Sacyr Vallehermoso Stock

Good morning, everyone. I'm Manuel Manrique, Executive Chairman of Sacyr. Joining me today are Pedro Siguenza, Chief Executive Officer; and Carlos Mijangos, Chief Financial Officer of the company. Thank you all, analysts, investors and members of the media for joining us today for Sacyr's presentation of our financial results for the first half of 2026.

Before I begin my presentation, I would like to express our solidarity with everyone affected by the recent severe storms in Chile and the wildfires in Spain. Our thoughts are with all of you. I would also like to express my sincere appreciation and gratitude to our Sacyr employees who, as always, have gone above and beyond to support the communities affected during these difficult times. Our heartfelt thoughts are with you all as well. At Sacyr, we continue to make a steady progress in executing our 2024-2027 strategic plan, further strengthening a business model that is increasingly resilient, profitable and cash generative.

The key financial highlights for the first half underscore the strong performance. Revenue increased 9% to EUR 2.437 billion. EBITDA also grew 9%, reaching EUR 708 million. Operating cash flow increased 18% on a comparable basis to EUR 631 million. The EBITDA margin improved to 29.1% and net profit attributable to shareholders reached EUR 78 million, up 157% from EUR 31 million in the same period last year following the accounting impact of the Colombia divestment.

In addition, we remain committed to our financial discipline, maintaining a recourse net debt ratio below 1x. Shareholder returns remain a top priority for Sacyr. During the first half of the year, we took a significant step forward by increasing our cash dividend to EUR 0.10 per share compared to EUR 0.045 per share distributed a year ago. This accounts for a 122% increase in the cash dividend. If we also include the scrip dividend distributed in January, total shareholder distributions amount to EUR 0.149 per share, representing a 21% increase compared with the prior year. We believe this reflects the value Sacyr continues to create and our commitment to sharing that value with our shareholders.

Another key strength that sets Sacyr apart is our unwavering commitment to sustainability. During the first half of the year, we received several prestigious international recognitions that validate the progress we have made. For the fifth consecutive year, CDP has awarded us its highest rating for our supply chain engagement on climate change. In addition, FTSE Russell awarded us its highest score for corporate governance, while the financial clients recognized Sacyr as one of Europe's leading companies in emissions reduction. These recognitions reinforce our conviction that sustainability is a key driver of long-term value creation.

However, another key strength of our business model is the continued performance of our concession assets. The value of our concession portfolio has now reached more than EUR 4.601 billion, representing a 16% increase compared with 2025, excluding the impact of the divestments completed during the period. While Carlos Mijangos will provide more detail on the valuation later in the presentation, I would like to emphasize that the continued appreciation of our assets confirms that our strategy is delivering tangible results and that we remain fully on track to achieve the targets we have communicated to the market.

We continue to target a portfolio valuation of EUR 5.1 billion by 2027, excluding divestments and an estimated valuation of between EUR 9 billion to EUR 10 billion by 2033. This value creation is underpinned by the strong cash-generating capacity of our assets. The concession portfolio is now expected to generate total distributions of nearly EUR 20 billion, up 17% year-on-year. This performance underscores the quality of our portfolio, the strength of the assets we have developed and brought into operation and the high visibility we have over future cash flows. The combination of value creation and cash distributions is one of Sacyr's key competitive strengths.

With that, let me now hand the call over to Carlos Mijangos, who will walk you through the financial performance for the first half of 2026.

Thank you, Mr. Chairman. First, let me walk you through the evolution of the valuation of our concession assets. As you can see from the chart, it once again confirms Sacyr's ability to consistently create value through its concession platform. The 2026 valuation reached EUR 4.601 billion, representing an increase of EUR 644 million over the 2025 valuation, a 16% growth in just 1 year. This year-on-year increase was driven by a combination of factors.

First, the natural progression of our operating assets, what we refer to as a rolling forward effect continue to enhance the value of the portfolio, contributing EUR 383 million. Second, the effects of inflation and foreign exchange movements largely offset each other, resulting in a net positive contribution of EUR 23 million. I would also like to highlight the operational management of our assets, improvement achieved through operational optimization, efficiency initiatives and negotiations with our clients to develop additional investments contributing EUR 94 million in value. And finally, the addition of new projects which generated a further EUR 144 million of value driven by projects such as the Pedemontana-Veneta highway and the Coquimbo desalination plant in Chile, the Novara City of Health and Science in Italy and Ontario Science Center in Canada.

These additions more than offset the impact of the divestment completed in Colombia and Barbanza in 2025 as well as the sale of our 4 parking assets in 2026, resulting in a final concession at a valuation of EUR 4.601 billion. If we take our 2024 Investor Day as a rightness point, the progress has been equally remarkable. The valuation has increased from EUR 3.551 billion to EUR 4.601 billion in 2026, demonstrating that our concession platform has not only preserved its value, but has also continued to grow, further strengthening its position as the cornerstone of the growth strategy.

From a technical standpoint, the methodology used to calculate this valuation remains unchanged. No changes have been made to the discount rates applied or has any additional future growth been incorporated into the valuation.

Looking more closely at the key value creation drivers, the valuation of our concession assets has grown by 30% over the past 2 years. And the largest contributor to this growth has been the rolling forward effect, which accounted for EUR 694 million. This reflects the way concession assets naturally create value over time as construction risks are progressively eliminated, operations become fully established and cash distributions begin to be generated.

In addition, the combined impact of inflation and foreign exchange movements has largely offset each other over the 2-year period, demonstrating the resilience of our concession assets in a challenging macroeconomic environment. And this has been complemented by the operational management of our assets, improvements achieved through operational optimization, efficiency initiatives and negotiations with our clients to develop additional investments contributed EUR 94 million in value.

Meanwhile, newly awarded contracts generated an additional EUR 261 million of value over the period. For example, the Itata Highway Route 68 and Antofagasta water reuse plant in Chile, Asunción highway in Paraguay and the New City of Health in Italy and in 2026 of the Pedemontana-Veneta highway and the Coquimbo desalination plant in Chile, the Novara City of Health and Science and Ontario Science Center in Canada.

Finally, our divestments provide further validation of the internal valuation of our assets, the assets sold in 2025 that is our assets in Colombia and the Barbanza highway in Spain and the parking assets divested in 2026 were internally valued at approximately EUR 270 million and EUR 7 million, respectively. These transactions were completed at sales price 11% above our internal valuations, demonstrating our ability to unlock value through a selective and disciplined asset rotation strategy.

The strength of our concession assets is clearly reflected in their future cash distributions. As you can see on the chart, Sacyr's concession assets are expected to generate EUR 19.9 billion in total distributions over the life of the concessions, up 17% compared with our Investor Day projections and with an average distribution of EUR 484 million. You can also see that there has been a meaningful improvement across every period analyzed. This trend is particularly significant because it confirms that the growth in the value of our concessions portfolio is bolstered by highly visible future cash flows.

This is not simply an increase in valuation. It also reflects a stronger ability to generate cash distributions, providing a solid foundation for both future growth and shareholder returns. Over the 2026-2033 period, let's say, the time horizon under our strategic plan, our concession assets are expected to generate EUR 3.44 billion in distributions. And against this, the equity commitments associated with our current projects amount to EUR 1.52 billion. And the difference between these 2 figures result in EUR 1.92 billion of net cash available. This is a key metric for understanding Sacyr's growth capacity.

Our existing concession assets generate sufficient cash to fully fund the equity commitments already in place but also freeing up cash to invest in new projects. In other words, our current platform is self-funding its future growth. And this strong cash flow visibility provides greater financial flexibility and reinforces the group's ability to continue seizing opportunities in strategic markets while maintaining a disciplined approach to recourse debt.

Turning now to our key financial metrics. The first half of 2026 delivered another strong and well-balanced performance. Revenue reached EUR 2.437 billion, representing 9% year-on-year growth compared with the first half of 2025. EBITDA totaled EUR 708 million, also up 9%, while maintaining a solid 21% EBITDA margin. Concessions continue to account for the vast majority of EBITDA, accounting for more than 91% of the total. This shows the group's transformation towards a more recurring profitable and predictable business model.

And this performance is also reflected in a significant improvement in net profit attributable to shareholders, which reached EUR 78 million, an increase of 157% compared with the same period last year. Operating cash flow amounted to EUR 631 million, accounting for 18% comparable growth after excluding the cash contribution from the assets divested in Colombia in 2025. This level of cash generation highlights the strength of the group's operations and the ability of our assets to convert EBITDA into cash.

Finally, our recourse net debt ratio remained below 1x, in line with the financial commitment we have consistently maintained. Overall, the first half combined growth, profitability, strong cash generation and disciplined financial management. Consolidated net debt stood at EUR 6.788 billion at the end of June 2026 compared to EUR 6.359 billion at the end of 2025. The EUR 429 million increase during the first half primarily reflects the combination of strong operating cash flow generation and investment effort associated with the continued expansion of our concession portfolio.

Funds from operations contributed EUR 631 million during the period and this cash generation was offset by net investments totaling EUR 691 million and financial expenses of EUR 284 million and other smaller adjustments recorded during the first half. Therefore, the increase in net debt should be viewed in context of the group's continued growth. So it continues to generate strong operating cash flow while investing in concession assets and projects that will further strengthen future value creation and distributions.

Turning now to reported net debt. The trend during the second quarter was encouraging. Reported net debt declined from EUR 289 million at the end of March 2026 to EUR 264 million at the end of June 2026, in line with or below the threshold established in our strategic plan. Funds from operations contributed EUR 85 million during the quarter, supported by strong operating cash generation and concessions distributions totaling EUR 74 million, and this cash inflow was sufficient to offset net financial expenses, net investments and other movements during the period.

Net investment for the quarter amounted to EUR 38 million, including EUR 12 million of equity invested in infrastructure concessions, EUR 14 million of equity invested in water. In addition, the divestment of our parking assets in Spain generated EUR 9 million, further demonstrating the disciplined asset rotation strategy I referred to earlier. Overall, recourse net debt remains firmly under control, declining by EUR 25 million during the quarter. The recourse net debt ratio also remains below 1x, confirming the group's financial strength and its ability to continue growing while maintaining strict financial discipline.

With that, I will now hand the call over to our Chairman.

Thank you, Carlos. I will -- now Mr. Pedro Siguenza will provide you with an update on the performance of Sacyr's business during the first half of the year.

