Gerresheimer Aktie

Ladies and gentlemen, welcome to the Publication Preliminary Q3 2026 Results. I am Sandra, the Chorus Call operator. [Operator Instructions] The conference is being recorded. The presentation will be followed by a Q&A session. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it is my pleasure to hand over to Mr. Niels Fehre, Corporate Investor Relations. Please go ahead, sir.

Thank you, operator. This earnings call is based on preliminary figures for our third quarter of 2026. Wolf Lehmann and Achim Schalk will explain the quarterly performance and provide an update on the company's development. Let me please remind you that the disclaimer in our preliminary Q3 2026 slide deck applies throughout this earnings call. I will not read it out loud. You can download the slide deck from our website under Presentations in the Investor Relations section. Now let me hand over to Wolf for the preliminary Q3 results and starting with the highlights of the quarter. Wolf?

Thank you, Niels. Please turn to Page 3 with our recent company highlights. We continue to execute our transformation road map step by step. In third quarter, we achieved a big milestone by closing the sale of Centor. But before we dive into this, let's start as usual with the business performance. Third quarter revenue increased by EUR 46 million year-on-year to EUR 605 million, with all 3 segments contributing to this top line growth. Adjusted EBITDA was EUR 103 million, broadly stable year-over-year and quarter-over-quarter for the total company. We'll go into more detail where we grew and where we work on improvements a few pages later when discussing the segment results.

As in previous quarters, we maintained a strong focus on cash management, including inventory with a corresponding negative impact on profitability. Looking into the last quarter this year, fourth quarter, cash generation will remain a key priority for us. However, at this stage, we do not anticipate a significant further reduction in inventory levels in fourth quarter. In addition, as in every year, we expect certain settlements under customer and supplier agreements to be recognized in fourth quarter, providing a positive contribution to both EBITDA and cash flow. Based on our current visibility for the remainder of the year, we expect to come in within the range of our full year guidance.

On the divestitures. As mentioned, we successfully completed the sale of Centor on October 1, only 2 months after signing of the contracts. The closing preparations for the sale of Primary Packaging Plastics are progressing well. As a result, the transaction is currently expected to close already in the first quarter of 2027. Having closed Centor, we also made further progress in our discussion with our banks. We will use the proceeds to lower our debt until the end of this fiscal year and repay the promissory notes maturing in 2026. Post closing Centor and Primary Packaging Plastics, our leverage reduces to around 3x and puts us in a good position for a fulsome refinancing.

On transformation, we continue to execute our transformation program initiative by initiative. Example given on footprint optimization, we have already completed the closure of Chicago Heights and are focused on the merger of our Forest Grove facility into Morganton. On SG&A, our SG&A cost reduction program progresses in line with our expectations, and we're heading towards a much leaner structure in 2027. Lastly, I would like to emphasize that our grow, fix and sell portfolio strategy remains unchanged and continues to guide our capital allocation and portfolio decisions.

Before discussing the quarter in more detail, please turn to Page 4. As usual, we start the presentation with the quarterly allocation relating to the previously communicated full year 2025 adjustments. The adjustments to third quarter 2025 were limited. Revenue was basically unchanged, while adjusted EBITDA increased by approximately EUR 3 million compared with the previously reported figures. The BaFin investigation remains ongoing. We continue to cooperate fully with the authorities and remain committed to accurate, transparent and high-quality financial reporting.

Please turn to Page 5 for our third quarter performance. Revenue increased by EUR 46 million year-on-year to EUR 605 million. All 3 segments contributed. Compared to the previous quarter, revenues increased by EUR 26 million. Adjusted EBITDA was EUR 103 million, EUR 3 million below the adjusted prior year figure and roughly stable quarter-on-quarter. The year-over-year development was affected by our continued inventory rigor. We reduced inventories by EUR 20 million in third quarter 2026, burdening this year, compared with an inventory build of EUR 14 million in the prior year quarter, affecting EBITDA, obviously, positively in third quarter 2025. We'll explain more details by segment on the following pages.

Free cash flow before M&A was negative by EUR 20 million. The year-on-year development reflects negative working capital movements, mainly driven by less reverse factoring impacting payable as well as a higher amount of exceptional items, amongst others, advisory costs on stabilization, financing, transformation and our divestitures. Positive effects from a further reduction in inventories and less net CapEx could not fully compensate for that. I will explain more details on the cash flow walk page. As stated earlier, we expect to generate positive free cash flow before M&A in fourth quarter and come in within the guidance range for the full year.

Before we continue with the segment details for the third quarter, please note that the figures discussed today are preliminary results. As such, they still include Centor and Primary Packaging Plastics and have not yet been adjusted in accordance with IFRS 5. Furthermore, as highlighted previously, we perform quarterly impairment tests to ensure that asset values appropriately reflect current business conditions, including restructuring measures with any resulting adjustments recognized in the final quarterly financial statements. Final second quarter or first half, we plan to publish in November and final third quarter in December.

With that, I hand over to Achim for the performance of Containment & Delivery Systems and Primary Injectable Solutions. Achim, please?

