Cementir Holding Stock

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Cementir Holding First Half 2026 Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Marco Maria Bianconi, Head of M&A and Investor Relations of Cementir. Please go ahead.

Thank you, and welcome to Cementir Holding First Half Results Presentation. I'm here with our Chairman and Chief Executive, Francesco Caltagirone. We're happy to take your questions at the end of my short presentation. I'll go through the presentation deck that has been distributed ahead of this meeting.

Starting with Page 2 with the key takeaways on the results. There has been a significant improvement in the second quarter despite the first quarter that was impacted by exceptionally adverse weather conditions. At constant perimeter, Q2 cement volumes were up 3.4%. Non-GAAP revenue was up 5.3% and EBITDA was up 12.9%, confirming a positive reversal compared to the weak start of the year.

On a reported basis, consolidated volume declined across all business lines with cement minus 2.9%; ready-mix, minus 10.9%; and aggregates, minus 2.6%. At constant perimeter, though, excluding the disposal of Kars Cimento, cement volumes were up 1.4% in the first half of the year. There was a positive trend in Belgium and Egypt following the restart of the second kiln.

Reported performance was affected by ForEx headwinds, mainly due to the depreciation of the Turkish lira and of the U.S. dollar. This negative impact amounted to EUR 37.4 million on a non-GAAP revenue, and EUR 2.6 million on non-GAAP EBITDA. EBITDA was also affected by lower volumes in Nordic and Baltic and Turkiye due to weather conditions, whilst Egypt, Belgium and North America improved year-on-year.

Again, there was a clear improvement in the second quarter, and there was no significant direct impact from geopolitical conflicts on our operations. Energy cost volatility has been largely mitigated through a structured risk management approach and our hedging, while some pressure still persists on pet coke supply and logistics. Our full year 2026 guidance is confirmed despite the very uncertain macroeconomic and geopolitical environment.

On Page 3, a few highlights. I'm not going to read it verbatim, but just to give you the highlights that revenue was up 0.2% year-on-year. Non-GAAP was down 1.7% and at constant perimeter was flat. EUR 37.4 million negative FX, mainly due to Turkish lira and U.S. dollar. We talked about the cement volumes already and RMC volumes as well. On the EBITDA basis, the group reported EUR 163.9 million, minus 5.5%. Non-GAAP EBITDA was minus 10% at EUR 153.6 million and it was down 9.5% at constant perimeter. The decline in EBITDA was mainly driven by Nordic and Baltic and Turkiye, EUR 26.6 million, lower volumes and negative FX impact of EUR 2.6 million. Non-GAAP EBITDA margin stood at 19.3% versus 21.2% on the first half of last year.

Group net profit was down 15.7% to EUR 62 million. Non-GAAP net profit was down 18.9% to EUR 66 million. Net cash at half year was EUR 276.8 million, an improvement of EUR 132.8 million year-on-year, including EUR 51 million of Kars Cimento disposal, EUR 19.7 million of insurance proceeds, EUR 18.6 million of the Just Transition Fund, and EUR 54.9 million of dividend distributions.

We now go to Page 4, starting with the biggest division, accounting for 45% of group EBITDA, Nordic and Baltic. In Denmark, the construction market remained relatively weak, especially the residential part due to restrictive financing conditions and energy cost uncertainty and some projects postponement. Grey domestic cement volumes were down 4% year-on-year, impacted by exceptionally harsh weather and delays to the Fehmarn project, although deliveries improved during the second quarter. White cement was up 12%, supported by stronger demand.

Exports were down 16%, mainly due to lower deliveries to Norway and Iceland, partially offset by growth in Poland, France and Finland. RMC and aggregates volumes were down 11% and 21%, respectively. EBITDA was down 21% year-on-year, impacted by lower volumes, higher CO2 taxes and increased variable costs.

In Norway, sales volumes were down 5% due to weak demand, lower activity on major projects and some market overcapacity and price competition. EBITDA increased driven by higher prices, partially offset by increased variable costs. The Norwegian krone was up 4.2% versus the euro average.

In Sweden, ready-mix sales volumes were up 10%, driven by the recovery from March, the restart of some postponed projects and several new contracts. Aggregates volumes were up 24%, supported by new projects and the temporary closure of a competitor's quarry. Also EBITDA was up and the Swedish krona appreciated by 2.8% versus the euro average.

Moving to Page 5. Belgium and France accounting for around 32% of H1 EBITDA. Domestic cement volumes were up 5%, supported by new customer and the major infrastructure projects in the Antwerp area, despite adverse weather at the beginning of the year and unusually high temperatures in the second half of June.

Exports were up 17%, mainly to France and Netherlands, driven by new customers and the major project in Antwerp. Ready-mix volumes were down 6% due to weaker performance in Belgium and adverse weather conditions, some Easter-related shutdowns and a high comparison base in the first half of last year. In France, volumes were up 3%.

Aggregates volumes were up 2%, mainly in France and the Netherlands, benefiting from stronger infrastructure and construction activity from March onwards. EBITDA was up 7%, reflecting higher cement volumes and lower raw materials and CO2 costs, partially offset by higher costs related to different maintenance schedule and lower RMC volumes and higher variable costs.

Moving to Page #6 on Turkiye, accounting for 5% of group EBITDA in the first half of the year. In this country, challenging operating environment continued impacted by hyperinflation, high interest rates and exceptionally adverse weather in the first quarter of the year and weaker post-earthquake reconstruction demand. Domestic cement volumes were down 13%, 2.2%, excluding the disposal of Kars, mainly affected by adverse weather, gradual completion of major post-earthquake reconstruction projects and mixed regional trends with Aegean up 15%, Marmara minus 2% and Eastern Anatolia minus 32%.

Export were up 2%, whereas domestic RMC volumes were down 15%. Aggregates were down 26% due to a slowdown in the reconstruction activity, although June showed a strong recovery, supported by some major infrastructure projects in the area of Izmir.

Revenues were down 19%, also because of the Turkish lira depreciation. EBITDA declined, reflecting lower volumes and higher variable and fixed costs, only partially offset by price increases. I remind you that we divested of Kars Cimento on December 1, 2025. In the period, the Turkish lira devalued by around 27% versus the euro average.

Moving to North America, accounting for 7% of our group EBITDA. Volumes in the U.S. were broadly stable, demonstrating a certain resilience despite a generally softer market environment and weak residential demand. Florida recorded a 10% increase, mainly from demand from new customers, whereas in Texas, volumes were down 7% due to a January snow storm and a competitive pressure from imports. In California, volumes were down 9% due to intense competition.

EBITDA was up 1.8%, with cement business impacted by higher variable costs from FX effect and only partially compensated by higher selling prices. The dollar in the period depreciated by around 6.8% versus the euro.

Moving on to Egypt, accounting for 5% of group EBITDA in the period. Revenues were up 57% despite a 7.3% depreciation of the Egyptian pound. Macro context remains challenging with high inflation, currency volatility and rising energy costs. Domestic cement volumes were up 31%, supported by stronger commercial positioning and market share gains. Export volumes were up 78%, benefiting from deferred shipment from December of last year and the resolution of some technical issues following the restart of the second production line, particularly supporting sales to the U.S.

EBITDA was up 43%, driven by higher volumes and a more favorable geographic mix focused on higher-margin export destination, which more than offset higher energy and production costs.

Moving to Page #9 on Asia Pacific, which is the last business unit we're going to talk about, 3% share of group EBITDA. In China, volumes kept declining 6% year-on-year, impacted by weak demand, intense competition and adverse weather. There was also a slowdown around the Chinese New Year. Market environment remains weak despite government stimulus. Revenues were down 10% -- 10.5% year-on-year, reflecting lower volumes and average lower selling prices.

EBITDA as a reflection of the top line decline was down 21.4% due to lower volumes and prices and higher fixed costs, partially offset by higher variable cost savings. Renminbi depreciated by 1.1% versus the euro average in the period.

In Malaysia, on the contrary, total volumes were up 2%, with domestic volumes, although marginal, declining by 11% due to order timing effect and weaker retail demand. Cement exports grew 14%, supported by higher deliveries to Australia, the Philippines and Vietnam, while clinker export declined by 24%, mainly due to shipment timing difference to Australia. Revenue was up 8.3%, supported by higher export volumes and more favorable product mix.

EBITDA was down 55% due to higher variable and fixed costs, particularly distribution and logistics expenses. The Ringgit was up 2.8% in the period versus the euros.

A few words about the acquisition of Nymolle, a bolt-on acquisition in the aggregates business, enhancing vertical integration, securing a stronger Nordic platform. On July 1, we completed acquisition of 100% of the share capital of Nymolle Stenindustrier with an enterprise value of DKK 900 million, which is equivalent to around EUR 120 million on a cash and debt-free basis. The expected synergies are around DKK 30 million or EUR 4 million within 24 months through integration with existing Nordic and Baltic operation.

Nymolle is the largest aggregate player in Denmark with around 10% share. It operates 26 land-based aggregates quarries across Denmark and holds a well-developed reserve base. The full year results ending April 2026 are for revenues of DKK 230 million, pro forma EBITDA of DKK 93 million.

Moving to the last slide of my presentation, guidance, which is confirmed. Despite the uncertain macroeconomic and geopolitical environment, we reiterate our full year guidance, which is for revenues to reach around EUR 1.7 billion and EBITDA range between EUR 400 million and EUR 420 million, net cash position of around EUR 590 million after a CapEx of around EUR 128 million. As you know, our guidance refers to like-for-like, ongoing operations, non-GAAP and excluding any extraordinary items.

That said, thank you for your attention, and I'll now leave the floor to you for any questions to our Chairman and Chief Executive. Thank you.

[Operator Instructions] The first question is from Wim Hoste of KBC Securities.

I would have 2, please. The first one would be on cost inflation and pricing initiatives. In the first quarter results conference call, I think a figure of EUR 38 million inflation was mentioned in the context of the conflict in the Middle East. So can you maybe update on that number and also update on the pricing initiatives you might take in some of the zones in order to offset that inflation? So that's the first question.

And my second question would be on the strategy. There has been some rumors about M&A recently in Latin America, where Cementir has been mentioned. Without asking you to confirm the rumors, I would like to get a reminder of the overall strategy and priorities when it comes to -- yes, to the cash deployment and the growth of the company? If you can maybe elaborate a little bit on that. So those were my questions.

Okay. Thank you for your question. Yes, so on the cost inflation, you're right that there has been a hit in the first quarter due to the increase in -- especially input costs and raw materials.

I would say that in the second quarter, we clawed back some of these hits. And thanks to our hedging, we managed to like offset the majority of the price increases due to average higher input costs, especially for thermal energy and electricity. So I would say there has not been, as we said also in the communique and in the presentation, any meaningful impact on our figures.

So if we compare also the electricity and fuels bill in the second quarter compared to the second quarter of last year, there is a delta still unchanged of around EUR 8 million. So I would say that the delta of the first quarter has been kept.

I would add. So good afternoon to everybody that if you see in the first 6 months, we saw a decline in the sales in cement -- cement slightly, ready-mix concrete around 10% and aggregates. And then you can see that in the first half at the same perimeter, the revenues are almost in line. This means that almost everywhere there is, let me say, a hike in the price as we also told in the first quarter to cover the cost. And this is also the reason why, I mean, from the gap compared to last year of around EUR 28 million in EBITDA that we had in the first quarter, now we nearly half this gap because of, let me say, this price increase.

Going to your second question about the strategy of the possible enlargement of the perimeter Cementir Holding as I said in the past that we look at -- as it happens several opportunities that might arise from the market. You know that the only part of the world where we are not active today is South America. For sure, this asset, I mean CSN is an asset that is on the market because, I mean, the sellers is forced to sell it.

We are looking at it, let me say, as other possible competitors -- other competitors are doing. We are today in a phase that we are estimating and evaluating the asset to, let me say, understand if part of this perimeter because the perimeter alone is, let me say, too big for us, might fit in our perimeter. But let's say, we are still in a sort of preemptive phase. And at this stage, I can only say that it's an opportunity like a lot arise in the last 4, 5 years, and it might be and might not be.

