Accelleron Industries Stock

Ladies and gentlemen, welcome to the Accelleron Half-Year Results 2026 Conference Call and Live Webcast. I am Sandra, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it is my pleasure to hand over to Michael Daiber, Vice President, Strategy and Investor Relations. Please go ahead, sir.

Hello, everyone, and a warm welcome to the Accelleron Half-Year Results 2026 Investor, Analyst and Media Webcast. Thank you very much for joining us today. Daniel Bischofberger and Adrian Grossenbacher will walk you through Accelleron's performance in the first 6 months of 2026, provide a detailed financial review, and share the updated outlook for the full year.

Before we begin, please take a note of the important notices and safe harbor statement. This presentation contains forward-looking statements based on current expectations and assumptions. These statements are subject to risks and uncertainties. All figures presented today are in U.S. dollars and prepared in accordance with U.S. GAAP. Definitions of non-U.S. GAAP financial measures are available on Accelleron's Investor Relations website.

[Operator Instructions]

I will now hand over to our CEO, Daniel Bischofberger.

Thank you, Michael, and good morning, everyone, and thank you for joining. As usual, I'm with Adrian, our CFO, and here is our agenda. I will start with the key highlights from the first half of '26. Adrian will then take over for the financial review. I will return with an update on the marine and energy markets, also talking about our investment priorities and the outlook for the remainder of '26. And finally, we will conclude with the Q&A session.

So I would say, let's begin with the highlights. So Accelleron delivered another strong set of half-year results, building on the momentum of '25. Revenues reached USD 737 million, an increase of more than 21% year-over-year and slightly above 17% organically. Marine new builds and data centers continue to underpin growth. Marine developed well, and we have not experienced any negative impact from the conflict in the Middle East to date. High ship utilization continued to support service demand.

Growth in energy exceeded our expectations, driven by strong service demand in U.S. gas compression applications and also high turbocharger deliveries for gas prime power applications, mainly for the U.S. data centers. Operational EBITA increased more than 22% to USD 190 million. The operational EBITA margin rose by 20 basis points to 25.7%, and net income increased by close to 32% to USD 151 million.

Free cash flow conversion stood at 58% compared with 70% in the first half of '25. This mainly reflects the high investments we are making to support future growth in marine and energy.

Let us look at the main growth drivers in more detail. The product business grew by around 30% year-on-year, while the service business grew by around 15%. In the product business, the strongest growth contribution came from gas prime power demand related to the U.S. data centers and from merchant marine new build activity in Asia.

Data center-related revenues increased from around 5% of Group revenues in the first half of '25 to slightly below 9% in the first half of '26. This is a meaningful increase, but the absolute contribution remains limited in relation to total Group revenues. Service business growth benefited from remanufacturing work in U.S. gas compression as well as service agreements, regular maintenance, and upgrade activities in the merchant marine segment.

This slide highlights 4 developments from the first half. First, prime power gained further momentum. Turbocharger deliveries for data center prime power more than doubled to around 5 gigawatts, up from less than 2 gigawatts in the first half of '25. Backup power applications remained stable at around 3 gigawatts. This is a consequence of our OEM engine customers allocating more of their constrained capacity through the production of prime power gas engines.

Prioritizing prime power applications benefits us. Unlike diesel-fired backup generators, which typically run only a few hours per year, gas engines used for prime power operate a few thousand hours a year. As a result, they will generate substantial service demand for our turbochargers in the future. Let me clarify a few technical misconceptions I've seen in reports about Accelleron's power solutions for U.S. data centers.

When we talk about prime power, we are referring to internal combustion engines running predominantly on natural gas. Internal combustion engines are also known as piston engines or reciprocating engines. So we are not referring to gas turbines. Gas turbines do not need turbochargers and are a competing technology to gas engines. But it's important to know that gas turbine production is largely sold out until 2030 or even 2031. And when we talk about backup power or emergency gensets, we mean internal combustion engines fueled by diesel.

You might ask why data centers need 2 complete sets of engines on the same site, one powered by gas and the other one by diesel. The reason is that environmental regulations typically limit diesel engines to only a few hundred operating hours per year. As a result, diesel engines without emission control systems are not suitable for prime power applications running thousands of hours a year.

Conversely, using gas engines for backup power is also difficult. The challenge with gas backup power is not the engine, it is on-site fuel storage. For the same amount of energy, compressed natural gas requires several times the storage volume of diesel, while diesel can be stored and replenished much more easily in case of extended power grid blackouts.

After this small excursion into prime and backup power, let's move on to the next highlight. We signed a long-term service agreement with the City of Denton in Texas. The agreement supports fast-start power generation with a service model tailored to the requirements of peaking operations. The third, A100-L/A200-L low-speed turbocharger series launched in 2009 and '13, respectively, surpassed 10,000 orders. The series is used across major merchant vessel segments. It covers an installed power base of around 110 gigawatts, equivalent to the installed power of around 100 nuclear power plants of the size of Leibstadt, the largest nuclear power plant in Switzerland.

The superior performance and reliability of our A100/200-L series are one of the reasons for our strong market share of more than 50% in the low-speed business. Finally, our next-generation ACCX300-L low-speed turbocharger platform entered the market. The new platform improves serviceability and operational flexibility. Its cartridge concept allows major service events to be decoupled from dry dock schedules, giving operators more control over uptime and maintenance planning. First orders have been secured for more than 50 vessels corresponding to more than 60 turbochargers and over 600 megawatts of installed power.

With those remarks, I conclude the first section and hand over to Adrian for the financial review. Adrian, it's yours.

Thank you, Daniel. Let us now take a closer look at our half-year financials, starting as always with the Group performance. Group revenues increased by USD 129 million or 21.3% to USD 737 million. Organic growth reached 17.2%, primarily driven by volume, which contributed close to 14 percentage points. The remaining growth was attributable to direct pricing actions and indirect pricing effects from CHF, Swiss franc-denominated pricing and invoicing.

Marine new builds and data center-related applications continue to support our growth trajectory. As Daniel mentioned, data center-related revenues increased to slightly below 9% of total revenues. Operational EBITA increased by USD 35 million or 22.5% to USD 190 million. The operational EBITA margin rose by 20 basis points to 25.7%. The faster growth of low-margin new business and additional costs along the value chain were more than offset by strong structural leverage as revenue growth continued to outpace SG&A growth, resulting in a further margin expansion. In other words, the margin improvement came from SG&A absorption rather than gross margin expansion.

Let us now look at the 2 reporting segments, starting with Medium & Low Speed. Revenues in Medium & Low Speed increased by USD 70 million or 15.2% to USD 529 million. Organic growth was at 11.3%. Growth was driven by strong merchant marine new build activities, namely in China. Service growth was supported by fuel efficiency upgrades, a growing number of vessels under full-cover service agreements, and continued high utilization in merchant marine and cruise. Service activity for medium-speed energy applications also increased, supported by regular maintenance and reliability-driven investments at power plants. Fuel injection revenues developed in line with expectations.

In terms of operational EBITA, this increased by USD 19 million or 16.1% to USD 135 million. The operational EBITA margin increased by 20 basis points to 25.5%. The mix effect from strong growth in the lower-margin product business was more than offset by aforementioned structural leverage.

Let us move now to the High Speed segment. High Speed delivered particularly strong growth in the first half, continuing its growth trajectory. Revenues increased by USD 60 million or 40.0% to USD 209 million. Organic growth was at 35.5%. Revenues from turbochargers in gas-fired prime power applications for data centers in the U.S. continued to grow, supported by capacity expansion at engine OEMs.

As Daniel explained, revenue growth in diesel-fired backup power was constrained by OEMs' capacity allocation to prime power. In gas compression, demand in North America remains strong. Investments in pipelines were supported by increasing domestic and export demand for natural gas. Service revenue grew strongly, driven by sustained U.S. natural gas demand. This supported continued momentum in turbocharger remanufacturing activities for gas compression applications.

Service revenues from stationary power applications remained stable, while the installed base continued to grow. Operational EBITA increased by USD 16 million or 41.6% to USD 55 million. The operational EBITA margin increased by 30 basis points to 26.2%. Additional costs along the value chain were more than offset by strong structural leverage in High Speed.

Let us now move through the bridge from operational EBITA to net income. Starting on the left, operational EBITA amounted to USD 190 million. Moving to the right, one-off and non-operational items included the temporary unrealized foreign exchange gain of USD 1.7 million. This resulted from the strengthening of the U.S. dollar against the Swiss franc and timing differences between payables and receivables.

Other non-operational items, pension costs, and M&A activities totaled up to USD 3 million. Acquisition-related amortization amounted to USD 1.7 million and was linked to OMT, OMC2, and True North Marine, the 3 acquisitions completed since the stock listing. The effective income tax rate was 19.1% compared with 19.6% in the first half of 2025. The decrease mainly reflects the geographic profit mix and the higher share of earnings in lower tax jurisdictions. Net income reached USD 151 million, an increase of 31.5% year-over-year.

Let us go now to the free cash flow section. Free cash flow reached USD 88 million, up from USD 81 million in the first half of 2025. Cash conversion stood at 58% compared with 70% in the prior year period. Net working capital and other increased by USD 52 million. The change in net working capital and other was mainly due to an increase in volume-driven receivables, slightly higher DSO, and the normalization of the income tax accruals. Trade payables and inventories grew broadly in line with volumes. Consequently, net cash provided by operating activities increased to USD 119 million.

Let's now move to the capital expenditure. This position increased by more than 40% to USD 31 million. The increase reflects continued investments in manufacturing and R&D infrastructure upgrades, equipment renewal, and additional production capacity across the globe. These investments are intended to strengthen operational resilience and prepare the business to meet future customer demand.

