Accelleron Industries Aktie

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Now back to you, Daniel.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Market share on different OEMs.

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

Yes. Valentina from the phone line?

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

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

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

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

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

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

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

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

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

No. Absolutely, no.

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

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

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

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

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

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

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

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

Next question comes from Uma Samlin, Bank of America.

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

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

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

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

Is there a meanwhile new questions from the room?

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

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

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

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

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

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

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

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

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

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

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

The tariff rate or the tax rate?

Income tax.

The cash payment of...

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

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

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

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

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

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

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

I'm not sure I fully understood the question.

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

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

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

You mean on the gas compression side?

Yes.

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

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

That's group or to the division?

Excuse me, that one we didn't understand.

Can you repeat it again?

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

Of the group's revenues.

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

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

Next question comes from William Mackie from Kepler Cheuvreux.

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

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

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

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

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

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

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

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

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

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

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

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

Ladies and gentlemen, welcome to the Accelleron Half Year Results 2025 Webcast. I am Matilda, the Chorus Call operator. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Michael Daiber, Head of Investor Relations. Please go ahead.

Hello, everyone, and a warm welcome to the Accelleron Half Year Results 2025 Investor and Media Webcast. Thank you for joining us today. Today, we'll walk you through our performance in the first 6 months of 2025, provide a detailed financial review and share our updated outlook for the remainder of the year. We'll also discuss how we are navigating current geopolitical challenges, including the new U.S. tariff on Swiss goods and how our strategic investments are positioning us for the long-term growth. Before we dive into the results, please take a note to the safe harbor statement.

This presentation contains forward-looking statements based on current expectations and assumptions. These statements are, of course, subject to risks and uncertainties. All figures presented today are in U.S. dollars and prepared according to U.S. GAAP.

For definition of non-GAAP financial measures, please refer to our Investor website. The link is also provided in the presentation.

After the presentation of Daniel and Adrian, there will be a Q&A session. You will be able to ask questions via the chat tool or the telephone.

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

Michael, thanks for the introduction. And good morning, and welcome, everyone, also from my side, and thanks for joining. So besides Michael Daiber, you already heard and our well-known Head of Investor Relations. I'm, as usual, joined by Adrian Grossenbacher, our Chief Financial Officer. And I would say let's move. Here is our agenda for the next hour.

I will start with the key highlights of the first half of the year. Adrian will then take over for financial review of H1 2025. I'll return to give you an update on the Marine and Energy markets and an outlook here, including comments as already mentioned by Michael on the current situation with U.S. tariffs and the updated guidance. And we will conclude with a Q&A session, as Michael mentioned already and managed by Michael.

So then let's begin the move on to the highlights. So in the first 6 months of '25, we continued on our growth trajectory, achieving high revenue growth and strong profitability. Revenues in the first half year reached USD 608 million, increasing by more than 20% year-on-year. The operational EBITA was up by almost 21% to USD 155 million, and the corresponding EBITA margin increased by 0.1 percentage points to 25.5%. So the net income grew by almost 30% to USD 115 million, and the free cash flow conversion stood at 70% compared to 34% in the same period of last year.

Looking at the big picture, the markets have not pulled down in the first half year despite geopolitical disruptions, and we've been firing on all cylinders to meet the demand.

So what propelled our growth in the first 6 months of '25. Well, the Product business was a key driver, but not only the Product business grew by more than 35% and the Service business by more than 10%. The Product business growth even surpassed Service business growth in absolute dollars. And our impressive revenue growth was driven by further gains in market share for turbocharger. This is especially true for merchant marine and data centers. As well as strong market demand for Marine Services, especially retrofits and for backup balancing and prime power applications.

We also saw sustained high demand for fuel injection systems and above average orders in the rail sector. The demand for gas compression remained in line with expectation. That 10% U.S. tariffs that was in effect for Switzerland on other geographies impacted the half year results only marginally. And here, we are essentially talking about April to June here.

However, we expect the current 39% tariff on Swiss goods, in effect since August 7 to impact our EBITA margin in the second half of '25. More to this topic a little bit later in the presentation.

On the next three slides, I'd like to highlight the role of retrofits in Marine Services, our fuel injection program in Italy and the continued success of our high-speed turbochargers for backup power solution.

So let's take a look first at retrofits. As we explained in the past, decarbonization increases market interest in upgrades and retrofits. We differentiate between upgrades and retrofits, turbocharge upgrade effects as it name implies only the turbocharger, while a retrofit also includes besides the turbocharger, other components and systems. For example, the main propulsion engines.

Hence, the scope of a retrofit tends to be larger and consequently, the technical efficiency improvement potential for the ship bigger. Demand for these retrofits picked up significantly in the first half of '25, driving growth in the Marine Services. There are two main types of retrofits we are offering, Engine Part Load Optimization on the left side or in short, EPLO, and FiTS2 on the right side.