The next question is from Matteo Bonizzoni of Kepler Cheuvreux.

Two questions. Guidance. You have done this 10% EBITDA decline in the first half on a non-GAAP basis despite the recovery in the -- encouraging recovery in the second quarter. So you still need to do a mid- to high single-digit EBITDA growth in the second half to meet your -- the low part of the guidance range, which doesn't seem to be walk in the park in the current market conditions in which Turkey could continue to be weak and also there is uncertainty on the potential recovery in Scandinavia.

So I would like to know more precisely what are the basis and the grounds of your confidence to achieve even, I would say, the low part of the guidance range? If you can specifically maybe comment to different geographies?

And then a follow-up on the question on the potential M&A in Brazil. So correct me if I'm wrong, but what we read is that it's a pretty crowded context with a lot of potential buyers. And we also read from newspapers, so it's not maybe insider information, but it's public information that the multiples could be pretty stretched. So it seems that compared to your usual M&A style, not to overpay, doesn't fit very much. But maybe can you add a little bit more color also on the general framework as regards to the valuation of these assets?

Starting from your second question, I agree with you that, I mean, on the newspaper all the expectation because everybody that says something want to sell at a higher price. But I am also aware that we have our discipline. For this reason, I told to the previous questions that, let's say, it might be or it might not be because, let's say, one thing is that there is an opportunity to enter in a country. One other thing is that the assets are in a good shape and fit for the strategy. The third thing is that the price is reasonable or not.

So I can say that as you are saying that at the price that, let me say, you see or you read or you read in the newspaper is something that probably we are not interested. So it's a crowded process and let's see where and when it will end up. As I said, we are interested, but at a certain condition.

And on the other side, as I also said that besides also the price, there is also the size of this, let me say, company -- this can be, let me say, carved out. So it is in the end of the sale that is aware that has a few, let me say, bidders. Probably some of them for the whole and some of them for part of it. So today, we are still in a sort of nonbinding phase, and so we are not aware of what, let me say, even the seller will decide at the end.

On your first question, as I said, we are still confident that we can, let me say, reach the guidance. I think that what we have done in the second quarter is in line and the trajectory is to have this kind of recovery. And we are aware that for sure, there are still some headwinds, especially from the 2 wars that are active now, but not more -- not on the cost side because, as you know, we are mostly hedged and so we don't expect weird things from cost side. As probably in other geographies are experiencing, there are some delays in some, let me say, project and this might affect the pipeline of the quantity of the sale.

But as I said before, even so far with a mild decline in our footprint, let me say, market, we were able, let me say, to balance and to recover. So we are confident probably, let's say that I am more confident now than 3 months ago.

The next question is from Emanuele Negri of Mediobanca.

I have a couple. The first one is a follow-up on extra cost. During the first quarter conference call, you mentioned around EUR 38 million of extra cost which were expected from geopolitical tension. Now you're talking about around EUR 8 million in the first quarter and around EUR 0 million in the second quarter, if I'm right. Could you elaborate on this delta? What has changed during the quarter to have this reduction in your expectation?

And the second one is if you have any update on the ACCSION project in Denmark.

What we think is that at the end of the first quarter, if the condition would have remained the same, we would have expected EUR 38 million in extra, let me say, cost. You have seen that beside, I mean, the last week that then the price of oil went down, I mean, from $120 to around $70. Now in the last 10 days is again up. So it's difficult.

So we took, let me say, EUR 8 million because one part of this, let me say, hike that we -- like everybody, let me say, felt in the second quarter. So going forward, I can say that if 1 week from now, they agree on, let me say, to come down the things again, probably the extra cost will be lower, it will be more or less, let me say, what we have seen so far. If the global context will, let me say, mess up again, I think that we must -- we might stick to our forecast.

On the ACCSION project as you know, we have been approved, let me say, by the Danish fund financing for 15 years that is up EUR 2.2 billion. Now I mean, as we said, we are waiting because we are part of the project. As I said, the project is capturing the plant then to ship by pipeline, let me say, the CO2 to the site and then there is also the storage area. So we have to be aligned and we expect by early 2027 to be fully aware of the agenda of the other 2 players that is outside the plant just to confirm the agenda and also because we are at the latest stage, I mean there are just a few months to wait to understand if everything is okay in the storage area from seismic from, let me say -- there are no possibility of the leakage so -- in the atmosphere.

So this will take, I mean, nearly 30 months. It already started, but the company that is not our [ friend, ] that we think they said that early in 2027 we'll release the final opinion. So far, let me say there are no red flags. This is what I can say.

The next question is from Egor Sonin of AlphaValue.

I have a question on pet coke. Because you called out pet coke supply and logistics as the one area where cost pressure still persists, but at the same time, the part of the group growing fastest is white cement and Egypt specifically. It's actually the part that can't substitute away from it since your own target for white cement is only 8% for color reasons, so you cannot easily substitute pet coke.

So my question is, how do you manage that specific exposure through long-term supply contracts, stock levels or mainly pricing, for example? Could you give more color regarding this?

Thanks, Egor, for the question. It's a very good one. As you know, pet coke is a peculiar fuel because supply is generally concentrated in the U.S. Gulf. So there are a few suppliers coming from the U.S. and it's one of the few commodities that you cannot really hedge unless you run a significant delta risk. So we -- actually, the only reason -- the only way that we can materially hedge is just buying forward what we need. And that's what we've done, and that's the reason why you don't see a meaningful movement in the thermal energy bill so far because we've been able to actually buy forward quite a lot of quantities for our needs.

Clearly, going forward, we need to monitor very closely the dynamic of this commodity. There is a double effect. One is the dynamic of the dollar; and the other clearly is of the commodity itself in our accounts. But we have a minor third leg to diversify or to try to hedge, to try to like split the purchase into different suppliers. But again, you don't have a very huge alternatives.

So we watch the space very carefully. Clearly, in this particular commodity, there's very little we can do in terms of hedging, as I said, besides buying forward. So we see -- we've clearly said in the presentation that this is probably one commodity that has a particular dynamic. But we believe that by buying forward plus diversifying the supply base, we can manage to not control, but at least limit the price hikes.

Francesco, would you like to add something?

Yes. I would also want to add that today, especially in Europe, our consumption of pet coke is going lower and lower because of the use of the alternative fuels that both in Denmark and in Belgium is around 75%.

In Denmark, we have already working the -- we are going at natural gas. And in Belgium, it will happen next year. In the United States, we are using natural gas. And in Turkey, we use just an opportunistic way, lignite that is a natural, let me say, coal. So let's say that the only countries that today go full pet coke are Egypt, China and Malaysia. That is account in terms of quantity that is less probably than 15%.

So let's say, for sure, it's an issue for sure. There is a limited framework where you can hedge. But compared to other players, let's say, the increase of the pet coke affect, let me say, our balance sheet in a minor way.

The next question is from Emanuele Gallazzi of Equita.

Two questions from my side. The first one is on the Turkish market. I know that is a very volatile market, but I would like to understand how do you see this market evolving in the coming quarter? And do you think that the Carbon Border Adjustment Mechanism could change the competitive environment there?

And the second one is on the CapEx because it seems to me that you are a little bit ahead of your target for the full year at EUR 130 million. Can you just comment on it? Are you, let's say, accelerating the green investments, just to understand the target for the full year?

Regarding investment, as we shared in the first quarter due to the very, let me say, unfavorable climatic condition, we sped up the part of the year, but it's not in our, let me say, pipeline to speed up. Also we just, let me say, invested I mean in CapEx more in the first part of the year because part of the perimeter was, let me say, was difficult to sell cement due to this unfavorable. So I think that probably we will be even a little bit less at the end of the year than the forecast.

The second -- the other question was?

On the Turkish market.

The Turkish market, let me say, besides a very slow start even for weather condition today, let me say, gathering pace. And so we don't think for sure that the Turkish market as a whole will be lower than last year, considering that we also had [ Kars ] that we sold to the plant. So we today have, let me say, one plant less or 12% of the perimeter less in terms of quantity. But we think that what we are seeing now even in July that there is a recovery in the market in consumption.

And also in part of the perimeter, the hiking of the price because remember that Turkey today still have an inflation that is around 30%. And so every month or every 2 months, you need to adjust, especially now because as you know, Turkey, they don't -- like most of the European country, they don't have, let me say, energetic power resource. And so every increase what we are seeing in the last 10 days then arise directly, let me say, in the cost of every product.

So -- as also what we saw in the last 2 or 3 years that it's easier when you have inflation to increase the price, and this is what is happening in the market.

And do you think that the Carbon Border Adjustment Mechanism may change the competitive environment?

Sorry. The carbon, let me say, the CBAM should let me say when it will, let me say, be in place like what we saw in Europe should start, let me say, to freeze to make the market because then if you don't have the free allowance -- even if the free allowance is EUR 10 or EUR 15 because as you know today in Turkey, I mean, the EBITDA per ton is between EUR 10 and EUR 20. So if you have an extra cost of EUR 10 or EUR 15, then you are not, let me say, you are not willing to expand capacity and just to give the extra profitability.

So what we think is that when this CBAM -- this mechanism will be in place for Turkey, it's a must because they export a lot of steel, a lot of aluminum besides cement. So it's in the interest of Turkey to start, let me say, this carbon leakage system to put in place this because otherwise, they cannot export to Europe and they will be taxed in a heavier way because for sure, to be taxed at EUR 80 like it is today, the CO2 instead of EUR 10, EUR 15, it's a big difference. But anyway, I believe that this should start to simplify the competition framework in Turkey, like what we saw in Europe starting from 15, 20 years ago.

[Operator Instructions] The next question is from Bruno Permutti of Intesa Sanpaolo.

The first one concerns Denmark. There was a recovery in the second quarter of the year probably and you highlighted that also the volumes of white cement were higher. So I was wondering how do you see -- the second half of the year if you see the recovery continuing? And in particular, what is -- why this different dynamic? So the quite good performance of the white cement in a relatively weak market in the first half, if you can explain the dynamic of this.

And a second question concerning the new customers in France and Belgium. I was wondering if the positive impact of the new customers will be seen also in the second half of the year?

The dynamic of white cement is different from grey cement. So it's affected in the high and the low of the cycle much less than grey cement. So the reason why I say -- white cement is, let me say, performing better is because of this.

Regarding what we expect in the second half of the year is that, let me say, besides the macro shocks that can arrive tomorrow, let's say, we see that there is still a mild recovery. There is some delay in the project, but delay means that it's not canceled. So if you delay something, let me say, in January, now probably you are going to start. So this is what we are starting to see in Northern Europe. That is not only Nordics, but even Netherlands or Belgium and even France.

We think that especially in France and Belgium, let me say, there has been the possibility just to -- market adjustment just to let me say, grab some, let me say, customers, but this is a normal situation that has happened. So I cannot, let me say, say that this customer will stay with us forever. But let's say that what you are talking about the next 5 months because we are at the end of July and probably next year, I am positive on this.

[Operator Instructions] Mr. Bianconi, there are no more questions registered at this time.

Okay. So then thank you very much for your interest in Cementir and for following this conference call, and we wish you a pleasant rest of your day. Thank you.

Thank you.

Bye-bye.

Bye.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

Good afternoon. This is the Chorus Call Conference operator. Welcome, and thank you for joining the Cementir First Quarter 2026 Results Conference Call. [Operator Instructions]

At this time, I would like to turn the conference over to Marco Maria Bianconi, Chief M&A and IR Officer. Please go ahead, sir.

Thank you. Good evening, and welcome to Cementir Holding First Quarter 2026 Results Webcast. I'm here with our Chairman and Chief Executive, Francesco Caltagirone.

Good afternoon.

We're happy to take your questions at the end of my short presentation. So starting with the key takeaways on Page 2. Q1 2026 results were impacted by marked seasonality and a different maintenance schedule. The harshest winter in the past 20 years in Europe and Turkiye together with a different maintenance schedule and a sharper-than-expected volumes and profitability decline in Turkey has impacted our results.