With that, I'm handing back to Daniel for the market update and outlook.

Thank you, Adrian, for the detailed review of our strong half-year financial performance, I will now address the marine and energy markets, our capacity investments, and the outlook for the full year. Merchant marine new build markets remain favorable. Ordering activity remains strong across the major vessel segments. Tankers are leading, supported by gas carriers, containerships, and bulk carriers.

'27 and '28 deliveries in tonnage terms are expected to reach record levels, supported by ongoing capacity expansion in China. So it's clear the majority of expansion will happen in China. We don't really see a lot from Japan and Korea. Despite these capacity expansions, ship orders continue to outpace deliveries.

This is reflected in the steadily growing orderbook measured in millions of compensated gross tons, in short, CGT, as shown by the light purple area in the top right chart for 2026. Orderbook forward cover has risen to more than 4 years, as illustrated by the blue line in the top right chart or put differently, a ship ordered today would in average be delivered in 2030 compared with a typical lead time of 2 to 3 years under normal market conditions.

This reflects a substantial backlog relative to current shipyard output and supports long-term utilization of yards. At the same time, annual deliveries of 4% to 5% of world active fleet remain reasonable. Please refer to the right bottom chart. The current delivery capacity implies a fleet renewal period of around 20 to 25 years despite the recent acceleration in shipbuilding activity.

Energy momentum also remains strong with sustained demand for prime power, backup power, and gas compression applications in the U.S. Power grid constraints and gas availability are driving demand for gas-fired prime power applications at U.S. data centers. Given the long lead times for grid connections and the political pressure to avoid passing the cost of new power generation capacity and grid expansion on to utilities and ultimately, residential customers in the U.S., BYOP or Be Your Own Power is increasingly becoming the norm for U.S. data center operators.

As mentioned before, our backup power remained broadly flat year-over-year because OEM capacity was allocated to prime power applications. Increasing manufacturing capacity and order backlogs at engine OEMs support future growth for prime power, backup power, and gas compression applications. The growing prime power installed base should also create service opportunities over time.

We expect the main service effect to materialize with a lag of approximately 3 to 5 years after the power plants become operational, and that's depending on their operating regimes. In gas compression, growing domestic and export demand for U.S. natural gas supports investments in gas infrastructure. Pipeline expansion and rising throughput requirements continue to drive growth in gas compression.

More pipelines translate into more compressor stations driven by gas engines, especially on lower flow pipelines. Typical applications include gathering pipelines that connect shale oil and gas wells to major transmission pipelines. For transmission pipelines that have a higher flow rate by default, gas turbines are generally preferred because of the higher power requirements.

Let us now compare our current market assessments with the outlook we presented in March this year. This slide shows the position as of March 12, following the full-year results. All segments with the exception of specialized vessels show positive momentum with particularly strong growth in medium and high-speed power applications. The updated view confirms positive market conditions overall with some shifts within the portfolio.

In merchant marine, we see higher demand for new turbochargers, especially for tankers and bulkers supported by growing Chinese shipyard capacity. The service business, both transactional and through service agreements, continues to offer attractive growth opportunities, supported by an installed base that has expanded significantly in recent years. Growth in upgrades and retrofits is expected to level off. The corresponding order backlog accumulated in recent years is being worked down, while the postponement of the IMO Net Zero Framework has reduced near-term demand.

In energy, the outlook has improved for high-speed gas power and gas compression, reflecting data center-related prime power demand and strong natural gas infrastructure activity. The high domestic demand for natural gas is as well, among other things, driven by the growing electricity demand from U.S. data centers. The outlook for backup power has weakened compared with March because OEM capacity allocation limits our growth despite continued end market demand. So overall, robust demand in marine and energy supports the raised full-year guidance.

The strong growth in recent years requires increased investments, but we are maintaining flexibility in how we expand capacity. Overall capital expenditure is expected to reach around 5% to 6% of revenues in '26. Since the stock listing in '22, Accelleron's business volume has almost doubled, mainly driven by the marine business, bringing Swiss manufacturing operations close to capacity limits.

Higher CapEx reflects investments to strengthen operational resilience, expand capacity, and support future growth in marine and energy. For the '26 to '28 period, around 20% of planned investment is allocated to manufacturing and R&D infrastructure upgrades in Switzerland, around 50% to equipment replacement, and around 30% to additional production capacity. Almost 2/3 of the investments are in Switzerland. The remainder is mainly in China, Italy, and the global service network.

Our balanced keep, invest, buy approach provides the flexibility to adapt capacity to evolving long-term demand scenarios while remaining mindful of the risk of overheating demand, especially in U.S. data centers. By accelerating replacement investments and extending use of existing production equipment, we can temporarily increase capacity for some years to come. In parallel, we are leveraging our strong partnership with long-term suppliers to outsource a greater share of production.

Let us conclude with the updated financial guidance for '26. Based on the strong half-year performance and the positive dynamics in our core markets, we are raising the full-year '26 organic revenue growth guidance to 14% to 17% from previously 9% to 14%. The raised guidance reflects the structural growth drivers in both markets. We confirm the operational EBITA margin guidance at 25% to 26%.

The guidance assumes that the current market and geopolitical environment do not materially deteriorate. The guidance excludes any potential refunds of U.S. tariffs. If such refunds occur, revenues will be reduced by the amount passed on to customers, while the operational EBITA margin would increase mainly for the portion retained by Accelleron.

Thank you for your attention. We are now happy to answer your questions via chat or telephone. Michael Daiber, our Head of Investor Relations, will moderate the Q&A session. So Michael, please.

Thank you very much, Daniel and Adrian, and welcome to the Q&A session. Please take note that questions that come in by the chat tool might be combined. [Operator Instructions] I would now kick off with the first questions from the phone.

[Operator Instructions] Our first question comes from Daniela Costa from Goldman Sachs.

I have 3 questions, if possible. I can ask them one at a time to make it easier for you. First, I think you made a quick reference in the presentation to pricing. I was wondering if you could give us some color on how much really it contributed in the first half to the 17% organic? And what do you have baked in into your guidance?

Yes. Thank you, Daniela, for the question. I mean, we refer to an organic growth of 17.2%, roughly thereof 14 percentage points volume that leaves 3 percentage points. One is basically that the direct pricing, I think, is fairly marginal in the sense of something of 0.2% to 0.3%. We have then the tariff piece, which we priced in and passed on. I would say, this direct pricing plus tariff roughly amounts up to half of it. And then we have 1.5-plus percent is the indirect, and that comes through the fact that we have a Swiss franc price list and we invoice in certain occasions in Swiss franc. So that's a twofold 3 percentage points as discussed.

Yes. That's very clear. And then can you talk a little bit about how long sort of is your backlog visibility now for marine and for data centers? What share of 2027 revenues are already covered in the backlog, if that's an easier way to comment on that?

I think in general, at group level, we still talk of 4 to 6 months. It isn't much more in terms of really having firm orders at hand. Yes, we obtain demand signals from our customers, which we obviously need to plan our value chain accordingly. It then boils down in the Medium & Low Speed, we usually have a bit longer order windows, while in the High Speed, it can go down to 6 to 8 weeks. That's the visibility with firm orders, but obviously, there is more the demand signals which give us a certain comfort, but which are ultimately not committing. Daniel, anything I forgot to mention probably.

I mean, we have some orders, but we see high dynamic in prime power that some customers then are delaying some of the orders because they are not as fast in ramping up their capacity. So it's quite a dynamic and fluid outlook now, but that's a bit what we are struggling with.

And then you've kind of comment on the capacity increases on the OEMs on the prime power side, but you're increasing your own capacity as well. Should we think about sort of the grade of magnitude that your volume ability will increase your planned volume capacity, let's say, in '28 or '29 when the OEMs finish their capacity increases in relation to where you were in '25, what sort of grade of increase should we think? You've mentioned in the presentation that you doubled -- the volumes doubled from 2022. Should we think about a similar increment or...

No. Thank you, Daniela. Fair question. So let me break it down. So an important piece is now the investment in infrastructure. You can consider, more or less our shoe size now has become too tight, and we now need to move to a new shoe size. That's why we said we're investing in the infrastructure. And that's mainly in Switzerland, where just the shoe size is too tight now, and that's mainly driven by marine. Also in Italy, where we said we need to also invest. China is so far okay. Also here, we need to, but more or less the 20% now we're investing or 25% is now really in the infrastructure increasing the shoe size.

And with this shoe size, we believe we can increase the revenues by another 1/3 in the long run. So -- and the rest -- and this is excluding production equipment. So the production equipment, we do incremental based on the feedback we got from the customers. So with the infrastructure, you can't say what's '27, '28, but we are building an infrastructure, which gives us now some runway for the next 5 to 10 years, depending how fast the feet are growing. So -- and the rest of the equipment we will do based on what we believe makes sense for the next year and the year to come.

The next question comes from Sebastian Vogel from UBS.

I have also 3 questions. I would ask them one by one. The first one is with regard to the revenue share coming from services for your 2 segments. Can you give us some sort of rough ballpark indication what are the latest numbers there?

Yes. Let me quickly check. I don't know all the numbers by heart. But if I'm not mistaken, we are about 1/3 product and 2/3 service, plus/minus.

And that is on the group, but how would it look for High Speed and low -- Medium & Low Speed in specific?

Here, I need to check whether we have the details. Okay.

I mean, we have seen there in the High Speed a bit of an accelerated growth because of the gas compression piece. As we mentioned, the pipelines are running and need maintenance, respectively, to turbos. But we have seen as well a healthy growth level on the Medium & Low Speed, but definitely a faster growth on the High Speed, but we do not guide on that level ultimately clearly said.