I will not bother you with the technical details of these solutions. But what they have in common is that they provide tangible fuel savings and reduce greenhouse gas emissions immediately for marine engines operating at varying loads and speeds.

Other advantages of both EPLO and FiTS2 are easy implementation, easy operation, and easy maintenance. They are also commercially viable for our customers. They are considered low investment, high returns, retrofits. While the reduced fuel consumption positively impacts the shipowners bottom line, to reduce emissions support regulatory compliance, which very often means as well a commercial benefit due to the lower emission charges and/or penalties. So it's no wonder retrofits are gaining traction.

Our revenues from upgrades and retrofits, including from projects on large container vessels grew by 60% in the first half of 2025 compared to the first half of '24. Overall, the annual upgrade and retrofit revenues in the past years were between USD 20 million to USD 25 million per year.

I would say, moving on to the next slide. As you know, besides turbocharger, we also offer future fuel ready fuel injection systems. And fuel injection plays a key role in decarbonizing the maritime industry, and we see high demand for advanced dual fuel systems, which can inject two different fuels. The market demand is higher than what we can meet with our current capacities. To meet the high demand, we have launched an $80 million multiyear investment program in Italy, consisting three pillars.

The aim is to expand production capacities and strengthen our technological leadership in fuel injections. So on the left side, the first pillar of this growth strategy is the organic capacity increase at the existing OMT factory in Turin. Investments in new machinery have already been made, and we plan to hire around 150 new employees within the next 3 years.

Another important pillar is the construction of a new technology center in Turin by mid-2028. Construction for this $27 million project is well underway. The technology center, by the way, in walking distance from the existing factory will offer more than 1,200 square meter for testing, assembly and prototype production as well as new space, office space, for about 100 employees.

This will provide OMT with the necessary space for increasing R&D activities in new fuels such as ammonia and methanol. Crucially, it will also free up additional space in the nearby factory for further planned capacity increases in '27 and '28.

The third pillar is of the growing strategy is based on the acquisition of OMC2 last summer. The acquisition brings OMT additional production capacities. We are using free space in the factory, and investing in new machinery. In the medium term, an extension of the factory building is also planned to be completed by '28 with the goal of tripling the production of the current OMC2-factory by '29. You can see a rendering of this factory extension in darker gray in the image on the right side.

With our growth strategy consisting of these three pillars, we are well positioned to meet the increasing market demand. This year already, the measures we have taken so far, including the acquisition of OMC2 allowed us to increase our output by 30% and to ensure the timely customer delivery of fuel injection systems. Our goal is to double the revenues from fuel injections to USD 150 million by '29 compared to '24.

Let us move now to another product of ours, which is in very high demand the TPX high-speed turbocharger. The continued success story of the TPX44-high-speed turbocharger used for data centers and to protect other critical infrastructure like hospitals remains impressive. Developed in close collaboration with an engine manufacturer and launched in 2019, it has quickly gained significant market share in the diesel market.

Our dedicated product for standby generators of substantially higher power density, resulting in a lower CapEx per kilowatt compared to competitor solutions. Furthermore, the development of the second-generation product is already underway and promises even greater advancements. We are well on track in '25 to set new records again in both production volumes and sales.

As a reminder, in '24, we delivered 2,600 units of this model. This was already 100% growth versus '23 with 1,300 units delivered. In the first 6 months of '25, we already delivered 3,900 units. That's 3.5x more than in the same period of last year when we delivered 1,100 units. So many more data centers requiring turbochargers for backup power will come online in the years to come.

The big question is how many? One reason study estimates that data center capacity as defined by electrical power demand will more than triple by 2030, compared to '23. And this is only the low-range scenario, which would correspond to a compound annual growth rate of 18%. This is not to say that demand for our turbochargers will increase at the same rate but it gives you an idea of the dynamics in these markets. And we are well positioned to continue to benefit from the data center boom.

And with those remarks, I conclude my first part, and I will now hand over to Adrian for the financial review. Adrian, it's yours.

Thank you, Daniel, and a very good day as well from my side. Let us now take a closer look at our H1 2025 financials, starting with the group performance. As we already communicated in July, half year revenues reached $608 million or plus 20.3%, respectively, an additional USD 102.5 million year-on-year. At constant currency, we grew by 20.1%, which is why we increased our guidance for constant currency growth for the full year to 16% to 19%, up from 4% to 6% earlier in the year. Organically, we recorded a growth of 18.5%, largely volume-driven.

Our expansion was driven by persistent market share gains in turbochargers and the robust market demand for Marine Services, particularly retrofits, as Daniel already explained. Additionally, there was significant demand for backup balancing and prime power applications. We also experienced consistently high demand for fuel injection systems and above average orders in the rail sector.

Fuel injection contributed USD 46.9 million to total revenues in H1. Operational EBITA increased by 20.8% compared to the same period of last year, reaching USD 154.9 million. The operational EBITA margin rose by 10 basis points to 25.5%, which is very solid in view of the strong product business growth, strategic investments, for example, in Italy and in our digital capabilities and additional costs along the value chain.