Volumes were down across our business lines, cement minus 3.3%, ready-mix minus 23.7%, aggregates minus 5.1%, mainly driven by weather disruption, a weaker demand in Asia Pacific and lower activity in Turkiye. Positive trends in Belgium and Egypt, following the restart of the second kiln and volume recovery was visible in March in some regions.

Revenue was down 7.1% year-on-year, driven by lower volumes across several regions and a negative FX impact of around EUR 21.4 million, mainly due to Turkish lira and U.S. dollar depreciation. EBITDA was down around 40.6% for the quarter, of which around EUR 25 million related to Nordic and Baltic and Turkiye reflecting lower volumes and different scheduling of maintenance activities, while the FX impact was negligible. There was no significant direct impact from geopolitical conflict on our operations in the first quarter, energy cost volatility been largely mitigated through a structural risk management approach and hedging while some pressure still persists on petcoke supply and logistics.

The full year 2026 guidance is confirmed despite a highly uncertain macroeconomic and geopolitical environment and pending greater visibility on its evolution in the coming months.

Turning to Page 3, a bit more granularity on the results. Revenues reached EUR 345.9 million, so minus 6% year-on-year. Non-GAAP revenue reached EUR 344.1 million, minus 7.1%. Lower volumes across several regions EUR 21.4 million negative FX mainly due to the Turkish lira dollar depreciation. As mentioned, cement volumes were down 3.3%, mainly due to exceptionally adverse weather conditions, weaker demand in Asia Pacific and lower activity in Turkiye, partially offset by a stronger performance in Egypt and Belgium.

RMC volumes were down 23.7%, aggregates were down minus 5.1%. EBITDA reached EUR 38.8 million minus 41.6%. Non-GAAP EBITDA was EUR 41.4 million, minus 40.6%. EUR 25 million of EBITDA declined was between Nordic and Baltic and Turkiye, driven by lower volumes on top of a different annual maintenance schedule.

Non-GAAP EBITDA margin stood at 12% as opposed to 18.8% in the first quarter of last year. Pretax was EUR 7.4 million and non-GAAP pretax was EUR 14.8 million. Net cash reached EUR 303.7 million, an improvement of EUR 160.5 million year-on-year, including EUR 51 million from the disposal of Kars Cimento EUR 19.7 million of insurance proceeds, EUR 18.6 million of the Just Transition Fund and EUR 52.2 million of dividends paid.

Turning to Page #4, focus on Nordic and Baltic, accounting from around 47% share of group EBITDA for the quarter. In Denmark, there were exceptionally adverse weather conditions, especially in January and February, leading grey domestic demand down by around 10%, the coldest start of the year in the last 20 years. There was a partial recovery in March with a plus 6% whereas white cement volumes were up 15%, supported by stronger demand. Exports were down 7% due to lower deliveries to Norway and Iceland partially offset by growth in the U.K., France and Finland.

RMC volumes were down 22%, aggregate volumes down 29% with a partial recovery in March. EBITDA was down 44%, again, impacted mainly by lower volumes and higher costs due to a different maintenance schedule. Norway, we have only RMC activity there and sales volumes were down 13%, impacted by weak demand and some delays in infrastructure projects on top of adverse weather, market with overcapacity and price competition.

Lower EBITDA was due to lower volumes and higher variable costs, partially offset by pricing actions. The Norwegian krone appreciated by around 2.3% versus the euro average in the period. In Sweden, RMC volumes were down 10%, again due to harsh weather, there was a very strong rebound in March, plus 14% and aggregate volumes were up 14%, supported by the startup of several projects.

March volumes were 60% up. EBITDA was impacted by lower RMC volumes and partly mitigated by aggregates performance and pricing. In the period, the Swedish krona revaluated by around 4.8% versus the euro.

Turning to Page 5, Belgium and France, accounting for around 42% of group EBITDA in the period. Here, domestic cement volumes were up 8%, supported by new customers and strong precast segment despite adverse weather and weak residential demand. Exports were up 30% in France and the Netherlands, driven by new customers, and there were signs of recovery in the French construction sector.

RMC volumes were up 4%. Aggregate volumes were up 4% as well, mainly in France and the Netherlands. EBITDA was down 12%, mainly because of the cement segment due to higher costs related to a different maintenance schedule only partially offset by higher volumes. RMC was impacted by lower volumes in Belgium and higher production costs.

Turning to Page #6 on Turkiye. I remind you that from April '22, Turkiye has considered hyperinflationary, and the reported figures are non-GAAP, i.e., they exclude the impact of hyperinflation and the valuation of nonindustrial property. In Turkiye, there was a highly challenging market environment impacted by hyperinflation, higher interest rates and exceptionally adverse weather in January and February. It was also the impact of Ramadan seasonality, and weaker post-earthquake reconstruction demand. As a consequence, domestic cement volumes were down 18% year-on-year, affected by severe winter conditions, weak macro and the disposal of the Kars plant.

Exports were up 80%, mainly due to higher deliveries to Albania, Bulgaria and other countries. RMC volumes were down 34% and aggregate volumes were down 30% on the quarter, impacted by weaker demand. Revenues were down 31.3% also because of Turkish lira devaluation. The EBITDA was negative, reflecting lower volumes and higher variable and fixed costs only partially offset by price increases. The divestment of Kars Cimento was completed on December 1st, 2025. I remind you that the Turkish lira devalued by 34% against the euro in the period.

Turning to Page 7. North America, accounting for 10% of group EBITDA in the period. White cement volumes were up 4% in the U.S., showing a resilient performance, despite competitive pressure, adverse weather and select pricing dynamics. Texas volumes were moderately down due to no storm in January and strong competition. In the York region, it was slightly down again due to harsh weather. California volumes were broadly flat, while Florida recorded a significant increase supported by a dynamic market despite aggressive competition.

EBITDA was down 1.7%, impacted by higher transport, cement purchase, energy and maintenance costs and some FX effect, partially offset by higher volumes and prices. The new aggregate business contributed positively. In the period, the U.S. dollar devalued by around 11.2% versus the euro.

Turning to Page #8, Asia Pacific accounting for 1% of group EBITDA. In China, volumes were down 15%, impacted by stagnant demand, intense competition and heavy snowfall in January and the slowdown around the Chinese New Year. Market environment remains weak despite the government stimulus. Revenues were down 24.7%. EBITDA was down 43.4% and the renminbi devalued by around 5.8% in the period.

In Malaysia, total volumes were down 30%, mainly due to timing difference in clinker shipments to Australia, while domestic volumes though marginal declined by 13% due to residential weakness. Cement exports were slightly down. Revenues were down 19%, while EBITDA at breakeven due to lower volumes, higher freight rates and scheduled maintenance despite better product mix. The Malaysia ringgit was up by 0.9% versus the euro in the period.

The last geography on Page 9, Egypt, accounting for 6% of group EBITDA. Revenues were up 41.5% despite the devaluation of the Egyptian pound of around 7.7%. Domestic cement volumes were up 50%, also benefiting from the timing shift of deliveries from December and the macro context, though, remains challenging with high inflation, currency devaluation and high energy costs. Export volumes were up 68% supported by the restart of the second production line in 2025, strengthening presence in the U.S. and Western Europe. EBITDA was up 6.4%, driven by higher volumes, partially offset by lower average price due to destination mix and higher energy costs.

Last Slide #10, regarding guidance, which is confirmed for 2026, despite a weak Q1 and the turbulent geopolitical scenario pending greater visibility on its evolution, we reiterate our full year guidance, which you can see here with the revenues up from the pro forma of last year, 5% to EUR 1.7 billion, EBITDA between EUR 400 million and EUR 420 million, net cash up EUR 125 million to EUR 590 million. This guidance refers to like-for-like ongoing operations, non-GAAP, and excluding any extraordinary items.

This ends my short presentation and now I leave the floor to Mr. Caltagirone, who is happy to take your question. Thank you very much.

Before you start the question, I want to point out a few things because for sure, this has been a difficult quarter and whatever could went wrong, went wrong and in a small quarter this is exacerbate the number. But let's say that, as Marco said, we reported EUR 41 million of EBITDA and our budget that you are not aware of was EUR 53 million. So anyway, 26 -- sorry EUR 16 million below last year. This means that today, in our forecast, we see a delay of EUR 12 million -- the real delay is EUR 12 million and is 100% linked to weather situation in Scandinavia and in Turkey.

The other part of the delta with the previous year, it is mainly due to the maintenance of different let me say planning, and this should be reabsorbed during the week the year. The second thing is that March, but even April seems promising. We are seeing a picking up of demand mostly everywhere except for China. Even, as you know, last year, the weakest part of our [ perimeter ] was Belgium, France and even in this difficult situation, Belgium and France performance quite well.

So now I am open to receive your questions.

[Operator Instructions] The first question is from Wim Hoste of KBC Securities.

Yes. My first question would be on raw material and energy costs and your pricing actions. So I'm wondering how much inflationary pressure are you seeing for the various cost items? And can you also maybe elaborate on how you are adjusting pricing to that? And so that's the first question.

And then the second one on me would be an update on the Nymolle acquisition. And are you still expecting closure there in the third quarter? And can you maybe give us some updates on the process and whether you see any antitrust issues popping up? Or do you expect that to be a smooth transaction. Those are my questions.

Okay. Starting from your second question about Nymolle. I can say that, so far, the communication with the antitrust are smooth and regular. We expect probably by end of June, early in July an answer. And so far, we don't see any kind of let me say an issue.

Regarding the cost pressure, hyperinflation pressures as, let me say, say recently in a meeting in the Milan Stock Exchange is that if the situation will continue as it is today with sort of happen down in the energy prices and special logistic prices, we are going to book nearly EUR 38 million of extra cost. And we have more or less in all regions already has applied a new list price. As you know, there is a lag, but as I said, what I'm saying is that already in April, we are seeing that we are recovering most of this cost inflation. So this is our forecast as we see and now the things and with, let me say, the oil around 100. Then if the situation might change abruptly, we are -- we have to design a different scenario. But so far, let's say that this EUR 38 million that are the energy and especially logistic land and sea logistics can altogether bring, let me say, the sum of the extra cost to EUR 38 million.

The next question is from Emanuele Gallazzi of Equita.

You have, let's say -- I can start with two questions. The first one is on the volume side. You clearly mentioned some volume recovery in March and let's say, positive indication on April. Can you just discuss a little bit more on tier specifically on the Nordics and on the Turkish market? And still on the Turkish market, can you say, elaborate on your expectation for the full year given the weak start to the year. And the second one is on the guidance because basically, the guidance is pointing to a flat EBITDA, and you started the first quarter short of EUR 30 million year-on-year or EUR 12 million versus your budget. Can you guide us on how and when do you expect to recover this EUR 12 million versus your budget? And if there is any specific country supporting this improvement in the remaining part of the year?

In terms of volume recovery, we are seeing -- continue to see some recovery in France, Belgium, let's say that Norway is still flat because let's say also the pickup in consumption in April, we have also Easter holiday. So to see the full recovery we might, let me say, check at the end of May. But we are seeing a recovery in France, Belgium and also in Turkiye.

In Turkey, in our budget, we already discounted some lower volumes because of the end of some, let me say, big projects for the earthquake, so in our, let me say, scenario and guidance was already booked that Turkey would have been a bit weaker than this year. But let's say, so far, besides, as I mentioned, the weather issue, we are not seeing other issue other than, let me say, cost inflation, but let's say, we are recovering this cost inflation by, let me say, adjusting the least price almost everywhere.

And it seems -- let's say, I cannot say that, as you can imagine, you can update the list price every week, but for the gap that we saw for the first let me say, two months of this war. Let's say, we have, let me say, already align the prices. So we think that we might recover let me say, this cost inflation that is EUR 38 million during the year.