Sure. Second question would be on gas compression. If I'm not mistaken, in the past, you were alluding to that it's around like 9% to 10% of your Group revenues. Can you give us an update there? What would be roughly the latest share?

On gas compression, that's about 12%.

Great. And then a follow-up question, as a third one with regard to the pricing. I mean, I'm not sure if I got it correctly there. But the full-year pricing ambition on your side, can you add some color there?

I think it will not significantly change to what we have for the half year. We have not, in general, raise prices. It was more point-to-point and that 0.3% for the half year, I would expect that not to fundamentally change for the full year.

The next question comes from Uma Samlin from Bank of America.

Two for me, please. The first one is on your operating leverage. I guess you increased your guide on growth, but the margin guidance stayed the same. I understand that you have a lot of investment going on this year with equipment, et cetera. How should we think about that operating leverage going into next year? Would you expect to have a potential for any margin upside into...

Yes. I think important to understand this year, with the accelerated growth of our products versus the service, we have a bit of headwind as products in average come in at a lower margin, but still in average, clearly green or positive. The investments, you're right, we do have by ramping up capacity. We have a bit more people around, meaning efficiency end-to-end is not perfect.

We sometimes have to rely on second source suppliers, meaning the first one is already fully booked. Consequently, costs are a little higher than maybe with the first source. We sometimes have to air freight instead of sending our goods with the vessel consequently as well, there are some additional costs.

Ultimately, if we keep growing that quickly, then yes, we are not, let's say, end-to-end perfectly efficient. And if the product keeps outgrowing the service, then I believe that 23% to 26% is the bandwidth with a clear ambition to stay in the top, but we remain open as well to invest in future capabilities, is it in respect to growing our R&D on the fuel injection side, really towards the medium speed or then investing into our AI capabilities to improve our productivity and set up end-to-end.

That's super clear. My second question is on the backup power growth. I guess it seems like -- versus what you initially expected, the growth was a bit lower on the backup side so far this year. I guess that seems to be more related to the OEM capacity constraint rather than the demand side of the equation. So how should we think about that going forward? Do you expect that growth to come back later this year? Or that will be more into 2027?

Look, that's difficult to say. I mean, we are in close contact with our OEM customers, and they are struggling now with how do -- how shall they allocate now the share of the capacity? Is it prime power or backup power? Look, for us, I would say, I'm more in favor of really prime power because definitely, this will create much stronger service business in the long run, while backup power is one sale and most likely we'll never see the turbocharger anymore. So I'm either way. If I could decide, definitely, I'm in favor of prime power.

The next question comes from Alessandro Foletti from Octavian.

Just one remaining, if I may. On the data centers, you mentioned a lot of business in the High Speed system -- in the High Speed segment. But when I look at what Wärtsilä has been saying and so you should have also some data center-related business in Medium & Low Speed segment. Am I correct? Or is it too small to be relevant?

Alessandro, you're 100% right. We have medium speed power. We don't differentiate because it's one big pocket. It's high speed and medium speed. Now there's definitely growth. But just to be clear, the high-speed gas is much bigger than the medium speed just because of capacity. There are more players and they have either deeper pockets or they are just investing more in the growth. But all in all, as I said, medium speed and high-speed gas, they're all delivering to prime power data centers.

Before the questions from the telephone line will continue, I will ask some questions or I will read some questions that have been asked through the Q&A tool. First one is from John Kim from Deutsche Bank.

Could you please comment on how your market share looks to evolve given the respective build-out plans from the different OEMs, for example, Caterpillar, Wärtsilä, INNIO. Should we think of your market share as fairly evenly distributed about the OEM designs? Or is Accelleron over-indexed to certain OEMs?

Thanks, John. I'll take that one I think we should separate between high-speed gas and medium speed. On the high-speed gas, where we have 80% market share, it's probably fairly to assume that we have quite an evenly distributed among the OEMs. So -- and we are participating and that's why we are very close in contact with all of them.

On the medium speed, there are some engine OEMs that have their own turbocharger where we have 0. So here is definitely a slightly different game. And here we are between 40% and 50% over the whole. That means where we deliver -- if you do the math, you know the math, the average. So that means we will have a higher market share on those where we deliver, while on some we have 0. But again, the growth, we don't expect that our market share will change with the corresponding OEMs we have already.

Next question was from [indiscernible] from AWP. You have not seen a significant impact from the conflict in Middle East. So will high freight rates not lead to some service delays?

Yes. I mean -- thank you. No, we have not seen anything. I mean, there's still enough idling around and still some enough spare capacity. And I mean, the Middle East is mainly on the tanker, it's not on the container. So the container, there's enough, I would say that they can absorb everything. No, we have not seen any delays.

The second question is about our expectations regarding the timing and order impact of the IMO Net Zero Framework.

Yes, that's the famous crystal ball questions. Look, my personal opinion, I don't see any near-term change here in the IMO. It will be paused, and we'll see whether it goes ahead or not. But as I said, the decarbonization of shipping definitely needs a global regulation. But we see regional regulation and we see investments, especially in the high-value ships like container, gas carriers and so that they do efficiency improvement, but it's on the cheaper vessels, there's not a lot of investments going on here.

Good. One last question from the chat tool before we go further to the telephone. It's from Kevin An from Woodline Partners. Given your roughly 80% market share in high-speed gas engine turbochargers and strong ongoing demand, why is direct pricing contributing only 20 to 30 basis points? Are contractual pricing agreements limiting near-term service price realization?

I can take this, and thank you for the question. Let's take a step back in the High Speed, especially on the product side. Usually, this is governed by means of contracts which are linked to index-based pricing, meaning this is reflecting a 6 to 12 months delay or in the price realization is carrying over the inflation part. We have not seen inflation lately soaring. Consequently, we do not see a lot of price realization at this point. But as mentioned, we were able to share the burden in respect to the tariffs and pass there on more than 50% in average, as I said in the full-year presentation as well.

And probably just to add, again, as Adrian already said, a portion of our pricing is in Swiss francs. So there's an indirect price increase. So where we don't have this long-term contracts -- pricing contracts or frame contracts, we have to be careful. I mean, we should not overdo. But we always said we are in partnership. So we share pain and gain. So -- and we don't want to take advantage. So we are fair partners. I think that's more valuable and this will give us a stronger long-term perspective instead of taking short-term advantages.

Back to the phone line.

The next question comes from William Mackie from Kepler Cheuvreux.

I have 3. Let's start with regional first. Exceptionally strong growth, both in China and in the U.S.A., 43% and 41%, I think, in absolute terms. Would you -- how would you characterize the growth in those regions? I mean, I think you've called out merchant shipping in China, but was that all of it? And obviously, High Speed and prime power in the U.S.A. But again, was that all of it? So is there -- are there other factors underlying those 2 points that you've already made?

Thanks for your question. Let me -- I mean, product business is recognized where the customer is sitting more or less. So -- and here on marine, more or less 100% of merchant marine is still all in Asia and more and more in China. I would say, now the share is about 2/3 China and 1/3 Korea and Japan. Only a few cruise ships are still built in Europe. So -- and that's why in China, definitely the big growth is coming from the product business.

The service business is more or less allocated to where the shipowner is. So it could be in Greece when the service is done with the Greece shipowner or also with China. So here, it's a diverse picture. So -- but again, Asia, mainly driven by new build marine. U.S. is mainly driven by gas compression, especially now in this first half year of service. We have not seen so much take-up when it comes to product and the other one is the prime power in the U.S. So again, U.S. is very strongly driven by energy.

That's great. You called out -- the second question relates to somewhat your budgetary planning or your expectations. You called out product growth in H1 up 30%. As you look at your planning for the year, what level of growth do you think or are you expecting to manage in the second half of the year that fits within your full-year targets?

What we see is more or less we don't expect the second half year to be significantly different from the first half year. So we expect more or less -- if you do the math and so that means in the first half year, product business and service business grew in absolute terms the same, and we expect to be the same also for the second half year.

That's helpful. And then when we think about capital allocation, your balance sheet is relatively strong and certainly, the nature of your business model could support more leverage. You've undertaken, I think, 3 acquisitions since the spin. How are you thinking about capital allocation beyond the CapEx that you've mentioned today with regard to bolt-on M&A or perhaps extending your current buybacks?

I mean, again, I think first and foremost, you're right. We want to support our business organically, and we keep investing. That will continue. And Daniel has pointed out 5% to 6% of revenue, plus/minus we expect to land. Additionally, yes, we have a commitment for a stable to slightly growing dividend, clearly. And then it all boils down to the opportunities, right, on the inorganic side, where we want to stay disciplined and selective.

But we have to say, yes, we are working on our pipeline. And if nothing then materializes, obviously, a share buyback is then the adequate tool to return excess cash. That has been always our philosophy, and we will stick to this.

I mean, there's not more to say. I mean, we can't give any forecast of any M&A, but it's clear. As I said, we have seen some interesting possibilities, and we will capture them if and when they arise. So please be patient. We'll see how the world will develop. But important is a strong balance sheet doesn't lead us to making stupid moves. So we will be selective and disciplined and capture when it's interesting, that means if it fits for our business and if it comes with a reasonable price.

The next question comes from Adrian Pehl from ODDO BHF.

Actually, I've got also 3, maybe do them one by one. The first one is actually because also you were referring in the presentation to you're planning not to overdo it on capacity on one hand. On the other hand, some customers appear delaying some bookings on getting things on the ground in prime power. I was just wondering from your perspective, does the funnel see any changes versus, I don't know, 6 months ago or something because also one of your largest -- sorry, largest clients has actually -- signaling that there could be some peak situation in Q2 on order intake on the data center side? That's my first one.

