets, ECG data sets that are very unique and different and marked in different ways. I think it's hard for that AI to truly be specific and as good as what iRhythm is able to generate and provide. You also have to keep in mind, we operate in a very highly regulated space where each of these algorithms require FDA clearance. And that clearance takes years and years of clinical validation. It takes real-world evidence, things that are measured in time frames of years, not months or quarters. There's work to be done in and around reimbursement and workflow as well that become major barriers. You look at our past. We've done the work to establish the CPT codes. We've got CMS coverage in place, national coverage decisions. We've got commercial payer contracts that are in place and importantly, I think, deep EHR integrations. Physicians don't just simply adopt algorithms and they're not going to just simply bolt on a bunch of AI algorithmic capabilities onto their existing platforms. It has to fit within their workflow. And I think that's something that we continue to build out and have a tremendous focus on. We've commented on this in the past. Over half of our volumes flow through integrated systems with our customers. And I think that ends up being a very important aspect of how AI will continue to get introduced into the future. And then just given the size, and we've got 13 million patients, we've got 3 billion hours. That data set is growing incredibly fast, which is going to give us the ability to stay ahead from an AI perspective. So I feel really good about our opportunity to continue to have success here and protect the business but also grow it really, really well and frankly, even take advantage of the platform that we have, where we can drop in other AI capabilities as we go into the future that I think allows us to be unique and differentiated. So I like our position here, and I feel good about it, and I think we're in a unique spot here. Operator: Our next question comes from the line of Richard Newitter with Truist. Richard Newitter: I wanted to just ask on MCT. I know it sounds like that's going to -- you guys are committing -- or recommitting to that coming commercial in the first half '27. Good to hear that. I guess, Quentin, can you just run through what exactly you need to do to get that over the finish line? At the JPMorgan conference, you talked through some enhancements and feature sets that you're going to integrate into it. Can you just remind us what those are, what's involved there and the confidence in the time lines here? Quentin Blackford: Yes. Look, nobody is more excited about MCT than we are. I can tell you that as well as our commercial team and even our customers. I think we're in a great spot right now. Clearly, Zio AT is performing incredibly well. I think it's demonstrating the ability to be very sustainable and durable in terms of its growth profile. We're now over a year of growth with that product line that is more than twice the rate of our total company. And in Q4, it was up sequentially another 10%. So the momentum in AT affords us to make some decisions in and around MCT that are in the right path for the long-term outcomes of the company versus the short-term speed to market. There are some things we could do to bring it to market faster, but frankly, it's not the right thing to do. And this is a category that's evolved quite a bit over the last 2 years with the FDA in terms of their expectations as well as future expectations, including even a new category code that was created within the last couple of years as well. And so I think we understand with the FDA where the future expectations are going. And one of the most notable improvements that we need to make or changes that we need to make to our MCT submission, frankly, is getting to a mobile gateway, moving away from our old gateway that's been out there for well over a decade and going ahead and making that move to a mobile gateway today, is important. That's something that we're in discussions with the FDA on right now in terms of how to update the submission. And so we're moving down that pathway and MCT will come to market with a new gateway. We continue to feel confident in that first half of '27 time frame, and that's the right way to think about it. Excitingly, it's going to get our duration out beyond 14 days, get us to 21 days. It's going to have an enhanced algorithmic capability with it as well. With the mobile gateway, it's actually going to improve the patient's interaction and experience quite a bit, which is exciting to see as well. So better cost economics, better cost profile, better impact on gross margin over time. These are all things that are in the right long-term health of our business, and we're fortunate to be in a position where we can make those decisions versus speed to market. So feel good about it. We're excited to get MCT to market, and we're just working with the FDA now on the best way to get that done. Operator: Our next question comes from the line of Brandon Vazquez with William Blair. Brandon Vazquez: Maybe, Dan, for you, I wanted to go back to guidance real quick. I think you used the phrase disciplined approach to forecasting when you gave the guidance update. Maybe just talk to us a little bit about what that means, what is, what isn't embedded? What are the risks and opportunities as you think about the 2026 guidance frame that you gave us? Daniel Wilson: Yes. Thanks, Brandon, for the question. So maybe we'll just start. No change to kind of our philosophy on guidance. We want to be thoughtful. We want to put something out there that we're confident that we can deliver. And as you've heard us talk about a few times now, leave some of the upside opportunities out of the guide that ultimately, if they do play through, we'll be happy and can overdeliver on that initial guidance. In terms of kind of the different areas of contribution within that guidance, maybe starting with core U.S. monitor continue to -- that continues to fuel the majority of our growth from an absolute dollar standpoint. We're growing in line with the market, if not a bit faster than the market. We're seeing primary care continue to expand the opportunity and then certainly a large remaining opportunity to continue to shift share away from legacy technology. So feel really good about kind of the durable growth there. That was a source of upside in '25, the core U.S. monitor that there's an opportunity for that in '26 as well. With Zio AT, you heard Quentin talk about the momentum and the strength that we're seeing there. Certainly an opportunity to continue to grow our share of that segment, right, from the 15% we are today. And we're really winning kind of alongside Zio Monitor and winning kind of as a full platform. So really encouraged what we're seeing with AT. In '25, you did hear Quentin comment, AT was growing essentially double the company average. That isn't what was contemplated in the '26 guidance, really think about AT growing a bit ahead of overall company growth, but below that double company average that we saw in 2025. And then the last component I mentioned -- I talked about international earlier, the last component being innovation -- innovative channel. So continue to expect that to remain the fastest-growing channel. What's baked into guidance is really just an incremental step-up from the run rate that we saw exiting 2025. So the run rate in Q4. If you were to annualize that, that gets you to the majority of what we've contemplated in guidance and continue to feel good about delivering that. Certainly, some upside in that channel. It's a newer part of our business, a little bit less visibility than the core business. So we want to be really thoughtful around what we bake in the guidance there. We did have some incremental partners come in, in Q4 and Q1, which puts us in a really good position to continue to grow that part of the business. So hopefully, that helps and kind of deconstruct the '26 guidance. Operator: Our next question comes from the line of Marie Thibault with BTIG. Marie Thibault: Just wanted to follow up on that question about guidance and try to see if we could learn a little bit more about what's being included in that outlook for the partnerships. I wonder if you could just tell us a little bit more about the number of partners you now have that you're working with? How many might be scaling up this year after pilots last year? Just any more detail? I know it's always a focus of interest for us. Daniel Wilson: Yes. Thank you, Marie. So I would say we -- as I just mentioned, we continue to add partners to that part of the business, the innovative channel business. I will tell you it will start to blur -- has started to blur with the core part of our business as these partners are monitoring both symptomatic and asymptomatic patients. So in terms of the number of absolute partners, we're likely not to give that kind of quarter-to-quarter, but I did mention, we've added incremental partners both in Q4 and the early part of Q1. So I feel good about where that business is headed. It's early. It's an emerging part of our business. So as we think about setting up guidance, really want to make sure we're not getting ahead of ourselves there. Operator: Our next question comes from the line of Nathan Treybeck with Wells Fargo. Nathan Treybeck: So Quentin, just kind of as you mentioned, in this quarter, you were operating income positive. You hit 16% EBITDA margin at an annualized revenue that's below $1 billion. I guess, one when can we expect you to refresh your LRP targets? And it seems like there could be pretty significant upside to those LRP targets considering that you still have remediation costs in your cost base. And Dan, just on the OpEx, it came in considerably below my forecast. I just want to understand what's going on there? And how should we think about OpEx in '26? Quentin Blackford: Yes. Maybe I'll hit on the $1 billion and the long-range plan. I think as we get close to that in '27, certainly, Nathan, we'll take a look at refreshing what that looks like further out into the future. But look, we're going to deliver on what we said we were going to do. And as we get close to doing that, then that's going to make the right sort of sense in terms of time to reset some expectations. I do feel very good about it. You think back 4 years ago, almost when we set that expectation, certainly, a lot of things played out very differently than what we anticipated. We thought we would have had the MCT product here, frankly, a couple of years ago. But to see the way the team has been able to really drive the core business, and what we've seen in our core monitor business, what we've opened up in the innovative channel partners, what we are seeing in that MCT category, even without -- what we think is a much better product than the new MCT offering, we know that, that market share property is real. What we're validating in our sleep pilots gives us confidence that sleep is going to be a nice contributor to us well out into the future. And so I am very excited by where the company can go and the position that we're in. But I think for the time being, let's get to the $1 billion in '27, and then we'll start to think about how we reset those expectations further out. On the profitability side, I'll let Dan speak to it, but he's done a terrific job driving the team and just identifying where those levers are at in our company. I think we've got great confidence on how we drive into the 15%, and then we know we can go beyond that, but I'll let him speak a little bit more to that. Daniel Wilson: Yes. Thanks for the question, Nathan. So I'd say the formula for Q4 and 2026 are kind of consistent. Driving efficiencies within gross margin and G&A while reinvesting back into the business, both for commercial initiatives and -- as well as a number of the innovation efforts that we're focused on. So we always try to set up a balanced plan where we're driving efficiencies, really looking at gross margin. You heard my comments about gross margin stepping up incrementally in 2026. And then within OpEx, certainly, continuing to drive leverage within that G&A line. And that's leveraging our global footprint, leveraging the global business services center that we have stood up now for the last few years. There's a number of G&A functions that are fixed and won't need to scale with volume. And then certainly, FDA remediation, as you noted, as that moderates overtime, that will be a nice source of leverage for us as well. And then we look at that and then decide what should be reinvested back into the business, both from a sales and marketing standpoint and an R&D standpoint. And look to have a balanced plan that is ultimately driving to deliver long-term value for shareholders. Nathan Treybeck: If I could just follow up with one more. Just on chart scraping, I guess how do you expect a potential tailwind could unfold? Would it be a directive from regulators to do confirmatory diagnoses or would it be more self-driven by the providers? And then just beyond the potential near-term tailwind, are you hearing any concerns from your customers that have high Medicare Advantage populations that continuing asymptomatic screening could be risky for them? Quentin Blackford: No. I would say, certainly not on the latter part of that question. As a matter of fact, in the discussions we're having with customers, and I sat with one just about 2 weeks ago, who's been a terrific partner of ours, they're expanding their program even further. Just they're starting to see real cost data accumulate now that their program has been in place for over a year that is demonstrating very clearly that they are able to reduce the cost of caring for these populations. So they'll end up, I believe, expanding that population, and that's going to be a nice opportunity for us, but I think it's indicative of even where the future of more of these partners end up heading. So I'm excited by where that goes. I think your specific question on chart scraping, I expect it's going to be much more of a self-driven behavior and change in maybe approach of some of these folks from the past. I think that they want to have the confirmatory records in the patient records, having a Zio report there that demonstrates very clearly where an arrhythmia is present or not is something that bolsters their own documentation. And from the discussions we've had, I expect this will be a tailwind for us. But again, our approach has always been around these sort of things, let them play out. As they do play out as we learn more, then we can speak more about them and even roll them into forward-looking expectations when the time is right. But I think the majority of this from what I can tell and what I expect is probably more of a self-driven change in behavior is what I would anticipate. Operator: Our next question comes from the line of David Rescott with Baird. David Rescott: Great. Congrats on all the progress in '25. Dan, you mentioned that pricing was favorable in 2025. I think you pointed to improvements in the estimated collections of reserves that were a factor there. So wondering if you could maybe just unpack exactly what's going on in that front? And when you think about 2026, I think you called out pricing as being relatively flat this year. I believe there is an uplift broadly in the reimburse rate from Medicare this year and '26. So can you help us understand maybe why pricing should be flat this year relative to the Medicare uplift and then relative to some of the pricing comments you made for 2025? Daniel Wilson: Yes. Thanks, Dave. Happy to take those questions. I maybe start -- we did start out 2025 with guidance, expecting price to be down low single digits for the year. Ultimately, the year did come in call it, up low single digits. So we were able to overdeliver on the price expectations or guidance that we gave for 2025. A few things behind that. Certainly, product mix was a portion of that. But as noted in that Q4 price benefit, we book a net revenue amount that is an estimate of what we expect to ultimately collect. And that's gross revenue less contractual allowance. As we go through the collection cycle, we're comparing actual collections versus what was estimated and we true up our estimate kind of as appropriate. And that's what we saw in the fourth quarter. Our collections were running ahead of our estimates. And so we had a true-up of, call it, low single-digit millions in the quarter. It is onetime in the quarter, but I would say the performance of our market access teams, our payer contracting, our revenue cycle operations, that performance certainly should sustain and give us a really solid foundation as we think about price in '26 and beyond. We're not going to factor that into guidance just yet, but certainly a good tailwind for us. You did comment on the Medicare rates being up in 2026. That is specific to Zio Monitor to long-term continuous monitoring. Medicare overall is 25% of our business. As you know, in the MCT category for AT, Medicare rates are slightly down year-over-year in 2026. But as you put it all together, mix, channel mix, product mix, the right way to set up the year for 2026 is ultimately price being flat relative to 2025. If we can overdeliver on that, great, like we did in 2025, but we want to set up the year kind of in an appropriate way. Operator: Our next question comes from the line of Michael Polark with Wolfe Research. Michael Polark: I want to better understand the mobile gateway comment for next-gen MCT. How is this different than the existing gateway? Is this an app on a patient's own smartphone? Is that the illusion? Or does mobile gateway mean something different? Any color would be welcome. Quentin Blackford: Yes. Mike, thanks for that question. I'm glad you asked it so that we could clarify. The initial version of the mobile gateway will essentially be a smart device, but it will be locked in to where it only communicates directly with our Zio AT product. So we will provide that each and every time that the Zio -- new Zio MCT product is shipped and delivered to a patient, and they'll use that as a way for the Zio MCT product to communicate through that gateway. But it will be locked with the potential to have a Zio app included on it. But it will not be on their own smart device. I think that a future iteration of the product, you certainly can see us moving to a patient's own smartphone. That has some other complications with it that need to be worked through. But certainly, you see that in other marketplaces. I think back to the days of CGM and Dexcom, certainly, we ended up going down that pathway. But that will not be the first path that we had down here with Zio MCT. It will be a locked smartphone capability only to be utilized with the Zio MCT product. Operator: Our next question comes from the line of David Saxon with Needham. David Saxon: I had a follow-up on the innovative channel just around when the right time is to start engaging those partners around repeat monitoring. Is that something you can standardize either across the channel or partner by partner? And -- I mean, you guys are good at generating data. So like is there any data you have internally that shows there is some value to monitoring after a certain period of time? Quentin Blackford: Yes, I think it's a great question. And to be honest with you, I think with every one of these channel partners, the discussion is a little bit unique and different to their own practices. Some will talk about repeat testing every 12 months, others will talk about it every 3 years. I do think, for the most part, everybody is talking about some sort of repeat testing, but what the frequency looks like is just too early to identify just yet. I think that importantly, once you get to a confirmatory diagnosis and you start to treat that patient, you're going to want to make sure that, that arrhythmia is either being addressed or if it's reappeared, you're going to want to know that, which naturally leads into why there would be repeat testing here. At the same time, I think that the further we go into this, payers are understanding sort of the cost benefit associated with these monitoring programs. And I think that annual monitoring, annual patching is something that you could see start to be used from a risk perspective to identify how they even think about pricing their programs with their patient population. So there's a lot of reasons to see this move towards more of an annual sort of monitoring program, but it's still too early to speak to exactly how that's going to play out. But those are discussions that are being had, and I think there will be some aspect to annual monitoring in these partner programs. Operator: Our next question comes from the line of Suraj Kalia with Oppenheimer. Suraj Kalia: Quentin and Dan, congrats on a great quarter. Can you hear me all right? Quentin Blackford: Yes, we got you. Suraj Kalia: Perfect. So Quentin, many calls going on. Forgive me if you've already talked about this. Our math suggests you guys grew Zio AT, roughly around 30% or higher clip. When you look at the bridge device or the gateway device for Zio AT, I understand in past conversations there have been comments about like there were some concerns about -- patient concerns about the bridge device, hence this shift to cellular for the Zio MCT product, hence this delay, right? More specifically, Quentin, can you tell us what was the challenge with the bridge device? Because so far, unless my math is wrong, you guys have still navigated very effectively growing at 30% clip and 15% or close thereof MCT shared. Hopefully, you got my question, Quentin. Quentin Blackford: Yes, I got it, Suraj. And thank you for the question. Just to clarify on AT and just to speak to the strength of that product, and I put this in our prepared remarks as well. It's growing at more than twice the rate of the overall company average. So for the year, our Zio AT product actually grew north of 50%. I think that's important to note just demonstrating the success in that MCT category that we're having with a product that we know will be enhanced with the new Zio MCT offering. So our momentum there is incredibly strong. To Dan's point earlier, we did not set up our guidance that way for 2026. But if you look at the last 5 quarters, we've demonstrated the ability to grow that at nearly twice the overall rate of our company. So we're bullish on the category for sure, and we're excited by it. When you think about the mobile gateway, as we were working through this with the FDA, there were some questions around cybersecurity that were certainly going to require us to design some incremental capabilities into our old gateway if we were going to address those questions. And the challenge with that was that, we knew we were going to have to move to a new gateway at some point in the future. And rather than take the time today to design those incremental cybersecurity features and capability into the old gateway only to obsolete it in the next round of future innovation that we would introduce after this MCT product, we made the decision to go ahead and just bring it right into a new mobile gateway that addresses the cybersecurity concern. So this is all around making the right decisions for the long-term health of the business. We know that we can address these. We see a clear path to getting a product approval. But it does take us to a mobile gateway sooner than what we had expected, and that requires a bit of time there. So that's contemplated in all of the timelines that we've put out there, but getting to the new mobile gateway is going to address those concerns around the cybersecurity aspect that we would have had to have done in the old gateway. It just doesn't make sense to really spend the time, effort, resources, putting it into something that we knew was going to be obsoleted. Operator: Our next question comes from the line of David Roman with Goldman Sachs. David Roman: Maybe you could talk a little bit more about the referral channel within the innovative partners and the extent to which you're seeing consumer-based devices drive patients into that channel, maybe the degree to which some of the false positives that come off of those devices are actually increasing testing volume? And then maybe if you can tie that back to some of the AI questions you got earlier, maybe it would help just complete the picture a little bit about how to think about the implications. Quentin Blackford: Yes. Look, it's an interesting question because I think if you look across our business, there's no question that wearable devices, forget just the innovative channel partners. Just in general, wearable devices have tended to be a pretty good lead generator for our company, meaning that folks or patients show up in their clinicians' office with a wearable device indicating maybe there's an arrhythmia or something there that needs to be monitored. And ultimately, a Zio gets prescribed for that patient and they get to the fact that they can get a real confirmed diagnosis. And so wearables have been a terrific lead generator for us. But you look at these innovative channel partners, whether it's a wearable or not. And quite honestly, I don't see the wearables sort of leading patients into these programs. These are programs with our innovative channel partners that they're very particular around who they're going to monitor. You think about our Lucem AI capabilities where we're identifying patient populations proactively by looking through medical records where we can say, look, we have a pretty good idea and belief that, that patient likely has an arrhythmia and then you get a patch on that patient. And those accuracy rates have been as high as 90% in these early trials. But every one of these partners are typically profiling a population within their coverage universe, whether it's a comorbid disease, state of diabetes, COPD, CKD, sleep, you can go down the list. They're putting a patch on those patients to get to a confirmed diagnosis. That is what they're looking for. And in the case, if [indiscernible] is something that is part of their model, they want that confirmed diagnosis, documented diagnosis in their records as further support. And so I don't see the wearables as being something that's really driving the innovative channel partners at this point in time. I do think it's been a nice lead generator for us in the past, but these innovative channel partners are pretty particular around the populations that they're targeting and going after. And then what I'm encouraged by, and I think you'll see this data later this year, you're going to see some really compelling cost reduction capabilities coming out of these programs that, frankly, is allowing us to expand the programs within these channel partners. So excited about what we're seeing. But I don't think wearables are necessarily driving innovative channel partners. I don't think wearables address what the channel partners are after. Frankly, they want an accurate confirmed diagnosis, and that's something that Zio provides, and they're leaning-in to us for that. Operator: Our next question comes from the line of Stephanie Piazzola with Bank of America. Stephanie Piazzola: I wanted to follow up on the innovative channel partnerships and how the 2026 guide includes a step-up in the '25 exit rate? And just any help on how to think about what that exit rate was? I think, volume from innovative partners had been low single digits, but stepping up each quarter. So did that trend continue in Q4? And is it still around low single digits or more in mid-single-digit range? And any other help in how to think about the step-up factored into 2026? Daniel Wilson: Yes. Stephanie, good question there. So innovative channel partner, I would continue to point to low single digits as a percentage of overall business. We did see that trend positively upward as we were going through 2025. My comments on exit rate, if you took revenue from innovative channel in Q4 and annualize that, that's essentially -- or gets you a good amount of what we have contemplated in guidance. And then also mentioned, we have had new partners come on board in both Q4 and Q1. So feel good about that base of business continuing to grow. I'll reiterate though, that is an emerging part of our business. The visibility there isn't as great as it is in our core business. Each of our partners are unique in terms of how quickly they ramp their business, the patients that they're proactively monitoring. And so for all those reasons, we want to be thoughtful. We want to make sure we don't get ahead of ourselves. But really excited about what that business can contribute in 2026, both from a guidance standpoint as well as potentially upside. Operator: Our last question comes from the line of John Young with Canaccord Genuity. John Young: I wanted to ask on Epic Aura accounts. I don't think it was discussed. Was that the 75 number that you provided in the prepared remarks? And any commentary on volume improvements that you're seeing from Aura? And is that embedded in the core company guidance expectations for 2026? Or is that another source of potential upside? Quentin Blackford: Yes. Good question. Epic continues to be a terrific partner for us and one that we continue to be excited about. Just to be clear, when I mentioned the top 75 of 100, that's all integrated systems, not just Epic systems. So just to be clear, it's across all EHR platforms, but Epic is a big part of that. Epic itself continues to perform incredibly well. I will tell you, we had a record number of Epic integrations performed in the fourth quarter. We're on pace to set another record in the first quarter of this year. So it's growing quite nicely, and the pipeline is incredibly strong, and that's going to continue to play out over the course of the year. We know that when we get integrated with these folks, our data would tell us 6 months post integration, we see roughly a 25% increase in overall prescribing volume. We're not setting up our guidance that way. Again, I think we like to be thoughtful on those things and let some of those play through before we would factor all that into guidance. But the Epic partnership and the integrations associated with it have been going very, very well and I would say, ahead of plan. And we're bullish on what Q1 and the rest of this year is going to look like. Operator: Thank you. At this time, I would now like to pass the call back over to the management team for any closing remarks. Quentin Blackford: Well, thank you. As we close, I just want to take a moment to thank the iRhythm employees around the globe. The progress that we shared today, the strong growth, expanding profitability, the increasing impact that we're making on patients, it's only made possible by their dedication, the expertise and the relentless focus that they demonstrate each and every day on doing the right thing for our patients and our customers. It's their work ethic, it's their commitment that continues to set us apart, especially as we operate in an increasingly complex environment. And as I think ahead of entering into our 20th year, I couldn't be more proud of the team and more confident in what we're going to accomplish together. And I just want to put a big shout out to the team. Congratulations on all you've done and look forward to the future. Thank you to the folks that are on the call today. I look forward to seeing all of you guys in the near future and look forward to a great 2026. Thank you. Operator: Thank you. That will conclude today's call. Thank you for your participation. You may now disconnect your lines.
Operator: Welcome to Mirvac Group's First Half 2026 Results Briefing. [Operator Instructions] Please be advised that today's conference is being recorded. It's now my pleasure to hand over to Mirvac's CEO and Managing Director, Campbell Hanan. Campbell Hanan: Well, good morning, everyone, and welcome to our half year results call. Joining me is Courtenay Smith; Richard Seddon; Scott Mosely; and Stuart Penklis. I'd like to begin by acknowledging that we present today from Gadigal land, and I'd like to pay my respects to elders past and present. At our full year results in August, we spoke about the momentum that was building across the business. So it's pleasing to present our results today having delivered a strong half year performance and even greater visibility of earnings growth in FY '26 and beyond. What you'll notice in these results is a material pickup in residential sales in both build-to-sell and land lease, like-for-like income growth in all of our asset classes, positive leasing spreads in all of our asset classes, and valuation growth in all of our asset classes. You will also notice that we've made significant inroads in securing future development pipeline opportunities beyond FY '28. And we have continued our strong track record of capital partnering, completing a major 50% joint venture with Mitsubishi Estate at Harbourside, a key objective at the start of the year. We've recapitalized our LIV BTR fund with Australian Retirement Trust, positioning the fund for growth. And we've completed a $430 million capital raise within MWOF. It's been a very busy start to the financial year. You can see the solid progress across all parts of the business with every business unit contributing to the 10% growth in group EBIT. EPS was up 5% and NTA growth has returned, increasing $0.04 to $2.30 per security. It's also pleasing to see headline gearing moderate to 25.8%. We are also executing against our key strategic objectives. Two years ago, we outlined a focus on enhancing the quality and cash flow resilience of our investment portfolio, and we've made excellent progress with our industrial and living EBIT up 15% year-on-year. Our office portfolio allocation has reduced from 65% to 51% today. And importantly, we've almost doubled our exposure to premium-grade assets over the past 6 years to now sit at 60%. Premium grade is the most resilient asset type in office, and this is reflected in our consistently lower vacancy rate. Our repositioned portfolio is now delivering strong operating metrics. As mentioned, each asset class has positive re-leasing spreads, positive like-for-like rent growth and positive valuation growth led by build-to-rent, which illustrates our confidence in the growing capital demand for this asset class. We have a strategic objective to be the leader in the living sector, and we've made excellent progress here. We now have one of the largest operational BTR portfolios in Australia and recent development completions are leasing well. The fund's recapitalization will support future growth with 2 new BTR projects identified. Our growing land lease portfolio secured another 2 sites, bringing the platform to over 7,500 lots, with sales in the first half up 50%. This is becoming an increasingly important part of our strategy and provides future opportunity to accelerate our MPC business. And our creation capability is a key differentiator, and we're unlocking value and improving returns with residential sales up 38%, margins increasing to 22.5% and positive leasing in all of our developments. The execution of these initiatives is providing enhanced visibility of earnings growth in FY '26 and beyond. Our existing investment portfolio continues to grow its earnings contribution with a further $100 million of future NOI currently in production to be realized over the next 3 to 4 years. We also have additional NOI to be realized from our land lease and uncommitted commercial development pipeline. Our committed developments will also drive a $2.3 billion increase in our funds under management across our established growth platforms as they complete, generating new recurring management fee streams, with further fund growth to come from the deployment of recently raised capital across MWOF and further expansion of our LIV BTR fund. Our commercial development pipeline will unlock development profits and development management fees in coming years, along with NTA gains as the projects complete. Our residential growth outlook is supported by a significant step-up in active MPC projects, where we expect to move from 11 communities last year to 16 over the next 12 to 18 months and a step-up in apartment completions on normalized margins. This year, 2 new MPC projects have had their first releases with near sellouts of both. Our recent restocking initiatives support the next wave of value creation opportunities beyond 2028. Sustainability remains important to our business. With 80% of the largest corporate tenants having net zero targets in place, we remain focused on reaching our net zero goals by 2030. This month, we launched our first ever integrated Mirvac brand campaign, which you may have seen at the start of today's webcast. This campaign highlights our amazing brand and celebrates our imagination as our unique competitive advantage. We've been keeping our brand a secret for too long, and this campaign will make sure that we share that story more broadly to raise awareness and enhance value across the group. I also want to call out our recent efforts in learning and development with the continued rollout of our Mirvac Masters program. This is a series of university-style modules across development, asset management and investment management that have been accredited by the University of Sydney. This investment in our people has been recognized as the best learning and development program in Australia. Our employee engagement has returned to top quartile and is an important reflection of our culture and ability to attain and attract talent. With that, I'll now hand over to Courtenay to talk through our financial results. Courtenay Smith: Thank you, Campbell, and good morning, everyone. Today, we're pleased to share financial results that reflect the effective execution of our strategy with increased contributions from every part of the business and a strong balance sheet that positions us well for future growth. Firstly, to the earnings result. We delivered a strong first half with operating profit after tax of $248 million or $0.063 per stapled security, up 5% on the prior half. The investment segment contributed $307 million, up 2%, driven by development completions in living and industrial and improved leasing outcomes in retail. These were partly offset by office asset sales. The funds segment contributed $19 million, up 38%, driven by the completion of 2 further assets in the LIV BTR fund, along with improved asset valuations and increased leasing activity. The development segment contributed $111 million, up 37%. Within this, commercial mixed-use was $27 million with contributions from our committed projects such as 7 Spencer Street and 55 Pitt Street as well as development management fees from Harbourside. Residential contributed $110 million, up 9%, reflecting higher settlement volumes, improved average sale prices, contribution from the sell-down of Harbourside and development management fees from joint venture projects. Net financing costs were $129 million, an increase of $19 million compared to the prior half, primarily due to lower capitalized interest. This was partly offset by a decrease in gross interest expense, we are seeing -- where we are seeing the benefit of reduced debt levels and lower cost of debt. Our statutory profit for the half was $319 million, significantly higher than the prior half and includes $120 million of positive investment revaluations across all sectors. In summary, strong execution over the past 6 months has yielded increased contributions from every part of the business. Turning to the balance sheet. We've continued to actively manage capital, and our balance sheet is in a strong position. Gearing has reduced to 25.8%, well within our target range, and we have maintained strong credit ratings and have interest cover of greater than 3.5x, well above our covenant requirement. Our average cost of debt is 5.3%. And after refinancing $1.3 billion of bank debt at average margins of around 115 basis points this half, we have a further $3 billion of existing long-term debt with average margins of around 180 basis points, representing an opportunity to capture upside as these facilities mature in coming years. Following the creation of the Harbourside partnership with Mitsubishi and the sale of 25 (sic) [ 23 ] Furzer Street now completed, we have clear pathways to fund committed projects and are now focused on future growth opportunities. New opportunities acquired this half have been achieved on capital-efficient terms, ensuring that we maximize returns and make the most effective use of our capital. To support these and other future opportunities, we have multiple sources of funding available to us, providing flexibility as we grow. We have $1 billion of available liquidity with no maturities in the next 12 months. We have a distribution policy of between 60% to 80%, balancing distributions with retained earnings to fund development. And our team has built a strong and consistent track record in active capital management with over $9 billion raised over the last 5 years, $6 billion from capital partners, improving the velocity of our development capital, unlocking value, strengthening returns and generating management fees, and around $3 billion of asset sales, which have reweighted and improved the shape of our investment portfolio. In summary, as a result of active capital management, our balance sheet is in a strong position, and we are set up to support future growth. I'll now hand over to Richard. Richard Seddon: Thank you, Courtenay, and good morning, everyone. We continue to execute our strategy with discipline and focus. We've up-weighted living and logistics through development completions, while sharpening our office exposure through the sale of non-core assets. This has further improved the quality, sustainability and resilience of the portfolio. The outcome is clear, 98% occupancy, 4.4% like-for-like growth and positive valuation movements in every sector. What I'm most excited about is how this positions us for the future. We have clear visibility of growth with further opportunity for rental reversion, $100 million of future income from our committed development pipeline with strong delivery and pre-leasing momentum and a resilient valuation outlook underpinned by robust fundamentals at a time in the cycle where quality and location matter. In office, we've fundamentally repositioned the portfolio for a market recovery that rewards quality. 60% of our office portfolio is now premium grade, up from 34% in 2019, and the benefits are evident in the numbers. Occupancy is strong. Like-for-like growth is positive and successful leasing progress has reduced our forward expiries to just 12% over the next 2.5 years. Market conditions are improving. We're seeing positive net absorption in all major CBDs, double-digit effective rental growth in Sydney and Brisbane and the lowest supply outlook in 30 years, potentially on record. Our committed office developments provide clear visibility of future income and further uplift portfolio quality. In industrial, our strategy to up-weight to the sector through development continues to deliver. NOI is up nearly 80% in the past 7.5 years. Occupier demand has clearly shifted towards quality, and our 100% Sydney focus positions us extremely well as evidenced by strong leasing performance and recent completions at Aspect. Further growth is underpinned by around 17% of under-renting to play for, continued delivery of our secured pipeline with the first stage of SEED, now DA approved and construction set to commence ahead of the Western Sydney Airport opening later this year and structurally low vacancy with constrained supply in Sydney. Industrial remains a long-term growth engine, and our Sydney-focused portfolio is exceptionally well placed. In retail, we continue to benefit from the strength of our urban catchments as highlighted in the operating metrics on this slide. The metric I'm most focused on is driving improved sales productivity through active management of our assets. In fact, of the 34 new partners we've introduced in the past 18 months, we've already seen a 50% improvement in turnover. With resilient trading conditions, extremely tight occupancy and a continued decline in retail floor space per capita, we're confident in the opportunity for further growth. So retail is not just about the footprint, it's about driving productivity and our centers are delivering. Our living exposure continued to expand and perform with EBIT up 15%. Our build-to-rent portfolio of around 2,200 completed apartments is delivering exactly the resilient performance we expected with 6% like-for-like growth and the strongest valuation uplift in the portfolio at nearly 4%. LIV Anura and Albert are leasing up strongly with Anura already at 76%. In land lease, momentum remains very strong. New home settlements were up 21% in the period. Sales are up 50%, comparable EBIT growth is up 50%, and we expect to be selling across 7 new projects over the next 18 months. We've increased total platform sites by 23% since acquisition just over 2 years ago with a further 580 sites secured. So living is performing very well and provides significant runway for further growth through these 2 established market-leading platforms and will continue to be an increasingly important part of our portfolio. I'll now hand to Scott. Scott Mosely: Thanks, Rich. Good morning, everyone. We've had an amazing period of execution in our funds business, which continues to attract quality institutional capital to the platform, which is attracted to our asset creation capability, our deep sector expertise, our alignment model and our strong fiduciary mindset. Our third-party capital has grown to $17 billion with the funds under management component growing by over $1 billion in the 6 months, reflecting our BTR completions and broader valuation growth. Capital demand for our established vehicles across living, office and industrial remains strong, with all 3 vehicles completing equity raisings or asset acquisitions over the last 12 months. All have visible growth opportunities and importantly, have capacity to invest. The recapitalization of our BTR fund with Australian Retirement Trust marks an important milestone, not just for our fund, but for the entire sector. Our LIV BTR fund now has 5 income-producing assets, generating core to core plus inflation-linked low volatility returns. ART's investment reflects the unique quality of our platform and the attractiveness of this living asset class to sophisticated domestic investors. ART is aligned to our 5,000 apartment medium-term target, and we now have 2 new opportunities in exclusive due diligence since closing the recapitalization in December. MWOF's $430 million equity raise from a broad range of investors demonstrates there is capital demand for office portfolios with the highest quality assets in the best locations. The fund is extremely well placed to assess investment opportunities at this point in the cycle, having no redemptions in the queue, no secondary units being marketed, gearing at 26%, a reaffirmed A- credit rating and further inbound equity interest. Over the period, the fund was the #1 performing fund in the MSCI Index and transacted on over 100,000 square meters of leasing deals at greater than 8% spreads. Our Mirvac Industrial venture has grown to $1.7 billion over the last 3 years, and we've got clear visibility for further industrial partnering opportunities now that Aspect Central and SEED Stage 2 are set to introduce capital over the next 12 months. We have embedded FUM growth of approximately $2.3 billion as our development assets reach completion, but that is before we consider on-market opportunities and our replenished development pipeline. So there is clearly momentum in the business with $13.9 billion of high-quality institutional capital coming on to the platform in the last 3.5 years. This ability to continue to attract highly aligned capital not only provides us with diverse funding sources to expedite our development pipeline, but it is also generating recurring management fees and co-investment income across our development, asset management, investments and our funds business. I'll now hand to Stu. Stuart Penklis: Thank you, Scott, and good morning. We've had a strong first half with significant momentum in the development business with sales up 38%, a strong recovery in margins and significant restocking of our pipeline. This momentum gives us clear visibility of earnings and the recovery of returns. The success we've had in restocking our pipeline includes securing 3 major opportunities at the right time in the right locations and in the right structures that will drive the next wave of value creation and growth for Mirvac. These transactions are aligned with our strategy and leverages our core capabilities and are expected to deliver above hurdle returns with future capital partnership potential. At the upcoming new Hunter Street Metro in the heart of Sydney CBD, we expect to deliver approximately 70,000 square meters of premium state-of-the-art office space with an end value of around $3 billion and a yield on cost above 6%. With expected completion in 2034, Hunter Street will deliver into a deeply undersupplied market, positioning us extremely well for the next commercial cycle. At Blackwattle Bay on the site of the former Sydney Fish Market, we expect to deliver approximately 800 apartments in a precinct we know extremely well in close proximity to our successful Harold Park and Harbourside developments with first settlements targeted for 2030. Finally, at Karnup in Western Australia, we expect to deliver approximately 1,500 new homes in partnership with the WA government in one of the fastest-growing catchments in Australia. Turning to commercial and mixed-use. We have good visibility of earnings over the next few years, underpinned by significant progress on our committed projects. Construction costs are stabilizing with stronger competitive tendering and programs returning to normal, creating a more supportive environment for new project commencements. Pre-leasing momentum is also encouraging, particularly given the tightening market conditions. At 55 Pitt Street in Sydney, we have AFLs in place for 40% of the building, including Baker McKenzie, Aon and MinterEllison and discussions on the remaining space are progressing well. Construction is advancing with the new iconic terra-cotta facade installation now well underway. At 7 Spencer Street in Melbourne, construction remains on track with practical completion expected in the half. A new heads of agreement has increased leasing to almost 25%, and we're in advanced discussions that would take pre-leasing towards 60%. At Aspect Industrial Estate in Western Sydney, we completed Aspect North and Aspect South to follow this half. These precincts are now 91% leased. At SEED, adjacent to the new Western Sydney Airport, we've received Stage 1 DA approval with construction to commence in the coming weeks. Across these major projects, including Harbourside, these projects will generate significant and valuable development management fees during construction. Turning to residential. We delivered a strong first half with momentum building across all key metrics. Sales were up 38% year-on-year, supported by particular strong growth in our masterplanned communities with Victoria up 99% and New South Wales up 141%. Leads were up significantly with the December quarter delivering the highest level of inquiry in 4 years, overcoming market sentiment around increasing interest rates. Settlements were up 22% year-on-year, and we're now 90% secured for full year with a notable improvement in gross margins. Our focus on design, quality and investment in upfront amenity continues to differentiate Mirvac and win market share. Our projects are attracting upgraders and downsizers who have built up significant equity, ensuring demand across our portfolio remains resilient through the cycle. We continue to focus on innovation and modern methods of construction and completed our first volumetric prototype prefabricated home at Cobbitty. Capital partnering will remain a key feature of our strategy, helping us unlocking earnings, recycle capital and enhance portfolio returns. A good example of this is our recent JV with Mitsubishi at Harbourside, which unlocked value and created capacity for investment into future opportunities. Our restocking efforts over the past 2 years have been significant with more than 12,000 lots secured in capital-efficient structures and on above hurdle returns. We've made strong progress on rezoning and planning across our residential business, including at Wantirna South in Melbourne, the largest infill housing development in Victoria, which will deliver more than 1,700 built-form homes. At Green Square in Sydney, we have converted proposed commercial to residential with the project expected to deliver over 1,300 homes into this new town center. The underlying market fundamentals remain supportive, including strong population growth, continued undersupply, resilient house price and rental growth expectations and an increasingly supportive state planning process. And it's important to note that we remain uniquely positioned across the full residential spectrum: growth corridors, middle and inner rings with the capability to deliver land, built-form housing and apartments. This is a major competitive advantage in this point in the cycle and allowing us to provide diversity, which allows us to respond to the market swiftly changes in demand. Finally, our restocking success sets us up for a material step change in project activity. Over the next 12 months, we expect to launch 5 new developments, including our trading projects from 11 to 16. This activation is already underway with strong releases at Mulgoa, followed by the near sellout of our first release at Bullsbrook in WA just 2 weeks ago. First sales at Monarch Glen in Queensland are scheduled to take place in just a few weeks' time. We will also see a significant increase in apartment completions heading into FY '27 with 4 projects settling in the year. These are already over 60% presold on average, providing strong visibility of earnings. So with a material step change in sales activity, a recovery in margins and more new project releases to come, we are well placed to deliver continued momentum and growth across our development business. I'll now hand back to Campbell to conclude. Campbell Hanan: Thanks, Stu. As you've heard this morning, Mirvac is in great shape, and we have now a balance sheet that can fund our growth. Our repositioned investment portfolio is well placed to outperform. In an environment of higher bond rates, the quality and location of what we own will become increasingly important for future total returns. We've made great strides in our capital allocation strategy and stand to benefit from organic like-for-like growth and new quality investment income as developments complete. We're seeing improved returns from our development business with a stabilization in costs, higher margins and strong sales volumes across our residential build-to-sell and land lease businesses, providing near-term confidence around earnings growth. Restocking our future development pipeline for FY '28 and beyond has been a key focus area. Securing opportunities at better than hurdle returns and on capital-efficient terms will be important contributors to future earnings. And finally, we continue to attract capital to invest alongside us, improving the capital efficiency of our business and boosting returns through the corresponding fee streams. We're pleased with our strong progress to date and are focused on executing our key objectives in the second half, particularly around residential settlements and capital partnering initiatives. We reaffirm earnings guidance of between $0.128 and $0.13 per stapled security and a distribution of $0.095. I'll now open up for questions. Operator: [Operator Instructions] Our first question comes from Tom Bodor at Jarden. Tom Bodor: I was just interested in your development expectations of $270 million of earnings this year. And just considering that in light of your $3.2 billion of invested capital, that return being below 10%, how should we think about this normalizing? Where could it get to over time as your 0 margin projects roll off? Campbell Hanan: Look, thank you. Thanks for the question, Tom. And yes, without doubt, the development returns in the business have been hurt a little bit by the increased costs that we noticed in the last couple of years, but we're now moving through that, as you've seen, and we're starting to get a much better return on our invested capital. But Stu, did you want to talk to that? Stuart Penklis: I think to Campbell's point, we are seeing improvement in margins across the portfolio, and that's a key focus of the business to continue to improve those returns. We've done some great restocking, as we mentioned, at above hurdle benchmarks. And as those projects start to commence and coupled with the projects in the field, as I mentioned, we're moving from 11 to 16 projects, all of which are performing extremely well. We'll continue to see improvement in the returns from the development business. Tom Bodor: But from a ROIC perspective, I mean, can you get to mid- to high teens? Is that realistic? Stuart Penklis: Yes. Look, as we said, we will -- with the roll-off of those projects that were heavily impacted by COVID over the last few years, we expect to get back to our through-cycle returns. Tom Bodor: And then on the Serenitas minority or sort of JV partners, how do you think about funding the buyout of those partners and the timing of that intention you might have? Campbell Hanan: Look, that's probably a little bit of a hard question to answer because it's obviously not our asset to sell. Yes, we are interested in the opportunity of increasing our exposure to Serenitas. Look, I think as we get our balance sheet in better shape, which has been a key focus for the last 2 years, it starts to open up opportunities. I think as liquidity in office markets and investment property full stop starts to improve, it gives us optionality. So to that extent, we'll just continue to monitor and respond to any opportunity that may present itself at a future time. Operator: The next question comes from Lauren Berry at Morgan Stanley. Lauren Berry: Just another one on land lease. Like you said multiple times how important this segment is to you going forward. I was just wondering if you've given any thought to potentially doing some land lease on balance sheet rather than in the Serenitas venture? Campbell Hanan: Yes. Look, we have. We've got a really great platform in Serenitas as is, and we certainly have lots of future opportunity with our own land bank. And that's things that we'll consider over time as we understand the ownership opportunity. Lauren Berry: Okay. And -- there's obviously been a change in the interest rate environment as reported. Could you please give us a little bit more color on how your January and February sales have been tracking and whether there's any incentives placed across the projects? Campbell Hanan: Look, I might start, and then I'll hand to Stu. Look, I think our inquiry levels were similar in January as they were in December, and they're certainly similar again in February. Look, I just can't stress enough, there is a chronic undersupply of housing in Australia. And that chronic undersupply is going to be there for a while, and there is a lot of pent-up demand that is looking to find a solution to this housing problem. So to a certain extent, one interest rate movement is probably not enough to move the needle. We certainly haven't seen any evidence on the ground. And Stu, in particular, spoke to a recent release where we had 100% sellout in our Bullsbrook first masterplanned release in WA. Stu, did you want to add to that? Stuart Penklis: Yes, Lauren, the only thing that I'd add to that is really sentiment around interest rates going up really occurred in September and October. And as I mentioned in my speech, we've seen just continued momentum across our projects, particularly from a leads perspective, leads are obviously the strongest they've been in 4 years in the December quarter, and that has continued in January and February. I think the resilience of our portfolio, particularly obviously not heavily reliant just on first homebuyers and that focus on upgraders and rightsizes, particularly the contribution coming through from the middle ring and particularly the contribution coming through from New South Wales exposure has just demonstrated, I think, the resilience of the portfolio that we have. Operator: The next question is from David Pobucky of Macquarie. David Pobucky: Strong first half result implies a 49%, 51% oEPS skew across the halves, so a bit better than we had expected. Did anything land in the first half versus your prior expectations of landing in the second half, particularly around CMU? Campbell Hanan: Courtenay, do you want to take that? Courtenay Smith: Thanks, David. Look, I think all parts of the business have performed well, which you can hear from the results. I think resi settlements performed a little better. The NOI uplift like-for-like growth was a little better. So I would say it's across the business, the performance has been strong, which is why we're indicating that all parts of the business is up. David Pobucky: And just the second question on the office portfolio, 275 Kent Street and Westpac's 12-year lease there. If you can provide any update on that, please? Campbell Hanan: Rich, do you want to take that? Richard Seddon: Yes. Well, I think as we mentioned in the previous period, we've been busily leasing up a portion of the skyrise space, which was handed back. We've made great progress on half of that, which has contributed to the improved performance across the NOI line for our office portfolio. Westpac do have an expiry coming up in 2030. And naturally, we'll be progressing discussions on that one as we get closer to that time. Operator: The next question is from Suraj Nebhani at Citi. Suraj Nebhani: Two quick ones. Firstly, on the disposals, you called out $0.5 billion. Where are you looking to sell? And across the portfolio, should we see more potential for disposals? Or is this sort of the last year where we see a lot of disposals coming through? Campbell Hanan: Look, I think so. Thanks for the question, Suraj. I think you'll continue to see sales as part of our longer-term strategy. But ultimately, we've got key strategy objectives in our asset allocation plan. And I'd just ask you to keep referring to that. You'll see that we want to keep trimming office, but certainly not premium grade office. We're probably slightly overweight retail at the moment. We're fast approaching market weight of where we want to be in industrial. So you'll still see a little bit of trimming on the edges. But the most important thing is obviously that we're adding a whole lot of new real estate to the portfolio, that $100 million of NOI we keep referring to is going to be an important ingredient in growing our investment portfolio. And we're focused on growing the investment portfolio contribution. This has been a part of the business that hasn't grown for a number of years. It's been a funding source to ensure that our balance sheet is in good shape. Now that the balance sheet is in good shape, for the first time in a long time, we've got a growth profile in the investment portfolio, which we think is very important. Suraj Nebhani: Perfect. And one for Stuart on two specific developments. Firstly, on 7 Spencer, comfort levels on leasing that up before completion? And what sort of structure is there? Do you have to provide any guarantee? And then secondly, if you can clarify what happened on Green Square with the zoning conversion that you've talked about? Stuart Penklis: Yes, certainly. So I'll start with 7 Spencer Street. As I said, during the period, our commitments have ticked up to 24%, and we've got good line of sight through negotiations at the moment to get us around 60% pre-committed as we complete that building in the second half. We're comfortable with the allowances that we have in the feasibility in terms of the balance of that space. Turning to Green Square. Green Square has obviously been a very successful and long-dated project with multiple stages. But however, more recently, that project has been called in or has qualified for a state government approval process. And essentially, as part of the original master plan, a segment of that site was earmarked for a 45,000 square meter commercial office building. We have been able to navigate through state government a pathway to convert that to residential. And ultimately, the next 2 stages of that project will deliver approximately 1,300 additional apartments to what has already been delivered into the precinct. So a very important and good outcome for Mirvac in terms of being able to pivot to residential and obviously respond to the need for critical housing here in Sydney. Operator: The next question comes from Richard Jones at JPMorgan. Richard Jones: Just in terms of the timing around proposed sell-downs of Aspect Central in Kemps Creek and Stage 2 at Badgerys Creek, do you envisage that will happen in the second half? Campbell Hanan: We're targeting one of those for the second half. And then the other one is likely to drag into FY '27. Richard Jones: Okay. And just in terms of the new BTR opportunities, can you comment on what yield on cost you would expect on putting new money into BTR and I guess, how you, I guess, justify that as the best use of capital? Campbell Hanan: And I might turn to Scott for that, given it's a fund question. Scott Mosely: Yes. Thanks, Richard. Firstly, I'd just say the recapitalization of the fund has allowed us to actually broaden the mandate of that vehicle. Previously, it was purely debt to core, and it's gone through a period of completing 4 developments, which is through, and now we're actually getting stabilized income. But with that new mandate, the vehicle now has the ability to consider not only debt to core, but stabilized income-producing assets as well as fund-throughs. And so the yield on cost will depend whether that's a fund-through deal or a full develop to core opportunity. And right now, we do see some opportunities to participate in fund-through deals where, as you'd expect, that yield on cost is lower, but we think that we can target in the range of 65 to 85 basis points yield on cost spread to core cap rate, which is making commercial sense for those investors. Operator: The next question is from Ben Brayshaw at Barrenjoey. Benjamin Brayshaw: A question for perhaps Stuart. If you could comment, please, on the production outlook for the communities business, just with the 5 new projects coming online that you referenced in the presentation. Just wondering whether that implies that communities can operate at a sustainably higher volume? And could you quantify roughly when that might be reflected in the sales or the settlement rates for communities, please? Stuart Penklis: Yes. Look, I think you're already starting to see the tailwinds of those projects starting to contribute to our sales numbers. Obviously, over the second half of '26, just with our existing projects, we propose to release around 800 additional lots. And then the new launches in projects such as Monarch Glen and Bullsbrook, you'll start to see those also contributing. So it is a significant step change in terms of what the MPC business will be contributing to the overall portfolio from a volumes perspective. And I think importantly, what we've seen in recent times is, as I mentioned earlier, obviously, Queensland and WA continue to perform extremely strongly. We've seen New South Wales and particularly projects such as Mulgoa, Cobbitty and Menangle contribute significantly to the sales numbers. And we've obviously also now seen Victoria start to improve, particularly in the Southeast corridor. And that's reflective of, obviously, some of the comments I made probably at full year last year in terms of the immigration and the significant immigration that's happened over the last 24 to 28 months. And those immigration numbers now starting to contribute to sales sort of as they've settled and started to buy. So we'll continue to see a strong contribution from MPC, both in land, but also in build for housing. Benjamin Brayshaw: And could you just give a high-level update on how the 3 Victorian apartment projects are tracking? Just interested in how confident you are in those being delivered at the target margins for residential? And any feedback on presales over the last 6 months? And finally, just a comment as well on Prince & Parade. It looks like the timing might have been pushed out a little bit. So if you could clarify that as well. Stuart Penklis: No, Prince & Parade, firstly is still on target to complete next year. Albertine will be completing in the next few months, and Trielle will be completing in FY '27. So all those projects have held program, held budget. We have seen a tick up in sales. And I think we've moved from -- across those projects in '27, an uptick from 50% to 60% on average being presold. Inquiry has improved and particularly as we've started to complete the first wave of display apartments, again, very heavily weighted towards owner-occupiers, upgraders, downsizes. So we are seeing an improvement in the Victorian market, albeit it has been a pretty tough environment down there for the last few years, but we certainly feel like we've turned a corner there. Benjamin Brayshaw: I'll just clarify my question around Prince & Parade, the annexures show that the expected settlement is now spread across FY '27 and '28. Hence, my question as to whether it's been deferred. Stuart Penklis: No, no. Sorry, that's probably just the allowance in the settlement tail extending into '28, but the practical completion date hasn't changed. In fact, we're hopeful that we might be able to bring it in a month earlier. Operator: The next question is from James Druce at CLSA. James Druce: Can we just go through how you're seeing the second half this year in terms of residential margin? I think you commented on sort of Richard's project, a question around which commercial development profits will be coming through second half. But just also just comment on the settlement skew and how secured that is. Campbell Hanan: So just on the -- maybe start with settlement skew, 835 settlements in the first half. We've guided to sort of 2,000 to 2,300. So clearly, we've got a skew to the second half. The timing of -- just in terms of sales, kind of just over 90% sold. So really, that comes down to risks around weather or risks around titling, which are risks that exist always. So we're working through those. We've got stock on the ground, which is the last 9-odd percent that we need to sell, which will help us get there. But we're largely through it. We've sold more of those through January and February as well. So that sort of feels okay. Is there anything on the development pipeline that you want to call out, Stu? Stuart Penklis: No. I suppose the point I'd make is that, that remaining sort of 9-odd percent and the projects contributing to that 9% are achieving the required sales rates to hit our target. So we remain comfortable in terms of, obviously, the settlement range that we've provided. And I think the other question that you asked just in terms of earnings from CMU in the second half. And obviously, we spoke about the SEED project, and we also spoke about contributions continuing from 55, 7 Spencer Street and development and construction management fees coming through on Harbourside. James Druce: Okay. And just on the gross margin, how you're seeing that in the second half? Stuart Penklis: In line with what we've stated in the first half. James Druce: Okay. And then just a question for Stuart. How do we think about restocking for the high density or inner ring projects? I mean it still sounds like only really the luxury projects stand up at the moment. Are you seeing any change there? Stuart Penklis: Yes. Look, I think that we've been very focused on unlocking value from not only our existing pipeline. So Green Square is a great example where a rezoning and state government pathway has given us ability to obviously achieve additional yield and through conversion from commercial to residential. So that sort of middle to upper market, we think, continues to be very attractive for our business. Obviously, we continue to see a number of opportunities, particularly as planning progress has been made with state governments and the state government here in New South Wales is obviously very, very focused on the delivery of additional housing. So we're seeing a lot of landowners looking -- coming to Mirvac to look to partner. So that's really great in the sense that there's an abundance of opportunities. We're certainly picking the eyes out of the right opportunities. And to my earlier point, being able to recycle capital out of projects, bring capital partners in to ensure we've got the capacity to be able to pick up these opportunities at the right time in the right location is a key focus of the business. So I think we've obviously had a very successful restocking program over the last few months, and we continue to ensure that we're well positioned to be able to secure that next wave of opportunities in the inner and middle ring. Operator: The next question comes from Cody Shield at UBS. Cody Shield: I don't want to labor the point, but just to be crystal clear around Aspect and SEED, which one of those projects will be slipping into '27 in terms of partnering? Campbell Hanan: Look, it's probably likely that Aspect Central will and SEED Stage 2 is more likely to fall into this year is sort of the target. Stuart Penklis: And I might just add with SEED, we've been able to secure our Stage 1 DA, obviously, ahead of many in the precinct with the M12 opening later this year and the new Western Sydney Airport also opening, we're well positioned, obviously, with earthworks due to commence in the next few weeks. So an exciting time in terms of our opportunity to be able to capitalize on demand in that precinct. Cody Shield: That's great. And then just a small one. There's been a change in the treatment of DevEx for land lease. Could you just walk me through the change there? Campbell Hanan: Yes. Courtenay, do you want to speak to that? Courtenay Smith: Yes. Look, I think the first thing to say is the land lease business is performing really well, as Richard talked about, sales are up. EBIT is up period-on-period. We've had a change in ownership on a like-for-like period. So it went from 47.5% to 40%. And then we have had a change in the allocation of some of the development costs. And the way to think about it is we're allocating some of the civil costs to the development to unlock the value of the home essentially. Longer term, you'll see that value come back in the NTA even from next year. And we've done that because we think that's the most appropriate treatment of those civil's costs to unlock the value of the home. But otherwise, the business is performing well. Richard has talked about the sales, as I said, and we're really happy with the performance of it. Operator: The next question is from Adam Calvetti at Bank of America. Adam Calvetti: Look, just on -- you've moved your -- you had a slide that showed the value creation of profit energy uplift that's been moved and you haven't disclosed where that value that number is. I think it was $540 million for the full year. Any idea of how that's trended or what we can expect? Campbell Hanan: Look, probably part of that movement is timing. So as we finish projects, clearly, the value is created. You see that come through the NTA line, and there'll be more of that this year, particularly as we finish. We stabilize BTR assets, you'll see that start to participate in the income line and certainly Aspect South, which is due for completion shortly. And I think as Stu mentioned, now 91% leased, you'll start to see contributions to both NTA and contributions to income, which really will lead into a slight second half, but predominantly an FY '27 contribution. Adam Calvetti: I mean just looking at the future years, is it still safe to assume that $540 million is intact? Campbell Hanan: It will shift because we're actually starting to work our way through it. And I think the most important thing we're trying to highlight in this set of results is that, that earnings expectation that comes from delivering new projects, we're now actually finishing these projects. And so with that, you'll start to see the development contribution start to diminish because we're actually finishing projects. Hence, the focus for us now on earnings contribution beyond FY '28. We've got a pretty full pipeline up until '28. The focus beyond '28 has been important to us, and we're seeing some really good opportunities, which we've executed on, which we've announced today. Adam Calvetti: Okay. Great. And then just on 7 Spencer Street, I mean, you've got some -- you've done one deal there, and you've got a percentage that's in discussions. How does those incentives levels track versus underwriting? Are they in into any of the development profit that you're expected in the second half and going forward? Campbell Hanan: So Stuart, do you want to take that? But maybe just to start with, we are always updating feasibilities to ensure that they reflect current market conditions. And certainly, there's nothing that we're seeing or dealing which is irrespective of that at this point. But Stuart, do you want to add any further color? Stuart Penklis: Yes. No, it's precisely that. The feasibility reflects where current incentives are at, and we've got adequate allowance to see the letup of that building through. Operator: The next question is from Sholto Maconochie at Millennium Capital. Hello, Sholto, please ask your question. Okay. It seems we can't hear from Sholto. So as there are no further questions, I'll now hand back to Campbell for closing remarks. Campbell Hanan: Well, thank you. Look, thank you to all of you for taking time today to hear our half year results presentation. We look forward to meeting with as many of you as we can over the coming weeks. But thank you for your time.