In terms of recovering the EUR 12 million of gap weather, let's say, statistically, when you have this, let me say, harsh winter, more or less, you recover during the year between 2/3 and the whole amount because, let's say -- so I cannot say that the weather in the next 8 months will be beautiful, but let's say that usually, you should recover around -- to 75% of this gap. So if we leave, let's say, a gap of EUR 4 million, EUR 5 million so far to be recovered, let me say, in the perimeter during the remaining 8 months of the year. So something that we see affordable now.

The next question is from Matteo Bonizzoni, Kepler Cheuvreux.

I have two question. The first one is related to Turkey. So Turkey seems more than just weather related, now, because we have clearly said that there is this end of the year earthquake, construction effect, which I think is going to last. So my question is what is your budget assumption for volumes for Turkey this year?

And the second question is, if to maybe help bridging the gap in meeting the bottom end list of the guidance, which would be basically flat EBITDA this year. Are you also implementing sort of cost actions. We know that for a cement company, I mean, a part -- the key costs are energy cost maybe maintenance, logistics and so on. But maybe are you implementing or not some targeted cost actions on other costs to maybe to fill the gap?

Starting from the second question, the first one will be answered by Marco. I can say that we are put in place all the action that we can recover. As I said, today, let's say, we reported, as you know, EUR 41 million against, let's say, around EUR 400 million for the full year. So this is the 10% of, let me say, our full year results. So what I'm saying is that having the other 90% of the results that has to be deployed, I think, as I also said before, that we have more than reasons to believe that we can recover the gap. And also if the war end, let me say, few times also declared by the U.S.A. shortly that the recovery might be also even larger. But today, it's difficult to forecast. We are doing whatever we can, and we see the possibility, as I say that we can close this gap.

On your first question, I mean, internally, our projection for volume growth in Turkey is negative 13%, 1-3. So we were already budgeting for a double-digit decline in volumes for the reasons you just explained, which is the phasing out of a number of structural projects and say, the tailwinds of earthquake reconstruction. So that was already in our internal numbers. But if I can add one thing, the government just a few weeks ago, asked to all the company in Turkey to carve the export because they see because of Syria and other potential, let me say, reconstruction that there is a potential big outflow of cement from Turkey, and this could create some, let me say, difficulty in finding the cement in some part of Turkey. So this seems bullish because the same thing has been asked more than two years ago, and they carved the export, and they are trying to do the same now. So their expectation is that probably what is not, let me say, absorbing now the internal market can be more than, let me say, balanced with the export in the surrounding region.

The next question is from Egor Sonin, AlphaValue. .

Sorry for [indiscernible] once again with Turkey, but I have -- you said that your ready-mix concrete volumes were down 34% and aggregates minus 30%, while cement was only down 18%. Probably it's a question from an immature, but it seems to me that that's an unusually wide gap between cement and downstream products. Could you probably give some colors through what's driving this divergence, what the difference between them? Is it a project mix, regional concentration, competitive dynamics or something else? -- why they do not fall equally, for example?

Mainly we don't serve by 100% our ready-mix. So sometimes in some parts even because it's more convenient to buy for logistics from other parts. So you see a wider gap in ready-mix and the lower gap in cement because mainly some part of the cement has been bought in the past from several of our ready-mix plant from other competitors. So we say we lost, let me say, from a market point of view, part of this ready-mix supply directly of our cement, but some it is suffered by other competitors.

The next question is from Alessandro Tortora, Mediobanca.

And 3 questions okay if I may. The first one is a clarification on the comment you made on the extra cost linked to fuel and logistic cost. So the amount you mentioned, the EUR 38 million, is it something you already accounted? Is it something you forecasted? So just to understand which kind of, let's say, assumption you made on this, also considering now that you implemented the announced price increase. So just to understand the assumption behind this, if I understood well, you mentioned the [indiscernible] price close to $100 sorry. So just to understand the assumption behind this and if this is basically an additional delta compared to your margin? This is the first question.

When I think everybody made the forecast for 2026, it was impossible to forecast the war. Now what we have forecasted is just that -- and at the beginning of this, let me say, problems, there is a lot of volatility. So now the things are more, let me say, stable even, let me say, with the oil around $90, $100. So electricity, oil and especially the diesel for inland distribution is hitting a lot, I think, everybody.

So our forecast is just saying that if the actual situation going forward by the end of the year, we will have -- we will sum up extra EUR 38 million of cost. Now with the extra, let me say, price hike in the various regions, we will recover most of this with a bit of a lag. But usually, you have a lag in the beginning, but you then when the situation -- you should come down, you, let me say, don't adjust, let me say, with the same speed the list price. For sure, within the big project, there is the list price for normal, let me say, customers and then there is the supply for the big project. For sure, the big project has been treated in a way where we say, okay, we don't know where the energy price will go up and down. We will charge you every week or every two weeks, the extra cost. So as soon as they go up, we will charge you every, let me say, 1% increase. But as soon as they will go down, we will realign with 14 days of delay. So this is for the big project. For the other, the list price that is adjusted in a monthly basis.

Okay. Okay. And as you said before, this is basically pure logistics, while electricity, is it something that you mostly hedged, if I recall what you said...

Yes, I think. Yes, most of the electricity and gas supply is hedged, mainly the diesel and oil for distribution that is, let me say, most of this cost -- the origin of this cost.

Okay. Okay. Then the second question is on Denmark. First, I read in the press release that there was an update on the Denmark Energy division, something like this, regarding the grant or something like that you are going to get production. So if you can comment which kind of next step we are going to have into the project, because if I recover this step was pretty important for you on the OpEx side. And still linked okay to Denmark. Also if you can help me understand which kind of volume, let's say, expectation we may have this year considering now the negative start in Q1?

Regarding our carbon capture project, you are right. Yesterday, the Danish government wrote that we are fully eligible. This means that we can ask for the funds together with another, let me say, electric player. This means that when we will sign and we are wait to sign, let me say, the contract because as probably you are aware, the project is divided in three parts. One is the capture inside the plant, then there is the pipeline, and then there is [indiscernible] size. So we need to have more visibility on the other two steps because as you can imagine, we need to end up aligned. So -- but this means, as I said, that there will be when the project will go, let me say, live 2030, 2031, depending also on the other two part of the project that we might recover, I don't know, a few, let me say, let's say, from EUR 50 million to EUR 80 million per year of OpEx.

Okay. And sorry, just, let's say, the question also on Denmark related to, let's say, the expectation for the full year on the volume side because in the past, probably you comment on, let's say, lower contribution from the public works. So if you can, let's say, give us an idea of your year-end expectation for Denmark?

Sorry, just to complete the previous answer, this amount is per year for 15 years. So it's quite an important amount if you, let me say, multiply from 2030 to 2045. Regarding your last question, Marco, please.

Yes. Our expectation for the year is that Nordic and Baltic cement should grow in low single digits. That currency should be the same roughly and the aggregates again, between 0% and 5%. These are the central budget expectations. Now clearly, Q1 has been very harsh. But we, as the Chairman said, expect to recover. There are signals in March and April that there is a rebound. So this is the central budget in our numbers.

Yes, Nordic and Baltic recovering volume to 6%, so.

Okay. Okay. And the last question, sorry, is on Egypt. I recorded last year, let's say, huge volatility also due to the second production line. In the end, in absolute terms, the EBITDA in Q1 was basically similar to the one you had last year. The reason why, let's say, we didn't have let's say, progress on the EBITDA side. Is it due to a matter of energy cost, as you mentioned in the press release? Because I recall it that in full year, you mentioned the expectation of having EUR 17 million, EUR 18 million EBITDA for Egypt. So just to understand which kind of progress we should expect now in Egypt.

As you are saying our forecast is this is as for everybody is the maintenance month. And so, let me say, this charge, as you say, the result is similar to last year because, let's say, having two lines, we have, let's say, the double of maintenance. But during the remaining part of the year, you will see that we will recover and the volume and the revenues are already picking up taking consideration that during February, March, the Egyptian pound devaluated 12%, the average is 7.7% in the quarter, but just in the last months, devaluated 12%. So this will be recovered for sure, but let's say, it is difficult to show the full potential of, let me say, the second line in action just in the first quarter. But let's say, we are completely aligned with, let me say, the forecast that we have for Egypt for the full year.

[Operator Instructions] The next question is from Bruno Permutti, Intesa Sanpaolo. .

I wanted to ask about Belgium and France. I was a little bit surprised of the positive dynamic for volumes, for domestic volumes in the first quarter. So I'd like to understand if it is a challenging -- sorry, an easy year-on-year comparison that -- or also you mentioned new customers. So if you can elaborate a little bit above all for understanding if this can impact in your budgeted volumes expectations for Belgium and France for the rest of the year or if it was already factored in your budget?

And a second question concerns the pricing environment. I would like to understand if you are -- what was on average the price environment on the -- in the first quarter of the year? And if you plan pricing only as an instrument to offset eventual increase of costs or if you have in mind any way that there could be room or further price increases in some areas independently of that and perhaps also in relation to CBAM in Europe. So how do you see the price environment going forward?

For sure, the price environment at the beginning of the year was, let me say, slightly up in most of our region. Then let me say, it arrived, with headwinds of energies and now we are readjusting. As you can imagine, to recover EUR 38 million of cost or revenues of EBITDA over 400 is likely nearly 10% on average. So in some areas, it's a huge increase. So frankly speaking, I don't see the space to increase further because then there is also the issue about market absorption of this because what we are seeing in, let me say, various region is that most of the customer like probably most of us are expecting a faster solution to this, let me say, war.

And so they -- what they are acting is that they postpone a few weeks, a few months, the start of the project because they say, okay, but in 3 months, probably the cement or the cost of everything because cement is just part of the cost of infrastructure or real estate will come down. And so this is having a little bit of headwind in the consumption in some areas.

So we don't want to exacerbate the relationship with the customers and with the reality. So frankly speaking, I don't see space to increase further probably -- I mean, the best thing that we can hope is that we will have, let me say, a slower unwinding of some of the price hike in some areas that can, let me say, let us to recover more than what we suffered, but this is our best guess. The other question...

Belgium and France volume.

Yes. Belgium and France, as you know, last year were quite depressed because of the end of the Olympics in 2024. So we were forecasting that there should have been a bounce and new customer just, let me say, because we are repositioning ourselves, especially in Northern France, because we served or supplied some of the big projects in the Paris area during Olympics and for sure, we need a bit of time to, let me say, recover the -- our portfolio of clients or different clients because some projects, as you can imagine, are one-off linked to the Olympics. So we see that if there are no other, let me say, issue this trend should continue for France and Belgium. .

[Operator Instructions] Gentlemen, there are no more questions registered at this time.

Excellent. So thank you very much for your participation, your interest in Cementir Holding, and we wish you a pleasant rest of your evening and day. Thank you.

Thank you. Good evening. Bye-bye.

Bye.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones. Thank you.

Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Cementir Preliminary results for 2025 and 2026-2028 Industrial Plan Update. [Operator Instructions]

At this time, I would like to turn the conference over to Marco Maria Bianconi, Chief M&A and IR Officer. Please go ahead, sir.

Thank you. Good evening, everybody, and welcome to Cementir Holding 2025 Results Presentation and their industrial plan updates. This is Marco Bianconi speaking. I'm here, with our Chairman and Chief Executive, Francesco Caltagirone.

Good afternoon.

Who is happy to take your questions at the end of my short presentation. So going to the presentation deck on Page 5. We have highlights of the preliminary results 2025.

Revenue reached EUR 1.639 billion, minus 2.8% year-on-year. Non-GAAP revenue was flat at $1.644 billion. There was a EUR 97 million negative impact from currency depreciation, mainly Turkish lira versus the euro. Cement volumes were up by 3.1% in Turkey, in particular, but also Egypt, Asia Pacific. And some volume reductions in Nordic and Baltic and Belgium. Ready-mix volumes were down by 4.8% due to negative performance in Turkey, Denmark and Belgium, whereas aggregate volumes were up 3.4%. EBITDA reached EUR 439.5 million, up almost 8% year-on-year. Non-GAAP EBITDA was EUR 460.2 million, up 15.3% year-on-year. This figure includes EUR 52 million of net nonrecurring gains, of which the major items are EUR 36 million capital gain from disposal and EUR 19.7 million of insurance proceeds for the fire at Gaurain plant in Belgium.