Yes. That's definitely an interesting question. We would be happy if we knew the full truth. I mean, the good thing is we are very strong in this business, and we have frequent exchange with our customers. And I tell you, sometimes they mix firm orders with capacity plans and so on. So we want to be careful. But as I said, we have the infrastructure set up because that's the, I would say, the longest lead item we need to increase capacity. And the rest we can react very fast. I mean, also in Switzerland already, we have hired 100 people more just to manage the growth here. And we'll do that going forward.

Again, the outlook is great, but also depending on what you read, some are very skeptical, some are very hype. Some customers are a bit more careful and some go full steam. We have to make sure that we deliver because we don't want to lose those customers in this time, and we are very confident that we can deliver whatever they need and whatever they order. But request for capacity is still not in order. So we have to be careful here not to mix up capacity and firm orders. But for the time being, the way forward looks good. But again, we want to be a bit mindful.

Understood. And then the second question is actually quite a bit related to this, but from another angle because -- I mean, phrasing the question about what happens to your margin a bit differently because I think at the end, what you delivered is really quite strong because you had this strong increase on the new build activity.

So you must have had quite some efficiency measures. And I was wondering if you can talk a little bit about this because it doesn't seem that really pricing is the source of this strong margin. Anything on that? Did you increase outsourcing? What did you do on efficiency?

And then this is linked to what should we think about the future? Is there anything that spills over into 2027, which makes us more positive on that you can conserve a higher margin? That's the second one.

I mean, I can take that. First and foremost, thanks for looking through this lens. Usually, we are asked why isn't it increasing. Indeed, I mean, with the high product business growth, maintaining the margin as such is, I feel as well an achievement. You need to see our DNA is all around continuous improvements, and we keep improving.

And obviously, yes, labor costs keep increasing. So we need to stay on the productivity. We use all means. That's not new to us. That's basically somewhat business as usual. But again, it's year-on-year. You have to deliver on it. And what we always say, I mean, look, we have a certain amount of fixed costs and then the leverage effect can be felt.

And this time, we see it especially on the SG&A side, right? Our finance, our IT, our HR, our communication and so forth, our management costs are obviously not scaling with revenue and that helps because you see that the gross margin over the years is having a little bit of headwind through that accelerated product business growth, while with the structure, we really can offset this, can maintain and if not even, slightly expand our EBITA.

In respect then to next year's margin, I think we have pointed out it remains our ambition and goal to stay in the top third of our margin corridor, 25% to 26% is what I can reconfirm at this point. That's our ambition. But with a specific guidance, we'll get back as always in March.

All right. Fair answer. And then the last one is actually a bit on marine. When you are saying actually that tankers and bulkers have been growing more in general, I mean, the growth that has been taken place in China, I assume that it's rather a 2-stroke growth than a 4-stroke growth probably. And I was just wondering what this does to your mix and that said, revenue and margin profile, 2-stroke versus 4-stroke, that would be helpful.

Probably let me explain that. The large ships have always a 2-stroke and 4-stroke engine. So the 2-stroke is the main propulsion and the 4-stroke are the auxiliary engines that produce electricity required also on those ships. But there's -- probably also you're referring to, there are ships that have a pure 4-stroke propulsion but then very often, we talk about cruise ships or special vessels.

And that's very often, as I said, cruise ship is mainly in Europe and also a lot of special vessels here. No, but all in all, we don't see a difference. I mean, we are on large ships and whether they are main propulsion 2-stroke or main propulsion 4-stroke, we have equally strong positions in both segments and margins are similar.

The next question comes from Bhawin Thakker from Bloomberg Intelligence.

I do have 3. I'll take one at a time. So out of the close to 9% revenue share that you had from data center end market, could you please provide a split between what -- how much was prime power and how much was backup power?

Yes. Let me quickly check. So I mean, I would say, if my eyes are correct, then yes, I would say, almost 2/3 came from prime power. So because more or less the backup was stable, while the whole growth in data center was coming from prime power.

That's great. And at your full-year results, you had provided like an outlook for mid-double-digit growth to the prime power revenues for 2026. Is there any revision that we should consider to that outlook or that remains unchanged?

I think we were highlighting that we would expect to get closer to 10% of Group revenue with basically the data center overall for the full year. And I think, with being now close to 9% and expecting a bit of further growth in H2, I think that still holds strong. As always said, if we can deliver a bit faster, customers might be quicker able to ramp up, and it's a bit more or it might be a bit less, but around this, I think that's where we are and on track for.

Okay. And for services, with like 15% growth in the first half, are you able to provide growth by end market as to how much was the growth in the marine end market? And what was the growth in energy?

I mean, look, I would say the strong growth came in 2 fields. One was merchant marine. So merchant marine overall contributed to the overall growth by 1/3. And I would say, half of the business was new builds and the other one was from service, regular maintenance, high installed base and upgrades. And the other big share of growth was in oil and gas compression, remanufacturing. So a lot of the engines are now running, transporting or forwarding all the gas and that created the service growth.

We have a follow-up question from Sebastian Vogel from UBS.

Yes. Sorry, 2 follow-ups, if I may. First one is on gas compression. If I'm not mistaken, you said that there was like 12% revenue share in H1 this year. I was wondering what was the share last year? And another question would be on the tariff side of things. So tariff refunds, there was nothing in H1 2026. Is that the right understanding?

I mean, I can take both. I have it. The gas compression, I think, was last year more like around 9%, and it grew now to roughly 12% of Group revenues in H1 '26 versus '25. That's what I concluded on the table at hand. And for the tariffs, I would say, clearly, the vast majority of the refunds we expect still to come that there was a very minor one in H1, which was not material to be mentioned. Now it's hopefully to come. We have filed our application and expect that hopefully to come in within the next 30 to 90 days.

Probably just quickly on gas compression, it's a bit cyclical business because it's not always final customer end demand. There's a lot of inventory in between. And I think we had in '23 or '24 already this issue that there was over demand in 1 year and then our customers and their dealers realized they had too much in inventory. So here, we would be careful to draw a trend as we see quite a cyclical behavior in the gas compression.

We have another follow-up question from William Mackie from Kepler Cheuvreux.

Yes. I wanted to just come back to the question of the market outlook. And going back to your Slide #8, when you talk about data center power, I guess, first of all, to set the base, from your perspective, as you ship turbochargers for prime power or backup power, when you think of the product rather than the service stream later, are you indifferent? What I mean is, are they similar revenue opportunity and gross margin contribution opportunities across prime and backup applications? That's the first question just to set it.

And then when you talk about H1 '25, around 2 gigawatts of install and H1 '26 around 5 gigawatts of prime power. When you look at your I don't know, consultants or your reviews. What is your planning assumption from your customer base for gigawatts installed in prime power going into H2? And how are you thinking about the '27, '28 outlook at this time?

As I said for the second half, we expect a similar trend like in the first half. The outlook is interesting because we get now all the demands from all our customers with 80% market share on high-speed gas and almost 50% market share on medium speed. We more or less see the full demand from the combustion engine. The funny thing is when we add everything together, then it's bigger than the whole market, ignoring that there are gas turbines also supplying.

So that's a bit the struggle we are in because we have now full transparency and then we go to International Energy Agency and compare that one. And then it would mean that all the combustion engines would take the market and even bigger than the market. So that's a bit of a challenge, and that's why we are very cautious now for the time being to say any meaningful things for the '27, '28. We are now in close contact. We are sharing, I mean, not the detailed data from whom we got what data, but we confront them and more or less tell them, look, that's what we got. Somehow it doesn't work together.

And here now, I think we are moving ahead and customers again going through. I mean, lot have confirmed orders, but also a lot is based on forecasts. And here, we have to be careful. And for the time being, it's premature to give any information on '27, '28.

And maybe to the gross margin question, I mean, we were always clear that prime power means really sizable and fruitful service business opportunity, while on the backup, this is very, very limited. Consequently, we have different service expectations. And therefore, in that sense, life cycle-wise, prefer the prime power business because that comes with service opportunities while backup is very, very limited.

If I may, just to follow on a little. You've highlighted where your CapEx is going to be directed in Switzerland and Italy and China. But when you think about capacity constraints across the system now, where do you see internally your most constrained operations? And if you look at the supply chain, do you see any sort of feed-in suppliers that appear capacity constrained to you for your business?

No, we don't see it with suppliers. I think the market is good that we get enough. Then when we take a look, there's -- I think we have some productions that we still have enough capacity. On some, we are now really getting to the technical limit. But I mean, more important is that we now build the infrastructure because we get machine equipment fast enough to increase.

So I'm not worried about the production. Now that's why the focus is really on expanding our infrastructure, getting more square meters. And for example, here in Switzerland, now, we are moving things about warehousing or assembly outside of [indiscernible] becomes mainly a production place, and we have now rented some good warehouse and space where we can do assembly.

So for me, really, the main focus is getting the infrastructure ready. The rest is not an issue because our customers need much longer to ramp up the capacity. We can always be in the shade or shadow of what they are ramping up. So we have enough early information that we can invest in the production equipment also in people that we are ready when the customer is ready.

[Operator Instructions] There are no further questions. Back over to you, Mr. Bischofberger, for any closing remarks.

Thank you for all the interesting questions. I hope you got all the information you need. And thanks for joining, and hear you soon again. Thank you. Goodbye.

Thank you. Bye.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Hello, everyone, and a warm welcome to the Acceleron Full Year Results 2025 Investor and Analyst Conference. We are happy to have you as participants here in the room in Zurich as well as remotely via webcast.