Thank you, Mr. Chairman. I will now walk you through the performance of our 3 business areas. Among the key milestones achieved during the first half of the year, I would like to highlight the following: the start of construction on the I-10 highway project in the state of Louisiana with first transportation infrastructure concession in the U.S., representing $2.3 million investment. Next, the submission in July of our bids for 2 major managed lane projects, I-24 in Nashville, Tennessee and I-285 in Atlanta, Georgia. As you know, they are 2 highly complex projects from both a technical and financial standpoint. And this shows that we are ready to compete for the largest concession projects in the U.S. market.

In our water business, we successfully reached financial close on the Antofagasta water reuse plant, securing $460 million in project financing. This is a landmark project that will represent a major step forward for our water business both because of its scale and because of the strategic positioning in water reuse solutions for the mining industry.

Finally, we further expanded our concessions portfolio during the first half of the year by signing several contracts, including the Ontario Science Center in Toronto in Canada, the Coquimbo desalination plant and the Pedemontana highway in Chile. And the New Novara hospital in Italy. Therefore, the group's total backlog reached EUR 73.307 billion at the end of the first half, up 8.7% compared with December last year. The opportunities highlighted on this map, including the most relevant bids we have submitted demonstrate that we continue to make steady progress in delivering our strategic plan. We are increasing the share of our portfolio in English-speaking markets while continuing to strengthen our footprint in our core European and Chilean markets.

Some of the most significant opportunities include the previously mentioned I-285 and 124 managed lanes in the United States as well as the West I-285 project in Atlanta, the I-65 in Tennessee, the I-77 in North Carolina, where we are already prequalified and the I-499 in Virginia. In Canada, we have been prequalified for the Windsor Hospital concession, a major social infrastructure project represent an investment of more than EUR 2 billion which includes 30 years of operations and maintenance.

In Chile, we will submit a bid for Route 57 connecting Santiago and Los Andes while continuing to pursue other opportunities, including the Caldera-Antofagasta highway concessions. In Ireland, we have submitted our prequalification application for the M500 MetroLink concession, a new metro line that will connect Dublin with its international airport. In Italy, we continue to monitor the procurement processes for the A-22 motorway, the A-4 Brescia-Padua motorway and the A-4 Torino-Milan motorway.

In Portugal, we have submitted our bid for another section of the high-speed rail line between Porto and Lisbon. This is a 30-year availability-based concession with an investment of more than EUR 2 billion. We are competing against another consortium. Pending final evaluation, our bid has received the highest economic score. In Spain, we are actively evaluating a bid for several integrated water.

And in Australia, we have submitted bids for the Adelaide desalination plant and the Wyaralong water treatment plant. We are competing against another bidder as well as in the Brisbane Olympic Stadium. These major contract awards are expected to be decided later this year. This pipeline of opportunities provides us with a solid foundation for continued growth in the years ahead and reinforces the robustness of our technical, commercial and financial capabilities to compete successfully in the world's leading markets.

Now let me refer to Sacyr Concesiones, which continued to deliver strong growth during the first half of the year, the revenue reaching EUR 977 million, up 20% compared with the first half of 2025. Operating revenue totaled EUR 642 million, driven mainly by the increasing contribution from our Chilean assets, including Route 68, the Itata Highway and Camino de la Fruta. This more than offset the impact of the Colombian roads that were divested in 2025 and further reinforces the quality and resilience of our concessions business model.

Construction revenue increased 37%, up to EUR 335 million, driven by the start of construction on the Ontario Science Center project in Canada as well as a strong pace of execution across 4 projects in Chile, Paraguay and Colombia. The division generated EBITDA of EUR 402 million, up 15% from the prior year, representing an EBITDA margin of 62.6% on operating revenue.

During the first half of the year, our concession assets distributed EUR 94 million in cash, we invested an additional EUR 28 million of equity. As a result, total equity invested across the assets in this division increased to EUR 1.735 billion. As for the key milestones during the period, as I mentioned before, they include the signing of the contract of our first concession in Canada, the Ontario Science Center, where construction began in May as well as the bids submitted in July for the managed lanes projects in the United States.

In our Engineering and Infrastructure division, revenue grew 10% to EUR 1.584 billion, driven by the start of construction in our concession projects in the U.S., Canada Paraguay and Chile. EBITDA climbed 4% to EUR 270 million. And looking exclusively at our construction activities, the construction margin remained stable at 5%. The division's backlog increased 4% compared with December last year, reaching EUR 13.019 billion. But more importantly, the quality of this backlog continues to strengthen.

Today, 76% is linked to our own concession projects, significantly reducing our exposure to the execution risks typically associated with third-party construction contracts lending ourselves with a concession strategy. The key milestones during the period include our selection to deliver the new Frimley Park Hospital in the United Kingdom, a project with an estimated investment of more than GBP 1.5 billion, the award of the Peel Health Campus redevelopment project in Australia with a contract value of [ AUD 766 million ], the completion of our 13 highway project in the U.S. in Vanderbilt, Florida as well as the Ontario Science Center in Toronto and the I-10 highway project in Louisiana.

Finally, Sacyr Water continues to establish itself as a strategic growth platform for the group, delivering strong growth in both revenue and EBITDA. Revenue grew 33% to EUR 185 million, while operating revenue rose 7% to EUR 150 million. EBITDA reached EUR 35 million, representing an EBITDA margin of 23.3% on operating revenue. Backlog stood at EUR 8.2 billion, up 18% from the previous year following the addition of the Coquimbo desalination concession in Chile.

In addition to the award of this project and several new operations and maintenance contracts in Spain, we also reached another milestone, and that is the financial close on the Antofagasta water reuse plant in Chile, securing a 35-year concession for the largest water reuse plant in Latin America, which will supply reclaimed water to the mining industry. During the first half of the year, we invested EUR 23 million of equity in this division, bringing total equity invested in our water concessions to EUR 151 million.

Overall, all 3 business areas delivered a very strong performance during the first half of the year, bolstered by a robust commercial activity and outstanding technical effort in pursuing new opportunities, solid operational execution and a highly quality project pipeline that positions us well for the next phase of growth.

Now I will turn the call back to our Chairman for his closing remarks.

Thank you very much, Pedro. Well, after so many figures, let me recap the key takeaways from the first half of the year, 6 key takeaways. First of all, the continued value creation of our concession assets, whose valuation has increased by EUR 644 million over the last 12 months. Next, the soundness of our portfolio that will reach EUR 20 billion. Thirdly, the significant growth of our net profit that went up by 157%. Fourth, the 33% increase in revenue generated by our water business.

Fifth, the major opportunities that we continue to unlock in our strategic markets, such as the U.S. managed lanes segment. And finally, the enhanced returns delivered to our shareholders reflected in a 122% increase in the cash dividend. Together these achievements demonstrate that we continue to execute our 2024-2027 strategic plan successfully and strengthening the company's cash-generating capacity while creating sustainable long-term value for our shareholders.

With that, we would be happy to take your questions.

Good morning, everybody. As usual, we are now going to open the floor for questions. First, we are going to answer the questions received over the phone. And next, we are going to read out the questions received through the webcast. Now let me give the floor to Miguel González from JB Capital.

Congratulations for these results. I have 3 questions for you. First, I would like to ask about growth in terms of FFO during this period. Were there any one-offs or any collections that may cause a fall in the second half of the year? Next, as regards working capital, there was a cash outflow during the quarter. I thought that this was going to be a recovery quarter. Could you give us some color in this respect?

And do you think that you could offset this cash outflow in the second part of the year? As for managed lanes to be commissioned in the upcoming months, you have already submitted the relevant bids. And I would like to know in case you are awarded the I-24 and since you might be awarded another section of another highway in Portugal, do you think that you could be awarded the I-285 as well? Would that be all the projects that you would be tendering for?

Okay. We are going to answer in a minute.

Okay, Miguel. Let me answer the first question. There was no specific one-off reported during this quarter. Since most of our assets are payment upon availability, sometimes payments are made twice a year. In Q2 and in Q4, there are several contracts that are paid for. This is, however, a seasonal development. There is no one-off.

As for working capital, it is true that there were some impairments, but this is due to the huge efforts that we made in order to submit tenders in the United States. The Engineering division had to bear many costs in order to submit the relevant tenders and the different technical aspects that had to be priced in, and this had an impact. However, this is going to be offset during the year due to the business' natural seasonal capacity or characteristics.

As for the third question concerning managed lanes, that's a very interesting question. And let me give you some context in this regard. This company has always met concession requirements no matter whether we underwent financial situation or the financial crisis that affected our country or the global financial crisis. We're not going to, therefore, do that this time either.

Managed lanes are already a success story for us. It's already an achievement, taking into account where we are coming from the fact that we have been qualified for 3 managed lanes, 3 out of 3. That's already a success. Then we will have to see whether we're eventually awarded 1 or 2 of these projects. Equity is not something that happens instantly. And risk hedging for such an investment has already been arranged. Therefore, we are not worried about this nor afraid either.

The next question is by Luis Prieto from Kepler Cheuvreux.

Thank you very much for answering this one question I have for you. Going back to managed lanes. So this is -- in terms of managed lanes, we see hectic activity in the United States at the end of the summer break and in autumn. What happens if you are not awarded any of these projects or any assets? How will this affect your strategic plan? Because if you're not awarded these projects, the strategic plan will therefore be changed accordingly. Therefore, what would happen if you had to wait for other projects to be awarded to offset this?

We will answer shortly, Luis.

Well, the award schedule that we have presented for these 2 projects is August, Tennessee and Georgia in October. As for the rest of the concessions, they are expected to be awarded throughout the rest of the year. Specifically, there is one project that is right now on hold that we believe is going to be reactivated, and we have already prequalified. But the question is what if we are not awarded this concession? Nothing will happen.

The fact that we have already been prequalified is already a success story. Then we will have to continue to tender for other projects. Nonetheless, let me point out that our success rate is quite significant up until now. We have to see whether we can repeat that in the United States. And next, no matter what happens, we have we rank as the third company with the highest number of greenfield financial assets in the world, and we intend to rank first by 2033, and we are going to achieve that no matter whether we are awarded the first 2 managed lanes or not.

There are no further questions over the phone. We are now going to read out the questions received via the webcast. Filipe is asking whether we can give an update about the Messina Bridge project progress.