The next slide depicts the performance of the Medium, Low Speed segment. Overall, the Marine business performed strongly. We further increased our market share in new builds and demand for retrofits and upgrade services picked up significantly. We also continue to expand full cover service agreements reinforcing them as an important strategic pillar to further increase service penetration around the world.

As already mentioned by Daniel, demand for fuel injection systems was high, too. In the power plant market, new build activity in the U.S. from medium speed, power generation has picked up again. The first project for larger power plants with Accelleron turbochargers have been contracted. Overall demand for gas-fired power application increased across multiple regions.

The segment revenues increased by USD 73 million or 18.9% to USD 458.8 million. The incremental revenue contribution by OMC2 and TNM amounted to USD 8 million in the first half of 2025. Operational EBITA increased by USD 19.1 million or 19.7% to USD 116.2 million compared to the previous year. The margin increased by 10 basis points to 25.3%.

Here it is important to highlight that the operational leverage resulting from the additional life cycle volume was absorbed by strategic investment and, to a lesser extent, impacted by additional costs along the value chain.

Let us now have a look at the High Speed segment. Revenues in the High Speed segment increased by USD 29.5 million or 24.6% to $149.2 million compared to the first half of 2024. We continue to seize opportunities in data center back up and increasingly prime power solutions, particularly in the U.S. While demand for gas compression remained in line with expectations.

Operational EBITA increased by USD 7.6 million or 24.4% to USD 38.7 million, again compared to the prior year. Due to the fast-growing new business and additional costs along the value chain, the operational EBITA margin minorly decreased by 10 basis points to 25.9%.

Let us now go through the bridge from operational EBITA to net income to highlight a few specific effects in H1. As always, we start here on the left-hand side, operational EBITA amounted to USD 155 million. Next to it, you can see the one-off and non-operational cost which amounted to USD 9 million compared to close to USD 10 million in the same period of 2024. Of this USD 9 million, almost USD 5 million can be attributed to a temporary unrealized FX loss resulting from the strength of the Swiss franc and timing differences between payables and receivables. The remaining USD 4-plus million were linked to residual buildup activities, M&A and operational pension costs.

Moving on. We had acquisition-related amortization cost of USD 4 million, including a charge for phasing out the OMC2 customer base. Consequently, income from operations amounted to USD 142 million. The finance and interest expenses amounted to net USD 1 million.

Finally, we have the income taxes, which amounted to USD 28 million, and the tax rate stood at 19.6%, which is fairly similar to the one of H1 2024. And with all of that, you get to a net income of USD 115 million, 29.5% higher than in the first half of 2024.

Lastly, let's have now a look at the free cash flow. The cash conversion in the first half of 2025 stood at a solid 70% compared to 34% in the first half of 2024. The change in net working capital and the other was mainly due to an increase in volume-driven receivables and normalization of trade payables and increased income tax accruals.

Further down, the increased capital expenditure reflects our investments in the fuel injection business in Italy and continued investments in the Swiss and Chinese factories.

We expect our capital expenditure to increase further to approximately 4% to 5% of revenues this year. We are currently not only investing in expanding the capacity of the Fuel Injection business, but similarly in our Turbocharging business.

Two key investments are the upgrade of our intra logistics in the Baden factory as well as a new small turbocharger testbed to support future innovation and growth. The line Other reflects payments of USD 3 million to former OMT and OMC2 owners.

So let me conclude. Despite Accelleron's impressive growth, free cash flow generation increased by $50 million to USD 81 million in H1. Great accomplishment.

With this, I'm now handing back to Daniel.

Thank you, Adrian, for giving us more detailed insights into our strong financial performance in the first half of '25. So now it's about looking forward. So I will continue with the market update and outlook for 2025.

This is what we showed in March 13. This is the outlook for '25 and our business, as I said, on status on the March 13. So you see most of the arrows pointing up. We have one arrow being flattish, the medium speed. So let's click on this now, and let's see what -- how we see the outlook now for this year.

So two arrows that have pointed sidewards are now pointing up. So the cruise ship -- cruise ship & ferries and the medium-speed power. And two arrows, the high-speed gas and the backup power are now pointing up even more. Those four arrows are highlighted in green to mark the improvement in our outlook. All other arrows remain the same.

Compared to our expectation in March, we see a much stronger demand now for maintenance as well as for upgrades and retrofits [indiscernible]. We also are quite successful in signing service agreement with cruise ship operators. So we expect both upgrades and retrofits and service agreement to drive top line growth in the cruise ship segments.

On the Energy side, we expect the demand for prime power application to increase for both high-speed and also medium-speed engines. While we have already been optimistic about the high speed. We now observe that the demand for medium-speed engines for power generation is finally picking up, too. And for the backup power application, we have been optimistic all along. But seeing the data center market dynamics and signals from our customers, our outlook here is even more bullish.