Thank you, Wolf, and please turn to Page 7 for Containment & Delivery Systems. Containment & Delivery Systems delivered another strong quarter. Revenue increased by EUR 27 million year-on-year to EUR 330 million. The continued ramp-up of our Peachtree site remains an important growth driver in Medical Devices. Based on the strong momentum we are seeing, we expect Peachtree's revenue to more than double in fiscal year '26, reaching a triple-digit million euro level.

The growth in Medical Devices was complemented by a positive contribution from Primary Packaging Plastics, where sales pricing actions took full effect in Q3. Adjusted EBITDA increased by EUR 13 million to EUR 77 million with the margin improving to 24.5%. The improvement was mainly supported by the higher contribution from Medical Systems as well as efficiency measures implemented in Advanced Technologies.

Please turn to Page 8 for Primary Injectable Solutions. Primary Injectable Solutions delivered a mixed picture. Segment revenue increased by EUR 9 million year-on-year to EUR 123 million. Syringe Systems was the main growth driver, while Tubular Glass revenue was flat. Adjusted EBITDA reached EUR 15 million, which is EUR 4 million below the prior year quarter. The strong improvement in Syringe Systems was more than offset by continued weak profitability in Tubular Glass.

Encouragingly, performance in Tubular Glass stabilized quarter-on-quarter. Nevertheless, profitability remains clearly below our expectations. Our priorities for Tubular Glass, therefore, remain unchanged, footprint optimization, operational excellence and SG&A savings. Across Primary Injectable Solutions, we are also actively optimizing our product portfolio to enhance profitability, strengthen our market position and support sustainable growth. Wolf, back to you for Moulded Glass.

Thank you, Achim. Please turn to Page 9. Moulded Glass revenue was broadly stable year-on-year at EUR 169 million. Stable pharma and food and beverage revenues and slightly higher cosmetics revenues offset the impact from the closure of Chicago Heights. Adjusted EBITDA declined by EUR 12 million to EUR 17 million, resulting in a margin of approximately 10%. Continued inventory rigor was again a major driver of the weaker profitability. We reduced inventories by EUR 10 million in third quarter of this year compared with an inventory buildup of EUR 14 million in the prior year quarter, affecting EBITDA positively in third quarter '25 and, obviously, negatively in third quarter '26. Overall, it was driven by a roughly EUR 25 million year-over-year inventory swing.

Excluding these movements in inventories, current performance remains broadly consistent with an annualized EBITDA run rate of approximately EUR 80 million to EUR 85 million. The focus has not changed. Similar to Tubular Glass, the new Moulded Glass leadership team is driving rigorous restructuring measures to improve operational performance. Footprint optimization, operational excellence and SG&A savings as well as product portfolio optimization is the focus to improve competitiveness and profitability.

Let us now turn to cash flow on Page 10. Free cash flow before M&A amounted to negative EUR 20 million in the third quarter. Net working capital was broadly neutral. We reduced inventories, as explained, by EUR 20 million, while receivables increased by EUR 6 million, in line with the higher business volume quarter-over-quarter and payables declined by EUR 50 million. Tax and interest payments developed as expected. The EUR 32 million other are mainly related to our adjustments, as mentioned, and include, among others, cash out for the advisory cost around stabilization, financing, our divestitures and our transformation program. Net CapEx amounted to EUR 56 million, EUR 7 million below the prior year quarter and included in that figure are selected investments into growth and productivity projects.

Please turn to Page 11 for the financing update. Our net financial debt at the end of third quarter of this year is around EUR 2.1 billion, and our liquidity is EUR 208 million and fully sufficient to run our business. The cash in from Centor sale is not yet included in these numbers as closing was 1st of October, the first day of the fourth quarter. Excluding transaction costs and taxes, approximately 90% of the gross proceeds from this transaction will be used for debt reduction. This will enable us to repay close to EUR 700 million of debt by the end of the year. Our focus continues to be on the -- on further reducing debt through closing of the Primary Packaging Plastics divestiture, which drives our leverage down to around 3x.

Please turn to Page 12 for our financial calendar. We expect to publish our final half year financial report at the end of November and our final third quarter quarterly statement in December. We intend to return to the regular reporting timetable with the publication of our 2026 annual report in March 2027. On the right-hand side, you see our upcoming investor conferences at which we would very much like to meet in person and update you on our latest progress at Gerresheimer.

Achim, over to you for our closing remarks.

Thank you, Wolf. Let me close by summarizing our priorities for the coming months. First, we remain focused on delivering a strong fourth quarter and completing fiscal year 2026 within our guidance range for revenues, EBITDA margin and free cash flow. Second, we are executing our portfolio transformation. We successfully completed the sale of Centor within only 2 months after signing, demonstrating our ability to deliver against the milestones we have announced. Our full attention is now on completing the divestiture of Primary Packaging Plastics. Closing preparations are progressing well, and the transaction is currently expected to close already in our fiscal Q1 2027.