Some of these questions have already been answered. We have already answered about the I-24 and I-285 projects. Then we have been asked about the I-65 and the I-77 in North Carolina, whether the project has been canceled or whether it's still ongoing. Filipe, we're going to answer in a minute.

As for the Messina Bridge project, the Italian government continues to show readiness to approve and to submit to the Interministerial Committee, the approval for this project so that it is cleared by the accounts court. They intend this project to be approved by the end of 2026. As for the I-77 in North Carolina, we have already been prequalified as the Chairman pointed out, Charlotte, which is the most important city voted against this project, even though a new mayor was appointed to Charlotte and a new voting process will be put in place at the end of this year. So some technical changes are being made. We are optimistic that this project will eventually get through.

As for the project in Atlanta, once the award is decided upon, we believe that before the end of the year, prequalification will be given green light and the rest will have to wait until next year.

Alvaro Navarro has a question. He is from Bestinver. As for the committed equity and distribution between 2026 and 2030, could you give some color as to the contribution made by the key concession projects? And how can you account for the EUR 500 million in distributions against EUR 200 million comparing 2028 and 2026. Alvaro will answer shortly.

Well, if you want a breakdown by project, you can speak to our Investor Relations team. Here, we're talking about equity in Chile, where many projects are going to be commissioned. Then there are 2 other projects under construction in Colombia, the Canal del Dique and Buga. During this period, we already began obtaining some contributions as for item in the United States. And then we have the water projects, which are also very important and have some related equity committed. So of course, they are going to be committed in the countries where we have the highest level of operations.

And as for distributions, the same happens. They come from Italy, they come from Chile. And this shows the expectations that we have once projects under construction are completed, especially the ones awarded to us over the past 3 years that will start making a contribution as of 2028 because many of these significant projects will become operational by 2028.

The next question is by Victor Acitores from Bernstein. The concession assets valuation update, what about the discount rate? How has it evolved? And what about the weight of the assets of the Water division and its valuation?

Well, we have kept the same discount rates that we had been applying in prior updates. Maybe you recall that the average rate was 11%. And right now, it's 10.64%. But this is because the 3 Colombian assets were eliminated from the perimeter. They accounted for 14%. We have not actually adjusted this.

However, 100% basis points in improvement will lead to a valuation of EUR 400 million of assets. So as you can see, our discount rates have always been very prudent. And whenever we sell, we are slightly above. Therefore, we feel pretty comfortable with the discount rates that we are currently applying. For the Water division, we are talking at 16%.

Thank you very much, and have a very nice day.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. I'm Pedro Siguenza, Chief Executive Officer of Sacyr. Joining me today is Carlos Mijangos, the company's Chief Financial Officer. Thank you all for attending Sacyr's earnings call for the first quarter of fiscal year 2026.

I will begin my presentation by addressing the key financials for the quarter. Revenue increased by 5% compared with the first quarter of 2025, reaching EUR 1.116 billion. EBITDA rose by 9% to EUR 327 million, representing a margin of 29.3%, 90 basis points higher than in Q1 2025.

Operating cash flow amounted to EUR 223 million, up 12% year-on-year, excluding the impact of the sale of the Colombian assets. These financial results demonstrate that the new awards now entering operation are replacing the contribution of the assets divested in Colombia that are no longer in the company's perimeter.

Net profit attributable to the parent recorded a strong increase of 40%, reaching EUR 38 million. Net recourse debt remained below 1x, maintaining a solid financial structure and delivering on our financial commitments.

Amongst the most significant milestones of the quarter, I would like to highlight the award of the Ontario Science Center in Toronto, our first concession in Canada. This 30-year concession will deliver what is set to become one of the country's most iconic buildings and will undoubtedly transform Toronto's skyline. It could be one of the most advanced science outreach centers in the world.

With this award, for which a EUR 645 million contract is already underway, we are taking another important step in delivering our 2024-2027 strategic plan by expanding our portfolio, as timely committed in English-speaking countries, where we are currently bidding for major opportunities and expect to secure further awards.

Sacyr's Board of Directors has resolved to submit for the approval at the annual general shareholders meeting to be held on June 4, a shareholder remuneration proposal consisting of 2 cash dividends totaling EUR 0.15 per share, EUR 0.10 payable in July and EUR 0.05 payable in January 2027.

Given that a scrip dividend of EUR 0.049 per share was already paid in January this year, the total shareholder remuneration to be distributed in 2026 will amount to EUR 0.149 per share, 21% higher than in 2025. If approved by the shareholders' meeting, total cash dividends distributed in 2026 will reach EUR 81 million, more than double the cash dividend paid in the previous year, in line with the commitment set out in the strategic plan to distribute at least EUR 225 million in cash during the 2025-2027 period.

At Sacyr, we pursue a clear purpose to develop transport, health care, and water infrastructure that contributes to building a globally sustainable future. Our strong positioning in the leading international sustainability ratings recognized by independent agencies such as S&P Global, Sustainalytics, and EthiFinance as a sector leader, #1 in Spain and among the top 10 companies worldwide reflects an integrated ESG management approach that drives sustainable growth and creates value for our shareholders.

I will now hand over to Carlos Mijangos, who will provide you with a more detailed review of our operating and financial performance.

Thank you, Pedro. We will now review the company's operating and financial performance. In Q1 2026, Sacyr delivered clearly positive operating and financial performance, in line with the priorities set out in the strategic plan and supported by the strong performance of its concession assets.

Revenue reached EUR 1.116 billion, accounting for a 5% increase compared with the same period last year. This growth was accompanied by an improvement in EBITDA, which stood at EUR 327 million, up 9%, but maintaining an EBITDA margin of 29.3%, almost 1 percentage point higher than in the first quarter of 2025, reflecting greater operating efficiency.

Net profit attributable to the parent increased significantly by 40%, reaching EUR 38 million. This positive performance was mainly driven by stronger operating results and an improvement in the financial result with no material extraordinary impacts of asset rotations having been reported over the period.

In terms of cash generation, operating cash flow reached EUR 223 million, accounting for a 12% increase against the first quarter of the prior year on a like-for-like basis after excluding the contribution from the assets sold in Colombia last year. This level of stable and recurring cash generation once again highlights the company's ability to create sustained value in a demanding market environment. And finally, net recourse debt remains below the limit set out in our strategic plan.

From a financial standpoint, during Q1, the refinancing of the corporate syndicated loan was completed, increasing available liquidity to EUR 600 million, improving the cost of debt and extending maturities to 2031. This transaction was backed up by 25 financial institutions and was nearly 2x oversubscribed, reinforcing market confidence in the group's financial profile.

Likewise, progress was made in the selective rotation of assets with the sale in April of our parking assets in Spain for EUR 9 million at a multiple of 2x invested capital, that is 26% above the internal valuation presented at the 2024 Investor Day.

A key milestone during the period was Sacyr's inclusion in the STOXX Europe 600 as one of Europe's leading benchmark indices. It brings together the most representative companies from 17 countries selected not only for their size, but also for their liquidity, transparency, and financial soundness. This development further enhances Sacyr's visibility and strengthens its positioning within the European investment community.

Regarding the company's debt structure, consolidated net debt stood at EUR 6.721 billion as of March 2026, mainly reflecting a solid operating cash generation of EUR 223 million. The effect of net investment during the period amounted to EUR 270 million and the transfer on to Sacyr's balance sheet of the debt previously held at GUPC with no impact on valuation of cash while benefiting from significantly more favorable financing conditions at the parent company level.

As for net recourse debt, the most significant factors were the seasonal effect of the negative working capital of EUR 90 million, which will reverse throughout the year; the purchase of EUR 10 million of shares through the settlement of the related forward derivative; and the transfer on to Sacyr's balance sheet of the debt previously mentioned for an amount of EUR 289 million. This figure remains below the committed threshold with a ratio of net recourse debt to recourse EBITDA plus distributions from concessions below 1x, which once again confirms the group's financial discipline.

Now we will move on to explain the performance of the different business lines.

Thank you very much, Carlos. I will now provide further detail on the performance of our 3 business areas. The Concessions division reported revenue of EUR 463 million, accounting for a 23% increase compared to Q1 2025.

Operating revenue rose by 10%, mainly driven by the contribution from our Chilean assets such as Ruta de la Fruta, Ruta 68 and Ruta del Itata, which more than offset the exit from the perimeter of the Colombian assets.

Construction revenue grew by 58%, pushed by progress on contracts such as Ruta del Elqui and Hospital Buin-Paine in Chile, and the Velindre Hospital in Cardiff, and the Buga-Buenaventura Highway in Colombia. EBITDA for the division posted a 7% increase, reaching EUR 184 million.

During the quarter, our concessions distributed EUR 23 million, while we invested EUR 16 million, bringing the total equity invested in our infrastructure concession assets to EUR 1.726 billion.

On March 1, operations began at Antofagasta Airport in Chile. I would also remind you that in the United States, we have been shortlisted for 3 managed lanes projects, the I-285 managed lanes in Atlanta, the I-24 managed lanes in Nashville, and the I-77 managed lanes in Charlotte, with bid and proposals for the first tool set to be submitted this summer.

In the Engineering and Infrastructure division, revenue increased by 3% to EUR 712 million, driven by progress on projects in the United Kingdom, Chile, and Spain, which offset the completion of works in Peru and Portugal. EBITDA rose by 8% to EUR 127 million.

Construction margin remained stable at 5%. The division's backlog increased by 4% compared with December last year, reaching EUR 12.996 billion, of which more than 73% corresponds to our own concessions division, thereby limiting -- as we have repeatedly stated -- our exposure to the inherent risks of construction activity.

Among the main milestones of the quarter, we would like to highlight the following: a strategic alliance with local company build to promote projects in Australia, where we are developing the design of Peel Hospital awarded in January and where we have also been selected as one of the 2 finalists to design and build the new Brisbane 2032 Olympic Stadium. The selection of Sacyr as one of the companies to develop the ambitious program of the National Health Service, with a budget of GBP 37 billion over 12 years, with the first contract expected to be awarded shortly in the U.K. Finally, in Louisiana, we began the construction of the I-10 Highway, which is our first infrastructure project in the United States, EUR 2.3 billion in investment.