In summary, everything is trending upward. Our core markets remain resilient despite ongoing geopolitical uncertainty, which brings me to the next point.

Let me share some thoughts on the topic. I'm sure you're all keenly interested in. The new 39% U.S. tariff on Switzerland, meaning on Swiss goods imported in the U.S. The tariff has been in effect since August 7, '25. Up to that date, the tariff was 10% in line with the tariff for many other countries and geographies, which only marginally affected our profitability.

So the current 39% tariff effects will be more than 10% of our revenues, involving products with significant Swiss content shipped to the U.S. This tariff is much higher than what other marketplace currently face in other key geographies like Europe, Japan or Mexico. Under the current circumstances, we expect an impact on our profitability for '25.

We are, therefore, lowering our operational EBITA margin corridor by 100 basis points compared that to what we are originally guided. But we are determined to secure our growing U.S. business by reviewing our pricing strategy, reconfiguring value chains and enhancing operational efficiency to maintain our competitive advantage and to protect our profitability.

Having said that, let's look at the complete financial guidance for '25. As already announced in July, we expect to increase our revenues in '25 by 16% to 19% compared to last year, with stronger growth in Product business than in Service. The increased tariff on Swiss goods, including mitigation measures to maintain our competitive advantage led us to lower the operational EBITA margin corridor to 24% to 25%. The rest of the capital framework remains unchanged.

This brings us to the end of our presentation.

With that, thank you for your kind attention. We are happy to take your questions via chat or telephone. Michael Daiber, our Head of Investor Relations, will moderate the Q&A session.

Thank you very much, Daniel and Adrian, and welcome to the Q&A session. Please note that if we receive similar questions in the chat, we may combine them into one. And please kindly make sure to state your name and your affiliation wherein writing in the chat or asking the question on the telephone.

[Operator Instructions]

The first question comes from the line of John Kim from Deutsche Bank.

John from Deutsche. I'm wondering if you could give us some color on how you perceive your customers' abilities to -- ability to absorb these higher tariffs that we expect in H2? I understand you're reviewing your pricing strategy, but I'm interested to understand, as it stands today, how your base of contractual agreements works on pass-through on tariffs.

Okay. Thank you, John. Definitely an important question. And on the 1st August, when we were informed about the 39% tariffs, we more or less immediately informed our customers that we will raise prices. And since then, we had discussion with the customers, I mean, it's not that we are not allowed to increase prices, but it was also to see what do you have to do. Because in the end, we also want to make sure that they are able to absorb and move ahead and they are not too much affected on that one.

And look, in some markets, there's such a high demand and U.S. is a lot about power generation. You have heard about the increasing demand for medium speed but also high-speed power be it for prime power also for backup power. So they have definitely a very good position to pass on. I'm not in a position now to disclose, because we are still in a discussion with our customer, but they have a lot of power. And now it's about continuing our long-term relationship with them and finding a good solution that doesn't hurt them too much, but also doesn't hurt us too much.

And at the same time, since the 1st of August, we are also reviewing our options, how to reconfigure our value chain. With that, we mean how can we move some value add out of the Switzerland and move into areas where they enjoy lower than our 39%. And to be honest, that's almost most of the country on this planet that are lower, besides some countries that definitely are not in interest to move on.

So here, we also -- again, we are confident that there's enough mitigation potential to whatever finally sticks with us. We are able to substantially reduce over time. I hope that helps a little bit on the answer, John.

No, that's very helpful. As a quick follow-on, did you experience any abnormal demand towards the end of H1 in anticipation of these tariff increases? Any pull forward?

The short answer, no. It's not too easy to see that, but the demand is so high on all one and whether there was a slightly higher demand, because of the customer. But I would say at best, it would have been marginally.

The next question comes from the line of Daniela Costa from Goldman Sachs.

I have two questions. The first one is just regarding your statements on increasing market share on turbochargers. I guess the starting point was already very high. Can you tell us where does your market share stand now? And how can you win? Who do you win from, in which regions, any particular highlights there? And I'll ask the second one just right after.

Okay. Thank you, Daniela. Market share, as you correctly said, I think we were at around 40% when we separated from ABB, now we are closer to 50%, especially on the Merchant Marine. And so this is across the board for all Merchant Marine. I mean, we already mentioned, I think, last year that the new fuels are definitely of a big help. So new fuels, dual fuels, LNG, methanol, ammonia, where we are normally the first choice.

So you can assume that's across all the board, on all ships and especially with a strong focus on new fuels. So then it's clear that Merchant Marine is mainly Asia. Cruise ship is just picking up. Here, we have already also strong market share. And on the high-speed gas, we have an 80% -- close to an 80% market share, where we definitely see a strong growth as well is on the data center, because we started more or less with nothing.