2024 figures include also 4.4 million charges nonrecurring. Non-GAAP EBITDA, excluding both nonrecurring items, was EUR 408.2 million, up 1.1%. Also on EBITDA, there was almost a EUR 21 million negative FX impact due to translation mainly from Turkish lira into euro. Profit before tax was EUR 286.3 million, up 0.5% non-GAAP profit before tax, EUR 325 million, up 10%. Net cash position at the end of the year was EUR 465.1 million, an improvement of EUR 174.6 million year-on-year, including $43.5 million of dividends by the parent company, EUR 9 million of dividends to third parties and EUR 51 million proceeds from the disposals of Kars Cement.

On Page 6, you can find our 2026 guidance. We expect for this year revenue up around 5% to EUR 1.7 billion on a pro forma basis, excluding the contribution of Kars Cement, which was sold on December 1, 2025. We also expect an EBITDA progression between 0% and 5% to a range between EUR 400 million and EUR 420 million for the year and a net cash position at year-end up by EUR 125 million to EUR 590 million. This is after CapEx of around EUR 128 million. This guidance refers to like-for-like ongoing operations, non-GAAP and excluding any extraordinary items. And please bear in mind that the starting figure is pro forma and its restated excluding the contribution of Kars Cement, which was sold on December 1, 2025.

Now moving to the industrial plan updates. Quickly on Page 8. The 5 strategic pillars are unchanged. Just one highlight about sustainability. We continue to implement our CCS project in Denmark. We are investing in value chain circularity and a number of renewable energy projects.

As far as competitiveness, we are streamlining and standardizing all group processes. In terms of innovation, we are outlying artificial intelligence to business processes, and we are working on widening our portfolio by including an increasing number of low-carbon cement and other value-added solutions.

As far as growth and positioning, we want to keep reinforcing our vertical integrated model in the three key countries -- regions, Nordics, Belgium and Turkey. And we want to keep our global white cement leadership, and we want to be opportunistic on M&A if and when the opportunity arises. We also are investing on our trading business and investing for further development there.

As far as people and safety, we are implementing a zero accident program, fostering a high-performance culture focused on safety, and we are attracting talent, focusing on sustainability and innovation.

Moving to Page 9, just a few highlights regarding the key themes and trends in our industry, which we are addressing in our industrial plan, the first being climate change and decarbonization. There is a trend towards more stringent CO2 and new building regulations across Europe for sure for a number of countries. There are a number of technological solutions for net zero like CCS, which we are implementing, and there is increasing demand for low carbon products, which we are addressing through our FUTURECEM and D=Carb product ranges.

As far as urbanization and infrastructure gap, we see this trend of population growth and urban migration. There is an increased public private infrastructure spending. Therefore, we believe there is significant pent-up demand for our products.

As far as resource efficiency and circular economy, we are clearly fighting the rising energy and raw material costs. We are increasingly using alternative fuels and recycled materials, and we are embracing circularity in every aspect.

The last one being innovation, digitalization and efficiency. We believe that there is a trend towards new and more efficient building methods, and that's clearly a trend towards reduced content of clinker into cement and reduced content of cement in concrete.

Moving to Page 10. These are our Scope 1 emissions 2030 decarbonization targets. As you can see, we are targeting a 42% reduction in gray cement emissions per ton of cement equivalent versus the 2020 baseline. And this is an objective that is beyond the taxonomy level. As far as white cement, the reduction is 20% versus 2020, and again, you can see the reduction in 2030 to 730 kilograms per tonne of cement equivalent.

Turning page to 11. We have the actual projects live. Just to provide you some more information regarding this project. As you know, this is a pioneering project, one of the largest onshore systems multi-stream in Europe, meaning that it's processing emissions for both white and gray cement through a single operating unit. And thanks to this proprietary innovative technology, Air Liquide, our technology partner will capture, purify, liquefy approximately 95% of the CO2 emitted by the cement kilns. This project targets 1.5 million tons of CO2 to be captured annually. We have been awarded EUR 220 million grant by the European Innovation Fund. And we expect this project to be operational from 2030 according to the timing of the new logistic infrastructure, which depends on third-party responsibility.

Moving on to the awards on Page 12. As you can see, we had a continued ESG commitment. We have been awarded during 2025 with a number of recognitions CDP included Cementir in the A list for the second time. We have been awarded by Statista and Financial Times, one -- we've been appointed as one of Europe's climate leaders. And in June 25, Cementir was also included in the TIME ranking of the world's 500 most sustainable companies. And you can see underneath the table where you can see the progression in the rating from main agencies on our company.

On Page 13, just a flash regarding innovation. We continue to invest in transition towards lower carbon products. We have solution for low carbon cement and solutions for low-carbon concrete. In the low-carbon cements, we are adopting the FUTURECEM technology, which saves up to 30% of CO2. And clearly, there is a progressive shift to blended cement with lower carbon footprints in all regions, leveraging on additional SCM materials and limestone. There is a global expansion of the D-Carb white cement family, which is reducing emissions by around 15%, and we're providing transparency and credibility on this product through an EPD declaration showing environmental footprint and life cycle impact.

As far as concrete is concerned, we are promoting sustainable ready mix concrete through circularity and low-carbon cement. We have a new low-carbon range in Denmark, Norway called [ Universal ]. We're also launching C-Green range in Belgium and France, and we also are extensively using low carbon concrete in Turkey, where we are front runners.

A few slides regarding the financials on the industrial plan. On Slide 15, you can see the main highlights. These figures exclude the intensification of geopolitical tension and any extraordinary event, of course. And you can see that the revenue we're targeting is EUR 1.95 billion by 2028, which implies a compounded annual growth rate of 6% to 7% from the base pro forma of EUR 1.6 billion. Again, the pro forma is calculated by excluding the contribution of Kars Cement, which was sold on December 1, 2025.

As far as EBITDA, we are targeting a 4.7% compounded EBITDA growth in the three years, which will lead us to target EUR 460 million of EBITDA with an EBITDA margin of around 23.6%. The net cash position is clearly on the same perimeter is going to grow by EUR 330 million from EUR 465 million to around EUR 800 million by 2028 year-end.

Just the last couple of slides, on Page 16, a few details about the targets. As I mentioned, the revenue compounded growth rate in the period is based on a moderate increase in cement volumes in the main geographies, namely Nordic and Baltic, where we expect residential construction improvement from 2027, a higher export volume from Egypt, where both operating lines will be running and an improved trading in Belgium, China and Malaysia, partly offset by lower volumes in Turkey in 2026, both because of the disposal of Kars Cement and also for trading reasons. Volumes compounded growth of 2% to 3% for cement and 1% for both RFC and aggregates. We expect prices to be generally in line with local inflation, particularly in Turkey, reflecting higher energy, raw material, CO2 costs.

As far as EBITDA, we've already touched upon the growth, which we expect in every region with the exception of Turkey. We also note the increase that we expect in raw material cost, electricity and certain fuels. And there will be some negative impact from currency volatility, namely Turkish Lira and Egyptian pound. We are, on average, short 130,000 tons of CO2, including a step-up in 2027 due to lower free allowances at our European plants. The margin will be mean reverting slightly to what we think is a long-term average.

The maintenance and expansion CapEx is within the industry norms between 5% and 6% around EUR 129 million per year with a cumulative CapEx of EUR 386 million of which EUR 77 million for sustainability initiatives, including EUR 16 million for the ACCSION project in 2026. Please bear in mind that ACCSION net CapEx group share from 2027 will be around EUR 120 million in the following three years. The profile of net cash out will depend on the timing of the logistic infrastructure execution which is third-party responsibility. Please note also lastly, that cumulative free cash flow generation will be around EUR 330 million with a progressive dividend payment in the range between 20% and 25%.

This leads me to the last slide, which is the CapEx highlights. As I said, EUR 386 million cumulative investment, of which EUR 77 million sustainability and EUR 16 million for CCS. The main projects are ACCSION in Denmark, wind turbines in Belgium, facility upgrades for FUTURECEM natural gas transition in Aalborg and Gaurain.

This ends my presentation, and I leave the floor to Mr. Caltagirone, who is happy to take your questions. Thank you very much.

[Operator Instructions] The first question is from Wim Hoste of KBC Securities.

Yes. I would have three questions, please. The first one is on the CBAM regulation. Is that having any impact on your businesses and markets? And can you maybe comment on that?

The second question would be on Egypt. You opened a second line last year. Can you explain us how that is driving growth in that market and also what the profitability impact of that growth? I think you mentioned in the industrial plan that you see a pickup in volumes in Egypt. So a bit of more clarity or granularity on that would also be helpful.

And then a third question from my side would be on M&A. In the industrial plan slide or [indiscernible] there is also mentioning that M&A is still a possibility. I think in the past, you were a bit cautious to do M&A, looking at all the regulatory changes on the environment, et cetera. Is that attitude now changing? Or are you still maintaining an organic growth for the short term? Those are the questions.

Thank you for your question. The first one about CBAM. So far, frankly speaking, we haven't seen a lot, especially because in the northern country and Northern Europe, the weather has been so bad that especially, as you can imagine, during the last part of the year and in the first part, you use the inventory that has been built in the previous quarter. So now I think from the moment that the weather, the bad weather were hit the business between 10% and 20%. It is difficult to evaluate if CBAM in place have, let me say, helped or not the business. So we need a few weeks or a couple of months probably the first half of the year to understand better how it is working.

In Egypt, we expect that this year, the problem that we suffered last year for qualities has already been resolved. And we expect that we increase our sales, especially to the United States. The El Arish port is already working for the first time. We sent a vessel of 35,000 tons directly to the states. And so we expect to increase the profitability of the Egypt that nearly 50%, 60% this year should be around EUR 18 million of EBITDA.

Regarding M&A, we have the same, let me say, attitude, we would like to expand our business and perimeter. I know that especially in the latest weeks, there has been rumors about, let me say, possible change and enhancement of the CO2 framework. This framework has been built in the last 20 years. I don't think that in a few months or weeks can be, let me say, amended or changed probably. I think that because I expect more questions on this, let me say, item that Europe realized that has a competitive gap on, for sure, electric vehicles against China. And we have seen Stellantis what have done a few days ago in terms of write-off. And the competitors from Eastern Asia are heating up their market, especially now in Germany, and they are suffering.

The second thing, second issue is about the energy production. You know that in the last few years, most of -- a lot of coal-fired plant has been, let me say, announced the phase out. I think that the world and especially Europe and United States will need more energy. So there will be more addition. The issues today, I don't think is that to swap back from, let me say, green emission to let me say, gray emission is that probably we need more energy. And in a short period of time, more energy can come only from coal fire plant. And this will increase the emisson. So probably a release on certain level of, let me say, quarters can help more energy production.

I don't think, frankly speaking, that after you as for the billions and millions in grants, especially in cement and steel will now revert is, let me say, attitude. And even if the phaseout of certain, let me say, critical threshold in CO2 emission will not, let me say, change the attitude that in this sector, I can say that especially from the biggest or bigger competitor, is quite constructive because we are starting to implement, let me say, the technology to produce green cement probably in the next [ five ] years. But today, except as you all know, a small plant in Norwegia owned by Heidelberg. In the next 5 years, no one will produce low-carbon cement. So I don't know how this can, let me say, affect the, let me say, the system or the balance sheet of the cement player in the next 5 years. Then if we will have more, let me say, probably in the Phase II, I mean, after 2035 to 2050 to have, let me say, a more comfortable, let me say, path to arrive to zero cement, probably this can help.

But now I don't think, but this is my personal attitude that, let me say, they will -- they want to stop, to slow down because compared to United States, for example, as you know, 90%, or more or less 90% of the cement in the United States is owned by European players. And they can transfer the technology from Europe to United States. That is the only, I think, a way because usually, we take the technology from the United States, and we bring to Europe. I don't think that the cement sector that today is that the edge of this technical shift should, let me say, stop or Europe should push to stop. But let's say, we are at the very beginning. They have started to talk about announcement of the framework, but probably we have to wait June or July to understand which will be, let me say, the future framework for CO2 emission [ for us ].