Finally, our Water division continued to deliver double-digit growth in the first quarter, both in revenue and EBITDA. Revenue totaled EUR 76 million, up 19%, while EBITDA increased by 21% to EUR 16 million, posting a margin of 22.4%.

The quarter milestones include the following: the acquisition of Aigues de Esparraguera in Barcelona, which serves 23 (sic) [ 23,000 ] inhabitants and reinforces Sacyr's strategy to grow across an integrated water cycle in this case in Catalonia. The award of new contracts in Spain for a total amount of EUR 84 million in Huelva, Tenerife, and Madrid. In April, the concession contract for the Coquimbo desalination plant was formalized.

Let me remind you that this is the first desalination plant under a public concession model tendered in Chile with an investment of EUR 305 million and a duration of 21 years. It's EUR 1.3 billion backlog is not included in the figures. It was signed after the quarter end. Total equity invested in this division reached EUR 137 million.

In closing this presentation, I would like to leave you with four key messages. First, the increase in the cash dividend for 2026 to EUR 0.10 per share from EUR 0.045 last year, subject to approval by the annual general shareholders meeting, in line with the shareholder remuneration commitment set out in our strategic plan.

Second, our operating growth resulting from improved performance across our key financial metrics confirms that our concession-based business model is becoming increasingly stronger, more scalable and more profitable.

In this regard, I would note that we are already working on the updated valuation of our assets, which we will present with our half year results in July. As announced in February during our previous earnings call presentation, by the end of this year and depending on the outcome of the major tenders in which we are currently bidding, we expect to be in a position to present a new strategic plan for the company as the current 2024-2027 plan will have been delivered 1 year ahead of schedule.

Third message, a new concession award in an English-speaking market, the Ontario Science Center in Canada, in line with our commitment to ramp up the weight of our portfolio in these countries, where we are competing for major ongoing tenders.

Finally, proven financial strength supported by the refinancing of the syndicated loan and a net recourse debt ratio that gives us significant strength to meet the challenges ahead.

We are now available to answer your questions.

Good morning, everybody, and thank you very much for attending this quarterly earnings call of Sacyr. We are going to start with the Q&A session now. We are going to start with the questions over the telephone. And afterwards, we will allow questions through the webcast chat.

Luis Prieto has the first question from Kepler Cheuvreux.

I have two questions. The first question is the following. What happens with the current inflationary context? How does this affect the tenders you will be presenting? Are there any measures in order to mitigate the current risks? And could you give us some color as to the awards of the projects where you have been shortlisted?

The second question, could you please give us an update on the Pedemontana valuation?

As for Pedemontana and its rebalancing, this is a clear cut contract worldwide, as we mentioned in the past. The economic financial balance on this award was conducted twice. And this time line is quite normal in Italy.

As for increased inflation and in connection with the managed lanes contracts, in the case of Georgia and in Tennessee, we will be submitting proposals in July, should no delays take place, that is to say, before the summer break. There are already some mechanisms in place in order to mitigate any inflationary fallout. And the contracts in terms of concession and construction, we have some models whereby such risks have been mitigated.

The next question is from JB, Miguel.

I have three questions. The first question is concerned dividend. You mentioned the EUR 0.15 per share. So you said that you were going to pay EUR 225 million until 2026. Are dividends going to be paid out in cash as of now? Or will there be any changes going forward? Could you give us some color as to provisions allocated over the quarter, which are a bit higher compared to 2025, especially in terms of the holding because I believe that this accounts for about EUR 40 million?

As for the asset valuation that you're going to be reporting in July, inflation and exchange rate performed better than initially expected in 2024, and that would be beneficial. However, the traffic of some intangible assets such as in Italy was quite positive. Therefore, could you please give us some color as to whether the performance of these concessions proved to be better than initially expected back in 2024?

Miguel, let me address your question concerning the dividend. The Board has resolved to submit to the AGM, the approval of the payment of 2 dividends in cash. The scrip dividend is a tool that the Board of Directors can resort to and it can decide afterwards whether it will be used in that tool or not. And as for the allocation of provisions in the current uncertain context, the company has decided to take a prudent approach.

That's why we have EUR 40 million in provisions at a holding level. But this is something that we have done in being prudent and conservative in our approach. And as for, of course, traffic and increase that increases the valuation of assets in Italy, of course, performance was better, and therefore, our valuation of the assets in Italy will also rise.

Thank you very much. There are no further questions over the phone. We now give away two questions from the webcast from Bernstein, Victor Acitores, he's asking whether we can give some color as to the timing of water-related projects in Australia.

The second question is concerned with managed lanes. What about Sacyr's competitive positioning and our consortium compared to our competitors' peers? We will get back to you in a minute, Victor.

Victor, as for the water-related projects in Australia, as you may know, we have been shortlisted for one water plant in Brisbane. We have already submitted our proposal for this tender. We believe that this project will be awarded this year. And then we will be submitting another proposal for another desalination plant, and we believe that a final decision will be made before year-end.

As for managed lanes tenders, Sacyr has been developing concessions for more than 30 years regarding highways. We have been working in the United States for the past 10 years with a hit ratio which is quite high in terms of tender awards. Therefore, we are competing on the same footing as other peers. In Atlanta -- there are 2 groups in Charlotte and Atlanta, 3.

Thank you very much, Pedro. Alvaro Navarro from Bestinver has another question. He's asking about the Pedemontana rebalancing status. And in this connection, he says whether after this rebalancing takes place, the project might be refinanced so whether we are working on it.

Another question is concerned with some guidance concerning distribution for concessions going forward in 2026 and equities to be invested. And the third question is connected to managed lanes. Should a managed lane be awarded after the summer break, when are we going to be injecting the first equity? And should we be awarded 2 or 3 managed lanes, which financing lines are being factored in by the company? Alvaro, we'll get back to you in a minute.

Alvaro, as for Pedemontana Veneta, the refinancing of the Pedemontana project is something we are working on regardless of the contractual entitlement we have. We are not working to get refinancing of this asset. As for equity redistribution, Carlos?

You know that last year, we reported more than EUR 200 million for both. So it's going to be about EUR 190 million, EUR 200 million. So we will be able to pay for these obligations according to the money we get from assets. We are still tendering other projects. So this is a very important strategy, how we manage funds and how we allocate them.

For the time being, we cannot provide you with a final answer. However, for I-10, we are going to be doing this and the first equity is being paid 4 years after the contract was formalized.

The next question is by Tom Zhang from Barclays. And he's asking about cash flow conversion or EBITDA conversion. It was reduced over the first quarter. He believes that this is due to working capital to begin with and to the sale of the Colombian assets, which no longer make a contribution. He's asking how we expect this conversion ratio to perform over the year. And second, the impact this could have on our cash flow. He's talking about the sale of assets in Colombia. We will get back to you in a minute, Tom.

As we repeatedly mentioned, Sacyr has financial assets. And once assets are operational, cash flows are above EBITDA. We have already sold 3 operational assets. Therefore, the ratio is above 100%. And the opposite happens when you carry out any deductions. This conversion ratio depends on seasonality.

As you are saying, this affects working capital, but not only that, there are certain projects that are paid quarterly or have yearly showing some seasonality. This ratio will, therefore, be improving over the year. And usually, the last quarter is the best one in terms of cash flow performance. But all the same, the figures are expected to remain as usual.

As for the impact of the sale of assets in Colombia last year, we mentioned that we will no longer receive EUR 180 million or EUR 200 million in EBITDA and cash flow. And this quarter, we didn't receive EUR 40 million as a result of that. Nonetheless, we continue to generate more cash flows as a result of the operation of other assets that have become operational and have replaced the sale of assets in Colombia.

There are no further questions over the webcast. However, we have one more question over the phone from Miguel.

I would like to know about the debt concerning Panama. I believe that it was supposed to fall due this year. Could you give us an update in this respect? Do you think that you could still recover something from this project? When should we expect any updates?

We have managed debt effectively. All consortium members have done so. So right now this debt was supposed to fall due in March. Rather than extending the debt and project terms and conditions, we decided to transfer this over to the holding that can negotiate better financing conditions. Therefore, that is the financial efficiency in other times. As for the arbitration procedures, we are not waiting -- sorry, Pedro will give you an answer on this.

Well, some public hearings were held in January, February, and March, and we expect some final decisions to be issued by the end of this year. So we believe that we will be able to report on this in early 2028. In the results, however, we have a neutral or positive effect because we have allocated provisions for this all.

There are no further questions either over the phone or the webcast. So now let me give the floor back to Mr. Pedro Siguenza.

Thank you, Alberto. If there are no further questions, we thank you for your attendance and interest, and we look forward to welcoming you again at our next results presentation. Thank you very much, and have a nice day.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. I'm Manuel Manrique, Executive Chairman of Sacyr. I'm joined in this presentation by Pedro Siguenza, Chief Executive Officer; and Carlos Mijangos, the company Chief Financial Officer. Thank you very much to all of you, analysts, investors and media representatives for attending this presentation of Sacyr's financial results for the full year 2025.

In fiscal year 2025, we reached the halfway point of our 2024-2027 strategic plan. And I must say that the results have been highly positive. Over the past 2 years, we have delivered significant additional value in our concession assets and increased our cash flow to invest in new projects. Therefore, confirming that our business model is increasingly solid, growing and profitable. This strong performance has been accompanied by an increase in our share price and cash dividend distribution, directly delivering the benefits of this business model to our shareholders.

Between 2021 and 2025, our market capitalization increased by 152%, significantly outperforming the IBEX 35, which rose by 114% over the same period. The solid balance sheet for the first 2 years of the plan makes us very optimistic about meeting and even exceeding the overall targets under the plan, which will bring us closer to our goal of becoming world leaders in greenfield project development by 2033 as we announced back in the day.

Now looking at the specific figures of this midterm review, I should mention the following. Operating cash flow of EUR 1.359 billion. This has exceeded the target 2 years ahead of schedule. We have secured 5 new concession project awards by contrast with 3 or 4 initially estimated with EUR 905 million in new capital invested, we have almost reached the target of EUR 1 billion that we set for the 2024-2027 plan.

Concession distributions amounted to EUR 224 million, well above expectations. Net recourse debt is at minimum levels. We have also obtained an investment-grade rating, and we have distributed a first cash dividend of EUR 225 million, which is the total that we planned to distribute over this period.