In 2023, where we gained the first 1,300 units. And this year, already half year, we are at close to 4,000. So that's the data center piece, where we see strong growth.

The second question was related to like your comments on like what offsets the operating leverage. And you mentioned the increased, I guess, fixed costs for the capacity expansion. And you also mentioned value chain costs. And I wanted to ask on both, I guess, the full ramp-up of some of these new capacities only some years ahead of us. Do you expect these like under-absorption basically to carry on? Is this going to be a continuing headwind in the bridge for a little bit longer? And then, what are the value chain costs?

Yes, I can take that and allow Daniel. On the cost of the ramp-up, right, this is phasing in people, increasing the efficiency level. And as we keep growing, we need to bring in more people, right? So you have the teams which you phase in, those become more efficient, but you then have potentially a new team, a new machine, you're ramping up. So as long as we keep growing strongly, we would expect a certain level of headwind, but most probably that -- and we are committed to optimize that as well over the foreseeable future.

In respect to the value chain cost, this is -- there are different positions to it. One with the strong ramp-up of the demand. We sometimes have as well to rely on, let's say, suppliers, which are a bit more expensive than others. And we, again, focus there on ramping up as well, always our best source, but with this significant 30%-plus growth on the Product business, in order to deliver timing to our customer, we sometimes have to rely on, let's say, not the most cost-effective source.

Additionally, we have seen as well, and Daniel has highlighted, we had some minor costs for tariffs. These were two of the elements we wanted to highlight there.

What I would say timing-wise, the value chain, I would say, on the supplier side this year, marginally next year, while definitely on increasing the capacity in fuel injection might take a little bit longer. But also here, I mean, the big ramp-up is now in Turin, where we, I would say, from a people point of view, we have done already more than half. And there might be something -- there will be something still coming next year, but then that's, I would say, the first base on the ramp-up. And so I hope this helps you, Daniela.

Yes. So this year was the bigger hit on the headwind from the ramp-up? Or would it accelerate next year?

No, definitely not accelerating. No.

We now have a question from the line of Uma Samlin from Bank of America.

I have two, please. So first one is a follow-up on the tariff impact. I remember when we talked about the tariff to the U.S. before, that was mostly on energy -- on the energy side, it's mostly on OE. Is that the same with the Swiss tariffs? And also the, how long -- you talked about the mitigation assets, how long do you think that will take? Do you see the margins to return to the more pre-tariff levels in 2026? That's my first one.

The first one, I'm not 100% clear with the...

Full year impact on -- is this namely Energy and OE business.

Yes. I mean, what's the U.S. -- when we said it's about slightly more than 10%, and with that one, we mean Power Generation, not Marine. Because Marine Service, that's not part of the -- that's exempted from the tariff, so it can be moved to another port outside. So it's mainly power generation. It's data center, energy backup or now prime power, because of the weak grid, they have to strengthen the grid.

And the time of mitigation, look, we have no option. The challenge is definitely there's all moving targets. If the tariffs remain, then I would say we can get fast during the course of next year, the mitigation on that one. And then, I would say we are almost close back on cruising altitude. And we've -- if you find a good deal, as I said, we'll not -- definitely not take the bigger burden. When it comes to the customer, we are willing to participate, but we expect the customer to take the bigger burden. As already mentioned, they have a chance to pass it on to their customers, because their markets are really a seller market, not a buyer market for the time being.

That's super clear. My second one is on the data center opportunities. If I remember correctly, you already doubled your data center revenues this year, and I think you expect to somewhat double that next year as well. So how does that tariff situation impact the volume growth in data centers for you? And what's your expectation now?

As I already said, we are doing everything to secure our midterm business and that means also the top line. And that's why we are winning small hits this year. And on the profitability, just to reposition ourselves, make sure we secure the volume. And then, we will work on our value chain and also on efficiency to reduce, again, the impact on the profitability.

So as you said, in 2003 to 2004, we doubled, 2004 half year to this year, we have tripled. You know how much the growth will be next year that also depends on the platform we are on. And what we see, our OEM customers, they are all struggling with capacity. So I would say it's very much depending how fast are they able to ramp-up in and increase their capacity. So -- but the good thing is really, we are on the winning platforms that really gain market share in the backup power.

Thank you. Before having the next questions from the telephone, I will just take the opportunity to take questions from the chat. The first questions are from Yannik Ryf from ZKB. Question one is about Wärtsilä, that announced in the Q2 results that they secured data center orders in the U.S. 15 engines with 282 megawatts baseload power based on natural gas. Could this be a new area of growth for Accelleron in the future?

Yes. I mean, Yanik, 100%. It's not only for the future, it's already today. And we always said, the only power generation segment that was not really moving on is the medium term, medium speed, and that's now picking up. So -- and especially in the U.S., because the data center are requiring so much more demand, I mean, just there's now a pipeline of data centers that require about more than 130 gigawatts of additional power and they cannot be hooked up or they cannot start it, because there's not enough power. And so number one, the grid needs a lot of power.