Conversation: Unknown Executive: Good morning, everyone. Welcome to Thai Union's Analyst Meeting for the Fiscal Year of 2025 Results Announcement. My name is [ Malanyali Jadulong ] and I will be your MC today. First of all, I would like to introduce our management. First Khun Thiraphong Chansiri, President and CEO; Khun Ludovic Regis Garnier, our Group CFO; and Khun Pinyada Saengsakdaharn, Head of Investor Relations. Today's session will take around 1.5 hours, including Q&A session, and then followed by a 10-minute break before we begin the TFM Analyst Meeting. Without further ado, I would like to invite Khun Thiraphong to begin the presentation. Thiraphong Chansiri: Good morning to all the analysts and the executives from financial institutions joining us today. Today, we're going to share our performance results with you for the fourth quarter of last year as well as for the full year of 2025. 2025 was a year that is very memorable for us because we have so many stories, important stories, whether it's in terms of the reciprocal tariffs, which was something quite new for us, and also the exchange rate for the Thai baht, which has strengthened. The appreciation of the Thai baht is one issue, but what is important is that our neighbors, their currencies have weakened. And this is a challenge -- this was a challenge that we faced in the past year. Nonetheless, I believe that thanks to our adjustments, and which we have continued to adjust, we've been continuously adjusting. Over the past 2 years, we have put in place our Sonar program, our transformation initiatives, our Tailwind program for [ item ] to improve our PetCare profitability, and this has helped us achieve or be able to manage our costs in terms of productions and SG&A as well in the past year. Thus, in the past year, we have prepared for growth in 2026. If we take a look at our transformation program, you will see that we have our Sonar program where the goal is to achieve savings at USD 25 million, and our Tailwind project, where we want to have an operating profit of USD 20 million. And these 2 projects, we are on track. In terms of cost resetting, we have a target to reduce our cost by USD 118 million by the year 2027. And in the past year, we have had refinancing worth THB 24 billion. And this led to a decrease in our interest expenses significantly. And we also have our portfolio focus where we have adjusted our portfolio to emphasize on higher profit margin products. Innovation is also extremely important for us. Every business unit of ours, we have launched new products, whether it's our Ambient branded in America and in Europe. In the pipeline, the products in our pipeline that we're seeing significant achievement in that area. We have our innovation hub in Netherlands -- in the Netherlands. In the PetCare business, innovation is also extremely important as a key driver for the sales growth for ITL. In our Frozen business and the culinary-ready meals, this is something that we have seen major development in the past year. If we take a look at the full year results, you can see that in terms of Thai baht, the sales went down by 4.1%. But what is positive is that our volume has returned to growth at 2.5%. The overall volume that we have produced and exported is at 900,000 tonnes and the demand is very positive for Frozen feed and PetCare products. And with the feed, this is another business of ours where we have achieved a new record high in terms of market share and sales and profitability. And later on, Thai and Pinyada will present their performance results for you. And we also have PetCare positive results. So we've done very well in the past year in that regard. Our gross profit margin is at a high level, although it is below our target. With 19%, the drop is because of the foreign exchange impact. Another issue that I believe is something that is a highlight for us is despite our net income decreasing year-on-year, our earnings per share, or EPS, has grown compared to -- comparing year-on-year, it's gone up 7.2%. And this has enabled us to pay dividends, higher dividends. And on the next page, you can see that our EPS has grown from THB 1.8 to -- THB 1.08 to THB 1.16. And our adjusted net profit has gone down by 3.1% despite that. And this is something that we are very happy with. We are able to provide that earnings to our shareholders, and it continues to remain at a constant rate, more or less constant rate. And on the next page, you can see that our sales is at THB 35 billion. The advantages here are if we do not include the foreign exchange impact, our sales have gone 0.7%, which is a strong momentum in the fourth quarter. Our gross profit is at 18.3%. This is mostly due to the tariffs -- the increase in tariffs as well as the higher selling prices in the fourth quarter in Europe. Our adjusted net profit is at THB -- adjusted operating profit is THB 1.65 billion. Operating profit margin is 4.7%, and our adjusted net profit has gone down 22.7% in the fourth quarter. And on the next page, we'd like to point out our track record in terms of consistent dividend payouts. Ever since we founded the company, we have been able to provide dividends, and our policy has been no less than 50%, and we have paid at this high level, ever since the founding of the company. From 2023 onwards, 2024, you can see that we have -- can pay -- continue to pay out higher and higher dividends. And in 2024, it was 0.66 and in 2025, it is 0.7. And in this year, we have already paid TWD 0.35 per share. And in the second half of this year, we will pay TWD 0.35 per share as well. The ex-dividend date is on the 2nd of March and the record date is on the 4th of March and the payment date is on the 24th of April. And that's all of the details regarding dividends. And the reason for our higher EPS is our share repurchase program, which today, we have repurchased about 10%, most recently, at the beginning on the 8th of January, we lowered our shares by 200 million shares. We have 400 million shares remaining. That is our last program, and we will be implementing that plan in the future. And here, you can see, as always, we continue to be awarded and receive recognition from various organizations. And we received the leadership award from the Thai government and also from the Stock Exchange of Thailand. And also our products have been recognized, whether it's ECOTWIST that we launched in the U.K., we received an award. It's a Packaging award in the past year that we are proud of. And another recent news that we're very proud of is our sustainability recognition. We have received ranking in the top 1% globally by S&P Global. So we're included in the S&P Global Sustainability Yearbook for 2026. And this is something that we continue to be a pioneer and leader in. We have been upgraded in terms of our ESG ratings by FTSE Russell ESG. The climate disclosure, we have been upgraded from B to A. And from the SET, Exchange of Thailand, we have been -- our rating has improved to AA in Agro & Food. And there are other awards and recognitions that you can see from the presentation. And as for the financial performance for the fourth quarter 2025, I would like to hand things over to LUDO to share those details with you. Ludovic Garnier: Thank you, Khun Thiraphong. Good morning, everyone. Very happy to be with you. I will start with our usual 5 years picture on the sales and the GP margin. The few takeaways for you are, we are extremely proud this year to achieve our best performance ever in terms of GP margin for the whole year, just below 19%. We're expecting to reach 19%. We are just below for the whole year. And you can see achieving this performance in such a volatile environment with the U.S. tariff and the FX playing against us, I think we can be very happy about that. Of course, we don't want to deny that over the past 2 quarters, we have been under pressure because of the U.S. tariff. You can clearly see that in our numbers. However, the full year performance is very encouraging, and I think this is something we have to acknowledge. The second one is, please have a look at the sales development quarter after quarter. For you to remember, we started Q1 with a decrease by 10%, mostly because of the FX, and then in Q2, minus 5%; Q3, minus 1% and almost stable in Q4. We are very close to be flat or even back to growth. But I think all of these are very encouraging KPI that we are looking for. If I deep dive on the FX impact, and you know the FX has been a very strong impact for us. You can see here, we have a small table. In Q4 alone, the USD versus Thai baht has been deteriorating by 5%. The same for the GBP by 2%. Euro has been the opposite way by 3%. So it's partially offsetting this impact. So we are facing even in Q4, some very strong FX impact compared to last year. And this is something we have to keep in mind, even if we do a lot of hedging, of course, we have our U.S. operations, which are affected by this one. And Khun Thiraphong mentioned this one. One of the issue is all our competitors in the countries around Thailand have been -- have not seen such an increase of their own local currency. okay? So we are one of the only one where the local currency has been strengthening so much versus USD over the year. So here a few things. What is important for me is the dark blue, okay? The dark blue is the organic growth. You can see now it's 2 quarters where the organic growth is positive. I think this is encouraging. If you look at the light blue also, this is the FX impact. And the good news is the FX impact is reducing quarter after quarter, okay? You can see in Q1, it was significant Q2 also, Q3 dropping a bit, and then Q4 now, it's almost nothing, but it's offsetting our organic growth in Q4. One good takeaway also from this slide is our volume growth, okay? We told you when we've been facing with the U.S. tariff in Q2, we have been facing one of the key question mark will be the reaction on the demand in the U.S. You can see here, we have been generating some volume growth consistently every quarter, every quarter. Of course, we have different pictures depending on the category, and Khun Kuan will elaborate on this one, but I think this is also a very encouraging signal for all of us. Next slide, you can see our raw material prices. I think, overall, it has been under control. This year, we have been facing a bit of inflation. You can see in Q4, we had $1,573 for Skipjack, increasing a bit compared to last year, but overall, within our comfort zone of $1,400 to $1,700. Shrimps also has been increasing overall quarter-on-quarter, but still an acceptable range. And the salmon also, I think, is also more steady compared to where it had been the years before. So I think we have been quite happy with the salmon development. You have also, for each of these raw materials, our assumption in terms of budget for the year '26, of course, what we provide is always the average for the whole year. You can have some ups and downs during the year depending on the quarters. But overall, we don't plan for very significant changes in terms of raw materials next year. In tuna, the same in salmon, the same in shrimps, okay? We do expect a bit of inflation, but nothing dramatic for the business. So next one is regarding the FX. And I think this is the most important slide that we do have. Of course, the deterioration of the USD versus Thai baht. I mentioned this one has been impacting our business. You can see in Q4, we are 32.2%. In Q1, it is deteriorating a bit further on this one. This is one of the key components of the performance, and it was quite far away from our budget assumptions for the year '25, which was much higher than this level. Euro, there were some ups and downs. Euro has been increasing over the past 2 quarters. So I think we're in a better shape here. GBP also has been deteriorating versus Thai baht. Japanese yen, I don't need to comment. We know it's very weak versus all currencies. If I now move to our net debt bridge, '24, '25. The first thing is our net debt has been increasing in '25 from THB 53 billion at the end of '24 to THB 61 billion, okay? Let me walk you through the key components of this one. First of all, the EBITDA, I think the EBITDA is quite aligned with our expectation, THB 12 billion, THB 13 billion. This is where we are usually. But then next to the EBITDA, you can see we have a big box, which is net working capital, increasing by THB 6 billion. That was kind of a surprise for us, especially in Q4. Our inventories, our AR have been increasing in Q4. A few drivers for that. First of all, the U.S. tariff now are inflating our inventories in the U.S. on average by 20%, 25%. In the U.S., we import a lot of product coming from Thailand, from Indonesia, but also from India. The average tariff rate that we have is something close between 20% to 25%, depending on the mix country. So this is one of the reasons. We have been facing also some good issues, a lot of orders in our U.S. Frozen business at the end of the year. So we built up a lot of inventories at the end of the year to face with this situation. Also, our sales in December were high. So our AR are also higher compared to what we have usually, okay? So the impact of all of this THB 26 billion over the full year. CapEx are under control. For you to remember, at the beginning of the year, the guidance for '25 was THB 4.5 billion to THB 5 billion. When we have been facing with the tariff, we have been reducing our guidance, we say we want to keep under control. And then after we have been loosening a bit the CapEx, okay? But still, we have been spending below our guidance for the full year. And you will see when Khun Thiraphong will talk about our guidance '26 for the CapEx, we are catching up a bit of CapEx, which have been delayed from '25 to the year '26. All the rest, tax, dividend is kind of normal. You can see, of course, on the right, we have also one box, which is very unusual, which is our treasury share buyback for THB 4.3 billion, which is the last program we have been doing in the year '25. So the consequence is our net debt to equity has been increasing. It was below 1 at the end of '24. It's 118, 118 at the end of 2025. There is one good news. The cost of debt has been decreasing, okay? It was 3.65% last year. In '25, it was 3.31%. Here, you can see the impact of the interest rates gradually reducing in the world. We have a clear action plan for '26. We are not happy with our cash performance in the year '25. So we have a clear action plan to improve and to generate more cash in '26 and especially to reduce our net working capital across all our locations, okay? I think we can understand '25 with the tariff, we had to build up a lot of inventories, but now the tariffs are becoming part of the routine. We have also some good news. You heard that India, the tariff for India are reducing from 50% to 19%. We do have a lot of inventories in the U.S. coming from India. So that will help us to decrease also our level of inventories next year. So you can see here the impact in terms of ratio, the inventory days. You can see here clearly the inventories in terms of absolute amount have been increasing by THB 4 billion. In terms of inventories, inventory days, we have been gaining 3 days, and the same roughly for our net working capital, okay? In terms of ratio, net debt-to-EBITDA, we are exceeding 5x, okay? We are not happy with that. And again, I mentioned to you that we have an action plan. The goal for us will be to reduce our net debt, and our net working capital during the year '26. We want to get back very close to 1.1, okay, by the end of 2026. And also in terms of net debt to EBITDA, right now, we are at 5. We want to go more in the territories of 4.5, 4.4x at the end of 2026. Very strong actions are expecting next year on that part. Now I move to the transformation program. You know about Sonar. You know about Tailwind. You know this is the end of the Sonar program. We told you it was a 2-year program, '24, '25. I think we are on track. We are slightly exceeding our target in terms of savings for the year 2025. We did achieve $20 million versus a target of $15 million. For you to remember, next year, we are planning to have even more savings because we have the full year annualized savings coming from this one. We did give you here some few initiatives we have been doing in Sonar, okay? One of the most important one for us was to move to one global non-fish procurement organization, okay? For you to remember before, our procurement organization was very fragmented by regions or even by companies or even by factories. Here, we moved to one global one, and we have been consolidating a lot of our purchase, okay, especially in terms of fees, in terms of olive oil. Now we are doing some purchases for the whole group. And of course, our bargaining power is much stronger. So we had some very interesting savings coming from that. You can see especially the impact in our Feed business, okay? Please stay for the TFM Analyst Meeting right after this meeting. There are a lot of good and exciting news to share with you. But you can see the performance has been really improving in '25. And clearly, Sonar is one component of that. For you to remember, our Feed business, the lead time is very short, okay? We have all our operations in Thailand. We are selling in Thailand. So you see directly the impact in our P&L. This is different for our Ambient and Frozen product where our factories are quite far away from our market. So we have very often 6 months lead time between the production, the transportation to the market, and then the sale to our customers. You have also a few examples of initiatives we've been doing in terms of production. We have been shifting some SKU across the factories from the U.S. to Africa. It's the first time that we have some -- our factories in Africa producing for the U.S. So we are becoming more agile, okay? And of course, we did all of this when we were facing the risk of 38%. Now that we're at 19%, of course, we don't need to do dramatic changes in our supply chain. However, I do believe that we became much more agile this year, okay? Our factories in Africa, especially at PFC in Ghana, they can source for the U.S. So for us, it's more one more interesting sourcing. We want to stay ready. Of course, the tariff situation is extremely volatile. Every morning, we are watching the news about what did they say in the U.S. There could be some positive news also, but we are careful also on that. Tailwind, Tailwind is a 3 years program. So there is one more year in 2026. Again, I think in terms of pure savings, we are on track. We slightly over deliver compared to our expectations. For you to remember, there is 3 work streams in this one, the commercial, the operation and the procurement. Also in this one, we are happy about the results, okay? Of course, for you to remember, we told you in '24, the combination of the 2 program will be a net negative, okay? The costs were higher than the savings in '24. In '25, we told you it's kind of a wash. We have kind of the same amount between the cost and the savings. '26, we would expect a different situation because, of course, the cost related to Sonar will almost disappear, but then all the savings will be here. So it will turn to be positive in '26, but we will still have some costs on the tailwind program. And then '27, we don't have any more all the transformation costs. And then we expect that we will maximize the profit on this one. Of course, all these savings are partially being offset by the inflation, okay? So you don't expect to see the savings directly floating in our bottom line. We have some inflation, the tariff also here. So you can see directly the $20 million in our bottom line. But overall, I think we are moving in the right direction. We told you also since last quarter that we did launch the cost reset program. And in fact, the cost reset is just a transition from Sonar, which was a very specific 2 years window to a continuous improvement. okay? Cost reset is some initiatives we have been launching on the COGS and on the SG&A. We started in the middle of the year to face with the U.S. tariff. And the idea is also to continue to slash our cost and to reduce our commercial cost, and our cost in the factories. We put here some few initiatives. Again, the cost reset is applicable across all our categories within the business. The target for '26 is around $60 million, 6-0. There is a part which is duplicated with Tailwind, okay? So we have $50 million, which is also in Tailwind. So if you want to focus only in -- on the cost reset, it's more in the range of $45 million. Again, that will help us to face with the inflation to face with the impact of the U.S. tariff. I think we have a lot of good initiatives going on right now for this one. This program, very clearly, we are capitalizing on Sonar, okay? I think through Sonar, we have been learning a methodology, which is not applicable for the whole group. And we just want to transition now to continuous improvement. We don't have any more the support from the consulting firm. We do it by ourselves, but we take it very seriously. And clearly, this is one of the key initiatives that the GLT is following within the group. I wanted to share also with you just one slide on the impact of tariff. So you can see here, of course, all our operations in the U.S. are being impacted by the tariff. Also, our operations in Thailand are also impacted because we do export a lot in the U.S. Pricing, we told you from the beginning, the strategy for us is to transfer the impact of the tariff to our customers and to the consumers. So far, we can see we could not do it across all our category, okay? Why? Because we have to watch out what our competitors are doing. We are not the only one, of course, in this market. Depending on the competitors, depending on the category, we are facing different situation. We are also monitoring what is happening in the other proteins, okay? So here, we cannot say the tariff go up by 20%. We just increased our prices by 20%. That will be too easy, okay? So we do some gradual increase. We did a bit in '25. We'll continue to do more in '26, but it will be gradual, okay? Quarter after quarter, we increase the prices to finally, at the end of the day, push everything to the consumers. One thing also you need to have in mind, and maybe it's not clear for everyone, the vast majority of our business in the U.S. is FOB, okay, meaning the buyer will take care of all the tariff impact. There is one exception, which is in our Frozen Thailand business, okay? In our Frozen Thailand business, we are DDP, okay, meaning we take care of the tariff basically, okay? So the impact for us, it will trigger an increase of our SG&A because of the tariff impact. And of course, we increase our prices, so our sales will increase, okay? So you will see that our GP margin is being inflated by the tariff impact in our Frozen business. That's why Khun Kuan will comment after a record high GP margin for our Frozen business. But our SG&A are also increasing coming from that, okay? So it's almost a wash in our OP margin, but you have a bit of inflation for these two. And of course, in the Ambient in the PetCare, as long as we are not able to transfer all the impact of the tariff to the customers, our GP margin is a bit under pressure. We have been trying to estimate just an estimate the negative impact on our OP for the full year '25, we estimate it's around THB 350 million, okay? It's not a small amount for you to remember, it's mostly Q4 and Q3. There was nothing before that time. That is a hit for us of around THB 350 million. Again, it's an estimate. It's very complex to have a detailed calculation, but it provides a good overview, I think, about where we are. One more thing also, and I think maybe we were not vocal enough during the year. We told you since the past 5 years that we have been very active now in our portfolio management. And we continue to do that in '25. And here, we -- I just wanted to give you an overview about a few divestments we have been doing in '25. We did not really talk about this one because the impact are very small. These were small businesses and very often, we sell very close to net book value. So you don't have any large gain or loss in our P&L. But we sold our shares in our factory we have in PNG in Papua, New Guinea. We sold our shares also in our supplement business in Q3. And the same for a small joint venture, who we are having in Thailand together with Interpharma. And finally, you heard the Feed business saying that they sold their factory in Pakistan. These are small things, but we told you from the past few years that now we are clearly addressing all the loss-making businesses, okay? There was one common point to all these businesses, they were all loss-making. Okay? So clearly, we are fixing them. We have less and less loss-making businesses within the group. I think it's a good thing, it's a good sign. We still have a few of them to be focused on, and we are working very actively on this one. But I think it's a good, it also avoids some distraction, okay? Even if sometimes the business are very small, it always creates some distractions of business, and we want to focus on what is having some impact. Finally, the last part for me. We just wanted to give you a heads-up regarding the top-up tax. It was a lot of triggering a lot of questions from your side all along the year. We told you last time the impact will be between THB 100 million and THB 150 million. Finally, it's THB 91 million, THB 91 million for the whole year. For you to remember, the impact for us is only in Thailand, okay? In Thailand, we have an effective tax rate, which is close to 10%, 10.5%. So we have to bridge the 15%. So we have a top-up tax, which is between 4% to 5%. And this is THB 91 million, you can see here. However, you can see that for '26, we expect the impact to be higher. And here, we expect the top of ETR impact to be around 1% to 2% and the amount to be again back in the range of THB 100 million and THB 150 million, okay? For you to remember, we are still waiting for some compensation from the Thai authorities. We know they are working on that. It takes time. At that stage, we have no visibility about when they will release anything, but we do expect at one stage, they will get back with some compensation measures, especially for the exporters business like we are. And now, I will give the head to Khun Kuan to go through the business performance. Pinyada Saengsakdaharn: Hello, everyone. For our business performance, as always, we're looking at it by category. In 2025, the company had sales of about THB 132.7 billion. This is mostly impacted by foreign exchange. And if we take a look in specific areas, just our sales volume, as Mr. Thiraphong told you earlier, we have a sales volume that has increased by 2.5%. And in the graph on the bottom slide, you can see our sales volume. They are driven by our Frozen and PetCare categories. In our gross profit margin numbers, this year, we have a record high gross profit margin at 19.8%. And in every category, we have gross profit margin numbers that are in line with our guidance that we provided earlier. Let's begin with a look at the fourth quarter in the Ambient category, our sales is at THB 15.67 billion going down around 2% year-on-year, and this is mostly due to the negative FX impact that led to lower average selling prices. However, if we take a look at the bottom left, you can see the sales volume in the fourth quarter for the Ambient category increased by 1.7% year-on-year. This is mostly because of increasing demand in Europe and the Americas and in Thailand. In terms of gross profit margin, it is at 18.4%, going down by 2.2% year-on-year. The reason -- the primary reason for the decline is the U.S. tariffs, which have led to increasing cost for us, while the prices -- our selling prices were not adjusted to cover those costs. And we were also impacted by the raw material prices for tuna, which increased by about 3% year-on-year. We have plans in place to deal with this risk because we have increased our prices for products in America and the American continent since the third quarter of last year. And in January of 2026, we also increased product prices to mitigate that risk that has led to a lowering margin. And for the full year for Ambient, our sales have gone down 6% year-on-year, and this is mainly due to the FX impact. The sales volume also went down by 2% year-on-year. In 2025, the company we -- our customers in the U.S. were waiting to see the situation regarding U.S. tariffs. Taking a look at our gross profit margin, you can see that our gross profit margin was able to achieve a level of 19.8%, and this is very close to our target range that we provided in our guidance of 20% to 22%. In the fourth quarter for the Frozen business, our sales was at about THB 12 billion, increasing 3.4% year-on-year, and this is due to sales volume increasing by 5.6%. Our sales volume that has increased is from the Feed business for the most part. And Thai Union Feed Mill will be providing more information on their business operations that have led to an all-time high. And the sales volume for the U.S., you can see that it is still soft due to the U.S. tariff impact. Nonetheless, we have a gross profit margin for the Frozen business that is the best ever. It's an all-time high, quarterly high at 14.5%. And this is thanks to our increasing selling prices in the U.S. and the costs were relatively stable. As our executive shared with you, the Frozen Thailand exports to the U.S., we have increasing SG&As because of the inco terms or the logistics terms, which are delivery, duty paid or DDP, where we had to absorb those freight costs. Our margins, however, continue to expand, and our Feed business has provided support in this regard. For the full year, in the past 5 years, we have had low range sales, but we have plans to remove the low-margin businesses as well as those companies that are not generating any profit. We informed you last year that our new baseline for the Frozen business will be at around THB 42 billion. And this year, we have a drop by about 2.5% due to the FX impact. Our sales volume for the Frozen business for the entire year increased by 7.6% year-on-year. And this is mostly due to the volume from the Feed business, which increased gross profit margin has also improved to an all-time high of 13.2%. As for our PetCare business, you can see that in the fourth quarter, we had sales at about THB 4.69 billion, increasing 1.4% year-on-year. If we take a look at the sales volume, it increased by 2.8% year-on-year. And the lowering sales opposed to the increasing volume is a result of the FX impact as well. In U.S. dollar terms alone, our sales have increased by 6.7% year-on-year, and this is due to improving volume in the market in the U.S. and in Europe. And the gross profit margin for the PetCare business is at 26.3%. And this is, we have exceeded the range that was provided 3 quarters in a row. And this is a reflection of strong operations. The PetCare results for the full year, our sales went up 2.8% year-on-year, driven by the increase in sales volume. If we take a look at the -- take a look at this in USD terms, PetCare increased by 9.2%, while the gross profit margin continued to be in line with the target range of 23% to 25%. And lastly, as for the sales for value-added in the fourth quarter, sales dropped by 9.2%. And this is mostly a result of demand in the U.S. market. Under the value-added category, the various products, there's a big mix, which include Ambient and Frozen value-added products as well as packaging ingredients, byproducts and also other products. When our sales decreased, it was mostly due to the value-added in Frozen sales, which reflected lowering demand in the U.S. Our gross profit margin for value-added went down to 21.8% and the full year performance for the value-added business went down by 9.5% year-on-year. It went down in every category, as I explained earlier, but the ingredient business has done quite well. And the gross profit margin for the value-added was also favorable at 25.4% for gross profit margin. This is higher than our market range. It's above the target guidance of 25%. I'd like to return the presentation to Mr. Thiraphong now. Thiraphong Chansiri: In 2025, we have reset our baseline, and it was a year for us where our sales went down. But in 2026, we expect to see growth -- a return to growth. And we had set a target for sales at 3% to 4%, and we expect growth in every category, especially high growth in the PetCare for ITL and also our Feed business from TFM. The sales growth will be mainly driven by higher volumes, not just the prices. And our assumption that we're using in 2026, the FX rate is at THB 32.5. This is based on the financial institutions, and we have not adjusted that number so far. Our gross profit margin, the guidance, we are committed to improving the gross profit margin to a level of about 20%. Our guidance is 19% to 20% for this year, and we expect that the margin will increase in the Ambient and Frozen and PetCare value-added. SG&A is at 13.5% to 14.5%. I feel that this is an appropriate level because we are at our branded businesses -- we've included our branded businesses, and we have our lower transformation costs, and we will not -- not in the transformation cost, in the Sonar function. CapEx is at THB 5.5 billion [indiscernible]. This is primarily due to increases primarily due to our projects that continue on from last year. We had a lower CapEx for last year, lower than our target. In addition, we are investing in other areas, such as the Feed Mill in Ecuador, which we have been recognizing CapEx numbers this year. We have an automated warehouse for PetCare as well, which has been completed, and we will see CapEx numbers regarding that as well. We have a new facility for Packaging, whether it's cans, Asia Pacific can, that's one of the businesses and also our printed materials, graphics, where we continue to invest. Our dividend policy remains at least 50% twice a year. And that is the guidance for 2026. Unknown Executive: Thank you very much for joining us today. We will now take a 10-minute break before TFM session again. Thank you very much. [Break] Unknown Executive: The Sonar cost which almost disappear, okay? And we expect roughly transformation cost to decrease by half. However, we do expect this positive impact to be offset by the negative impact coming from the full year impact of the U.S. tariff in the U.S. in our frozen business. That's why when you saw the guidance provided by Konrapong, it's almost a wash, okay? We keep the guidance quite close compared to what we have been doing in '25, decrease of our transformation cost, increase of the tariff impact. We want also to increase further our marketing expenses in our P&L. And that's why you see our guidance. We don't see any drastic improvement of our SG&A to sales compared to what we have been doing in '25. Pinyada Saengsakdaharn: Okay. Now we will have only one question from the online. Regarding the 400 million share repurchase in the first half of 2025, does management still intend to proceed with the planned capital reduction? Or is there any possibility of the reselling and treasury share to help reduce debt to equity in the range? Thiraphong Chansiri: Still have plans to reduce our cost. Nothing has changed. We still have 400 million more shares. If we're going to make any changes, we will inform you, of course. But at this moment, there is nothing -- no changes in our plans. Pinyada Saengsakdaharn: As there are no further questions, we will conclude today's session today. Thank you very much for joining us today. We will now take a 10-minute break before our TFM session again. Thank you very much. [Break] Pinyada Saengsakdaharn: And welcome to everyone for the results [indiscernible] the executives who are joining us today. Our CEO; and our CFO. And without further ado, I would like to ask our to go ahead and share the details of our performance results. Thiraphong Chansiri: Hello to all of the analysts and the investors joining us today. I would like to begin with our meeting. Slide shows that even though the Aquaculture industry in Thailand in the past has faced many challenges many areas, whether it's outbreak in shrimp raw material prices and the global economic uncertainty. The company have been able to maintain strong growth we have delivered performance that have are the best ever best of business too and at the business and we have been able to increase our market share and shrimp feed and fish feed was seen growth in Thailand and in our exports consists strategies in the past TM. We have adjusted in our strategy to include a [indiscernible] of 51% stake and AMG-TFM, which [indiscernible] area that has been Pakistan resulting in our [indiscernible] and this allows TFM to focus on our resources on main businesses and strong markets and to take advantage of PetCare growth [indiscernible] One of the symptoms that are commitment to ESG and sustainability TFM [indiscernible] and managing news to everyone. We have many projects in the lower carbon shrimp project, which helps farmers -- shrimp farmers to reduce their costs and to lower their greenhouse gas emissions from the farms. This is to improve the farming efficiency and effectiveness and to bolster their long-term competitiveness as well. TFM is the first animal feed producer in Asia that has been certified by ASC. It's the ASC Feed Standard [indiscernible] high level. And this reflects our leadership in sustainability and [indiscernible] feed. In addition, to this we had innovation it prevents which are [indiscernible] feed almost to have remain to reduce the last [indiscernible] and the [indiscernible] breaking apart. [indiscernible] sustainability and regain to receive the [indiscernible] in 2025 and it was a year 2025 was a great year for us and this re-emphasizes that TFM in the past with past ex-sustainability in a core front [indiscernible]. In the next line, we tried to talk [indiscernible] for 2025 [indiscernible] increased 4.5% fishes in business except for [indiscernible] animal feed [indiscernible] 16.2% [indiscernible] increasing 33.4% [indiscernible] 22.2%, which is higher than 2022, 18.7% and this is the result of shrimp cage [indiscernible] strong profitability [indiscernible] and raw materials management as well. Since the result on 2025 we had [indiscernible] which is 19% compared to last year. [indiscernible] to our strong business operation. [indiscernible] we have done a track record for gross profit and net profit in the past 2 years and they [indiscernible] gross margin and high-level of [indiscernible] and our net margin of 11.5% [indiscernible] in our business operation that continue on [indiscernible] trade industry and [indiscernible] TFM, were our shrimp feed on 2025 has increased from the [indiscernible] market share including OEM products this in '25, 7% to 8% [indiscernible] exports in Indonesia growing by 25.6% from the [indiscernible] and this is thanks to our increasing share [indiscernible] on shrimp feed -- quality shrimp feed together with providing technical support to the farmers sharing that with them. And this has allowed shrimp farmers to be more successful in the operations and lower costs. On the next slide, you can see the overall operations for the country. In Thailand, we are now going very well, been able to capture more market share in shrimp feed and fish feed. Thanks to our sales team and our technical support team. In Indonesia we faced [indiscernible] pricing in the fourth quarter. We, it was also, the issue of [indiscernible] activity and the shrimp and there also FX in the U.S. market and in the fourth quarter we had sales affecting our value chain and the strong business in Pakistan. We still have sales producing due to the [indiscernible] business model to OEM [indiscernible] 2024. Overall it is now [indiscernible] because it's the small business size [indiscernible] shares in AMG-TFM to throw the partners. In terms to exports to other countries, we are seeing increasing from the [indiscernible] and this is one of the main targets. We have a target [indiscernible] on our portfolio, [indiscernible] we also have new partners in other countries share that with you in the Q&A session. Our exports, we still see a lot of room for growth and a lot of opportunity for sales. Unknown Executive: This is about the dividend payout in the second half of the year for 2025. We announced THB 0.30 per share dividend has to be approved by the Annual Shareholders meeting first. The dividend pay is at 81.8%, which is higher than our policy guideline of no less than 50%. Record date is the 27th of February, and the payment date is the 21st of April. [indiscernible] and update on the employees that we have received in the past [indiscernible] our outstanding innovative. There was nothing innovative company [indiscernible]. This project that we were awarded from and something that we had shared [indiscernible] ever since 2024. We started that end of the year. We have been able to create [indiscernible] small sized [indiscernible] for young shrimp and this small is called [indiscernible] very small and we are the very first organization in Thailand to be able to do this. And this product helps both the production cost and the farming for the shrimp farmers pollution environment -- and this has led to us receiving this outstanding innovative company award. Let's take a look at the details in our performance for the fourth quarter, beginning with sales. Our sales is at THB 1.6 billion, growing year-on-year by 14.3%. You can remember right that this time last year, we said that in the fourth quarter of 2024, there was unusual season with low season 2024 instead of being a low season, that fourth quarter was a high season due to the prices of shrimp, which are very, very high, very, very strong. And even though we have that baseline in 2024, the high baseline, we're still growing 14.3% more. And this is mostly due to the results in Thailand and our exports because our Srilankan products recovered from flooding and we also have new customers from other countries as well. This growth is mostly from the shrimp feed together with the seabass feed. And our gross profit margin is at 22.3% and this has grown year-on-year as well and this is due to many reasons, whether it's raw material prices or the product mix has changed, this had the increasing shrimp feed contribution and SG&A. [indiscernible] has gone up [indiscernible] we have been able to [indiscernible] compared to last year, which was at 10.2%. And for the entire year, you can see, which we have been able to control our cost of sales. Usually, we take our customers -- if they achieve the targets, we take them for a trip and that increases our sales. But overall for the entire year, we have done quite well. There is one special item, which is the sales [indiscernible] TFM in the third quarter, we reported that impairment and in the fourth quarter, the actual sales took place, we had recorded another loss. Despite this doubtful debt due to the shrimp situation, whether it's outbreak. This is outbreak or radio activity in Indonesia to a high level of doubtful debt in the fourth quarter. Nonetheless, our profit margin reached the level of 11.2%, growing 22.1% year-on-year. If you wait and see the contribution from the different fields, shrimp feed has had 65.5% and increasing from [indiscernible] and shrimp feed goes to product [indiscernible] and this is the main source at the [indiscernible]. Once take a look at details on the different products of shrimp feed you can see and we have grown relatively well especially here in Thailand. The volume in Thailand, increasing volume in the fourth quarter by 26%. 26% thanks to the technical support and other measures we have taken. Shrimp prices are also at the level that the farmers are very happy with and you share after they have recovered in the third quarter from the disease outbreak in the first half of the year. They didn't had radiation issues and that led to a quick capture of shrimp, which affected their exports to America, which is their major export market. [indiscernible] month of last year, there was disruption in the value chain for Indonesia and the situation gradually improved. But the farmers they held back on shrimp raising and that led to an impact on our shrimp feed for Indonesia in the fourth quarter, but the situation is improving. In terms of our gross profit compared to last year, it improved and this is thanks to the raw material prices that have improved, especially in terms of soybean meal and fish meal, though the price has increased significantly in quarter 4. On to fish feed, we have seen growth in this respect as well. It's increased year-on-year by 6.7%. This is mainly due to the Seabass, which has grown 26.1% year-on-year. We have been #1 for Seabass feed for quite some time now, but we continue to grow and this -- for this feed compared to our competitiveness. And we are seeing -- and we have consistent quality and for other fish feed, the categories have declined a bit due to many reasons that gourami fish had disease outbreak and the market size decreased. This too working with the farmers to deal with this issue. And we have someapnea fish also risk for [indiscernible] for different kinds of fish and these are reasons credit concerns and this is reason for a decline in that fish feed other fish feed. We continue to work in this area. We've been working for several years now, but we are happy with the formulation and we're going to implement sales promotions to hopefully lead to increasing sales in other fish feed. And our livestock feed, this is a small contribution to our sales, but if you take a look at the volume, volume has increased and this is because of the lowering sales price. This is in line with the raw material prices. The margin is still at a very satisfactory level, and we will continue with this here, the net profit bridge, we've seen an improvement from THB 151 million in the fourth quarter, THB 151 million in the fourth quarter of 2024 have a stronger since we have a stronger margin due to many reasons. So, SG&A in absolute terms increased, but we have been able to control our costs quite well. And there are a few problems with the doubtful debt. And in Indonesia, they are working on resolving that issue. They are following up on debt that resulted from the radiation and disease outbreak. And AMG-TFG had disposals with feed. We also had that and we have taxes, which have improved and thanks to the [indiscernible] benefits, which we regained in the end of August and this is the summary of [indiscernible] this year that's very similar to the year before. We have been able to have a greater [indiscernible] that is strong and we [indiscernible] and the majority that you see here is that [indiscernible] projects and we renowned shrimp the factory and then [indiscernible] factory and also [indiscernible] dividend payment, which doesn't improved the addition that is [indiscernible] per share. We have a low debt level. These ratios are the cash conversion ratio. And we are very happy with the numbers. The cash conversion cycle is at about 35%, dropping a bit from the quarter before and interest-bearing debt to equity is still at a very low level at 0.09. And I'd like to hand this back to Mr. Peerasak. Peerasak Boonmechote: As for the outlook for this year, we expect sales and we expect continuous growth at 8% to 10% and be main driver for be this [indiscernible] in Shrimp feed and fish feed here in Thailand who see a lot of [indiscernible] and who see a lot of in [indiscernible] opportunities. This profit is at 18% to 20% and this is thanks to our [indiscernible] to maintain quality production and our portfolio on fish focuses on [indiscernible] products. SG&A remains the same [indiscernible] CapEx is [indiscernible] and this is from our new [indiscernible] Ecuador. Hence will be informed the [indiscernible] for operational developments going on [indiscernible] Indonesia. Thank you to our executives, we are at the presentation and has anyone has questions [indiscernible] participants. Unknown Analyst: I like to ask about Ecuador. First of all, Ecuador in the Group, are they important to certain producers? Ecuador has a very large shrimp market and one of the biggest in the world. Our entrance into that market, is it due to the fact that we already have customers or have we been invited into the market? Because I understand that the market there is quite large. You're investing THB 680 million and the capacity you would increase 80%. Is it going to be a construction phase by phase or will be all at once? Peerasak Boonmechote: Let's take it question by question. Of course, the investment in Ecuador is in accordance with our road map. If the analysts and investors would be remembering, if you've been following at the news we shared our road map all the way to 2030. The organic growth, we're expecting organic growth of 8% to 10% yearly and joint ventures to up to THB 10 billion in the past few years. That's we have been sharing with you and the road map that we've made for ourselves, we are on track. In terms of opportunity while we looking at Ecuador -- it's because of the market size and the production yield. Ecuador has a 1.5 million tonnes shrimp farmings. They are growing over 10% every year and if we apply with the conversion rate -- conversion ratio, the numbers are very large. And that is why TFM was looking at this market as a great potential of opportunity. At the investment size is about the same that we had been driven 80% is for the production that can grow end to end and [indiscernible] continue to produce at 80% of the market. Second question is about relationship with partners. There are opportunities and risks, of course we're looking at is the partners. It's just like our investment with [indiscernible] in India. Our partners in Ecuador have great networks. And our partner has not just the network, but also the volume, the value. I don't want to share too much detail yet. But we do have a partner that is directly involved in the industry and also has a supply chain network that is very strong. And I think that's all I can share with you about that. In Ecuador, the shrimp farmers, you have your ASC certification. In Ecuador, they are certified as well because their largest export market is the U.S. And the shrimp that they export is world class at a world-class level. Its players to America or China or Europe, and they have tax benefits, benefit in terms of various barriers. They have all the certification. Unknown Analyst: And the margin compared to us -- the gross margin, the average is not different? Peerasak Boonmechote: Not that different, it depends on the situation. The margin was affected by many different things. It's the portfolio, the product mix, the raw material costs, the factory management, the debt that we believe is quite similar. Unknown Analyst: You said 18% to 20% for the gross profit margin in your guidance compared to last year. I know that last year was a special year. The assumption that you're using, what's the assumption for fish meal and the soybean meal? Why are you able to achieve 18% to 20% for gross profit margin? Peerasak Boonmechote: The first quarter is a low season. We adjust our guidance every quarter, but this is standard and it depends on the real-time performance as long. Some raw materials increase prices, some raw materials decrease, they offset one another. So our costs are relatively stable [indiscernible] in the first quarter, it's a low season and will peak in the second and third and fourth quarters. Unknown Analyst: That means that the margin is according to your guidance, right? In the second third and fourth quarter, you'll adjust -- so how -- what is the outlook for the first quarter. Peerasak Boonmechote: For the first quarter will be a low season relative to the [indiscernible] end of the year to the gross profit. There's a small volume. The volume increases in the following quarters, the gross profit will increase. The main variable is the prices of the fish meal, which is on an upward trend. It may not increase as high as in the fourth quarter as we saw earlier. Other raw material prices are not changing that much. Unknown Analyst: You look at low season, right? We're looking at a decrease in the prices the profit for the first quarter year-on-year, what do you expect? Peerasak Boonmechote: We expect growth in line with our guidance. Pinyada Saengsakdaharn: Are there any other questions? Unknown Analyst: Look at production [indiscernible] what percentage do you expect total capacity in Ecuador. Peerasak Boonmechote: Looking at 8% to 10% [Technical Difficulty] would like to update as the [indiscernible] 2026. The strategies for this year was indicated before we are looking at 8% to 10% growth. Last year was an average of 12% to 15%. We will continue to grow this year as well. We will grow in the high margin products. Our shrimp feed share in Thailand production is not increasing towards 250,000, that's flat. Since this year to be about 250,000 as well. We're looking at about 320,000 [indiscernible] for our shrimp [indiscernible] market share, means we have to increase our shrimp feed with care. Despite the fact that shrimp feed is not increasing overall. We will capture more of the market share. Seabass feed is about [indiscernible] we will continue to [indiscernible] to achieve in that area. We will include our market share and seafood, Seabass feed and we want 10% to 15% and is our final destination and for exports. There are many things for us to consider and we will talk more about that in the second quarter. We will be able to provide a better picture for the [indiscernible] we have many countries. [indiscernible] portfolio whether shrimp feed or fish feed, [indiscernible] every portfolio for us is growing. We are looking to move to focus on sustainability and on innovation in line with our scientific and our world class businesses [indiscernible] the entire group, so that our globe rate [indiscernible]. More concerned about our sustainability [indiscernible] communication to farmers and [indiscernible]. In the next quarter and we are taking more action [indiscernible] with the farmers and we are working [indiscernible] demand, the supply chain and we are wondering well our [indiscernible] in the various reasons and to help the farmers and [indiscernible] we work closer with the farmers. That is our key pillar because we want the farmers to be confident in us to help them build the market. If the farmers can grow and the exports can grow, the supply chain can grow. Therefore, we have to make sure that everything in terms of the farmers in the country are strong. This will support our portfolio. And our investors in Ecuador [indiscernible] is another pillar for us. This is depending with SKUs for abroad looking at risk management. Everything is according to our road map. We are still on track, [indiscernible] the road map that we shared with you a few years before. We want to achieve our 2030 targets, and that is our game plan. Unknown Analyst: In the past 2 years, your dividend payout was quite high. It was 100% and then 80%. And after this, you have projects where you will be using -- you need a lot of funding. So how will -- what will your dividend payout look like? Thiraphong Chansiri: We'll have to balance investment and dividend payout, of course, but we will not be lowering our dividends lower than 50%. Of course, it will not be lower than 50%, even though we're going to be investing for the future. We will continue to follow our policy of no less than 50% dividend payout. Unknown Analyst: I'd like to ask about the target market share, especially for the market share for the shrimp business for 2024 and 2025, 2026, [indiscernible] Seabass for 2024, which are 38%, 45% is still in 2025 [indiscernible]? Peerasak Boonmechote: [indiscernible] in 2024 was only 7%, [indiscernible] expect growth every year. The size and the productivity in Thailand is not increasing and for shrimp feed we continue to see growth in the past few years, we had that. In 2024, the market share was about 27%, if I remember correctly. Have 16% [indiscernible] A challenge to increase to 120,000 tonnes overall sea sales in Thailand is 250,000 tonnes. We want to provide about 120,000 tonnes that [indiscernible] that's how we're going to drive the margin for our seabass feed and shrimp feed together with our portfolio management for our foreign investments or for our foreign clients and our exports and we will continue to engage with the farmers. We had our BOI investment last year. The game plan for this year is to use our production capacity and we will increase production without having to invest more in production. We already did so in the year before. If we have a product mix -- a favorable product mix, and we can continue to grow in shrimp feed and fish feed, we will have more volume in the freshwater fish. Our capacity will be able to maximize the utilization of our capacity. So overhead, of course, will go down. And the overall cost will reduce. The keyword for us is to maintain the level of SG&A. Selling prices are not changing and this will allow us to achieve our target. That is the game plan that I like to share with you. Pinyada Saengsakdaharn: Are there any other questions? We have no aligned question. [indiscernible] for 2026, this will transfer the prices. Raw material prices, as we indicated before, the fish price is increasing. We continue to monitor weekly and [indiscernible] soybean meal and wheat flour prices are stable, and we also continue to keep an eye on these two. We try to lock in the prices 3 to 6 months in advance so that we can control raw material costs at a manageable level. We're not hoping to buy at the cheapest price, but at a price that is acceptable to our operations. As there are no further questions, this is [indiscernible] for 2025 and 2026. So for today, we would like to conclude this session. Thank you for joining us. [Statements in English on this transcript were spoken by an interpreter present on the live call.]