These figures indicate that by the end of 2026, we shall have practically fulfilled the entire plan a year ahead of schedule, and we shall be ready to set new more ambitious goals, especially depending on the outcome of some significant tenders in Australia, Italy and the United States where we are competing.

Thanks to the awards won in the last 2 years, future concession distributions have increased by 18% to EUR 19 billion, which is a real strength for the sustainability of this business model. Since the last Investor Day held in May 2024, total future distributions have increased by more than EUR 3.1 billion, excluding those received since then. This important data reflects the awards that we report each year.

We are a company experiencing exponential growth, but one that needs a certain amount of time to build and commission assets. We are investing in the future because today's successes will be seen in 3, 4, 5 years down the road and in the form of distributions from our concessions. Concession distributions amounted to EUR 224 million in fiscal 2025, 17% more than initially estimated under the plan. And if we add to this the proceeds from the sale of the Colombian motorways, the figure exceeds EUR 500 million.

I would like to take this opportunity to highlight the value of this divestment, which is 12% above our internal valuation due to the EBITDA multiple obtained and also because it helps us to balance our sources of income with a view to consolidating the global group we want to build. The 3 Colombian assets included in this successful transaction, which we carried out by taking advantage of an excellent opportunity were already part of Voreantis.

We have everything ready and continue to see a lot of interest among potential investors. But as we do not currently need cash for the projects in our portfolio, we shall undertake this transaction when we see the right market window. After progress made, the valuation of the assets also continues to rise. As of December 2025, it reached almost EUR 4 billion, in line with the target of EUR 5.1 billion by the end of 2027.

The EUR 4 billion valuation figure does not include the latest assets awarded to the company, including the 2 water plants in Chile. And I would like to highlight this as one of the major milestones reported in the prior fiscal period. That is why in the coming months, we are planning to offer an updated valuation, which would undoubtedly already be in the north of EUR 4 billion.

As for 2025 income statement, noteworthy is the improvement across lines. Revenue grew by 2% to EUR 4. 6 billion with a net profit, excluding divestments in the amount of EUR 165 million. That would have been 46% more. 93% of EBITDA comes from concession activities.

In this regard, 73% of the construction portfolio is for our own concessionaire already. Operating cash flow in turn amounted to EUR 1.359 billion, up 5% and the net recourse debt ratio is just 0.18 compared to 0.42 a year earlier and far below the 1 percentage point we had committed ourselves to. These rocket solid results demonstrate the success of the concession model for sustainable and stable growth. In 2025, we achieved a milestone that we had already announced back in the day. Cash flow exceeded EBITDA, which gives us great strength to face the challenges ahead.

Let me remind you that financial assets of most of our concessions, once they become operational, EBITDA goes down and cash flows go up. Well, that has already occurred and cash flows will continue to rise as standing out from EBITDA, which will slide down progressively.

Now I would like to mention other milestones achieved during fiscal year 2025, such as a record 5 concession awards, 1 in Paraguay, 1 in Italy and 3 in Chile, 2 of which are major water assets. The investment grade rating obtained from a global agency, that's another milestone. Our exceptional positioning for the future in the managed lanes sector in the U.S. and in the water sector in strategic markets.

The outstanding divestment of the 3 Colombian assets, as I said, 12% above our initial valuation. Also the fulfillment of our commitment to pay a cash dividend together with a scrip dividend for the benefit of all our shareholders and the division of executive functions carried out during the fiscal year, which enables us to continue fulfilling our strategic plan and preparing for the future with the utmost assurance.

Finally, I would like to mention Sacyr's leading position in the field of sustainability. With 5 years of continuous improvement having been reported in Standard & Poor's Global book. Also as the only European infrastructure company with a CPD rating in water and climate in 2025 and among the world's best companies with the lowest ESG risk profile according to Sustainalytics.

Next, Carlos Mijangos will provide you with more specific data and details on the income statement and balance sheet.

Thank you, Mr. Chairman. We shall now analyze the company's operational and financial performance during fiscal year 2025.

First, let's take a look at the results for 2025. Revenue reached EUR 4.66 billion, up 12% year-on-year. EBITDA stood at EUR 1.358 billion, maintaining a margin of around 29%, which reflects strong operating performance in terms of net profit, excluding divestment, there was a very significant increase of 46%, reaching EUR 165 million. However, the sale of assets in Colombia had a one-off effect of minus EUR 80 million, reducing the final net profit to EUR 86 million.

Operating cash flow in turn amounted to EUR 1.359 billion, up 5% compared to 2024, demonstrating the company's ability to generate cash from its assets, and this is higher than EBITDA. As the Chairman pointed out, I would like to mention that due to the accounting associated with concessions with the risk of litigation, which are considered financial assets for accounting purposes, maximum EBITDA is achieved at the end of the construction phase.

And as the years of operating -- operation elapse, EBITDA slides down, but operating cash flow climbs, resulting in this effect where more operating cash flow has already been generated than EBITDA. From a financial standpoint, the company has achieved an investment-grade rating from Morningstar DBRS, which is a sign of strength and confidence for investors, allowing it to diversify source of financing, reduce costs and simplify the prequalification processes for new projects.

Furthermore, this opens up the opportunity to issue debt in the U.S. market through private placements known as USPPs. In the area of divestments, as the Chairman pointed out as well, the sale of 3 motorways in Colombia for EUR 1.565 billion stands out with a multiple of 2.7x the capital invested and 12% above our internal valuation.

With regard to treasury share transactions, the company remains committed to value. We currently hold 30 million shares through forward contracts with an average reference price of EUR 3.36. As for shareholder remuneration in 2025, we made a steady progress on increasing the cash dividend with a payment of EUR 0.045 per share having been paid in July and a dividend in January, maintaining the policy established in our 2024-2027 strategic plan to remunerate with at least EUR 225 million in cash during the planned value. Capital contributions and distributions.

Between 2025 and 2033, concession distributions of more than EUR 3.7 billion are expected with EUR 1.6 billion in capital contributions being committed to our projects. The net cash available for future growth amounts to EUR 2.14 billion, which is a very significant figure that will enable us to compete with top-tier companies in the sector for the largest infrastructure projects currently being tendered.

Long-term outlook, total estimated distributions through 2021 amount to EUR 19 billion, driven by new awards, discounting asset turnover in Colombia, and this will generate an average annual distribution of EUR 460 million, which further reinforces the company's growth capacity. If we now analyze the evolution of consolidated net debt, it has been reduced by EUR 532 million. It is worth highlighting the strong operating cash flow generated by business activities amounted to EUR 1.358 billion.

Then we had the financial result generated mainly by project debt amounting to EUR 609 million. We have invested more than EUR 800 million in our assets and received EUR 281 million from the sale of assets in Colombia. Finally, under the heading of miscellaneous, there is a decrease of EUR 335 million due to 3 main impacts. Debt reduction due to the effect of the consolidation of Chilean assets that were held for sale in 2024 and then the deconsolidation of Colombian assets already sold for a net amount of EUR 222 million. That's the net effect.

There is also a debt reduction due to exchange rate differences in the amount of EUR 190 million and debt increased due to leases and dividends from the parent company amounting to EUR 82 million. As for net debt -- net recourse debt, the most notable event of the quarter were the funds received from the sale of 3 Colombian assets totaling EUR 281 million. And this cash inflow together with seasonal recovery in working capital and taking into account investments and financial expenses over the quarter brings us to a figure of EUR 59 million, which is the lowest level ever achieved by the company.

With this positive debt figure, the ratio of net recourse debt to recourse EBITDA plus dividends is 0.18x, well below the maximum commitment of 1x. The process of deleveraging and reducing debt and risk undertaken by the company in recent years is quite evident, going from EUR 850 million in 2019 to EUR 59 million in 2025.

And now I give the floor back to the Chairman.

Now Pedro Siguenza will provide a detailed view of the performance of each business line.

Thank you very much, Mr. Chairman, and good morning, everyone. I will now address the company's performance broken down by line of business in fiscal year 2025. Once again, we achieved a record with 5 new greenfield concession projects awarded, representing a success rate in our bids of over 50% because we were awarded 5 contracts out of 9 bids submitted.

In 2025, we were awarded projects totaling EUR 13.6 billion, increasing our portfolio as of December 2025 to a total of EUR 67.425 billion, and this affects all of our portfolios. We have created value for our water division with the award of 2 major concession projects, Antofagasta plant in Chile, the largest wastewater reuse plant in Latin America, which is a key project to secure water supply in the Antofagasta region with an investment of EUR 295 million, a duration of 35 years and an estimated portfolio of EUR 2.5 billion.

And the Coquimbo desalination plant, which is the first desalination plant under a public concession tender in Chile with an investment of EUR 305 million, a duration of 21 years and an estimated portfolio of EUR 1.2 billion. The plant will have an initial capacity of 800 liters per second with the possibility of expanding that capacity to 1,200 liters per second and will directly benefit more than 540,000 people in the municipalities of La Serena, Coquimbo, and Ovalle.

Within our hospital specialty segment, where we are a global leader with more than 80 premises built throughout our history, we have added to our portfolio, the City of Health & Science project in Novara in the Piemonte region of Italy. This is a multifunctional complex that will encompass a new hospital and a university campus with an investment of EUR 125 million, a duration of 25 years and which consolidates our position in Italy, one of our core strategic markets.

As for transport infrastructure, we have been awarded 2 new concession projects. The Asuncion elevated Urban Highway, which extends the Eastern route in Paraguay. This is a project with an investment of EUR 174 million and a duration of 23 years. Then the Piemonte route in Chile, a 20-kilometer stretch of highway that is key to the road modernization plan in the Biobio region of concession with an investment of EUR 330 million and a duration of 45 years. With these high greenfield project awards, we continue to ensure our commitment to the steady growth of our successful concession model.

Furthermore, today, we can announce that we have just signed the contract for our first concession project in Canada, the Ontario Science Museum in Toronto, a project that will transform the Toronto skyline and open the doors to one of the most modern science centers in the world. This is a 30-year concession entailing an investment of EUR 260 million. And we hope that this contract will be the gateway to other new concessions in Canada in the future.

This slide shows a map with the main opportunities that we are bidding on, prequalifying for or studying in line with our strategic plan commitment to increase the weight of our portfolio in English-speaking countries with a special focus on tenders in North America and Australia, but without neglecting our strategic European and Chilean markets.