For the in-house participants, here is a short safety announcement. In case of an emergency, please stay calm, follow the signs, go down the stairs outside to the gathering point in front of the building. For everyone now, the ones in the room and the remote participants, please take note of the safe harbor statement.

The presentation today contains forward-looking information that naturally comes with uncertainties. Furthermore, figures in the presentation are in U.S. dollars and were prepared according to the U.S. GAAP accounting standard. After the presentation by Daniel and Adrian, there will be a Q&A session where you will have the opportunity to ask questions. If you're here in the room, it's simple, you just raise your hands. [Operator Instructions]

And for now, I will hand over to our CEO, Daniel Bischofberger.

Michael, as usual, thank you for the introduction. So welcome, everyone, to the full year results conference today. And besides Michael Daiber, I guess you very well know him from all the roadshows we are undertaking. As usual, I'm also joined by Adrian, our CFO.

So here's the agenda for around the next hour. So we will start with the key highlights, 2025. Adrian will then take over and talk about the financials of '25. I will then conclude with a closer look at the marine and energy markets and the outlook for 2026 and of course, including the guidance.

Besides the financials, the postponed adoption of the IMO Net Zero framework and as well as the prime and backup power application for the energy market will be the focus topics of today. And of course, as already said, there's a usual Q&A session at the end. And for those here in the room, you are more than welcome then after us to join for the networking lunch. I guess with that being said, let's go to the presentation now.

So in 2025, Accelleron delivered another year of outstanding growth and profitability. While the marine market remained resilient throughout the year, the energy markets emerged as a powerful additional growth driver, especially with demand for backup for data center prime and backup power solutions.

Building off on the success of 2024, we reached new heights in '25. Revenues rose to USD 1.26 billion, increasing by almost 24% year-on-year. This achievement reflects both strong market fundamentals and our continued ability to capture market share in attractive segments. The operational EBITDA was up almost 23% to USD 321 million. Despite U.S. tariffs, the operational EBITDA margin was only slightly below last year, namely 25.4% in '25 compared to 25.6% a year before. Net income increased by almost 36% to USD 224 million, and free cash flow conversion stood at 88%.

In summary, last year, we again demonstrated that we could grow profitably even in a challenging geopolitical and macroeconomic environment. When you look at revenues, operational EBITDA and net income from '23 to '25, so when we went stock listing. You can see that all increased year after year. Growing profitably by well over 20% in '25 is not a matter of cost, particularly while gaining market share. Net income more than doubled from '23 to '25. The higher net income enables a dividend increase of 20%. So the Board of Directors will propose a dividend payment of CHF 1.50 per share to the Annual General Meeting on April 28.

In addition, we will launch our first share buyback program totaling CHF 100 million, in line with our capital allocation framework and hence, delivering on our promises. The program is expected to start in the second quarter of this year and is planned to run for 2 years. It will be executed on a second trading line on 6 Swiss Exchange, and we intend to use the capital band for the cancellation of the shares repurchased under this program.

So enough about figures now, let's look at some of the highlights of '25. With our activities last year, we expanded our capacity offerings and reach on the one hand, and we help to shape pathways for decarbonization on the other hand. We signed service agreements in both marine and energy with a total value of USD 150 million in '25.

By way of example, we signed our 50th turbo marine full cover service agreement in December. So reflecting the growing adoption of fixed cost service plans among ship operators. These milestones demonstrate customers' confidence in our global service network and our long-term value proposition. The photo you see on top left is of a power plant in Alaska. With the utility running this power plant, we signed a record-breaking 17-year Turbo SmartCare agreement. Our mission is to maximize uptime and maintain critical power supply in such a remote and demanding environment where skilled labor is scarce and expensive. Demand for marine upgrades remained high with EPLO and FiTS2 upgrades expanding by 45% year-on-year. We also executed reliably at scale, producing over 22,000 turbochargers, a new record.

Just as a reminder, in 2020, when we went on the Swiss Stock Exchange, we produced around 10,000 turbocharger, less than half of what we produce today. In fuel injection, we kicked off a multiyear investment program to expand manufacturing and R&D capabilities. The investments in Italy, including OMT's new technology center in Turin, support global demand for fuel injectors and reinforce our position in future fuel applications. We also expanded the reach of our digital solution through partnership in South Korea and Japan. This collaboration will promote our LOREKA360 and Turbo Insights offering, enabling broader fleet coverage and deeper insight for our customers in across Asia.

Our net zero reports published last year are steering industry dialogue about decarbonization. The first highlights -- the first report highlights the need for shipping to pull its carbon-neutral fuel demand with other so-called hard to abate or hard to decarbonize industries. These are airlines, these are cement industry, agriculture industry to accelerate the energy transition. The second report illuminates the cross-sector pathway for scaling e-fuels in Asia Pacific. It highlights the region's emerging role in demonstrating how green hydrogen-based e-fuel networks can be built, connected and scaled, supported by industrial policies of countries in Asia Pacific. So we clearly see in Asia, they are not waiting for any regulation.

Based on industrial policy, they will start producing these e-fuels. And over time, especially considering the huge base in China, for example, they will get the cost down to quite a competitive level. So Asia is moving, while Europe has great regulation, but not the clear way to help the production of those fuels. Finally, the science-based target initiatives, in short, SBTi approved Accelleron's near-term climate targets for 2030, making an important milestone for the company. So this independent approval confirms that Accelleron's climate goals, which are to reduce Scope 1 and 2 emission by 50% and Scope 3 emissions by 25% by 2030. And this is the baseline of 2023, are in line with the Paris Agreement's objectives. So all in all, it has been a very busy year for all of us, but equally rewarding for all of us.

Let's move on to the next slide. I'm pleased to say that we have successfully integrated True North Marine, the Canadian company we acquired in '24. In doing so, we can now promote our digital solutions under the umbrella of LOREKA360 to a combined broader customer base. So for example, Acceleron's OptiHull module is being sold now to True North Marine customers. But vice versa, also the True North Marine OptiNav AI module is being sold to Acceleron's customer.

Through the True North Marine acquisition, we have gained additional capabilities. We now have ex-seafarers in the team, supported by AI-powered tools who play an increasingly important role in providing remote operational advice to ship charters. OptiNav AI is a great example of this. So the solution delivers AI-supported voyage optimization, combining weather, routing and vessel-specific performance models. In an OptiNav AI trial with COFCO International last year, we could demonstrate significant fuel savings, emission reduction and cost savings.

COFCO International is a large agricultural trader -- commodities traders and major shipowners. So across 13 ocean-boarding voyages, we achieved an average fuel saving of 3.5%, reduced CO2 emission by more than 1,000 metric tons and achieving cost savings of 2% to 3% on average per voyage. And importantly, these savings have been achieved by no CapEx investment on board or any installation on the ship.

With those remarks, I conclude my first part, and I will now hand over to you, Adrian. Thank you.

Thank you, Daniel. Let us now take a closer look at our strong 2025 financials, starting as always with the group performance. Our core markets provided an encouraging backdrop in 2025. We saw positive market momentum throughout the entire year and continue to deliver for our customers, resulting in market share gains in both marine and energy. Growth in 2025 outpaced the upgraded expectations we set in summer, largely driven by higher volumes and direct indirect pricing effects. Indirect pricing effects arose from billing in Swiss franc, respectively, the Swiss franc's appreciation versus the U.S. dollar, our reporting currency.

After last year's USD 1 billion revenue mark breakthrough, we accelerated our strong growth trajectory. Overall, our revenues grew by 23.5% to USD 1.263 billion for the full year 2025. In constant currency, we grew by 21.6%, exceeding the latest guidance of 16% to 19%.

Moving to the operational EBITDA, which reached USD 321 million, up by roughly 23% with a margin of 25.4%, only slightly below 2024 and just above our latest guidance of 24% to 25%. The attractive margin was slightly impacted by the strong growth of new business, which outpaced the growth of service, tariff cost and an increase in warranty provisions.

Finally, moderate cost inflation was largely offset by price increases and productivity initiatives. The next slide depicts the performance of the medium, low-speed segment. Our medium and low-speed segment delivered another year of broad-based growth. The Marine business continued to perform exceptionally well, supported by further gains in new build market share and the delivery of more than 1,000 low-speed turbochargers. The cruise service business has returned to pre-COVID levels.

As Daniel mentioned, demand for retrofits and upgrades remained high with EPLO and FiTS2 upgrades expanding by 45% year-on-year, reaching close to USD 40 million in revenue. Demand for fuel injectors also remained strong throughout the year. In China, strong domestic demand and export activity resulted in high revenues from turbochargers for diesel electric locomotives. The segment's revenues increased by USD 156.1 million or 20.2% to USD 929.6 million. On an organic basis, we grew by 17.2%. Our fuel injection business contributed USD 97.6 million. The operational EBITDA margin increased by 10 basis points. A strong increase in new business activity and an increase in warranty provisions, namely linked to the growing installed turbocharger population were offset by operational leverage.

Let's look now at the high-speed segment. In 2025, the high-speed segment's upward trajectory accelerated. Growth was driven by sustained momentum in data center backup and rising prime power solution demand in the U.S. In respect to the U.S. gas compression business, we saw a further demand increase in line with our expectations. Overall, we delivered 15,800 high-speed turbochargers, including a record 8,000 TPX44 units for emergency gensets for data center and other critical infrastructure applications, more than tripling the TPX44 production year-on-year. Revenues in the high-speed segment increased by USD 84.5 million or 33.9% to $333.5 million. On an organic basis, we grew by 31%. The operational EBITDA margin decreased by 70 basis points. The rapid expansion of new business and tariff costs were largely offset by operational leverage.