Number two, the grid is not strong enough. So you have to build the power generation very close to the data center. And since gas turbines are sold out, now it's really -- the medium-speed powers are kicking in and taking a big share of that one, and that's where we are benefiting. And I expect this to stay here and for at least the next foreseeable future.

Second question is how much of the total revenue comes from retrofits? And where do you see -- what's the growth potential you see?

As I already mentioned in my presentation that these retrofits and upgrades, more or less mainly for Marine is about -- used to be $20 million to $25 million. First half year, we have seen 60% growth. Don't expect this growth to stay with 60%, but we expect the substantial growth from that one. If everything works fine, if the regulation kicks in, there's a chance that we might have something close to 10% growth on retrofits year-by-year. But that can swing around because what we had now in the past, very large shipowner customers, don't -- I can't name them, but they're now really upgrading their existing fleets, because they want to be ready.

What we have not seen so many medium-sized or small operators, because they don't have the deep pockets like the large ones. And they want to have security uncertainty that the regulation comes in and they need these upgrades. But as said, we are well positioned, they are low investment, high return. And that's normally the first thing what the customers are doing, get for this low-hanging fruit, and these are definitely the things we are offering here.

Okay. One third question. Are there updates on the medium-term guidance? Are the 2% to 4% revenue growth still accurate?

I can take this one. I think from memory, when we formulated our midterm guidance, we said this is in a low to no inflation environment. So this 2% to 4% is first and foremost volume. We continuously review our mid- and long-term business prospects. That's clear and if needed, update our guidance. For the time, we do not see there a need. But as said, we keep reviewing. What is clear short, midterm, we have very good growth catalysts outlined by Daniel. That's what we can state at this point.

Okay. One question from Rainer Weihofen from Finanz und Wirtschaft. What are your plans for capacity increases in turbocharger business?

I'll take that one. Yes, definitely now after the big investments we are doing now on fueling injection is, definitely -- also turbocharger is in the focus. So for example, we are investing here in Switzerland. We are investing in China. We're also building up together with the partner in Korea capacity. So -- but here, we have to say it's much easier to ramp-up, because we can work on shifts. We have enough technical capacity. It's very often just to run more shifts. And here we are in a good position, and we move already ahead in anticipation that the market will further grow.

But I think as already mentioned by Adrian that we see now is an increase in CapEx. We originally were between 2% to 3%. Now we tend to move more to 4% to 5%. That's also related not only the fuel injection, but also we have -- we see the need now on the [indiscernible] segment to further improve.

Good. Back to the phone.

The next question from the phone comes from the line of Sebastian Vogel from UBS.

I have three questions. I would ask them one by one. The first one is with regard for context, your current exposure or sales exposure to data center. Can you give us a sort of a ballpark figure there? What was that one in H1 '25? And how would that compare to the last year? That was my first question.

Good. Last year, we were double digit, I think slightly above $10 million. Now if you do the math now half year we were tripled, that you get a feeling. So we are talking clearly above, significantly above $20 million. We might get closer to $30 million.

Got it. Second question is, is there a chance to sort of try to split this number into what is the share that is coming from emergency power related to data center and what is related to baseload demand related to data center? Is there a chance to give an indication?

Yes. I mean, what the figures that I just mentioned, that's all emergency genset. So that's not normally for prime power or whatever normally power plants that are here to produce power. So they are here more or less a backup in case a normal power doesn't work. And all the rest is then related to prime power, balancing power, cycling power, whatever. But I think we already mentioned once we have about -- we have the Energy business, which we split up in 15% high-speed power than 15% in medium speed power and 10% in gas compression. So that you get a feeling on the high-speed gas power, this $30 million apart than the emergency genset. So you get a feeling how much is normal running power.

Got it. And the third question is with regard to the IMO regulation and the net zero fund. In that regard, do you see that as a potential material sales driver going forward, which can impact your top line already, for example, let's say, in late 2026? Or what are your views on this regulation and the potential impact on your business?

So probably, let's first talk about the new business. I mean, there's now -- the shipyards are pretty loaded. And I would say, for the time being, that's not driven by IMO or in anticipation of IMO, because we don't see that they build now new ships to reduce the age of the ship, because all the ships now coming online, there's hardly any scrapping. So everything that's built is increasing and they are fully loaded.

So from that, what we see is definitely that more and more ships are dual fuel. And that's definitely an impact of IMO or in anticipation of decarbonization on your fuels.

So here, I would say that IMO might help to keep the high loading on the shipyards. But as I said, they are anyway fully loaded until '29, almost 2030. So this will be beyond that we can keep this additional growth from new build.

On the Service side, I mean, the good thing is that I already mentioned, the large ship owners are already anticipating and investing. Some when they have done more or less their ships, the existing ships, that IMO would then help to keep this trend of upgrades and retrofits that medium-sized and small ship owners would kick in and take over the load.