Operator: Greetings, and welcome to the AMH Fourth Quarter 2025 Earnings Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Nick Fromm, Vice President of Investor Relations. Thank you, Nick. You may begin. Nicholas Fromm: Good morning, and thank you for joining us for our Fourth Quarter 2025 Earnings Conference call. With me today are Bryan Smith, Chief Executive Officer; Chris Lau, Chief Financial Officer; and Lincoln Palmer, Chief Operating Officer. Please be advised that this call may include forward-looking statements. All statements other than statements of historical fact included in this conference call are forward-looking statements that are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected in these statements. These risks and other factors that could adversely affect our business and future results are described in our press releases and in our filings with the SEC. All forward-looking statements speak only as of today, February 20, 2026. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. A reconciliation of GAAP to non-GAAP financial measures is included in our earnings press release and supplemental information package. As a note, our operating and financial results, including GAAP and non-GAAP measures, are fully detailed in our earnings release and supplemental information package. You can find these documents as well as SEC reports and the audio webcast replay of this conference call on our website at www.amh.com. With that, I will turn the call over to our CEO, Bryan Smith. Bryan Smith: Welcome, everyone, and thank you for joining us today. After our team delivered a solid quarter 2025, the new year is off to a busy start. Before we dive into our results and outlook, I would like to address the executive order the administration issued last month, showing its focus on housing affordability and the role that single-family rentals play. We appreciate the attention to this critical issue and continue to emphasize that AMH is part of the solution. Alongside our industry peers and partners, we are actively engaged with government and business leaders in Washington and around the country. These meetings have been encouraging as we continue to work with policymakers on the challenges of affordability, which will require sustained investment and collaboration across both the public and private sectors. Millions of Americans call single-family rentals home. In fact, consistently since 1965, roughly 1/3 of households in the United States are renters. This includes first responders, educators and health care providers who rely on this option to live in the communities they serve. Our homes provide access to the same desirable neighborhoods at a fraction of the estimated monthly cost of homeownership. Further, a single-family rental home often represents an important step in a family's journey towards homeownership. Our surveys show that buying a home is the #1 reason residents move out of our portfolio. Over the course of 2025, we estimate over 5,000 households or approximately 30% of all move-outs left their AMH home to purchase a house. Our strategy has always been centered around providing quality housing and an exceptional resident experience. In our early years, we achieved this by renovating homes and revitalizing neighborhoods across the country. During that time, housing starts slowed dramatically, causing shortages in many of our markets. In 2017, we made the strategic decision focused on ground-up development to meet the growing demand for single-family rentals. Since then, our in-house development program has added over 14,000 newly built homes across the country. For the past few years, AMH has not been materially active buying homes on the MLS, instead, we've been an active seller. In 2025 alone, we sold over 1,800 homes to individual homeowners. In 2026, we expect similar activity. Proceeds from these dispositions continue to provide the necessary capital for our development program. In 2026, we plan to deliver around 1,900 newly constructed homes across the portfolio. And the foundation for our future growth remains centered around adding homes through our in-house development program. Now let's turn to our fourth quarter and full year results. In 2025, we delivered $1.87 of core FFO per share, representing year-over-year growth of 5.4%. Our consistent results not only demonstrate our commitment to operational excellence within the same home portfolio, but also underscores our approach to maximizing value across all areas of the business. Operationally, our teams did a great job navigating a challenging environment in the tail end of 2025, which included seasonal demand moderation and stubborn supply. This put downward pressure on rate and occupancy heading into the beginning of 2026. For the month of January, new, renewal and blended spreads were minus 1%, 3.5% and 2.4%, respectively, while same-home average occupied days was 95%. Throughout the first quarter, our focus will continue to be on occupancy with our outlook for 2026, contemplating a flatter seasonal curve or rate growth occupancy than we would normally expect. Chris will cover guidance in more detail later in the call. As we look ahead, it is clear that there is a growing need for more high-quality housing in America. AMH with its well-located homes, outstanding resident service and new home development program is committed to doing its part. Thank you to the team for your hard work last year and your continued commitment to excellence. With that, I'll turn the call over to Chris. Christopher Lau: Thanks, Bryan, and good morning, everyone. As usual, I'll cover three areas in my comments today. First, a brief review of our year-end results, second, an update on our balance sheet and recent capital markets activity. And third, I'll close with an overview of our 2026 guidance and capital plan. Beginning with our operating results, we closed out 2025 with solid execution, generating quarterly net income attributable to common shareholders of $123.8 million or $0.33 per diluted share and $0.47 of quarterly core FFO per share in unit, representing 4.1% year-over-year growth. And for full year 2025, we generated net income attributable to common shareholders of $439 million or $1.18 per diluted share and $1.87 of core FFO per share in unit, representing 5.4% year-over-year growth, once again leading the residential sector. From an investment standpoint, during the quarter, we delivered 490 total homes from our AMH Development program. This brings our full year deliveries to over 2,300 homes contributing much needed newly constructed housing stock to 14 markets across the country. On the disposition front, we had another active quarter selling 646 properties, generating roughly $190 million of net proceeds. For the full year, we sold 1,827 properties for total net proceeds of approximately $570 million at an average disposition cap rate in the high 3%. As a reminder, our disposition properties are regularly sold to individual homeowners and provide us with a highly attractive form of capital to reinvest back into our AMH Development program. Next, I'd like to turn to our balance sheet and recent capital activity. At the end of the year, our net debt, including preferred shares to adjusted EBITDA was 5.2x, our $1.25 billion revolving credit facility had a $360 million balance, and we had approximately $110 million of cash available on the balance sheet. During the fourth quarter of 2025 and January of '26, we fully utilized our remaining $265 million share repurchase authorization and repurchased a total of 8.4 million common shares representing approximately 2% of total share units outstanding. These shares were repurchased at an attractive price of $31.65 per share representing an attractive capital deployment opportunity complementing the long-term value created by our AMH Development program. Next, I'd like to share an overview of our initial 2026 guidance. For the full year, we expect core FFO per share unit of $1.89 to $1.95, which at the midpoint represents year-over-year growth of 2.7% and for the same home portfolio. At the midpoint, our expectations contemplate core revenues growth of 2.25%, which reflects average monthly realized rent growth and the 2.5% area and a 25 basis point year-over-year occupancy headwind as we expect 2026 average occupied days in the high 95% area. Additionally, our outlook contemplates core property operating expense growth of 2.75% driven by property tax growth in the 3% area, representing another year of below average growth and mid 2% growth on all other expenses, driven by another successful insurance renewal campaign and our continued commitment to efficiently managing controllable expenses. Putting together, our same-home revenue and expense growth expectations, we expect 2026 same-home core NOI growth of 2% at the midpoint. From an investment standpoint, given the current capital market conditions, we have strategically moderated our development plan activities such that we expect to deploy approximately $750 million of total capital, including joint ventures, adding approximately 1,900 new to constructed AMH development homes to our wholly-owned and joint venture portfolios. Specifically, for our wholly-owned portfolio, we expect to invest approximately $550 million of AMH capital, consisting of 1,400 homes added from our development program that we plan to fund entirely to recycled capital from our disposition program. Additionally, our full year outlook only contemplates the $115 million of share repurchases that were already executed in January. While the stock price continues to represent an attractive capital deployment opportunity, given the recent attention on our industry and ongoing capital market uncertainty, we plan to take a patient approach to the timing of any additional repurchases. However, as we continue to monitor the market. As mentioned in yesterday's release, our Board recently approved a new $500 million share repurchase authorization. Additionally, keep in mind that our balance sheet has a couple of hundred million dollars of opportunistic capital capacity given the strategic sizing of this year's development activities. And before we open the call to your questions, I wanted to close with a few final thoughts. 2025 was another great example of the power of the AMH platform, as we delivered another year of residential sector-leading core FFO growth. As we head into 2026, we remain committed to the AMH strategy, which has demonstrated our ability to create differentiated value for our residents, local communities, team members and shareholders. And with that, we'll open the call to your questions. Operator? Operator: We will now be conducting a question-and-answer session. [Operator Instructions] Our first question comes from the line of Eric Wolfe with Citibank. Eric Wolfe: Can you just talk about why you're expecting a flatter occupancy and rent growth curve than you normally expect? And I guess, specifically what that means for your blended rate growth expectation? And then I guess, lastly, on the occupancy, you said that you're expecting it to be flatter this year as well. But if I look at your fourth quarter, you're down like 30 basis points year-over-year. And I think that's what you're expecting through the full year of 2026. So I guess why -- I guess it seems to me like you're expecting something more sort of seasonal like you saw in 2025. So just help us work through both those elements. Lincoln Palmer: Yes. Thanks, Eric. This is Lincoln. As we come into 2025 or 2026, excuse me, we're seeing the start of leasing season that we would normally see, maybe slightly delayed from where it was in previous years. We also -- as we talked at Dallas NAREIT, we had expected to build a little bit of occupancy coming into the end of 2025 and kind of start the year in a position of strength. Despite some price action, we came in a couple of hundred houses behind just to put some context behind where we sit today. So starting the year, we're highly focused on kind of building occupancy throughout leasing season, supported by some price action and then expect a flatter kind of peak of that occupancy and then holding more into the back of the year. And specifically to your question about fourth quarter and typical trends there, we expect that hold in the back half to be supported by not only the flat new lease rate growth that you're seeing now, but a favorable expiration curve again for 2026. Christopher Lau: Yes. And then Eric, it's Chris. Just to make sure I kind of understand some of the numbers behind what Lincoln was talking about. On the full year context, we're thinking about new leases and about the flattish area for full year '26 renewals kind of consistently in the plus or minus 3% area on the full year. That then comes to our full year blended spread expectation in the low 2s. And as you heard us talking about in guidance view around occupancy being in the high 95s, which, to Lincoln's point, the focus right now is on occupancy through the first quarter, building a bit into the middle of the year. And then the objective is to hold and flatten that curve into the back part of the year. Operator: Our next question comes from Jamie Feldman with Wells Fargo. James Feldman: I appreciate the thoughts on the seasonal curve. Maybe just as you thought about giving your guidance for the year, I mean, there's a lot of moving pieces out there on the political front, on the demand side, on the supply side, where would you say there's the most variability to your numbers? And maybe talk us through the high end, the low end of the range and what gets you to either end across the key line items. Bryan Smith: Thanks, Jamie. The other thing that we're looking at this year is we've contemplated the building blocks of the guide is just the environment that we start the year end. Normally, as we kick off the season, the 200, 300 house pickup that we're looking for probably isn't that big of the list. The challenges in the current environment is that supply across all aspects of residential, different housing types seems to be stubbornly elevated. We see that in multifamily. We see that on the first sale side with some of the [indiscernible] rent conversions and then some BTR that's sticky in some of the markets. Again, it's highly -- it's highly market-dependent. And we have markets where supply just is not an issue overall, but some of those markets that we've talked about before that took those high levels of deliveries that outpaced absorption over the last couple of years. Continue to struggle to work through that. On the demand side, we're seeing great demand for AMH products still. The traffic this year is not outside of normal year-over-year fluctuation. But again, set against that backdrop of higher supply levels, it just seems like our prospects have more choice in the marketplace. And that's leading to some slightly extended lease-up times, but any dislocation in those supplies, we view as being temporary related to those suppliers, just in the long-term outlook for demand for AMH homes hasn't changed in most of our markets. Operator: Our next question comes from the line of Steve Sakwa with Evercore ISI. Steve Sakwa: Just wanted to focus a little bit on the development pipeline. I mean it sounds like you're slowing deliveries a little bit and being a little bit more cautious, I guess, certainly given the capital markets environment. But like where are you seeing development yields for the product you're starting today based on today's rents and today's cost? What can you get? And I guess, how do you weigh deploying capital there against the buybacks? I know you're being probably a little bit cautious given the political environment, but sort of how do you weigh those two things today? Bryan Smith: Steve, this is Bryan. Thanks for the question. I'll start with what the pipeline looks like kind of round out how we completed 2025 as well. As we talked about last year or in November, the -- going in delivery development yields and active projects was slightly lower than the 5.5% we thought, we'd get hit at the beginning of the year, really indicative of just general rent pressures across all of residential. So we ended last year somewhere in the 5.3% area ongoing in yields. And we're expecting similar yields in 2026 for the 1,900 homes that we're planning to deliver. Highly dependent on rent movement, but in the current environment, similar to 2025 is what our outlook is. And those are the ones that are in play right now or soon to be actively started. Christopher Lau: And then, Steve, Chris here, just from a capital perspective, I think the key to all of this is appropriate sizing of capital. Everyone saw that we made a pretty quick pivot in terms of sizing of capital towards the end of 2025. And you can see that we pivoted further heading into 2026 sizing the on-balance sheet portion of development capital deployment to essentially be match funded with disposition proceeds for this year. On top of sizing to the development program, that then frees up incremental capital capacity for buybacks that can function as a nice complement to the development program and the long-term value creation there. You saw that we were active on that already, repurchasing in about 2% of shares and units outstanding towards the end of '25 and beginning of '26, and we have capacity on the balance sheet for about a couple of hundred million dollars of incremental opportunistic capital deployment. But as I mentioned in prepared remarks, and [indiscernible] actually mentioned in your question, there's a lot of different moving pieces out there right now. And so we're going to make sure that we remain prudent and if we be patient in terms of how quickly we're moving on additional repurchases at this point. Operator: Our next question comes from the line of Haendel St. Juste with Mizuho Securities. Haendel St. Juste: Maybe some color on OpEx. You outlined expectation for tax, I think going to be up 3%, 4 to 5 -- sort of the 4% to 5% long-term average we've seen. Is there anything unique worth highlighting? Do you think this is a sustainable level near term? And maybe some color on turnover, what you're expecting in your recent insurance renewals. Christopher Lau: Sure, Haendel, Chris here. Yes, look, on property taxes, overall, I think it's probably helpful to point out the fact that 2025 actually ended up being one of our lowest property tax growth years in company history, down in the 2.5% area. And as we move into 2026, we're expecting another year of what I would call moderate property tax growth in the plus or minus 3% area. A touch above 25%, but still well below long-term average, long-term average for us is 4% to 5%. Recall one of the things that drove our property tax growth of 2.5% last year is that it was actually one of our best years ever in terms of appealed outcomes. And at least at the start of '26, probably not totally prudent to expect that we'll have two record back-to-back years on appeals. But nonetheless, 3% is something that I would still call very much in the maybe cooperative areas, the right characterization. And in terms of other components of expense growth for this year, our outlook also contemplates about a double-digit decrease in year-over-year insurance costs. That is based off of our successful renewal campaign that becomes effective at the end of this month. And then for remaining expenses, controllables in particular, we are expecting growth in, call this, 3-ish area or so that I think represents another year of tight expense controls. Operator: Our next question comes from the line of Jeff Spector with Bank of America. Jeffrey Spector: Great. If you could talk a little bit more about the supply pressure you saw in '25, what surprised you, would be a little bit more specific in terms of markets. And how that may impact your strategy going forward on markets? Again, Midwest continues to outperform. Do you want to try to lean in more there? given the pressure you're seeing, let's say, in the Sunbelt and your thoughts on that supply pressure in '26. Lincoln Palmer: Thanks, Jeff. This is Lincoln again. When I look at the individual markets, you can see the performance of most of those in the fourth quarter in the supplemental. If you just walk down across, you can see the footprints of the supply impact in those numbers. And again, I would just anchor back to the idea that the build in inventory and the standing accumulation of availability across all of the different product types is the result of those deliveries heavily outpacing in some markets. The absorption. I think all of us are relieved to see the starts and deliveries have slowed. Those are on the downswing, but we also understand that there is still some of the outstanding inventory that needs to be consumed. When I look across those markets, those that are heavily impacted, and they're impacted for different reasons. San Antonio, as an example, took heavy deliveries of multifamily. And so there's a lot of standing inventory there, and you can see that in the results. Phoenix is probably one of the epicenters for build-to-rent. And there's still some, albeit different product than ours, but still some levels of inventory on the build-to-rent side there. And then Las Vegas is one where we've probably seen a little bit more of for sale to for rent conversions and more competition from traditional landlords. So when it comes to the Midwest, we talked about this quite a bit. The underlying fundamentals there are still strong. We don't anticipate those changing in the short term. They did not take some of those high levels of deliveries of different types of product over the years. So there's still supply constrained to some extent, still relatively affordable, still a great place to live. And in the short term, that's not going to change. So we're watching the markets carefully and committed to most of them for the long term. Operator: Our next question comes from the line of David Segall with Green Street. David Segall: Recognizing that you're going to take a more patient approach to additional buybacks this year. Would you need additional sales activity dispositions in order to fund any additional buybacks? And I recall that you had 20,000 homes that were released from collateral from being securitized, it's collateral last year. Would we see that as a source of additional funding this year? Christopher Lau: Sure. David, Chris here. We're thinking about sizing of buybacks in general. I think one of the most important things to remember is the importance of balance in our approach, right, where we are balancing the importance of keeping the development program in motion, which is mission-critical, especially for long-term value creation. We're balancing that with maintaining our commitment to the balance sheet and targeted leverage levels, balanced with a, what I would call, a robust, but also responsible level of dispositions. . And so as we think about incremental buybacks from here, as I mentioned in prepared remarks, today and over the course of the year, there is, I would call it, a couple of hundred million dollars of incremental capital capacity already on the balance sheet in the form of leverage capacity. And then beyond that would be the opportunity to recycle additional capital through the disposition program. You are exactly correct in that we are of the view that there's a pretty good healthy runway of disposition opportunity ahead of us, especially given the fact that we recently freed up 20,000 homes that were previously encumbered by our securitizations that were paid off over the last couple of years. But the natural governor there, like we've talked about plenty of times, is just how quickly those homes that are being identified out of those previously collateralized homes can actually be sold. And the governor there is the fact that we are selling homes in our disposition program ultimately to home buyers via the MLS and to sell a home to a home buyer via the MLS it needs to be vacant as we all know. And as we also know, 95% of the portfolio is not vacant. We take our responsibility as a housing provider, extremely serious and we will never take housing away from an existing resident to sell a home, which means we need to let leases roll, tenants moved out, and then we can prep the home for sale, which creates a little bit of a governor in terms of how many homes can actually be sold in one given year. Operator: Our next question comes from the line of Buck Horne with Raymond James. Buck Horne: I was curious if you could comment a little bit about the news from the White House last night about potentially capping the single-family or the investor band at about 100 homes per organization. So if that's a much lower cap than previously contemplated, just going through a thought exercise of how do you think that plays out in the industry? Does that potentially force a lot of subscale operators to either pull rental inventory out of the market or sell inventory quickly. What do you think those other smaller tier operators are going to do if that type of cap is in place? Bryan Smith: Buck, this is Bryan. Thanks for your question. There's obviously been a lot of attention on this issue this year. We've been actively engaged with policymakers at the state, local and Federal level. If you go back to the executive order, there was -- the first part was defining the size and definition of institutional investor, which was -- the treasury was tasked with 30 days. And I think the 30 days is up today. So whether that ends up being a 100 or some other number remains to be seen. There's a lot still moving in the definitions and just on how this is all going to ultimately shake out. But as you know, we've been investing heavily into our government affairs efforts for years. Active engagement allows us to be at the center of a lot of these discussions and really get our message across that we are a key part of the housing solution, especially as we're addressing the supply shortage with our in-house development program. And the mechanics of how it affects smaller operators versus larger build-to-rent versus, versus scattered side are still unclear. But the good news is from these meetings, there's a clear understanding that supply has not kept up with demand and supply solutions are continuing to be sought. The other key piece that we're as an industry with our partners are trying to make sure realizes the importance of single-family rentals in the full housing ecosystem. So those are the types of messages that we're working on, as I mentioned in my prepared remarks, but how it shakes out still remains to be seen. Operator: Our next question comes from the line of Brad Heffern with RBC Capital Markets. Brad Heffern: Yes. Obviously, I appreciate all the color on the supply impacts. When do you think we're going to be in a more normal environment just from a supply-demand balance standpoint? . Lincoln Palmer: Brad, this is Lincoln. I appreciate that question. I think it's one that's been asked quite a bit over the last year or two. It's really going to depend on how quickly we can consume through -- as a housing industry we consume through that standing inventory. That's going to depend on demand. Like I mentioned before, the demand is still there for our product, but it's going to take some time to work through the inventory. So I'm not ready to call that yet. I think we don't have a view necessarily on when that's going to turn around. What I will tell you is we have better data and insight into that than we ever have. And we're watching it extremely closely, and we're ready to adjust as soon as we see some leading indicators that tell us that it's improving. Operator: Our next question comes from the line of Jesse Lederman with Zelman. Jesse Lederman: When you spoke in late October, you noted your internal dashboards were indicating some inflection point in seasonal leasing activity. But it looks like in November versus December, occupancy was lower sequentially and that's continued here in January. So what changed over the subsequent few months relative to your expectations in October? And if you could just talk through the renewal rent growth falling roughly that 70 basis points [ sequentially ] into January. That would be great as well. Bryan Smith: Yes. Thanks, Jesse. Yes, fourth quarter was a little bit of a tough time from a visibility standpoint. We did start to see some moderation as we saw across the housing landscape in general, I think -- there were some fits and starts, where we saw in November as an example, we started to see a pickup in activity. As we talked through that, our expectation was that we would build occupancy through the end of the year, and again, come into the first of the year like we normally do it in a good occupancy position, that wasn't sustained. We adjusted our pricing strategy and some other things that led to that slightly negative new lease rate growth in the fourth quarter, but it didn't quite turn out the way that we thought it would. So -- we're pulling out all the stops at the first of the year here to support occupancy. Our goal is again to build through peak season and focus highly on making sure that we have occupied homes. That is supported by the new lease rate growth that you've seen, but -- to your other question, a slight moderation in renewals, just recognizing the fact that we -- the components of building that occupancy or new leasing and retention inside the portfolio. So we wanted to support the retention a little bit. We're setting those renewal rates out well in advance. So those went out for January and February, right about that same time, we were contemplating some of those other changes in the marketplace. So overall, I think we're in the right place on the renewals as well, slight moderation, but full year around the 3% area should go to where we need to be on the occupancy. Operator: Our next question comes from the line of Michael Goldsmith with UBS. Michael Goldsmith: Can you talk a little bit about pricing trends at the build to rent versus the scatter site product? And are you offering concessions at either or both of those segments in your portfolio? Bryan Smith: Michael, this is Bryan. Thanks for the question. Pricing trends, it's interesting. We talked -- or I talked earlier in the call about where the 2025 yields settled is really a function of the rate environment. But if you were to compare our community leasing with scattered site. We've seen pretty favorable demand for our communities. We've been leasing them up without concessions, no concessions on the scattered site and really no concessions on the lease-up of the new development communities as they're being delivered. It's really interesting, too, because as we talked about in the past, these are homes that are being delivered into active construction sites, and we're still supporting good rent without having to do a lot on the concession side. And to kind of add on to a little bit of what Lincoln has been talking about with supply and demand, when that supply pressure starts to be alleviated and hopefully, in the near term, we're going to see the benefit on our new development product. It's a superior product. The rents at a premium. There's a lot of demand for it and the pricing power will return there, and you'll see yields migrate north on our development new deliveries as well. Operator: Our next question comes from the line of Jade Rahmani with KBW. Jason Sabshon: This is Jason Sabshon on for Jade. So homebuilders have leaned in or rate buydowns and incentives lately. Can you comment on the supply-demand balance in key Sunbelt markets and whether you're seeing that aggressiveness from builders drive any increase in move-outs to buy. Bryan Smith: Yes. Thanks for the question, Jason. Again, it's the for-sale markets, one portion of the supply that we watched very carefully. Our moved out to buy has remained pretty steady in the high 20s to 30% area. So we haven't seen a major shift. There are some anecdotes in some of the markets about incentives outside of rate buydowns. As an example, some of the the builders in our Florida markets got pretty aggressive, and we're willing to buy out some of our leases for our residents who were interested in buying homes. We're watching that very carefully. It's happening on the fringe, again, not affecting the overall trend. And then, of course, I think everybody is also interested in how many of the those for-sale homes are coming back into the portfolio or into the overall inventory. And we're watching that carefully as well. So not a huge impact so far, just small anecdotes of builders trying to respond to do their part to give some market share. Operator: Our next question comes from the line of [ Jason Wayne ] with Barclays. Unknown Analyst: Thanks for the question. Looking at the development pipeline, you have some lots in some markets outside of the Sunbelt, like the Midwest and in the West Coast -- just wondering where the delivery this year located and where you'd have the preference for starting new developments. . Bryan Smith: Yes, thank you. This is Bryan. In our development program in the Midwest, it's focused on Columbus. And if you look at our supplemental, you can see what the lot pipeline is behind that. We really like the Columbus market. We really like a number of the markets in the Carolinas. Seattle has been strong as well. So you can see the pipeline there, and we're looking forward to delivering really good product into those high-demand markets. And then some of the other markets where we have a significant development presence, we feel very good about those markets over the long term, but there may be some short-term pressures referring more towards the lot pipeline that we have in places like Arizona and Las Vegas. Operator: Our next question comes from the line of Eric Wolfe with Citibank. Eric Wolfe: Thanks for taking the follow-up. Looking at the changes in your same-store pool, your third quarter occupancy was 95%, like as reported last quarter, and now it's 96.4%. So there's a similar like a 50 basis point change based on what you sold. I guess what is the reason for that? I mean is it -- are you selling more vacant homes than normal? Why was there such a sort of jump in the occupancy based on the new same-store pool? Because obviously, it creates a little bit of a more difficult comp for you. Christopher Lau: Eric, Chris here. Essentially, what you're seeing is the result of smart asset management decisions where we are identifying some of the outlier and/or underperforming properties through our asset management process for disposition. And so over time, as we are identifying those underperformers, they're moving their way into the disposition program and ultimately being sold. Obviously, that has an upward improving lift to the remainder of the same-store pool. There's always a little bit of movement from one quarter to the next usually not terribly large, but it's a function of making smart asset management decisions at the unit level. Eric Wolfe: Okay. And then last question. You normally have a pretty good idea, not perfect, but good idea of sort of what forward occupancy looks like and I know it can miss based on various factors. But I guess, as you look at things 30, 60 days out based on your revenue management system, are you seeing that typical lift in occupancy that you normally see at this time of year, especially since you've throttled baked down a bit. Just curious if you can give us a perspective on sort of where you expect to go over the next couple of months? Lincoln Palmer: Yes. Thanks. This is Lincoln again. As I mentioned before, a little bit slower start to the leasing season than we would have preferred. However, we are seeing the normal trend in activity that's moving upwards. So again, with the focus on building occupancy, we'd expect to move into the 96s of the peak of season and then again, hold some of that into the back of the year. So -- over the next couple of months, we would expect if we execute well, that we'll see the occupancy goal. Operator: Our next question comes from the line of Austin Wurschmidt with KeyBanc Capital Markets. Austin Wurschmidt: Great. Beyond the supply challenge markets that you've discussed, is the moderation you're assuming in guidance around lease rate growth or that flatter seasonal curve that you described. Is it broad-based? Are you seeing it more pronounced than either the Sunbelt or Midwest markets? And then on top of that, just curious how much that's playing into your development decisions. Lincoln Palmer: Maybe I'll just give some commentary on the overall market and then Bryan or Chris want to comment on the development they can. Yes. Look, again, I think that what we're seeing is the effect of broad-based supply across all housing types. It is very market specific, and I wouldn't want to point to one factor that would look like it's affecting all of our markets, especially equally. Like I said earlier, we have many markets that are not supply pressure at all. Take a Seattle and Salt Lake City as an example, where not only they have not had heavy deliveries over the last couple of years, but they're also significantly geographically constrained. It's difficult to build inventory into those markets. So it's not equal across all of them, and we evaluate each of them individually. Christopher Lau: Yes. And then Austin, Chris here. On your -- the second part of your question around development. Look, the development program sizing is a function of relative returns, yields coming out of the development program compared to capital market conditions and cost of capital currently. As Bryan was talking about, right now, one of the larger drivers to the current yield profile is market rent growth. The other side of the equation in terms of construction. The teams have done a fantastic job controlling costs throughout the development program. I forget if we mentioned this data already. But if you look at the hard vertical construction costs to develop a home in 2026, they're essentially flat to even modestly down 2020 -- sorry, 2025 compared to 2024, which is fantastic, right? But ultimately, sizing in the development program is a function of relative returns and yields compared to capital market conditions and cost of capital and alternative uses of that capital and freeing up some extra capacity for repurchases like you've already seen us be active on. Operator: Our next question comes from the line of Buck Horne with Raymond James. Buck Horne: Thanks for the followup. Appreciate the time. Wanted to talk about the dispositions that were executed in not only the fourth quarter just year-to-date? Just thinking through the -- what you've been able to sell with the, it looks like net proceeds were just a shade under $300,000 per house. Most of your markets median resale prices are probably closer to $400,000, how would you characterize kind of the tier of the dispositions that you're selling? Are these houses typically lower quartile or the middle of the road? Or are they fairly representative of the value of the homes in the portfolio? How should investors think about that? Bryan Smith: Yes. Thanks, Buck. This is Bryan. The typical property that we're disposing of that we're selling really is a noncore asset. And in many cases, it's maybe not the location that we want or there are other characteristics that, that just make it have a different growth profile to the rest of the assets. So I think it's fair to say that this average sales price would be lower for that cohort than the rest of our -- of our homes, especially the new homes that we're delivering on the development side, which are superior quality and location. But the #1 reason for disposition for us is location. A lot of it is the fact that we finally getting access to homes that we acquired via consolidation in the past, many of which were subsequently securitized. So we're getting access to some product that might be a little bit -- maybe a lower level than what's typical across our portfolio. Operator: Our next question comes from the line of Brad Heffern with RBC Capital Markets. Brad Heffern: Thanks for taking the followup. Chris, just given all the political noise, do you have an elevated level of advocacy costs or anything like that, that are in G&A and that are having an impact on the guide? . Christopher Lau: Yes. Good question. I appreciate you asking. As everyone knows, we started investing into our own government affairs teams, department, resources and initiatives years ago at this point. And so there's already just a structural component of our cost structure represented by government affairs and advocacy-related costs. . Again, we're expecting to incur those in 2026. Each year, those dollars and resources are directed a little bit differently. Obviously, this year, those will be directed towards the current matter at hand. The right way to think about it is a little bit under $0.01 or so is what just regularly run through our numbers each year. And then as we progress throughout the course of this year to the extent that those numbers change, we need more or what not difficult to crystal ball that at this point. But to the extent that those numbers change, we will make sure that we call them out separately. So everyone can clearly understand those dollars separate and apart from the run rate cost structure of the business. Operator: Our next question comes from the line of Steve Sakwa with Evercore ISI. Steve Sakwa: I just wanted to follow up on the dispositions. What constraints, I guess, outside of tax issues that you have around dispositions, meaning you want certain size of homes or certain scale in the market. So to what extent are your dispositions limited by you wanting to have a good footprint in each market as you think about kind of the disconnect between kind of the sales values and kind of where the stocks trading. Christopher Lau: Yes, Steve, Chris here. I can start that one. Look, there's a number of different perspectives that we need to think about dispositions through tax planning is definitely one of them. The other piece, like I was talking about earlier is just the natural timing governor in terms of how many homes can be sold in any one given year. . Considering how much collateral has been freed up from our securitizations like we were talking about. We are of the view that there's a pretty good runway of disposition candidates ahead of us. But the natural governor there will be the sheer volume of those that can be sold in any one given year, given the fact that we need to let leases roll, residents moved out, then homes can go into the market. At that point, they move quickly. But obviously, leases need to roll first. That's the main governor in consideration. We're thinking about the amount of volume that can be done in any one given year. Bryan Smith: Steve, this is Bryan. Further to your question on market sizing, our operating platform has proven to be very efficient at different sizes. What we're doing is we're looking at these houses at an individual level and finding the ones that are noncore, have different growth prospects than then we could find on the development program as an example. We're able to strategically prune these houses and then reinvest them in areas with better long-term growth. Operator: There are no further questions. I'd like to pass the call back over to management for any closing remarks. Bryan Smith: I'd like to thank everyone for your time today. We appreciate the continued interest in AMH and look forward to speaking with you next quarter. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Operator: Good day, and thank you for standing by. Welcome to the Casella Waste Systems, Inc. Fourth Quarter 2025 Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Brian Butler, Vice President of Investor Relations. Please go ahead. Brian Butler: Thank you, Marvin. Good morning, and thank you for joining us on the call. Today, we'll be discussing our fourth quarter and full year 2025 results, which were released yesterday afternoon. This morning, I'm joined with Ned Coletta, President and Chief Executive Officer of Casella Waste Systems; Brad Helgeson, our Chief Financial Officer; and Sean Steves, our Senior Vice President and Chief Operating Officer. After a review of these results, and an update on the company's activities and business environment, we'll be happy to take your questions. But first, please note that various remarks we may make about the company's future expectations, plans and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section on our most recent Form 10-K which is on file with the SEC. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views on any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, February 20, 2026. Also during this call, we'll be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures to the extent that they are available without unreasonable effort, are included in our press release filed on Form 8-K with the SEC. And with that, I'll now turn it over to Ned Coletta to begin our discussion. Ned Coletta: Thanks, Brian. Good morning from Rutland, Vermont. As my first earnings call as CEO, I want to begin by saying how honored I am to lead this exceptional team into the next chapter of Casella's growth. I'm energized by the opportunities ahead and confident in our ability to continue building long-term value for our shareholders, customers, and employees. We closed the fourth quarter with performance that reflects sustained organic growth, meaningful operating improvement, and continued strategic momentum across the business. For the full year 2025, revenues increased 18%, Adjusted EBITDA increased 17%, and adjusted free cash flow increased 14%. This marks our fifth consecutive year of double-digit growth across each of these three metrics, a testament to the durability of our business model and the strength of our strategic plan. Importantly, Adjusted EBITDA margins, excluding acquisitions, expanded 55 basis points year-over-year. Margin improvement was driven by disciplined collection pricing, higher landfill volumes, operational efficiencies, and synergy realization from prior acquisitions. We completed 9 acquisitions in 2025, representing over $115 million in annualized revenues. We started 2026 strong, and on January 1, we closed the Mountain State Waste acquisition, which adds approximately another $30 million in annualized revenues and expands our Mid-Atlantic segment into the West Virginia market. Our balance sheet remains a strategic advantage for us. We finished the year at 2.3x levered, with over $700 million in liquidity to fund future growth. Our acquisition pipeline remains robust, with opportunities to further densify within our existing footprint and growth options to selectively expand into geographically adjacent markets that align with our strategic plan. Now, looking at our 2025 segment performance. In our solid waste collection and disposal operations, revenues increased 20.3%, driven by disciplined organic growth and another strong year of acquisitions. Base collection and disposal margins, excluding acquisition impacts, increased 170 basis points year-over-year as we generated a positive price to cost spread, continued acquisition integration efforts, drove higher landfill volumes, mainly through internalization, and generated cost savings through operational optimization initiatives. In the second half of 2025, vehicle deliveries improved as expected, and we received 40 automated trucks that were delayed earlier in the year. We expect these vehicles, along with the associated labor efficiencies and route optimization, to generate more than $5 million of savings in 2026. Our team did a great job in the second half of 2025, advancing the key acquisition, integration, and system conversion initiatives in our Mid-Atlantic region. We have substantially completed the migration of customers from acquired billing systems to the integrated Casella Lead to Cash System, and we expect the remaining migration work to be completed by the end of the first quarter or very early in the second quarter. Once completed, we can start the real exciting work of rolling out additional automated trucks, consolidating routes, and optimizing pricing and profitability. We continue to make permitting progress on our expansion efforts at our Hakes and Hyland landfills in New York, with the Hakes permit expected in the next couple of quarters and the Hyland permit expected within the year. We are working to more than double the annual permit at Hyland from 460,000 tons a year to 1,000,000 tons, and we would also add close to 60 years of capacity at current run rate. At the Hakes C&D landfill, we're permitting a 10+ year expansion. These expansions are important with the expected closures in New York over the next several years, including the expected closure of the Ontario County landfill at the end of 2028. The McKean Landfill Rail Upgrade Project remains on track for completion in the second quarter of 2026. This will allow us to offload municipal solid waste, contaminated soils, and C&D materials from gondolas at the landfill. Our resource solutions segment also delivered a strong year, with revenues up 9.1% and segment adjusted EBITDA up 9.6%. This reflects strong national accounts performance and operational efficiencies from the upgraded Willimantic Recycling Facility. While current recycled commodity prices are trading at roughly 20% below 10-year averages, our effective risk management programs pass much of this commodity volatility back to our customers through the floating, processing, and SRA fees. These tried and true programs are effectively offsetting about 80% of all commodity downside risk, helping us to generate consistent returns on our recycling business in all market cycles. Pivoting to 2026, we exited the year with strong momentum and a solid setup for this year. Our frontline team has done an amazing job this winter, providing solid customer service through one of the coldest and snowiest winters we've experienced in over a decade. Despite these operational headwinds from the bad winter weather, we remain very confident in our outlook, driven by sustained pricing strength, continued self-help cost initiatives, automation benefits, and a very attractive acquisition pipeline over $500 million of annualized revenues. We're focused on both densification and strategic expansion opportunities. Our team is laser-focused on improving safety and employee engagement in 2026. We've added several key new safety and HR leaders to the organization. We're focused on process improvements, and we're investing in key systems such as AI-enabled onboard truck technology. With that, I'll turn it over to Brad to provide additional details on the fourth quarter performance and financial results. Bradford Helgeson: Thanks, Ned. Good morning, everyone. Revenues in the fourth quarter were $469.1 million, up $41.6 million, or 9.7% year-over-year, with $23.1 million from acquisitions, including rollover, and $18.5 million from same-store growth, or 4.3%. Solid waste revenues were up 9.9% year-over-year, with price up 4.4% and volume down 1.1%. Within solid waste, price in the collection line of business was up 4.6% in the quarter, led by 5.3% price in frontload commercial, and volume was down slightly at 0.3%, with modestly positive volume in frontload and residential, but weakness in roll-off, down 5.2%. Price in the disposal line of business was up 4.1% and third-party volume down 4.5% year-over-year. However, this stated volume decline is misleading for a couple of reasons. First, results at the landfills were steady, with same-store price up 2.5% and total tons up 1.7%, including nearly 10% growth in internalized volumes. Our reported numbers only refer to third-party volumes. Second, the decline was also largely driven by the transfer station and transportation businesses, with little net impacts to EBITDA. The important point here is that the landfill business is healthy, and we're confident heading into next year, as I'll discuss in a few minutes. Resource Solutions revenues were up 9.1% year-over-year, with recycling and other processing revenue down 1.4%, impacted by lower commodity prices, and national accounts up 15.6%. Within Resource Solutions processing operations, our average recycled commodity revenue per ton was down 27% year-over-year, with softer markets across the board and most commodities selling below 5-year averages. Notwithstanding market pressures, our contract structures share this risk with our customers by adjusting tip fees in down markets, so the net impact of lower commodity prices on our revenue was less than $1 million. Processing volume in revenue terms was up 12%, driven by higher volumes at the Willimantic Recycling Facility, which was down for its upgrade in the fourth quarter last year. Within national accounts revenue, price was up 3% and volume up 9%. Adjusted EBITDA was $107 million in the quarter, up $12 million or 12.7% year-over-year, with $3.3 million of contribution from acquisitions, including rollover and 9% organic growth. Adjusted EBITDA margin was 22.8% in the quarter, up approximately 60 basis points year-over-year. Bridging the year-over-year change in adjusted EBITDA margin, new acquisitions contributing at lower initial EBITDA margins than our overall business, diluted margins by 40 basis points in the quarter. The base business, excluding new acquisitions completed in the past 12 months, expanded margins on a same-store basis by 100 basis points, driven by the collection business across our footprint, including the Mid-Atlantic. Recall the privately held businesses that we acquire typically operate at lower margins, which can create short-term margin dilution. As we integrate these businesses, capture synergies, and apply our operating model, they become margin expansion opportunities over time, creating a regenerative benefit as we continue to execute our acquisition strategy. Cost of operations were $313.8 million in the quarter, up $27.2 million year-over-year, with $17.4 million of the increase from acquisitions and $9.8 million in the base business. Excluding acquisitions, costs of operations were down 60 basis points as a percentage of revenue on a same-store basis. General and administrative costs were $55.9 million in the quarter, up $3.7 million year-over-year. As a percentage of revenue, G&A was down 30 basis points year-over-year, reflecting increased IT spend, but also favorable incentive comp accrual adjustments. From a G&A standpoint, 2026 will be a pivotal year as we lay the groundwork with better systems and process for becoming more efficient in our back office and generating better scale as we continue to grow. Our goal is to begin to benefit EBITDA margins with lower G&A as a percentage of revenue in 2027, and for this to become a consistent tailwind to margins for years beyond that. Depreciation and amortization costs were up $13.3 million year-over-year, with $4.2 million resulting from the recent acquisition activity, including the amortization of acquired intangibles. You'll note that we isolated a charge on our income statement and adjusted the EBITDA reconciliation this quarter for the accrual of closure costs at our Hawk Ridge Organics facility in Maine. With the ban on land application of organics in Maine, it made economic sense for us to close this facility and redirect the material primarily to our landfills. We anticipate approximately $3 million of additional costs related to the closure of the site in 2026, which will not impact adjusted EBITDA. Adjusted net income was $18.9 million in the quarter, or $0.30 per diluted share, down $3.4 million, or $0.05 per share. GAAP net income was down $7.4 million in the quarter. Net cash provided by operating activities was $329.8 million in 2025, up $48.4 million or 17% year-over-year, largely driven by EBITDA growth. CSO was essentially flat from September and last year at 36 days. Adjusted free cash flow was $179.9 million in 2025, up 14% year-over-year. Capital expenditures were $245.1 million, up $41.8 million year-over-year, including $66 million of upfront investment in recent acquisitions. As of December 31, we had $1.17 billion of debt and $124 million of cash. Our consolidated net leverage ratio for purposes of our bank covenants was 2.34x, and our $700 million revolver remained undrawn. Our liquidity and leverage profile will enable us to be opportunistic in continuing to execute on our growth strategy and robust acquisition pipeline. As laid out in our press release yesterday, we announced financial guidance for 2026. This guidance included revenue in the range of $1.97 billion to $1.99 billion, or 8% growth at the midpoint. Adjusted EBITDA in the range of $455 million to $465 million, or 9% growth at the midpoint, and adjusted free cash flow in the range of $195 million to $205 million, or 11% growth at the midpoint. All of this is consistent with our preliminary outlook, as communicated on our third quarter conference call in October. Our guidance ranges reflect acquisitions completed to date, including Mountain State Waste, which closed on January 1, and assume a stable economic environment for the balance of the year. While we expect to continue to be acquisitive this year, our guidance does not reflect any further acquisition activity. On the top line, our guidance includes approximately $60 million from acquisitions, or 3% growth, which includes rollover and the Mountain State Waste, and approximately 4.5% organic growth at the midpoint. In the solid waste business, we're planning pricing of approximately 5%, which we aim to cover and stay ahead of inflation. As a reminder, we retain pricing flexibility across approximately two-thirds of our collection revenue, so we are well positioned to respond to changing conditions, if necessary, as the year progresses. Solid waste volumes are expected to be approximately flat plus or minus, with continued churn in our collection book of business reflected in that estimate, particularly as we integrate new acquisitions. Bridging 2025 adjusted EBITDA to our guidance, $10 million to $15 million is from acquisitions, and approximately $25 million or 6% is base business organic growth at the midpoint. Our adjusted EBITDA guidance range implies approximately flat margins to 40 basis points of margin improvement in 2026, which is largely the base business. This improvement is expected to be driven by strong, consistent pricing, benefits from integration and synergy realization with our acquisitions in the Mid-Atlantic region, ongoing operating improvements in our collection business, and higher overall landfill volumes year-over-year. These drivers are expected to be partially offset by the closure of our Hawk Ridge Organics facility and lower volumes at our North Country landfill in New Hampshire, as we ramp down volume ahead of anticipated closure at the end of next year. We expect adjusted free cash flow to grow at approximately 11% at the midpoint of guidance, driven by adjusted EBITDA growth and reflecting capital expenditures of approximately $260 million, which includes approximately $65 million of upfront spend in connection with recent acquisitions, and a small remaining investment to complete rail access capability at the McKean landfill. With that, I'll turn it back over to Ned for some closing comments. Ned Coletta: We're turning over to the operator right now for questions. Thank you. Operator: [Operator Instructions]. And our first question comes from the line of Tyler Brown of Raymond James. Patrick Brown: Ned, congrats on everything. But I want to kind of start just to ask you a really big picture question. So -- can you just help us shape a little bit about your vision for Casella, say, over the next 5 years? I mean do you want to speed up, slow down M&A? Are you looking to do bigger deals, smaller deals? Are you really focused on self-help? I'm going to leave it pretty open ended, but just, what's your message to shareholders and employees about your vision for Casella? Ned Coletta: Yes. Thanks, Tyler, for throwing a hard ball for the first question. I appreciate that. So not a lot changes in many ways. So John and I, as you know, have had an amazing partnership for many years and much of the strategy of the company, we've shaped together with senior team. So there's not a right turn coming in and no one should expect that. We're focused on the same building blocks that have created a lot of value for shareholders over many years. This year, myself, I'm focused on a few different things, making sure our workforce is safe and engaged, and we're really continuing our investment in our safety staff, our processes, technology there. We're also focused on upping our game from an HR standpoint and as we've grown dramatically, making sure that are all of our employees really understand our culture, what makes us special and why we're such a great company to work for and how to support each other. We're also focused on internal communications and just making sure that we all know each other, and we have great ways to communicate up and down the organization as we've grown. And the last point kind of gets to what you're talking about. For many years, we've had excellent strategic plans as a company and it's really directed a lot of our success for the long term. But just really making sure our employees live in both the daily work they need to get done and also looking to the future and looking over the next 3 to 5 years into strategy and into key programs from a self-help standpoint or our growth initiatives and just ensuring we have alignment up and down our management team in those areas. So as I started with, no major right turn, we're going to be focused on the same major building blocks driving incremental value through our landfills through additional permit capacity and cost reductions, better utilization, additional profitability, our collection line of business, pricing, automation, optimization, driving value through our Resource Solutions business as we've done very, very well over time. And then the growth initiatives, both on acquisitions and development, our pipeline is very, very good right now. We've got a lot of great opportunities for '26. I think it will be a nice solid year for us on the acquisition growth side. So overall, much of the same, but a lot of excitement in the company right now. We exited the year in a great spot and a lot of smiles around and people working very hard. Patrick Brown: Excellent. Okay. That was fantastic. And then you gave some good color on the Mid-Atlantic. It sounds like the new system. It is going to be fully rolled out by, call it, Q2. It sounds like the new trucks are landing, but is it right that you're only baking in about $5 million of synergies into the guide? Ned Coletta: Yes, we're probably a touch conservative. We have completed almost all of the systems integration work. There's a little bit left to be done. It'll be done kind of early here in the first quarter. No risk around it. It's just migrating from the legacy customer billing portal into our in-suite portal, and that will be completed and will allow us to start to collapse routes, gain synergies on the street, get more of those automated trucks out and gain some real efficiencies in the back office. But we're being a touch conservative for a few reasons. One, we got to get this work done. It's not all going to show up this year, but we're also doubling up on many costs as well. We're running multiple systems at the same point in time. We're investing both CapEx dollars, but also operating dollars in a lot of this transition and migration work that's running through our income statement. So there's more to come here. As we've said, this is a multiyear opportunity and will be a positive tailwind for a couple of years. Patrick Brown: Right. So it's probably operational opportunity routing, et cetera. But then longer term, there's some opportunity to surgically price. Is that right? And any thoughts about what that could mean? Ned Coletta: Yes. I mean, certainly, when we have all the businesses running on the same system, we'll have a much better ability to assess customer profitability, route profitability and price accordingly and they're doing the rest of the business. So that will be a big opportunity going forward. I think it would be a little premature for us to put a dollar number on that, but you can imagine what that opportunity could be. And then going forward kind of beyond this initial wave of synergies, facility consolidations, long-term route consolidation opportunities as we continue to fill in densifying that market with tuck-ins. There's a long list of opportunities that will extend far beyond 2026. Patrick Brown: Okay. So '27 sounds good on that front. But Brad, you also made an interesting comment about G&A leverage starting in '27. I mean I know you guys run a couple of hundred basis points higher than maybe peers. But can you talk about what are we talking about quantum wise from a G&A leverage perspective, '27, '28, '29, I mean however you guys want to frame that? Ned Coletta: Yes. I mean we run a little over 12%. The industry benchmark with our admittedly much larger peers, is closer to 10%. So that's the long-term goal. That's sort of our North Star. I think the first step for us over the next, call it, 3 to 5 years, will be to get -- go from 12% down to below 11% and then keep the trade enrolling. But we have a number of opportunities and projects that we have lined up in different areas this year to start to get some benefits in the numbers in 2027. As I said, '26 is sort of a pivotal year for laying a lot of groundwork for what we're going to be able to realize going forward. Operator: Our next question comes from the line of Tami Zakaria of JPMorgan. Tami Zakaria: I wanted to follow up on that volume comment you made. Just from a modeling perspective, could you provide some color on volume growth as we see the 4 quarters this year? Ned Coletta: Yes. I'll turn it over to Brad in a second, but I wanted to make -- Brad mentioned this in his prepared comments, but I want to double down on it. Stats are as good as the stat is. So like if you look at our volume stat in the fourth quarter, especially on the landfills, it looks a little weak. But it only looks at third-party bonds. It doesn't look at overall volumes coming into our landfills. And as Brad said, with very strong remixing at our landfills from third-party customers to intercompany customers. So our tons were actually up 1.7%, while our volume stat was down. So that statistic doesn't tell the full story because it just look at third-party revenues. And if you look at that rolling into this year, Brad, and take that as a backdrop, we actually had a pretty good volume quarter in the fourth quarter. It might not have showed up in the stat on the third-party side. Bradford Helgeson: Yes. looking ahead to 2026, we do expect landfill third-party volumes to be a positive for growth. So, you know, I think what you saw here this year was a little bit of a blip as we shifted really to emphasize more internalization where we could. On the collection side, just to give kind of the full volume picture, you know, we're looking at flat growth-ish. We're hoping to bend the curve and start to grow the business organically via volume. As we've acquired so heavily in the last few years, there's been a churn that's been ongoing and, you know, volume on the collection side has been a net negative. And as we've, you know, like everybody else, prioritized price and making sure we have appropriate margins and returns from our customers. But we think we have an ability to grow this business in our markets, particularly in Mid-Atlantic, as we get our feet under us there, going forward. Tami Zakaria: Understood. That's very helpful. And one more question -- follow-up question on the G&A comments you made. I think you said this year is a pivotal year that would pave the way for a multiyear cost improvement. The goal is to get to for like the industry average 10%-ish. Is there a way to frame how you get there? Do we see some accelerated basis point improvement next couple of years and then it's sort of eases into a 10% range? Any way to sort of frame the opportunity here? Bradford Helgeson: Let me maybe frame it at sort of a high level. You know, our back-office processes at Casella are very, very manual intensive, and don't offer us much scale as we continue to grow. So we grow the business, we have to add more people. You know, as we improve the technology, the utilization technology, and the tools available to the team, consolidating our billing system, which we've talked about a lot, we're putting in a new maintenance system as we speak. We're getting ramping up utilization of our procurement system. So there are many things kind of below the surface that we're working on, that will, you know, when we come out of 2026, it's not going to be magically, you know, on January 1, 2027. But the process we're going through is to end up where we're much more scalable, and we can really grow, or rather, shrink that percentage of revenue as we grow. Ned Coletta: And it's even a little more pointed than that, where you know, many of these programs started, you know, in early 2025, and both in 2025 and 2026, we've had doubled up costs because in some certain cases, we're running multiple systems at the same time. We have additional staffing during these transitions. So there's definitely not just the efficiencies that Brad's talking about, but there are just some redundant costs in the business right now as we're making this technology transformation. But like many things, very well thought out, not that there aren't areas of large technology risk, as we talked about before, which is upgrading tried and true systems we've had before and improving integrations and really gaining efficiencies. Operator: Our next question comes from the line of Adam Bubes of Goldman Sachs. Adam Bubes: You talked about the volume performance, including some more internalization, rather than taking in the third-party tons. You know, I think understand the benefits of internalization, all else equal. But can you just talk about the decision to make that trade-off, the economics for substituting external volumes for internal volumes? And then longer term, how do you balance the opportunity to drive internalization with the need for backup capacity in the Northeast? Ned Coletta: Yes. Over the last couple of years, we're running a little bit short on landfill volumes at some of our key sites, especially through New York State. Typically, you want to run a landfill, say, 85% to 95% full in a year, and we're a bit short to that. In 2025, a lot of our effort shifted to getting the transportation lanes in place, the equipment in place, integrating acquisitions, getting those tons into our landfill sites. And as we exited 2025, we got a lot of that work done. And it was exciting because it gives more stability to the business. If we can control more of the tons through vertical integration, it creates more stable, lasting value over time. But we also were filling up our site, so as we were making some of those moves, we had to, you know, exit some third-party tons from our landfills, hence a little bit of that negative third-party stat. But overall, we had more tons coming into our landfill sites in a really nice mix improvement as well. So that's something, we're in a pretty good spot right now, '26 will not see a shift like that, where we're remixing again. We'll be focused very much on quality of revenue at the landfills and driving higher returns and moving up the average price point. Adam Bubes: Great. And then I know it's still early, but hoping to get your initial thoughts on where the internal and external tons at your Ontario landfill could head post-2028, and any cost implications that we should keep in mind during that process? Ned Coletta: Yes. So, this is something we're still mapping out, and we'll get more information to shareholders, but this has been a known closure point for us for a couple of years. So we've been building up to this, what we feel good about our balance sheet accruals and the glide rate getting to that endpoint. We don't expect, you know, charges or something like that. We expect all of these costs to be accrued for appropriately leading up to that closure. The site's taking in about 850,000 tons a year of waste as we currently speak. As we've been talking about for several quarters, we've been actively working on an expansion at our Hyland landfill in New York for close to 5 years, if you can believe that, and we're very close to the end of that process, and we'll be going from 460,000 tons to 1 million tons a year. So quite a few of those tons from Ontario will move over to Hyland, and the highest quality revenue tons will move over. We've also been in the early stages of some other expansion work that could help with some of those additional tons in the market, where we may shed some of those tons as well. But as we're mapping this through, we'd like to be in a situation where our quality of revenue improves, our returns improve, and we don't see any sort of major step down from an EBITDA standpoint at the end of 2028, coming into 2029. Bradford Helgeson: Yes. Ned, just to add on to that, I mean, Ned referred to returns. I mean, Ontario has been a great disposal outlet for us and our customers for a number of years. It's, on a volume basis, our current volume basis, our largest site, but it's also a very, very expensive site to run from a cash flow perspective, and from a EBIT and net income perspective. So, you know, as we reblend that over time, move some volume to Hyland, move it to some other places, yes, and then coming through that, we may end up with a -- or not may, we expect to end up with a much better cash flow and earnings profile from those tons. Operator: Our next question comes from the line of Trevor Romeo of William Blair. Trevor Romeo: A couple for me here. I guess first one is on M&A and kind of your outlook here. I think if you look back at the last few years, you kind of added double-digit percentages to revenue from M&A. I think you're coming into this year with maybe a little bit less than the past few years. So just in terms of what's in your pipeline now, you know, are there any bigger deals out there? Do you see opportunity to get toward those kind of double-digit M&A contributions this year? Or you think it'd be more likely it'd be a little bit less than the elevated levels the past few years where you stand today? Ned Coletta: Yes. Great question. We have had several very strong years. 2023, 2024 were above average years. We were well above $300 million of acquired revenues in 2023. 2024, around $250 million of acquired revenues. And this last year, around $115 million-ish or so. Mountain State Waste, we thought, was going to land in December and ended up landing in January, so that would have brought us, you know, a little closer to $150 million. But where we sit today, our pipeline is really good in the advanced stage. We've got a number of high-quality companies we've been working with for a period of time, several of which are a little bit larger. And we would hope to kind of crest that 150 level, $150 million of revenues in 2026, and hopefully, you know, maybe get above $200 million if the pipeline continues to develop. But from our vantage point, it comes down to quality and strategic fit. You know, you never talk about the deals you don't land, and there are several of those in 2025 that we did a lot of work on, and they just didn't work out for either, you know, compliance reasons or pricing or whatever it might be. And, you know, as a management team, John and I have said this for a lot of years, we're not just buying companies to buy them. We're buying them to make money and to make returns and to advance our business model, and we stay true to that. So from you know, having the discipline to be able to walk away, it's something we've always maintained, and that's why we don't guide acquisitions. You know, you don't want to get in that position where you feel like you have to do something that's not the right value adder. So from our vantage point, we're sitting in a really good spot right now. Our team, our acquisition team, the broader management team has been working hard. John Casella, in his role, stepping into Executive Chairman, is spending a lot of time working on sourcing, acquisitions and continuing to build the pipeline, which is amazing for our team that he can continue to do that. So we're excited about the year and excited about, you know, the glide rate into '27. Bradford Helgeson: Yes. And just Trevor, from a modeling perspective, and I think you alluded to this in your question, a light rollover number coming into this year because, number one, at $115 million plus or minus of annualized revenue acquired last year. This is a relatively light year for us compared to what's kind of become our run rate. But also, it was front-end loaded. So we actually saw most of that acquisition revenue in 2025. So very little about $30 million rolling over into 2026. Trevor Romeo: Yes. All right. I appreciate that. It's good to hear that there's still opportunities out there, and good to hear that, John's still active, in the market for sure. Then real quick, just kind of had a question on, on, the guide. I think, Brad, you mentioned the Hawk Ridge facility closure, some of those, tons being redirected to your, to your landfills. Does that kind of capture all the economics, or are you expecting kind of a downward impact there on the scale and the North Country mix that you mentioned, too? You can just help us size and that impact factor there. Ned Coletta: Yes. You're breaking up a little bit, so let me know if I missed something here. But you know, the Hawk Ridge, it was a relatively -- is a relatively small facility, so we'll see some headwind from that in 2026, and that's baked into our guidance. But you know, net of moving some of those materials to our landfills, I'd say it won't be significant. North Country, from a margin and dollar standpoint, will be more significant. Yes, that probably represents a headwind of 20 basis points to our EBITDA margin, you know, as we ramp down that volume, planning for the end of that facility's life in 2027. Operator: Our next question comes from the line of Jim Schumm of TD Cowen. James Schumm: So I just wanted to make sure I have the Mid-Atlantic story down correctly. So it sounded like Ned said in the prepared remarks that you have a $5 million benefit for the new automated trucks in 2026. And so I'm assuming, or maybe this is incorrect, but is that $5 million benefit that's from, like, a labor reduction of the, you know, removing bodies off the back of the trucks? That's you're not assuming any, like, operational benefit from routes and stuff, right? So you've got $5 million that you know about, and then you complete your migration in the next coming days, and then that gives you the opportunity to look at and see what sort of size, what the next opportunity is, which you have not baked in any of that into your 2026 guidance. Is that correct? Bradford Helgeson: So I'd describe it a little bit differently, and Sean Steves is sitting here, so he can keep me honest. But there's a couple components. One is, as you said, getting the automated side load trucks on the street, replacing reload trucks and the immediate productivity and labor savings that come from that. But it's also combining routes. So once we can combine systems, we can eliminate routes for businesses that are operating today in the same market, overlapping each other. So the way I think I described it last quarter was, you know, the $5 million includes that initial list of as soon as we flip the switch on the system, we're going to go after these routes in this market and these number of routes in that market. That's just the tip of the iceberg, I think, is the point we're trying to make over time, as we'll be able to get more routing opportunities, facility consolidations, and of course, it's regenerative, you know, as we continue to acquire in the market. Ned Coletta: And just hitting that one step further, Brad, Almost all of the G&A of back office savings already eaten up in the year by redundant systems, by the investment we're making. So the savings are coming, but there -- in the year, we've got that doubled up cost as we're doing this work in the marketplace. So then that's why it starts to show up more in late '26 into '27. James Schumm: Okay. I just -- because my understanding was you've got these 2 systems. And I think you guys said in the past that you could be running like 2 trucks basically in the same neighborhood, but you're not really sure because you don't have the visibility on it because you're on 2 different systems. So if that's the case, then operationally, you wouldn't be able to remove -- necessarily remove those duplicate or redundant routes yet. Am I not thinking about that the right way? Ned Coletta: You're close. It's -- so as we've acquired businesses, we left many of them in the Mid-Atlantic on their own, we call it order-to-cash system. So from taking orders from customers through dispatching, routing the trucks and billing and collecting cash, they're on different systems. We're almost completed moving all of those businesses onto the upgraded Casella system, so all of that work will be done in the same system. When they're on different systems, you couldn't start to collapse customers' routes because they're running through different order systems, dispatch, routing systems. Now, they're on the same platform. We've got one or two more steps that need to be made in the first quarter, and then that allows us to have all those customers in the same database. We start to reestablish routes, optimize, consolidate trucks. At the same time, automated trucks are arriving, which allow us to gain more efficiencies. So all of that works together to the $5 million number. It will be bigger over time as we get rid of those redundant G&A costs in the year, and we also get the next legs of this strategy. James Schumm: Okay. And I would assume that, given the work that you had in the redundant systems, that from an M&A standpoint in the Mid-Atlantic, I would have thought that perhaps you slowed down the M&A in the Mid-Atlantic just because you kind of had your hands full. Is that fair? Do you now ramp up M&A when you have these sort of systems sorted out? Is that fair? Ned Coletta: Yes. We hit the brakes a touch. That is fair. We've done another 10 acquisitions in the Mid-Atlantic since we brought on the GFL platform two years ago. So we have continued to build density. We've got a great slide in our investor deck that shows, you know, those additional acquisitions we've done over the last two years in the market. But you're right. You know, the gold standard is we acquire a business, either within the first month or the first two months, it comes onto our integrated systems. We start to collapse routes, we get costs out, and we generate synergies faster. We were not in that mode the last few years, and so we've got some built-up, you know, opportunity now. For a little bit, it was an overhang. Now it's great opportunity. We still have that work to be done, and we'll gain those synergies. As you said, as new acquisitions come in, they'll come on to the modern Casella system within the first couple of months, and we'll be able to drive synergy value faster. Operator: Our next question comes from the line of Benjamin Moore of Jefferies. Stephanie Benjamin Moore: I wanted to circle back on the Mid-Atlantic opportunity, particularly as it relates to pricing. You touched on this a little bit earlier with the question, but I wanted to get a sense of how you view the overall pricing opportunity in the Mid-Atlantic. I think there's a couple of dynamics, a couple of, I guess, aspects to it. So there's, you know, certainly having the systems in place, which you noted, allowing for dynamic pricing. But also, can you talk a little bit about maybe how the pricing in that region compares to other regions, and then also talk about timing? You know, is this something that you know, you have to effectively do at the start of the year? Can you make these changes, you know, maybe as 2026 progresses, or is this more of a 2027 opportunity? Just kind of wanted to, to drill down on that opportunity a little bit more. Bradford Helgeson: Yes. Maybe I'll start off filling in some of the numbers and then, I'll hand it to Ned to talk about the strategy going forward. But, overall pricing across lines of business, we were about 3% in the Middle Atlantic, this year. So we've got some pricing, of course, but, we weren't in a position to price as aggressively, for lack of a better word, where it's warranted, because we couldn't really figure out exactly where it was warranted. So if you just do that math, you know, 3% versus our -- the rest of our business, which is north of 5, blending down to the high 4s in the fourth quarter, you know, you can kind of, you know, pencil out the theoretical opportunity. How that plays out, of course, will depend on some factors in the market and what we find out. Timing-wise, you know, I think that work will really begin, you know, call it mid-year, you know, after we're done with the integrations onto the one system, and can really dig into, you know, the pricing analytics. But, you know, beyond that, it's as I think I mentioned earlier, it's certainly premature to put a dollar number on it. But Ned, any thoughts? Ned Coletta: Yes. This is one of the main reasons why it's important to be on our system, besides the routing. You know, we've got great tools we've developed over the years to understand customer-by-customer profitability and returns. And we want to make sure if we're gonna put assets to work, either part of the capacity of a truck or dumpsters or whatever it may be, that we're making an adequate return for that work. And, as the Mid-Atlantic business is built and, until all of these customers are onto the integrated Casella systems, we have not had a perfect view of profitability and returns of those customers, as we said. So we've been doing, you know, some work, of course, to understand where we need to drive price and why, and how to stay in front of inflation. But it's not done to the same rigor that we've been doing historically across our book of business in ensuring we have the right quality of revenue. So all of those great practices and how we run our business day-to-day, and how we generate solid margins and returns through our collection line of business, all those tools will be brought to bear in that marketplace this year into the future. And let's face it, it's about a 20% EBITDA margin business today. And generally, our hauling businesses as a company are north of 30%. So, you know, there's a lot of opportunity there. I don't think we can say we map it out exactly this much per year, but we know the opportunity is there to improve quality of revenue, to improve efficiency on the street, to have integrations of routes, integrations of business units. There's a lot there, and we look at it as this amazing opportunity. It's a tailwind for us right now. We have these tools, we know how to get this work done, and now let's go get it done. Operator: Our next question comes from the line of Shlomo Rosenbaum of Stifel. Shlomo Rosenbaum: Could you just to start, can you talk a little bit -- you've had really good national accounts revenue growth over the last couple of quarters. Can you talk a little bit more about that and, you know, what might be driving that? Ned Coletta: Yes. It comes from a couple different buckets. It really has been a strong point for us, and there are several different, you know, avenues that we're growing that business. One is more just traditional multi-site retail, maybe broker work, and that's a little bit less exciting. We definitely look for quality of revenue, and we look for opportunities to have overlaps to our hauling businesses, where that might be the channel of growth into our integrated collection business. But probably the more exciting part is our industrial business. We are at higher margin, we're delivering differentiated services, and we've been growing very, very fast into that segment. So both of them are areas of growth, but I think from our vantage point, if we can get the vertical integration and the revenues are recognized through the national accounts group into our integrated hauling landfill business, that's amazing. We try to under index just pure brokered work that we're not servicing, and then that industrial service work, that's where, you know, our sales efforts, our ability to drive value from an operating standpoint, that's where we really shine. And, you know, we've had many years in a row of 10% plus growth, and we continue to drive a lot of value for our customers and our shareholders in that segment. Bradford Helgeson: One comment about it is, you know, people who are new to Casella sometimes ask, you know, why, they're comparing our margins to some of our larger competitors. Why is there a differential? This is part of the answer. Our national accounts business, which is a nice growth engine, which is obviously little to no capital investment, so a great returning business. It does have a lower EBITDA margin profile because it's functionally a brokerage business. So that's kind of a factor where we make a decision to, okay, this probably just is downward pressure on our margins on a comparative basis, but it's a great business and it fits within our broader business, as Ned described. Ned Coletta: Yes. I just read in the numbers. Our industrial business grew about 17% in the year. So this is more value-added services, higher margin. So that's the larger growth engine in national accounts and where we've been driving more sales and operating focus. Shlomo Rosenbaum: Okay, great. Thanks for the color. And then, is there a way to dimensionalize the impact of weather in the first quarter? Because, you know, there's obviously been a significant impact, and you guys are more concentrated in where we have had more of the kind of severe weather. Ned Coletta: Yes, it's funny. We, you know, we learned a long time ago, try not to make a lot of excuses about the weather. Let's face it, our -- the men and women who work for Casella, they're out there in the cold, the rain, the snow, the ice, every day, taking care of our customers and working very, very hard. However, we did take a look because we've been living this for the last couple of months, and it has been cold, it has been snowy, and, Brian Butler ran some stats for us, and the snowfall across our markets is up 10% versus 10-year averages, but the temperatures are 20% below 10-year averages, and it has been cold. Our team has just done such an amazing job. I mean, being out there at 4:00 in the morning, servicing stops with negative 20-degree temperatures is not easy on our people. It's not easy on productivity. It's not easy on equipment. It's just been -- from a safety standpoint, our safety stats are some of the best we've had in a decade, and the team is just doing such a great job. They're buckling down, paying attention, really being focused, being deliberative in their work and trying not to have injuries or accidents. So, you know, hats off to the entire team because you're right, this has not been an easy start to the year. But as we sit around, look at our numbers, look at our stats, look at, you know, our productivity in the business, we're doing pretty good, given this backdrop and, you know, it didn't cause us to change our view on the year and we're probably a touch behind in January where we want to be. But given those challenges, you know, you look at it, you get a big blizzard or a big snowstorm, economic activity just falls off. You have less roll-off pulls, you have less tons into the landfills, you have less consumption, less people go to work, and then the productivity is a bit tougher as well. So it has been a bit of a headwind, but, you know, we're from Vermont. We're used to it, and, you know, we've brought a lot of those safety practices across, you know, our new markets, and we're trying to make sure, you know, as we operate in the snow and ice in other markets, we do the same things we've done well for 50 years. Shlomo Rosenbaum: Okay. Then I just want to make sure I understand your commentary on the Ontario closure. Are you communicating that because of the actions you're taking, you don't expect to have an EBITDA impact going from '28 to '29? Like, you might see a revenue impact, but given the mix of what you're doing, you're trying to kind of structure it so that you won't have an EBITDA impact. Am I understanding that right? Bradford Helgeson: Sort of. So we're -- as Ned mentioned, we're developing a plan to try and smooth it to the extent that we can in a way that makes sense operationally and, and with our reported financial results. I would say, though, that it is much less an EBITDA issue, as it is a, landfill amortization, EBIT, and cash flow issue. On those lines, on that basis, Ontario is extremely, expensive to run, much more expensive than any of our other sites. So what you may have is if you think about steady revenue or steady EBITDA, or maybe up, maybe down, we'll figure that out, but the underlying earnings and cash flow of that EBITDA will be much, much better. Shlomo Rosenbaum: Okay. And then finally, is there any update on what's going on with New Hampshire's amended House Bill 707? Is there, is there any -- has anything changed over the last couple of months on that? Ned Coletta: Yes. New Hampshire is a very complex situation for us today. As you know, we've been working for several years now to develop the new Granite State Landfill in Dalton. Our efforts are strong there. We continue to fight on two fronts from a legal standpoint, challenges, where our permit was denied for dormancy, and we filed appeals for that, where we don't think that's accurate, and we'll continue to fight. We think there's a lot of value to be created at the Granite State Landfill, and we feel like our legal standing is strong, and we'll continue to work to move that permit forward. One of the areas that John Casella has been heading up for a few years and continues to make a lot of progress is on 707, as you mentioned, and really looking at getting local control amended, where we can advance permitting at our existing North Country landfill. There was a settlement agreement years ago, which does not allow us to expand the landfill beyond its current footprint. However, we own many acres around this landfill. We could have a very efficient -- capital-efficient, good expansion into those areas, and it would make a ton of sense for us, our shareholders, the citizens of New Hampshire, to develop that capacity over time. It would be much needed for New Hampshire and let's face it, the Northeast, over the next 20 years to expand that site. So, you know, it's one of the quirks where there's a little bit too much local politics around expanding good, quality, existing sites, and that's the work we've been doing with the legislature. And frankly, you know, the good senators and representatives of New Hampshire have been working to fix because they look at a site like North Country, and they say, "You know, this is something that we should have the experts in the environmental agencies working on versus being governed by local politics." We need to look at capacity like that and really think through the long-term benefits to society. And it's very hard to replicate this. So where we sit today, as I said earlier, something John's had, is a big passion project of his, and it's another area he's continuing to help the team and looking to advance that. Not a lot more to say right now, other than, we're excited. We hope that bill does advance, and it allows us to create additional airspace at North Country. If it doesn't, as I said earlier, we continue to push hard on the Granite State site, and we're also developing some transfer capacity at the state. We're working on a rail transfer station. We're looking at other ways to move waste around the state of New Hampshire to meet the ongoing needs of our customers over time. But it's a complex situation and something we're very much focused on, having a good outcome for shareholders. Operator: [Operator Instructions] Our next question comes from the line of Bill Grippin of Barclays. William Grippin: Great. I just wanted to come back first to some of the comments you made on sort of your M&A outlook. And I think you mentioned, you know, there could be a couple larger opportunities coming about. Are those opportunities that have come about as a result of your sort of expanded Mid-Atlantic footprint, or are these kind of within the Northeast? And then, along those lines, you know, how do you think about your ability to internalize tons as you continue to grow and acquire in the Mid-Atlantic region? Ned Coletta: Thanks, Will. So it's a little early to get into the details on a few of these opportunities we're looking at until they mature a bit more. But we're working both in, you know, the legacy markets in the Northeast and down into Mid-Atlantic as well. And, you know, we really like opportunities that are $50 million of revenues or $100 million of revenues. We find them to be, great complements to our existing business and, you know, right size to integrate effectively, and we're hopeful to close a few deals in that size this year. So it's a little hard to get ahead, but hopefully, some more exciting information here as we step into the year on that front, Will. William Grippin: Yes. Understood. Appreciate that. And then, just to follow up on landfill pricing, I think you mentioned same-store price was up around 2.5%, and I think last quarter, if I remember, it was, you know, around 3%. That -- I guess in my sort of mental framework, that, that feels light, just given, you know, some of the capacity constraints we continue to talk about in the Northeast. Could you talk about maybe some of the underpinnings of, of that, you know, kind of 2.5% to 3% same-store landfill price? And, and maybe just looking out, you know, several years, how do you think that, that could trend? Ned Coletta: Yes. We've come off an interesting period in the Northeast. I mean, while in the long term, the market is supply constrained, and we'll continue to see sites closing. Over the last couple of years, we've seen a few new rail moves open up out of the Northeast, out of the broader New York, New Jersey markets, which have moved some tons around in the marketplace. We have not directly lost customers, but there have been some decent amount of volumes that flowed out of the Northeast, which has put a little bit of a lid on pricing over the last two years. As I said earlier in my commentary, we're running pretty much full right now, or as full as we want to be. So we're back to the point for the first time, I think, in 2 years, where quality of revenue, driving returns is a big, big focus of our team. We're running fuller because we've done a great job getting internalization to our landfills, getting those transportation lanes opened up. But now it's time, as you said, to start to advance pricing again and focus on quality of revenue. And you know, it's everyone's looking out 10 years and saying: Where is this market gonna be? And you can't just, you know, build a transfer station or advance the strategy in 12 months time. These take a long time. So as some of these new opportunities opened up over the last couple of years, we did see a little bit of an ebb in the market. Now we're back to a position I feel like we've been in for the last decade, where, let's focus on quality of revenue. Operator: I'm showing more further questions at this time. I would now like to turn it back to Ned Coletta, for closing remarks. Ned Coletta: Thank you very much. In closing, I want to reiterate how proud I am of the team and how excited I am to lead Casella into our next 50 years of growth and achievement. We've built a company defined by disciplined execution, thoughtful growth, long-term value creation, all grounded in our mission of safe, sustainable waste services. Thank you for joining us today. We look forward to speaking with you next quarter as we continue delivering on our mission. Thank you. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.