Now on the next slide, let's go through the bridge from operational EBITDA to net income. As always, starting on the left, operational EBITDA amounted to USD 321 million. Next to it, you can see the one-off and nonoperational cost which amounted to USD 12 million compared to USD 19 million in 2024. Of these USD 12 million, roughly USD 4.5 million were related to M&A activities.

Moving on. We had acquisition-related amortization cost of USD 5.8 million. Consequently, income from operations or EBIT amounted to USD 303 million. The next item is comprised of interest payments, pension income and fair value changes of FX instruments used to hedge nonoperational foreign exchange risks. In total, this item amounted to USD 300,000. One further to the right, we can see the income tax expense, which amounted to USD 59 million. The effective tax rate decreased from 20.6% in 2024 to 19.5%, mainly due to a change in jurisdictional profit mix. And with all of that, you get to a net income of USD 244 million, 35.8% higher than in 2024.

Let's look now at the free cash flow in more detail on the next slide. Free cash flow conversion remained high in 2025 at a healthy 88% despite strong growth and higher investments. Overall, the USD 10 million increase in working capital reflects growth-driven effects and the normalization rather than a deterioration in cash discipline. First, higher business volume led to an increase in receivables, while collection discipline remains strong; second, trade payables normalized in line with higher business activities; and third, inventories increased as we ramped up our production to meet growing customer demand temporarily tying up some additional working capital. Capital expenditures increased by 50%, reflecting our additional investments in our Swiss, Chinese and Italian factories to optimize and expand production capabilities across the globe. As a result, despite Acceleron's strong growth and higher investments, free cash flow increased by USD 37 million to USD 214 million in 2025, underscoring the highly cash-generative nature of our business.

Let me conclude the financial review by providing some color on the capital allocation framework. You might remember our capital allocation framework that we presented 2 years ago. Back then, we highlighted our target net leverage corridor of 0.5 to 1.5x operational EBITDA. Our ambition of a stable to growing dividend, our clear focus on R&D and adequate CapEx to enable growth and the fact that we would return excess cash through share buybacks unless M&A opportunities materialize.

Let me now walk you through how we have addressed and continue to address these components. Based on our strong results and a good cash conversion, we managed to reach a net leverage of about 0.5x operational EBITDA. In line with our framework, this allows the Board of Directors to propose an attractive dividend of CHF 1.5 per share to the Annual General Meeting on April 28, 2026. Additionally, we are complementing this with a share buyback program of CHF 100 million. Daniel said, we plan to launch it in Q2 of this year and to execute it over 2 years.

Let's now look at other components of our framework. To cope with our expected growth, we plan to further increase CapEx for the coming 2 to 3 years to expand our capacity while keeping a balanced approach of make or buy to ensure long-term viability. Consequently, CapEx will amount to 5% to 7% of revenues per annum. We are making these investments from a position of strength, which allows us to keep focusing on organic and inorganic growth and investing in R&D. M&A also remains an active area of strategic interest, where we will invest when it makes sense and opportunities materialize, selectively and disciplined.

Now back to you, Daniel.

Thank you, Adrian. I guess, enough figures and especially enough about '25, and now let's look forward. So in this section, I will address market trends, opportunities and the outlook for '26. That's the only figures you might see, okay, a little bit more figures about the energy market. I'm sure you're interested to see how much is coming from data center. But now let's first start with IMO net zero framework. Just for you, as a reminder for those not so familiar, IMO is the International Maritime Organization. This is a UN body and who is responsible for regulating the global shipping. And the net zero framework is more or less the tool or the incentive or the tariffs, defining the tariffs that should help the shipping to get to net 0 by 2050.

So -- but in Marine, one of the key uncertainty remains this into the IMO net zero framework. While the IMO proposal is clear in its ambition and to move to cleaner fuels and invest in efficiency. The decision has been postponed for at least 1 year due to political opposition and lack of global consensus in this topic. This delay slows the adoption of new fuels and leads to a fragmented regulation across regions. So some region will now bring up the CO2 tariffs, but not aligned and not on a global scale. That doesn't really help shipping. So what we see is now that dual fuel strategies with gas, natural gas or even single fuel with heavy fuel is still viable for probably, unfortunately, a longer time.

As a result, the transition to E methanol and D ammonia so the carbon neutral fuel that should help them to get the shipping to neutrality will create now short or midterm uncertainties, but it will not change the long-term direction of maritime decarbonization. But despite this regulatory uncertainty, the marine fundamentals remain solid. Shipyard capacity is tight. Order books remain at high levels and we do not expect material impact on vessel deliveries in the foreseeable future. For turbocharger, this means stable to slightly growing demand, in line with shipyard capacity expansion. In fuel injection, the slower uptake of dual fuel engines because of this postponement leads to a softening of the annual growth rates more or less halving.

So in '24 and '25, you had 20% growth year-on-year. So we expect now with the more simple fuel injection system or less dual fuel that the growth rate will be still close to 10%. Consequently, we will also reduce the CapEx spending. We still invest, but we don't need to invest so much because the growth rate is not as high as originally anticipated. Retrofits and upgrades remain attractive. With payback case is still intact. So the fuel price is still high enough to motivate the ship owners to invest in upgrades and fuel savings. However, without the global unified carbon price, the upside for higher returns is currently limited. So after a very strong growth of 45%, as already mentioned, we expect revenues from upgrades and retrofits to remain at broadly on these high levels also in '26.

So -- but now let's take a look on the energy market. In energy, Accelleron's business for backup power for data centers move from an emerging opportunity to an established market. Accelleron is now firmly positioned in the data center, supply chain falling in the launch of the TPX high-speed turbocharger in 2022 and record deliveries of 8,000 TPX in '25. So generating around USD 40 million in revenues, just again, in 2020, we had 0 revenues in this market. And now over the last 3 years, we increased it to $40 million. So -- and again, we tripled last year, the output of turbochargers, TPX turbocharger by 3 compared to '24.

In backup power, with this impressive growth, external equipped diesel engines have now surpassed more than 10% market share in this estimated 40 gigawatt segment. For how long will this boom continue? Yes, this is the famous $1 million dollar question. Here, probably we talk about the famous $1 billion question. And to be honest, nobody has really a substantiated answer. There's more guess working than any substantiated figures. However, data center build-out is increasingly constrained by the availability of prime power, meaning that backup power growth is expected to normalize and follow a steadier trajectory going forward. So still a growth, but not any more exponential.

In addition, our growth in this segment is linked to engine OEM capacity rather than end market demand alone. So that means there might be much higher demand from the market but just the OEM are constrained by their own capacity, and they're investing now in a capacity expansion. So the real growth driver in energy is now prime power, particularly for data centers in the U.S. So what is prime power. Power plants that provide prime power ensure continuous electricity supply. They cover essentially demand in emerging markets in isolated island grids, sites, near data center and industry sectors such as mining. In the U.S., rising data center demand or electricity demand is running into a completely underinvested and fragmented power grid, driving strong interest in decentralized gas-fired power generation.

The good thing is gas turbines are sold out, which will be the natural -- the logical choice for having power plants closer to the data center, and they are sold out until 2030. So please hurry up. You might get a gas turbine by 2030, probably you have to wait until 2031. So -- and with that one, we see now the demand shifting towards medium and high-speed gas engine, where Accelleron has a strong market share of around 40% for medium speed and even 80% for high-speed engines. In 2025, new business prime power revenues reached more than USD 100 million, roughly 30% of which was data center driven. So more than $30 million. Looking ahead to '26, we expect mid-double-digit growth in prime power, predominantly driven by data center demand.

Next, let's look at the different segments in the energy and marine markets. So what is the outlook for '26 in our business. I still remember when I showed you last year's slides, I thought things couldn't get much better. Well, apparently, they can. As you can see, all the arrows for the different marine and energy market segments, except for the small marine segment specialized are pointing up and even some steeply. We expect continued positive demand dynamics, particularly in the energy sector. Robust product demand is anticipated from ongoing data center expansion and sustained activity in marine new builds. Given Accelleron's already substantial turbocharger market share in marine, so we talk here about 50% -- above 50%, we expect to grow only slightly above the market share because gaining market share higher than the market -- because gaining market share above 50%, it's getting really tough. And while we expect more moderate growth in marine, we expect its comparatively high growth in energy.

Decentralized power generation continues to gain importance as prime and balancing power application benefit from rising demand for on-site dispatchable capacity. Data center power needs remain exceptionally high but because data center build-out is kept by power availability, as explained already before. Backup power demand is expected to grow more steadily in '26 and beyond.

So in summary, the outlook is positive, and we are confident that Accelleron's growth story will continue in '26. Where do we set priorities for this year? It's clear we see high demand, reliable delivery for our customers remains our top priority. To ensure we can meet the expected surge in demand from the power generation market and increasingly complex growth. We are strengthening our value chain resilience and investing significantly in production capacity.

To this end, we'll increase CapEx, as mentioned by Adrian. We also continue to invest in our people's skills, R&D and digital capabilities, including AI. With the successful integration of our colleagues from OMT and True North Marine, we have added key competencies to the company that support our growth trajectory. Of course, growth also comes with responsibility for people and planet. We are proud that our near-term climate targets for 2030 were approved by the science-based target initiative. The approved targets are a milestone that underscores our commitment to reducing our own emissions and contributing to a more sustainable future. They also reflect our company's purpose of accelerating sustainability marine and energy. For '26, we forecast organic revenue growth of 9% to 14% and an operational EBITDA margin of 25% to 26%.