So do I expect much more load? No, I would say -- I would say it helps to continue the growth.

We now have a question from the line of Charlie Fehrenbach from AWP.

Just to be sure, I'd like to come back to the pricing strategy. Did I got is correct? It means you will raise the prices to post the higher tariffs to the customs, but that you will accept a little lower margins to make customers happy as well? Is it about that?

Yes, Charlie, 100% right. I mean, we informed the customer originally by how much we will increase the price to protect us from the issued tariffs, and that was the base to discuss. So we definitely will increase the price. The question, will we increase the price to 100% cover the additional tariffs? That's now part of the discussion we have.

Okay. And this affects just 10% -- around 10% of your total sales, Switzerland, U.S. business?

Yes. Correct. Yes.

The next question comes from the line of Adrian Pehl from ODDO BHF.

Actually, just very quickly on tariffs, again, most, I think, has been said, but I want just to make sure or phrasing the question this way, if Mr. Trump wakes up tomorrow and all of a sudden, you only have 10% to 15% tariff. Would that ultimately mean you move back to your old guidance? Actually, I'm asking this because on the other hand, obviously, we saw some impact on your gross profit line coming from mix as obviously, fortunately, your new business is growing quite nicely, which nevertheless, however, means there should be some headwind to the group margin as service should have a higher margin here. So any thoughts on that would be helpful.

And a question linked to that, how can you react? Obviously, you already said that you're contemplating some relocations of the business, if that is prevailing. So should we assume that there could be an option actually to produce more from the EU, i.e., would that mean Italy probably not doing only injection in the medium term, but also components for turbochargers? Or how should we think of it? And then, I probably have one or two follow-ups.

I can take the first part and then hand over to Daniel for the relocation part, respectively, the reconfiguration of the value chain.

In terms of margin, you're right. Shall we call that impact or not? I mean, we are increasing our installed base, right, which is, per se, good news. So yes, it has a little bit of headwind then to the gross margin, but not the absolute profit as we still keep growing. And as I said, we keep as well investing into various strategic pockets and the capacity as such.

In terms of tariffs, I think we all know it's a volatile -- or there are volatile times. It is important that we stay agile and adapt to the latest situation. What we currently have at hand is reflecting the current state of tariffs. And that's what we have factored in, not more, not less. So the answer evolves to reverse. Yes, then one would have upside potential, but I think it's far too volatile to do any guessing. We have taken what is the current state, and that reflected that accordingly.

And with this, over to you, Daniel, then for the relocation value chain question.

As I said, I mean, as you pointed out correctly, things can change daily. But we now assume this 39% are here to stay. And the other countries where our incumbents are, they are benefiting from that one. Now if things are changing, we will review again. What we are doing, and that's why we don't only have one option. That's why I don't want to go into detail what -- where we might move the value add and whatever.

Here, we have different options and we view and some are very fast. They might not have the biggest potential. Some might take 1 or 2 years that have more potential, but needs more investment. So we are carefully watching them. And definitely we need to have more certainty, but I think the one we have now is an option on the table, and we might be able to position in the near future. They are more robust. But again, if Trump now puts us on 0% tariffs and euro to 40% is because of digital tariffs or whatever.

I mean, life is exciting. Sometimes I wish it would be differently exciting. I mean the market is great. And this is just something that keeps us a little bit busy, and it'll be more busy than normal. And we will react. Again, we have a good footprint globally with also our service station that can also be used for anything. So I think we have good option on the table. We move and if Trump wakes up tomorrow, and we'll see.

But again, it's not only the Swiss Service. We always have to compare us with the tariffs, our incumbents enjoy or not enjoy. You see, it's a relative gap. And as I said, the gap is a little bit too much. We can't just push through. I mean short term, we could push through, because it takes 1 to 2 years to replace us on the engine.

But we are now setting more or less the future. I mean, we can play short term, we gain -- we keep that one without adjusting price and not doing anything. But in 2 years, we would see the hit. So please bear with us. We have some option on the table, and we will decide then. And if Trump decides differently, we'll review again.

Right. I will be with you, I promise. So two housekeeping ones. Actually, on the adjustments. So if you want to the delta between reported EBIT and operational EBITA, which was actually a bit higher in the quarter than I thought. Just was curious to hear any thoughts how that will develop in the second half.

And another question is on translational FX. I mean, obviously, you already pre-released and I was surprised to see that the effect on currency was nearly non-existing in H1. But I guess, there must be some impact or otherwise, am I wrong here, so that you have different currency movements that may not be, let's say, if you want so, a tailwind for reported P&L numbers.

I mean, let's start with the adjustments. And obviously, you need to understand that we do not and cannot guide on this. As we see there basically a normalization, Nevertheless, a big position was basically the unrealized FX coming from the approved strengthening of the Swiss franc, respectively, the devaluation of the dollar position.