Operator: Good morning, and welcome to Trican Well Service Fourth Quarter 2025 Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Brad Fedora, President and Chief Executive Officer. Thank you. Please go ahead. Bradley P. Fedora: Thanks, Rud. Thank you, everybody, for joining us, and good morning. First, Scott, our CFO, will give an overview of quarterly results, and then I'll provide some comments with respect to the quarter, current operating conditions and the outlook over the next few quarters, and then we'll take some calls. There's a few members of our executive team in the room today, so we should be able to answer any questions that come up. And I'll now turn the call over to Scott. Scott Matson: Thanks, Brad. So before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements and other information based on current expectations or results for the company. Certain material factors or assumptions that were applied in drawing conclusions or making projections are reflected in the forward-looking information section of our MD&A for Q4 of 2025. A number of business risks and uncertainties could cause actual results to differ materially from these forward-looking statements and our financial outlook. Please refer to our 2025 Annual Information Form for the year ended December 31, 2025, for a more complete description of business risks and uncertainties facing Trican. This document is available both on our website and on SEDAR. During this call, we will refer to several common industry terms and use certain non-GAAP measures, which are more fully described in our Q4 2025 MD&A. Our quarterly results were released after the close of market on Wednesday evening and are available both on SEDAR and our website. So with that, a brief summary of our quarterly results. And my comments will draw comparisons to the fourth quarter of last year, and I'll provide some commentary about our current activity levels and expectations going forward. Trican's results for the quarter compared to last year's Q4 were generally stronger as overall operating activity came in a bit higher despite a challenging commodity price environment exiting the year. Our results for Q4 of 2025 also incorporate a full quarter of Iron Horse results following the closing of the acquisition in Q3 of 2025. Oil pricing was challenged as we came through the second half of 2025 and had a significant impact on Q4. Oil-focused customers delayed and in some cases, shelved projects in response to deteriorating economics, significantly impacting the Iron Horse division during the quarter. But overall, our revenues for the quarter were $322.7 million compared to the $275.5 million we generated in Q4 of 2024. Adjusted EBITDA for the quarter was $73.4 million or 23% of revenues, compared to adjusted EBITDA of $55.6 million or 20% of revenues generated in Q4 of 2024. Adjusted EBITDAS for the quarter came in at $75.3 million or 23% of revenues, up from the $58.6 million or 21% of revenues in Q4 of last year. To arrive at EBITDAS, we add back the effects of cash-settled share-based compensation to recognize in the quarter to more clearly show the results of our operations and remove some of the mark-to-market impact of the movements in our share price between reporting dates. On a consolidated basis, we generated positive earnings of $31.9 million in the quarter, which translates to $0.15 per share, both on a basic and a fully diluted basis. We generated free cash flow of $46.6 million during the quarter, and our definition of free cash flow is essentially EBITDAS less nondiscretionary cash expenditures, which includes maintenance capital, interest, current taxes and cash settled stock-based compensation. You can see more details on this in the non-GAAP measures section of our MD&A. CapEx for the quarter totaled $15.1 million, split between maintenance capital of about $12.8 million and upgrade capital of $2.8 million. Our upgrade capital was dedicated mainly to the electrification of our fourth set of ancillary frac support equipment and ongoing investments to maintain the productive capability of our active equipment. From a balance sheet perspective, we exited the quarter with positive noncash working capital of $179.2 million. At December 31, we had debt of $79.9 million, net debt of $79.9 million, comprised of loans and borrowings of $92.4 million, which was offset by cash of $12.5 million. Our debt at December 31 was primarily related to the acquisition of Iron Horse and our normal working capital and investing activities during the quarter. This translates into just under 1/3 of a turn of leverage using our trailing 12-month EBITDAS figure and a portion of this is already unwound, and we expect our net debt position to trend downward as we move through 2026. With respect to our return of capital strategy, we repurchased and canceled 1.4 million shares under our NCIB program in the fourth quarter. On an annual basis, in 2025, we repurchased and canceled 12.1 million shares at a weighted average of about $4.35 per share, representing 6.4% of the shares outstanding at the beginning of the year. Subsequent to Q4 of 2025, we've repurchased and canceled about 300,000 shares, and we continue to be active in our buyback program when market prices are at levels that provide for a favorable investment opportunity. As noted in our press release, the Board of Directors approved a dividend of $0.055 per share, reflecting approximately $11.5 million in aggregate to shareholders. The distribution is scheduled to be made on March 31, 2026, to shareholders of record as of the close of business on March 13, 2026. And I would note that these dividends are designated as eligible dividends for Canadian tax purposes. So with that, I'll turn things back to Brad. Bradley P. Fedora: Okay. Thanks. I think overall, Q4 went really well and pretty much as expected. We've worked hard in the last few years to try to create a customer list that has allowed us to be fairly level loaded throughout the year with maybe the exception of a little bit of Q2, but it seems to be working. Our quarters all now seem to be quite similar in volumes, and that's a great advantage from a staffing and an equipment allocation perspective as you can rightsize the business for the entire year, you're not just staffing for the peaks and then absorbing the costs during the valleys. So I think all of that has gone really well for us. I mean, as usual, it seems like in Q4 lately, we did experience some pricing pressure. Just some of our competitors are less busy than we are, and they're trying to fill their board. We generally just sort of get through that. Of course, we don't live in a vacuum, but most of our customers are all very long-term relationships, and we seem to get through a lot of that. Obviously, we have much improved natural gas prices compared to the last 18 months. So that has helped. I mean it's been a very warm winter in Western Canada. And I think we've done a really good job of sort of fighting our way through that. We had very much spring-like conditions for the bulk of February and lots of January. So it's been a little bit choppy, but I would say we're having a good quarter, and we always factor that into our forecasting. And so I think Q1 will be very much in line with consensus. I don't think there'll be any big surprises there, even though we did have some tough weather to deal with. Our customers are still very focused on technology and efficiency. I think we've done a really good job with this. Particularly, they want to burn natural gas in place of diesel anytime they can just due to the cost savings and the lower emissions. And so our pumping assets, in particular, and our electric equipment, that's [indiscernible] leading the industry with that regard. We're very fortunate to have a customer list that is focused on technology and does recognize the investments that we've made. And so we're working together to make sure that as their programs develop and evolve, we're making sure that we keep up from an asset and a technology perspective so that we can look at the long term together and say, what is this industry going to look like in 5 years and make sure that we're on the forefront of those changes. I would say even with the Iron Horse acquisition, most of our work is natural gas. We're probably 70% natural gas and 30% oil projects. So we're happy that natural gas has got back to more reasonable levels. Obviously, oil in the last week or so above $65 or even [indiscernible] very helpful to the Iron Horse division, and that should make for a sort of a much more robust year this year than last year. So we're kind of crossing our fingers that oil prices hang in there. We have seen a lot of the BC work slowdown but it's been more than picked up by the Duvernay work that we've been doing. So we're not really experiencing any changes there. In many ways, the Duvernay work is right in the backyard of a few of our operating bases. So happy to be in that play. And I'd say, in general, all 4 of our divisions being Trican frac, Iron Horse frac, Cement and Coil are all working really well. And I'll maybe just touch on all 4 of those divisions. So the Trican frac, which is the deep fracking, the big pads in Northwest Alberta, Northeast BC. Again, going very well. We've spent the last few years really differentiating our service offering with natural gas pumping assets and electric ancillary equipment on location. We're the only company in the basin that provides a full suite of electric assets on location, and it's been very well received. We've just put into the field our fourth set of ancillary equipment, which includes like blender and chem blending, things like that. So the sand belts, et cetera. So we basically cannot keep up with demand on those electric assets. When you combine the electric equipment with our Tier 4 equipment and in the future, 100% natural gas equipment, you'll have basically almost full displacement of diesel on location. So again, very well received. Without a doubt, we would be viewed as the technical leader in this industry with respect to [indiscernible]. We're still seeing wells get longer using more sand per well. I think this -- in 2025, I think we pumped about 8.5 million tonnes of sand as an industry. And there's lots of analysts that are forecasting that, that's going to grow to over 12 million tonnes per year by 2030. So that's, without a doubt, a trend that we're making sure we capitalize on. And the flip side of that, though, is we are seeing more customer supplied sand, which is fine. Our customers are looking to save money wherever they can, that's okay. We'll try to replace some of that margin with our greatly expanded logistics business. We've really focused in the last few years of building up our logistics because you're dealing with these kinds of sand volumes, and again, I've used some of these analogies before. We've got 50 to 100 railcars of sand being pumped into a well over a period that might only be 48 hours long. And so you're having a B train of sand show up every 12 to 15 minutes on locations. Getting that logistics part right is a huge driver and efficiency for our customer and profitability for us. So we've done a fantastic job of building out our logistics business. We're not able to actually build it as fast as we would like it just due to availability of drivers. But we will continue to expand that. We're a leader in sand logistics in Western Canada, and I don't see that changing anytime soon. And just to put this into perspective, we were on a Duvernay well not too long ago, where over a 24-hour period, delivering sand with our trucking fleet, I think we drove over 60,000 kilometers in a 24-hour period, which is 1.5x around the world. So it helps put that in perspective just how important logistics are, especially in a compressed time frame like we're dealing with. So kudos to our logistics team, and we'll continue to highlight that and showcase that to our customers to help continue our differentiation. We have received now our first 100% natural gas Cat, what are called 3520 natural gas high-rate frac pumpers. The testing of that equipment is going very well. It will be deployed into the field in the second quarter. We expect to have a full suite of a 10-pumper frac spread available and operating by early fall. And what this enables us to do is have less pumps on location, less people, pump 100% natural gas instead of a combination of natural gas and diesel. So for our customers, it means lower fuel prices, lower emissions. And for us, I think these new assets will be a little bit better at dealing with a variety of field gas. So we should have more efficient operations on that -- in that respect as well. So really looking forward to that. And when you combine those assets with our electric ancillary equipment, we'll have basically 100% natural gas operation. As well later in the year, we will be receiving our first natural gas semi-trucks. So what pulls the big tractor units that pull the sand around. And we will slowly but surely evolve our trucking fleet to run on natural gas. We're a little ahead of our time with respect to the fueling stations that are available throughout Western Canada. So we are going to be working with our customers in conjunction with them to make sure that there are fueling stations in all the places we need. But really looking forward to this. Again, lower fuel prices should be lower R&M. And just generally, it's nice to see that we are -- we as a service provider are burning the natural gas that our customers are producing every day. So we're working with them in conjunction to really build out a rounded industry. On the Iron Horse frac side, which is sort of on the oilier coil fracking. Really happy with the acquisition. The integration is going really well. I would say we're very pleasantly surprised with the synergies that we've been able to extract. And with respect to things like fuel, chemical sand, we hadn't really built a lot of that into our acquisition, but I think that is working better than we had hoped or certainly better than we had planned on. Obviously, we're a little disappointed with oil prices post the acquisition. Field work volumes came down. That's okay. Oil prices have firmed up here, and I expect that they'll be getting up to a level that we were sort of banking on last year. But the acquisition has gone very well. They're the #1 provider in that part of the world, which is sort of Eastern Alberta, Saskatchewan, into Central Alberta. They provided us with [indiscernible] previously, we had almost 0 market share. We'll use their relationships to grow our Cementing business in that part of the world as well. So very happy with that acquisition. On the Cementing side, Cementing division continues to perform extremely well, very high market share in plays like the Montney and the Duvernay. We have expanded recently into the SAGD market in the Christina Lake area. That's gone very well. We expect that we will be able to grow that sort of area fairly significantly over the next 18 months. I think in Q4, our revenue and jobs were up 33% in Q4 over 2025 versus 2024. So that division continues to perform very well. We're adding AI technology to things like our bulk plant to reduce blending errors, increasing blend qualities for our customers. So even though we've been active in that business for a long [indiscernible] we're taking advantage of technology anywhere we can to make that division perform even better. We actually will have what we will call like a hybrid cementing unit soon, too, where it's partially electronic or electric. So getting rid of a lot of the hydraulics that you can have trouble with in [indiscernible]. So I would say slowly, but surely, that division will evolve into sort of an electric style equipment just much like our natural gas or our fracturing assets. On the Coil side, the buildup of the Coil business is going very well. We have reorganized our management team about a year ago or so. And now that division is getting the attention that it always needed. A great portfolio of customers. We have all the top operators in the basin. We set horizontal and depth records last year. Those -- our performance field has allowed us to add Montney and Duvernay customers. We have lots -- we have a wide variety of oil strings. So I would say that division build-out is going very well, and it's now sort of financially performing more consistent with the other 3 divisions as well. So I think that will slowly surely just grow in size and scale, which [indiscernible]. On the long-term outlook perspective, we're still incredibly bullish about Western Canada. When we look at the plays here like the Montney and the Duvernay in the context of North America, this is the place to be. I think the key with being a service provider in these plays is you've got to be constantly pushing and evolving your -- the technology offering that you have and making sure that as these plays get developed, we become more and more efficient. And we are seen as sort of the technical leader in the pumping space, which certainly we have been. You're going to have ups and downs based on the gas price, et cetera. But certainly, when you view what's happening on the LNG side, getting up to full capacity this year with more LNG to come, we think there's going to be like a foundation of gas pricing in Canada for the next years and beyond. And certainly, we are very happy with the position that we've built up in place in Northwest Alberta, Northeast BC, which will be fueling LNG. So it's a great place to be. We're not looking to change any of that. In fact, if anything, we're looking for acquisitions going on, not even with just consolidation [indiscernible] Iron Horse, but other service lines as well, just because we think Western Canada will be a great place to be operating for the next 5 years and beyond. And where do we see sort of revenue growth come from? It's obviously the well count will increase as the gas price solidifies and grows. We're seeing increasing sand volumes going into each of these wells, which just means more time on location for us. We're seeing our Logistics division expand. And when we look at the Coil and Cement divisions, we think both of those divisions can continue to acquire market share in all of the plays in Western Canada. So again, we are very optimistic about the next 5 years. Just back to the return on capital that Scott had touched on, we generate -- we continue to generate significant free cash flow. And we expect that we'll maintain a conservative balance sheet. We've always subscribed to a diversified return of capital strategy, meaning a combination of dividends and NCIB. The NCIB volumes will go up and down with the opportunities in the context of the other opportunities. We very much view our NCIB as M&A. But I would expect that over the next few years, we will allocate probably around 50% of our free cash flow to shareholder returns, whether it's in the form of dividends or NCIB. And just we'll always be looking in the context of the market to see what else is available. We're not afraid to use our bank lines. We do hold a conservative balance sheet, but that's to make sure that we have the capacity when we need it. So we're not afraid to use our bank lines if we find an attractive investment or even organic growth opportunities like we did with Iron Horse. We're always looking for the best possible returns for our shareholders, and we'll allocate capital accordingly. We are starting to see, I would say, more growth opportunities than we've seen in prior years. And we'll just be very diligent and disciplined when we're looking at acquisitions and good things take time. So we won't get over our skis. We'll just be very analytical, and we'll see if we can get something interesting done in the next few years. So I just want to stop there, given it's year-end, I just want to say a thank you to our customers and our employees. And as I think everybody knows, Trican is committed to improving its workplace safety and creating an environment for our employees. We operate a very complicated business with large capital requirements. We're in the field 24 hours a day with logistics and engineering support, running specialized equipment in very remote operating areas under what are fairly extreme conditions. Our employees make our field execution look easy. And I can assure you, it is not. So thanks to our customers. Thanks to all our employees for their dedication to Trican and the Iron Horse division, which is now part of the Trican family. And I just want to say thanks to everybody as we can't do it without all the great staff that we have. So I'll stop there, operator, and we'll turn the call back for questions. Operator: [Operator Instructions] Our first question comes from Aaron MacNeil from TD Cowen. Aaron MacNeil: First question, you may not want to get into specific customers, but ARC recently removed Attachie Phase 2 from its 5-year plan and has withdrawn its broader Attachie-related guidance. Have you seen any direct impact of this yet? And how are you thinking about it in the context of overall basin demand for pressure pumping on a go-forward basis? Bradley P. Fedora: Projects are always being added and subtracted. We're not fussed by that. I mean there's nothing wrong with certain people like ARC sitting back every once in a while and saying, "Hey, can we do this a little differently? Can we do this a little bit better?" I mean maybe they should have used the dust to frac their wells. So -- but we're not too fuss. We're not too fuss by stuff like that. You're going to see that from time to time. It's an active basin. It's a technical basin. It's -- there's not -- that's healthy. Aaron MacNeil: Fair enough. But safe to say you didn't have any exposure to that directly? Bradley P. Fedora: No. We do work for them. There's no such -- we don't operate in a vacuum, like when things like that happen, assets get freed up. But no, I mean, we're still very bullish on Northwest Alberta and Northeast BC. Aaron MacNeil: Fair enough. Can you say a bit more about wet sand? How prevalent is it today? How prevalent do you think it will be in the future? And what the potential impact might be on your sand infrastructure assets and logistics businesses? Bradley P. Fedora: Yes. Like what Aaron is asking about is there's recently a few companies have been trialing wet sand in Western Canada. And what that means is just using a lower grade, but closer source of sand that generally comes more almost from a gravel bit than a frac sand mine. So it's not sorted. It's not dried, questionable consistency and quality, but it's close, which means it's cheap. Because by the time frac sand gets to location, probably 70-plus percent of the total cost of that sand is just the transportation of it. And so any time you get the opportunity to use a sand source that's very close to the project area, there's a big opportunity for transportation savings. Now you're -- what you're saving in transportation, you're giving up in sand size, consistency and quality. But [indiscernible] they did it in the U.S. I think we're having a look at it in Canada because it does have -- frac sand today is dried, because it does have water and it makes it a little tricky to operate in the winter. But we're -- the customers are going to trial it. It still needs to get from A to B. And so our logistics group is still going to be very much active in that. We don't really hold any other fixed assets from a logistics [indiscernible] I think any time the industry has the opportunity to cut costs, which will undoubtedly result in more wells being drilled, I think that's a good thing. But it will be a while yet before the wet sand sort of opportunity gets [indiscernible] very limited volumes at this point. It has been just a handful have been trialed with inconsistent results, frankly. Operator: Our next question comes from John Gibson from BMO Capital Markets. John Gibson: Just on pricing, you talked about it coming off in Q4 and to start of the year. As we think about the improved commodity backdrop and maybe a pickup in gas-related drilling, how do you expect pricing to go up or down as '26 progresses? Bradley P. Fedora: I think it is going to be fairly level here for a while with, I would say, an upside bias just with improving commodity prices [indiscernible] hard to say when, but... John Gibson: Does it differ per region? Or does it kind of rise and fall across the basin fairly evenly? Bradley P. Fedora: I would say it differs with definitely -- there's two very distinct -- there's natural gas and then there's oil with our Trican frac division versus our Iron Horse frac division, they're in two very different commodities, right? So you definitely can have sort of opposing forces going on at any given time. So we definitely would look at the two commodities distinctly there for those two divisions. John Gibson: Got it. In terms of the new fleet, will this be additive to your current horsepower? Or is it going to replace some older equipment? Bradley P. Fedora: No, we certainly hope it will be additive. When we were ordering this and just talking with our customers about what their plans were for the next 5 years, we don't see any reason why this won't be additive. But you may never get the timing exact, but certainly, we ordered this with the intention that it is fleet. John Gibson: Okay. And then last one for me. I'm not sure if you know the answer to this, but just given your last mile logistics moves over the past few years, along with some of your peers, can you estimate how much capacity you've added to the basin in terms of pumping capacity that was maybe previously constrained? Bradley P. Fedora: So what you're asking is, with improved logistics, how much pumping capacity increase does that result in? John Gibson: Yes. It seems like the last few years, one of the constraints was last mile logistics, and you and your peers have been working on this for quite a while. So I'm just wondering if and when things turn a little bit, what is the incremental sand you could pump or that sort of stuff that was previously constraint? Bradley P. Fedora: I couldn't tell you the answer to that off the top of my head. I would say this, though, I think the sand volumes are going to grow faster than our ability to add logistics assets. The sand volumes have grown from 4 million tonnes a year to 8 million tonnes a year in the last, say, 4, 5 years. And I would doubt that the logistics fleet has doubled. There's a long lead time on tractors and trailers and getting experienced drivers that can drive in the conditions that we're asking versus like long-haul drivers. My guess is we'll be fighting to keep up with the growth in sand volumes. Operator: Our next question comes from Colby Sasso from Daniel Energy Partners. Colby Sasso: I just wanted to ask, with exports from LNG Canada beginning in 2025 and further LNG exports anticipated in 2026, how does Trican expect these developments to influence the industry? And additionally, how is the company approaching the opportunities created by this emerging market? Bradley P. Fedora: Okay. That's a big question. Certainly, LNG, we -- remember when we produce 19 Bcf a day in Canada, when LNG Canada [indiscernible] train, I guess, you call it, is just under 2 Bcf a day. So we -- 10% of Canadian production is now getting exported. And as other LNG assets get added, I think you just -- you put a floor in your natural gas pricing because you're not just selling into the North American market anymore. A lot of the other things we don't talk enough about, too, is our customers have very sophisticated marketing [indiscernible] where they're selling gas, not just to Canadian LNG, but actually into U.S. LNG and other sales point around the U.S. So we're not just relying on a Canadian gas price anymore. So it should be a foundation of activity going forward that we've never had previously. And so what are we doing? I think I talked about that in the call, which is we're building the most technically advanced fleet, and we're continuing to reinvest our capital into the Canadian marketplace to ensure we're the #1 service provider as this industry unfolds in the next few years. So I think we'll be a direct recipient and our customers will be direct beneficiaries of the capital that we've invested. Operator: Our last question comes from Tim Monachello from ATB Cormark. Tim Monachello: I'll try to keep it short here. In terms of the commodity price rally that we've seen in oil and the Iron Horse outlook, it sounded like at least during the Q3 conference call that Q1 was going to be a pretty busy quarter for Iron Horse, and then you'll hit some typical seasonal slowdown. So I guess the reduced sort of outlook for the year, at least the Q3 was coming from the back half. So with commodity prices in that north of $65 range, do you think you can get back to that $80 million mark was sort of initially contemplated when the acquisition was done? Bradley P. Fedora: Yes, maybe not this year. Weather in Q1 actually probably affects them more than us, just given the wonky weather we had. So they're having a good Q1, don't get me wrong. But if we -- certainly, if oil holds into at these levels, we'll get back there. Exactly when? I don't know. But the workload is very elastic to oil pricing in that part of the world. So yes, we're still really happy with that acquisition. Tim Monachello: Do you get any sense from customers on, I guess, a changing mood or sentiment around what they're going to do in the back half yet? Or is that too early to call here... Bradley P. Fedora: Yes. The sense we get is, especially here at the $65 level, oil holds in here, that will -- there will be a direct drilling response to that. You need to have it for more than a couple of days, obviously [indiscernible] but certainly, when you talk to customers, they've got lots of what ifs built into their budgets, right? And budgets go up just as easily as budgets go down. So if we hold in at the $65 level, we would expect them to have a busy second half. Tim Monachello: Okay. Got it. And then second question, it sounds like you're building or deploying some new natural gas equipment in other ancillary service lines like in the trucking and Cementing business. Can you talk a little bit about, I guess, the capital outlay that's going to be required over the next couple of years to, I guess, integrate all of that equipment? And I guess, to what degree do you expect to replace equipment that's not natural gas or upgrade current equipment? Scott Matson: Yes. Tim, if we kind of look at 2026 on its own, about half of our capital program is what we would call expansion. So our $120 million split it in half, roughly $60 million of that is expansion. And the bulk of that, about $40 million of it is related to our natural gas fleet. So that's kind of a ballpark number you would need to think about if we go forward, maybe one of those fleets per year would be the maximum we could possibly do just from a timing and the logistics and a build perspective. But we're certainly not in a -- we're not in a massive rebuild CapEx cycle. As we pick away at things like natural gas tractors and the logistics side, those are small bites as we go through. And then even thinking about the stuff that Brad was talking about around the Cementing assets, those are fairly small bites as well. So I don't see this as the start of a massive CapEx cycle. We're going to pick away on it. And the biggest chunk by far would be kind of looking at that natural gas frac fleet. Tim Monachello: Got it. And the one cementing unit, I guess, it's going to be natural gas. Is that an upgrade? Or is that like a new unit? Bradley P. Fedora: It's an upgrade. And so it wouldn't be full natural gas tractor and stuff. It's -- a certain part of it will be -- will basically be electric, yes. And so it's called a hybrid unit. We're looking at fully electric, what we would call fully electric units. And what happens is you've got the electric -- these big electric drilling rigs on location. And so we sort of basically for lack of a better way to [indiscernible] when we get there. And so you're -- electrical generation equipment like frac because, of course, that just wouldn't be practical. Your cement jobs don't last that long. So as the rest of the industry sort of generates -- is generating electricity via natural gas on location that allows us to sort of evolve and build out assets that can work in conjunction with them on location. Operator: And we have no further questions. I'd like to turn the call back over to Brad Fedora for closing remarks. Bradley P. Fedora: Okay. Thank you, everyone. We appreciate your time and your attention to our call. If there's anything else you'd like to ask, please just call us. We'll be in the office all day today. Thanks again. Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Gustaf Meyer: Hi, everyone, and welcome to Redeye and today's interview with the CEO of Senzime, Philip Siberg. Welcome, Philip. Philip Siberg: Thank you. Nice to be here. Gustaf Meyer: Earlier today, you released your Q4 report, and we also have some investor questions. But first, maybe we can have like a broad question at first. If you talk about the sales, SEK 28.3 million during the fourth quarter. You also installed 416 new TetraGraphs systems. How would you summarize the quarter and also, of course, the full year of 2025? Philip Siberg: So Q4 was pretty good. We doubled the business more than that. I had probably expected more. So a little bit came in, in January. It's always hard to define these closings of large hospital systems. But all in all, I think we had another strong year. We delivered according to our messaging and our guidance. We're continuing to strengthen our market position, and we're seeing a continued very fast conversion to our technology. And it's interesting to see as well that it's not just U.S. now that we -- in the Q4, we had strong uptake in Asia and European market as well. Gustaf Meyer: And you mentioned the timing there. But if we look at the number of new installed systems, 416, if you compare that to Q2 2025 and also to Q3, it's a bit lower. But that also depends on how many upgrades you have been doing during the quarter. So maybe you can elaborate on that. And yes. Philip Siberg: Yes. So I mean, during 2025, we definitely had a few U.S. accounts specifically who decided to upgrade from the previous classic TetraGraph to our new next generation. The response has been very positive. And as I presented, the utilization rate has spiked up significantly among these accounts and seeing across the line over 50% uptick in usage. So there were a few hundred devices last year, I think predominantly during the spring and summer that were upgrade deals, while during the fall, it was more normal deliveries. I think it -- I mean, the number of monitors varies a little bit quarter-to-quarter, just depending on when the contracts come in. And as I mentioned, just we had some major contracts come in, in January instead of closing in December. December and Q4 is specifically in the U.S., a tricky quarter. It's Thanksgiving, it's holiday season, and it's hard to push purchasing and contracting to close with the same urgency as we want as a company. Gustaf Meyer: Great. And if we look at the full year, the total sales or the reported total sales came in a bit lower than your guidance of SEK 110 million to SEK 140 million. However, if we look at the fixed currencies, you reached that target. Of course, one of the reasons is the weakened dollar. Are there any other reasons why you're in the lower end of this guidance if we look at fixed currencies? Philip Siberg: Yes. Thanks for good summary. Definitely, the dollar and the euro affected us top line-wise. We had expected regulatory processes in Japan and South Korea to move faster than they did. So we had expected for the year to start delivering great volumes of next-generation TetraGraphs into these regions. We did get the regulatory PMDA approval in Japan in December. So we had our first shipments there. And Korea is still in the process and should happen mid- to late 2026. So once that is in place, I foresee continued strong growth there. So that -- and uncertainties in some of these deals when they come in or not, I think it was really the currency effects and just delayed regulatory processes beyond our control. Gustaf Meyer: Maybe we can also focus a bit on the South Korean market because I saw your presentation earlier today, and you showed a really nice graph about the usage rate in South Korea, and it has increased a lot. What are the main reasons for this? Philip Siberg: So I think it's -- South Korea is an interesting early adopter, fast-moving market, likes technology. We came in there a couple of years ago with a strong partner. We've been kind of methodically working to develop it, and now we're really seeing the results from it. I would say that we have a strong market position by now. Our local partner is successful in their business model. I'm just seeing that the conversion to EMG is now kind of double-digit conversion. So moving very fast. And there is a little bit of reimbursement available in the local market, which we believe is going to increase as well as come into the Japanese market. So those are some of the driving factors. But I think that it showcases as an example of how we can develop markets once we're in there and working methodically, you can get to these types of utilization rates, which is in line with our long-term plans. Gustaf Meyer: Great. If we move on, also talk about the costs. OpEx increased a bit during Q4 if compared to, for example, Q3. Maybe you can add some color to that. Philip Siberg: It did. I mean Q4 is always a more expensive quarter. We have a lot of marketing events. We always have our big congresses happening. And there's always a little bit of an extra boost in terms of sales expenses and commissions. But we did have roughly SEK 4 million to SEK 5 million that were, I would say, onetime effects in the fourth quarter. I did not separately report these as onetime effects, but they were certain expenses that we incurred that we took in Q4. So I think it's -- as we look ahead for 2026 and this year, we're anticipating a flat to decreased operating expense level for this year. Gustaf Meyer: And when you have that guidance, does that include the one-offs in Q4? Philip Siberg: So the one-offs are not supposed to happen again in 2026. So that's why I foresee an operating expense level, which is lower than what we had in 2025. Gustaf Meyer: Great. Also in the report, you had this inventory write-down in the cost of goods sold. What is the reason behind this? Philip Siberg: Yes. So the reason -- I mean, we've had the TetraGraph Classic on the market for a couple of years. And then as most of you know, we introduced the next generation just over a year ago. That platform has been extremely well received. We're seeing increased uptick in usage. So we decided here strategically that we want to carefully start end-of-lifing the classic because of the superiority of the NextGen platform and really the focus that we're doing it. So we decided to make a write-off of some of the older raw material and kind of components related to it and decided to take it in the '25 books. We're still going to remain with the product in the market. We need to have it for 7 years as part of regulatory requirements, but really pushing out the NextGen at a higher price point this year and continue to drive up utilization rates. Gustaf Meyer: Because if we look into 2026, first of all, maybe what trends do you currently see? And also in the report, you have the guidance that you expect growth to be at the same level as in previous years and also you expect to become cash flow positive during Q4 this year. Yes, maybe you can just summarize your overall expectations and also how will you -- what will you do and what actions will you make to reach this target? Philip Siberg: Yes. I think the -- I mean, the headwinds of our business and the tailwinds, sorry, continue to be strong. I mean there's a continued very strong underlying macro effect for neuromuscular monitoring in general, more and more guidelines coming out, more and more data supporting the conversion. I would say that the EMG technology that we are spearheading has certainly taken over as the new gold standard. But it's -- you don't convert large hospital systems overnight, but I think we're winning after winning, and we're really making our success story here. So as I look into this year, we're foreseeing continued growth in all our markets. We're foreseeing continued increase in utilization and using of sensors. And how we do that is work very tightly with our customers. We have a dedicated clinical team that helps to educate, helps to create standardization protocols. We're very methodical in the way we choose our customers. So we make sure that wherever we sell and that we install, there is a clear long-term uptick and usage trend among our customers. I mean we've seen published papers come out looking at other technologies on the market, other similar types of products. And when you don't have that kind of support that we offer, then the usage rates are very poor. So that's part of our mission to have the science, have the team and have the technology to really drive up usage. Gustaf Meyer: Interesting. Also, this morning, you also announced that you have secured a SEK 50 million credit facility. What are the reasons behind this? Philip Siberg: Yes. So we -- I mean, as part of being a fast-growing company, you have -- we have a working capital needs here. We partly need to -- the expectations from our customers are very fast deliveries. So we're kind of tying up a fair amount of capital in inventory, et cetera. And what we wanted to kind of show and have is just the security as we continue to grow that we have this kind of a credit line. So as we have peaks in working capital needs throughout the next 18 months, 24 months, we have the ability to kind of draw that money. And I've been clear to the market before that we're not expecting to do any rights issues or capital raises from equity rather we're funding this company now based on our customers, but also having a little bit of -- we're growing up as a company. I think it's a strong vote of confidence showing that we have a bank and a credit facility to continue to grow this company. And again, this is fair market terms. There are no special covenants or other types of dilutive instruments tied to this. So it more gives the company an assurance to continue to grow in the path we're on. Gustaf Meyer: And also, I guess that this could be related to actually one of the questions that we got from an investor. If you could -- yes, you have talked about introducing a new business model. What is that -- what kind of business model is this? Philip Siberg: Yes. So we're -- I mean, we're seeing that -- I mean, if you look at reference case, Intuitive and the da Vinci robots, I mean, probably the most successful medical device company out there. A big part of their business case has been to do different types of robotics as a service. And we've just seen that there's been a customer demand among hospitals to offer if we could have the TetraGraph as a service offering where you link it to usage rates of disposables. So what we've introduced is a Tetragraph as a service business model. We then offer the monitors on a placement type of agreement. We get a premium pricing for the sensors. We link it to various types of agreements around this. And what we've seen is that the sales cycle reduces about 50% in time because the hospital is no longer relying on burdensome capital processes. So this makes it easier to rapidly deploy into large accounts. We won a number of these deals. It ties up a little bit more working capital or CapEx for us because we own the instruments, the monitors. But the upside of this is that we're getting a significant premium on the sensors. So the return on investment of this is very short and long term, it drives up gross margin and ultimately revenues and earnings. Gustaf Meyer: But just to clarify, this is only in the U.S., right? Philip Siberg: This is the U.S. only. Gustaf Meyer: Yes. But if you look into 2026 then, how many of your new customers do you expect to have this updated business model and... Philip Siberg: Yes, it's hard to say exactly the split. I mean there's definitely a lot of interest among hospitals, but hospitals also are very clear on their strategies. Some simply want to do capital purchases. They want to own the goods. Some of our best customers in the U.S., we have placement agreements with, where we tie usage of the device and secure revenues from that. But this is a third business model where we provide it as a service. But I think that we're going to see a large part of our -- a significant part of our business this year in the U.S. is going to be that. And we've already signed two important deals very fast this year. So I think it's going to help to drive business. Gustaf Meyer: Interesting. Also, another question from an investor was about the manufacturing of the system and also the sensors. Could you elaborate a bit more on the manufacturing location and also components and so on? Where do they come from? Philip Siberg: Yes. So we're Uppsala based. We have a strategy. We produce all the monitors here in-house. I try to drive a very church tower principle, meaning that I want to see my suppliers. I want them to be local because we drive a very sustainable business model in the production where ISO 14001. We are connected to the UN Global Compact. So it's all about making sustainable production. So we produce it in-house. We have the capacity here for the next 5 years to meet the business plan in the current setup. The disposables, we are the legal manufacturer as well, but we produce them together with partners. And we are shifting all our kind of sub-supplies and base manufacturing from Asia to Europe. So we're really localizing this to be a European, Scandinavian manufacturing process. Gustaf Meyer: Many of the investor questions have already been discussed in previous questions during this interview, but we also got a question about if you could give an update on the patent situation? Philip Siberg: Yes. So we continue to invest and really drive innovation and science in the market we are in. We currently have 107 patents approved for our portfolio. We filed 8 new patents in 2025. So really driving field and coming out with new innovations. And I've shared before, what we're doing here is we're continuously coming out with a new feature set and more and more becoming a software company where we're providing -- since we're pulling in so much data from our users, we can use that data to further train, innovate, come out with new feature sets. So our customers can always be assured that they have the latest science and features and benefits of the technology that we have. So a customer of Senzime is not just buying a onetime device. They're buying a 7-year cycle of significant new feature sets coming out that will ultimately drive patient outcomes. Gustaf Meyer: Great. Maybe just the last question here because we haven't talked about that yet, if there are any other Senzime products that are in development? Philip Siberg: There is always a lot of exciting things in development. So keep your eye out. We're going to come out with more things this year. And this is I would say, solutions and products that are adjacent to what we're doing today to help drive up usage rates to make it more universally connectable. Remember that probably 99% of all our monitors today are connected to electronic health records and external monitors. So it needs to be universally connectable to any system and transmit data. But there's more in the pipeline, and there is more in our research lab that we have in the long-term road map, including further development of the RMI ExSpiron technology that we also have in-house. And there are exciting things that are to come. I will get back when that is ready. Gustaf Meyer: And I guess that we all look forward to that. Thank you very much, Philip, for this interview. Philip Siberg: Thank you very much.