In the United States, as you know, we are prequalified for the managed lanes in Georgia, the I-285 in Atlanta and the I-24 in Tennessee in Nashville, and we will be submitting bids before the summer break. In addition, last Friday, we were prequalified for the I-77 in North Carolina, another express lane on the southern approach to the city of Charlotte.

As you can see, we're also pursuing other managed lane opportunities that are expected to be prequalified shortly in the United States. In Canada, in addition to the aforementioned Ontario Science Center concession, which we have been awarded, we are pursuing various hospital concession opportunities such as the Windsor Hospital for Ontario infrastructure, where we are preparing for prequalification as well as several collaborative construction projects such as expansion of the Toronto Airport and the extension of Line 1 of the city's subway system for Metrolinx.

In Australia, we'd like to highlight the recent partnership with the local build group and the award of our first hospital project in the country, Peel Health Campus in Mandurah, Perth, for which the initial design contract was signed last January.

Together with build, we are exploring other opportunities in the hospital construction sector, such as the Parkville Hospital concession in Victoria and various landmark buildings for the 2032 Olympic Games in Brisbane. In addition, we are competing for major water projects such as the desalination plant for Northern water supply in Adelaide, the wire long water treatment plant south of Brisbane and the Aurora reuse plant in Melbourne. In our strategic Italian market, we have submitted our prequalification for the A22 motorway connecting Modena with the Brenner Pass to Austria.

And we are still awaiting the tenders for the Turin, Milan, and Brescia-Padua sections of the A4 motorway, which are due to be put up to tender shortly. Also in Europe, we are analyzing the tenders for the high-speed train from Porto to Lisbon and in Ireland for Metrolinx, the connection between Dublin and the airport, both under concession.

I would also like to highlight the National Health Service program in the U.K., a framework agreement to build hospitals under a collaborative contract model with an initial wave of 11 hospitals worth GBP 15 billion which will be expanded to GBP 37 billion. And we are now expecting the official announcement of the company shortlisted for the execution of these projects shortly.

And in Chile, we are pursuing several water and highway concession projects such as the Caldera-Antofagasta Highway, which is a private initiative developed by Sacyr, the Rio Bueno-Puerto Montt section, both on Route 5 and Route 57 between Santiago and the Andes among other opportunities. I will now provide you with some details on the performance of our lines of business.

The Concession division recorded revenue of EUR 1.892 billion, representing an increase of 8% over the prior period. The impact of the exit from the scope of the 3 motorways sold in Colombia as well as the accounting effect of the evolution of operational financial assets have affected the division's operating income and EBITDA by 4% and 14%, respectively.

Construction revenue in turn rose by 50% due to the progress of major new greenfield projects such as the Velindre Hospital in Cardiff, the Buga-Buenaventura Highway in Colombia and the Ruta de la Fruta in Chile. In fiscal 2025, we invested EUR 275 million in this division, bringing the total equity invested in our infrastructure assets in the transport sector to EUR 1.71 billion after deducting investments, whereas distributions from our concessions amounted to EUR 212 million in 2025.

This year, we also commissioned 3 assets, all of them in Chile, the Atacama Airport in January, the Itata route in April and 68 on July. On March 1, we will commission the Antofagasta Airport project. As for Engineering & Infrastructure, revenue grew by 8% to EUR 2.971 billion, thanks to the growth of our activity in Italy and particularly the contribution of the A21 motorway.

For this same reason, EBITDA rose 31% to EUR 552 million. If we analyze the construction activity only since, as you know, Italian concessions are included in this division, the EBITDA margin remains stable at 4.8% over the revenue figure. The division's portfolio set a new record, increasing by 18% over the year to EUR 12.47 billion, of which 73% of the portfolio, as the Chairman pointed out, corresponds to activities for our own concessions.

Noteworthy milestones in the last quarter include the successful completion of the US 62 highway in Lubbock, Texas, bringing the total number of road projects completed in the country to 11 to date, which demonstrates our ability to execute complex projects in the U.S.

As I mentioned before, the award and execution of the Peel Hospital contract in Perth. This is alliance-based contract, that is to say a collaborative contract, which is one where we prioritize the execution of works for third parties. Finally, our Water division continues to post the double-digit growth reported in 2025, both in terms of revenue, which is up 25% and now exceeds EUR 300 million and in terms of EBITDA, which reached EUR 62 million, 23% more year-on-year.

The portfolio grows by 45% to EUR 6.979 billion. This figure does not include the Coquimbo desalination plant, which will add another EUR 1.2 billion to this portfolio in March once the contract is signed. Total equity invested in the concessions of this division amounts to EUR 128 million, and the assets have delivered EUR 12 million this year.

So with this year's awards for 2 major concession projects, Antofagasta and Coquimbo, we have given a major boost to our goal of growing our water business within our 2024-2027 strategic plan. Now I give the floor back to the Chairman for some concluding remarks.

Thank you very much, Pedro and Carlos. Sacyr will celebrate its 40th anniversary in 2026. I sincerely believe that we are at the peak of our trajectory. We have a clear-cut strategy focused on concessions and avoiding risks. We have a healthy balance sheet with a strong cash position and well-structured project debt. We have also eliminated corporate debt.

We are ideally positioned to tackle the challenges of transport, hospital and water infrastructure from a public-private partnership perspective. Halfway through the 2024-2027 strategic cycle, I have no doubt that we will successfully complete it, thanks to last year's achievements, which represent the fulfillment of our commitments to shareholders and the market.

Our success in securing concessions with 5 new awards to begin with and which, as we have said, will form the basis for this progressive increase in total distributions in the coming years from concessions, together with the multiple growth opportunities that we are bidding for in our strategic markets, and with more than EUR 2.1 billion available to invest between now and 2033. In terms of equity, let's make this clear.

Second, cash flow exceeds EBITDA and continues to rise. Thirdly, the achievement of the investment-grade rating, which will enable us to increase our sources of financing while reducing finance costs. And finally, shareholders' remuneration with the first cash dividend payment.

I would also like to take this opportunity to thank Sacyr's all 15,000 professionals around the world for their work and engagement over the past year and send them a message of confidence in this company's project. Thanks to each and every one of them, we can report on the milestones achieved in our strategic plan today.

In 2026, we shall continue working to fulfill our outstanding commitments, and we are ready to celebrate our 40th anniversary and move forward with even greater strength. We are now available to answer your questions.

Good morning, everybody, and thank you very much for joining us at this financial results presentation of Sacyr. We are going to start with those questions posted via telephone first, and then we are going to tackle the questions coming through the website. [Operator Instructions] Luis Prieto from Kepler Cheuvreux is going to ask the first question.

I had 2 questions. The first question has to do with Voreantis schedule. I understand that Pedemontana is a requirement for rebalancing purposes. But since the Chairman has conveyed that there is maybe we should have to wait until next year for the transaction to be launched. We have offset some transactions that were launched in the past with a scope different from the ones initially estimated. Could that happen with Voreantis? Well, could that be the case?

We are going to answer in a minute.

Well, regarding Voreantis, I think that it was made quite clear. We did the reversal of 3 key assets. We announced that we have EUR 2.140 billion in equity to invest. We do not need that operation for further investments. And second, we have a pipeline, which is huge. And we believe that it will even improve our vision going forward positively. So this will establish a new strategic plan as well as what will happen with Voreantis.

As for the question concerning the scope, the transactions that we engaged in were ones where we adapted ourselves to do whatever was best for the company at each point in time, and that is exactly what we're going to do with Voreantis.

There are no further questions over the phone. We are going to address the questions that were posted through the webcast.

Filipe Leite asks whether we can confirm or whether we can give more color on the contract that we have just announced for the Ontario Science Museum, the investment figure and our stake in such a consortium. We are also being asked about our stake in the consortium where we are bidding for concerning managed lanes.

And as for equity concerning construction and upfront payments, which are the amounts that we are analyzing for the managed lanes? And fourth, when do you expect to reach the rebalancing of the Pedemontana project, I have to say the financial balance.

We will get back to you in a minute.

Let's see. The contract we have announced over the Toronto Science Museum project entails an investment of EUR 280 million. We are going to go hand-in-hand with Amico and John Laing. As for the managed lanes, we are going to work with Plenary. This is a Quebec fund. And then an Israeli company with a 50% stake in construction and a 30% stake in equity. And we have already been prequalified as far as this project is concerned.

Regarding the Pedemontana related question, Filipe, we have a contractual entitlement to the rebalancing. So I have the same concern as the one announced 6 months ago. That to say, we do not have any worry about this. There were regional elections, and that normally puts the schedule off.

We continue to engage in meetings with the authorities and the Big Four that has been appointed to this end, but you know that time management in Italy has its peculiarities. This is going to be the third rebalancing process concerning this concession, but we are not worried about it at all.

Thank you, Mr. Chairman. The next question is by Julius Nickelsen from Bank of America. He asked about the Pedemontana project. And he says whether apart from the transaction concerning Voreantis, there is another potential divestment being analyzed such as in Chile. And second, whether we can provide an update about conversations with rating agencies. We will get back to you in a minute. Thank you.

As for Chile, there's always interest around our assets. However, when there is anything concrete, we are going to make the relevant announcement as we have always done. As for the rating agencies, we have been working with several agencies for quite some time. We were waiting for 2025 results being published in order to keep moving forward. Our goal is, therefore, to keep on engaging in conversations with them or exchanging information with them in order to get a new rating.

We are going to go back to the telephone line because Miguel Gonzslez from JB Capital has a question.

I had 2 questions, 2 quick questions. The first question is the following. You provided an update of dividend evolution and equity committed in concessions. The gap between dividends and equity in 2026 has narrowed down compared to the guidance provided in Q3. Therefore, I would like to know about the FFO final picture, especially after the divestment in Colombia. Do you expect any growth in this respect compared to 2025?

And then concerning the pipeline shown on Slide 25. We are talking about the United States here, but could you give us more visibility about the timing or about the budget concerning the most relevant awards all the tenders in Italy, the Route 5 in Chile or the project in Portugal, I believe that you decided to withdraw after the first tender. Could you give us any additional information in this respect? I would appreciate that.

Miguel, we will get back to you briefly.

Okay. Miguel, I'm going to answer your question concerning the funds of operations. On a like-for-like basis, most of our assets have to do with payment upon availability, but inflation normally results in increased cash flows compared to the prior year. Here, we are also factoring in the assets that we were awarded in 2024 and 2025. Those which are greenfield, of course, do not have a contribution to operating cash flows, not now, but they will in the future.