The next question is from Matteo Bonizzoni of Kepler Cheuvreux.

Yes. I have some questions. The first one is rating on ACCSION. What you're writing in your press release on ACCSION is that in 2026, you will expend EUR 60 million of CapEx. But the sum in terms of CapEx has increased from EUR 100 million to [ EUR 100 million ], now you're guiding, if I'm right, EUR 90 million to EUR 100 million, now it has become EUR 120 million. And above all, you are also saying that the 2027-28 CapEx figure are not including ACCSION because you are waiting these, let's say, higher visibility or details on the third-party public and private entities CapEx for the logistics and storage and so on.

So what is at stake here? You have not put the CapEx because you don't know the timing? You have not put the CapEx because you don't know exactly if they will fulfill these investments? Help us understand what is at stake here in terms of your decision not to put this CapEx in your CapEx plan?

Then regulation on CO2, second question. You have partly answered it. Clearly, it's a hot topic now because the market is reasoning about the potential impact of this revision, which so far has been just leaked by press sources, by the way. And -- so I would say this relates -- the phase out of reallocation, which could be postponed, this relates to cap and other technicalities.

So my question is in case this revision is going to prove true, would you enter a sort of -- wait and see and standby stance on your decarbonization project or absolutely not? You are, in any case, committed to go ahead according to your previous plan?

Third premium is a third question, if I may, is price premium for green cement. There is a debate in the market. You have just said that currently only either materially selling a small quantity compared to the overall market of Green cement. So how can we [indiscernible] that the green cement will enjoy a good pricing premium or not in a mass market situation because there are various versions here. Somebody is saying that, "Absolutely, this is very unlikely", okay, that the market will be ready to pay a decent premium, okay, or a big premium and other sources, which, for example, either materials clearly are more constructive.

How big part of the equation of the return is price premium or not? What's your view? So I mean it's very early days. So I think it's very difficult to provide an answer to this, but maybe you have a view.

Last is Belgium, if I may. Where we are on the European grant? So I am understanding that you could achieve a grant in Belgium, maybe this year or next year. And also, given that it's not a costal plant differently from Aalborg and is also smaller, a slightly smaller plant. In terms of return, cost to do the carbon capture and storage, how it differs from Aalborg?

So let's start with that. First, ACCSION projects. So we wanted to put them in what is already approved by our Board ask for, let me say, investment. And for sure, we have put this around EUR 70 million because the electric line and transformer that will allow the plant to ask for more energy after the CCS implementation.

Regarding the remaining EUR 120 million because as you can imagine, this is a new technology. We are talking about contracts that, let me say, will -- or contractor that we supply material 4 or 5 years. And so there is also their view in inflation. And you know that especially the metals part of raw materials are increasing. So our, let me say, forecast of EUR 100 million, we have rounded to EUR 120 million. I think it's a minor adjustment. And we are going to put this EUR 120 million, that is roughly EUR 30 million per year for 3 or 4 years, depending on when we will have the complete, let me say, scenario or when we will be aware of the whole scenario because besides our investment in the plant together with Air Liquide, we need to have the connection with the pipeline that is built by a public company, [indiscernible]. And then we also -- we need final certification of the storage area. And this will arrive between the first half of 2026 and the first half of 2027. So if there are delays, I think we need to postpone this EUR 120 million of investment.

So for this reason, we haven't put so far. We just, let me say, underline that the costs are there, but we think that probably, frankly speaking, because if we will have to wait the half of 2027, we will start to spend in 2028 as earlier. So in the last year of this industrial plan. And as you can imagine, I don't think that we are going to spend all the EUR 120 million in one year. So this is the reason why we prefer to have this kind of approach.

The second question is about the green cement. I mean, today, as I say, there is no green cement availability except for a small quantity because even in Norway, they are in a ramp up. So the plant is, let me say, the plant should produce 400,000 tons of green cement today combined earning, we are around half because there is a ramp-up, and this is usual. So today, there is no premium price. And probably, we are already asked by the Norwegian government to buy because we produce, as you know, ready-mix in Norway, and we buy cement, and they are, let me say, oblige the customer to use the cement, especially for public works. So we will buy some smooth quantities of these green cement made by Heidelberg in Norway.

But let's say, I think that in the next 5 years, this kind of, let me say, mandatory usage of this cement should be, let me say, enlarged, especially in the Nordic country because most of the green cement production will be expected. So I am aware because I had recently direct talk with the Danish government that especially after the Greenland issue with the United States, they are not, let me say, they don't want, let me say, to change their approach, especially for this green deal because somebody in U.S. is telling exactly the opposite. So I don't know -- I am, let me say, an interpreter but let's say, I am -- just 10 days ago, I could, let me say, realize that there is a strong willingness to go forward. And also, we have applied for the Danish fund that should supply another tranche of grant for this project, but we will be aware of the final result of this after Easter.

So when we will have the grant? We already have received the grant from the European Union. As I say, the execution risk for this project should be very limited considering also that we are the only producer in them. So I don't think that other, let me say, other players that can continue to sell cement, let me say, that won't be greener, let me say.

On [ CDP ], the project is more or less the same. The only difference is that in Belgium, there is not on offshore storage. Today, the design of the project consider that we ship the CO2 by pipeline that has to be built to the port of -- one port in Belgium and then transfer by ship to the Aalborg port then injected in the same storage area of Aalborg. For sure, I expect that before -- because we have, let me say, up to last nearly two years of delay compared to Aalborg that the price should be lower and even the size. We have applied for a grant for Belgium last year. We were, let me say qualified, but they didn't have, let me say, enough fund. So we expect -- we don't have to submit another time. We just need that -- they refinance, let me say, and they should refinance for our sector or for other sector this year. So we expect that this year, probably October, November, we should have, let me say, some news. I don't know if I missed some questions.

Just a short one. What is the fee which you're going to pay to Air Liquide? Because Air Liquide is going to do most of the CapEx, no? I mean I don't want to know EUR 1 million but I think they are doing most of the CapEx, so they will want to be remunerated, no? Can you confirm that?

Yes. I cannot say this now because it also depends on the time frame they can have, as usual, as you can imagine, every kind of project a sort of premium if they go faster, if they -- because the technology is provided by them. It's not provided by us. So there is also a sort of level of satisfaction between, I don't know, I can't say between the 90% of capture and 100%. So it depends when we will land at the end with a real capture of CO2 between 90% and 100%. So frankly speaking is it's early now, we all -- it also depends because the grants that we should receive from the Danish government should help to, let me say, build the right, let me say, cost formula for this cement.

The next question is from Alessandro Tortora, Mediobanca.

Yes, good evening to everybody. I have three questions, let's say. The first one is just a follow-up on the ACCSION project. Just want to understand that. So you mentioned the possibility to get this fund. Is it something that is going to help on the CapEx or on the OpEx side of the ACCSION project? This is the first question.

The second question is on, let's say, the Turkey outlook. So if I understood well, I know you mentioned several reasons on top of the change perimeter why Turkey is going to have a negative contribution in EBITDA in 2026. Can you give us an idea of what are, let's say, the moving parts, considering that the low end of your EBITDA guidance is basically assuming zero growth? So which kind, let's say, of outlook do you see because you also mentioned this post earthquake demand that is going to normalize in Turkey this year. So this is the second question.

And the third one is just a comment on, let's say, these steep decline in CO2 prices we saw over the last month. Let's say, maybe this is change into CO2 prices this decline may change your commercial approach this year from a pricing standpoint or let's say your price leasing in a certain way pegged a little bit to CO2 prices. So just to understand how you're going to manage this change into the CO2 price outlook.

The Danish fund is a fund that will supply us, let me say, a balancing from higher energy cost and will be on OpEx and will last the 15 years starting 2030. So it will last until 2045 and should contribute to lower and balance the extra growth for energy. But today, we don't know how much will be because we will know in April.

The second question is about this year forecast. As I said, the perimeter is a bit -- very -- a bit changed with just a matter of 1.5%. We have to take -- we were slightly positive in November when we built this industrial plan but today, after 6 weeks of a very harsh winter is difficult to expect that, let's say, we can, let's say, do better because, let's say, we expect that until the end of February, there will be, let me say, a lower output in Scandinavia, in Turkey, and partly also in Northern Europe, but this has affected the old market. For sure, this will be -- will come at a couple of months, this is the worst winter in the last 15 years in the Nordics.

Starting your last question, the planning of the CO2 price that this is, I think, is not affecting because, let's say, we pass the cost as it is on a monthly basis, on an average to the customer. So if it increase, the price we'll increase, if it will decrease, we will decrease. So it's like VAT, right? So something that we collect, and we give back.

Okay. And sorry, and this is something, let's say, this is revision or like a monthly revision you do? Or if you can, let's say, something you trigger? Just to understand because as I said again...

No, there is -- we charge the customer with the formula on a monthly basis.

Okay. And sorry, is this formula used, let's say, in all your countries? Or we are referring, I don't know, to all the countries, I would say, except for Turkey? Just to understand the perimeter of this formula.

We [ charge ] this in the country where, let me say, in France, Belgium and Scandinavia, yes, we use this formula. But this is, I think, is the most widespread formula used by also other competitors. Nobody wants to hedge or to leverage on CO2. I mean, it's a tax [indiscernible].

The next question is from Egor Sonin of AlphaValue.

Good morning, everyone. Thank you for picking my questions. For 2026 until 2028, you plan to assume higher raw material, electricity, and fuel cost. Is it possible to provide EBITDA sensitivity to change in energy and raw material costs or at least some color, sort of, how we could think about it? Like what will be the most costly raw materials? What will be the most expensive higher cost which we can foresee in our estimations?

Let's say that in our forecast, we put, let me say, an increase, but we are hedged at 75% in the energy, both pet, coke and gas and also in coal. So -- and the electricity , sorry. We are, let me say, covered in full mostly this year. And as I said, the nearly 75%, '27 and '28.

So let's say that if the price increases, probably we won't suffer anything meaningful. And the same, if the price will be lower, our cost structure will remain flat. So this is when you hedge. So we don't expect, but most of this uncertainty mainly is the exchange rate against dollar because you pay pet, coke with dollars. And also in electricity, it seems that the peak of 2022 now has been, let me say, fully digested and the price sure -- I mean, for the next two or three. Let's say that today, some suppliers are even open to make contracts that can last 10 or 15 years flat as you can, let me say. So I don't think that cost inflation should hamper our industrial plan, frankly speaking.

The next question is from Bruno Permutti of Banca IMI.

I wanted to ask something about the guidance you gave of 6%, 7% revenue CAGR for 2006, 2028. So I -- on the recovery that you expect in the Nordic and Baltic from 2027, is there something specific that you are thinking of in terms of infrastructure projects that will accelerate in that period? So if you can elaborate a little bit on that.

And as for Turkey. Beyond 2026, what is the outlook you have in mind? You believe that there would be an increase in demand from also for export from Turkey and that this could create some opportunity also for the domestic market? It is a realistic option?

And lastly, on the prices, if -- what is the outlook you see in the short term for 2026 if you see some pressure somewhere?

Starting from -- let me say, the last one, the only place where today, we see some mild price pressure just in China because of the economic environment. But let's say, we are in white cement and usually, let me say this is not so, let me say [indiscernible] but on the other geographies, it seems that the framework is constructive. I mean, stable with a mild income.