Operator: Thank you for standing by. Welcome to the Danone 2025 Annual Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. Our speakers today will be Antoine de Saint-Affrique CEO; and Juergen Esser, CFO. I would now like to hand the conference over to your speaker today, Mathilde Rodie, Head of Investor Relations. Please go ahead. Mathilde Rodie: Thank you. Good morning, everyone. Mathilde Rodie speaking, Head of Investor Relations. Thank you for being with us this morning for Danone's Full Year 2025 Results Call. I'm here with our CEO, Antoine de Saint-Affrique; and our CFO, Juergen Esser, who will go through some prepared remarks before taking your questions. And before we start, I draw your attention to the disclaimer on Slide 44 of the presentation related to forward-looking statements and the definition of financial indicators that we'll refer to during the presentation. And with that, let me hand it over to Antoine. Antoine de Saint-Affrique: Thank you, Mathilde. Good morning, everyone, and a warm welcome to you all. Thanks for joining Juergen and me today for our full year results '25. Moving to Slide 3. Before we focus on what is a very good set of results, I thought it was important to talk about the recent development regarding Infant Milk Formula. It is obviously top of mind for everyone and to start with and most importantly, for all the families that rely on us daily. I know how much the current events are disturbing and worrying for them. This is the last thing you want to live through when you are feeding the most precious person in your life. We obviously take this extremely seriously. And there, let me be clear, food safety and quality are -- have been and will always remain our top priority at Danone. We are confident in the safety and quality of our products, which are supported by extensive scientific evidence and rigorous testing. In the light of recent events, we went back to review the level of consumer complaints over the period in question, and we didn't find any cause for concern. However, in the context of the ongoing evolution of authorities' requirements, we are working closely with those national food safety authorities and are taking action to comply with their new requirements. We have been recalling from relevant markets, essentially in Europe and now in the Middle East, batches of Infant Formula products. While doing this, our focus is on supporting parents and health care professionals, providing clear information and helping to restore trust as their trust makes all the difference. Let me now get into the results on Slide 4. We are pleased to share with you another set of strong and good quality results. The numbers you see on this chart are more than figures on the page. They reflect the hard work, the commitment, the passion of the Danoners. And I really want to thank each and every one of them for that. '25 marked the first year of Chapter 2, our Renew strategy, and we delivered a strong plus 4.5% like-for-like sales growth. Importantly, this performance was consistently underpinned by positive volume mix throughout the year, contributing plus 2.7% in '25. This quality growth, combined with disciplined execution and continued productivity gains, resulted in a plus 44 basis point improvement in our recurring operating margin, reaching 13.4%, all while continuing to invest behind our capabilities, our brands, our science and our innovation. Our solid operational performance and strong financial discipline also translated into recurring earnings per share growing plus 4.6% in '25, reaching EUR 3.80, close to all-time high and a robust financial position with EUR 2.8 billion in free cash flow generation. Last but certainly not least, and fully aligned with ambition to create sustainable value, we further improved our ROIC in '25. It is now firmly anchored into double-digit territory with a 62 basis point increase versus last year. And what is important as well, we achieved all of this while driving sustainability in a way that is focused and impactful because we firmly believe it is essential to the long-term resilience of our business. This year, we were again recognized on the CDP Triple A list, reflecting our leadership in transparency and performance on climate, water stewardship and forest preservation. We also achieved worldwide B Corp certification. These milestones marks the culmination of a decade-long journey and highlights our long-standing commitment to combining strong business performance with positive social and environmental impact. Taken together, the '25 performance you can see on this chart reflects the strength and the resilience of our unique health-focused portfolio. And this performance is deeply connected to the structural trends that are reshaping the food industry. Moving now to Slide 5. As I've shared with you before, I believe that the food industry is at a tipping point. Around the world, people are increasingly aware that what they eat and their health are more intertwined than ever. With every new insight into the power of nutrition, consumers are raising their expectations, and they are seeking better choices for themselves and for their families. Health through foods has never been more relevant. This is exactly where Danone is uniquely positioned to lead. Our health-focused approach, supported by science and a strong focus on delivering high-quality offerings position us uniquely to provide nutritional solutions that support people at every stage of life. It is not just what we do. It is what consistently guides our strategy and execution, and we see the results. Our categories continue to outperform the broader food and beverage industry, fueled by powerful and converging trends, all pointing in the same direction. Consumers everywhere are choosing with health in mind. Protein, for instance, are essential for good health at every stage of life and demand continues to rise, particularly among people using GLP-1 who are actively seeking ways to preserve strength. But consumers today are looking for more than just higher protein. They increasingly see nutrient dense, high-quality protein supported by the right dietary complements. This is where fibers play a critical role. Most population worldwide consume 20% to 30% less fiber than recommended despite very strong evidence linking low fiber intake to a high risk of major noncommunicable disease. Fibers are also fundamental to gut, immune and metabolic health, and they help body to absorb and use protein more effectively. Protein and fibers represent a major long-term growth opportunity, and we are strengthening our leadership accordingly, building on our capabilities in the field of biotics. Finally, Medical Nutrition continues to demonstrate its positive impact on the life of patients. As we highlighted at our CME in June '24, the right medical nutrition helps patients stay on their treatment over time, recover more effectively, especially after surgery and return home sooner. Faster recovery not only improves patients' life, it also delivers clear health economic benefits for the health care system. Taken together, these trends point to a clear reality. People everywhere now expect their food to actively support their health, and this is where Danone is uniquely positioned to lead. With close to 90% of our portfolio scoring 3.5 stars or more under the Health Star Rating system, we deliver every day nutrition that is high in protein, rich in fiber and grounded in biotics alongside medical nutrition that makes a meaningful difference in people's lives. And it's nutrition that tastes good. These long-lasting trends underpinning our performance, as we can see on Slide 6. Our 4.5% like-for-like sales growth in '25 has been powered by our fast-growing platforms, notably high protein, gut health, infant formula and medical nutrition. Starting with high protein. Our rapidly expanding range built on the strong product superiority and differentiated functional benefit continues to drive penetration across geographies, supported by the ongoing rollouts of innovations. In the U.S., Oikos PRO exceeded EUR 1 billion revenue in '25, a clear demonstration of the scale and relevance of this platform. The broader shift towards value-added dairy is also supporting the growth of our Danone brands with a strengthened portfolio, including [indiscernible] the brand also surpassed EUR 1 billion revenue mark in '25, delivering high single-digit growth for the year. Gut health and fiber are also strong growth drivers, particularly for Activia, where we have started to reclaim our leadership territory in gut health. With innovations in kefir and fiber enriched products, Activia returned to growth in Europe in '25. Also in Europe, Alpro is another key growth engine. As the leading plant-based brand and EUR 1 billion platform, we are driving category momentum through innovation. We continue to evolve Alpro beyond an ingredient-led dairy alternative into a benefit-led plant-powered nutritional complement to dairy, something that you can see in our latest packaging. And we are expanding our product range, especially in yogurts to meet this growing demand for flexitarian diets. In Infant Milk Formula, our premiumization strategy around Aptamil continued to deliver strong results in '25. Aptamil achieved double-digit growth, enabled by the renovation of our core range and the rollout of superior innovation, addressing specific nutritional needs, supporting the healthy growth and development of children. We also continue to expand our reach across markets, building on our strong momentum in China and delivering remarkable performance in India and across Southeast Asia, where, for instance, the Aptamil business doubled in Vietnam in just 1 year. In Medical Nutrition, we are seeing strong growth across both adult oral nutrition and tube feeding. Our flagship brands, Fortimel and Nutrition together now represent a rapidly growing EUR 1 billion platform. We continue to expand our portfolio, including hybrid protein solution designed to improve tolerance and adherence, helping more patients access the nutrition support they need. So as you see, our growth engines are firing and the momentum is clear. But delivering today is only part of the story. Moving to Slide 7. At our last CME, we set out the ambition for Renew Chapter 2, doubling down on the fundamentals while further transforming the business. This is what we started doing in '25, launching science-based innovation, staying true to our health-focused approach while pivoting the way we look at our categories to unlock significant new opportunities. As I mentioned earlier, fibers play a crucial role in health. And at the end of last year, we launched Oikos Fusion, a high-protein product enriched with prebiotic fibers to support digestive health. It is particularly well suited to consumers looking to manage their weight, including those using GLP-1 medication. In the same spirit, Alpro recently launched its new Meal To Go drinks, nutritionally balanced plant-based meal replacement designed for busy lifestyle offering 20 grams of protein and 26 essential vitamin and minerals. We are making the healthy choice, the easy choice. We're also reclaiming our leadership where it matters most, beginning with gut health. We are reestablishing Activia as the global reference in gut health. In markets such as Japan and Australia, where we are winning, we leverage the fact that our Activia products contain probiotics up to 100x stronger than regular yogurt, supported by scientific evidence and studies, and this is only the beginning. Finally, we're committed to further broaden our channel footprint to further reinforce the resilience of our model, and this is happening. In '25, channels outside mass retail grew significantly faster than mass retail. Our specialized channel, be it pharmacies, hospital, home care delivered double-digit growth. We are reaching more people in more places at all stages of their lives. Let's move to Slide 8. We keep focusing on execution and competitiveness, strengthening some of our key capabilities. In operations, we have made significant progress over the past years. We are operating with greater agility and speed, and we are proud now to rank 10th in the Gartner Top 25 Supply Chains, the highest ranking for an FMCG company. In '25, we continue to deliver strong productivity gains, supported by the growing digitization of our operations from the shop floor to the shelf. We are accelerating our transformation. Through our Industry 5.0 approach, we are equipping our teams and factories with advanced digital and AI-enabled capabilities from automated quality system to predictive maintenance and real-time performance visualization. Our Industry 5.0 Academy is upskilling 20,000 employees globally, while a network of 10 pioneering factories is piloting our digital factory of the future. Beyond manufacturing, we're also strengthening digital execution across our end-to-end value chain. AI-enabled planning hubs, increasingly automated shared service centers and new in-store visualization tools are improving accuracy, speed and efficiency with which we serve our customers and our shoppers. While we are making progress on a number of fronts, not everything is working as it should, and there is still much more work to do to address underperforming areas. It is clear that in the U.S., our performance in '25 didn't meet our expectations. We are not where we should be, and we know we need to step up our game. Winning in this market means going further than protein or specialized nutrition. It means elevating the rest of our portfolio from creamers to nonprotein yogurts to plant-based and showing up there is -- there with the same strength and relevance that we do today in High Protein or SN. As you certainly have noted, we appointed a new Americas zone President, [ Henri Bruxelles ] and made broader organizational changes to rebuild a culture of winning, one anchored in execution excellence and the right operational intensity. We've made significant leadership change, and we are starting deploying [ at space ] innovation proven in other geographies and align with consumer shifts. Alongside addressing underperformance, we are also broadening our reach by investing to capture new growth goals. We are expanding capacity where it matters most in High Protein, Skyr, Kefir, Alpro and Medical Nutrition across Europe, China, the U.S. and Japan. These investments will progressively allow us to capture growth opportunities to their full extent, support very strong demand in High Protein and enable us to better serve emerging trends across the rest of the categories. Moving to Slide 9. Through sustained long-term performance and build durable competitive advantage, we are strengthening the capabilities that truly differentiate Danone. We believe the future of dairy lies in empowering farmers to build more resilient and sustainable supply chains. That is why we launched the Danone Milk Academy, the first of its kind, multi-year global platform, bringing together academia, technical partners and Danone expertise to provide farmers with practical knowledge, science and digital tools. With an approach tailored to different regions and to farm size. The Milk Academy will strengthen the dairy supply chain and accelerate the long-term transformation of dairy farming. The same spirit underpins our Partner for Growth initiative. More than a program, it is a catalyst for share value, moving us from transactional relationship to deep partnership with our suppliers. Since its launch over 2 years ago, it has allowed us to boost efficiency, unlock capacity and advance our sustainability goals. We are deliberately building a resilient multi-sourced supplier ecosystem, combining the right diversity and the right quality and partnering with suppliers who share a long-term collaborative mindset. Importantly, this approach also strengthened our innovation capabilities and enhances the robustness of our supply chain. Speaking of innovation, we keep investing in cutting-edge research to build lasting differentiation. We recently inaugurated our OneBiome Laboratory in Saclay, accelerating research in the gut microbiome by leveraging proprietary scientific data, clinical studies and deep consumer understanding. We also acquired, as you know, The Akkermansia Company, bringing a clinical proven biotics strain with the potential to reinforce the gut barrier, a capability that will increasingly drive further differentiation across our products. Finally, we continue to invest in skills and leadership. Through initiatives such as DanSkills, we are equipping our teams with the critical capabilities of tomorrow, driving for continuous functional and leadership upgrade. We also pursued a cultural transformation initiated 4 years ago, one made of focus on execution, passion for consumer and one we are performing and transforming go together. Let's move to Slide 10. As part of Renew Chapter 2, we also made it clear we will move to the front foot on acquisition. In '25, we started executing on that ambition with a strong focus on strategic fit and disciplined governance. Following the acquisition of Kate Farm, we now have a $500 million Medical Nutrition platform in the U.S., making it the first time we have achieved meaningful scale and reach into the health care system and hospital infrastructure in the country. Importantly, this platform is built on a product portfolio that is truly differentiated, addressing patient needs for more complete and healthier nutrition. The integration with our existing Medical Nutrition business is progressing extremely well with Kate Farm delivering strong growth. Our ambition is clear: to build a powerful growth engine in North America. In doing so, further rebalance our category mix in the U.S. We're also pleased to have acquired last week an additional 1% stake in our Australian dairy joint venture with Saputo following the exercise of our call option. Concretely, this brings our ownership to 51%, resulting in the financial consolidation of the business. We operate in dairy across Australia and New Zealand through 3 strong brands: YoPro, Activia and Ultimate, which together generate over [ EUR 100 ] million in revenue in '25. We hold a leading position in both High Protein and Gut Health. And interestingly, this is where our High Protein journey began as early as 2016 with the initial launch of YoPro. So taken together, this move illustrates how we are actively shaping our portfolio to support sustainable long-term growth. And with this, let me hand it over to Juergen. Juergen , over to you. Juergen Esser: Thank you, Antoine, and good morning to all of you. Let me start our financial review with our sales performance on Slide #12. As you have seen from the press release, we closed year 2025 on a strong note with like-for-like sales growth of plus 4.7% in Q4, closing a year of consistent delivery. Importantly, growth was again driven by volume mix at plus 2.5%, while price added plus 2.1% in Q4. As we deploy Chapter 2 of our Renew Danone strategy, we leverage our well-diversified portfolio, delivering quarter-after-quarter sustainable growth across regions and categories. This becomes even clearer when turning to Slide #13. For the full year, like-for-like sales grew plus 4.5% with all regions and all categories contributing. We will dive into regional details shortly, but let me mention here the standouts. First, Europe, which has delivered a very solid year with now 9 consecutive quarters of positive volume mix and continued progress in the dynamics of its EDP portfolio. And the undeniable highlight of the year 2025, CNAO, which delivered exceptional performance across all subregions from China to Japan to Oceania. This should not distract from the performance in North America, which did not live up to our expectations, as Antoine mentioned, especially in the second half of last year, a key priority for improvement in year 2026. And finally, our more emerging markets in Latin America and Africa, Middle East. We do not talk much about them, however, worth stating that they delivered a very sound year 2025 and finished on a high note in the last quarter. Those regional dynamics are also reflected in the growth reported by category. In our EDP business that delivered a very solid year with plus 3.5%, benefiting from a very dynamic market environment all over the world. In our Specialized Nutrition business that posted like-for-like sales of plus 7.4%, reflecting strong demand for both our Infant Milk Formula as well as our Medical Nutrition products. And lastly, in our Waters business that grew by plus 1.9% in 2025, the solid result considering the very uneven weather patterns across the region. Before turning to the regional review, let me comment on our sales bridge for the year on Slide #14. Our plus 4.5% like-for-like sales growth was driven by a plus 2.7% contribution from volume/mix and a plus 1.8% contribution from price. Outside of like-for-like, we saw a negative 4.4% currency impact due to the appreciation of the euro against most currencies. Scope was slightly negative at minus 0.4%, reflecting the deconsolidation of Horizon Organic in early 2024, partly offset by the acquisition of Kate Farms from the third quarter onwards. Altogether, reported sales ended broadly stable at EUR 27.3 billion. Let's now take a closer look at the performance of each region, starting with Europe on Slide #15. Europe confirmed its positive momentum in Q4 with plus 2.5% like-for-like sales growth and continued positive volume mix at plus 1%, while price contributed plus 1.5%. As you can see from the chart below, performance was steady throughout the year as the team continued to progress in the transformation of the EDP portfolio. Also in this last quarter of the year, high protein, kefir and Skyr all grew at double-digit rates. Our work on Activia, refocusing on gut health and Fibers is in parallel starting to pay off as the brand delivered positive growth in Q4 across the region, including in key countries such as France, U.K. or Spain. Too early to declare victory, but the trajectory is promising. Next to Dairy, the Plant-based portfolio continued to perform strongly with Alpro again posting very solid competitive growth. The growth in Specialized Nutrition was driven by especially the solid momentum in Adult Medical Nutrition with strong performance from brands like Fortimel and Nutrison. And our Waters category delivered a very strong finish to the year, notably driven by Volvic with its innovations in flavored and functional water as well as by the Evian brand. For the full year, Europe grew plus 2.3% like-for-like with 1.9% contribution from volume mix and solid recurring operating margin increased to 12%. This reflects the combination of solid gross margin improvement, thanks to operating leverage and significant reinvestments behind innovation and product superiority to fuel the growth momentum for the years to come. Let's now move to North America on Slide #16. The last quarter of the year in North America was soft with plus 0.7% like-for-like sales growth driven by plus 1.3% price. We continue to see strong demand for our High Protein platform that keeps growing at double-digit levels, supported by consumer shift towards healthier choices. The Oikos brand is going from strength to strength, further expanding its market shares in the category. The growth of Oikos is unfortunately, to a large extent, offset by the unsatisfactory performance of our Plant-based and Coffee Creamers business. In Coffee Creamers, we have seen our market share is increasing progressively. We are, however, clear that we need to double down on our efforts to bring International Delight back to where it belongs. To address the fast emerging clean label segment, we launched under the 2 good brand, a new coffee creamers range offering low sugar levels with no artificial sweeteners. Year 2026 shall mark for our Coffee Creamers business a year of recovery and return to growth, specifically from the second quarter onwards when base of comps will ease. Next to EDP, our Medical Nutrition business had a strong quarter. The legacy Nutricia business is growing well, led by the Neocate brand, while Kate Farms, as Antoine mentioned, continues to scale rapidly as we progress on the integration. This will be more visible from the third quarter of 2026 onwards, but we will reflect Kate Farms in like-for-like. For the full year, North America grew plus 2% with plus 0.6% contribution from volume mix and plus 1.4% from price. Recurring operating margin stood at 11%, down by 39 bps, reflecting the need for investments to rebuild top line momentum. Let's now go to China, North Asia and Oceania on Slide #17. The CNAO zone delivered an exceptional year, closing Q4 with like-for-like sales growth of plus 10.4%, driven entirely by volume mix. We continue to win in Specialized Nutrition, where we achieved double-digit growth with a similar performance in Infant Milk Formula and Medical Nutrition. In IMF, Essensis continued to drive market share gains. In a normalizing category context after the Dragon year boost, we remain focused on our competitive performance. Thanks to the great job of the team around Bruno, we are very confident in our ability to keep growing through premiumization, further consolidating a still fragmented market. Next to IMF, we saw the demand for our Medical Nutrition brands, notably Fortimel Neocate remaining very strong also in the last quarter of the year. In EDP, Japan delivered again a remarkable performance in Q4, thanks to its 2 functional brands, Oikos and Activia. As Antoine mentioned, we are pleased to consolidate in the future the dairy joint venture we have in Australia. Australia is like Japan, a very functional market where High Protein and Gut Health platforms are thriving, which bodes well for the future performance of our EDP category in this part of the world. Finally, in Waters, Mizone completed a strong year with stable performance in Q4 in what is traditionally a very small quarter for the category. We have intentionally managed stocks down to minimum levels as we are, as we speak, launching with the Chinese New Year, several renovations gearing up for the 2026 season. For the full year, CNAO sales grew plus 11.7%, entirely driven by volume mix of plus 12%. Recurring operating margin was slightly lower at 29.2%, reflecting increased investments to support further market share gains, notably in Specialized Nutrition and in Waters. Let's now look at Latin America on Slide 18. The region delivered a strong Q4 with like-for-like sales growth of plus 8.3%, predominantly price-led. EDP delivered competitive growth across the region, and let me here highlight particularly the Danone brands as well as the high protein platforms with the Oikos and YoPro brands. Specialized Nutrition continued its strong momentum, driven by Aptamil and Medical Nutrition across both pediatrics and adult ranges. And finally, Waters that returned to growth in Q4 after a difficult season. For the year, Latin America grew plus 6% like-for-like. We are making good progress in addressing the margins in the region and recurring operating margin increased significantly to 6.4%, nearly 3 points higher than a year ago. This was driven by underlying margin improvement as well as IAS 29 effects turning positive. Finally, let's have a look at our AMEA region on Slide #19. The region closed year 2025 strongly with like-for-like sales growth of plus 8.3% in Q4, driven by plus 5.5% from volume mix. In EDP, Dairy Africa continued to post strong volume mix-led growth. Specialized Nutrition grew at double-digit levels with strong performance across all subregions. The Aptamil brand kept gaining market shares, and we believe we have plenty of headroom to further expand in the region. For the full year, AMEA delivered plus 5.6% like-for-like with volume mix of plus 1 point -- 2.1% and price of 3.5%. Recurring operating margin was steady at 10.4%. I suggest we concluded the performance review of our regions. And so let's move on to the margin bridge for the full year 2025 on Slide #20. Our recurring operating margin increased by plus 44 bps in 2025, reaching a level of 13.4%. The main driver was once again the expansion of our margin from operations at plus 77 bps. This is reflecting our focus on volume-led growth as well as continued productivity gains across our cost of goods sold. Staying true to our business model, we continue to reinvest behind our brands and products to fuel future growth avenues and drive category leadership. These reinvestments have, as predicted, moderated in year 2025 compared to previous years. Lastly, the contribution from other effects that mainly represents the positive impact from the application of IAS 29. The solid margin increase of year 2025, combined with our strong like-for-like sales growth has been the key driver of our recurring EPS performance. Let's move to the next slide, Slide 21, to get into the details. Our recurring EPS grew at plus 4.6% in hard currency last year, reaching EUR 3.80. Strong operational performance, which we just went through, was the key driver with plus 5.9%. Higher refinancing costs and the final impact of 2024 disposals weighed slightly on EPS, but these were partially offset by tax associates and minorities. The negative currency impact was largely offset by IAS 29. We are delighted to report that we are delivering on our value creation commitment across all key financial parameters. And so I suggest we move to the next slide, Slide 22, to provide you with some more details. We delivered last year EUR 2.8 billion of free cash flow, reflecting strong operational performance and strict financial discipline. Importantly, we achieved a strong cash flow while stepping up our investments into the business, never compromising on what will always be our #1 capital allocation priority. In 2025, we increased as predicted our CapEx spending with a focus on capacity creation for medical nutrition and functional dairy. Our strong cash generation enabled us to pursue targeted M&A, including for the acquisition of the Kate Farms company, while at the same moment, slightly reducing our leverage. We're also very pleased that we have further increased our return on invested capital to 10.7%. As you know, expanding the ROIC and keeping it structurally at double-digit levels is key in our value creation journey. And finally, let me mention that we will propose a dividend of EUR 2.25 per share, up around 5% versus last year, in line with the EPS growth. These solid results make us confident in our ability to deliver on our future value creation ambition, which leads me very naturally to my last slide, Slide #23, our financial guidance. In line with our midterm guidance, our ambition for year 2026 is to achieve net sales growth of plus 3% to plus 5% like-for-like with recurring operating income to grow faster than sales. And with that, let me hand it back to Antoine for the conclusion. Antoine de Saint-Affrique: Thank you, Juergen. And as we close this call and before opening the floor to questions, I would like to leave you with a few final thoughts, and I suggest we jump straight to Slide 25. Our priority remains to perform consistently while continuing to transform the company. We pursue this through innovation and disciplined acquisition, positioning the business for the future and selectively capturing opportunities in what is a fast-changing environment. Our focus remains on the high-growth value-added segments, where science and health-related benefits are a clear differentiator. We are committed to delivering quality results through disciplined execution, fixing what needs to be fixed, scaling what works well and maintaining a mindset of constructive dissatisfaction in an increasingly complex environment. As you know, our ambition is to act as a true value compounder, building long-term sustainable value while remaining resilient amid ongoing volatility. As we look ahead to '26 and while the external environment remains uncertain, our approach remains unchanged. We stay disciplined, we stay focused on execution and aligned with the midterm ambition we have set out. And with that, let me hand back to Mathilde to start the Q&A session. Mathilde, over to you. Mathilde Rodie: Thank you very much. So we are ready now to open the Q&A. And the first question is from Guillaume Delmas, UBS. Guillaume Gerard Delmas: I've got two questions. The first one is on your operating margin in EDP. Because if I remember well, since the reset of 2022, when you first introduced Renew Danone, EDP margins have not materially improved, and they remain quite below the 10% mark. So my question here is compared to your initial expectations back in 2022, is EDP profitability running a little bit behind schedule? And why are you not seeing the strong volume/mix development and the productivity savings boosting the division's margins a bit more? And I guess looking ahead, what do you think is the medium-term margin profile for this business? Is it around 10%? Could it go even higher? So any color on that would be very helpful. And then my second question is probably won't surprise you on the IMF recall. I mean, I appreciate this morning, it's too early to quantify the impact, but maybe, can you talk about what empirically you've seen so far. So any shortages or issues with on-shelf availability? Any consumer hesitancy towards your brands. And zooming in on Mainland China, where I don't think you had any product recalls, did you actually benefit from competitors' recalls in the first weeks of 2026? Antoine de Saint-Affrique: Thank you. So listen, we'll do as usual and do it with Juergen, and let me start with your last question. The first thing is those kind of events is not overall good news for the category in general. When it comes to China, none of the products we sell in official direct channels in China have been impacted. And we obviously work in full transparency with the Chinese authorities. When it comes to Europe, we expect to see, and we see supply disruption. We see obviously lots and lots of activity on our consumer care lines. We see also a sentiment that is balanced, actually. Obviously, lots of emotions are with the first recall. As I said, by the way, before the recall, we looked at all our consumer complaints, and we didn't notice anything. So the entire focus of the organization is fundamentally about two things, making sure that the products are back on shelf, and making sure that we do reassure the consumers and the health care professionals were extremely active both on the Internet and in our Care Line. As to the impact in terms of -- the lasting impact in terms of consumer sentiment, in Europe, it's too early to say, but we didn't notice things that are just -- I mean, extraordinary. You may have seen there was a publication yesterday of ESTAR, which I would refer you to on actually the -- I mean, then assessing the impact of exposure as low to moderate for infants. So this will also help reassure the consumers. Juergen Esser: Yes. Juergen speaking. When it comes to the financial impacts, 2 or 3 important elements. First, given the fact that most batches which are currently being recalled were sold already in the course of year 2025. We have to date not experienced a significant return of stock. And therefore, while the recalls are underway, the current financial impact on year 2025 do not seem material to us. Having said that, and to your point, the recall of several industry players at the same time has created, especially in European retailers, some disruption on the shelf because some retailers were first taking off all the product before sorting and replenishing the shelf. And we expect that supply disruption to have a one-off impact on our Q1 performance. We estimate this one-off impact to be between 0.5% to 1% of net sales in the first quarter. Moving forward, as Antoine said, our ambition is to win back trust and credibility because it is extremely important in that category. And it's obviously very early days. We need to monitor the situation very closely, but the few data points that we have on market shares are rather reassuring. On EDP margins, you are absolutely right that the key focus on us. And you may remember that when we were together launching the Chapter 2 of Renew Danone. We were very clear on what we are expecting from EDP in terms of contribution on growth, and I think we are delivering on a very nice way on it with plus 3.5% in the year 2025, as much as on margins, because we declared very clearly that EDP margin target is to go into double-digit territory. You do not see that yet reflected in the EBIT numbers of the category because we are heavily investing for that growth. Gross margins are going up, and you see gross margins of the company increasing supported big time by EDP gross margin increases. But at the same time, we are fueling the growth. We are fueling the growth in Europe. As Antoine mentioned, with all the elements we are doing on Activia, on High Protein, on Skyr and Kefir as much as refueling the growth in North America, very importantly, on the full EDP portfolio. Antoine de Saint-Affrique: I think that and we said that all along, we will keep reinvesting to drive our category growth. And in the cases where we have lost competitiveness, to reinstate our strength and competitiveness of our brands. I mean, what you see on Activia, I mentioned Activia is progressively getting back to growth. With good innovation, with, I mean, bringing back the gut challenge, so we see the things moving in the right direction. We will keep investing behind that to make sure that we reclaim and we regain our leadership in that field because we are convinced it's the field of the future. Mathilde Rodie: So the next question is from Celine Pannuti, JPMorgan. Celine Pannuti: So my first question, I would like to come back to what you said on the Infant Milk Formula to clarify the commentary. You mentioned the 50 to 100 basis point impact on Q1. Is this at the group level for Europe? And then in terms of your market share performance, can we -- I mean, what have you seen? I know it's early days, but in Europe or in China, how things are trending for you? And then maybe, I think, Antoine, you mentioned it's not great news for the category. From a midterm perspective, how do you think this may play out from higher regulation or maybe more consolidation? Would be interested to hear your perspective there. Then my second question is on North America, where volume turned negative in the fourth quarter. You mentioned that capacity is underway and as well creamer are getting more positively, more competitive. How do we think about volume reacceleration throughout 2026, please? Antoine de Saint-Affrique: Celine, we'll do duet again. Let me start with IMF, where we'll do a duet, and then we'll come back to the U.S. I mean, shares we didn't see. It's too early to say. We didn't see any significant share movement, one way or the other. I mean, what I was saying, it's not good for the categories. You don't win on events. You win on science. You win on your competitiveness. You win on being the best at execution. So short-term shares gain or loss on an event is not -- I mean, it's not good news. It's not something that is structural. We don't see anything major, but it's very, very early. IMF is very, very regulated category. I mean, I think, in our factories, we have over 300 checkpoints when it comes to quality. There are rules in every countries that are extremely, extremely strict. So do we expect a further strengthening of the regulation? Not in any major and significant way. I mean, there has been a change in the rules and regulation when it comes to, I mean, salaries, and that has been an ongoing move for the last couple of weeks. But by and large, we don't expect the rules of the categories to change. Where we are very confident, to be honest, is we are confident in the quality of our product. We are very, very close to both the consumers and the health care professionals and we have innovation that is really differentiating. So too early to say. We don't see any significant impact. We will have to work because indeed, noise around the category is never a good news, but I don't see it as something structural. Juergen Esser: Yes. Juergen speaking, when it comes to the financial impact, I confirm the 50 to 100 bps on Q1 at group level. But as you say, in the end, it's coming through the region of Europe and Middle East because this is where the recalls are happening. We expect the situation to normalize in the months of -- during -- in the course of the month of March. Antoine de Saint-Affrique: So on the U.S., I was very clear. I'm not happy with the performance. There are things we are super happy with. Protein keeps driving very well. Everything around medical nutrition is just flying. Kate Farm is going from strength to strength. Our Nutricia business is going from strength to strength. So it's very -- I mean, that I found very exciting. We have a couple of good things that are coming on stream. We see some early green shoots in creamers. We've launched Two Good in Natural, but to be honest, I think we'll only see progress as of, I mean, later in the year, so quarter 2 onwards. We are relaunching Danimals, but there is still more work to do. I'm not happy for one with Silk. I think, I mean, we've made because we didn't have enough capacity choices in the rest of yogurt capacity is coming on stream, so we should get better, but we could have done better. There has been a really deep change in leadership in the U.S., obviously, with Henri, who comes with deep knowledge and huge track record, but beyond Henri, we went very deep in leadership change in the U.S. The lady that has been running the turnaround of Alpro in Europe is now in charge of the category and of the creamers in the U.S. I expect the end of not inventory and rapid movements in the U.S. Juergen Esser: Yes. And maybe just one element to add, which is that we have one more quarter to go where we are running against a high base of comps for Coffee Creamers from Q2 onwards. This will ease and will have also the recovery of that region. Mathilde Rodie: Next questions from Jon Cox, Kepler. Jon Cox: Yes. Sorry, just to come back to this 50 to 100 basis points. You're saying on a group basis, so this is not just specialist nutrition on a group-wide basis, 50 to 100 basis points in Q1, which at 100 basis points level would be 25 basis points on the year. That seems relatively material. I know maybe by the time you get down to EPS level or not, but it seems quite material. And that's just on the recalls themselves rather than any, say, brand damage done in Europe as a result of the recalls. Just to add to that, elsewhere, you're talking about the Middle East recalls. Are there any signs that any of the governments elsewhere in the world are going to introduce the European standards and what would the impact be in terms of potential recalls in Asia and elsewhere? Second question, just on the gross margin gain, I can see it's 90 basis points. It sort of leads into the question earlier about EDP margin, just not moving. And I think most of us thought that would be the driver for overall group margin improvement. Is that gross margin gain really coming through EDP, and you're just actually reinvesting all of those savings into driving top line growth. And I'm just wondering about the sort of the return profile of that, if you're just investing so much into the EDP business to drive growth. But on the other hand, the profitability isn't moving. And the risk is once you stop investing, actually, that volume will go back to where it has been historically in dairy in Europe and elsewhere. Juergen Esser: First, on the first point. Look, we have this morning been issuing our guidance for the full year with a lot of confidence. And we have been issuing the guidance for the full year with a lot of confidence because we have now been consistently over the past 4 years, delivering on our commitment. We left year 2025 with very strong dynamics. And yes, the IMF situation will create a one-off, as I described it for Q1. Having said that, the last year stepped up the resilience of our portfolio, leveraging a larger range of growth engines and not only IMF, and are, therefore, expressing the confidence. We today -- the guidance today with confidence. That confidence is supported by many things, including the belief that the IMF situation will progressively normalize, but it will also be supported by what I said before, sequential acceleration, for example, of the U.S., and here specifically from the Q2 onwards, when we run on an easier set of comps for Coffee Creamers. On gross margin and EDP, I confirm what I said before, we see very promising dynamics in EDP. Let's not forget that we only started to transform the portfolio, some 2 or 3 years ago. So we were very clear that this is not a quick turnaround, but it takes some time to make it happen, and we are very happy with what we have seen in the year 2025. We are transforming in a very significant way the portfolio in Europe. All the innovations, we have been putting in the shelves, are working, and we have learned something very important from the past, putting innovation and only supporting it for 1, 2 or 3 quarters, you're going to lose the innovation. You're going to lose the renovation. This is why we are so much committed to support the innovations at the core to make sure we get sustainable success, and this will also be reflected in the profit margin at some point. Mathilde Rodie: So next question is from Warren Ackerman, Barclays. Warren Ackerman: First question is on Medical Nutrition. Could you quantify the Medical Nutrition growth globally in Q4? Maybe if you're able to break out China, Europe and North America? I'm interested in your outlook, specifically on Kate Farms, how big is Kate Farms? What was the growth in the year or the quarter? And just trying to understand how big could Kate Farms get as you kind of expand? I know you've got some ambitious plans for the brand. And then secondly, can you talk about some of the other growth engines like EDP Japan, you're saying it's a standout performance. Can you maybe put some numbers on that? And I guess the other sort of topic as well, just to try and understand a little bit is the out-of-home growth, particularly EDP Europe? If you're able to put some numbers on that as well, it would be great. Antoine de Saint-Affrique: So we'll do a bit of a duet on that. Maybe starting with EDP and EDP in Japan. What is really interesting in Japan, is we have been constantly over the course of the, I think, the last couple of years, going between high single and low double digits in Japan. On the base of Japan is an EDP -- Japan is an EDP business essentially, on the base of a strong differentiation, on the base of science, on the base of strong claims. And this is really an inspiration for -- I mean, this is really an inspiration for Activia. I mean, delivering claims that are proving the uniqueness of Activia versus other yogurts are differentiating ourselves and justifying a premium. So that is the model. By the way, we have the same, it's a smaller business, and it was under our Saputo, but we have the same with Activia in Australia. It's a good model on what we want to do around EDP. On out-of-home and EDP. Out-of-home and EDP takes 2 different forms. It is what you can do in all the hotels, restaurants, I mean, around, I mean, fresh dairy, obviously. But I think the biggest and most important access of developments there is into our drinkables. And it's true for dairy. And you see that with what we do around Oikos, which you find also in gems, which you start finding in many different places, all you see that with what we just launched, I think, it's in Germany with Alpro meal replacer. And if you haven't tried it, we'll send some to you, which is made basically to capture those people that are working at lunchtime at the exit of the office in proximity stores. The -- I mean, our out-of-home channels are growing much faster than mass retail. Juergen? Juergen Esser: Yes. On Medical Nutrition, the dynamics are actually pretty good and especially as we leave year 2025, growing double digit in North America, growing double digit in China and North Asia, Oceania are growing double digit in many emerging markets. Actually, we're quite balanced between what we see in Milk Nutrition for infants and Milk Nutrition for adults. But on both, we see very, very strong traction. It's getting now to a scale, which starts to impact also company results. You talk about Kate Farms. Antoine mentioned it in the prepared remarks, it's now a $500 million business. Antoine de Saint-Affrique: It's farm nutrition. Juergen Esser: Exactly, which I think is something, which you will see reflected in the like-for-like performance of North America from Q3 onwards when we have both Kate Farms, Nutricia, the whole Medical Nutrition platform impacting the results. Kate Farms is actually growing strong double digits as we speak. And so we see coming to life the expected synergies of our existing and legacy platform we had in the U.S. and the, let's say, network access, we are getting to hospitals and the health infrastructure in that part of the region. Antoine de Saint-Affrique: Maybe to complete on the combination Kate Farm and Nutricia. So I said it in the prepared remarks. The combination of the two is $0.5 billion. We've -- as you know, we folded in some ways, Nutricia into our Kate Farms business. The complementarity of the product line, the complementarity of our customer access, the complementarity of the scale is just fantastic. So the business has real momentum. And I think it will have -- I mean, be a game changer in the U.S. Juergen Esser: And on Japan, as you mentioned, Japan, EUR 400 million business as we leave year 2025, growing at strong double digit, and we have more capacity coming online very soon in order to support this fantastic dynamic on a portfolio, which is extremely focused on high protein and gut health. So that's very exciting. It's one of the largest dairy markets of the world, and this is why we are very focused on success there. Mathilde Rodie: We have the next question from David Roux, Morgan Stanley. David Roux: Can you hear me? Antoine de Saint-Affrique: Yes. David Roux: My first question is just on the North America yogurt capacity, which you mentioned. Could you just give us an update as to where you are now with this rollout. How much headroom to overall capacity in the U.S. will this help with once completed. And how we should think about the CapEx evolution for the group from this going forward? Then my second question is on working capital. You've called out working capital at record low levels relative to sales in the release. I think you mentioned some destocking of Mizone, but perhaps can you give us a bit of color around what has been driving this and how we should think about that working cap to sales ratio going forward. And then my last question briefly on FX. I understand you don't usually give color on this, but given that FX was a meaningful factor this past year, can you give us some expectation for the FX impact on revenue and EPS at current levels for the forthcoming year? Antoine de Saint-Affrique: So I think -- I mean, the bulk of the question will go to Juergen. On Noram, literally, the capacity is coming on stream step by step by step. So we are adding line after line to basically respond to a demand that keeps being absolutely buoyant and to be able to reenlarge our offering. Obviously, what we invest into CapEx is not only behind EDP or behind yogurt, but we invest into CapEx in medical nutrition, as you've heard last year with what we are doing in France in Stanford, behind infant nutrition. So we invest where we see value-adding growth for the company. Juergen Esser: Yes. And maybe when you look at overall CapEx, and this is what we shared at the CME for Chapter 2 when renew Danone, CapEx for the company is going to slightly increase. We were the last year traveling just shy of 4%. We said it may go up to 4.5% in order to support capacity investments into high protein, which is true for areas like North America, which is true for areas like Europe and which is true for areas like Japan, which I just mentioned, but also for Medical Nutrition, where we are obviously progressively investing for the future growth. For working capital, very happy with how we finished the year 2025 at minus 10%. I think we are now getting into best-in-class when it comes to working capital management. Actually, the benefit of working capital in year 2025, not so much coming from stocks. It's more about a much more efficient way we manage the balance between receivables and payables, and we are benefiting here from something Antoine said in the prepared remarks, which is the digitalization of our process flows in our global business services. This is really giving us a fantastic platform to -- for the ambition to say sustainably at a good level of working capital as we have it today. For the currency, look, I would wish I could predict how currencies will move in year 2026. You saw the impact we had on sales at minus 4%. In the full year, it was minus 6% in Q4. Really here, I don't want to -- please understand that I don't want to give a number because any number I will give will be a wrong number. Mathilde Rodie: And next question from David Hayes, Jefferies. David Hayes: So I don't want to be the annoying person and labor the guidance context, but I'm going to be that annoying person. So just to come back to that quickly, just trying to gauge in your kind of that confidence word you used. I mean, you saw one of your peers yesterday impacted by this recall talking about with their best guess on the brand equity impact through the years that they might be at the lower end of the range. Was that something that you considered including, or to your confidence point, you don't feel there's need to caveat that based on the current trends and brand impacts that you're seeing at least early on in the -- in this process. And then the second question, just on the Rest of World. Was there some benefit from Ramadan? Again, we heard a competitor yesterday talk about that was sort of a help in the period of Indonesia. Obviously, a big market in that region. So was there Ramadan timing that we should take account of? And that gives back a little bit in the first quarter this year. Antoine de Saint-Affrique: Thanks, David. We'll do again a bit of a gut. I mean, we don't see at this stage any major brand or brand equity impact on IMF. There is obviously a disturbance on the shelves. There is obviously, for a period of time, I mean, a sales force that is focused on talking to the customers replenishing the shelf. So as they do that, they don't do -- I mean, they don't do other things. But from a pure brand and category standpoint, we haven't seen anything major at this stage, too early to say. We obviously look at it very, very carefully, but I wouldn't be definitive one way or the other. On Ramadan, I mean, to be honest, we are -- we don't comment on the move from Ramadan from one week to the other. Juergen, I don't know if you want to... Juergen Esser: On the Ramadan, nothing to add, I would say. On the guidance, 3% to 5%, we are, in a way, growingly consistent is what we are now saying since 4 years. We feel good about the 3% to 5% guidance we have launched that was in year 2022, and you saw us delivering in that corridor is a very consistent manner. And so there's nothing to add to what I said before on the guidance. So we feel good about it. Mathilde Rodie: And the next and last question is from Tom Sykes, Deutsche Bank. Tom Sykes: Just firstly, on the gross margin. It looks like that was sequentially down a little in H2, which is the first time in a little while. Could you maybe say what the reasons for that are? Is that FX? Or could you say something about COGS productivity and just whether you'll be able to price under your COGS inflation like you have been doing, please? And then just on the growth of high protein, either North America or globally. Could you give a view as to the run rate of growth now versus perhaps where you were in the first half of the year, please? Antoine de Saint-Affrique: So let me start, maybe with the growth of high protein. We still see the growth in the protein world being very, very down -- being very dynamic. If you look at the overall category growth of the yogurt category, it's very dynamic. I mean, I think at global level, it's high single digits, and it's being driven by protein. Protein by the way, takes different forms. I mean, it's high protein, like the likes of Oikos or YoPRO. It is also things like Stevia. And I mean, Stevia at Danone is doing extremely well, I mean, you see it reflected also, and I mentioned it in the remarks in the numbers of the Danone brands. So there is, I mean, there is a deep, deep trend around protein in different forms. And we believe that our trend is here to stay. It is becoming, as I said in my prepared remarks, also it is becoming more sophisticated. So it's not protein for the sake of protein, the protein that are doing something or protein that are complemented with something. The protein that are doing something are you seeing that we've launched under Oikos protein and digestive benefits, what we've launched in Europe under HiPro, which is muscle recovery or what we launched behind Stevia, which is a different positioning, but one that is also very relevant when it comes to protein that feed you in your daily activity as you need for something that is high in protein and low in the rest. So it's a trend we believe to be long-lasting trend. We see progressively the market shifting to different kinds of protein, and we're obviously not only suffering the way, but leading the way in more ways than one. Juergen Esser: Tom, on the gross margin, you're absolutely right. H2 expanded a little bit less than H1. It's not about productivity, which really was very strong across the year. It's more about the phasing of material inflation, especially coming through from dairy ingredients, things like whey or things like lactose, which were quite high where prices were quite high in year 2026, where we were better protected through hedging in the first semester than in the second semester. That's why we had a bit more impact in the second semester coming from it. Good news is that those prices have started to come down. So nothing particular to say for year 2026. Mathilde Rodie: So with that, we are ending the Q&A. Thank you, Tom, for the last question. Antoine de Saint-Affrique: Thank you, guys, and we'll see you, or most of you, soon in the coming weeks. Good day, everyone, and good weekend.
Richard Stewart: Good morning, ladies and gentlemen. Welcome. I think it's a real pleasure to have you with us today as we present our operating and financial results for 2025. So thank you very much for joining us today. I think just in terms of the agenda that we've got, I will start off with a few high-level of salient points. Then we'll move into the Performance Excellence, which will be presented by a number of the team. We'll then move into growth and just touch briefly on the resources, the mineral resources and reserves that we've recently published. Charl will take us through the financial performance and Ken to touch on how we're interpreting these very volatile markets we're seeing and a little bit of the outlook in that regard before I wrap up with the way forward. I think there are several forward-looking statements in the document. So would urge you please to just take note of the safe harbor statement. Thank you. I think when we reflect on December 1, 2025, I think certainly during the latter half of the year, it was at a time of significant change at Sibanye, we, of course, have the leadership transition. And with that, we also undertook a refresh of our strategy. This was something that we presented to the market at the end of January. But for anybody who was not able to make that, if I could try and summarize our strategic refresh in one word, it would be simplification. Specifically, what we're really focusing on in the short term is around maximizing and driving our operating margins. We're doing that through a keen focus on operational excellence and simplifying the operating model that we have and then further simplification through our portfolio such that we're focusing on the highest return assets, of course, cash generative assets and ensuring an appropriate management focus in that regard. This is all coupled with a very disciplined capital allocation framework which we shared as being roughly 1/3 towards shareholder returns, 1/3 towards reducing our gross debt and 1/3 towards growth. And again, Charl will unpack that in a little bit more detail. And in terms of growth, we certainly see the best value at the moment for us in terms of returns as being internal in terms of the resource value that we have. We have a significant resource base, particularly in South Africa, our PGM operations and organic growth will be our immediate focus. But we did also share a value creation framework that we have put together that will help us assess any external growth opportunities moving forward. In addition to the strategic refresh, I think there were some quite key decisions that we needed to make towards the end of last year, especially amongst several of our operations. One of the big ones was the start-up of the Keliber lithium project in Finland. That is a greenfield project that we have built and given the volatility in the lithium market, we had to make a decision how best to proceed with that project. And I think very pleasingly, towards the end of last year, together with our partners, Finnish Minerals Group came to a way forward, which really considers a staged ramp-up of the Keliber project. And we'll share a bit more of those details with you in the presentation, but it really is an approach that mitigates some of the risk of the market while allowing us a lot of strategic optionality around the project. And we will unpack that for you in the coming slides. The second big decision we had to make was around Kloof. We did share with the market that early on in the year, due to increased risk of seismicity have what we deem to be an unacceptable safety risk, we ceased mining of quite a few of the deeper level areas at Kloof. And this had a material impact not only on the output from the Kloof operations but also the future of that operation. Towards the end of last year, we did make a decision that Kloof would continue to operate on a year-by-year basis, assessing the profitability each year as we proceed. So very dependent on sustained higher gold prices. And then there were several priority projects that we have been evaluating during the year, and we're making -- we'll be making financial investment decisions on -- during the course of this year. There was also some overhangs from previous or legacy issues. We had to address the Appian court case. We came to a settlement there in November, ultimately a settlement payment of $215 million. And then we also had the South African gold wage negotiations that had been continuing from about the middle of the year I think credit to the team, we successfully settled that also towards the end of the year. And again, credit to all stakeholders, I think a very good outcome considering the environment we're currently operating in. But I share this because I guess it was a rather busy, a transformational and actually quite a noisy second half of the year with lots of decisions being made in terms of how we will continue going forward. And that has also reflected in our finances, which are complex. And again, I do say, a lot of noise. But hopefully, certainly the way I feel, and hopefully, you can see that what this has done is simplified our operations going forward. It's already simplified where our focus needs to be and I think it's set up a solid operational base, which we have launched into 2026. And then I look forward to that simplification also starting to feature in the financial numbers but as you ultimately simplify the total portfolio. I think looking at our operational output, safety and I'll unpack safety in a bit more detail in the coming slide, but very pleased with the continuous improvements that we've seen in many of our indicators both lagging and leading indicators. We have seen some of our best numbers ever, which is pleasing in terms of the progress that we've made over the years, but our focus on eliminating fatals remains our absolute priority as a company. I think I have to give full credit to many of our operational teams. As I said, this was a busy period it was a very volatile period in the markets. And yet our operational teams delivered solidly across most of our business. All of our operations came in largely within guidance, recognizing we did have to revise guidance at the gold operations because of the Kloof decision I mentioned earlier. But coming within guidance or better than guidance across the board was very pleasing and full credit to our teams in that regard. We also made some great strides on our sustainability strategy across many aspects, including water, including the social investments in South Africa. But one that really is a bit of a standout is our positioning with regards to our renewable energy where I think we really are now positioned as a leader in renewable energy in South African mining. And certainly, that is not only going to have a material impact on our carbon footprint going forward and our ability to provide responsible metals but also significant commercial benefit. Just during the year-to-date on a small portion of the projects we've commissioned, we've already achieved close to ZAR 100 million worth of savings and avoided over 300,000 tonnes of carbon dioxide. And we see that going up to close to ZAR 1 billion worth of savings over the coming years. Like I mentioned, I think with much of the decisions and complexity we had in the business over the second half of the year, that does reflect in our numbers. But looking through those numbers, I guess, sort of really through to the core financials I think what we really see is stability, a real turnaround. And I think a solid base of which to build into 2026. We achieved the highest EBITDA that we have in 3 years at just under ZAR 38 billion or just over $2 billion and to see a headline earnings per share up by just under 300%. I think is very pleasing, particularly given that most of that just came during the second half of the year. Our balance sheet remains strong. Our total net debt to adjusted EBITDA has declined to below 0.6x, so very comfortably within covenant limits. But as we shared during our strategy renewed focus on gross debt to ensure stability through a cycle is where our focus will be going forward. But overall, with a good operational output, with the strong financial stability and underpinned. I think as a company and the Board, the Board is very comfortable to declare a dividend of ZAR 131 cents per share. That equates to roughly a 2% dividend yield. And again, I think, reflecting largely just the earnings over the second half of the year. And that dividend declaration is at the top end of our dividend policy. So very glad to be back into dividend-paying territory. I think as we look at performance excellence, we did share at the end of January during our strategic update that our strategy is based on 4 pillars. Simplification, I've mentioned already, simplification of our -- of how we operate, driving accountability, simplification of our portfolio, getting our focus on capital allocation in the right place. And the second pillar was performance excellence. Performance excellence is really -- covers a holistic improvement. And within there, we have safe production. We have the operational excellence, which I think will be well understood by many. Resource optimization, how best we can extract our resources, maximizing long-term economic value and of course, embedding sustainability in the way we operate. And for us, sustainability is really about people, the planet and prosperity for both. I will specifically touch today on safe production and then hand over to the 2 COOs, Richard and Charles to look at operational excellence and Melanie in sustainability. So I think touching on on-site production. As I mentioned earlier, it's been extremely pleasing to see the trend that we have seen since 2021, in particular, in our raised 2021 because that's the time when we started our fatal elimination strategy. Since then, we've seen over 40% reduction in serious injuries. And the reason we look at serious injuries that is very often associated with high energy incidents. So high energy incidents that could result in either fatal incidents or certainly life-changing incidents. I think we've also seen a very similar pleasing decline in terms of the high potential incidents that we measure. Some of those are associated with injury somewhat. But it certainly gives us a good data point to understand whether or not we are decreasing risk within our operations. And whether we look at our own history, whether we benchmark ourselves against peers who have similar underground neuro tabular labor-intensive operations generally, across the board, I think we've seen a significant reduction in risk in our operations and that is a trend we'd like to see continue. And we continue to benchmark ourselves against ICMM and peers, many of whom, of course, operate in very different environments. I think what's always tough talking about the safety trends is as pleasing as it is to look in the rearview mirror and I understand that we're doing the right things to reduce risk. As a management team, we also recognize that, that is unfortunately very cold comfort to family and friends of colleagues who we have lost on our operations. And tragedy, during 2025, we did experience 6 fatal incidents across our operations. And in this regard, I would really like to extend our heartfelt condolences on behalf of the management team and the Board to the family and the friends of [ Alberto ] Xavier, [ Onkazi ] Jozana, [ Fonso ] Matsolo, [ Brian ] Hanson, [ Asituey ] Ramaila and Klaas [Onkosana. ] Eliminating fatal incidents is absolutely our #1 priority as a Board, as a management team and as a company. Our focus moving forward into 2026 remains on how we can more effectively embed our fatal elimination strategy. The strategy fundamentally hangs on 3 pillars of critical controls, what we call critical management routines or effectively management practices, and then life-saving behaviors. So those are the 3 key pillars that will mitigate risk within our operations. The focus for 2026 is how we can enhance compliance in this regard but most importantly, enhancing it through a transformation of culture, which will also drive behavior. I think what we have seen historically within the mining industry is that compliance has driven through force, through instruction and we recognize the opportunity to change that culture and to drive compliance through a culture of accountability and a culture of care. And through that, we truly believe we will eliminate fatal incidents from our operations. Thank you very much. And with that, I will hand over to Richard Cox to take us through the South African operations. Over to you, Richard. Thank you. Richard Cox: Thanks, Rich. Hello, everyone. As Chief Operating Officer of our South African operations, my focus is on delivering performance excellence through safe production, operational efficiency and holistic improvement, our strategy insures, we consistently improve delivery across our portfolio. So let's take a look into our 2025 results for the South African business. Turning to our SA PGM operations. we've maintained consistent delivery, meeting or exceeding guidance each year since 2017. More specifically, for 2025, total 4E PGM production reached 1.8 million ounces including attributable production from Mimosa at 117,000 ounces and third-party purchase of concentrate at 73,000 ounces and all aggregated aligning with our 1.75 billion to 1.85 million ounce guidance and stable year-on-year. Since the Lonmin acquisition in 2019, production has remained steady between 1.73 million and 1.83 million ounces annually, reflecting our operational resilience and ongoing progress towards the second quartile of the industry cost curve. Breaking it down, underground production increased 2% to over 1.6 million ounces supported by improvements at Rustenburg's mechanized Bathopele shaft and more stable output compared to 2024s disruptions at Siphumelele and Kroondal operations. In Marikana, output was affected by safety-related stoppages at the high-performing safety shaft, but this was partially offset by K4's ramp-up where production rose 41% to almost 100,000 ounces, contributing to Marikana's improved cost position. Surface production was lower by 29% at 108,000 ounces influenced by higher first quarter rainfall and the commencement to transition feed resources, such as Rustenburg's Waterval West TSF and Marikana's ETD1 to ETD2 tailings facilities. We are evaluating long-term service opportunities at Rustenburg to support the sustainability of the surface business. Purchase of concentrate volumes were reduced by 24%, in line with contractual terms. We remain focused on cost discipline Operating costs increased by just 7.3% in absolute terms. All-in sustaining costs rose 10% to just over ZAR 24,000 per 40 ounce and that was within our ZAR 23,500 to ZAR 24,500 an ounce targets hosted by byproduct credits of ZAR 11.1 billion. Now these credits were enhanced by stronger ruthenium and iridium contributions, helping offset the 261% increase in royalties to ZAR 765 million from higher prices and a 12% rise in sustaining capital to ZAR 2.9 billion for key mining equipment and precious metal refinery infrastructure. Project capital was lower by 16% at ZAR 675 million, which was below guidance due to completed Rustenburg initiatives and deferred Marikana expenditures. Total CapEx came in at ZAR 5.9 billion, under our ZAR 6.5 billion estimate. So this foundation we are creating enables us to capitalize on stronger PGM prices. The 2025 average 4E basket price increased 28% to over ZAR 31,000 per ounce, driving adjusted EBITDA up 125% to ZAR 16.7 billion. Early 2026 prices have risen 43% to over 44,000 per ounce as shown in the chart, following an even higher and brief January adjustment. With supported fundamentals, we anticipate potential for additional earnings and cash flow improvements in 2026. We continue investing through the cycle in low risk, low capital intensive projects with quick paybacks, all supporting stable, high-performing operations with optionality to extend our portfolio. Overall, our SA PGM operations are very well positioned to benefit long term and also from the current market upside. This slide illustrates our advancement on the PGM cost curve and based upon end December 2025 data and highlights our positioning relative to peers. Starting on the right, Marikana's total cost, including CapEx has been influenced by K4's project buildup phase. But as K4 approaches steady state, we're seeing a shift towards lower costs. This combined Rustenburg and Kroondal position has moved slightly higher due to the Kroondal transition to toll treatment which does introduce processing costs, however, enhances profitability through improved revenue and margins. While we are actually below the 50th percentile now, and our low capital intensity brownfields projects are poised to further strengthen competitiveness against peers spots 4E and 6E, which includes base metal basket prices are positioned well above our costs, underscoring our leverage in the prevailing market. And so our progression from the fourth to the second quarter reflects the value of our strategic investments in building long-term sustainable advantage in this business. Now to our gold operations. These mature assets are highly geared to gold prices and continue to generate strong cash flows in the current supportive price environment. Total production, including DRDGOLD was lower by 10% at 19.7 tonnes. Underground production reduced by 8%, primarily due to operational challenges at our Kloof operations, including seismicity and infrastructure constraints, while surface production was down 16% influenced by lower yields as we transitioned from higher grade to lower-grade tailings and low-grade third-party sources. A 39% increase in the gold price received helped mitigate this impact. The all-in sustaining cost increased 15% to ZAR 1.4 million per kilogram, with 14% lower gold sold. At our Kloof operations, persistent challenges, including a shaft incident at our [ Manana 7 ] shaft in May of '25 infrastructure age showing in ventilation pass and ore pass systems, logistics constraints and seismic risk in high-grade isolated blocks of ground or IBGs, resulted in production lower by 31% year-on-year at 3,374 kilograms. This prompted the rebasing of the plan and a life of mine adjustments to 1 year. Safety remains our #1 priority. We did relocate a number of Kloof teams from higher-risk IBGs to Driefontein operations. And subsequently, post a comprehensive review process, removed those areas of Kloof operations from a long-term plan to align with our risk tolerance. As said, the sustained rise in the rand gold price over the period boosted adjusted EBITDA of 115% to ZAR 12.5 billion, representing 33% of group EBITDA and surpassing 2020's record. Excluding DRDGOLD, EBITDA increased 111% to ZAR 6.1 billion on average price of ZAR 1.8 million per kilogram. For the whole gold business, we are pleased to have concluded a 3-year wage agreement with labor, and that provides a degree of cost certainty moving forward. There is a lot of work underway in reporting our strategic transitioning of the SA gold business, and this effort is to ensure long-term sustainability. Our investment in the DRDGOLD is a prime example, providing long-life, high-margin surface gold exposure that is cash generative. We are also focusing on our higher-margin shallow gold mining business with Burnstone's feasibility study underway and final investment decision being targeted for the first half of 2026. As you see in image, the Burnstone project exemplifies this strategic shift. We are also focusing on high-margin shallow gold mining, where we have added over 1 million ounces in reserves at Cooke surface, Burnstone, attributable DRD and Beatrix operations. Turning to the charts. The gearing and all-in sustaining cost margin chart illustrates how price rising prices are opening up expanding margins. The average gold price received planning steadily against controlled all-in sustaining costs. The adjusted free cash flow bar chart highlights the magnitude and rapid cash flow turnaround moving from negative in 2024 to positive and significant in 2025. Looking forward, our core operations will continue to drive performance excellence and we're excited about the prospects in our current portfolio. For 2026, the outlook is positive. Spot prices are up 9% year-to-date to over ZAR 2.5 million per kilogram and 20% above second half 2025 levels. all boding well for another successful year with potential earnings and cash flow growth. I'll now hand over to Charles. Charles Carter: Thank you, Richard. The U.S. PGM operations have had a solid year with production of 284,000 3E ounces and an all-in sustaining cost of $1,203 an ounce beating our guidance, combined with a strongly improving safety performance into year-end. The significant downsizing in late 2024, while turning around the cash bleed at the time in the context of depressed prices also sow the seeds of improved mining productivities and cost efficiencies that we have built on through the year under review. Certainly, with improved PGM prices later in the year, we returned to profitability. And when you overlay Section 45x benefits, you have a competent outcome. During this period of getting our operating performance right, albeit at lower volumes, the team led by Kevin Robertson has also done a significant amount of work on setting up the Montana operations for long-term success. You have seen in the earlier global cost curve that we are now sitting in the middle of the pack and have been for 2 consecutive quarters. But our drive towards $1,000 an ounce is aimed at being a lowest quartile PGM producer on a sustainable basis through price cycles. In the Montana operations, we have a legacy of semi-mechanized mining with narrow headings and small stopes using a range of small equipment such as 2-yard LHDs and CMAC bolting, which ultimately constrains you with lower tonnes per cycle and a higher cost per ounce, notwithstanding the fact that our miners are incredibly good at what they do and bring significant skills and experience to the process. Through last year, we trialed mechanized bolting with success, and we are not right now rolling out a significant transformation program, which will see amongst many changes the stepwise introduction of mechanized equipment, a progressive increase in heading size in advance with associated workforce and supervisory upskilling and a shift from legacy captive stoping to task mining. The benefits of these changes really start bearing fruit in 2027 because we have a phased introduction of new equipment and changes to where practices running in parallel with our established approach. Where this takes us in the next 18 months is a fully mechanized and scaled operation with higher productivities and lower costs, improved safety and wellness benefits and a business that we believe will be resilient through price cycles. We are starting these change interventions at Stillwater East and then moving to East Boulder. And once we know that we can deliver around $1,000 an ounce, we will consider bringing back toward a west, although this will require infrastructure upgrades and a range of capital spend, which means that we have that decision point further down the road and it will neatly based on an extensive feasibility study. If I turn to the U.S.