Then we have EUR 200 million coming from Colombian concessions. On a like-for-like basis, of course, we're going to grow. In absolute terms, we had to factor in those EUR 200 million and include the greenfield assets that we have been awarded over the past 2 years, and therefore, we are going to report similar figures.

As for the question concerning timings, the 2 managed lane projects in Georgia and Tennessee in the United States were announced before the summer break. Route 5 in Chile is going to announce next month and Route 57 is going to be announced in June.

As for Italy, and as the Chairman said, actually, the tender for the Brescia-Padova-Turin motorways should already be available, but actually, we are still waiting. As for the Portugal section of stretch project, it has been put out to tender once again. There were no bidders and therefore, they decided to change the terms and conditions, and we are now waiting for this to be announced in May. We are paying close attention to developments.

We go back to webcast questions. We had 2 questions, one from Victor Acitores. Are we currently analyzing the possibility of approving a new incentive plan tied to share price?

And secondly, are we planning to update the evolution of our assets in fiscal 2026?

Okay, Victor. We shall be presenting a new incentive plan for management members in line with share prices and always in line with the best interest of shareholders, and we shall be doing so in the coming months. Secondly, based on the first half yearly results, we shall review the value of our assets.

The next question is by Julius once again from Bank of America. Could we please confirm whether we are going to update the figures under our plan? Are we going to present a new plan? Or are we going to hold an Investor Day? We will answer shortly. Thank you.

Well, based on the results expected from this pipeline in Q4 2026, we expect to undertake a new strategic plan. As usual, we will keep you posted about all this and about the timing.

Thank you very much. There are no further questions. Now let me give the floor back to the Chairman.

Well, if there are no further questions, we thank you once again for your presence, your attendance and interest, and we wish you all fare well until the next presentation. Thank you very much, and have a good afternoon.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning. I'm Pedro Siguenza, CEO of Sacyr. Joining me today is Carlos Mijangos, the company's Chief Financial Officer. Thank you all very much for attending the earnings call of Sacyr for the third quarter of fiscal year 2025.

Sacyr continues to grow in line with its 2024-2027 strategic plan, bolstered by the strength of our concession model and backed by the key figures reported in Q3. Revenue grew by 5% compared to the prior year, reaching EUR 3.412 billion. Net profit, excluding the effect of divestments in Colombia rose by 81% to EUR 132 million (sic) [ EUR 134 million ]. 92% of EBITDA comes from our concession activities.

Operating cash flow increased by 11% to EUR 890 million, and we have invested EUR 232 million of new capital in the first 9 months of the year, bringing the total equity invested in our concessions at the end of September to EUR 2.017 billion.

Among the most significant milestones of the year, I would like to highlight the 4 that are shown on the slide. The 4 new concession awards in Italy, Chile and Paraguay which I will describe later and which represent a clear success in terms of backlog. The investment-grade rating obtained from the global agency Morningstar DBRS, which will facilitate and increase our sources of financing. Next, our presence in tenders for the most relevant concession projects currently on the market, where we are confident that we will continue to win contracts. As a fourth milestone, I can announce that the divestment of our 3 concession assets in Colombia has already obtained all the necessary authorizations. So the transaction will be closed and payment will be received during the month of November.

As I mentioned, in fiscal year 2025, we have been awarded 4 new concession projects, which implies a hit rate of 50% on the bids timely submitted. However, this ratio is actually higher as 1 of the 8 concessions tendered, the Red Deer Hospital in Alberta in Canada was canceled prior to its award.

The 4 new concession projects include the Novara City of Health and Science project in Italy in the Piedmont region. This is a multifunctional complex that will comprise a new hospital and a university campus with an investment of EUR 525 million. This contract will be valid for 25 years and will consolidate our position in Italy, which is one of our core strategic markets.

Next, the Antofagasta plant, the largest wastewater reuse plant in Latin America, a key project to ensure sustainable water supply in the arid region of Antofagasta in the Atacama Desert with an investment of EUR 300 million and a duration of 35 years.

Next, the Asunci n elevated urban highway, which extends the Eastern route in Paraguay, a EUR 174 million project with a duration of 23 years.

And last week, we won the tender for the construction of the Pie de Monte in Nahuel in Chile, a 20-kilometer section of highway that is key to the road modernization plan in the Biob o region in Concepci n. This investment totals EUR 330 million, and the project will be valid for 45 years.

These 4 greenfield concession projects enable us to continue ensuring our commitment to steady growth.

On this slide, you can see a map highlighting the main opportunities that we are currently bidding for, prequalifying for or analyzing. And these align with our strategic plans goal to strengthen our presence in English-speaking countries with a particular focus on tenders in North America and Australia, while continuing to prioritize our core markets in Italy and Chile.

In the short term, we are awaiting the outcome of the tenders for the Ontario Science Museum in Toronto, Canada and the Coquimbo desalination plant in Chile, both concessions lasting 30 and 21 years, respectively.

In the United States, as you know, we have prequalified for the managed lanes projects in Atlanta as well as for the I-285 and I-24 projects in Tennessee, where we plan to submit bids in the first half of the next year. And we're also in the process of prequalifying for the I-77 project in North Carolina.

In Canada, we have prequalified for the Trans-Canada Highway concession, which bids will be submitted in the first quarter of 2026, and we are pursuing various hospital concession opportunities such as the Windsor Hospital for Ontario Infrastructure (sic) [ Infrastructure Ontario].

In Australia, we are competing in 3 major water projects, the Adelaide Desalination Plant for Northern Water Supply, the Wyaralong Water Treatment Plant, south of Brisbane, and the Aurora reuse plant in Melbourne. In addition, we are pursuing several hospital projects such as the Parkville Hospital in Victoria and several landmark buildings for the 2032 Olympic Games in Brisbane.

In our strategic Italian market, we are preparing to submit our prequalification for the Brenner Motorway, the A22, which connects Modena to the Brenner Pass and Austria.

And we're also monitoring the upcoming tenders for the Turin-Milan and Brescia-Padua sections of the A4 Motorway, which are expected to be launched soon.

Finally, in Chile, in addition to awaiting the result of November 14 of Coquimbo desalination plant, we are pursuing several water projects and highway concessions on Route 5, such as the Caldera-Antofagasta Highway, which is a private initiative developed by Sacyr and the R o Bueno-Puerto Montt section.

I'll now give the floor to Carlos Mijangos to report on the financial performance in greater detail.

Thank you very much, Pedro. Let's move on to analyze the company's operational and financial performance. In the first 9 months of the year, revenue rose by 5% compared to the prior year, reaching EUR 3.412 billion.

EBITDA also grew by 7%, reaching EUR 1.018 billion. And in addition, EBITDA margin rose, improving the company's operational efficiency.

In terms of net profit, if we exclude divestments, there has been a very significant increase of 81%, reaching EUR 134 million. However, the sale of assets in Colombia had a one-off impact of minus EUR 72 million, reducing the final net profit to EUR 62 million.

This provision of EUR 72 million has increased this quarter compared to the prior one as the contribution in this period of positive profit from the 3 assets held for sale also pushes the value of its equity up. However, the effect is neutral as a positive contribution to the income statement is offset by the increase in the provision for the sale.

Operating cash flow grew by 11% to EUR 890 million, showing the company's ability to generate cash and the operating cash flow to EBITDA conversion margin reached 88% compared to 85% in the prior year.

Another important point is the update of the valuation of concession assets carried out in June this year. As of December 2025, these assets are worth almost EUR 4 billion, and the trend is clearly upward. Our aim being to outstrip EUR 5 billion in 2027 and reaching EUR 9 billion to EUR 10 billion in 2033.

With regards to shareholders, the company has fulfilled its cash remuneration commitment, paying a cash dividend of EUR 0.045 per share in July 2025 and maintaining the policy established under its strategic plan to remunerate shareholders allocating at least EUR 225 million in cash during the period of the 2024-2027 strategic plan.

In the financial sphere, the company has obtained an investment-grade rating from Morningstar DBRS, a clear sign of strength and investor confidence. This achievement enables the company to diversify its financing sources, reducing financing costs and streamlining prequalification processes for new projects. In addition, it opens the door to issuing debt in the U.S. market through private placements known as USPPs.

As we announced a few months ago, a significant milestone has been the sale of 3 motorways in Colombia for USD 1.6 billion, which represents a very attractive multiple on the initial investment of 2.7x and 12% above our internal valuation. All the necessary authorizations have already been obtained and at the closing a receipt of funds will take place during November, we're talking about more than USD 300 million.

We continue to advance in our commitment to sustainability, both in project financing and in emissions reduction and social inclusion, aligning ourselves with the most demanding international standards. By way of example, we can mention the financing of the Buenaventura-Buga project that was closed in August, amounting to EUR 780 million with indicators for reducing polluting gases and hiring women in the areas of influence.

As for the evolution of consolidated debt in the course of these 9 months, it has been reduced by EUR 400 million. It is worth highlighting the strong operating cash flow generated by business activity amounting to EUR 890 million, the financial result, which mainly contributes to project debt amounting to EUR 446 million, and the fact that we have invested almost EUR 500 million in our assets. And finally, under the heading of miscellaneous, we find the effect of the consolidation of Chilean assets that were held for sale in 2024 and the deconsolidation of Colombian assets amounting to minus EUR 215 million, which together with the exchange rate effect of EUR 302 million on leases and dividends generates a total impact of minus EUR 439 million. That's how we came to EUR 6.489 billion as at September 2025.

In terms of recourse debt evolution, the most remarkable event reported over the quarter is the payment of a dividend to our shareholders amounted to EUR 36 million, together with the cash working capital recovery of EUR 15 million. We have invested EUR 33 million, of which EUR 24 million corresponds to equity in our concessions, the rest being machinery. And once the cash inflow from the divestment in Colombia is obtained, recourse debt will be reduced markedly.

Now Pedro will give you more color on the performance of each business area.

Thank you very much, Carlos. Now I will provide details on the performance of our 3 business areas. The Concessions division posted revenue of EUR 1.266 billion, representing an increase of 2% year-on-year. The positive contribution of Chilean assets, especially the Itata Route and Route 68, reduced the negative accounting impact of financial assets on both operating income and EBITDA for the division, which fell by 8% and 9%, respectively.