Turkey after 2026, as you can imagine, Turkey is the first, I mean, supplier of the Mediterranean area. And as we have already shared with you a few times, it's the first candidate to supply construction in Ukraine, it already started in Syria and partly in Gaza Strip. For sure, we are in the latest stages of, let me say, that the earthquake reconstruction and it's difficult to have an agenda on what will happen in Ukraine and what will happen even in Iran because Iran is a neighbor, so we don't know the outcome there. But also Syria is the only country that is really, let me say, start to have an inflow of Turkish cement and also on Gaza Strip, you are aware that the talks are open and we don't also -- it's difficult today to say that we might see -- we haven't considered in our industrial plan, we are conservative, but we think that this, let me say, should build up in the next years, for sure. And Turkey is, let me say, the only candidate because of this capacity and it's surrounded by, I mean, this bigger possibility to export cement.

In Nordic and Baltic. I mean, mainly, let me say, in the last three years, like most players, I mean, from France to Nordics, we have experienced, let me say, lower volume especially macro reason. So we expect because the rates are lower and we decide now that for sure, I think, as I say, the first quarter and the first half will be hit by the, let me say, atmospheric issues that the demand should, let me say, broaden. So there are no particular -- one reason also because this year, I mean, we are expecting, let me say, flat EBITDA compared to last year is because, let me say, the Fehmarn project is -- the delay on the project is growing probably now, I mean because it's the Danish government, they expect a 2-year delay, that is not 2-years from the start, but let me say that these projects are developing slowly. So we have lowered, for this year, nearly 30%, 40% of the quantity that will go to this project. But for sure then, we will have another two years more at the end. So these are, let me say, our expectations, but the -- are mainly in the macro environment, the increasing in quantities.

The next question is from Carlo Maritano of Intermonte.

I just have one question on the net cash guidance for 2028. So if I start from your expectation from 2026, it seems that there is only EUR 100 million per year of cash generation in the later years in your business plan. So I was wondering what is driving this cautiousness? And if this target includes the CapEx that is not included in the other slides? So just to understand what are the building blocks of this guidance?

Yes, Carlo. In fact, the cumulative cash flow, we are expecting EUR 330 million in three years. So it's about EUR 110 million of free cash flow per year. Please bear in mind that this is after the payment of a progressive dividend, which we expect to grow in line with the earnings, with a dividend payout ratio of 20% to 25%. So these are clearly -- I mean, it's not particularly conservative. I think it's a realistic scenario. And I think it's broadly in line with the historical general cash generation of the company is north of EUR 100 million a year. And it clearly includes the expected CapEx that we earmarked in the slides, which is EUR 309 million of maintenance CapEx and EUR 77 million of sustainability CapEx cumulative in the '26, '28 period.

Gentlemen, there are no more questions registered at this time.

Okay. So thank you very much for your interest in Cementir Holding, and we wish you a pleasant rest of your day. Thank you.

Good evening. Bye-bye.

Ladies and Gentlemen, the conference is now over. You may disconnect your telephones.

Good evening. This is the Chorus Call conference operator. Welcome, and thank you for joining the Cementir Holding First 9 Months 2025 Results Conference Call. [Operator Instructions].

At this time, I would like to turn the conference over to Mr. Marco Maria Bianconi, Head of M&A and Investor Relations. Please go ahead, sir.

Thank you. Good afternoon, and good morning, everybody, and welcome to Cementir Holding 2025, 9 months results presentation. I am here with our Chairman and Chief Executive, Francesco Caltagirone, who will be happy to take your questions at the end of my short presentation, I will go through the presentation deck, which has been distributed.

Starting with Page #2 with the key takeaways about our results. The first point is that the macroeconomic scenario is still characterized by high uncertainty driven by geopolitical and trade tensions and further exacerbated basis by protectionist measures in the U.S., which would be -- are affecting actually the global economic growth rate first 9 months results were in line with our expectations with the third quarter showing an improvement both in cement and in aggregates volumes.

Revenues were broadly stable with slightly lower EBITDA compared to the same period of last year, mainly due to EUR 12.5 million. Negative currency effect and EUR 2.7 million net nonrecurring charges. There were 2 nonrecurring events, which affected the operating performance in the period. First was a fire in the alternative fuel feeding system in Belgium and the second was technical issues with the restart of the second production line in Egypt. Further details will be given later on.

The 2025 guidance is confirmed with revenues of around EUR 1.75 billion, EBITDA of around EUR 415 million and net cash of around EUR 410 million at year-end. This forecast excludes any nonrecurring items and are determined on a like-for-like basis.

If you can turn the page to Page #3, just a few financial highlights. Revenue reached EUR 1.227 billion minus 0.7% year-over-year. Non-GAAP revenues were up 0.4% to EUR 1.2324 billion. At constant 2024 exchange rate revenue would have been up 5.6%. Cement volumes were up 2.4%, mainly thanks to Turkey, with a slight decline in Belgium and Denmark, whereas RMC volumes were stable and aggregate volumes were up by 5.2%.

EBITDA was down 2.9% year-over-year to EUR 287.3 million non-GAAP EBITDA was down only 1.8% year-over-year to EUR 284 million.

This lower EBITDA was mainly due to the negative exchange rate effect of EUR 12.5 million mentioned before and nonrecurring charges of EUR 2.7 million. Non-GAAP EBITDA margin reached 23% versus 23.6% on the same period of last year. EBIT was down 7% year-on-year. Non-GAAP EBIT was down 6%. Net financial result was negative by EUR 0.3 million, down from EUR 18.1 million in the first 9 months of '24, mainly due to higher foreign exchange gains recorded in 2024 linked to the over 50% devaluation of the Egyptian pound versus the euro.

For this reason, profit before tax. On a reported basis, was down 17.4% and Non-GAAP pretax was down 14.2% year-on-year. Net cash position is very strong, EUR 198.5 million, an improvement of over EUR 118 million year-on-year, including 43.5 million of dividends by the parent company and EUR 6 million of dividends to minorities.

Let's go through the main geographies. If you turn to Page 4, Nordic & Baltic, which is the largest region, a 47% share of our group EBITDA. In Denmark, grey and white domestic cement volumes were slightly down versus last year with the residential sector still relatively weak. The Fermern project volumes remain below forecast.

Exports were up 4%, mainly to higher deliveries in the region. RMC volumes were down 4% where aggregate volumes were up by 18% with strong demand. EBITDA was up by 5.9%, mainly due to the positive contribution of cement and savings in fuel and electricity consumption. In Norway, RMC volumes were up 9%, supported by favorable weather conditions and the set up some major projects. They are signs of market recovery, although there is still a bit of overcapacity and price competition, EBITDA was up due to higher volumes and cost efficiency.

And this despite the Norwegian Krone depreciating by 1.1% versus the euro in the period. Sweden, RMC volumes were slightly up whereas aggregate volumes was slightly down due to the lack of new infrastructure projects. But EBITDA was actually up, driven by higher prices. Swedish Krona revaluated by 2.7% versus the euro average.

Turning to Page 5. Belgium and France accounting for a 1/4 of our group EBITDA. The domestic cement volumes declined by around 7% in the first 9 months due to weak demand. Exports also were down by around 6% due to a physiological market slowdown in France following the conclusion of the Paris Olympics. RMC volumes were stable driven by continuation of major projects with different trends between Belgium and France.

Aggregate volumes were broadly in line with last year with growth in Belgium and the Netherlands, but a [ full ] in France. EBITDA was up by 3%, including a nonrecurring net charge of $2.7 million due to the fire, in the feeding system of alternative fuels at Gaurain plant, partially offset by a land sale gain.

Regarding EBITDA for this reason would have been higher by 6.9% year-on-year. The cement segment was penalized by lower volumes and higher electricity costs, whereas RMC benefited from higher prices and additional services.

Turning to Page 6. Third year, accounting for 15% of group EBITDA. Let's remind ourselves that Turkey has considered hyperinflationary since April 2022, so domestic volume -- cement volumes were up by 3% despite ongoing macroeconomic challenges and mixed regional trends. Cement clinker and clinker exports were up 5% and RMC volumes were slightly down, whereas aggregate volumes were up by 18%.

Revenue and EBITDA declined by 1% and 12.9%, respectively, penalized mainly by the Turkish lira devaluation, which was around 23% in the period. With regards to the Kars plant sale, it is in progress, and the antitrust review is still pending.

Turning to Page 7. North America, accounting for 6% of group EBITDA. Cement volumes remain in line with last year. The residential market continues to be affected by high prices and high market interest rates with uncertainties regarding the tariff policy. Texas saw a sharp decline, impacted mainly by adverse weather and some gas supply interruptions and the York region experienced a mild drop influenced by harsh weather whereas California and Florida volumes recorded a moderate increase.

EBITDA was down 4%, mainly due to higher transport and production costs only partially offset by price increases and cost savings. In the period, the U.S. dollar devaluated by around 2.9% versus the euro average.

Turning to Page 8. Asia Pacific accounting for 4% of group EBITDA. In China, revenue was down 9.6% due to lower selling prices in the context of stagnant demand and delayed effects from government stimulus measures. Volumes were slightly up and EBITDA was down 26.3% affected by weak pricing despite cost savings. The Renminbi devaluated by 3.2% versus the euro.

In Malaysia, revenue was up by 3.3%, driven by higher sales volumes, mainly clinker and cement exports, total volumes increased by 16% mainly due to larger clinker shipments to Australia. Domestic volume, although marginal declined by 5% due to some delays in major projects and some ongoing trade tensions. Cement exports rose by 7%. EBITDA was down by around 8%, mainly due to U.S. dollar and Australian dollar depreciation with 80% of our export denominated in those 2 currencies despite some cost savings and higher sales volumes.

In the period, there was a 4% revaluation of the Malaysia ringgit versus the euro.

Turning to the last region, Egypt, Page #9, accounting for 2% of group EBITDA. Revenue declined by 1.2%, mainly due to a significant depreciation of the Egyptian pound around 17% versus the euro average, with a 15% increase in local currency. White cement volumes were up 6%, mainly driven by exports to the U.S. to Morocco, France and Italy.

Domestic cement volumes were down due to a soft market, high inflation and currency devaluation and rising energy costs. The activation of the second production line, which has been idle for 9 years, caused some production disruptions and clinker quality issues leading to higher third-party purchase cost. These issues were solved by the end of June, but clinker purchases continued in July.

EBITDA was down mainly due to currency devaluation and higher operating costs, only partially offset by higher export volumes.

A few words about our sustainability achievements on Page 10. We continue to receive a number of recognitions on our ESG efforts. We have been for the second consecutive year, nominated by sustainability among the ESG industry operated companies. We score with an A rating Climate Change and A- in Water for the third consecutive year. We are included since 2025 in Europe -- among Europe Climate Leaders, and we've been included also in 2025 by TIME and Statista in the world's most sustainable companies.

We also are among, for the second time, CDP Supplier Engagement Leaders, and we have improved the rating of both Sustainalytics and S&P Global in the period. Among the strategic initiatives on Page 10, the 220 million grant agreement, which was signed with Air Liquide and EU Innovation Fund for the ACCSION project, our CCS project in Denmark. And we launched in the period the D-Carb production line and product line in Malaysia. The first low carbon white cement brand with a 12% lower CO2 impact versus Aalborg Portland.

Turning to the last slide of my presentation, 2025 guidance unchanged with revenue expected to be EUR 1.75 billion, plus 6% versus last year. EBITDA of EUR 415 million, 3% up from last year and net cash, EUR 410 million, up EUR 120 million from last year. This guidance refers to like-for-like ongoing operations, non-GAAP and excluding any nonrecurring items.

This ends my presentation, and I would like now to leave the floor for our Chairmain and Chief Executive, who is happy to take your questions.

[Operator Instructions]. The first question is from Matteo Bonizzoni of Kepler Cheuvreux.

I have 3 questions. The first one is the Guidance, which you have reiterated for the full year at EUR 450 million. We have seen a positive inflection of the EBITDA in Q3, which shows up on an adjusted basis, non-GAAP around 7%. But this guidance implies an even more robust Q4 with a 13% growth versus Q4 last year. In general terms, can you provide a flavor on the reason for this expected acceleration?

Second question relates to Turkey. Turkey was a weaker margin in the first half, 12% EBITDA margin, but the margin doubled to 25% in Q3. Can you elaborate on price versus cost dynamics? I guess that there was an improvement in terms of pricing, which instead was lagging behind in the first half. And so this drove margin expansion.