-based recycling business, 2025 has also been a busy year for us. We bedded down and integrated the Reldan acquisition and late year added the Metallix acquisition. Together with our Columbus AutoCAD recycling business, we believe that we have a compelling PGM and precious metals recycling platform that has low capital intensity and which can provide stable margins through price cycles. The team led by Grant Stuart is moving very quickly to integrate the management teams and optimize which feeds go to which site while leveraging a single sourcing and sales platform that now has very wide reach both in the Americas, but also into Asia and elsewhere. As investors and analysts will appreciate there is significant change underway in global metals recycling where we are seeing consolidation, vertical integration and indeed, some companies in various parts of the value chain going to the wall. Within the significant shifts underway, I think we are well positioned. We know what our value proposition is, the niches that we play in and which differentiates us against some of our very large competitors. And we now have the ability to organically grow an integrated recycling platform without needing to necessarily chase new acquisitions. Our Century zinc retreatment business in Australia has also had a very good year from a stellar safety performance through to increased production of 101 kilotonnes of payable metal and a 17% decrease in all-in sustaining costs to $1,920 a tonne, which exceeded guidance. This team is very ably led by Barry Harris, and I want to thank Robert Van Niekerk who was the executive lead through the last couple of years for a seamless handover. As you will be aware, the team has been working on 2 feasibility studies, [ FOS 1 ] and Mount Lyell. The Mount Lyell feasibility study is currently under assurance review and evaluation. We expect to have a close-out review in early May. The [ FOS 1 ] study is expected to be completed end of March with Assurance targeted to be completed at the end of May. Final decisions will be made within our disciplined capital allocation framework that Richard has spoken to. Given the remaining short life at Century, a pathway to new opportunities in Australia is important. And I'm looking forward to spending time with the team on the ground next week and working through the opportunity set. With that, let me hand over to Robert. Robert van Niekerk: Thank you, Charles, and hello, everybody. Sibanye Stillwater has a substantial life of mine and solid project base, focusing only on the precious metals. We've got 356 million ounces in the resource category, of which about 16% 58.2 million ounces has been converted into the mineral reserve category. SA PGM operations contributed about 50% of the resource base, 177 million ounces. And again, about 16% of that has been converted into reserves, 29.4 million ounces. If you look on the right-hand side of the slide, you can see that these reserves serve very, very significant operations. Some of the Rustenburg operations have in excess of 32 years life. The Marikana K4 project, for example, has a 45-year life of mine and the Marikana East 4 project has a 34-year life of mine. As Richard said earlier on our gold operations are mature. They are bid to the gold price, but I would likely -- they are very insignificant. We have a 43 million-ounce resource and a 9.4 million ounce reserve. The Beatrix operation in the free state is a solid operation. The Driefontein operation is a very solid operation. And our DRD operation is our world-class tailings retreatment operation. And we also have the Bernstein project, which is there still to become a very efficient, shallow, low-cost, 25-year life of mine operation. The second biggest category of our resource base is our U.S. operations. Here, we have 80.9 million ounces in resource, of which only 19.4 million ounces have been converted into reserves. Again, these assets are highly leveraged, they are high grade, they our quality assets. And again, if you look at the right-hand side of the slide, the Stillwater mine has a 26-year life of mine and the East Boulder mine has in excess of 30 years, actually 35 years life of mine. We'd also like to add that this year, we have included a maiden reserve for the Marikana East project in the SA PGM region. We have also included a maiden reserve for the Cooke TSF and I made a reserve for the Mount Lyell copper project in Tasmania, Australia. In closing, I'd like to leave everybody on the call with a message that next year, '26 and 2027, Sibanye Stillwater will be focusing on converting a large percentage of the abundant resources into reserves. With that, I'm going to hand over to Melanie. Thank you very much. Melanie Naidoo-Vermaak: Thank you, Robert. Good morning, good afternoon and good evening to all attendees. Our renewable energy program remains central to our journey towards carbon neutrality. Having set ourselves a target to reduce our emissions by 40% come 2030. And now with the conclusion of the new agreements with Etana and NOA, our renewable pipeline has expanded to 765 megawatts, delivering nearly the same capacity as a single Kusile unit and thus strengthening our energy security and accelerating progress towards carbon neutrality. Naturally, this positions us as the largest contracted private renewable energy offtake in South African mining. And with this portfolio and come 2028, it will supply more than half of our South African energy needs -- it will generate over ZAR 1 billion in annual savings and avoid 2.6 million tonnes of CO2 each year, a 41% reduction from our 2024 levels. At the same time, our operations, high water demand and presence in water stream catchments make strong water stewardship critical. Through disciplined management practices, and our investment in advanced water treatment plants, we've significantly reduced portable water reliance and increased resilience and also contributed to margins. 4 of our operations are now fully independent of municipal portable water with our gold assets at 94% independence. Importantly, though, the water liberated through these efforts is equivalent to the needs of a midsized city and an essential social contribution in a water scarce country that's currently grappling with water challenges. Our commitment to communities remains equally strong. And through the Marikana renewal process, we prioritized addressing the needs of affected families and rebuilding trust. And a key focus was closing the housing gap for families, not supported by the AMCU Trust. I'm pleased to share that we delivered the final 2 of 17 houses, honoring our commitments to the widows. As a business, we remain committed to shared value with all stakeholders as we earn trust where we operate. Thank you, and handing over to you, Charles. Charles Carter: Thanks, Melanie. At Keliber, we are looking forward to hosting a Market Day in a couple of months and then a deep dive on the operation. When you get there, you will see a really impressive build and the team on the ground led by Hannu Hautala has done an incredible job in completing the build program on schedule. and where changes to spend were related to revised permit requirements late in the process. This is Sibanye's first greenfields project build and it has been incredibly well executed. The financial investment decision for the refinery was made in November 2022. In October 2023, the scope change for the effluent treatment plant was approved along with authorization to begin construction of the concentrator. Mechanical completion has been achieved for all components of both the concentrator and refinery with the exception of the rotary kiln at the refinery. As you may be aware, mining activities were delayed due to postponing contract signing until the completion of the deep dive analysis in the second half of last year. Commissioning of the concentrator crusher, conveyance system, sorting plant and laboratory is scheduled to be completed ahead of plan. The phased approach is a direct outcome of the deep dive work conducted by the corporate technical team. The guidance is that we will produce at least 15,000 kilotonnes to 20,000 kilotonnes of spodumene this year either for direct sale or as a feed into the refinery, if approved late year and subject to market conditions. Let me unpack the stage approach in a little more detail. Stage 1, EUR 783 million is the initial capital and excludes any other preproduction SIB costs. 237 kilotonnes of stockpile is required by year-end and counter the limitation put in the Syvajarvi mining permit being kept at 540 kilotonnes. Stage 2, spodumene grade of greater than 5.1% is targeted to ensure a sellable product, which will not incur penalties or rejection from commercial counterparties. Stage 3 refinery startup decision is conventional in the market assessment at the time. If it's a pause, we will continue with spodumene in sales. Stage 4 focus on technical grade will allow the team to sort up processing issues before quality issues. The team will continue to incorporate lessons learned from other facilities. Stage 5 decision to proceed with ramp-up to produce battery grade lithium. It must be noted that the qualification process for battery grade may take 6 to 9 months, which means battery grade could be commercially available, likely at the earliest in 2028. On the operational overview, it's important to note that the feasibility profiles had a number of satellite ore bodies in as well. As far back as 2023, we have kicked off mining optimization studies, which resulted in extended life only out of the Syvajarvi and Rapasaari pits. We intend to kick off further work on the other pits as well as this year work on the [indiscernible], which is a new pit, which will lie close to Rapasaari. When you're on site, you'll see that we have a strong land position with further exploration options ahead of us at the right time. And given all the exploration juniors that have paid claims outside of our lease boundary, I have no doubt that the lithium story has legs in Northern Western Finland for a very long time to come. The spiking SIB in 2008 in the graph on the lower left is mainly driven by the waste stripping for the Rapasaari pit. The cost overview will be updated as we get new insights from our cost optimization and debottling studies. And certainly, the team is focused on improving this picture. Here, the further optimization work is focused primarily on the following work streams. Mining study work to optimize pick design pushbacks and stockpiling. We're targeting here a potential EUR 10 million to EUR 15 million savings and the mine to deliver a stockpile of 50 kilotonnes oil by 30th June, about 1 month of inventory. As I noted, 237-kilotonnes to be on stockpile to ensure stable production in 2027. The concentrator study is targeted in spodumene grade about 5.1% to optimize spodumene concentrate sales and boost refinery capacity. Metallurgical work on grade versus recovery is in progress. First grade recovery curves issued for mining production planning were also taking place. Cost reduction and efficiency optimization targeting the potential unit cost decrease of $1,000 per tonne of lithium hydroxide has a number of components. We're reviewing the procurement for more cost savings, developing a full digital twin of the value chain to further optimize, we're studying the personnel and staffing optimization opportunities, and we're reassessing the maintenance strategy and costs post ramped up. So there's a lot of further optimization work on the go, and I'm confident that we'll start to see gains from there in the next few months. Refinery debottlenecking study is targeting higher throughput potential and overall yield improvement also on the go. This is about increasing refining capacity by adding a magnetic separator and resolving process bottlenecks. We're looking to boost the yield 2% to 3% recovery in lithium from the effluent treatment stream, reducing ETP costs by reviewing current initiatives and working with other third parties to support refinery commissioning and ramp-up phases. With that, thank you, and let me hand over to Charl. Charl Keyter: Thank you, Charles. Good morning to all participants. It gives me great pleasure to share the financial results for the year ended 2025. If we start with the key highlights. Headline earnings per share for 2025 increased 281% to ZAR 244 cents per share. During the same period, adjusted EBITDA increased almost threefold from ZAR 13 billion to just under ZAR 38 billion, 189% increase. As a reminder, we have set a target of reducing gross debt by 50% from the current ZAR 2.2 billion level over the next 2 to 3 years. But through the cycle, net gearing target of below 1x net debt to EBITDA remains consistent with our financial policy and has served us well during periods of constrained commodity prices. If we look at our net debt to adjusted EBITDA at the end of 2025, it is down 1.77x at the end of 2024 to 0.59x at the end of 2025. As a reminder, the dividend declared for 2025, as you would have heard, is ZAR 131 cents per share or 2% yield. Turning to the income statement. The revenue increased by 16% and costs were down 8% However, as highlighted on the previous slide, this translated to an increase of almost 200% in adjusted EBITDA. Noteworthy items for 2025 include the following: the loss on financial instruments of ZAR 3.8 billion was mainly due to the impact of the protective gold hedges that amounted to ZAR 1.7 billion as well as a revaluation of the Burnstone debt. With the sharp increase in the long-term price of gold, the Burnstone debt is now expected to be fully repaid, and that meant that we had to increase this liability by ZAR 1.7 billion. Another big item that impacted this period. Impairments for the year at the U.S. PGM operations Keliber and Kloof amounted to ZAR 15.8 billion. The impairment at Kloof was due to the reduction in the life of mine due to the removal of isolated blocks of ground for safety reasons. The impairment at the U.S. PGM operations and Keliber were the result of changes in economic parameters such as long-term prices. This was partially offset by the reversal of impairments at Beatrix, Driefontein and Burnstone due to the increase in the long-term price of gold. The transaction cost includes the $215 million or ZAR 3.6 billion settlement of the Appian claim. If we look at the net other costs, that benefited from credits in 2024 that were once off and did not repeat in 2025. It is important to note that taxes and royalties of ZAR 4.3 billion increased in proportion to our profitability. As already mentioned, a full year dividend of ZAR 3.7 billion or at the top end of the range, 35% of normalized earnings will be paid compared to the last dividend that we paid in 2023. This represents an increase of 146% on an absolute basis. In 2025, we had significant nonroutine cash impacts that affected our financial results. These included the Appian payment and the gold hedges that was put in place in December 2024 to ensure the ongoing sustainability of our gold operations. The question that a lot of people will ask is what would your financial results have looked like in the absence of these nonroutine items? The short answer is that the money available for the 3 areas of distribution would have increased by ZAR 5.2 billion to approximately ZAR 14.6 billion, and each bucket would have been allocated ZAR 4.9 billion. However, in 2025 on a look-back basis, we did allocate more to growth as one. The revised allocation model was not in place. And two, we were finalizing the Keliber project. Importantly for 2026, our growth capital plan, excluding DRD is ZAR 3.7 billion compared to the ZAR 9.4 billion that we spent in 2025. The growth capital excludes Burnstone and other projects in study phase. And as we generate all cash and earn the right to allocate more to each bucket, these will be considered. Our debt maturities remain manageable due to a well constructed maturity profile. Gross debt was ZAR 39 billion and less the cash on hand of ZAR 17 billion equated to net debt of ZAR 22 billion. Liquidity headroom is strong at ZAR 40 billion or roughly 5.5 months of OpEx plus CapEx. The next priority on our debt profile will be the upcoming renewal and downsizing of our 2026 $675 million bond, and the target date for completion is before the end of half 1, 2026, and this will be subject to supportive markets. Thank you, ladies and gentlemen. I will now pass the baton to Kleantha that will discuss market performance. Thank you, Kleantha. Kleantha Pillay: Thanks, Charles, and good morning, everyone. Markets were characterized by tariff uncertainty and geopolitical tensions throughout 2025 and into 2026. And this has driven the precious metals rally. Gold spot prices brought the $4,500 mark during December, up 73% since the beginning of the year and driven again by geopolitics, wars and a weak U.S. dollar. Gold ETFs were up 25% year-on-year to 4,000 tonnes and Central Bank buying continued. The platinum price rally has been driven largely by tariff uncertainty and was exacerbated by primary supply disruptions during the first half of the year. 3E recycling volumes were up 9% year-on-year. However, this is still below the pre-COVID levels despite better prices attracting hoarded stock. The tariff uncertainty has resulted in significant platinum flows into both the U.S. and China. Over 600,000 ounces of platinum was imported into the U.S. in July compared with normal levels of around 200,000 ounces. Between July and October, 1 million ounces of above normal levels moved into the U.S. And overall, platinum imports were up over 50% year-on-year. NYMEX stocks quickly reached a peak of about 650,000 ounces in April and then dropped back to 280,000 ounces in July. This as reciprocal tariffs were delayed and then PGMs were on the list of goods not subject to tariffs. Stocks then jumped back to around 700,000 ounces in October. As the outcome of the Section 232 investigation was delayed due to the government shutdown. Since then, the outcome has been announced as negotiations not tariffs. So uncertainty still lingers. Imports of platinum into China also increased steadily during the first half of the year and then fell back in the second half as prices became too high. Investors and jewelry manufacturers switched into platinum as gold just became too expensive. Overall, platinum imports into China were up 7% year-on-year to 4.5 million ounces, supported by the launch of the platinum futures trading on the Guangzhou Futures Exchange in November. Large daily trading volumes north of 6 million ounces per day in December resulted in the GFEX having to implement restrictions on trading. Platinum demand and along with the palladium during 2025 was largely driven by investments and speculation rather than by fundamental industrial requirements. Over the near term, we continue to forecast deficits for both platinum and palladium while the rhodium market balance will remain first to balance. The recent rally in prices has set us a new higher base and the heightened focus on securing critical minerals will continue to drive regional supply chains and with it price differentiation. And now moving on to lithium. The appreciation in lithium prices due in quarter 4 was driven by China's anti-evolution drive and the camp down on primary supply in that country. As well as from better-than-anticipated demand from battery energy storage systems. China changed the feed-in tariff model for renewable energy mid-2025, unlocking demand for energy storage systems. Prices moved from a low $7,000 per tonne levels up to just over $16,000 per ton currently. Inventory levels remain low as [ Cattle's ] lepidolite mine has yet to start producing again, and winter supply from brine production is reduced. Looking out to 2029, battery energy storage system demand is expected to grow at a 23% CAGR while demand from battery electric vehicles will grow at a 9% CAGR. The market is expected to remain in surplus over the medium term and will start tightening from 2028 to 2029. New supply will need to be incentivized by higher prices. Looking forward to the rest of this year, we remain bullish on gold. We believe that PGM prices have reset at a higher base, but will continue to be volatile. And similarly, we believe that lithium prices will continue to be influenced by Chinese decision-making. We will, therefore, continue to focus on what is in our control, performance and delivery at our operations. I'll now hand back to Richard to conclude. Richard Stewart: Thanks very much, Kleantha. And then I guess, just heading into the last section to wrap up with. So I think just starting off with our guidance for 2026 and the outlook. Starting off with our South African PGM operations, I think a very slight decline in terms of our production guidance in line with the overall life of mine profile that many of you will be familiar with, but no significant changes across the South African PGM operations. guidance of the South African gold operations is slightly lower than what we achieved this year or during 2025 and that is driven largely by the reduction of output at the Kloof operations, as Richard touched on earlier. I think in terms of the U.S. PGMs, we do see a slight increase in terms of output at the underground operations that is coupled with the ongoing work towards reducing the overall unit costs down towards $1,000 per ounce and associated with that, we do see an increase in some of the capital as we start making those investments. On the recycling, we have quoted our production guidance as a gold equivalent to ounces. So you'll see 400,000 to 420,000 ounces there. Please note that is gold equivalent, we produce a range of metals. But I think when looking at it on this basis, it does just demonstrate the significance of this business, almost 0.5 million equivalent gold ounces that we have built over the time of a, as we mentioned, low capital intensity, very low capital base. On Keliber, the guidance we are providing is we are anticipating producing spodumene concentrate as we ramp up the concentrate at this stage, whether or not that goes into refinery, of course, will be dependent on the decision that is made on the commissioning of the refinery. And in terms of total costs, we are guiding towards a total expenditure of about EUR 180 million to EUR 190 million. Just to unpack that briefly, approximately half of that, about EUR 90 million is the remaining project capital that was due to get spent predominantly in the first quarter and a little bit in quarter 2. So that is in line with the original project capital of EUR 780 million that we've shared with the market. And the balance is really the cost of the -- as we ramp up the overall operation. At Century zinc, this is likely to be the last full year of production on a Century zinc and again, largely in line with what was achieved during 2025. So just moving on to the strategy. I think as we outlined in my earlier slides, I think we've set a very solid base moving forward into 2026. The 4 key pillars that we have with regards to our strategy, being simplification, simplification of our operating model and our portfolio. Performance excellence, which I think you heard us touching on today and unpacking around safe production, operational excellence, optimizing our resources to maximize value and embedding sustainability in the way that we operate. Growth, which is initially focused on the value creation. We believe we can drive from our existing resources and therefore, unlocking organic value. And finally, a disciplined capital allocation model by bringing these 4 pillars together with the base that we've set in 2025, we are certainly confident that we can unlock significant value as we move forward into 2026, irrespective of the environment that we find ourselves operating in. I think just wrapping up with the overall strategy that we shared with the market at the end of January towards creating a future-focused metals business. In the short term, our strategy is very much focused on strengthening our business fundamentals. And this will be achieved through increasing our operating margins through our operational excellence simplifying our operating model and ultimately, simplifying our portfolio towards highest return assets and cash-generative assets. I think we're successful in this regard. We would be generating free cash through a disciplined capital allocation framework that looks at returning capital to shareholders, reducing our total gross debt and investing in the growth and sustainability of the business, particularly unlocking our inherent resource value. We certainly see that as ultimately continuing to build our business, building our production profile and continuing to build on our resource stewardship model across primary mining, secondary mining and recycling. So ladies and gentlemen, I think in conclusion, once again, thank you for joining us today. To try and sum up in 3 quick points. I think where we are sitting today as a business. I think we've had a solid operational output in 2025. And I think we're well positioned moving into 2026 to unlock the significant value that we have within our portfolio. I think we have seen a noisy set of financials. But looking through that, there is some real financial stability in the company. We've reduced our gearing significantly and certainly, at the current commodity prices that we are experiencing and the operational output that we are achieving, we look forward to some significant cash flow as we move forward. And then I think we finally have a resilience and a disciplined strategy. This is a strategy that is independent of the external environment and positions us for long-term themes which we see underpinning growth within the commodities market. So just in terms of way forward, as we did share with you at the end of January, we launched our strategy on the 29th of January. Today, we have shared our results. But as we move forward at the end of April, we will be looking to have a 2-day Capital Markets Day focused specifically on our international operations. That will be a webcast as well as an in-person visit in Finland to our Keliber operations, but we'll also cover both U.S. and recycling and Australian operations. And then towards the end of June, another 2-day Capital Markets Day in South Africa, specifically focused on our goals in PGM operations. So we look forward to engaging with you and getting those invitations out and thank you once again for joining us today. And of course, we're happy to take any questions you may have. Thank you very much, and over to you, James. James Wellsted: Thanks, Richard. Thanks, gentlemen. I've got a couple of questions here. I think we'll start with the Kloof questions. I'd say Keliber questions, sorry, missing my Ks up here. At Keliber, you note that initial value realization depends on producing and selling spodumene concentrate. It's a specified grade during the concentrator start-up. How do you assess the risk of achieving specification grade the early stages of ramp up? Can you give us some comfort around achieving these initial targets that's from Arnold Van Graan. Richard Stewart: I'll ask Ralph to come in and join me on some of the details. But just on a high level, let me make just unpack the sort of what we've spoken about the stage ramp-up and life mitigate risk. I think a lot of the work -- initially, the feasibility study for Keliber was, of course, based on mining all the way through to a final battery product. A lot of the work that we did in the second half of last year was around looking at these independent steps. So both the costs associated with them, the commercial liability associated with them and almost if you were to optimize, for example, just up to a spodumene concentrate what would that mean? What's come out of that work is essentially we are confident that we can look at this in different stages, that we can have an initial stage that in its own right is commercially viable. And of course, that gives us the option to remain at that point. But we are also aware of a lot of the work that's currently going on in the EU as well as Western economies generally things like Project Bolt, but also EU looking at sustainability and supply of critical minerals. And we think that this will have an impact on what the ultimate sort of pricing layout looks like in time to come. And that, of course, is a key aspect of how we look at the refinery and when and how we turn that on. So I'll let Ralph answer some of your more detailed questions. But I think just on a high level to note that, that was a lot of the work we have done and out of that, very confident that we can look at the project in different stages, each being commercially viable in their own rights. But Ralph, please feel free to add anything there. Ralph Lombard: [indiscernible] So just to give you confidence, we always visit the spodumene grade even during the feasibility. And we're quite confident we can push a grade in the high limits of more than 5% based on those test work. Also, the concentrator is very traditional technologies. So obviously, we test the recovery versus spodumene grade. So we're quite confident, and we're also confident in Syvajarvi, which is our first pit. It's quite high grade with the lithium oxide percentage of close to 1.1% and even more at certain stages which will also assist us in getting that higher grade. So from a Keliber perspective, we don't see any new risks because we are pushing a higher spodumene grade initially. Thanks. I hope that answers your question. James Wellsted: Thanks, Ralph. Second question is on impairment due to the longer-term lithium price forecast, stage start-up to preserve flexibility. Question is what long-term lithium price assumption underpins the revised recoverable amounts at Keliber and at what price level does the project fail to meet our hurdle rate? Richard Stewart: Let me maybe pick up on the hurdle rate question. And Charl, if I could ask you then to pick up just on the prices that we used for our impairments. So I think in terms of hurdle rates, let's put it this way. I think what you see in terms of the total project as we've shared with you, we currently have an all-in sustaining cost of about $12,000 odd per tonne. That is if we go all the way through to a battery grade. So we've always said we would obviously like to see prices I guess, well in excess of that in order to meet our internal hurdle rates. So looking at a region of 14,000 to 15,000 is where we'd want to see it sustainably at least going forward on that basis. I think importantly, of course, what we are assessing as part of this is also the opportunity on the earlier stage concentrate. And of course, that then is driven by volume in concentrate prices. I think critically, the long-term opportunity of this project is about supplying battery grade into the European ecosystems. We never built this ready just to us what you mean concentrate into more broader Chinese supply chains. So I think that's the opportunity that we've really got to this particular project. But Charl, would you like to pick up on the long-term price for the payment models? Charl Keyter: Thank you, Richard. So the average price that we've used over the life of the mine but obviously, I appreciate that the price falls up over the duration of the life of mine. The average price was just under USD 17,500 per tonne and that equates roughly to a long-term price of about USD 20,000 per tonne. James Wellsted: In a further question on what the remaining book value for Keliber is? Charl Keyter: Yes. So the remaining book value is ZAR 9 billion or just under EUR 460 million. James Wellsted: And Richard, for you, what are the next steps in the battery metal strategy? Richard Stewart: Thanks very much. I think as we shared at our Strategy Day, I think our long-term strategy as a company still remains to be able to supply metals that ultimately will support decarbonization and an energy transition. So that remains the long-term strategy. I think it's broader than perhaps just battery metals. But in the short term, our strategy is very much around optimizing the current portfolio. So as it stands today, we have our core operations of our South African gold, our South African PGMs, our U.S. PGMs, recycling and Keliber and that is where our focus will be and certainly our investment into our organic projects there. I think we will continue to assess the various projects, and that is where I did share with the market the growth framework that we've developed, which talks about the different metals we will look at in the jurisdictions we will consider. That will ultimately drive how we think about it. But as I say, our sort of immediate focus, our short-term strategy is very much on delivering from our core operations. James Wellsted: Thank you, Richard. Thank you for this wonderful presentation, well done IR team. Thank you. Can one expect this level of financial performance going forward, should the commodity prices hold? Richard, you can take that or Charl. Richard Stewart: Yes, happy to just take that more generally. I mean, I think as we mentioned on a high level, of course, I think the benefit of the prices that we saw coming through, gold, of course, we saw coming through throughout most of the year but the really big -- all of these prices ramped up towards the end of the year. PGMs really only started recovering in H2 with a significant ramp up in December. So of course, I think the type of financials that you've seen were based more on a back-ended portion of the year that delivered most of the value. But I think what we would look forward to prices remaining exactly the same. I think as I mentioned, we've had a noisy set of numbers and quite a few one-offs that we've had to deal with. So if anything under this environment, everything else the same, I would expect to see slightly improved financials with that noise out the window. But as Kleantha mentioned, the approach that we're adopting for the year ahead, I think we've got great tailwinds with the commodity prices. I think we see new bases being set, I think this market is being grown by a world that's scrambling to secure critical metal. So that's likely to remain. But it will be volatile. And certainly, that's the way we're positioning it and looking at our business for the year ahead. James Wellsted: Given the record gold prices, to what extent are the reserve reductions at Kloof, structural geotechnical constraints versus price-sensitive. Would a sustained higher gold price justify re-extending the mine life? Richard Stewart: James, let me take the first crack at that, and Rich, if you'd like to add anything. I mean I think critically, so of course, as has been noted, I think we do have slightly conservative prices that we use for reserves and the reason for that is we look to do our long-term mine planning and capital allocation based on what we still see as through cycle prices, ultimately, making capital decisions for really long durations. I do ever think Kloof is important to say that I don't think gold price was not a factor at all in terms of the decisions that we made. The decision to reduce Kloof was a safety decision, first and foremost. We did have some shafts that were coming to the end of their life. Anyway, that was part of the plan during the course of last year Kloof 7 shaft in particular, was planned to close. But then we lost volume due to safety and that decision, I think when we make a decision to stop mining areas because the safety, price is not a factor that gets considered in those decisions at all. So what we are looking at is Kloof for safety on operation that today is producing a lot less than it was obviously designed to. That means it's got a very high fixed cost base. And fundamentally, that means your unit cost goes up. According to the reserve price we use, i.e., through the cycle, we do not have long life reserves at Kloof, but we fully recognize that at these prices, Kloof remains profitable, and we can continue to mine it as long as the prices remain where they are. So we have put a year-to-year plan in place and we will continue to assess Kloof at those prices. And I think that brings significant benefits, as Rich mentioned, not only commercial and cash flow for the company but of course, also is a large employer. So we will keep Kloof going for as long as it is profitable and makes sense, but we won't be declaring or changing significantly the life of mine and reassessing capital at these numbers. James Wellsted: I guess a related question, but can you give us a sense of your gold operations, excluding DRDGOLD environmental liabilities? And how much of this is funded through environmental trust that, so I guess that's rehab. I'm trying to get a sense of the longer-term cash flow impact, should there be further closures or rationalization? Richard Stewart: Charl can I perhaps ask you to pick that up or Rich? Richard Cox: Happy to pick that up. Thanks for the question. So we do have a liability over the gold operations of ZAR 5.4 billion and of the ZAR 5.4 billion, ZAR 4.7 billion is funded and the balance then is with guarantees. Richard Stewart: Charl, anything you'd like to add to that or... Charl Keyter: No, Rich full cover. Thank you. James Wellsted: Thank you. Well, I've got a question for you, Charl, actually. So I'm going back onto you. How should we model the benefits of Section 45 ex credits in '26 and '27 in particular, and how this relates to cash flows. And then related to that is when are we expecting to receive the credits from 2023 and 2024's cash. And is the higher CapEx -- okay, that's a separate question. It's just a Section 45 ex. Charl Keyter: Yes. So in terms of 45 ex, the '23 and '24 payment should -- sorry, the '23 and '24 credits, we are expecting that in 2026. And then thereafter, we expect it to flow in the year following the claim. So the '25 claim to flow at the back end of '26 and some early '26 towards the back end of '27, give or take a few months. James Wellsted: Just on when do we expect in '23 and '24? Charl Keyter: Yes. So '23 and '24 claims we expect in 2026 due to the large amounts, and this being fairly new. And those amounts are subject to examination as it's referred to in the U.S. or as we refer to an audit. But again, we are working closely with our tax advisers, and we are continuously following up. James Wellsted: A question on the higher CapEx at SA PGMs in 2026. Due to some deferral spend in 2025, is it because of that? Or what other factors? Richard Stewart: Thanks, James. So I'll ask Rich to pick that up. I don't think it's so much a deferral in 2025, but we do have an increase in SIB around some specific projects. But Rich, perhaps I can hand over to you, please to pick that up. Richard Cox: Thanks, Rich. So there is a little bit of extra venture within our precious metal refinery as well as some trackless mining machinery. But largely year-on-year, it's the same except for those extra pickups in trackless mobile machinery and in the precious metal refinery. James Wellsted: So the related question to that. I'm not sure if it is relevant. But is capital spent on ore reserve development what type of development is funded from this CapEx and what type of development have funded from working operating costs? And in terms of the Kopaneng deeps project, Will it be a similar layout in arrangement to Siphumelele mechanized section and which words shaft would be used to transport mainland materials? Richard Stewart: Perhaps we'll ask Rich just to pick up on Kopaneng and Charl on the capital. Charl Keyter: Okay. So in terms of ore reserve development, it is effectively underground development work that's undertaken to open up access and prepare the cave mineral reserves for mining in the future production periods. But I have to specify here that the amount that gets capitalized is specifically in the off-rig development to open up those ore blocks. The reef plane or on-reef development is expensed in the period that it's incurred. I hope that answers it. James Wellsted: Position on the Kopaneng deeps layouts, et cetera. Richard Cox: I'll take that, James. So Kopaneng is a concept study at the moment. It's a very attractive downdip extension. So the strike is over 5 kilometers. And that has been the challenge of how to gain access, so a very good question. So initially, we will gain access on one of the flanks through a down-dip extension of the Bambanani asset. And then Khomanani offers a very attractive into the ore body. However, Khomanani 2 shaft doesn't have a rock pass. So we have to look at other down dip extensions and then possibly even a down dip development of a decline from Khomanani as well. So man and material probably through Khomanani and Bambanani in initial phases. But I think in the long term, there are other more attractive options for bigger volumes. We will be doing a pre-feasibility study in 2026 to sharpen up those carryforward options. James Wellsted: Question for Kleantha. How will the GFEX impact prices this year? Should there be physical delivery for May and June? Kleantha Pillay: Thanks for that question. Look, I think essentially, we're going to see heightened metal flows into China at least up until settlement date. So we've got a good price underpin their for platinum. And I think we're also going to see East rates moving up a little bit as we get closer to that date. Once that settlement date is reached essentially, you're going to have a very nice cleverly made platinum stockpile in China. And I think post that, you will get some price correction. But yes, that is the nature of investment demand, unfortunately. So I think we will see some underpin, and then we'll see a bit of correction post that settlement date. James Wellsted: Turning to the U.S. now. In the U.S. PGM operations, repositioning now for optimize, for currently -- sorry -- basically, the question is are we repositioning for current 2E PGM prices? Or is there further downside risk if prices soften? Richard Stewart: Thanks, James. So I'll pick that up initially. I think as we have shared and as trials unpacked, our objective in the U.S. is ultimately to get our cost base down closer to $1,000 per ounce. And again, the reason for that target is that because that's where we see sort of through cycle I guess, being a low point, and therefore, that operation being able to wash its own face sustainably for significant option to the optionality to the upside in terms of palladium prices. So we -- I think in terms of have we positioned it for the current palladium prices, I think right now, our objective, we restructured that operation 2 or 3 years ago to position it for the downturn that we saw. And our focus right now is on achieving those cost levels. Once we've achieved those then we will be able to assess the operations going forward and understand what a new base could look like. As Charles mentioned, we do have the opportunity to relook at Stillwater West in time. But today, that's not currently part of the focus. The focus will be on East Boulder and Stillwater West, so largely in line with the current production levels. James Wellsted: Thanks, Richard. Questions on streams and hedging. Could you give us an update on the streaming deals? I guess that the details of streaming deals and then unpack your hedging book for us, ounces per year and at what price. Richard Stewart: Thanks, James. So let me maybe take the streaming question. And Charl, if you could then follow on with some of the hedge questions. So I think in terms of the stream, we fundamentally have 2 streams within the company at the moment. One is at the Stillwater operations. That stream largely considers a palladium stream of about 4.5% and most of the gold that comes out of that operation. So that -- and that is a sort of evergreen stream. I think it does step down at some point to 2.5%, but that's still quite a bit out. So that's the one stream that we've got in place. The second stream that we have in place is on the South African PGM operations. That stream again considers all of the gold that is produced from those operations, which is about 1% of the total metal. And then if I recall, it's about 2.5% on platinum, which also steps down and that is there for the life of the current mine that does not include any extensions beyond that. So the platinum is limited to the current life of mine. Charl Keyter: Thanks, Rich. If we look at the gold hedges, so in December 2023, we entered into some hedging arrangements for our South African gold operations. These hedges were put in place to protect the downside, specifically around our legacy assets. They have -- all of the hedges have now been concluded at the end of December 2025. So there are no further gold hedges in place at the current moment. James Wellsted: Thanks, Charl. Charl, probably one for you again. What are the plans with the convertible bond due 2028, given that it is now in the money from Lorenzo Parisi... Charl Keyter: Yes. So we'll keep an eye on the convertible bond. It's got a 2028 maturity, but it's got a call option. So we can call it towards the end of the year. And we'll just monitor it carefully to see what we do in terms of the convertible bond. Based on current prices, it is in the conversion territory. But for now, the focus is on refinancing the 2026 $675 million bond, and we'll just carefully monitor the convertible bond going forward. James Wellsted: The value of that convertible bond on the balance sheet... Charl Keyter: That's $500 million. James Wellsted: In terms of simplification, Richard, might we think about the Finnish and possibly the Australian assets being potentially available for sale? Richard Stewart: Thanks very much. I think we've been sort of quite clear at the moment that the Keliber lithium project certainly forms part of our strategic priority assets. I think we see that as a very valuable asset. So I think the short answer to that is no. I think when we look at the Australian assets today, the new Century Zinc operations have been very successful. We remain very committed to those operations until the closure of those and then the completion of that particular project. In Australia, we have a couple of projects that are being assessed. We have the Mt Lyell project. I think as we mentioned, certainly, copper is a metal that we would be interested in if we could see value accretion in those opportunities. So Mt Lyell will currently be assessed, as Charl said, and understand whether or not that meets our hurdle rates and our overall capital investment criteria. And then we do have opportunities as well with the Phos 1 project to extend the New Century or to utilize the New Century infrastructure post mining of zinc. I think it would be a wonderful opportunity to see that infrastructure continue being used. Phosphate likely does not fit in with our sort of strategic focus going forward. So our priority would be to look at how we could maximize value, try and ensure the sustainability of that project going forward, but how we could get value from that unlikely to be a core investment thesis on the phosphate side from our side. James Wellsted: Thanks, Richard. Just some questions on renewable energy. Can you remind us what is feeding into the operations currently, volume, solar versus wind? Listen, I don't think we can give that breakdown right now, but we'll be able to get it. we got it. Okay. And what's in the pipeline? And when will it start feeding in? And then secondly, Sibanye Stillwater is advancing well on the clean energy front. What is the overall renewables ambition and what are the targeted deadlines? Richard Stewart: Thank you very much. Perhaps, Rob, if I could maybe ask you to pick up on some of those. Robert van Niekerk: Yes, Richard. I can talk to the renewable energy. At the moment, we've got Castle wind farm as well as the solar project, the Springbok Solar project, providing electricity into our operations. The Castle wind farm was commissioned in March. The Springbok Solar project was commissioned in September. And to date, they've generated 293 gigawatt hours. In 2026, we're going to have another 2 plants coming into play. They are both wind farms. It is Umsinde wind farm and the Witberg farm. And then by the end of '26, we'll be receiving more than 400 megawatts on an annual basis. This will exceed 700 megawatts in '27 and '28. So [ Les ], I hope that answers your question on the renewable energy. James Wellsted: Thanks, Rob. That's pretty comprehensive. Did you give the overall target. Sorry, I wasn't clear on that. Robert van Niekerk: Overall target is slightly about 700 megawatts, James. By the end of '28. James Wellsted: That's as big as the Castle unit. I think Melanie mentioned that. Pretty interesting. Let's get on to some of the SA PGM questions. What are the key drivers of the lower SA PGM volumes and the much higher costs? Richard Stewart: Thank you very much. Let me take that one. So I think the slight reduction in volume, our underground operations are, in fact, largely stable year-on-year. So we aren't seeing significant change there. Much of that downgrade of about 100,000 ounces comes from a combination of surface as well as some lower third-party assumptions on lower third-party [ pop Kloof ] processing material. So that's a predominant driver down. I think in terms of the costs, the operating cost base, I think, is actually pretty stable. We're seeing that coming in, in line with or, in fact, below inflation. The big increase is largely around, I think, as we mentioned a bit earlier, the sustaining capital, in particular, which is being driven by the new projects in our refinery, specifically our OPMs or other precious metals plants in our precious metals refinery as well as some upgrades to mechanized equipment. That's a really big driver on the cost side. James Wellsted: A question from Nkateko about production guidance being lower and then also a reduction. Is it the reduction related to third-party volume of own metal. I think Richard just answered that there's quite a big decline in the surface. And then we have got lower third-party metal. So I think that's pretty much been covered. A question on the Appian settlement, how it's been accounted for in the cash flow statement, Charl? Charl Keyter: Yes. Thank you. So the Appian settlement is in the cash flow from operating activities. So the number has been effectively paid or deducted in that number. So if you want to normalize cash flow from operating activities, excluding Appian, you have to add that back for the year 2025. James Wellsted: The cash flow table that we've got in the book, that would be under corporate audit. Charl Keyter: Correct. James Wellsted: Okay. Thank you. Question on uranium assets. When will there be a value unlock, Richard? Richard Stewart: Yes. Thanks very much. I mean I think we've got the 2 uranium sort of assets at the moment. The one is the old Beatrix 4 shaft or Beisa as it's known. That is an asset where we are still in the process of a transaction with a junior company, Neo Metals, who is looking to develop that asset, and we retain an equity exposure to it. That transaction is still in process. Unfortunately, still tied up with regulatory conditions and licensing that we're looking at there. But once that is closed, I think then we'll start seeing the opportunity to develop and get exposure to that project. The second big one is the Cooke Tailings project. That is the Cooke Tailings dam that is both a co-product gold and uranium opportunity. We have recently or in the process now of completing the feasibility study on that. It's going through assurance that will also be reviewed in the second quarter of this year towards a financial decision or looking at various ways that could potentially be taken forward. So that would be the second one. And again, during the next quarter, we would come up with a decision on how to move forward on that. So those are our 2 current exposures to uranium. James Wellsted: Thank you. I guess sticking on the growth theme, what accretive investment opportunities do we see in South Africa amid the strong gold and platinum group metal price environment and with Burnstone update. And then some questions on collaboration or other with DRDGOLD. Richard Stewart: Yes. Thanks very much. I think as mentioned, right now, our focus in terms of opportunities on our current resources. That's where we see best returns. I think any M&A in the gold space at this point in time is probably, I would suggest high risk depending on how you're looking at doing that, but given where the commodity cycle is, so that's not one we're looking at immediately. And again, on the PGM side, I think we've said we're very happy with our portfolio as we look forward to the commodity markets of PGMs and how we see that playing out. And we think we've got some of the best brownfield opportunities to develop. So that's where we see our best value coming through. In terms of further collaboration with DRDGOLD, been quite open in that regard. I think it's been an excellent collaboration. I think we've seen real value created for both companies. And certainly, as we look forward to the future, we are building -- continue to build a significant secondary mining business. We are doing a lot of surface mining and projects on our PGM side. We still have some gold opportunities in South Africa, and we'd like to see that business growing. So moving forward, I think we'd certainly be keen on more collaboration with DRDGOLD and see that as a long-term partnership and future with the company. James Wellsted: Yes. Just another angle on the DRDGOLD side. I guess from a gold bull or a gold bear's perspective, it's obviously worth about ZAR 25 billion now of 50% -- are we looking to dispose of the stake in time and what would trigger a sale? Or are we looking to buy -- increase our position in DRDGOLD in juice? Richard Stewart: We're definitely not looking for a sale, as I mentioned. I think that's -- we see a long-term opportunity to continue to grow with DRD and add a lot more value between our resources, their skills and the ability to grow together. So no, we're not looking to sell. I think in the long term, we would love to increase our stake in DRDGOLD but again, clearly now is not the time for that. I think we have different opportunities to invest capital now. But down the road, if that opportunity is right and we can do it in a value-accretive manner, certainly something we would consider. James Wellsted: And then I guess -- yes, another growth question, I guess, on copper for Sibanye, more copper exposure or not? Richard Stewart: Yes. I think as we shared in our framework that we'll use to assess external growth opportunities, copper was definitely a metal that I think we would like exposure to. But I think the critical question is less around what we want exposure to or not. The real question when we look at any form of growth is going to be, is it value accretive? So yes, copper is a metal we would look at. But if we're going to do it, it would have to be done in a value-accretive manner. And I dare say, where could we -- where do we see our strengths and opportunities? I think there are some niche opportunities, where we could really create value from copper, and we will continue to look at those. But that will be the underlying driver is it value accretive and where do we think we can unlock value. James Wellsted: Thanks, Richard. And then a question on our chrome strategy, I guess, production and revenues. Does chrome now play a negligible role given the rise in PGM prices? Not. And I guess maybe just touch on the deal with Glencore. Richard Stewart: Thanks very much. No, Chrome is definitely not negligible to us. I think it's clearly a byproduct in that regard, but it's a very important byproduct for us, one we've given a lot of attention to over the last 5 years and continue to look at going forward. So of course, in different commodity cycles, the relative impact of chrome is important. I think we've seen over the years how chrome has gone from being about 2% of our revenue basket almost as high as 15% during downtimes. At the moment, it's probably sitting around 10% to 12%. So it's still a very material number. And of course, even though it's relative to PGMs, that number in our earnings and bottom line is material. So we will continue to focus on all value opportunities and chrome is certainly a very important one. I think critically, the transaction that we did with Glencore, what that really looked around, I guess, was 3 big opportunities. The first one was at our Marikana operations. Historically, that chrome was sold to Glencore under, I guess, onerous terms for us. And that prohibited the potential expansion of some of those resources. And I think in recognition with Glencore by opening up those resources, we can all benefit. And that was the first opportunity from that transaction. So that really unlocked some of the value from the new projects that we have announced as part of our strategy. I think the second benefit was by looking at our chrome operations across the board at Rustenburg and Marikana. We think there's some real synergies that can be derived there. And then we have substantial chrome in surface tailings, which, again, I think with our combined skills, we've got an opportunity to unlock that. So no, not at all. I think we will be -- we are already, I think, if I'm not mistaken, the third biggest chrome producer. And I think with this going forward, we'll be a substantial chrome producer. So that's absolutely part of the strategy going forward. James Wellsted: And just first estimate for gold from Burnstone. Richard Stewart: I think perhaps before then, I need to say our first step is really to get an investment decision from our Board. So that we would be going to in quarter 2 or towards the end of the first half. So let me just make that clear. We do still need to go through that process. I think first gold from Burnstone would come relatively quickly. But I think the thing with Burnstone is it is a long ramp-up period. So while you access the ore body quite quickly and can get first gold quite quickly, it's about a 4- to 5-year period before you reach steady state of about 120,000 to 130,000 ounces. So that's sort of what that profile looks like. But again, we'll unpack that in more detail at our Capital Markets Day sharing those profiles with you. James Wellsted: Thanks, Richard. There are a couple here that I'll just answer myself, I think, before we go to the call. Any further payments due for this Appian settlement? No. they're done. A question on surface sources and projected life for Rustenburg PGM surface tailings. Again, that's been subject to a study, and we'll come to the market with all of the detail later this year when we have our Capital Markets Day. So if you can hold on for that, we'll be able to give you all that sort of detail. And then a question from Steve Shepherd about development assay results are no longer included in the disclosure. One wonders how analysts are able to forecast future head grades and yields without this crucial information. We'll speak about that offline, Steve, I have my opinions. Can we go to the call, please? Operator: We have a question from Chris Nicholson of RMB Morgan Stanley. Christopher Nicholson: I've got a number of different questions, believe it or not, after all the ones you've been on the webcast. I'll just limit it to a couple. Just the first one, just on Burnstone, are you in a position where you could guide on what CapEx for that project should be? It looks like your group CapEx this year is ZAR 17 billion roughly. So I'm just kind of adding what we should add on top of that to get the 120,000 ounces. Otherwise, we can't really credit you with those yet. Second question is just on costs. I think you've done a good -- I think to understand what's happening in the gold and SA PGMs. But just in U.S. PGMs, I see CapEx is up. But even if you strip that out, it does look like the underlying unit cost is up. Is this just a case of a bit of catch-up in forward development? What's driving that? Clearly, you still want to move down towards $1,000 long-term target, but it's going up in the short term. And then final one, I think you've lost over it a bit, but just on Keliber, that extra EUR 100 million over and above the project CapEx this year, that just seems strange given the project is now finished. What actually is that? Is this a working capital build? Or is there a working capital build in addition to that? And if it is, can you actually capitalize all those ore stockpiles? Richard Stewart: Chris, thanks very much. Good to hear from you. Let me -- I'll take the Burnstone and the Keliber question and then ask Charl, if he can pick up on the U.S. cost in particular. So Chris, just on Burnstone, we haven't actually released a full capital number. So as soon as we've got that feasibility done, we'll do that. But what I can share with you is that the large project capital at Burnstone has already been spent. So when we turn that project off, the underground infrastructure is developed, most of the surface infrastructure is developed. The plant is largely done. So the capital that will really be required on Burnstone is essentially opening up that ore body. So it's development capital predominantly. So what we're really looking at is the cost from going from start-up to steady state. For those who are familiar, it's a Kimberly ore body, which means there's a lot of development required if you really want to set that mine up for the long term, and that's our intention. So it's not a big slug of capital that will come through. It's essentially opening up and development capital. So if you were going to think of a mine ramping up its ORD style capital that will be capitalized preproduction. So it's not big project CapEx, Chris, but we'll certainly look to give you the profiles on that as those studies are completed and made public. I think on Keliber, so let me just unpack that and so we can be absolutely clear on those numbers. So we always said -- or the project CapEx for Keliber was EUR 763 million. That number has not changed. The last portion of that number, i.e., the EUR 90 million that I quoted gets spent in 2026. So -- and that gets spent during the first quarter of -- first quarter and a little bit into the second quarter. So the total project capital remains at $763 million. It hasn't changed, and the last $90 million is being spent in Q1 and Q2 of this year. The balance to get us to the $180 million, so the balance, let's call it, of $90 million, that is effectively preproduction costs as we start up. A large amount of that will likely be capitalized as preproduction, but it's preproduction and sustaining capital type costs, Chris. So the project capital remains as is. We're just spending the last $90 million now, but it is part of that original $763 million and then the other $90 million preproduction. I hope that clarified it for you, Chris. Charl, do you want to pick up on the U.S.? Charl Keyter: I does, I does. Richard Stewart: Super thanks, Chris. Charl Keyter: Chris, on development, we do have quite an expanded development set of activities, particularly at East Boulder. We also have some incremental capital. So we're replacing the bridge at Stillwater East that runs between the East mine and the concentrator and mill. And that was capital we deferred in the last couple of years. We're now getting into it. And then we do have some mechanized bolters starting to come in. So there is that capital. And then we also have the initial spend on rock dump and tailings expansion at East Boulder as well. So all in, you've got -- you do have a sustaining cost number that is higher than you're probably expecting. But I think the underlying run rates that you're getting from the operators is what you can see going forward. And as I outlined in the presentation, you do have a mixed year of activity here. We've got steady-state performance and then we've got a big shift into the transformative work where you really start to see the benefits on a cost basis and a productivity basis probably at the tail end of the year and into next year. So those will start to be daylighted at Stillwater East late in the year, but they will only get into East Boulder next year. James Wellsted: Is there another question on the line... Christopher Nicholson: Can I just ask is $130 million a good stay in business CapEx level then for kind of 300,000 ounces at Stillwater. Is that what we should assume going forward? Richard Stewart: Chris, is that -- you're talking on the U.S. operations? Christopher Nicholson: On the U.S. operations, yes. Richard Stewart: Yes. That's correct, Chris, broadly in line with the guidance that we put out. That's right, yes. James Wellsted: We like you. We'll give you another go. Operator, is there another question? Operator: Yes, we have a question from Adrian Hammond of SBG Securities. Adrian Hammond: Just a question on your recycling guidance. I know you've now consolidated the ops. But if on my calculations, then Columbus volumes have materially decreased. Could you just unpack that for me? And then for another one on Kloof for Charl perhaps, just the closure liabilities, do they cover the pumping costs that you foresee there? I'm just thinking about the aquifers that Kloof sits on. I know you incur about ZAR 1 billion a year for Cooke pumping. Does the liability you've mentioned cover the pumping that's envisaged for Kloof? Richard Stewart: Adrian, good to hear from you. Listen, I'm going to ask Grant, I think he is on the line, just to pick up your question on the recycling breakdown. I don't believe there's been a significant drop-off at the Columbus facility, but let me ask Grant just to unpack that. Just in terms of Kloof, I'll ask Charl if he does want to come in with any numbers. But just high level, Adrian, I think where Kloof is very different to the Cooke operations. So that's ZAR 1 billion you just quoted now, which is the pumping across Cooke 1 to 4. That's very interconnected with other operations. So on the northern side, we have the Harmony shaft. And on the southern side, we obviously got South Deep. And that is why a lot of that pumping has had to remain while we develop stable systems to be able to ensure seal from the surrounding operations as part of a connected basin. Both Kloof and Beatrix are stand-alone operations in that regard. So when Kloof ultimately comes to closure, it's not interconnected to any other operating mines. So essentially, that can be flooded in line with our environmental permits. So the pumping issues and liabilities that we have previously experienced at the Cooke shaft are not applicable to either Kloof or Beatrix. It would, in time, become applicable to Driefontein. And I think that's where there's obviously an important conversation around extending life of mines around Driefontein and what that future liability may look like. So that is one where that's got to be looked at down the line in the future. Driefontein still got 10 years ahead of it. But for Kloof and Beatrix, that's not a problem on the liability. Charl, I don't know, if you want to just add any numbers to that, and then we can -- I don't... Charl Keyter: No. Yes, we would not provide for pumping or any liabilities because as you've explained, it's -- we have the ability to flood and it's not similar to the Cooke scenario. So no, well covered. Thank you. Richard Stewart: And then Grant, if you are online, do you just want to pick up on the recycling question of Adrian? Grant Stuart: Yes, sure, Richard. online. Adrian, good to chat. Yes, there hasn't actually been much of a decline on the ounces profile delivered by Columbus. If you look on '24 and '25, it was a 2%, I think, decline. I think there is a significant shift though in the market. So there is going to be a lot of different industry play coming out and strategic moves and shifts that will have to take place. And I guess we'll unpack that for you during the April '20 discussion, where we outlined some of our broader recycling strategy. James Wellsted: Thank you. Operator, are there any calls on the line still? -- delay. Thanks a lot. I think that's it really. only one more question. There's always one from Arnold Van Graan about share buybacks mixed. Richard, how do you feel about that? Richard Stewart: Arnold, that's a great way to end this, and thank you very much. Good to hear from you this morning. No, listen, I think as we shared in our Strategy Day, the capital allocation model we're looking at, at the moment is very focused on the 3 pillars. So we've got our dividend policy that largely talks to about 1/3 of distributable free cash flow going to shareholders, 1/3 going to paying down our gross debt, which I dare say should reflect in our overall share price as we get that down. And therefore, hopefully, we would see shareholders benefiting from that capital uplift and then towards growth. I think until such time as we've got our debt in line, for now, we will be sticking to that dividend policy, and we wouldn't be considering any extra. Of course, if commodity prices stay where they are, and we've achieved those objectives on the gross debt side, then we'd have to look at where that policy or the capital allocation strategy lies. But for now, we'll be sticking to our dividend policy, Arnold. Thank you very much. I guess, is that the last question then? If that's the last question, then perhaps just from my side, thank you very much, everybody, for joining us again. As mentioned, this is just one in a series of engagements we're looking to have with the market. I think we can tell that there are still a lot of questions and a lot of details we need to share around some of the projects in particular that we've got, and we certainly look forward to unpacking that with you during April and June of this year. So thank you very much for joining us again. Please have a good and a safe day. Thank you.