Revenue from construction grew by 37%, thanks to the contribution of major greenfield projects such as the Velindre Hospital in Cardiff, the Buga-Buenaventura Highway in Colombia or the Fruit Route in Chile.

Our concessions have distributed EUR 114 million in the first 9 months of the year. So far, we have invested EUR 225 million, bringing the total equity invested in our infrastructure concession assets to EUR 1.889 billion.

This year, we have also brought 3 assets into operation, all of them in Chile, the Atacama Airport in January, the Itata Route, the North Access to Concepci n in April and Route 68 on July 1.

As I mentioned earlier, we have been shortlisted for 2 managed lanes projects in the U.S., the I-285 in Georgia and the I-24 in Tennessee, and we are currently in the prequalification phase for the I-77 in North Carolina. On the other hand, we have received further recognition for the I-10 highway project in Louisiana in the U.S. This being the seventh award received by our concession. Let me remind you that this is the largest financing in terms of volume and complexity carried out through a public-private partnership in the state of Louisiana.

In the Engineering & Infrastructure division, revenue grew by 12% to EUR 2.205 billion, thanks to the significant growth of our activity in Italy and particularly the contribution of the A21 motorway. For this same reason, EBITDA rose to 42% up to EUR 407 million.

If we analyze the construction activity in isolation since, as you know, Italian concessions are included in this division, the EBITDA margin remained stable, standing at 4.8% over revenue.

The division's backlog has set a new record, climbing by 15% in the first 9 months of the year, reaching EUR 12.151 billion, of which 71% of the backlog corresponds to activity for our own concessions.

Some of the highlights of the last quarter include the completion of a 32-kilometer road in Sweden, the execution of a contract for the Dublin Airport underpass with an investment of EUR 265 million and the completion and opening to traffic of an 11-mile section of the SR23 highway in Jacksonville, Florida, our largest construction project to date in the U.S.

And finally, our Water division continues to post double-digit growth in 2025, both in terms of revenue, which rose by 17% until September and now exceeds EUR 200 million and in terms of EBITDA, which reached EUR 46 million, up 23% year-on-year.

The backlog grew by almost 50% to EUR 7.148 billion, largely thanks to the award of the Antofagasta reuse plant.

Total equity invested in the concessions of this division reached EUR 128 million. A major milestone this quarter was the fact that our Perth desalination plant in Australia reached its first million megaliters of water produced since operations began in 2011. This facility is the largest producer of desalinated water in Australia, the seventh largest in the world and is recognized as a benchmark in the industry.

To conclude this presentation, and by way of conclusion, I would like to express our confidence in the successful attainment of our 2024-2027 strategic plan, thanks to the highlights we have just explained. First, our success in securing concessions with 4 new awards in the first 9 months of the year. Second, the manifold growth opportunities we are bidding on in our strategic markets, where we are confident we will continue our successful track record in terms of backlog. Third, the 11% increase in operating cash flow to EUR 890 million. And finally, achieving investment-grade rating and delivering returns to our shareholders through the first cash dividend payment, thus fulfilling our commitments.

We are now available to answer any questions you may have.

Good morning, everybody. Next, we're going to start with the Q&A session. We are going to start with the questions coming through the telephone line. And next, we are going to continue with the questions posted via chat in the webcast. Luis Prieto from Kepler Cheuvreux, you have the floor for the first question.

I have 2 questions -- 2 quick questions. Thank you very much for answering this question. As for the earn-outs of Colombia, in terms of some pending offsets, how likely it is for Sacyr to receive the full amount that was timely agreed during the sales agreement.

And the next question, and I don't mean to be impatient. I would like to know which is the current situation with Pedemontana in terms of rebalancing. Could you give us an update on how the situation evolves with regards to Pedemontana?

Okay. We are going to answer in just a moment, please.

Okay, Luis. As for Colombia, according to the purchase and sale agreement, we agreed that the result of the arbitration award will go to the construction consortium where we hold 60%. The amount has not been ultimately agreed. This has to be decided upon by the arbitration award, but the proportional amount will correspond to Sacyr, and this is what we announced as a relevant fact that was timely disclosed.

Luis, as for Pedemontana-Veneta rebalancing, as we mentioned in the past, as our Chairman mentioned in the past, we have no concern whatsoever. We have made steady progress with our technicians in Pedemontana-Veneta. We are also making steady progress with the financial adviser in the region, KPMG, in order to rebalance their financial and economic plan that is tied to this concession project.

Luis, do you have any additional questions?

Yes. Let me go back to what Carlos answered as for Colombia. You cannot provide any degree of certainty as to the final numbers, right? Do you think that you can provide any numbers as for the final earn-outs?

Luis, as you may understand, we have submitted all the necessary arguments when our construction works were halted. But for the moment, we cannot actually provide an answer. However, we stand very high chances.

The next question is by Miguel Gonz lez Toquero from JB Capital.

I have 2 questions. Actually, I have 3 questions. The first question is, as for the evolution of the first 9 months, I have a question as for FFOs, even though cash conversion was a little bit weaker this quarter compared to the prior year. Is this due to the effect of intangible assets? Could you give us some more color in this regard?

And also, I would like to know whether you can mention certain Colombia aside where your estimates are in terms of growth for Q4? And along these lines, now that you have officially closed the project in Colombia, can you give us some information as to the loss in terms of FFOs that this could represent and whether this is going to be offset by the new projects that you have won?

And lastly, concerning the Water division business, you are performing very well, but margins have come down slightly over this quarter. I don't know whether this is due to the mix between concessions and other integrated businesses. I would like to know whether you can give us some more color as to what you expect in terms of sales growth in 2026 and how you think the margins might evolve into the future?

And finally, I would like to know whether any value should be continued to be materialized in this division going forward?

Thank you very much, Miguel. We will answer in just a moment.

Okay. So the first question concerning operating cash flows for the first 9 months. Since most of our assets are assets held for availability, not all payments are monthly. Sometimes we get paid every 6 or 9 months. Therefore, our quarters can be compared one against the other and not against the prior quarter.

And with regards to last year, the difference is very small. Conversion and exchange rates play a key role here. So there's nothing remarkable in this respect. From a company perspective, we continue to grow at a rate of 11%.

As for the closing of the year, we will continue to consolidate operating cash flows in Colombia until the very end. We believe that this is going to happen in November. And of course, the last month, we are not going to price this in, but we believe that we will be posting about EUR 1.3 billion, just like in the prior fiscal year and new projects that, of course, contributing cash, such as the Itata Road or the I-68 and I-21 Motorways.

As for the losses coming from the assets sold, we are talking about EUR 170 million. That's our estimation for 2026, taking into account, however, that we are going to offset this amount, thanks to the projects that have been awarded to the company over the past months.

And as for the question concerning the Water division, Pedro will answer that.

Well, we continue to remain right on course. This quarter, that was slight percentage fall, but we are now commissioning some projects we have been awarded such as the Antofagasta project. And therefore, EBITDA margin will be around 21% to 22% in that division.

And since we are growing and as we showed during the presentation, we are now focused on carrying out some key projects, for example, concession projects in Chile and Australia, respectively. Based upon this growth, we aim at keeping on growing strategically within this division, and we are not considering to sell the Water division partially at all.

Thank you very much, Miguel. Do you have any further questions?

No, that's all. Thank you very much.

There are no further questions from the conference call. Now we are going to read aloud the questions received through webcast. [indiscernible] asks whether we can give some color as to dividend for next year for shareholders. Okay, we're going to answer in just a moment.

Under our strategic plan, we said that we're going to distribute EUR 225 million between 2025 and 2028. Therefore, next year, we are going to increase our dividend year-on-year. However, this decision is to be made by the Board of Directors when the time comes, and this is going to be submitted for approval at the GSM. Actually, it should be 2024-2020 -- 2025-2027 rather.

Filipe Leite asks whether we can give more details as for the provisions of EUR 50 million in terms of traffic for Q3 and whether we should expect more provisions in Q4 or in early 2026. The second question is whether the construction backlog that we have reported on includes anything about the Messina Bridge project or not.

We are going to answer in just a moment.

Filipe, as for provisions, this is a technical issue, an accounting issue. We have been awarded for projects from day 1, you begin to receive some revenue, but you cannot amortize anything that you have not invested in yet. So right now, we are allocating provisions to these projects, the I-68, Itata project and the I-21 project.

These projects will become operational within 2 or 3 years when amortization will take place in our accounting records. So provisions will be kept in 2025. However, this corresponds to amortizations that will take place once investments are made.

Filipe, let me add that the construction backlog does not include the Messina Bridge project. The construction backlog has risen by 15%. In Attachment 32, we list other concession contracts that are included in the concession backlog but have not been included in the construction backlog yet because actually, they are included 2 months later.

The next question is by Julius Nickelsen from Bank of America. The first question is the following. Concerning the rating, we have been awarded the investment-grade rating from Morningstar. Are we working with Moody's and Fitch or not? That's the first question.

And the next question is about the A22 project in terms of investment.

Next, he asks whether we can provide any estimate as to net debt -- net recourse debt at the end of the year once we have collected the funds from Colombia.

And the fourth question is whether the complementary incentive plan that the Chairman and the company's management have will be paid in Q4 or whether it's going to be postponed until 2026. Julius, we'll get back to you in just a moment.

[Foreign Language] Okay, Julius. We are working with other rating agencies. Each rating agency has its own methodology. We are making progress to engage with other agencies. And now that we are about to close our financial statements for 2025, we believe that we are going to complete some of these conversations we are engaged in. We'll see what plays out.

As for the net recourse debt, once we receive funds from Colombia, this debt will be reduced considerably. We are not concerned about this debt anymore, EUR 20 million more or less is not relevant. Taking into account that Q4 is normally strong in terms of working capital, in terms of construction and we are also estimating some significant investments in assets, equity, we believe that this debt, however, will be reduced markedly. The answer is yes.

As for the A22 highway that runs around 313 kilometers, we are talking about EUR 2 billion in terms of investment. And as for the incentive plan, it's going to be paid next year.

Okay. Thank you very much for all the questions. And now let me once again turn to Pedro Siguenza, the CEO, for some closing remarks.

If there are no further questions, thank you very much for attending this earnings call. We wish you farewell until next time, and have a very nice afternoon. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]