Of course, with everything that's going on in the world, making forward-looking statements is challenging. And our guidance assumes similar U.S. tariffs going forward and no adverse effect from the ongoing wars and geopolitical tensions.

Thank you for your attention. So now we are now happy to take all your questions and try to answer them as good as possible. So you just raise your hand as already mentioned here in the room by Michael and the people remote, use the chat or via telephone. So Michael, you will do the moderation, I guess.

Yes. Thank you very much, Daniel. Welcome to the Q&A session. Just one note, if we receive questions in writing, we might combine similar questions into one. And especially to the persons here in the room, please state your name and the organization you're affiliated to when asking a question. And with this, we are going to start in the room. I think our colleagues will bring the microphones.

Yannik Ryf from Zürcher Bank. So I have 2 questions. The first question is about the energy segment. I mean, on Slide 23, you highlighted the different end markets, but could you also give us the breakdown of the revenue make in gas compression, medium-speed power, high-speed power and backup diesel. That's the first question.

And the second question is regarding M&A possibility. So the last couple of acquisitions you made, it was mainly in the marine space. Now do you also have some possibilities in the energy space to do any acquisitions?

Okay. The first question about our EPG market. So the -- in the emergency genset, we are in with USD 40 million and what we call the prime power, which is the continuous power. We mentioned we are both $100 million and 30% is coming from data centers, so $30 million. So all in all, we have about $70 million in the data center. On the gas compression, I need to quickly check. So it's not included here, but we talk here about close to $20 million of new build.

On the M&A space, as I already said, we are always -- we are looking for bolt-on and adjacency acquisitions. So that means in the marine and energy. And so it's clear that it's not only marine, but also energy. And we're seeing the pipeline growing. But as usual, what we would like is not available and what's available, we don't like. So it needs two to tango, and we watch the markets, and we will take those acquisitions when they come and the price is okay. So that's why we saw, also say it's selective and disciplined, and we have good organic growth potential still that we are not desperate for any acquisition.

Ingo Stossel from UBS. Regarding U.S. tariffs last year. Can you give us some kind of numbers on where your impact was on top line and on operational EBITDA? How did these usually get handled? Was it you taking most of the hit or was it your clients? If you could give us some color on that?

Starting on the margin. We had a bit less than 100 basis points impact. In terms of revenues, we are talking most probably up to 1% of growth, which is coming from passing on the tariffs. So net, obviously, there were more costs than what we could pass on as we are in a partnership with our customers, and we have shared this. In respect to the future, we have noted decision of the U.S. Supreme Court, right? The tariffs are considered unlawful. We have as well noted the recent ruling that the kind of a back charging mechanism or reform processes is in the virtue of being established, and we are closely following up and would then there expect somewhere single million digit amount to be recovered. But obviously, the partnership with our customer is very important. We were able to pass on a certain quantum while a certain quantum remained with us.

And then maybe a second question regarding the current situation in the Middle East, it's obviously very fresh. Have you experienced any delays with clients or holding off on their orders? Or what are the main risks you see that might evolve out of this?

As you said, it's 2 weeks we are watching. I mean, there was a minor impact because some of the services would have -- should have happened in Dubai, for example. So the crew is off board, and we have also made sure that our people are not in the dangerous area, so -- but that's minor. In the long term, also from the number of ship, I think if the figures are correct, we talk about 300 ships on the wrong side of the Hormuz Strait but that's out of 50,000 ships. I would say the biggest challenge is definitely when the oil price goes up and there is a recession, then normally we are hit, but the rest, we don't see for the time being a risk. But as I said, if the oil price goes up and there's a recession, then definitely, we will be hit, especially on the marine side.

Good. One more question in the room, and then I would move to the phone line.

David Windisch from Rothschild & Co. I have 2 questions regarding the energy segment and backup power. One would be the first one, with the OEMs being the bottleneck, how quickly do you think they can change that? And what would be sort of an appropriate percentage they can achieve within 1 or 2 years?

And then the second is for the same segment which ones are the largest players and how high is your exclusivity on them for the generators?

Okay. First, look, the good thing is we are a small piece to the large engine. So definitely, if they want to increase capacity, they have a bigger challenge in front of it. They're all investing if you go to Caterpillar, Cummins, MAN, or Wärtsilä, they're all investing. So they will increase, but we can -- we definitely -- since we are a small piece, we can -- we are fast enough to be sufficiently ahead. The other one was about our market share on those, as I already mentioned, on the small engine, the high-speed gas engine we are 80% market share, while on the medium speed, it's about 40%.

What was -- there was a third question, David?

Market share on different OEMs.

Those we don't disclose. But with 80%, it's 80%, it's pretty high.

Yes. Valentina from the phone line?

The first question from the phone comes from Daniela Costa, Goldman Sachs.

I have 2 questions. One is a follow-up on this point of the OEMs increasing CapEx. Some of them are doing very substantial CapEx increases, for example, Wärtsilä talked about 30%. Should we expect that your CapEx plans will kind of match their CapEx plans? Is that the size of -- you talked about doing some capacity increases. Maybe if you could elaborate there to give us an idea of where CapEx could go to for yourself? And then I'll ask my second question afterwards.

Daniela, here is Adrian. In fact, yes, surely, I mean we are differentiating by reliably supplying to our OEMs. We have proven in the past that we can follow their pace and therefore are really in the partnership. As mentioned, we have spent in '25 roughly a little bit less than 5% of revenue, and we are even actually stepping this up further to 5% to 7%, one could say, over 3 years in average 6%. So this is still a massive increase exactly to follow through their growth trajectory and we are in the middle of preparation, respectively optimizing our perimeter in Switzerland and as well in the other locations.

Probably I can add here. Look, we are in close contact with all the OEMs, and they are coming almost on a monthly basis, adjusting their forecast. So it's clear what they are doing is testing the water. They go to all their own suppliers, and they want to see who is the laggard, who is restricting them on their capacity increase and definitely it's not us. We are -- we have enough potential to increase, and that's why we have to invest a lot. But as I said, we are fast enough. We are the small agile ship while they are the big tanker and they need to invest much more and its higher investment, longer lead time. So we will manage it, and we are in close contact to ensure we are not the one hindering them on selling more.

And the second thing is just regarding pricing. Obviously, you talked a bit about tariffs before, but we've also seen like some very really steady increases on prices of raw materials this year. Within your 9% to 14% organic sales growth, how much pricing are you baking in?

For the time, in average, a little to nothing because with the strengthening of the Swiss franc, the situation is in that sense demanding and we have as well with the high market share, certain OEMs attacking us or trying to gain market share back. So this is first and foremost, volume.

What would trigger you to move price as well? How much higher did some of the inflation need to be?

I think in the past, our philosophy was what we see in terms of increasing input costs that we pass this on in the sense of protecting our margin. We have means on the productivity side to work and we have operating leverage. So I think we're solidly set. But yes, this is always open.

But we have no plans to increase our margin by price increases.

No. Absolutely, no.

The next question from the phone comes from Sebastian Vogel, UBS.

I have 3 questions. I would ask them one by one. The first one is with regard to the sales split equipment versus services for the different segments. I know you're providing not hard numbers but if you can give us some sort of ballpark indication what these shares are for each segment, that would be great. That would be my first question.

Usually, we provide that at group level, and we are by now roughly 1/3 is product and 2/3 are services. Remember at the CMD back in '22, we were 1/4 product, 3/4 service with the massive growth of our product business. That share has a little change, but it is good because we are increasing our installed base, which is opportunity to do business in the future on the service side. In terms of segments, it is clear that the high-speed has a bit of a higher product share versus service, while the medium-speed obviously has a bit of a higher share service versus product. But we do not disclose on the segment level detailed numbers.

Got it. The second question is more clarification if I got it right. So your data center revenues is around like $70 million. Is that the right number that I was getting?

I think it's 5% to 6% of group revenue in FY '25.

So it's $40 million coming from emergency or backup and $30 million from prime power, which is we expect now to grow significantly going forward.

Got it. Perfect. And then the third and last question regarding capital management. In the past, I got the impression that you were rather aiming for DPS that is more gradually growing. Now a 20% jump, of course, appreciate it, but it doesn't seem to be sort of tying in very well with your previous communication. What are your thoughts there?

I think first and foremost, net income went significantly higher. In fact, we have seen a 35-plus percent increase, right? Cash conversion was very solid, and we felt comfortable with making that kind of half plus step while complementing it with a share buyback in essence. So surely, the good result allowed us to make a bigger step than maybe in a normalized environment where we would be growing 2% to 4% definitely but it is on the basis of the results and our capacity to sustain this trajectory.

Next question comes from Uma Samlin, Bank of America.

Congratulations on the strong results. So my question is just one for me. On the service opportunity you have. So when do you see the OE orders you've got for the past few years to translate into service revenues, both in terms of Marine and Energy? I suppose that there is a slightly different phasing between these 2 segments. Could you elaborate a bit more on that, please? Thank you.

You're right. There's different pacing. I mean, number one, emergency genset, they don't bring any service. I mean they run 100 hours a year, and I think we need to have 8,000 hours until they see some service. So they might be a little bit long. But the prime power and data center, we expect the service to come in 3 to 4 to 5 years depending of the utilization dispatch. On the shipping, it's mainly 5 years until we see them really making services on that one. It helps. So some -- no, some after 3 to 4 years and some after 4 to 5 years on the marine side.

And for the marine segment, just out of curiosity, do you -- have you already started to see the increase in service revenue from the strong contracting in 2021, 2022? Or is it still too early, I guess?