Thomas Hasler: Excellent. Good morning, and a warm welcome for all here in the room, visible and also a warm welcome to the invisible that are virtually joining our media and investor conference. I think the short video has brought everything to the point, and I will go and bring more, let's say, details into it, but it has been very well, let's say, aggregated here. But before I start, I would also like to share my sincere gratitude with our 33,000 employees. Many of them are also following this call here, and it is really amazing to see how committed and engaged our employees have supported the company with the many initiatives globally in 2025. And it is also, let's say, the source of the strength of the company in delivering in tough times also outstanding results, shaping for the future with the support of our employees. That's what makes me feel proud to be at the top of the company, but representing 33,000 employees. Now let's look at the agenda, which will follow the sequence of sharing some of the highlights here of '25 from my side, but also then give some flavor to the strategy execution. And then very interesting, how are we doing on the business implementation, key elements which are driving growth into here as well as into the coming years, also supported then by the regional manager, Christoph, Mike and Philippe, which then will also give us a bit of flavor on what's going on in the regions. Before then, Adrian is going to make a deep dive into the financials of '25, then followed by the outlook for '26 as well as then the Q&A session at the end of the session. But I think before I go into the highlights, I would like to emphasize here the strong foundation that Sika is built on and is able to also then outperform the markets, increase profitability in the future. And I think most prominent, Sika is the undisputed leader in the chemical construction market by far. This gives us a leading edge access to big project, access across the channels as the brand stands for top performance, top value and is recognized as a clear benchmark. And wherever in a challenging environment where complexity is increasing, Sika is the first source to go to, to help the specifiers, to help the architects, to contractors to overcome those challenges because they can count on us, us providing value-add innovation to overcome the pain points of the industry. This, of course, is what we bring to the market. Inside, it is this innovation drive, constantly challenging status quo, always look what is out in the market challenging our customers, our contractors, applicators and see how we can remedy those pains with intelligent innovative solutions, helping them to overcome those complexities. This is a key element which we also see represented in the appreciation of our customers when we look at the Net Promoter Score that Sika has, clearly ahead of anybody else in the market. At the same time, talking about the market, construction market is a market that has a lot of influential elements in there. The higher the confidence in the future, the more investments flow naturally into construction. We are facing a period of a lot of uncertainty. Therefore, let's say, markets are hesitant to invest, not all of the markets, but some of the markets definitely, and it is dampening, let's say, the construction activity short term. It's a cycle that we see that is influencing, let's say, the markets overall, but this is also an opportunity, a down cycle is an opportunity. And we took this last year, and we installed an efficiency program, a productivity program, providing our organization a leaner and a more agile structure and also investing into digitalization as a key driver of future differentiation potential in the market with a clear aspiration to be in our market, the digital leader. Just like we are the innovation leader, market leader, we drive for digital leadership. And this we took in, in '25, and we will see also how nicely it will generate the potential for us to outperform the market and also to generate margins increase. The organic growth traditionally ongoing is paired with our bolt-on M&A strategy. We have a fantastic track record over the past 15 -- 10, 15 years with many, many bolt-ons. And we will show later on a bit the flavor of how accretive and how strong the integration power of Sika is. This can be anywhere on the planet. This can be a mature market. This can be an emerging market. We have here clearly also established the skill set to spot the most attractive prospects and then engage clearly based on KPIs that are oriented towards return generation and synergy generation and accelerating growth and, the best one, for transactions. And then when we close, we instantly step in and drive then the integration and the synergy and the expansion of the business via cross-selling, via channel activation and leveraging our global portfolio. So this is the foundation. This is why we are very optimistic and very confident about our ability to outperform the markets as we have also stipulated in our midterm strategy by 3% to 6% in local currency. Now talking shortly and briefly about the markets and here starting probably with where exactly probably a year ago, we were guiding before the tariff, let's say, uncertainty was revealed and which had massive impact on the North American but also ripple effects across the globe with uncertainty related to tariffs going up and down. This has been a sentiment that has stayed for '25, which then also triggers into lack of consumer confidence further increasing in China. As you can see, almost 50% of the residential market reduction within 2 years, very much also here linked to the uncertainty of the global markets, which has also then triggered our reaction to the Chinese business. And towards the end of the year, as if not needed, another element that came with the longest U.S. government shutdown that again was hindering projects to start, waiting for permits, waiting for approvals, which was, again, an element that was unforeseeable. But it is what it is. Overall, we conclude last year's, for us, relevant market had a roughly decline of 2.5% given all these elements. Nevertheless, that's where we come into our performance. And here, our outperformance of the market, with a 0.6% growth in local currency is a demonstration that even under severe, let's say, weather condition, the company can deliver. Also, on the operating EBITDA, if we take in consideration also the steps we took with the Fast Forward program, only a slight decline in the operating margins, while we, of course, see negative leverage with a low organic or negative organic growth rate. Very obvious here also visible, the strength of the Swiss francs has been, once again, let's say, a translation effect. But of course, when we look at the reported numbers, it is quite heavy with 5.4% FX implication in 2025. I talked already a little bit about the actions we took. The market is soft, it is muted. But at the same time, this is the time. This is the time for strong companies to act, to prepare. Because every cycle comes to an end. And we took the decision in the second half last year to shape the company not only in China, where we have been rebasing the business, but globally to say this is the opportunity. This is the time where we can and must take proactive steps, making a leaner, more agile organization, also investing into our operational footprint in automation and efficiency to be able then also to kickstart when the cycle turns up and take advantage of ready-to-roll organization. We paired it also with investments on the digital front as the digital journey can be accelerated, and we took the decision here to fast forward our digital journey with clear elements that we will show later on also in transforming our business more digital and aspiring for a digital leadership in the industry. And all these investments come with a fantastic return, less than 2-year payback and up to 100% return on the individual investments. Now when we look into the regions and here, if we look at the outperformance of the markets, 2.2% in local currency was the growth in EMEA. In EMEA, very clearly, we have pockets of growth like the Middle East, Africa, Central Asia. We have parts of Europe that showed improvements towards the end of the year, Eastern Europe, the parts of Southern Europe as well. So here, momentum that has built up and is then also demonstrating our outperformance in EMEA. The Americas, our second largest region, as well had a strong start into the year. So January was fantastic. February, until about the time of the month as now. While still going in the same direction. We had good momentum coming from '24, building up momentum. Unfortunately, that was then softened over the course of the year, and there is also still a prevailing sentiment in the Americas. But in the Americas, we also have great pockets of growth, like the tech investments. The investments in data center is booming, is, let's say, increasing the commercial construction spend quite tremendously, while other commercial constructions are lagging. So the data center boom and our strong position as a forerunner and as a peace of mind provider to the owners, the hyperscalers give us here a leading edge. And just to give that a bit in perspective, we have been participating in over 4,000 data centers globally so far and let alone 400 last year, thereof 230 in the Americas. So this is a pocket of growth of substantial contribution. Besides that, Latin America, the markets are more resilient, just like other emerging markets have demonstrated here more resilience to the global uncertainties, which brings me over to Asia Pacific. Asia Pacific reported a minus 5.2% in local currency. If we take the China construction market out of the perspective, it would have been a growth of 2.9% in local currency. And here, as I mentioned before, very much driven by strong momentum in Southeast Asia, in India that is partially offsetting the weaknesses in China. Now when we talk about outperformance, outperformance of the market, a market that has been roughly 2.5% down, we compare us to the peers. We have established this peer comparison for quite a while. And as you can see here on the left-hand side, if we take in all the relevant peers and their activities in the construction chemical market, we are outperforming our peers by roughly 2%. In '25, we don't have yet the full set of numbers. So this is still work in progress and will probably also then shift a little bit as Q4 was not only for Sika, a challenging quarter, it was also for our peers a challenging quarter. But more relevant, none of our peers that are in this list here is really active in China. So when we take, let's say, the comparable geographical spread of the peers and us, then on the right-hand side, you can see the outperformance consistently being almost close to 3% to the peers, which are, in our expectation, also slightly above the market trends. Now some of the highlights which we are particularly proud of is the increase of our gross margin, our material margin increased to 54.9%. This is a testimonial to the strength in value selling. This is the value that we bring through our innovation into the market. We are recognized as a value provider, and the return of our customers by utilizing our products, our innovation is speaking for themselves and is driving this material margin progression in '25. But as you can see also coming from '23 to '25, steadily increasing our material margin. I think a particular strength of the company is the strong cash generation also in light of, let's say, lower EBIT in absolute numbers, driven by the onetime effect of Fast Forward as well as the strong currency. But when we look then what the company constantly delivers in the last 3 years, solid double-digit returns in cash, which is almost CHF 1.4 billion that we can then redeploy into investing into our business, giving it back to our shareholders as well as investing into bolt-on acquisitions. So that's underlying, I think, an element of we are also capturing going forward. Another highlight we have not talked so much about, but our aspiration to be leaders in the industry is not only on financial targets oriented. It is also our employee safety. In '21, we launched a program. We set the high mark and say we want to be a leader on safety for our employees. And as you can see, this is a journey. This is a journey which gradually improves. And in the meantime, we have reached clearly above industry average standard, but we are not stopping. We want to make Sika the safest workplace in the industry, and we are investing heavily together with our employees to create this safety culture, which is progressing very nicely. It makes me very proud that our employees are supporting this journey as this is not dictated by top-down. This is ground-up supported. And this is also when we look into what it means behind, let's say, the numbers, it means a safer and more, let's say, streamlined and more process-oriented and more, let's say, transparent organization, which leaves less up to chances. And that's, of course, also a value driver for other stakeholders as this is a part of getting transparency and getting efficiency throughout the organization. Talking about the nonfinancial metrics, I think we can be proud. We are constantly delivering on our nonfinancial commitments. On the greenhouse gas emission reduction, Scope 1 and 2, the ones that we heavily influence, the water discharge reduced by 3%, waste disposal by 5.7% and as mentioned, 14% on the safety side. These are all value-accretive elements, which are transferring into efficiency, into tangible also financial benefits for the company and its shareholders. Talking about the other element, the organic element, very important, reinvesting into the organization, reinvesting into safety and so on. It's the bolt-on acquisition strategy. We have been able to sign 7 and close 6 of the transactions in '25. I think here, most remarkable also, as you can see, 2 of them in the Middle East. This is a booming area. This is a double-digit growth area where these 2 acquisitions are spot on, not only bolt-on, they are spot on to market demands that are also expected to continue to grow in the near future. We also made a bold move in Scandinavia transaction, giving us here on the mortar side, a very strong footprint. And as you may recall, we have a very strong adhesives and sealants footprint in distribution in Scandinavia. We are combining these 2 strengths and also aspire to be the undisputed leader in distribution with our strong brands in Scandinavia. Here also a very clear value and growth-driven acquisition, with the others then also supporting mature markets like in Singapore or HPS in North America. We invest in our own capabilities, our factories. Here, some of them are expansions into demand-driven geographies like in South America, too, like North Africa, Morocco, a booming economy, also here, covering more space in that country. Kazakhstan, as I mentioned, Central Asia, a booming area, but then also in China. And here, maybe I would like to elaborate. Suzhou is our main site. It's our headquarters close to Shanghai. We have opened the factory for adhesives and sealants for the automotive and industrial manufacturing business. We have great success. The plant opened in the second half last year, and we are gaining share with the Chinese OEMs so that we are already now considering a further expansion of the capacity as we see. With this fully automated, with this state-of-the-art, we are having good traction with the Chinese OEMs, bringing them top-level global innovation into their manufacturing processes. And it's just an example of our constant investment also in upgrading our operations, our footprint and gain more efficiency and productivity. Now let me quickly look in the last 6 weeks. I mean, here, the year just has started, but I think it's remarkable how the year started because in the first 6 weeks, we have opened already 5 new additional plants. And that's just mentioned before, very much demand driven. We have a very strong concrete market in the Southeast of the U.S. So Florida is a booming area. We put the most modern plant down for admixture with fully automated capabilities in the plant near Orlando. We then also expand in Latin America, in Colombia and in Argentina, which is a constant growth platform for us. Bangladesh in Southeast Asia as well as in Africa, with a new plant near the Victoria Lake, 800 kilometers away from our headquarter, also covering this strong growing market there in the East African market. And then, very exciting. I think we reported that just lately, the acquisition of Akkim in Turkey. Turkey is a powerhouse. It's an engineering powerhouse. It's a powerhouse that is very influential in the Middle East and Central Asia. This company has a fantastic footprint, has also a foot into Romania, so in the Eastern European market. And we are very happy that we are now able then soon to build on that platform, bringing our expertise, our technologies from the construction chemical side together with the sealant and adhesives into the core markets of the Akkim and in reverse also bringing the Akkim products into the Sika world, into Europe, into other parts of the world as they perfectly fit our portfolio for distribution. And as mentioned before, the seventh transaction of last year, closed end of January. So Finja was a fast-track acquisition, signing early December, closing end of January. And it's a sizable, excellent platform, which we are utilizing now also to drive above-market growth in Scandinavia and utilizing this to leverage our synergies into the market. Maybe a short segue into the adhesives business. We haven't talked that much about the adhesives business, but it is underlying representing about 30% of our business. It is relevant or mission-critical in all our markets. It's in all channels, has a very predominant position. It's an enabler. It's a typical enabler to move from traditional bonding techniques to techniques that enable multi-material structures that enable also smart decarbonized buildings. So it is a key element on the journey of all these industries, and it comes with very attractive innovation-driven features where we have here a clear leading edge, providing here state-of-the-art innovation like the Curing-by-Design that is enabling our customers to advance their design and their construction and manufacturing processes. In the adhesives field, it's all about the brand. If you go from DIY over to the big box, if you go into the professional, it is all driven by a few core brands, and Sika is a core brand on the adhesive side. Sikaflex is standing as a synonym for bonding in many market segments. And so that's the leverage potential which then also enables us to take full advantage in all segments and channels. Now quickly on the strategy execution. I don't need to go deeply into. You have seen this. It is a reconfirmation from our side to our midterm targets, gaining and outgrow market share in a profitable way. That's, in short, the message as a takeaway also on the financial as well as on the nonfinancial, very clear and transparent journey towards '28 that we have always communicated. Now in the background, we have a strong position. As I said, we are undisputed market leader with 12% market share in a CHF 100 billion market potential industry. And it is highly fragmented, which means the winner can take it all if you act like. And that's what we do. We take market share out of the position of strength. And when you look into the different target markets, the 8 target markets, you see a lot of differentiation, but there's the one common theme across all of them, this value-add product focus. In all these target markets, when you talk to contractors, when you talk to owners, when you talk to specifiers, architects, you will hear this common theme, Sika is clearly leading through value, providing exceptional value to the construction to the manufacturing industry. That's what we stand for. That's what we are leveraging. That's our innovation drive. We're also very well balanced when we look across the different markets, coming from the infrastructure side, the commercial construction, residential construction and then also the manufacturing industry, the automotive and the industry segment, where we have a good share in the global business. Also, when we look at the new construction and refurbish, mature markets are more leaning on the refurb side, emerging markets more on the new. But also emerging markets like China, for instance, are moving very clearly into becoming more and more also refurbishment or renovation market. These are all elements that we balance very well and where we have the competencies to also bring this to the local market situation and bring those competencies to the 102 countries that we have worldwide. The market penetration, the outgrowth of the market, this picture you have seen before. I talked a lot about the leverage potential that the company has that we are utilizing the cross-selling, cross-selling in simple terms, these projects have multiple needs of solution from waterproofing, from bonding, from sealing. It is here the clear aspiration to make us the one-stop shop for our contractor, for the applicator and leverage our great recognition in the market. The multichannel approach, I mentioned it before. It goes from the direct business all the way to the e-commerce business where the brand is super relevant, where, let's say, the specific solution for specific customer is super relevant. We cover it all, and we benefit here also to leverage that across all these channels. Go where the money is. In very simple terms, it is a call for action for the local organization. Don't come back and tell us what is not going so well. Look for the pockets of growth, look for the activities that are still going strong and invest there. And here, data centers has an absolutely clear outstanding element, which is happening everywhere, as a go-to, but it is also infrastructure spend is much less influenced by market downturns. Infrastructure spend is a way also to take advantage of the resilience of the infrastructure, spend time there. This is the call for action for our local organization. Don't explain. Drive business where you have pockets of growth and utilize the group-wide expertise to drive this. Key geographies, it's Europe, North America, China, always in focus, always, of course, key decisive markets for us to be very close to and demonstrate our leadership in these leading geographies. And innovation above everything, I repeat myself, innovation at the core for reason being driving value, driving market share gains and ultimately outperforming market situations, whatever they are. I like this slide very much. We put this together in a simple term to demonstrate. Innovation is not coming just by saying so, it requires strong commitment and investment. And we are constantly investing into our R&D in our 16 global technology center, which then also are influencing the 100-plus local -- very local R&D facilities, 1,800 chemists, more than 5% of our employees are working on the innovation path and spending substantial money on innovation, CHF 280 million, our annual R&D spend. This is the investment. What then comes out is innovation, is patents, is unique approaches, which then are converted into solutions, which generate value for our customers, are protected by IP, but are then recognized ultimately when we look at what our innovation power is delivering, it's delivering -- it delivers 3 to 5 percentage point higher gross margin. It represents almost 1/4 of the products with less than 5 years in the market. This is then also showing the power of innovation in our markets. An excellent example of this is an innovation that we brought just before COVID to the market. It's novel. It's a patent-protected waterproofing membrane, which can be used pre and post applied, to do basement waterproofing in a way that you have absolute peace of mind and don't need to fear any water leakages. This is picking up pace, with a 27% CAGR. It is a highly specified solution. So it takes some time until it spreads, but it spreads very quickly, especially in the Middle East. And I have here the picture of the Al Maktoum International Airport that is under construction in Dubai. This is a huge project, almost 3 million square meters of waterproofing membranes are utilized. We are the sole supplier. We are here also adding another landmark construction building to the success story of the SikaProof A+ membrane system. Also data centers, I can't talk enough about data centers. We love the owners because the owners love us. They love that Sika gives them peace of mind, that they get the highest reliable performing solutions so that they can execute inside the shell by not having to care about the shell itself or disruption from the roof, from the walls, from the floors. That's why we have been very early the preferred choice as we stand for this reputation. The roofing as a particularly important part, has further advanced. We bring a self-healing membrane to the roof, which means that the roof membrane can also absorb and correct impacts from nature. Hail, for instance, is here a painful disruptive element, but also just the UV sunlight in Arizona is quite different than here in Switzerland. So these are elements that are super vital. On the other hand, the fibers on the concrete floor, these are taking out carbon emission quite heavily as we can replace steel. We also have lower maintenance costs. We have higher robustness of concrete floors with fibers, and it is very appealing to data center owners to advance here and also contribute to decarbonize their buildings. Coming back to M&A, bolt-on M&A, I think we have indicated at the last time also how accretive bolt-on M&As are. And as you can see here, we look at the pre-synergies EBITDA multiple at the time when we kick off the integration. And then within the third year of the integration, we achieved a 4x lower EBITDA multiple. So an improvement that builds on our possibility to accelerate growth, top line growth, cost synergies, cross-selling synergies and ultimately, then also drive the EBITDA growth of the acquired company. This is, in our view, a superior way to provide capital returns, and we are lining up more to come in the near future. Akkim, just one perfect example of one that soon is going into the implementation mode. The big one, MBCC. We like to talk about the big one as it has generated tremendous synergy across the organization. Last year, our second -- let's say, full year after the closing, we generated CHF 182 million. And when you look back when we signed the deal, we had CHF 160 million to CHF 180 million for the full third year as synergy commitment. And we have raised it twice now. And as you can see, at the moment, we are already above the original third year synergy level, and we have increased the synergies by 25% over the last 2 years, which is a testimonial for faster integration and also higher synergy gains on the cost side as well as on the revenue side. Now business implementation. Looking into some key elements, and I come back to the data center because it's not only, let's say, the roof and the floor, there are many more elements, mission-critical to data centers. As you can see, the flooring solution, the precast, many of them are precast solution where we are with the precast, where we are then also with the joint sealants that are very important to make sure that there is no interference. The concrete itself, the admixtures, the fibers, fire protection, super relevant in data centers. That's why also the roofing systems are preferring our PVCs over other technologies as best-in-class fire protection solutions. And as mentioned, we have a reference list of more than 4,000 completed data centers worldwide. And here, a fast pace with 400 last year in execution, 230 alone in the Americas and more to come. And you will hear more then also from my colleagues from the region. This is a clear focal point for us to also outperform the markets in general. Not to forget infrastructure. Infrastructure, megacities are suffering of lack of infrastructures in emerging markets, as we can see here, we have here Brazil as a good example, but you find it in Santiago, you find it in Southeast Asia, everywhere, there are infrastructure construction ongoing. The same happens also in mature markets here, the example from Munich, from the S-Bahn station in Munich, the deepest S-Bahn Station in Germany. Also in Auckland, this is ongoing. And these are high-profile jobs where, again, the reputation and the possibility of Sika to be the, let's say, one source for many solutions make us a premier supplier to those big projects, and it's also, as I mentioned before, an area where there is constantly flowing money as the need for infrastructure upgrade or new infrastructure is endless and growing. Another important part there are, let's say, the infrastructure in regards to ports. We see that the globalization, as we have experienced, is questioned and more and more ports are built for more regionalized or, let's say, for a new supply chain setup. Here, a good example from Vietnam. Vietnam is one of the, let's say, countries that is benefiting from moving out of China into, let's say, a more neutral territory. So here, a lot of construction ongoing. And when you look also what's going to happen in the near future in regards to the port infrastructure, again, very, very, let's say, high-end construction. Here, we talk about exposure to seawater, exposure to heavy-duty traffic. This is again a field where Sika has a leading edge and is very involved and taking benefit of those momentum. One that we have talked a lot when we talked about the China expansion of the retail journey. It is still ongoing in China. We will hear that later on. But it has made its way into Southeast Asia. When you look at the chart here, where we were in 2003, we had roughly 80,000 point of sales in Southeast Asia. We had 90,000 points of sales in China when we took over Parex in 2019. China is now at 280,000 point of sales. But I want to talk about our journey in Southeast Asia, which is already now at somewhere around 170,000 point of sales, and we are rapidly expanding our point of sales across Southeast Asia. And as you can see, it comes with results. It comes with double-digit growth in that segment, and we expect here a good mid-teen growth also for the years ahead of us. And it is not only an Asian topic. You will hear it is also spilling over into other emerging markets in EMEA or in the Americas. But let's now have the regions give us a bit of flavor of their growth initiatives. And Christoph, if you would like to kick it off with the largest region, EMEA. Christoph Ganz: So thank you, Thomas, and good morning, everyone. So I think giving a reliable outlook for EMEA for this year is a bit like crystal ball reading in these volatile times. Nevertheless, our main first and foremost target remains. We want to outperform our markets. We want to do better than our competitors. This is what we measure basically every quarter. And here, I would say we don't have to hide ourselves, although, of course, we're used to different growth rates than the 2% that you have seen. So looking into this year, I would say, for Europe, we will see, but I don't think we will see big, big improvement. Markets -- most markets will remain challenging, although there are some pretty good positive recovery signs, mainly in Eastern Europe, I must say. So we had a very strong second half last year in Eastern Europe. So a lot of money from the European Union flowing east, going into infrastructure mainly. And here, I must say, I believe that we will see a continuation of this. Also for the Nordics, we expect recovery. We see this already. And here, we're very well positioned with the recent acquisitions that we've done, the mortar companies in Sweden and in Denmark. I think here, we have -- we built here a pretty strong position also in comparison to our competitors. And also France, I think France comes out of 2 to 3 years of really soft markets, kind of recession also, and we have been suffering there as well. And we see signs of recovering. We also believe that '26 will be a better market because there's quite a backlog of residential housing. People have to live. And there is not -- there are not enough houses and apartments there. So we will see this -- the French market already improving here. Germany, I must say, we've been pretty positive. Actually, we heard about this EUR 500 billion that the Germans want to invest into infrastructure. We haven't seen so much of this yet. So quite some delays, a lot of discussions, bureaucracy, et cetera. We will see when this comes. We're ready. We're there. This is our second largest market after France in Europe. We will definitely see continued growth in Middle East and Africa. You've seen it from Thomas. These are double-digit growth markets. And it's -- of course, it's a big pleasure to see how we're doing there. And I think Sika has very strong position in these markets in all of these countries. So where there is investment, we're there. We're having factories, we're having strong organizations. You've seen the Maktoum Airport on Thomas slide. I mean, this is probably our largest purchase order we have received so far from that region, and it's just the beginning. So overall, we remain humble. I think it's probably the best strategy these days, although we want to do better than all the EMEA markets for sure, but we believe in a gradual improvement over the year with definitely a stronger second half than the first half. Talking about growth initiatives, how we want to do that. And this is just a selection, but I would say it's some of the key focuses that we have. Sure, infrastructure, this continues. Also in Europe, I must say, there is money. Sometimes I'm wondering, I think European Union flows faster into Eastern Europe than it flows into Germany and France. Bureaucracy here is not really helping, but there are incredible projects going on. I was just in touch with our Romanian friends yesterday, a lot of road repairs, bridge repairs, and these are big businesses for us in Sika. There is investment into energy everywhere, not just in the Middle East, also in Europe, nuclear plants that are being built, and these are all mega projects for us. Airports, you've seen all the projects. And I would like to mention here also defense. I cannot speak too loud about this, but there is the billions of euros going into defense, mainly in the East, also in the Nordics, the infrastructure project roads, hangars for planes being built. And here, Sika is very, very well positioned. So we're selling, for example, our epoxy flooring systems into these hangars that are being built for all these fighter jets that a lot of companies are buying. And then a bit of a new topic for us, residential, linked to commercial, there several really large real estate developments happening in the EMEA region. One we have listed here on the picture. It's called Ellinikon. This is a Greek investment, actually. It's a Greek investment company on the old premises of the Athens Airport. This is EUR 8 billion investment. And Sika has already started to deliver several million of euros, and this will take a few years. It's like a bit like an espresso machine. Once you're in, they continue buying from you, and it's -- we have a very strong position. We're clear #1 in Greece and full range, and we just -- luckily enough, we're just investing in a new -- in an expansion of our plant in Athens. So we will have a lot of capacity now to go after this one project. There are other residential developments like in Ras El Hekma in Egypt at the Mediterranean actually, this is a $35 billion investment from a UAE company. And it's a city, same like Ellinikon, with houses, with offices, marinas, roads. I mean this is just paradise, of course, for us in Sika. We have dedicated people that work only on these projects and try to penetrate these projects to the maximum. Data centers, you heard it already several times. So right now, in region EMEA alone, we are actively working on 106 data center projects. Each of them gives us sales CHF 2 million to CHF 3 million, some even a bit more. Sika is very well positioned here. These days, everybody talks about data centers. We were -- I would say we were the first company in the U.S. when the data center boom really started. Now it's coming over to Europe, even Africa. Interesting enough, they're building data centers in Morocco, for example. And here, we have all these references. And of course, this helps us to make sure we get -- we participate in these projects wherever they're being built. Pharma, also independent of the economies, the 30, 3-0 big pharma projects happening in EMEA right now, also in the Middle East. And these are always mega projects for us. And then, of course, food and beverage, also independent of economies and how they're doing, beer companies investing, my famous fish farms, everybody is always making fun of me, but this is a lot of money here for us. A lot of fish farms being built all over Europe actually, and each project has several million of sales potential for us. And last but not least, retail distribution. Retail actually is doing, has been doing well. Whether there is a crisis or no crisis, people are investing into their homes to cheer them up themselves. And here, our strategy is to transform our professional products into let's say, more consumer products. And I added here one really fun picture from a pilot, which we were doing actually a pop-up truck store. We put the truck during 1 week in front of, I think, 3 or 4 do-it-yourself stores in France, only one product. It's actually a cleaning product for your algae and moss on your terraces. They get green always during winter. You buy this product and fantastic. By the way, we sell it also in Switzerland. So you can clean your terrace, EUR 1 million sales in 8 days. We couldn't believe it. And of course, now this has encouraged us to further scale this up and do this kind of pop-up truck stores also in other countries. So all in all, our job is to grow and not to be depressed or pessimistic or so. Markets are what they are. It's our job to be optimistic and to beat markets, to beat our competitors. We have it all. We have the range. We have very good people. And that's why I remain positive also for 2026. Handing over to Americas, I think. Mike Campion: Okay. Thank you, Christoph. Well, it's always great to follow Christoph. We get the excitement going and moving already early in the room. So good morning. It's now my pleasure to discuss the forecast for 2026 in region Americas. So as you know, we saw a very challenging market environment across the Americas in 2025, where markets were really constrained. And this was by economic, by regulatory and trade policy uncertainty. And we say uncertainty. I believe I heard the word uncertainty more from our customers and partners in the last 12 months than I heard in the rest of my life combined. But from tariffs right down the line, we had these difficulties. This uncertainty will certainly continue in the U.S. and I'd say, to a lesser degree in Mexico in the first half of 2026, while Canada and the rest of Latin America will be slightly more positive to start the year. We've seen excellent growth really throughout Latin America with the exception of Mexico. And Canada was very strong in '25 and really starting the year incredibly strong in 2026, also led by some really nice infrastructure projects and continuing to expand their market position in trade. We expect the U.S. market and Mexico to also improve in the second half of the year as our backlog of projects start to get released. Now our markets in '25 and now again in 2026 are largely driven by our continued success in mega projects. Now when you say mega projects, we classify these projects as those projects with a value exceeding USD 1 billion. So while we saw quite a soft demand overall in our baseline business really throughout the region, these projects continue strongly and allow us to continue growth. So we've really -- Thomas mentioned go where the money is. So we saw very quickly that our baseline business was not delivering as it should. Now we continue to gain market share. We didn't lose any customers, and we actually sold effectively there. But to really continue that growth platform, we needed new outlets. And these mega projects offered that opportunity. So in fact, in the U.S., mega projects increased by more than 45% from 2024 to 2025. And this project velocity is actually increasing now, and it's showing in our project backlogs for 2026. And it's everything from onshoring commercial and industrial production, and we see this a lot in the U.S. and in Mexico to massive infrastructure projects going on throughout the region. And we saw this also in Latin America, where previously there was not a lot of infrastructure development. When we see some geopolitical changes happening in many countries in Latin America, we start to see this shift where money -- more and more money flows now into private construction, but also into infrastructure development within these countries. And it really allows us to get into these big projects and continue a nice growth story. So you see here some really excellent projects we're able to deliver in 2025. And these projects will continue to deliver growth in these segments in 2026. So here, we see the data centers. And like the others, I can tell you, I also really love data centers. I love everything about them. And they were really one of the things, the key drivers to sustain the business and I would say the overall construction industry in the Americas in 2025. I expect that to continue strongly in 2026. So we all know these data center investments, it was and will continue to be a key construction sector driver. So across the Americas, we delivered I think as you heard already, 230 new data centers in 2025. So this fantastic order velocity is actually increasing into 2026. So we started the year going full out in our data center investment with new innovations and allow -- Thomas showed a bit of the innovation that we do here. It allows us to bring more value to each and every project. So while these are already mega projects, our dollar take per project continues to increase each year. And as we bring new innovative solutions, it's all about speed, it's all about technology. And if there's a good solution, they're very open to these innovative solutions that then allow us to increase the sales and bring value to the project. So in the middle here, you see the Jacksonville Jaguars Stadium, which is currently undergoing this massive refurbishment. This will take this to really a world-class venue. There's a bit of a competition in many of these countries. We see it in the U.S., we see it in Mexico that every stadium has to be a bit better than the last one and always pushing for that customer experience. And now we see with our innovative solutions for every application from concrete flooring and roofing to engineered joints and sealants. In the past, we would have really celebrated winning a USD 1 million type of stadium project, and we get very excited about that. Nowadays, with this full line of innovative solutions across the buying sector within these segments -- and again, we have special teams dedicated to the specification of these projects, even some custom solutions for engineered joints. With these new innovations, we're allowed to take the same projects that we used to get $1 million, now we exceed $10 million plus. So the dollar take per stadium really takes off. And our vertical market approach unlocks these opportunities for growth. We get in early, we specify and then we work on the job site with the contractors, and there's always custom adaptions while you're on the site that allows us to, again, draw more revenue there. And this goes -- we always talk about the big ones, Jacksonville Jaguars, Buffalo Bills, the Raiders, Stadium Azteca in Mexico. So there's always been -- and then many in Brazil, but there's many of these big stadiums. But it's not just the pro stadiums we're looking at. It's the professional stadiums right down to the local sports arenas. And all of these need solutions. And when you really get into the same sector, you'd be surprised how many stadiums are around the world. Then we talked about, here, at the bottom, you see the infrastructure. Our infrastructure business really continues to bring growth everywhere across the Americas. And again, we see this more and more shift as infrastructure development becomes a key priority, certainly in Latin America, but also now in the U.S. and in Canada. As funding projects continue throughout 2026, we see this nice development of the funding in many of these countries. So we expect a very robust infrastructure business in 2026 as well. Here in this picture, you see the TBM tunnel project in Santiago, Chile. This is 3 separate metro lines running under the city, where we have a full array of projects -- products on these projects. We also have additional metro lines running in Lima, Peru. We have one in Bogota, Colombia and Sao Paulo, Brazil and a huge project now in Toronto. So these big metros deliver huge sales, and they go on for years. So once you're into these bigs, you have a long-term supply of your portfolio into these projects, but also it continues to generate more and more business because when you're on site with the contractors, there's always new opportunities for innovation. And then finally, our automotive team, we secured a record volume of new business awards. This ensures really a continued increase of our market penetration and innovation launches. So to really capture the additional content per vehicle. So while the market is really sluggish, the build rates are sluggish in the market, as long as we continue to capture more content per vehicle and find ways to enter these platforms, we can continue a nice market there. The soft vehicle production environment really overshadows a bit the robust opportunity pipeline as OEMs reset their propulsion system strategies, leading to a long-term growth effect. So while we will continue to win new business and increase our market share across the region, even as the baseline business will be constrained by continuing uncertainty in the first half, we're really looking forward to a renewed vigor in the market in the second half, and I am confident that our outstanding Americas team is ready for the challenge and already running full speed into the year 2026. Okay. So that's for the Americas. I'll turn it over to my friend, Philippe. Philippe Jost: All right. Okay. Thanks, Mike. So back to -- now to Asia Pacific. If you look at Asia Pacific, we see very 2 different trends. On the one hand side, we see China. China is still depressed. The construction industry is decreasing compared to previous years. This is mainly driven by a weakened residential sector. We see here continued decrease in house prices and consumer confidence suffering from that point of view. We don't see any short-term trend reversal, there has to be kind of people saving less and investing in residential again for us to see this trend reverse. On the positive side, we see some investments in infrastructure. We saw the launch of the 15th Five-Year Plan by the Chinese Government. looking at, for example, urban renewal, was one of the pillars that they want to invest in. This means that all the infrastructure that was built in the past years is up for refurbishment. It's investments in transportation and refurbishment of bridges and tunnels. It's also wastewater treatment and water infrastructure is specifically heightened there. So upside on the infrastructure side, but still looking at a depressed residential market. Then this is countered by a very dynamic market in India and Southeast Asia. We had a very strong year in 2025 in those markets and see here continued opportunities for us to grow. One of the opportunities was already mentioned by Thomas, also by Christoph is that there is the distribution retail market. Here, we had 170,000 point of sales that we were supplying at the end of last year, 50,000 of which were opened alone last year. So this is a very accelerating area for us. Using IT systems to track those point of sales, using IT systems to be in touch with more than 7 million end users via WhatsApp or WeChat in China to see their buying patterns, to see how we can activate them buying products from us. So this is a continuing trend that we will push in this year, also in the coming years, also entering new markets such as Bangladesh or places like that to profit from the know-how that we've learned first in China and then in Southeast Asia. The other area of growth opportunities for us is industrial construction. We see many companies derisking their supply chains, building factories in Southeast Asia. It is manufacturing factories. This also then leads to port infrastructure, like Thomas showed in his slide, but also food and beverage, data centers, of course, here the legwork done by our U.S. colleagues where many of the Googles of this world, they open and build new data centers and specifically in Malaysia, Thailand, where we were able to supply our products as well into those projects. Large transportation infrastructure. If you look at the mega cities, of the 20th largest cities in the world, 15 are in Asia Pacific. This means congestions. If you're driven through Mumbai or other places, you spend a lot of time stuck in traffic. So these cities are investing in bridges, in tunnels, in subway systems, in water infrastructure, wastewater treatment plants to cope with the growing city around them. And this is happening in India. It's happening in Southeast Asia, in China in many of those places. So we see a lot of airports, tunnels, subway systems being built in cities like that. The growing refurbishment trend, I mentioned already in China, is an area where we can profit from. as this infrastructure has been built 20 years ago. And we see in the long term or in the medium term even the share of new build versus refurbishment projects going towards the area of refurbishment, where traditionally Sika has more products to sell than in a new construction of a bridge. Then the other point I'd like to highlight is the automotive and industry part. Here, the focus on Asian OEMs, whether Chinese, we mentioned the opening of the new factory or the domestication of some of the production in our Suzhou factory, but also Korean and Japanese OEMs. Here, we also see the highest growth rates were in Southeast Asia and India. This is then local OEMs like Vinfast, for example, in Vietnam, but also Chinese and Japanese producers opening their factories in those markets and us being able to have the experience with them in their home market, being one in the pole position to supply the products also in these new factories that these companies are building in those markets. So with that, positive outlook for Asia Pacific, with the asterisk that a big question mark still of how the residential market in China will evaluate, but we have quite some confidence that at some point, this trend will revert. Don't ask me for a specific date because I won't be able to give you that at this point in time. But nevertheless, I hand now back to Thomas -- or Adrian, sorry. Adrian Widmer: Thank you. I'll go first. Well, thanks to my colleagues here and also a warm welcome to everybody here in the room and the ones following online. I will now dive a bit deeper into the financial result. And I would say we have delivered quite a respectable set of numbers against near-term cyclical headwinds as we have seen. The result demonstrates here a consistently high cash generation and also how Sika is well progressed in executing its efficiency program as part of Fast Forward. Here are, again, some of the highlights, CHF 11.2 billion in sales. 0.6% growth in local currency. A decline in Swiss francs, minus 4.8% on quite adverse foreign exchange effects. A further strong expansion of the material margin, to 54.9%, up 50 basis points. An EBITDA of CHF 2.065 billion, or 18.4% on a reported basis, impacted by Fast Forward onetime cost and some operational deleverage caused by revenue weakness, particularly in the second half and particularly in China. Excluding Fast Forward costs, of CHF 86 million, EBITDA was CHF 2.15 billion and the margin 19.2%, only slightly below the previous year at 19.3%. Reported EBIT, CHF 1.49 billion, 13.3% of net sales. Also here, impact of Fast forward, including here some impairment charges and CHF 108 million included. As well as net profit, CHF 1.045 billion, 9.3% of net sales, also here impacted by Fast Forward. Very positively, a continued strong cash generation with an operating free cash flow of CHF 1.36 billion or 12.1% actually, a slight increase here in the strong net sales ratio that we already had in 2024. Fast Forward cost measures, well on track with related onetime costs all recognized in 2025. Our Fast Forward program delivers a strong return on investment. with cash payback cost of less than 2 years and is expected to already generate CHF 80 million of benefits in 2025. And then lastly, here on the dividend side, the Board of Directors again proposes an attractive dividend with an increase of 2.8% to CHF 3.70 per share. Let me now talk about some of the individual elements in a bit more detail, starting again on the top line. Local currency growth of 0.6% breaks down into 1 percentage point of acquisition growth, while organic growth was slightly negative on group level, minus 0.4% for the year related to soft markets mentioned, particularly China and particularly Q4. Acquisition growth was mostly related to the 6 transactions we completed in '25 and contributed this 1%. Foreign exchange impact, as mentioned, significantly negative, -5.4% or a translation of more than CHF 600 million to a reported growth of -4.8% in Swiss francs. Quickly on the regions, Thomas talked about it. If we look at sales growth in region in EMEA and Americas, quite solid 2.2% sales growth across both regions also with organic growth in both regions, while the U.S. saw a negative trend in the second half of 2025, which was also partially attributable to a lengthy government shutdown. Negative growth in Asia Pacific was driven by a significant decline in the China construction business without -- here China construction growth rate would have been at quite a similar level of the 2 other regions and also notably here, foreign exchange impact, the most negative in the Americas, driven obviously by the weak U.S. dollar. Now the development in China in the construction business, which actually declined by 18%, also had an impact on overall group. If you exclude here China again on group level, we would have actually grown organically 1.2% versus the 0.4% on group level reported. Now turning to the P&L and moving down here from the sales line. In full year '25, as mentioned, we have delivered an expansion of the material margin with gross result expanding by 40 basis points to 54.9%. Overall, positive cost price spread was driven by our focus on delivering innovative value-add solutions and also modestly falling input cost here helped by our structural procurement initiatives. The deflationary environment in China was compensated by positive price contribution elsewhere. The dilution effect of M&A was actually minute less than 10 basis points. Reported operating costs, this includes personnel costs as well as other operating expenses fell by 1.4%. Within these costs, Sika recognized CHF 68 million of fast forward onetime costs. Normalizing for this, operating cost decrease was -3%, continued solid MBCC-related synergies as well as efficiency measures were offset by underlying cost inflation and some operating deleverage, particularly in Q4. On the personnel cost, specifically, which increased by 1.7%. Here, the impact of Fast Forward-related severance cost was CHF 57 million. Without those onetime costs, personnel costs would have decreased by 1%. Synergies as well as operational efficiency measures were not quite sufficient to negate underlying wage inflation of close to 3.5% across the group. Q4, in particular, saw higher health benefit and pension costs as well as negative accrual phasing impact versus previous year. Underlying organic net personnel cost increase was 1.7% on a local currency basis. Other operating expenses decreased strongly by 4.6%, excluding Fast forward onetime cost of CHF 11 million cost decline was actually faster than the rate of revenue decline at minus 5.2%. Operational efficiency initiatives and synergy delivery were the driver, while Q4 comparison was negatively affected by an insurance payment and also some R&D credits in previous year Q4. As a result, reported EBITDA decreased by 9% to CHF 2,065 million or the mentioned 18.4%, again, normalizing for Fast forward, 19.2%. In looking here at the EBITDA bridge in '25, starting on the left-hand side with 2024, 19.3 ratio. We delivered an organic material margin improvement of 50 basis points, driven by new product innovation as well as structural cost efficiencies. M&A synergies coming from MBCC contributed 40 basis points. We saw the overall comparison number in terms of synergies compared to prior acquisition. The incremental contribution in '25 was CHF 57 million. And in total, as Thomas mentioned, already exceeded original guidance of overall synergies. On the other hand, foreign exchange, including some hyperinflation effects as well as the impact from a negative fixed cost leverage reduced margins by 20 and 70 basis points, respectively. And the aforementioned Fast Forward cost had a negative impact of 70 basis points to arrive at the reported EBITDA figure. Now if we look at the bridge here and exclude China, overall, the underlying EBITDA margin would have increased to 19.7%. So a clear improvement material margin by 70 basis points, while the negative leverage reduces here to minus 40 from minus 70. But it is, however, important also to highlight that the China construction business remains a profitable business with clearly double-digit EBITDA percentage numbers. Turning back to the P&L, looking at depreciation and amortization expense, which grew by 2.9% or CHF 16 million. Also here, we have a fast forward impact of roughly CHF 22 million and slightly higher intangible amortization relating to bolt-on acquisitions. But organically, depreciation and amortization expense grew largely in line with sales. This is also the expectation going forward for 2026. As a result, EBIT was impacted here over proportionately with a decrease of minus 12.9%. Excluding Fast Forward, it was CHF 1.601 billion. If we look below EBIT, net interest and financial expense decreased by CHF 30 million compared to the same period last year. The decrease is largely related to lower debt and also the scheduled replacement of a Eurobond with Swiss bond financing. Also here, expectation going forward for interest cost to continue to slightly decrease. A word to the group tax rate here, an increase to 22.9%. Previous year had a favorable onetime effect on the deferred tax position relating to legal restructuring. Going forward, we also expect about a 23% tax rate overall. Quickly turning to the balance sheet, which reduced in size in '25. This was driven mainly by 2 factors. Firstly, the continued appreciation of the Swiss franc, particularly versus the U.S. dollar with approximately CHF 900 million of translation impact. Secondly, and in spite of a higher cash position, here lower current assets, particularly related to disciplined working capital management. Balance sheet total fell by 5.2%. The decrease in intangible assets is strongly attributable to foreign exchange as well and shifts within the liabilities is largely related to financing and definancing activities where we repaid a bond tranche and refinanced twice during '25 with multiple tranches in the market. Shareholder equity reduced by 5.4%, also here translation driven, whereas the equity ratio remained at 44%. ROCE impacted here by Fast Forward costs as well as well as currency-related EBIT impact decreased to 12.3%. Now turning to cash flow, quite a strong development, as mentioned, CHF 1.36 billion with a strong second half performance, given our focus here, particularly on working capital management, 100% conversion of here profit before tax into cash. Main contributors, as mentioned, net working capital management and providing roughly CHF 70 million of cash versus here a consumption of CHF 160 million last year. Modestly higher CapEx and slightly higher cash taxes accounted for the difference. And looking at the ratio, again, a small increase on already a sizable level to 12.1%. On the leverage, here, while net debt reduced by CHF 300 million, 2025 net debt EBITDA leverage increased slightly. If you exclude Fast Forward at the same ratio of last year. We have a strong investment-grade rating and expect another strong free cash flow performance in '26. This strong cash generation also affords us with some optionality as part of our capital allocation policy, which is focused on high long-term value creation for our shareholders. First priority is supporting organic growth and drive profitability through high-return investment, but also highly value-accretive bolt-on acquisitions where we can demonstrate superior returns through cost synergies and revenue and cash acceleration. We have here a very well-proven playbook to deliver synergies. We will continue to reward our shareholders with a progressive dividend policy, as you have seen which allows for efficient capital management and steady increasing returns to shareholders. And we will consider share buybacks opportunistically where we have excess cash flow available after other uses, which also includes further deleveraging. The focus is simple, create here the most value possible from these cash flows. And therefore, we will always weigh here which route can deliver the greatest return to our shareholders. Briefly again, on the dividend here, as proposed, a dividend increase of 10 Rappen here proposed by our Board of Directors, an increase of 2.8%, 50% of the proposed payout will come out of retained earnings, 50% out of capital contribution reserves. Then lastly, before we turn to the broader outlook for '26, a brief recap here of Fast Forward, which is a very strong return on investment and payback of less than 2 years and is well underway. It will drive a leaner cost structure with benefits of CHF 80 million to CHF 110 million by 2028 coming from this activity for which onetime cost of CHF 108 million, including CHF 86 million within EBITDA have all been recognized in '25. And the investment part in accelerated rollout of digital platforms, technology, AI and particularly also leveraging our global data pool will accelerate innovation growth and enhance customer value. Investments will amount to CHF 120 million to CHF 150 million over the next 3 years and drive benefits of CHF 70 million to CHF 90 million in combination, this is CHF 150 million to CHF 200 million annual benefit by 2028, whereof about CHF 80 million are expected to materialize in 2026 already. With this, we'll come to the outlook for '26, handing back to Thomas. Thomas Hasler: Thank you, Adrian. And brief one slide, outlook for '26. We talked a lot about all the efforts we have put in place. We are confident that we can deliver on the outperformance of the market, 3% to 6%. We have gauged this with the market condition as we call them muted still in the first half of the year for sure, that leads a local currency growth of 1% to 4%. At the same time, increasing our EBITDA margin into the range of 19.5% to 19% to 20%. This is our commitment, our confidence for 2026. At the same time, we reconfirm our strategic target of the Strategy '28 for sustainable profitable growth for the company. And with that, we would now opening the Q&A, and I hand over to Dominik so that our virtual participants have a chance to be lined up for questions. Dominik Slappnig: Thank you, Thomas. Probably questions -- are there any questions? Alessandro Foletti, probably if you want to start here right in front. Alessandro Foletti: I would like to dive a little bit deeper if you want in the market outlook for this year. Your 1% to 4% guidance implies a decline of the market. You mentioned that in your press release, so would it be possible to go a little bit more in detail along the lines of what you have shown on your Slide 23, where you showed 20% of the business is residential, 30% infrastructure, 35% commercial, 15% automotive. Maybe what do you see in those 4 segments by geography, if possible? Thomas Hasler: Yes. I think it's a good segue by looking at the 4 segments. And if I start on the residential side, residential is, let's say, is globally challenged, but the biggest impact still will be seen in the rebasing of our residential business in China. So you have heard it also from Christoph and also to some part from Mike, the residential business is, let's say, in other parts outside of China, also, let's say, not booming, but it is kind of also leveling, eventually even showing signs to come back like in France, when we look at the permit level, it seems that there is some movement, but nothing exciting. So the residential out of the 4 segments, certainly the one especially also impacted by China being the most challenged. When you go over to the infrastructure, I think here, there is a good momentum. This is high in demand. They are big projects. There's a lot of renovation money is still flowing. Now independent of the German complexity and release of money, I think here, it's a fair bet that this segment will provide local currency growth above the others, probably even organic positive growth as there are a lot of activities in this segment. Similar to the automotive and industry sector, the industry is not really booming. I think we have to expect that also the China production build rates will reduce. Heavy incentives have been running out on the e-mobility. But when we look at the total markets, we expect probably slight declines in Europe and in North America when it comes to build rates, but the very strong new book sales and the incremental activity, as I mentioned, also in China makes us confident that this segment will also similar to infrastructure contribute. On the commercial section, here, I mean, we have the big outlier that's the data center. That's a key contributor that is offsetting many other segments of the commercial construction, but not all of them. There, it's probably to say this is somewhere in between the residential and the other 2 segments. In this regards, we see still some hesitation to put down big investments still driven by uncertainties on where to place factory. The money, the projects, as I always mentioned, is actually available. The projects are ready, but I think we still haven't yet enough clarity on how the new supply chain setup will look like given the changes that occur currently. So this is probably the area where we have some mixed impact. Alessandro Foletti: Just one follow-up, then I pass on the mic. On China, you mentioned, I think, in the slide that the market was down 45%. And then I think, Adrian, you said you were down 18%. Is that correct? Thomas Hasler: Yes, 45% is just -- within 2 years, we talk here about the new build, the new consumed, not the empty apartment, we talk about the apartment space that has been occupied by new owners that has reduced by 45% with an acceleration in the second -- in '25. So in '25 on itself, it's roughly 20%, 25% decline. Alessandro Foletti: Of the relevant residential market in China, only residential. Thomas Hasler: Yes. Alessandro Foletti: And you were down 18%. Thomas Hasler: Yes. Alessandro Foletti: And of this 18%, how much is self-induced by reducing prices and reducing point of sales, et cetera? Thomas Hasler: Yes. We rebased our business focusing on margin protection, on quality, and that is part of the 18% decline. Dominik Slappnig: Thank you. And next question goes just to the neighbor here, Yannik Ryf of Zurcher. Yannik Ryf: The first question is about data centers. You mentioned it a couple of times in your slides. I mean, how large is your exposure right now there? How much of total revenue? What do you think -- how large you can get? So that is the first question. And the second question is more towards capital allocation. I mean, under which circumstances would you consider a share buyback? I mean, if you look today at your share price, do you think you will generate higher returns with those bolt-on acquisitions than doing a share buyback? Thomas Hasler: Okay. I'll take the first question as data center contribution to the group is quite significant. It has increased from a low single digit to a mid-single-digit contribution in the Americas is even reaching almost a double-digit contribution. It is a momentum that we want to take advantage of as we see that this boom in data center will probably last another couple of years and will probably then also be followed by a boom for energy infrastructure, which is foreseeable as a follow-up to this massive capacity that is built globally that the consumed energy needs to be kind of available and deployed close to those data centers. Adrian Widmer: I guess on -- here the capital allocation and the share buyback specifically, I mean, I sort of laid out here the elements and also the priority. And if you do look and we look at this really from a return perspective on the bolt-ons, we can clearly demonstrate here that strong returns actually superior here even at this level, but this is a constant reevaluation we do because at the end of the day, it is driven by sort of the most effective use of capital. Dominik Slappnig: There is a question from Remo Rosenau, Helvetische Bank. Remo Rosenau: On your guidance of 1% to 4% growth in local currencies, which includes acquisitions. The acquisition contribution will most likely be higher this year than last year. You made 2 quite relatively larger deals in January and one is not closed yet, but still it's almost CHF 300 million. You have spillovers from last year's 7 acquisitions. So the acquisition effect could well be around 3% in '26. So this 1% to 4% then translate into an organic growth of minus 2% to plus 1%, which seems not very high. Adrian Widmer: Maybe here quickly on the sort of the M&A contribution here, and you mentioned the transactions. I mean the one in Turkey is unlikely to close before the third quarter. So I would say sort of currently in that sense, in the bag, if you assume closing at that point is roughly 1.5%. There is not that much spillover. But of course, that is the element that we have currently here on going. Remo Rosenau: Okay. So in your calculations, you have 1.5%. Okay. Fair enough. Then the impairment, I think CHF 21.8 million was in the fourth quarter due to Fast Forward. In the full year, it was almost CHF 30 million, however, it's not a big number, but what is the difference then? Adrian Widmer: It's just not related to the program. That is the only difference. It's smaller machinery impairments in other places. Remo Rosenau: Okay. And then on this peer comparison you did in order to demonstrate that you made -- that you are doing better than your peers. Do you have a list which peers you have taken there because it was not in the presentation? Thomas Hasler: We do have the list. This is the list that is in the annual report. These are the [indiscernible] peers. And out of those roughly 25, we selected the ones that are closest to our business. So it's roughly 10 out of them are in our peer comparison. It is also important that we have, let's say, reported figures that are related to our business. So this is a selection of 10. Remo Rosenau: And the big group is available in the annual report. Thomas Hasler: But this is -- I mean, this is part of the total list. Dominik Slappnig: Next question goes back here on this side again to Patrick Rafaisz from UBS. Patrick Rafaisz: Two or three questions. The first one would be on the guidance, right? You already described that H1 will be challenging then hopefully a more dynamic H2. Just wondering how would you define then the organic outlook for H1 and Q1? I'm trying to understand how much catch-up you need in the second half to get to the range. Thomas Hasler: It's a fair point. I mean we expect that given also the elements from the prior year where we had a strong start in the Americas, especially in the U.S., where we had also, let's say, the rebasing in China not yet taken place. So our assumption is that we are going to see organic negative growth in the first half, more pronounced probably in Q1 than in Q2. But that's then going to turn into positive in Q3 and Q4 given also -- the comp base will be different -- quite different in the second half. Patrick Rafaisz: That's very helpful. And then also on the guidance and targets, I think a sensible move to abandon the 20% that was originally formulated, right, putting it into a range. But still, right, if we maintain the midterm plan with the 20% to 23%, is this just pushed out by 1 year? Because I remember in November, we discussed that the Fast Forward program was being implemented in order to safeguard the 20%, right, in the absence of operating leverage. So -- but probably negative leverage was worse. China on top, right, deteriorated. But yes, can you update us on the time line for the 20%? Thomas Hasler: I think you got it. I mean in Q4, with the events in Q4, we had a more pronounced negative leverage than anticipated, which we also have to consider since the market has fundamentally not turned over new year so that we are here also safely advised to consider still, let's say, some negative operating leverage, even though we have, I think, means in the pocket that are able to offset some of that, but not all of that. That's why we also look at the range from 19.5% to 20% as being a range that is incorporating still some negative leverage, which would -- if you go to the upper side of the guidance, of course, reduce and bring us close to the 20%. And looking further out, I think this momentum of generating efficiency and generate synergies across the organization, structural savings will continue. And we also expect that this negative leverage that we still anticipate for '26 will also reduce or even turn into a positive in the years to come. So the likelihood, our commitment to the range in the midterm is strong. Patrick Rafaisz: So -- but the way I read this is that you remain committed to '28, but you wouldn't say today already that '27 will be a 20% for sure. Thomas Hasler: It is too early. I can't say what the markets are going to do. I think we have learned the lessons lately announcements about what happens in the Middle East. This is just another year where a lot of confusion comes around. And I can't say how '27 will turn out. Indications I get from my visit to China is that probably '27 could be a turning point in the residential market in China could. I think also when I look at all the activities that are lined up, there could be a tremendous uptick. We see this as a cycle, a short-term cycle. But how long this cycle lasts is really something we have to be cautious in making here predictions and statements. Our outperformance of the market, that's to me the substantial element that we need to focus on and then be a bit more hesitant in making here guidance for the global economical evolution. Patrick Rafaisz: And a very quick one on the one-offs. Maybe I missed it in the annual report, but did you provide a distribution across the regions or the segments of the CHF 86 million? Adrian Widmer: We didn't provide details here in the annual report. In terms of the one-off, it's roughly CHF 30 million each in EMEA and the Americas, CHF 15 million to CHF 20 million in Asia Pacific and on corporate level between CHF 5 million and CHF 10 million. Dominik Slappnig: Thank you, Patrick. And then let's move to the vertical attendancy. We have here Ben Rada Martin from Goldman Sachs, who will basically start with the first question. Benjamin Rada Martin: My first was just on APAC margins. The margin of the region dropped from 21% 2024 to 18% 2025. I guess post the program changes, is it right to think that there's a path for that -- the region to return back to 20% EBITDA margins? And my second would just be on working capital. Great to see some success there in improvements in 2025 back down to 18% of sales. Is there scope for further improvements there? Or is that the right level of efficiency when we think about working capital? Adrian Widmer: Yes. Happy to take the 2 questions here. Yes, on the margin, there is a path. Obviously, we talked about the impact on China also fast forward well progressing, also refocusing here on the business. And obviously, China is having an impact here, but also making progress in other markets. That's the clear ambition on Asia Pacific margins. On working capital, yes, I do believe there is more scope also here structurally in terms of efficiency on, let's say, the warehousing, the supply chain side, a continued focus here on receivable collection and management, but also structurally working on the payables, I would say, sort of a stepwise further improvement is clearly targeted. Dominik Slappnig: Perfect. And the next one -- the next question goes to Arnaud Lehmann from Bank of America. Arnaud Lehmann: I hope you can hear me. It's Arnaud here. I have 3 questions, if I may. Firstly, on China, it peaked at 11% of sales. I think it's going to be about 9% of sales now. Do you have a level after restructuring how it could look like in terms of contribution? Is it going to be 5%, 6% of sales once you conclude your restructuring and considering the ongoing pressure in the market? That's my first question. My second question is on the price cost outlook. We're seeing some raw materials related to oil and naphtha recovering this year. Are you planning some price increases to offset that? And lastly, you highlighted adhesives as a particular area of interest. Obviously, you've announced the Akkim acquisition. Do you plan to do more acquisitions in the adhesive space? Thomas Hasler: Okay. Thank you, Arnaud. I take the first and the third question. And talking about China, of course, naturally, with the action taken, our roughly 10%, 11% contribution from China short term will be reduced to 9%, 8%. Please also consider that in China, we have the growing automotive industry business helping to offset. So I don't anticipate a decline further down, but it will be a high single-digit contribution. And once also then the residential market is returning to growth, probably still be somewhere at the same level as before. So here, the China contribution is for us very relevant. Our China business in China is healthy, is profitable. And it is also the base for us to expand with the Chinese players outside of China. And here, not only the automotive manufacturers that are building factories around the globe, but also the Chinese main contractor that go abroad and that become main contractor on large projects in Southeast Asia, Middle East, Africa. And just as an implication, this Abu Dhabi airport is in the hands of a Chinese main contractor. And you need access to the main contractor. And if you are not with them in China, you are at a strategic disadvantage as you don't have the relation to the decision-makers. Of course, you need a local presence in UAE to capture on those. But so the China, let's say, aspect is for us of long-term strategic relevance to have a good representation and of course, also grow with the Chinese player as they take more share of the global economy going forward, similar to what we have seen in the '90s, '80s, the Japanese, the Koreans, this is just following the nature of the most competitive players in the market. And then your last question... Adrian Widmer: Sealing and bonding acquisition? Thomas Hasler: Sealing and bonding acquisition, yes. I mean this -- of course, we like the Adhesive segment, and we highlighted it, but it is one aspect of many that we consider. And as I outlined, our selection process for the prospects and then ultimately advancing has many more aspects in there. And if we have a choice, then we certainly provide preferences. But in this regards, this has been a fantastic prospect that is now coming to realization. It is not a signal that the next 5 transactions will be in adhesives and sealants. We look where we do have the best return, where we have the best opportunities to make those bolt-ons accretive and value enhancing. And therefore, we don't exclude any of our technologies nor any of the target markets. Adrian Widmer: Maybe then on the question as to price/cost spread. I mean, on the input cost here, I mean, you mentioned oil price, but of course, it's also quite volatile. Typically, our base case is rather flattish development, but particularly also given geopolitical events can have an impact here also in regards to, let's say, capacity and utilization. But broadly speaking, at least for the next few months. That would be our expectation. As to pricing, we will continue to value sell. We will, of course, also continue to manage input cost increases. In China, we have seen quite a deflationary environment in '25. It's probably going to stay a bit longer, not the same magnitude, but expecting here some price impact in other parts of the world. So slightly positive all in all for '26. Dominik Slappnig: Okay. Two more questions from vertical attendance. This is Pujarini Ghosh, first one from Bernstein. And then we come back and have a final round of questions here for the room. Pujarini Ghosh: So I have a few. So could you provide an update on your Fast Forward program? How has it been progressing in the first few months? So basically in terms of the headcount reduction, the capacity optimization in China? And then also how are you progressing on the digital investments and the benefits that we were expecting for 2026. So my second question is on the margin guidance. And could you potentially talk through the puts and takes for going from the 18.4% margin in 2025 to the guidance of 19.5% to 20% in 2026? And my last question is on the material margin. So you always maintained it in a very close range of 54% to 55%, but it has been steadily increasing. So how should we think about the progress in future? Thomas Hasler: Okay. Thank you. I'll answer the first question, the Fast Forward question. Of course, this is a program that is not over in a couple of weeks. It has many elements to it. We are in the middle of the cost implementation -- cost-saving implementation, especially with a strong focus on China, also in consolidating the footprint in China. This is all considered into our '25, let's say, cost accrual, the execution, also the closing and transfer of capacity is something that needs to be well managed and is taking place now in the first few months of this year. So this is progressing. Front-loaded activities and again, in China has been the fundamental, let's say, change in the approach to the market. We have implemented a more agile, a more granular sales approach. We have reduced from 7 layers to 4 layers in making sure that we capture the opportunities in the various provinces, cities with smaller sales team that are also with smart incentives guided away from the former, let's say, top line growth incentives that have been very successful during many years. So here, these things have been implemented. These things are active as we speak, but the more structural elements by the nature of it takes more time. Also outside of China, the elements where also headcount reduction have been included require time to transfer responsibility, but also to respect the legal requirements in regards to union contracts and notice period. So this is still ongoing in the first month of the year, but will then cease and be completed in Q2 of '26. Adrian Widmer: Good. Then specifically on your sort of margin -- or margin bridge question. Yes, clearly, in '25, I mean, Fast Forward the onetime cost, CHF 86 million in EBITDA did have here an impact. So the starting point will be rather at 19.2%. It will also mean that we have here a structurally lower cost base. So we're expecting about 60, 70 basis points of contribution in '26 from Fast Forward. We'll have a smaller incremental element still coming from MBCC acquisition. The synergies, 20 to 30 basis points. The new bolt-ons should be sort of rather insignificant in terms of the dilution. In terms of material margin, and this is a bit connected to your last question here. As I was referring to the underlying input cost development and here, a slightly incremental pricing impact also here, a slight potential to increase, although we're sitting here, as you commented, at the upper end of sort of the broad guidance range, but this is not obviously carved in stone. And then last, we have the leverage piece. And here, this is clearly related to the top line fixed cost leverage. If we're at the lower end of the sales guidance, 1%, this will most likely mean sort of a similar type of negative leverage as in '25 as opposed to the upper range where clearly, this would be lower and be commensurate with closer to 20% overall EBITDA. Dominik Slappnig: Okay. Thank you very much. So let's come back. I see there is one last question that we have from virtual. This is Vitushan from Baader Bank. Please come up with your question. Vitushan Vijayakumar: It is clear that the U.S. shut for [indiscernible] '25, notably in the fourth quarter. So however, according to what I understood, most of the projects have been postponed and canceled. Thereby, I was wondering if you have further information on this. I mean this is clear that if the projects have been postponed, there is a big chance for them to materialize in the future. So I wanted to know if you have any further visibility on those, please? Thomas Hasler: Okay. I think that's a fair question. And to be clear, I mean, the government shutdown hasn't put those projects at risk or changed the mind of the owners. It has delayed the implementation of the projects. And therefore, fundamentally, these projects are going into execution just with a certain delay because also after the shutdown until this backlog is then reestablished, it takes a bit of time. But it's not that these activities due to the shutdown would have been, let's say, now canceled. Dominik Slappnig: So excellent. Thank you very much. So before I give it back to Thomas, let's do a last round here in the audience and the question goes out here on this hand side, please. First one. Tsitsi Griffiths: I'm Tsitsi Griffiths from Federated Hermes. I have 2 questions. You talked a lot about digital transformation and innovation, but there wasn't a lot of talk about how you're using AI or leveraging -- we're seeing increased opportunities for using artificial intelligence. So could you expand on that and talk about how you see that affecting your position in innovation and digital transformation. The second question relates to the confirmed targets for sustainability, and it was great to see the performance on your Scope 1 and 2 emissions as well as your water disposal. We've seen quite a few companies in this sector cite a lot of challenges, including high energy prices, unfavorable public policy. We've also seen just general reduction in investment. So it would be good for you to expand on if these factors have weighed in, in your reconfirmation of your sustainability targets, especially in particular to your climate targets as well. Thomas Hasler: Good. I think we are going to communicate over the course of the year much more on our digital transformation as this is the investment part of the Fast forward that makes us most excited at this structurally changing, let's say, our competitive ability in the market. Most pronounced and most advanced is our ability to work on the innovation side. We have our 16 global technology centers, which in the past used to make their experiments stand-alone and shared outcome, shared fantastic innovation in forms of product formulations. With AI enhanced tool, we have now the possibility to actually select every single data point of an experiment and put it into the data lake so that every, let's say, effect on experiment level can be utilized for then other experiments and shortening the development cycle, at the same time, also catching effects, which may on the original purpose of an experiment not have been a target, but could be a target in another prospect. So this availability that everything that in the 1,800 chemists go on when they every day make tests and verify, they have a clear target on what they want to achieve. But this system, this centralized system is now collecting all the data that are constantly generated and then they can be, let's say, utilized for different purposes for saying, okay, I need this effect. I have a substrate. I need to bond to this substrate and where shall I start? And this can then trigger into this massive information that is available to say here have been experiments and you can dial in and you can shortcut massively development time and enhance also the scientists with, let's say, initial staff basis where they otherwise would start at scratch and try to compare through the traditional way in looking into products and innovation that have been established. This is very tangible. This is ramping up. We have here a very strong, let's say, innovation culture in the traditional R&D enhanced with data scientists that are kind of pairing themselves with the, let's say, the nature scientists, and this is having great traction. And we will come back on that as this is constantly evolving. But this is one of the 3 major transformative elements. The others are on supply chain excellence, ease of doing business, being able to bring the customer the value instantly where needed and shortcutting traditional ways of having inventory through several steps rather bringing it to where it is consumed, which is the construction side at a given time at a given slot and allowing so also that efficiency for our customers is increasing, net working capital is decreasing. These are things on the supply chain, on the automation of our process inside and towards the customer. And ultimately, the sales excellence, so the interaction with our customer, also having much more, let's say, outside in, inside out information to also bring more leads and possibilities to our customer by having all this, let's say, access into the market data and also show the relevance where they probably have the best possibility together with us to win business for them. So it is an incremental sales aspect instead of waiting for the customer to come to us actually also utilizing our capabilities to bring business to the customer. And these are elements that we are working on. This is in the making. It requires a strong foundation, a strong harmonized database that we also have part of our investments going into establishing the lake, which then becomes then for the machines and for the tools that we want to utilize then the base. But it is fantastic. We have a market-leading position across the globe, across the technology, across all the segments. We have the strongest inside data lake at hand, and we want to utilize that. And then empower that with external information, which makes it unique towards the market, the value we can provide to our stakeholders, not only contractors, but also architects, specifiers still living in an ever-growing complexity world, and this is decomplexizing the world for them. Tsitsi Griffiths: And then just a bit on the challenges around your sustainability targets. Thomas Hasler: Here, I think it's a fundamental difference between us as we are not energy heavy. We are not, let's say, upstream. We are not on the heavy side. Our own energy consumption, as you have seen, we can steer that quite nicely. Our Scope 3 challenge is a challenge that we actively address with our suppliers as this is the input there. We have it in our hands also to extend the life of our products and therefore, also improve the Scope 3, which is also, of course, the value for the customer. The longer it lasts, the better, the less renovation, the less running cost, a very strong aspect in the ROI evaluation of our customer. And therefore, for us, whatever you see eventually happening at other companies that are scaling back for us actually it's full steam in because it is accretive, it's performance enhancing, and it is also very relevant for our customers. Dominik Slappnig: Okay. Last question, I'll be conscious of our time goes to Martin Flueckiger from Kepler Cheuvreux. Martin Flueckiger: I've got 3 actually. First one is on data centers. You've been -- Thomas has been raving about data center growth. And I was just wondering whether you could put your money where your mouth is and basically reveal what kind of growth you've seen in data centers in the U.S. in 2025 organically? And what kind of outlook you're foreseeing in this market for 2026? That's my first question. Then my second question is on -- I guess that's for Adrian. It's on the margin bridge again. Just wondering at current spot rates, what kind of headwind from FX do you expect for 2026? I'm not asking you to predict currency movements, just on current spot rates, what you're seeing there and what kind of nonmaterial cost inflation you think is a reasonable assumption for this year? And then my final question is on your statement with regards to expected market decline in 2026. Just curious about how you define that market. Are you talking about global construction output growth or decline? Are you talking about construction chemicals? And if it is the latter, are you talking about the global market as such? Or do you sales weight it according to your own exposures? Thomas Hasler: Okay. I take the data center question. As you say, I'm excited it is a strong contributor on the commercial segment, not only in the U.S. but across the board. It has a strong double-digit increase over the years consistently, and we expect also in '26 that this will double-digit grow on that side. That's in particular on the roofing side, on the flooring side, waterproofing side, sealant side, all these aspects play here. So this is one of the, let's say, growth engines of our U.S. business. It's very significant. And therefore, it's also creeping up in relevance of the total share of our U.S. business. Adrian Widmer: Then on your crystal ball question here in terms of exchange rates, of course, and you said it, it's difficult to predict. But let's say, at current prevailing rates, we're basically looking at sort of around 3% to 4% negative foreign exchange impact as a best guess. But of course, this is quite volatile. In terms of overall inflation, the overall expectation would be to come down to let's say, below the 3%. Obviously, on the wage side, we had a bit more than 3% still in '25. But here, I would assume there is going to be rather a bit of a reduction. So probably around 2.5% in terms of overall inflation. On, let's say, your market question, and this here, obviously, we are operating in many different markets in many different segments. It is what we would consider sort of our addressable market, not specifically sales weighted, although there is a China element in and it's really looking at sort of the most relevant indicators, which may also vary sort of across here the business. So it's an estimation overall, which we're seeing here and which this number is based on. Martin Flueckiger: Okay. But just to clarify, my question regarding FX and nonmaterial cost inflation headwinds were not related to impact on sales growth. I was just wondering, based on the chart that you've shown in your presentation for the EBITDA bridge, whether you could put those bps down to those 2 drivers roughly? Adrian Widmer: And here, we -- I was showing it's roughly sort of a 20 basis points of additional impact. It was more on the OpEx side, actually not so much on the raw material with the expectation of FX to be not quite as severe. I would also see here that this is rather smaller, if any. I mean, we have overall quite a strong natural hedge in terms of cost base being where we sell. So from an effect on top of translation, I would rather see this as a minor impact for '26. Dominik Slappnig: Okay. Thank you very much for all of your questions. And with this, I'm heading back to Thomas for a final remark. Thomas Hasler: Good. Thank you very much. I hope you enjoyed the last 2.5 hours and the insights that we provided the granularity and question answered. We are very confident about '26. We don't want to talk so much about the markets as we cannot influence. We can influence many things, but not the market and not the FX. We took decisive actions last year to enable us to outperform the markets also going forward significantly our peers. We like the comparison. We are competitive, but we also see that our organization is moving ahead and gaining market share as a key element also the name of the game in 2026, driven by innovation, driven by incremental value for our customers, for the stakeholders, taking pain out of their let's say, daily life. That's where we are best in. And at the same time, making sure that we are also benefiting and also our shareholders are benefiting by increased margins as we grow our business in the market. With that, I close our session here, but I would like to invite for all those that are here present and to join us for a quick small lunch, and we can continue to chat. And for those that are virtual, I thank you for participating, and I wish you a nice weekend and see you sometime somewhere in the near future. Thank you.