And there, I would say, assuming rates stay stable, that this would at least not grow, respectively, roll back into the operational results. I think that, is as much as, I can say in terms of residual buildup activities, we consciously called it residual, because it's really ramping down and that chapter to be closed, doesn't mean you do not have potentially the new topics to come. We are looking, for instance, into an ERP transformation on the Swiss side, but that's over the midterm.

So I can highlight namely the FX piece, which resulted from the depreciation of the dollar, the upfront one. In terms of translation effects, you are correct, constant to nominal for the time, it doesn't show a big gap. Nevertheless, we do have certain plus and minuses, which for the time have offset. Assuming, again, stable rates and not here to interpret the future in terms of FX. Nevertheless, we would see on the current FX situation that gap widening definitely that there will be a translation difference in our H2 numbers and consequently as well for the year.

Okay. And very lastly, before I jump back into the queue. I dare to ask, I mean, usually, it's not been a topic you have been very bull on. But just to give us an idea, and I'm very grateful for some volume numbers that you have been providing in the presentation. So in general, maybe on a more higher level, how should we think of your pricing capabilities and the strong growth that you had? Is it like I don't know, 2/3 is coming from volume, restaurant pricing? I mean, pricing must be on your side, given the markets are so dynamic -- or how should we think of -- how should we think of this in general?

Usually, let us take the 18.5% organic growth, which is constant without obviously the acquisition effect. And there, we can say that we are close to 3% is pricing, thereof close to 2% really increasing prices while 1 minus percent is basically the indirect effect of invoicing in Swiss franc for example. Consequently, we are talking about roughly 15% of volume and the rest as said, 2/3 direct pricing, 1/3 indirect effect going economically through the Swiss franc. I hope this answered a bit of like.

Let's continue with one question from Chat tool from Dominik Pross from VP Bank. With regards to the net leverage rate of 0.8, which was down from last year, can we expect net leverage for the full year, reaching the lower end of the midterm target of 0.5 to 1.5? And if so, would we have to expect to see higher distributions to investors, dividends or buybacks? After all, in the absence of an acquisition and if market should continue to be as strong as 2025, would you not otherwise from -- or go below the 0.4 in the next -- in the near-term future?

I think first and foremost, we remain committed to the framework we have been reemphasizing and sharing with you. In respect to the net leverage, you're right, it came down by 0.1 turn from H1 '24 to '25. We sure usually expect a good cash conversion in H2. Nevertheless, yes, you need to earn the dividend at the end to distribute it then in H1 of the following year. Ultimately, we remain committed to a stable to growing attractive dividend first and foremost.

And secondly, if there is excess cash, which we do not have currently and there is no M&A that the share buyback is definitely a viable option, an instrument, we would make use basically.

Anything?

Yes, one more question from the phone queue.

We have a follow-up question from the line of John Kim from Deutsche Bank.

I wanted to spend a little time to get a little more color on kind of the shape of the U.S. market. I know you've seen very strong growth there. But what I'm interested in is what sort of behavior you're seeing out of clients on final investment decisions on the larger projects. And if you could comment on your distributed businesses as well. I understand you have exposure to kind of fracking and gas compression.

Good. I mean, as I already said, our -- I would say, onshore U.S. business, it's power generation and gas compression. If you take a look on power generation, it's really -- it's all depending on the capacity. So -- there's huge investments already when you read any paper. The biggest bottleneck to build a new data center, I think it's not NVIDIA to get the semiconductor. It's really about getting the power. And so we know that our customer is investing a lot in increasing their capacity, either in the U.S., but also their suppliers from Europe to the U.S. So -- it's really about the demand is here. It's all about capacity to provide all the electrons to run the data center.

Gas compression. You know the history, I mean, we had a very strong year in '23, but then we realized a big portion of this growth was not directly reacted to the demand. It was more inventory at the OEM also, but also at their distributors. That's why we saw a slight dip last year. They are just adjusting the inventory to a normal level.

And now we see more or less a kind of similar growth to last year or similar level to last year, but the dip last year was more in the second half, but we see now a clear uptick in the second half for the gas compression. That's why it was also shown positively in that one. We see a good growth.

So here, again, it's very much depending really on the capacity of the OEMs to deliver and the demand for data center and the corresponding demand for power generation is huge.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Daniel Bischofberger, CEO, for any closing remarks.

No. Thank you. As I said, it was an exciting first half. We are confident for the second half definitely on the top line. And the good discussion we have already with the customer, I'm sure we find a good solution that's acceptable for both and also securing our long-term growth. And we will work on the mitigation, because definitely pricing means some adjustments helping the customer and some moving things out of value-add in Switzerland.

So I'm confident it might not happen today. But midterm, I see the chance. Definitely, that's always subject to changing regulation and new tariffs around the world, but I'm confident, and I'm really thankful for the great work of all our people helping there and being agile.

And thanks for all your good questions. And I think I wish us all a good day. Thank you.

Thank you. Bye.

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