We see some of them. I mean, considering that we have almost now 2/3 of the business still coming from service, we would not be able to grow above 20% without service driving it. So we definitely see the installed base growing. As we already said, unfortunately, some of this installed base on the shipping, they are running on cleaner fuels. So the service intensity is going slightly down. But the good thing is we had now a lot of upgrades, which was able to compensate that and still keep a good growth on that one. We see, yes. So we see the installed base now moving into the service already.

Is there a meanwhile new questions from the room?

[indiscernible] I would have a question to your increased provision warranty. Is this due to the fact that you had in the last 2 years is such a high growth that you had to increase the provision? Or was there a certain incident happened in 2025?

I think you're correct. It is mainly related to the growing installed base. We have been growing in product business alone in FY '25 by close to 40%. So that's basically this being reflected. Additionally, yes, within this, I think it's $47 million in total. We have certain specific cases, but all within the bandwidth of the experience of my past 7 years heading the financing in this business.

One question from the chat tool from Adrian Pehl from ODDO BHF. How -- first question, how do the changes in the outlook alter your investment plans in the fuel injection business?

Yes. We informed last year that we expect the fuel injection business to double to USD 150 million. And for that, we will invest $80 million. So now with the reduced or more or less half the growth rate from 20% more to 10%, we will see an investment of about $40 million, if that's the trajectory. But who knows if again, dual fuel comes back and ammonia is back, then we will start investing. The good thing is we can gradually invest. It's not one big step, and then we might be overinvested. We can now steadily grow with revenues and we will invest accordingly.

Then a second question on the revenues in power. What's the revenues in baseload power? And can this be offset from prime power, the baseload versus balancing?

Wish so. The electrons don't care. If you put them into the grid, they go where they want based on physics. Now some items are very clear. We call them behind the meter. So that means if the power plant is really only dedicated to a data center, then it's clear. But if it's 1 kilometer, 2-kilometer apart, is it now for the data center or not is for the demand and the big demand is coming from the data center. So it's not too easy on some items. It's clear on the other one, we have to do a judgment call whether it's now more for the data center, it's just generally for balancing power.

Okay. Then one other power question. How much of the prime power is in medium and low speed and how much in high speed?

No, I don't have this figure now out of my head.

I think the FY '25 numbers. If we talk prime power for data center, then it's very minor, right -- the medium speed, while it is namely the high speed going forward, we would expect as well medium speed to profit from that, e.g. the Wärtsiläs, and us.

Okay. Then one more question on the tax rate. Do you expect the tax rate going forward to be again smaller versus U.S. GAAP tax rate?

Probably the wrong one to be addressed. He sits a little bit more in the West than where we are. No, I have no clue.

The tariff rate or the tax rate?

Income tax.

The cash payment of...

Will the cash tax rate going forward be smaller versus the U.S. GAAP tax rate?

I mean first and foremost, if you're growing your income tax in the income statement is increasing, you do not pay everything naturally in the same year. So there is a little bit following that higher level. Additionally, we have still certain tax assets, which can be amortized. So yes, they most likely remains for the next 2 to 3 years, a minor gap between the expense and what we ultimately pay in cash.

Okay. One other question from the chat tool from Besik Sanaia from Lombardi Capital. Could you provide more color on the significance of revenues generated in China from diesel electric locomotives? China revenue grew by around $60 million year-on-year last year. Is it mainly regarding driven by the turbochargers for diesel locos? And what's the outlook for 2026?

No, definitely not. I mean if you talk about diesel electric locomotive in China, we talk about $20 million the maturities from marine business. Again, as a reminder, 70% -- 60% to 70% of all the ships are built in China, and we produce the equipment for China in China.

Okay. Question from the room. Else, I would go back to the telephone queue.

We now have a question from John Kim from Deutsche Bank.

Three questions, if I may. Can we start with what you're seeing with core service revenue growth. I seem to remember about 10% year-on-year in the first half print. Is that accelerating, decelerating, staying in the line? And is there any pockets of super normal activity you point out there?

I'm not sure I fully understood the question.

Could you repeat some? I think core revenue growth, how do we see that going forward? How have been the dynamics? Are there any growth pockets, yes.

Yes. I mean, again, service is more or less steadily growing with the installed base. But what we have seen, especially high growth now in the last year was on the upgrades, where we said we -- the upgrades grew by 45%. So from about $20 million to -- from $25 million closer to $40 million. Here, we said this might now level out. It says on that high level, but it's with the challenge to further grow. And the other thing what we saw last year was definitely on the cruise ship. They invest a lot in the existing ship because they clean up the balance sheet and now they're investing in new ships and a lot in cruise ships. So I mean, here, that's definitely a pent-up demand. So here, probably that will be a little bit more normalized. So that's why also the growth rate is now between 19% to 40%, not any more between up to above 20%. It's also because we see more normalizing on the service side.

Okay. Another question on your distributed exposures. So the exposure to LNG and fracking. Can you comment on what you're seeing there?

You mean on the gas compression side?

Yes.

The good thing, if you take a look, we had some ups and downs, especially on the new business because we -- for a year, they more or less our customer purchased too many turbochargers for the gas compression and then they had too much inventory. And this has normalized. And last year, we are now back on a good growth level. So here more stability on the gas compression side. We don't expect an additional push from the gas compression normal growth rate now.

It's roughly 10% of group revenue, the full life cycle gas compression business, product and service.

That's group or to the division?

Excuse me, that one we didn't understand.

Can you repeat it again?

When you talk about gas compression being 10%, 10% of what?

Of the group's revenues.

Okay. Fantastic. All right. Last question. If we think about your guidance for the growth this year, what needs to be true to hit the high end? And are those externally driven factors, i.e. speed of build-out on data centers and power plants?

The upper -- as we already mentioned that the marine business will more normalize because we don't see any more the chance to gain so much more market share like what we had since the last 3 years. So that's more stable. So the big upside would come from the data center. Whether there's now more demand from the customer side if they are the engine build are able to increase the capacity faster than what they are telling us now. There might be the upside that we might get closer to 14% if the growth on the capacity is less, then we are closer to the 9%. So it's all about data center.

Next question comes from William Mackie from Kepler Cheuvreux.

Three, please. First of all, again, a clarification around the growth, just following on from that last question. Could you frame the 9% to 14% growth in terms of your 2 business areas of high speed and then medium and low speed, just to put some brackets around how you would see each of those businesses develop. A lot of the information you've given is very useful on the end market lines, but just framing it around the divisions.

So let me take the first one and then you can take the second one. So about the growth. More or less, take a look on the markets and the major growth is definitely coming from the power, which is more in the high speed, while the medium and low speed is more in the marine business. So that's why definitely, the higher growth might come from high speed, while marine medium speed is more stable, growing based on marine business.

And then with regard to margins and your margin guidance overall, 25% margins I note you've called out the business mix, tariff costs and warranty provisions affecting the margin development. When we think about 2026, maybe talking to each of those levers, what pushes you to the upper or lower end of your 25% to 26% margin guide for the year overall?

I think starting with product versus service, indeed, but are different margins, but it boils then down sometimes to the single product, right, even within the product itself. So that mix is detrimental and can easily be 10, 20, 30, 40 basis points plus/minus. Ultimately, that mix, we do not know with certainty. That's the first. And the utilization, how efficiently can we deliver the growth, the volume. If you have more challenges or need to do more air freight versus sea freight, you see that immediately in your cost. Transportation is element, the utilization, over time, material cost. So that's definitely the second largest lever.

And then in terms of tariffs, I think we have framed in assuming tariffs stay on the level we have currently, so the 15%. So obviously, changes there, if there are less tariffs. Yes, net we would have less impact. So these are most probably the 3 key dimensions at this point. But please bear in mind that we need to keep investing as well. Daniel has pointed it out. So there might be operating leverage we redeploy towards investments into our sustainable future, right, in terms of growth and offerings.

The last is on the cash flow. I mean, your operating cash flow had some benefit from a normalization of payables last year. When we look to the year ahead given the moderation of growth in the various factors. Should we consider that working capital is going to be a tailwind, neutral or a headwind due to the level of growth and the business mix developing?

I mean, usually, as we grow, there is a little more working capital needed. Our receivables are going up even if we keep the same DSO. Our payables, yes, will help to finance but not to the full right payables compared to receivables is a much smaller portion. We have inventory. And we need to supply on the service, but as well on the product side. So you would expect there is a little bit of working capital being absorbed when you keep growing. And additionally, our investments are higher than what we see coming through depreciation and amortization. So I believe somewhere around 80% conversion for '26 is roughly in, let's say, the ballpark figure we could provide at this point. That's still healthy, but we -- it will tie some capital, the additional investments and the working capital.

So the telephone queue is empty, there is one more question in the chat. Still from Adrian Pehl from ODDO BHF. How will adjustments between reported EBIT and operational EBITA developed in 2026? When will they drop out, please?

I think in line with past conferences, we cannot guide on this element. I mean the amortization, we know it is basically in the annual report as well projected that will decrease, right, and the intangibles of the acquisitions in respect to the acquisition-related nonoperational stores, I would expect as well to decrease while on the residual nonoperational costs, we cannot guide. And I believe CHF 8 million versus [ CHF 100 ] or a CHF 1.2 billion business, that's clearly less than 1%, that's within a normal bandwidth.

Good. Thank you very much. Is there any last question from the room? So if not, I do a small logistical announcement for the people that are here in Zurich. If you want to join us for lunch, it is 1 floor down, and our colleagues will be happy to assist you in finding the right place. For the ones joining remotely, thank you very much. We will not take care of your lunch. We're also happy in getting some lunch. Daniel, do you want to close?

No, nothing. Thanks for coming and looking forward now to have an interesting exchange during lunch and for those not joining the lunch, enjoy the day. Thank you.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.