Gustaf Meyer: Hi, everyone, and welcome to Redeye and today's interview with the CEO of Senzime, Philip Siberg. Welcome, Philip. Philip Siberg: Thank you. Nice to be here. Gustaf Meyer: Earlier today, you released your Q4 report, and we also have some investor questions. But first, maybe we can have like a broad question at first. If you talk about the sales, SEK 28.3 million during the fourth quarter. You also installed 416 new TetraGraphs systems. How would you summarize the quarter and also, of course, the full year of 2025? Philip Siberg: So Q4 was pretty good. We doubled the business more than that. I had probably expected more. So a little bit came in, in January. It's always hard to define these closings of large hospital systems. But all in all, I think we had another strong year. We delivered according to our messaging and our guidance. We're continuing to strengthen our market position, and we're seeing a continued very fast conversion to our technology. And it's interesting to see as well that it's not just U.S. now that we -- in the Q4, we had strong uptake in Asia and European market as well. Gustaf Meyer: And you mentioned the timing there. But if we look at the number of new installed systems, 416, if you compare that to Q2 2025 and also to Q3, it's a bit lower. But that also depends on how many upgrades you have been doing during the quarter. So maybe you can elaborate on that. And yes. Philip Siberg: Yes. So I mean, during 2025, we definitely had a few U.S. accounts specifically who decided to upgrade from the previous classic TetraGraph to our new next generation. The response has been very positive. And as I presented, the utilization rate has spiked up significantly among these accounts and seeing across the line over 50% uptick in usage. So there were a few hundred devices last year, I think predominantly during the spring and summer that were upgrade deals, while during the fall, it was more normal deliveries. I think it -- I mean, the number of monitors varies a little bit quarter-to-quarter, just depending on when the contracts come in. And as I mentioned, just we had some major contracts come in, in January instead of closing in December. December and Q4 is specifically in the U.S., a tricky quarter. It's Thanksgiving, it's holiday season, and it's hard to push purchasing and contracting to close with the same urgency as we want as a company. Gustaf Meyer: Great. And if we look at the full year, the total sales or the reported total sales came in a bit lower than your guidance of SEK 110 million to SEK 140 million. However, if we look at the fixed currencies, you reached that target. Of course, one of the reasons is the weakened dollar. Are there any other reasons why you're in the lower end of this guidance if we look at fixed currencies? Philip Siberg: Yes. Thanks for good summary. Definitely, the dollar and the euro affected us top line-wise. We had expected regulatory processes in Japan and South Korea to move faster than they did. So we had expected for the year to start delivering great volumes of next-generation TetraGraphs into these regions. We did get the regulatory PMDA approval in Japan in December. So we had our first shipments there. And Korea is still in the process and should happen mid- to late 2026. So once that is in place, I foresee continued strong growth there. So that -- and uncertainties in some of these deals when they come in or not, I think it was really the currency effects and just delayed regulatory processes beyond our control. Gustaf Meyer: Maybe we can also focus a bit on the South Korean market because I saw your presentation earlier today, and you showed a really nice graph about the usage rate in South Korea, and it has increased a lot. What are the main reasons for this? Philip Siberg: So I think it's -- South Korea is an interesting early adopter, fast-moving market, likes technology. We came in there a couple of years ago with a strong partner. We've been kind of methodically working to develop it, and now we're really seeing the results from it. I would say that we have a strong market position by now. Our local partner is successful in their business model. I'm just seeing that the conversion to EMG is now kind of double-digit conversion. So moving very fast. And there is a little bit of reimbursement available in the local market, which we believe is going to increase as well as come into the Japanese market. So those are some of the driving factors. But I think that it showcases as an example of how we can develop markets once we're in there and working methodically, you can get to these types of utilization rates, which is in line with our long-term plans. Gustaf Meyer: Great. If we move on, also talk about the costs. OpEx increased a bit during Q4 if compared to, for example, Q3. Maybe you can add some color to that. Philip Siberg: It did. I mean Q4 is always a more expensive quarter. We have a lot of marketing events. We always have our big congresses happening. And there's always a little bit of an extra boost in terms of sales expenses and commissions. But we did have roughly SEK 4 million to SEK 5 million that were, I would say, onetime effects in the fourth quarter. I did not separately report these as onetime effects, but they were certain expenses that we incurred that we took in Q4. So I think it's -- as we look ahead for 2026 and this year, we're anticipating a flat to decreased operating expense level for this year. Gustaf Meyer: And when you have that guidance, does that include the one-offs in Q4? Philip Siberg: So the one-offs are not supposed to happen again in 2026. So that's why I foresee an operating expense level, which is lower than what we had in 2025. Gustaf Meyer: Great. Also in the report, you had this inventory write-down in the cost of goods sold. What is the reason behind this? Philip Siberg: Yes. So the reason -- I mean, we've had the TetraGraph Classic on the market for a couple of years. And then as most of you know, we introduced the next generation just over a year ago. That platform has been extremely well received. We're seeing increased uptick in usage. So we decided here strategically that we want to carefully start end-of-lifing the classic because of the superiority of the NextGen platform and really the focus that we're doing it. So we decided to make a write-off of some of the older raw material and kind of components related to it and decided to take it in the '25 books. We're still going to remain with the product in the market. We need to have it for 7 years as part of regulatory requirements, but really pushing out the NextGen at a higher price point this year and continue to drive up utilization rates. Gustaf Meyer: Because if we look into 2026, first of all, maybe what trends do you currently see? And also in the report, you have the guidance that you expect growth to be at the same level as in previous years and also you expect to become cash flow positive during Q4 this year. Yes, maybe you can just summarize your overall expectations and also how will you -- what will you do and what actions will you make to reach this target? Philip Siberg: Yes. I think the -- I mean, the headwinds of our business and the tailwinds, sorry, continue to be strong. I mean there's a continued very strong underlying macro effect for neuromuscular monitoring in general, more and more guidelines coming out, more and more data supporting the conversion. I would say that the EMG technology that we are spearheading has certainly taken over as the new gold standard. But it's -- you don't convert large hospital systems overnight, but I think we're winning after winning, and we're really making our success story here. So as I look into this year, we're foreseeing continued growth in all our markets. We're foreseeing continued increase in utilization and using of sensors. And how we do that is work very tightly with our customers. We have a dedicated clinical team that helps to educate, helps to create standardization protocols. We're very methodical in the way we choose our customers. So we make sure that wherever we sell and that we install, there is a clear long-term uptick and usage trend among our customers. I mean we've seen published papers come out looking at other technologies on the market, other similar types of products. And when you don't have that kind of support that we offer, then the usage rates are very poor. So that's part of our mission to have the science, have the team and have the technology to really drive up usage. Gustaf Meyer: Interesting. Also, this morning, you also announced that you have secured a SEK 50 million credit facility. What are the reasons behind this? Philip Siberg: Yes. So we -- I mean, as part of being a fast-growing company, you have -- we have a working capital needs here. We partly need to -- the expectations from our customers are very fast deliveries. So we're kind of tying up a fair amount of capital in inventory, et cetera. And what we wanted to kind of show and have is just the security as we continue to grow that we have this kind of a credit line. So as we have peaks in working capital needs throughout the next 18 months, 24 months, we have the ability to kind of draw that money. And I've been clear to the market before that we're not expecting to do any rights issues or capital raises from equity rather we're funding this company now based on our customers, but also having a little bit of -- we're growing up as a company. I think it's a strong vote of confidence showing that we have a bank and a credit facility to continue to grow this company. And again, this is fair market terms. There are no special covenants or other types of dilutive instruments tied to this. So it more gives the company an assurance to continue to grow in the path we're on. Gustaf Meyer: And also, I guess that this could be related to actually one of the questions that we got from an investor. If you could -- yes, you have talked about introducing a new business model. What is that -- what kind of business model is this? Philip Siberg: Yes. So we're -- I mean, we're seeing that -- I mean, if you look at reference case, Intuitive and the da Vinci robots, I mean, probably the most successful medical device company out there. A big part of their business case has been to do different types of robotics as a service. And we've just seen that there's been a customer demand among hospitals to offer if we could have the TetraGraph as a service offering where you link it to usage rates of disposables. So what we've introduced is a Tetragraph as a service business model. We then offer the monitors on a placement type of agreement. We get a premium pricing for the sensors. We link it to various types of agreements around this. And what we've seen is that the sales cycle reduces about 50% in time because the hospital is no longer relying on burdensome capital processes. So this makes it easier to rapidly deploy into large accounts. We won a number of these deals. It ties up a little bit more working capital or CapEx for us because we own the instruments, the monitors. But the upside of this is that we're getting a significant premium on the sensors. So the return on investment of this is very short and long term, it drives up gross margin and ultimately revenues and earnings. Gustaf Meyer: But just to clarify, this is only in the U.S., right? Philip Siberg: This is the U.S. only. Gustaf Meyer: Yes. But if you look into 2026 then, how many of your new customers do you expect to have this updated business model and... Philip Siberg: Yes, it's hard to say exactly the split. I mean there's definitely a lot of interest among hospitals, but hospitals also are very clear on their strategies. Some simply want to do capital purchases. They want to own the goods. Some of our best customers in the U.S., we have placement agreements with, where we tie usage of the device and secure revenues from that. But this is a third business model where we provide it as a service. But I think that we're going to see a large part of our -- a significant part of our business this year in the U.S. is going to be that. And we've already signed two important deals very fast this year. So I think it's going to help to drive business. Gustaf Meyer: Interesting. Also, another question from an investor was about the manufacturing of the system and also the sensors. Could you elaborate a bit more on the manufacturing location and also components and so on? Where do they come from? Philip Siberg: Yes. So we're Uppsala based. We have a strategy. We produce all the monitors here in-house. I try to drive a very church tower principle, meaning that I want to see my suppliers. I want them to be local because we drive a very sustainable business model in the production where ISO 14001. We are connected to the UN Global Compact. So it's all about making sustainable production. So we produce it in-house. We have the capacity here for the next 5 years to meet the business plan in the current setup. The disposables, we are the legal manufacturer as well, but we produce them together with partners. And we are shifting all our kind of sub-supplies and base manufacturing from Asia to Europe. So we're really localizing this to be a European, Scandinavian manufacturing process. Gustaf Meyer: Many of the investor questions have already been discussed in previous questions during this interview, but we also got a question about if you could give an update on the patent situation? Philip Siberg: Yes. So we continue to invest and really drive innovation and science in the market we are in. We currently have 107 patents approved for our portfolio. We filed 8 new patents in 2025. So really driving field and coming out with new innovations. And I've shared before, what we're doing here is we're continuously coming out with a new feature set and more and more becoming a software company where we're providing -- since we're pulling in so much data from our users, we can use that data to further train, innovate, come out with new feature sets. So our customers can always be assured that they have the latest science and features and benefits of the technology that we have. So a customer of Senzime is not just buying a onetime device. They're buying a 7-year cycle of significant new feature sets coming out that will ultimately drive patient outcomes. Gustaf Meyer: Great. Maybe just the last question here because we haven't talked about that yet, if there are any other Senzime products that are in development? Philip Siberg: There is always a lot of exciting things in development. So keep your eye out. We're going to come out with more things this year. And this is I would say, solutions and products that are adjacent to what we're doing today to help drive up usage rates to make it more universally connectable. Remember that probably 99% of all our monitors today are connected to electronic health records and external monitors. So it needs to be universally connectable to any system and transmit data. But there's more in the pipeline, and there is more in our research lab that we have in the long-term road map, including further development of the RMI ExSpiron technology that we also have in-house. And there are exciting things that are to come. I will get back when that is ready. Gustaf Meyer: And I guess that we all look forward to that. Thank you very much, Philip, for this interview. Philip Siberg: Thank you very much.
Francois Michel: Hello, everyone, and thank you for being here today with us in Paris and also online. I'm, of course, very pleased to meet you all for the first time, and I look forward to having many more interactions with you and with the financial community at large. Today, here with Thierry Hochoa, who is GTT CFO, we will be presenting our financial results for 2025. And Karim Chapot, who is our Senior VP for Technology, will also come on stage to talk about our technologies. Karim has been in GTT for nearly 3 decades. The other members of the Executive Committee are here with us today, and we are all available at the end of this presentation to answer any questions you may have. So the agenda for today is the usual one. I will start by sharing the 2025 key highlights. Then together with Karim, we will give you an update on our technologies and solutions and our innovation strategy. I will then walk you through the market update. Thierry will cover our 2025 financial performance, and I will conclude this presentation with the usual guidance and some key takeaways before opening the floor to your questions. So to start -- I will start with a couple of personal and very important comments on how I see GTT. GTT is a unique company by many, many aspects. And I find it after a couple of weeks in my role, very impressive, even more impressive than what I thought it was. We have a unique technology and expertise which sits at the core of the LNG global value chain. Our expertise is unmatched, and it relies on a very long, very long solid track record of 60 years. There is, of course, in the company, a large number of talents of very competent staff experts and a good combination of IP and skills. It's not only formal IP, it's a lot of skills in the trade. And all of this makes it a very strong basis to create value, which -- in a sustainable fashion, which the company has done successfully in the past and which I can assure you will continue in a very solid, very sustainable manner in the future. I wanted to make this point is something that I do believe fundamentally. That's also why I joined this company. And it is also a belief that is shared amongst our staff and employees. So it's the core DNA of the company. Now key figures. So I'm also very proud to announce that 2025 has been a historical year for GTT. You have seen the release. We have seen a very significant increase both in revenue and in EBITDA, reaching record high levels for the third consecutive year. Our revenue has increased to EUR 803 million or plus 25% year-on-year. Our EBITDA has increased to EUR 542 million, which is plus 40% year-on-year. Our net result has also increased markedly to EUR 414 million. And this has led the Board to propose a dividend of EUR 8.94 per share, which is in line with GTT's constant commitment since the IPO. We continue to provide also a good visibility on the activity of the company. At the end of '25, the order book of GTT is solid. It stands at EUR 1.6 billion. Now regarding the key highlights, and this slide is very important in the presentation. And I start with the core business, which is the membrane containment solutions. The year 2025 was extremely positive in many aspects, but it was singular also. Why? Because the first part of the year, and you see this clearly in the chart -- on the chart on the right, was impacted by very important geopolitical tensions, notably between the U.S. and China. Of course, the discussions on tariffs weighted a lot on the decisions from shipowners to place new orders. And so we saw a moderate order intake well until Q3 and even with a through in Q2, only LNGC was ordered in Q2. It is temporary, but it is as it is. And so what is positive at the end is that the momentum picked up in Q4. You see we have registered 18 LNGC orders in Q4 alone, which is almost as much as the 19 that we have had during the first 9 months of the year. And I can assure you that the momentum continues in '26. We are seeing a very high level of activity of commercial activity. Since the beginning of the year, we have announced 14 LNGC orders since January so far in '26, and we expect many, many more to come quickly. So this temporary slowdown, in fact, is counterbalanced for us by a very high level of activity that has picked up after the end of Q3. And this dynamic is quite similar, was quite similar for FIDs. If you look at the FIDs for new liquefaction trains, in fact, we saw a somewhat moderate start of the year overall and a clear acceleration in the second part in the second half of the year. We could have put the chart here. And overall, '25 was a record year for the decisions to -- final investment decisions for LNG trains with a record level of 84 million tonnes per annum, of which 62 million in the U.S.A. alone. We estimate that these FIDs announced last year will translate into additional needs for new LNGC vessels, representing roughly 150 additional vessels. And so of course, as a consequence, we are confident about the fact that the our order entry -- the level of activity or commercial activity, the order entry will be dynamic, will be good in the quarters to come, but also in the medium term. Second important points for 2025, it is the year when our marine and digital activities, and this is how we call them today, reached a critical mass. We expanded our digital solutions with the acquisition of Danelec. This activity now brings together digital solutions and services dedicated to what we did before, which is services mostly to the LNGC market, but also right now with -- to the wider maritime fleet serving 17,000 vessels. And we now have a very robust platform, a critical mass of people of skills and a large installed base of products, which have reached the market. It may sounds a very simple, but for a medium-sized company, the size of GTT, having an addition of almost 200 highly competent, highly expert people coming in the digital area will allow us to accelerate massively in this area versus what we had been able to do in the previous years. So with this, we are very well equipped to create value in the digital area, marine and digital area, but also for our core LNGC market, and I will come back to it. The third type of activities that we have, and we single out what we call advanced technologies, what I call advanced technologies. Which are the type of activities that are breakthrough in nature and with a very, very high level of technical content. As you know, GTT is a technology company. We need a couple of activities, which are really ahead of the curve, extremely innovative and where we can take perhaps sometimes together with partners, some limited risk to really push the boundaries in terms of technological innovation. Our venture arm, GTT Strategic Ventures had an active year last year. We added 2 new participations, novoMOF, so Metal-Organic Frameworks, but also CorPower. And we also increased our stake in bound4blue to support its industrial developments. Our advanced engineering and modeling consulting team, which is called OS, which has been part of GTT since 2020, continued the development of its modeling solutions and a very active year for AI, in particular, for the maritime applications, but also for other types of applications. And as you know, we have actively taken the decision to focus, I would say, Elogen on the development of its core stack to take into account the slowdown on the [ hydrogen ] market and also focus [ hydrogen ] on what GTT is the best at, which is developing the core technology. So all of this well done in the year. Now let's turn into our technologies and solutions before looking at our market. First, a couple of comments on our innovation strategy. As I was saying, technology and innovation are at the very core of the DNA of GTT. Again, that's the reason I joined because it sets this company completely apart versus traditional company. We have a huge number of experts at the top level in the world in our field. We have more than 3,600 active patents, and we filed again last year, 68 patents, which is slightly upward versus '24. And our innovation strategy is, of course, built by the teams. It's built around the level of expertise that they have, but it's built -- it follows a very simple, I would say, step-by-step disciplined approach, which I will try to summarize as such for the core business. First, we work to improve the efficiency of our containment systems, not only through breakthrough innovations and sometimes we communicate on the breakthrough innovations such as NEXT1, which is a fantastic system, but also with a very sustainable gradual approach to upgrading our existing systems. We have -- our systems, Mark III and NO96 are improved, I would say, almost every quarter with new designs, with new add-ons, with new solutions that allow them to perform better for customers. And this is what makes our innovation strategy so specific. Second, we also invest beyond our own internal systems to improve the overall performance of the LNGC tankers. For instance, we released the design of a new LNGC architecture with 3 tanks and a capacity of 200,000 cubic meters. That means lower boil-off rate, lower operating costs, lower CapEx for the owners. And all of this creates a lot of value for the industry. This comes from us. The third way, and this is an area where you will see an acceleration in the coming years because it's an area where we can invest in a value-creating fashion in a very solid manner, thanks to our newly acquired digital platform. We, of course, have a lot of know-how and a lot of technologies to support the ship operations, especially the LNGC operations through their lifetime. Because we provide technical assistance at various steps of the ship's life because we know how to prevent sloshing because we give day-to-day advice to optimize maintenance or to, for instance, perform alternative survey scheduling. So this is an area where we create value through innovation and that will accelerate. Now to give you more details or better illustrations than I can about those technologies, let me hand over the floor to Karim Chapot, who will present you our solutions. Karim Chapot: Thank you, Francois. Hello, everyone. Thank you for joining us today. I'm very pleased to give you more details and share what made GTC so distinctive. As Francois said, we regularly improve our technology. So we have our standard product, NO96 [ SmartFeed ] and there are regular updates to improve the thermal performance, to improve the reliability of the technology to fit for needs of our clients, and that's something that we did for years. But we are also developing new technologies, upgrade technologies. And this next one product is really our future product. It's really -- it's fantastic products, as said by Francois, which is an upgraded thermal performance, fantastic reliability. And we have the best product today with this next one. And we are also developing new solutions, and that's really where the membrane shine. It's the ability to cover new needs. And for example, for ammonia and low carbon fuel, membrane is fully adapted. And that's really what matters for us for the future. We have a solution. We have upgrades to cover new future needs for fuels. All that will be transformed in the future because we have -- we are coming in a new area, I would say, it's an area of data, and this is made possible with Danelec. And through technology, we improve data collection, and that's really new now. We have access to a lot of information. And based on this information, we are in position to better understand what's happening on shipping operation. So to answer to very specific questions that where it was not possible in the past. So you have -- nowadays, you need to understand that you have several sensors on the ship. This sensor, we have access to the data. And through the data, we are in position to provide very detailed answers. And let's give an example of this kind of question that we have regularly from our clients. Imagine that, for example, in the United States, we have Shell gas with very high level of nitrogen. This is typical of what we have. And this generates a lot of issues for the clients. When you have a very high level of nitrogen, it means that the cargo is very cold. It means that you have a risk of boiler freight, very high level of boiler freight at the beginning of the voyage. You have issues regarding, I would say, the thermal efficiency of your fuel, which means risk of clocking on the propulsion, et cetera, et cetera, mixing of cargoes. This is really where GTT is very strong. It is understanding also operations. So it's not only the containment, but understanding the operation and how we can answer in a very precise manner to our clients on a day-to-day operation and provide the best answers for them to improve their operation. And that's where we would like to focus today our efforts and provide value to our customers. This is here just one example, but we have many, many examples coming every day where we could provide answers and industrialize our answers. So through the combination of expertise and data, we can improve today and tomorrow all these digital platforms based on the know-how that we have gathered all along the year, based on this data and the understanding of the limit of the technology, we can provide real-time monitoring and answer to all their potential need. And I would say, improve the overall value chain from the terminals from the liquefaction terminal to the regasification terminal. So we started already when you look at the maintenance, what we call the ASP alternative survey plan based on all this data and knowing exactly what happened on the ship in operation, we are in a position to really improve the operation of the ship. And instead of opening the tank every 5 years, we propose to the client to open the tank to every 7.5 years. So we increase the time duration between the opening of the tank. And this generates, of course, an optimization of the OpEx of the -- for the owner. And so that's a great solution that is today had a lot of success. So our objective is clear. We want to reinforce our technical leadership by providing these high-value services. This is possible because we have very, very good relation with all the shipowners. We have I would say, very good relation with all the value chain, with all the stakeholders, the charterers. And by having this very strong link, we are in a position to fully understand their needs and to fulfill those needs. And that's really where we would like to dig into. So with this proximity and combined with decades of operational experience and having a deep know-how of experience, it's enabled us to offer relevant solution and innovation and not just be focused on the tanks. So thank you. And now I hand back to Francois. Francois Michel: Thank you, Karim. Now let's look at the market dynamics. My take on this is very simple, I would say. The LNG carrier demand will be very, very good, very strong in the future for very tangible, very concrete reasons. First, there is a growing need for energy and natural gas, in particular, which is a flexible energy will grow and it's also complementary to renewables. Second, to transport this gas -- there is a growing trend to liquefy it for obvious geographic reasons, I would say, but also because it provides greater flexibility and security, both for the producers and for the consumers. And third, and I will dive into this because it's important in our 10-year forecast. The LNG carrier fleet is aging, and this will drive a need for new vessels. So let's take those topics in turn. First, if we start with the traditional energy forecast, as I was saying, and you see it on the chart, what is interesting for us to see is that, of course, the renewable energy is growing, but it is growing in tandem with the growth coming from natural gas. And we view natural gas as slowly, gradually step-by-step in a solid fashion, increasing its share in the overall energy mix, reaching 26% by 2035. Second, as I was saying, natural gas can be consumed locally or exported, but for geographic reasons as well as geopolitical reasons, really core geopolitical reasons, you will see less and less pipelines and more and more liquefactions to provide greater flexibility and greater safety or security of supply to the consumers. The results of this is that the LNG demand will grow in a steady fashion at about 4.5% in the coming years, which is higher than the gas trade, which is higher than the gas demand and of course, higher than the global energy demand growth in volume of slightly below 1%. And this is exactly what you see in all the major forecast from Wood Mackenzie, from BP, from Shell, and they are all pointing towards a sustained growth in demand for LNG well into 2040 and most likely way beyond. It is also worth noting that the IEA has recently reintroduced its current policy scenario this year and also upgraded its stated policy scenario. Second, it's also important to note that all of those forecasts have been revised upward recently. So we see in a consistent manner, a very, let's say, solid growth in demand for the next decades in LNG. And as you can see on the right, with the various projects that have reached FIDs in '25, we now expect the supply to be approximately enough to cover the demand into 2035 or so. But of course, more liquefaction capabilities will be needed to meet the demand from 2030 -- 2035 onwards. One comment on what we call the shipping intensity. The shipping intensity is the number of ships that are needed to transport 1 million tonne per annum of natural gas per year. What you see on this chart is that the fastest-growing producer of LNG is the U.S.A. The fastest-growing consumer of LNG is Asia and the longest route is the U.S.A. to Asia. If we add to that the fact that the Panama Canal is congested, you will see overall an upward movement in the LNG intensity over time for -- again, here also for very concrete, very basic reasons. Now if we look in details at -- if we zoom in on the FIDs, as I mentioned before, 2025 was absolutely a record year in number of FIDs. We have a total number of 84 million tonnes per annum of FIDs, including 62 million in the U.S.A. And I try to compare this with the figures from the past. The average for the past few years was between 20 and 25 a year. So very, very -- more than 3x the average of the previous years. And just this single year, not yet translated into additional LNGCs orders really for real, will represent an additional need of 150 vessels. So it's a very positive point in terms of outlook. What is also interesting is that additional projects, more than those ones will be needed to serve the LNG demands that we have seen on the charts before and that some of those projects are well advanced in terms of SPAs. In fact, we have counted more than 50 million tonnes per annum of pre-FID SPAs, so SPAs that have not been included in signed firm FIDs yet. And this is -- this bodes very well, in fact, for the activity level of future FIDs. We have also put on this slide the number of projects, the list of projects which could take FID in '26 and '27. Of course, it's always very difficult to point to which project exactly will take FID when, but that gives you an idea of the material reality of this trend. The third driver for the LNGC demand, which I wanted to underline is the fleet replacement. And here, we need robust statistics. The LNG carrier fleet is aging. And in the next 10 years, more than 300 vessels will be more than 20 years old and of which a bit more than 200 will be more than 25 years old. And interestingly, by the way, you will see on the next slides that's when ships are being scrapped today, they are being scrapped at 25 years old. So there is a turning point in the value of the ship at about this age. And as you can see on this middle chart, less than half of the fleet today is running on the latest types of engines, which are far more efficient than the older ones. So I would say, regardless, our view, our basic view is that regardless of additional incentives such as the EU ETS, which will, of course, put some additional pressure to decarbonize this full industry and which will further increase gradually over the years to come. But I would say, regardless of this, we are convinced that simple economics will put pressure on the fleet to scrap more and more vessels and to replace them with new ones. And we are already seeing this happening because, as you know, and this is what you see on the left chart, we have seen last year a record number of scraps and conversion. The total number of ships being scrapped or converted has reached an all-time high of 19 ships. All of these factors combined will lead us to review upward our long-term estimates for LNGCs over the next 10 years, which we know put here, hence, the plus-plus after the 450. It's a little bit early for me. I've not met all customers. So it's a little bit early for me to give you very specific figures on that. But let's say, all the indications we have, markets indications we have for the moment point to a solid upward revision of this figure. So we see a very solid level of activity in our sectors for fundamental reasons. The rest of the activity is good. We see it as solid, and we have not made any revisions. Now if I turn to another market for us, which is LNG as a fuel. As you know, LNG as a fuel -- the LNG as a fuel market continues to be booming. And in fact, it has reached more than 150 units, both in '24 and in '25, and I believe that it will stay at a very high level. In fact, for fundamental reasons, when you talk to ship owners or the shipyards, LNG is winning the battle of the fuel compared with methanol or compared with oil, and this is clearly a fundamental trend. Second, what is also positive is that we are convinced that membrane type solutions and our solutions are the right ones for many of those LNG tanks. Not for all, but for many of them, if not for the majority. So a very significant share. Now of course, because this market has increased very fast, we need to make sure that we bring the membrane type solutions in a way that answers to the shipyards needs and to their level of expertise in how to handle membrane type solutions as fast. And it's also true that in the very short run, using a Type C tank is easier for a shipyard. So we will be working on that. We have a strong expertise. We have delivered a lot of systems, and we have come with a very strong action plan on this, which is summarized at the bottom here, but where I'm involved myself. First, of course, we invest and we will continue to do so in R&D to make sure that membrane type solutions keep improving. We have come up with new systems in '24 with the recycle with the [indiscernible] technology, and we just got an AiP for GTT Cubiq in -- do a couple of weeks ago. So you will see more and more innovation to have better membrane systems. But second, which is even more important to me, we will be working together with partners very close to the shipyards that are building the ships so that's we bring our membrane type solutions in a very, let's say, easy to do business with pre-industrialized fashion so that the shipyards can almost bring them plug and play in their own processes. And here, I see a potential, very concrete potential creation of value leveraging on our expertise. Especially for the shipyards that have not been used to using membranes for LNGC, which I think this is the hurdle today for the growth in our solutions. Now third market for us is marine and digital solutions. And as you know, we had already been developing a number of solutions historically in GTT, building on our own internal forces, building on advanced modeling and engineering capabilities, the OS team in particular, and also some acquisitions, Ascenz Marorka, and BPS. Everything changed in scale and in nature. And I insist on the fact that everything -- I mean, everything gained a critical mass last year in '25 because we [ know ] have a critical mass of solutions of staff and also on the number of ships that we serve. We [indiscernible] we have systems installed on 17,000 ships, which changes everything. The second point, which is very important and which I will underline is that we are not purely in hardware, and we are not purely in software here. We have the right mix, the right balance on the hardware and software solutions. And my view of this is -- and this is one of the reasons why we wanted to call this activity marine and digital is that it's not purely a software venture. It's very solid, robust systems at the core of the ship's operations, mixing hardware and software. With this, it brings us a very solid base to do 2 things. First of all, to accelerate the development of the marine and digital activity led by Casper Jensen. And we will keep developing on this. And I can tell you, I'm very confident about the synergies that we have announced so far, not only on cost, but also and more importantly, the sales synergies that will result from this. So the integration is running very well. We are confident, and we are solid there. Second, we will leverage this platform to create new services, really tangible concrete value-creating services for the LNGC fleet where we can mix this digital expertise and the expertise that we have in the membrane, in the containment systems and in the molecule handling, I would say. So let me hand over the floor now to Thierry for the financial overview, and then I'll be back for the '26 guidance and takeaways. Thierry Hochoa: Thank you, Francois. Good morning, everyone. Now moving on to the financial part of the presentation, and let's start with the order book. We can say the order intake has been more moderate than in 2025 than in previous years with 45 new orders in 2025 for the core business and 19 new orders for [ LNGs ] fuel, sorry. As mentioned by Francois earlier, part of the orders has been delayed from 2025 to 2026 and due to geopolitical uncertainties, but our backlog remains very solid with 280 units, 88 units at the end of December for the core business and 48 units for LNG as fuel. Moreover, the beginning of this year give us positive signals and confidence with the future or for the future because we have already been booked or notified of 14 orders of LNG and [indiscernible] carriers as of today. What does it mean 288 units in terms of consumptions and flows for the core business and in terms of revenues. This means EUR 1.6 billion in revenues already secured. This means strong visibility for GTT in the years to come with EUR 609 million in revenues in 2026, and for the core business alone. This means EUR 542 million in revenues for 2027. Now moving on to our revenue. Total revenue amounted to EUR 803 million in 2025, up plus 25% compared to last year, mainly driven by new builds and higher numbers of constructions under construction in 2025, mainly driven by services activities as well, which are almost stable at EUR 23 million, thanks to development of our certification activities and -- but less pre-engineering studies, mainly driven by Marine and Digital Solutions increasing their revenues by 131% compared to last year at around EUR 36 million and including Danelec activities, which generated EUR 6 million in 2025 in 5 months. And finally, revenue generated by electrolysers activities at EUR 4.6 million, reflecting our desire to mainly focus on our technology and on a few profitable projects. Let's continue with the other main aggregates of the P&L, in particularly the EBITDA and EBIT. You can see the impressive increase, respectively, by plus 40% for the EBITDA and 26% for both -- sorry, for EBIT compared to last year. This is mainly explained by the increase in revenue from GTT's activity -- main activity. This is explained by the absence of significant delays in ship construction schedules and this is explained by a strong and close monitoring of our costs. As a consequence, the EBITDA margins amounted or amount to 67% in 2025 compared to 60% last year. Net income also increased by 90% compared to last year, including the [ outsourcing ] cost of Elogen. Two additional comments on this slide. The first one regarding investments. Our investments increased mainly linked to the acquisition of Danelec for EUR 194 million in 2025 and the new minority stakes within the framework of GTT Ventures Capital. And regarding our cash position at EUR 347 million at the end of 2025, if we consider our first loan taken out for the acquisition of Danelec, the net cash position reached EUR 237 million at the end of 2025. So thanks to our strong activity and robust financial figures, the dividends distributed will represent 80% of the consolidated net income as announced in our guidance last year in the same place. This represents EUR 8.94 up -- per share, up 90% compared to last year. I will now hand to Francois to -- for the 2026 outlook and the conclusion. Francois Michel: Thank you, Thierry. So regarding the '26 outlook, so what we see is that we see '26 revenues ranging between EUR 740 million and EUR 780 million, still marking the second best year for GTT and following a record 2025. As we explained, there is a gradual end of the 2022 order peak, which was the very, very abnormal peak with 162 LNGC ordered in a single year and a somewhat moderate start of the '25 level. They have a mechanical impact temporarily, I would say, on the level of activity in '26. but it's not a level that will stay on -- it's not an effect that will stay on forever. So it's very temporary in terms of, I would say, slowdown. Second, our EBITDA level is expected in between EUR 490 million and EUR 530 million, very solid level, which I am sure you have noticed implies a very high level of EBITDA margin, and we will maintain a very strict cost discipline and execution control discipline to secure this level, I can assure you. The third point where we will be absolutely disciplined is dividend policy. We will maintain our dividend policy, which has been the core of our promise to investors over the past years and since the IPO. So that sums it up for the '26 outlook. Now before opening the floor to your questions, let me summarize or give you a few takeaways. So '25 is absolutely a record year for GTT. It shows that's the group has the right strategy, a fantastic, very unique positioning at the core of the LNG value chain, the capacity to execute on this positioning, the teams that are needed to secure this execution hence that also the discipline and the policy to execute it up to, of course, the dividend policies. So it also means that the staff have done a great job, and I would like to thank all of the teams for having delivered such a fantastic performance. Of course, we have been helped by a very good market, in particular in '25, but it will continue doing so in the future. Secondly, '25 is also a very good year for us when it comes to looking not at the past, but in the future because the record high level of FIDs that we have seen and that are solid and firm will translate into additional needs of 150 ships just for one single year. Third, at the end of '25, we still have a very solid order book at EUR 1.6 billion, which gives us a lot of -- of course, a lot of robustness in our forecast for the coming years. We are also -- '25 has also been the year that when we have built a real marine and digital activity, which we will leverage to create more value in this field, in this sector, but also for the core business of containment systems because it allows us to do a lot of activities through the lives of the ships for LNGCs, which we could not do before. So it will be -- it will allow us to create a lot more value. And third, I can tell you that when I look at what lies ahead, of course, we will continue to leverage our very strong expertise, the model of GTT, which is technology expertise based in the LNG and in, I would say, in the LNG world, but mixing it with advanced know-how and the good skills in data and digital will create a lot of value for all stakeholders, for a lot for our customers, but of course, a lot also for our shareholders. Now thank you for your attention. I hope the presentation was clear. And we and together with the management group here and Thierry, in particular, we are happy to answer to your questions. Jean-Luc Romain: I have a question about your technologies and the adoption of your new technologies. You mentioned GTT NEXT1 is a fantastic technology and Mark III and NO96 are continuously improved. What would convince the shipyards or the shipowner to move from continuously improved NO96 or Mark III to the NEXT1 technology. Same question for Cubiq. Francois Michel: I will -- thank you for your question. I will let Karim Chapot answer on the particular technologies and then perhaps give you some complement on the marketing strategy. Karim Chapot: Yes. Regarding -- that's true that NO and Mark have a fantastic legacy and had a lot of success and both clients and shipyards love this technology. But it's clear that the next one has a major advantage. It's first the level of reliability that is much higher than Mark III and NO. And also something that is special is the ability to be enhanced. This NEXT1 technology is designed for the future, is designed to, in fact, be really efficient in a world where we are -- we have a huge tension on the CO2 price and the requirement from the client to be at a very, very low boil of freight. And we are selling a solution at 0.07, but they are strong options and optionality on the design to be further improved, and that's really where the next one shine. So today, of course, the shipyards are looking at it. They are developing all this industrial scheme. We are working with them. We are supporting them. We are marketing the solution to the owners. And we see some very influent owners really interested by this optionality. For sure, as soon as the IMO and I would say, the LNG -- the [indiscernible] start to be important on the cost of CO2. It will go gradually, then the next one will really shine based on its characteristic, based on this thermal capabilities in improvement, based on its design, which this optionality are rather limited, I would say, for Mark III and NO96. Regarding the over solution, the Cubiq solution, the Cubiq solution is a solution that has the advantage of first reducing the cost. So we have removed the chamfers. So we have a solution that is fully optimized CapEx-wise. And this was promoted to the shipyard, and I can tell you they are really interested. They are interested because it offers really an optimum in the volume occupation for the ship. So you really, for example, for a different type of ship, you really have further volume that you can promote. So for example -- well, for different kind of applications. So the design is such that you optimize the volume, but you also reduce significantly the cost. And so that's an optimum. And we worked on the liquid motion side to reduce the sloshing load and improve the cost of the insulation. So by having all this improvement, we are in position to deliver a very good product for LNG as fuel application. And today, we see real interest for major shipyards. Unknown Executive: Can you please give some detail about the LNG global shipping market? What's the part of EU in the shipping market? And what could happen if the Russian gas come back to EU? It may happen. That's my first question. Second question is everything seems to run perfectly. So what is your worst nightmare. Francois Michel: So thank you for your question. Your first question was the LNG market dynamic for the EU and Russia, right? Okay. Thank you for your questions. So first of all, there will not be -- the way we anticipate is even if there is, let's say, a ceasefire or end of the war, then there will still be sanctions and there will be no additional orders or no activities until sanctions are lifted for the Russian projects. So no, if at some point in the future, the sanctions are lifted, we expect some Russian projects, Arctic LNG 2, for instance, to be able to reopen exports, including to the EU, and that would require additional ships, which will generate activity for us. That's the way we see it. So it's possibility to sell more. For the moment, it's totally close, and we are just monitoring the situation. Second -- your second question is everything runs perfectly. Yes, GTT is, I would say, it's an impressive machine. So I will not say the opposite. But of course, I see many things where I believe we can accelerate and create even more value and very concrete things building on what I have seen in the past. I will give you some very concrete grounded examples. One is, of course, leveraging what we have as a platform for digital applications to develop -- to be better in terms of service and maintenance and high value-added services for the LNGC market as a whole is something that -- I think it's a first win for us. Second, working better for the LFS and for the onshore market, understanding better the supply chain constraints, very close to the shipyards and the manufacturing constraints is also something where I think we can remove this bottleneck and increase our market share and the penetration of our solutions for those concrete applications. Then there is -- there are long-term very operational topics where that I will describe over time in the next couple of months, where I think the company can be even stronger on its core business and what has been done in the past. So I see a lot -- I'm very optimistic. I think I see even more potential for additional value creation and acceleration than what I thought before joining, to be frank. Henri Patricot: I have 2 questions. The first one, I know you said it's still early, but I wanted to come back to the 450++ and wondering how much is plus, plus worth? Are we taking 25, 50, 100 more orders? And what's giving you this increased confidence around this long-term outlook? And then secondly, on digital, you referenced the potential for synergies and growth. Just wondering, how do you expect that to translate into digital revenue growth this year and beyond? Francois Michel: Thank you for your questions. I did hesitate a lot on the wording of the 450++ because I knew it would trigger some questions. But I wanted to give you a deep indication on the fact that I am convinced that this number can be revised upwards. This number is the combination is the cumulative of 3 things. It's the amount of ships that still need to be delivered for existing projects that have reached FIDs. It's the amount of ships that will be needed for new FIDs, and this is where we have the highest uncertainty. And it's the amount of ships in the coming decade that will need to be scrapped. And there, we see a solid 200 to 225 ships being scrapped and that will need to be replaced for the various reasons that I explained before. So we had communicated before on the fact that the number would be slightly up versus 450. I see it significantly upward versus 450. That's the first thing. So significantly up, not just a handful, okay? Now let me turn to Thierry for the specific question on digital. Thierry Hochoa: Okay. Just regarding the digital activities, you know that we do not provide any guidance per [ BU ] -- but I can tell you that the growth of the digital will be significant first because we are going to integrate for 100% of Danelec and for the full year of 2026. That's a mechanic approach. And regarding the organic growth for the digital activities, we expect to deliver the synergies that we discussed last year. And we have a strong dynamic regarding the combination of hardware and software. And you know that regarding this acquisition, we do not have any common clients. And it's very easy, I guess, to combine these 2 activities and to develop common figures and common growth for the digital activities. But we do not disclose any figures per [ BU ]. Jean-Francois Granjon: Three questions from my side. The first one, regarding the expectation, we see an acceleration of new orders in the second half of last year and the case for the beginning of this year. Do you estimate that this should have a positive impact not on 2026, but on 2027 growth for the top line and for the earnings? The second question concerns the digital business. We see a strong improvement for the gross margin, 77% versus 48% previously. So can you explain what's happened? And do you consider this sustainable to see such a level of gross margin? And the last question regarding Elogen. We saw a strong cut for the losses last year. What do you expect for 2026 and above. Francois Michel: Thank you for your 3 questions. I will take number one and number three, and Thierry, you can -- Chap you can take the one on margin of digital. So one is the very positive dynamic that we see in order entry today, can it already have an impact as of '27? Yes. Yes, it definitely can. The extent for that is still unknown. But today, the average time between an order, a firm order and steel cutting is about 14 months. So I would say, in between 12 and 18 months. So it can have an impact or the beginning of an impact in '27. This is also the reason why the early '25 loss of moderate intake had an impact on our sales this year. So we are still in the period where what we are recording right now and what has been recorded in a very positive manner last year can be integrated in '27, Yes, of course. Jean-Francois Granjon: Francois, you expect some new growth for the top line in '27 versus '26? Francois Michel: It's too early to discuss, but it will have an impact. I mean if the level of orders stay at the level that we see today, of course, it will have a impact. The third -- your third question was regarding Elogen. The decision to focus Elogen on the core technology development was absolutely the right one, given the market and given also the fact that there is still a lot to do to further improve the products to make it really the best stack or the most efficient stack in, I would say, at least in the Western world. So we are there. We are very solid in terms of technology. We have limited the losses of Elogen to just a couple of million euros a year, which is a very reasonable result. And this is what we have for today. So we keep -- we will be running on a handful of projects, not more than that, small-sized projects to keep developing the technology. We will not take long, large exposures to large projects. We don't need that in the current market conditions, and we will progress from there. Thierry, you want to say a word on the [ margin ]. Thierry Hochoa: Thank you, Jean-Francois, for your question and to underline the impressive increase in gross margin for the digital activities. As I've already discussed last year regarding this activity to increase and to have profitable activity, we need to have a leadership position in this area, definitely. And in '25, we increased our price and mainly for Ascenz Marorka. So that's why we have this level of gross margin today. And we will continue in that way because today, thanks to Danelec, we have a leading position in specific areas, and we will continue to increase our price if we have this capacity and the possibility regarding these elements and the clients. Francois Michel: I think also Danelec brings us -- Danelec is a very structured company combining hardware and software. So it has an approach to value in this digital world, which is very grounded, very solid. The Ascenz Marorka know-how is extremely, I would say, engineering driven. And so mixing the best of both, which is a lot of technology from Ascenz Marorka and Danelec very solid P&L driven is a good way to create value, and this is what we are already seeing in the figures. Unknown Executive: We have a couple of questions from analysts online. So we will take them. And afterwards, we can take some few questions from the room again. Operator: The first question is from Matt Smith of Bank of America. Matthew Smith: My first question was around the record FID activity that we've seen for LNG projects in '25. So I agree that, that really underscores a big pickup in order intake for yourself versus the 2025 results. I guess I just wanted to ask how quickly you felt that those orders need to flow through. Is that the sort of next 12 months? Or is it the next 3 years? What is your sense on timing there? That would be the first question. And the second one, much broader. We talked to geopolitical uncertainties, a very broad term sort of impact in 2025 orders. Could you sort of zoom into some of the more specifics as it relates to LNG trade and whether some of those uncertainties we look to have a bit more clarity on today, please? Francois Michel: Thank you. Thank you. So thank you for the 2 clear questions. We are already seeing very active discussions regarding the potential orders after the projects that reached FIDs last year. So very concrete, very -- our teams are involved in many of those discussions as we speak. So we expect those orders to come for some of them quite quickly and for others, I would say, within the next 18 months or so. So that's the best estimate I can give you today. But not -- it's not 3 or 4 years, I would say, within the next 18 months, perhaps 24 months for some projects, but not longer than that. So that should give us a good level of order. Perhaps there can be some slippage, but best feeling that I have today from looking at the company. Again, I'm new, but that's my best assessment. Second to your question on geopolitical tensions. Of course, there can be -- there could be a surge in tensions between the U.S. and China. What we have seen so far, however, is that if you look at the direct impact of the trade discussions or the tough trade discussions between the U.S. and China on the LNGC market, there have been very limited -- the LNGC market has been excluded from the tariff discussions on the port duties between the U.S. and China. And even if it were revived in one way or another, it would leave enough time for the market to adjust or to reroute the ships. Perhaps -- the one factor that could create some [ deformation ] is, of course, if there were some additional intense pressure for a lot of players in the industry not to use Chinese shipyards as there was last year. I mean, if you look at the number of orders on 2 Chinese shipyards, it was very limited last year. And then fortunately, it came back up this year with 6 new orders. That could create some bottlenecks in the supply chain in Korea. But I would see the risk being there. But again, Korean yards have capacity. They have spare capacity today as we speak. They have also the capacity to allocate capacity resources from non-LNGC market to the LNGC market. So we are not seeing a bottleneck as we speak. Operator: [Operator Instructions] The next question is from Richard Dawson of Berenberg. Richard Dawson: Two from my side. Firstly, implied EBITDA margin guidance is very resilient for 2026 despite the potential reduction in the core business. So interested just to understand what's supporting that margin, and given we could see some operating leverage reduce as core revenue falls and also the digital service business ramps up, which I believe is somewhat dilutive to group margins. That's the first question. And then secondly, maybe a bit of a broader topic, but there was some news in January that India is exploring options to construct some LNG vessels domestically. Have you had any early discussions with those Indian shipyards about using GTT's technology? And how quickly do you think any increase in shipyard slots could come online? Francois Michel: Thank you for your clear questions. Let me start. India is a country I know very well. And yes, we have had early discussions with Indian shipyards. Now how fast can India enter into the LNGC market, we will see. But if it is the case and when it is the case, we will be there and well positioned. That is clear. And this is an area that we are working actively on. Second, in particular, in tandem in particular, good coordination with Korean yards, to be frank. Second, regarding your question on EBITDA, and I will let Thierry answer this one, but I can tell you the discipline on costs in GTT is strong, and I will clearly make sure it remains very strong. Thierry Hochoa: Yes. We are very confident to deliver this EBITDA margin in 2026 because we have this cost discipline definitely. And I remind you that we have a flexible cost in our P&L. And definitely, when we have less activities, we can react very quickly regarding and to adjust our P&L. So that's why we are very confident because if we have less activities in 2025 in terms of orders, our different directions and department, so we'll adjust definitely their charge to take into account these less activities. So that's why we are very confident regarding this guidance and the EBITDA margin that we need to deliver in 2026. Francois Michel: And yes, at this level of activity, we are very, very, very far from a position where it would start to be difficult for us to adjust our cost base. Operator: The next question is from Guilherme Levy of Morgan Stanley. Guilherme Levy: Francois, I wish you all the best in the new position. I have 2 questions, please. The first one, you alluded in the press release to a potential of cross-selling from your digital services business of EUR 25 million to EUR 30 million by 2030. I was wondering if you can provide us more color around the progress to 2030. And then secondly, just thinking about your currently very strong net cash position. I was wondering if you could put more of that cash to work in the near term how are you thinking about M&A? And also, just curious about dividends. But of course, you reiterated your dividend policy. And in a year with slightly lower EBITDA, that will ultimately mean that your dividends could decline next year. Would you be keen to keep dividends flat for longer using your net cash position? Francois Michel: Thank you for your questions. I think your question on cross-selling for digital raises a broader question regarding how efficient we are to generate synergies between Danelec and BPS and Ascenz Marorka. But so let me give the floor to [indiscernible] for the broader question on how well we are executing the synergies. And then perhaps, Thierry, you can comment on the actual levels of the synergies and also the question on cash generation. Unknown Executive: Thank you, Francois. On the broader side of the equation, clearly, when the announcement was made by GTT to acquire Danelec, it was mentioned that we, in combination, the Ascenz Marorka, Danelec and BPS would be on board around about 17,000 vessels. Not all those vessels carry all our solutions and all our services. The vast majority of those vessels carry either VDR or shaft power meter. And those 2 hardware propositions are actually a way in for us to try to sell other services. But we actually, in the cross-selling activities, and I think Thierry can probably comment on the actual numbers, I can comment on the activities. We go about this in a very structured way. So we have mapped all those 17,000 vessels down to IMO numbers with unique products and services. And then we basically reach out to all of them to see whether we can add more within our own digital domain. And as part of those 17,000 vessels, there are also some LNG core vessels that we should be able to sell more to. So a lot of activities around that. And clearly, also one of the biggest activities is to try to streamline our offering and not do duplicate offering into the market. We want to streamline the offering around performance, around voice optimization and not have more than one solution to our customers. Francois Michel: Thank you, [ Kasper ]. Thierry Hochoa: Yes. Regarding the figures of revenue synergies, we have an estimation around EUR 25 million, EUR 30 million for these 2 activities. And the rationale is the fact that with Danelec, we have 15,000 vessels and Ascenz Marorka, we have 2,000 vessels. And the combination of the software that we have in Ascenz Marorka, our current affiliate and to impose this solution to the vessels of Danelec can deliver these synergies around EUR 25 million, EUR 30 million. That's the combination of 2 and based on this 15,000 equipped vessels of Danelec or from Danelec. Francois Michel: Do you want to take the question on the cash. Thierry Hochoa: Can you remind me your question, sorry, regarding your cash generation? I'm sorry. Guilherme Levy: On the cash generation, I was just wondering what could we have in mind in terms of uses for your net cash position at the moment? Just thinking about dividends, your willingness to keep dividends flat even though you have reiterated your dividend policy of 80% of net income for the next year? And also if there is any sort of inorganic growth opportunity that you have identified for the near term? Thierry Hochoa: Okay. Thank you for your question. And yes, I think the first element and first topic for the cash allocation is the dividends. We have a strong dividend policy, 80% of our net consolidated results and we will continue and confirm that we will use our cash for that. The second element is organic growth. You know that we have ambition for our technology for next one. That's an example. But for the other technologies that we are working on it to protect our core business. And we will continue investing our R&D around 10% of our revenue in average, and we will continue that way. And if tomorrow, we have opportunities in M&A, especially in digital because once again, we need to have a leadership position to have the pricing power and to be more profitable with this activity, we will continue in that way as well. Operator: The next question is from Kevin Roger of Kepler Cheuvreux. Kevin Roger: First of all, welcome on board, all the best for the new position at GTT. And I'm very sorry for that, but I will have maybe not a nice one for you, and it's around Elogen. For us, it's quite difficult to make the difference between the technologies available on the market. You come from a player that has also an electrolyser of technology. So I was wondering if you can share a bit with us your take on what is different for Elogen compared to the Street in terms of value to the market, technology, et cetera. That would be the first one. And the second one is just maybe as a kind of second derivative from the one with the cash, but you have generated a lot of cash in 2025. You have already offset in a sense the acquisition of Danelec. So why don't you offset the provision on Elogen for the dividend payments, keeping the 80% of the net results, which include a EUR 15 million provision roughly on Elogen. So just maybe also to understand why you do not offset that for the shareholders on the dividend payments, please? Francois Michel: Thank you for your warm welcome. And I'm very happy to take your questions. First on Elogen. So Elogen is a specialist in high-performance PEM applications with, I would say, medium-scale electrolyzers, which are very -- at a very high level of performance for small-scale applications. The market to produce [ hydrogen ] is, in fact, very broad, it ranges from projects of a couple of hundreds of kilowatts to sometimes up to 1 gigawatt of projects. For some projects in India, it's 650 twice to 650 megawatts for a single project. Elogen is not playing in this market. Elogen targets and has the right technology to target projects up to a couple of megawatts. And those projects are coming at a reasonable pace. They will be -- they will come more and more as the overall hydrogen supply chain matures, which is why we should not accelerate too much in this field because we should not be ahead of the market. We need to be ready when the market develops gradually. And during the time that the market matures, we keep investing to have the best technology to sell those, I would say, intermediate size and small-sized projects. Elogen has very good products for this kind of applications. But of course, this market is, for the moment, relatively slow. And so we want to go at the pace that is required by the market. And we want also to keep a technological -- an edge over the technology. And I think something that GTT has done very, very well. If you look at what happens on the Elogen market is that you have some PEM players who have targeted very, very large projects and build up enormous capacities. GTT has not done so. We are focused on the right scale of the projects to keep investing in a prudent, in a cautious manner on developing its technology for the right projects. I think it's quite successful as an approach. The second is what about the cash and the dividend policy? I can tell you, GTT will maintain its dividend policy, which has been the core of the value for the company and for the shareholders since the beginning. Here, I see no value -- no reason to make an exception, but perhaps Thierry, you can comment. Thierry Hochoa: Yes. Thank you, Kevin, for your question. And this provision, EUR 45 million for Elogen. We can say that we consider this EUR 45 million for the provision to be operational costs, and that results in a cash outflow such as the construction of the gigafactory. So we consider that operational cost, and it's part of our operational results. So that's why we consider that's not necessary to retreat this element regarding the dividends. And second aspect, Kevin, we consider that a yield of nearly 5% remains satisfactory yield, I guess, Kevin. Operator: The final question from the online question this is from Jamie Franklin of Jefferies. Jamie Franklin: My questions have actually been answered. Thank you so I will hand it over. Francois Michel: Thank you. Any more questions from the room? Okay. So I would like again to thank you all for attending this presentation, both in Paris and online. We will have a lot of, let's say, opportunities to interact. Please call us any time. We're happy to take your questions and to interact and also to take your advice guidance on how we can improve further. Thank you.