Also related to Turkey. Can you elaborate on the export opportunities in light of the evolution of the current geopolitical situation.

Last question is, as we approach 2026, and I guess you are in budgeting phase, what are the key drivers, which could move the middle next year? How do you expect 2026 in general terms without clearly referring to any precise figure, but just your preliminary flavor on what are the key variables to keep in mind for next year.

Regarding the first question, I mean we have -- as you said, a positive third quarter. And also looking at the first 9 months, our 2 main regions that are Nordics and Belgium, France are, let me say, performing better, considering also that the Belgium suffered this fire place during let me say the second quarter.

Regarding the gap and that we should feel during the last quarter. As you remember, I already said that we might receive a compensation from insurance. And that if this covers what we have, let me say, lost in this various, let me say, problems.

This might rebalance the situation of the gap per that. So in terms of euro, [indiscernible] to recover by the end of the year, it seems a wide guess. But if you ask that some of this, let me say, gap can be fulfilled by the insurance, where we are, let me say, in a positive move to solve by the end of the year. This might, let me say, let us reach a number that is around what we have declared and the same for the net financial position. Regarding the speed or the...

Quantification of this refund, maybe you already said in the last conference call, but just to remind euro/million of the refund around.

As you can imagine, that we are, let me say, in active talk with the insurance. So I cannot let me say now. But let's say that we are talking about something that is more or less between EUR 20 million.

And besides, let's say, because we have -- let me say, the major issue where the fire at the Belgium, let me say, plant, another issue that we suffered in Egypt. And then other minor things around that we, let me say, didn't disclose, but they are on the table with the insurance. So let's say that a number more or less around that, we might, let me say, it might fulfill -- let me say the gap that today we might see by the end of the year.

Regarding Turkey, as I also said in the first half, the low -- the very low EBITDA was because the cost for the labor cost compared to last year have been retroactive. So now, let's say, the price has been aligned to this, let me say, increase in the labor cost. And now, let's say, we are -- let me say, recovering the loss of what we have suffered, let's say, mainly in the first quarter.

In 2026, as you can imagine, we are now in the middle of the process. But let's say that -- and looking at the last quarter, looking at the 2 main regions are, let me say, performing better even if not as much better as we forecast. So the recovery is there, but it's not so strong. And also that this year, we suffered one-off in Belgium and Egypt, and we expect not to suffer another time, let's say that we think that next year should be better than this year, I mean, in the EBITDA and the net financial position.

Regarding the revenues, as you can imagine, are deeply impacted by foreign exchange and especially, we don't know Egypt and Turkey what they will reach a terminal exchange rate by the end of the year, but we are -- let me say slightly positive regarding what we expect for '26 compared to '25.

In terms of export, sorry, export, let's say, is gaining pace towards Syria. But as you can imagine, there is a huge problem of mine. There are, let me say, the roads are full of mines, and it's very low, let me say, they cleaning up and they gearing up, and then what we expect if this talk will hold is that with Gaza is that the ban to exports from Turkey to Israel should be removed and this is affecting 300,000 tons of our exports in the last couple of years.

And this is then, as you can imagine, we have a plant of 50 kilometers that can ship in Egypt cement by land. And cement, I think for the first few years should arrive in Gaza only by land because they don't have a harbor, they don't have terminals, so it will take time.

So today, it's a difficult to forecast when, let me say, a final and definitive piece will be -- let me say signed. And also if we will have 1 state, 2 states and every -- so it's very complicate. So today, in our, let me say, forecast for 2026, we don't, let me say, consider any kind of export towards Gaza even towards Syria because, let me say, in the process, we still see that is quite low.

The next question is from Emmanuel Gallazzi of Equita.

I have a couple of questions. Let's start with Denmark. You basically mentioned some ongoing weakness in residential and the infrastructure is lower than expected. Can you just elaborate on the country entering in 2026. Do you see any, let's say, early sign or catalyst supporting demand for 2026 in Denmark.

The second one is on the profitability because if we look at the third quarter, clearly, there are some area of strong margin expansion, like clearly Denmark and Belgium. Can you give us a sense on how the input cost like fuel and energy are evolving as they should let's say, a tailwind at least also in the fourth quarter and in early 2026.

And the last one is just a clarification on the EUR 2.7 million of nonrecurring charges. Does the amount include also the Egyptian issue or not?

Starting from the last one, not just the -- on Belgium side, because we sold the land and we suffered this fire. So just regarding [indiscernible] of the sum of all the other things. In Denmark, as I said, we are seeing an early phase of recovery. It's not, let me say, strong as we expected, but we continue to see this even in 2026.

The Fermern project is, let's say, going slower than what we expected. But at the end that they started and they should finish. So what we are not selling now, we will sell later because this is as usual. But sometimes, let me say, with this, let me say, very difficult and complicated infrastructure. This is, let me say, a tunnel that goes under the sea, there are some -- let me say, delays. And we expect that even in the first half of the year, these delays will continue, and we might, let me say, speed up in the second half of next year.

On the input cost fuel and energy evolution?

Yes. As you can see, let me say, in the last 3 years, including this one, the company has been able, and we said, to maintain the same level of [indiscernible] that is around EUR 400 million. And with quantity, especially in the Nordics and in Belgium that decreased and also ready-mix in Sweden and Norway.

We think -- we think we are aware that today, if we just recovered this quantity, quantity that we sold in 2022, we should increase the EBITDA of the group between EUR 50 million and EUR 60 million. So what we expect is that if this recovery of banks will materialize in the next couple of years, we should start to recover this gap because the cost we have hedged on the energy side, the labor cost, the only question market is usually in Turkey, but is, let me say, balanced usually by the exchange rate fall. We don't see major threat, I mean, in the next 2 years in the input cost.

The next question is from Egor Sonin of Alpha Value.

I have a question regarding the pricing power and market dynamic and weak in volume environment in several key markets like Belgium and China, you mentioned volume decline, but also referring -- you also referenced price increases. Could you provide more color on the company pricing power in the current macroeconomic environment? And are you able to fully offset cost inflation for price? And in which regions are you seeing the most or at least price resilience.

Regarding starting from your last question for next year, now but even next year, we -- where we see some softness in the market, both in price and volume is China and France. These are the only 2 regions where we see a slowdown -- mild slowdown. In the remaining -- on the remaining part of the perimeter we see as I said, with the same price, just if we keep the price that we have today, not increase the price.

But just we recovered the volume we have EUR 50 million, EUR 60 million of EBITDA to recover just with -- because in the last 3 years, we succeeded in cutting the especially the fixed cost. And so now if the recovery will materialize, we should, let me say, benefit just from the volume expansion, not price.

But regarding the price, let's say, I don't see, frankly speaking, that with the market that continue to have, let me say, stable, let's say, especially in Europe, except for France, that there is a lot of space to increase the price because I believe that also the other major players that has a cost structure close to ours will bet more on the recover the volume that increasing the price, frankly speaking.

Then in Egypt, I think that especially now that the second line is performing well, we can expand the export base and also, we believe that from next year, Egypt should, let me say, recover and we even go towards, I think, the EUR 20 million of EBITDA that we expect that with the [ 2 line ] full -- we're working at full speed.

The next question is from Emanuele Negri of Mediobanca.

Yes. I have a couple -- the first 1 is which kind of effect do you expect in terms of inflation from the incoming implementation of the CBAM regulation?

And the second one is if you can give us an date on the Air Liquide project you have in Denmark with Air Liquide. And actually, a third question is a follow-up from a previous one about margins in Denmark and Belgium, which as mentioned before, had a strong profitability performance in the third quarter. Could you give us an idea of the drivers which led to such a strong performance?

The driver, I mean to the profitability even in Turkey is the recovery I mean on the cost side. It's not increase in the price. Turkey has been an alignment of the price due to the labor cost inflation. On the other -- in the other 2 companies, as you know, Europe now, we are experiencing an inflation that is below 2%. And so there is not much space to increase the risk price more or less everywhere. So it's mainly on the cost side. CBAM will start sort of virtual, let me say, test next year when you will start to calculate eventually the extra cost that we need when something is imported. So this won't affect the balance sheet of anybody. This might, let me say, from 2027, but we might see which are the real flow of special clinker that will continue to arrive to Europe. But for sure, looking at the price of the CO2 that is increasing reaching nearly EUR 82.

I think that to import cement, especially from Turkey, Egypt, North Africa will cost more. And this, let me say, should push a little bit the price higher or will shrink the margin of the importers [indiscernible]. This is something that is in the hand, especially of the importer that we have mainly where we are located, I mean, in Nordics and in Belgium, Northern France, there is not so much import. So I don't think that this CBAM I think will affect more the Mediterranean areas, especially Italy, South France, Spain, partly Portugal and less the other countries.

The actual update that we are working, let me say, in our normal agenda. We're adjust waiting because, as you know, there is part of the project that is in the hand of ourselves and Air Liquide part of, let me say, the project the infrastructure that is the pipe and also the viability of the sequestration in the site, is in the end of the government.

And so we are aligning with them because we don't want to finish earlier our investment because we are, let me say, quite sure that we can fulfill the agenda by let me say as we see 2030. Some delays might arrive, but we think that they related in the span of 1 year maximum by certain, let me say, authorization to build the pipeline and the harbor terminal.

[Operator Instructions]. The next question is from Bruno Permutti of Intesa Sanpaolo.

I have a few questions. The first one concerns the volumes. -- you had -- it seems to have to see a step-up in volumes in the third quarter, compared to the first half of the year. If you can elaborate a little bit if this is related to phasing of deliveries or if you believe that this is sustainable going forward into the fourth quarter and in the next year.

The second question is related. If you can remember, please, what was the negative impact on EBITDA that you had from the 2 incidents in accidents in 2025. So Belgium, fire and the delay in the ramp-up of the Egypt second line.

And last one, if you are still very cautious on M&A or if something is changing that considering the amount of cash you expect to have by year-end?

Thank you. Starting from the last one, I mean, an M&A scenario is the same. We are building a waiting mode also understanding which plant will -- let's say, survive the environmental transformation and so just to understand that how much money every plant has to put on the plate because you have to deduct to the final price of any plant. So this is the first thing. So far, I think that we haven't seen any, let me say, good opportunity to buy out the other players because the value is mismatching the real value of the expected value in the medium and long term after environmental investment.

Regarding -- what we have seen -- as I said, we have seen -- we are seeing a recovery in the third quarter, but also this recovery is not so strong as we expected. So we expect that we should see some of this recovery continuing in 2026. But the macro, let me say, situation all around Europe, I think, is quite clear. So I don't forecast a very strong recovery now. And France is in a polite political mess, as you can imagine.

And no -- so our [ forecast ] is just linked to the exchange rates from the Central Bank that continue to [indiscernible] be lowered. But the impact -- the impact I think, is limited now because, let's say, I think we are reaching a sort of plateau in the rates. I don't expect that, especially in Europe, we might see another 50 or 75 basis points during the next year.

So let's say that, as I said, in terms of volume, we have lost in the last 2.5 years, nearly EUR 50 million, EUR 60 million of value EBITDA. So just to go back to that volume is just important. We don't think that in next year, we can recover this gap. But even if we take, I think, 2 or 3 years is still positive. As I said, that we don't see a major threat from the cost side.

So the other question. Yes. I mean the 2 major, let me say, issue that we have more or less EUR 8 million. But considering that besides these are the direct impact, but as you can imagine, so why then we will reach around [EUR 20 million] because when you -- this, let me say, especially in Belgium, the issue of not producing, let me say, clinker -- buying clinker from outside, even in Egypt affect also.

[Operator Instructions]. Gentlemen, there are no more questions registered at this time.

Okay. So thank you very much for your interest in Cementir, and we wish you a pleasant rest of your day and evening. Thank you very much.

Thank you. Have a nice evening. Bye-bye. Bye.

Ladies and gentlemen, thank you for joining the conference. It is now over. You may disconnect your telephones. Thank you.