Third, the proceeds from these transactions will accelerate the reduction of our financial debt. Following completion of both divestitures, we expect leverage to decline to approximately 3x adjusted EBITDA, providing a sound basis for a sustainable long-term financing structure. Fourth, we are executing our operational transformation through GTO. This will lead to the targeted EUR 50 million to EUR 70 million annualized EBITDA improvement with implementation across 2026 and 2027 and the full run rate impact expected for 2028.

Finally, we are sharpening the profile of the future Gerresheimer. We are building on the strong momentum in Medical Devices and the opportunities in Syringe Systems while addressing the performance gaps in Tubular Glass and Moulded Glass through rigorous restructuring operational excellence and product portfolio management. Taken together, these actions are designed to create a more focused company with a stronger balance sheet, improved profitability and attractive positions in high-value primary packaging and drug delivery solutions. As always, thank you for your continued support.

With this, I pass over to Niels again to open the floor for our Q&A session. Niels?

Thank you very much, Achim. Operator, please open the floor for the Q&A session.

[Operator Instructions] Our first question comes from Oliver Reinberg from Kepler Cheuvreux.

Three, if I may. Firstly, can you just provide some kind of color thinking about 2027? What kind of key tail and headwinds you currently have in mind? And specifically on energy, can you just give us any kind of color what incremental earnings or cost headwind you're expecting from that? And whether this can be probably passed on to clients?

Secondly, I think you talked in your prepared remarks about a settlement in Q4. Can you just remind me what exactly is it and what kind of magnitude are we talking about? And then third and last question, can you just give us any color when will you start to report financials really on a kind of continuous basis, excluding Centor and PPP, please?

Sure. Oliver, thank you very much for the question on 2027. I think is a bit too early, yes. Currently, we're laser-focused on closing Primary Packaging Plastics as mentioned, as well as coming in successfully within the guidance for this year. And then timely we'll provide more color around 2027. I think if we look -- I think you particularly mentioned energy, yes, energy, that is a headwind if conditions stay as they are today. I would say we do expect currently higher energy cost and that represents a headwind, particularly for Moulded Glass business next year.

And I think already in the last call, we mentioned that in this year, 2026, we have roughly 80% hedged; next year, less than 50%. I think it's not just a Gerresheimer or Moulded Glass issue. This is an industry-wide development affecting both competitors and customers. So we intend to mitigate the impact through, a, what is in our control, which are GTO transformation measures, managing our cost well through operational efficiency improvements and then also commercial excellence, meaning price actions where appropriate. That's on 2027.

And then I think you had mentioned in the fourth quarter, certain impacts. And this is -- we expect in the fourth quarter to benefit from positive year-end effects. This is as usual and as in prior years, including settlements of certain customer and supplier agreements on the supplier, these are the typical volume rebates, et cetera, which are expected to contribute both EBITDA as well as cash flow. And this is in combination with the seasonally stronger fourth quarter, which that altogether underpins our confidence in achieving our full year guidance. And then what was the third question again? Could you repeat, Oliver?

Yes. It's basically the kind of results from continued operations. So when you're going to report sales and EBITDA, excluding Centor PPP?

Okay. Yes. As we mentioned, Oliver, this is a preliminary earnings call. As such, we focus on our key financial KPIs, which are sales, adjusted EBITDA as well as cash flow before M&A. And as I mentioned, when we provide our final financials and for the first half, this will be in November and for the third quarter, this will be in December, then we will provide the details on IFRS 5 accounting. So thanks for your patience there, and this will be part of the final financials when we file them.

The next question comes from Oliver Metzger from ODDO BHF.

The first one is also about the future Gerresheimer and the underlying trends you see right now. So you made some comments about the Primary Injectable Solutions. Also, you said a few words on Tubular Glass. But can you give us a little bit more granularity? So how do you see current business trends progressing in Tubular Glass as well as the underlying dynamics in Syringe Systems? Also in this context, it would be great to hear also some comments on still your GLP-1 business, which, sto my understanding, is primarily within the Syringe Systems.

And my further question is on Moulded Glass. You made a comment regarding the inventory reductions for the group. So does this imply also for Moulded Glass? So do you see now the reduction as mainly over? Or do you see still some spillover effect for the Q4?

Sure. Maybe I'll take the first one, Wolf, as this is Primary Injectable Solutions. So in total, we expect market to grow above GDP, mainly on biologics and biosimilars trends for both syringes as Tubular Glass. Please understand we will not provide details on the exact segment performance, but I believe it came across that Syringe Systems progresses very well, while we continue to have restructuring work to be done within Tubular Glass, specifically in Europe. The second part of your question on GLP-1, yes, we are exposed to syringes in GLP-1, but also in the medical device side. And we continue to see growth for GLP-1 in both segments.

Over to you, Wolf, for the Moulded Glass question.

Yes. I wanted to jump in and do that one first. Sorry for that. Achim, here we go. So yes, on Moulded Glass, Oliver, ultimately, inventory management and cash management is the main driver here around that margin decrease that you see. So when you look at it, revenues were similar year-over-year. You're talking EUR 165 million in the third quarter last year and EUR 169 million in the third quarter this year. Yet the EBITDA is down from EUR 29 million to now EUR 17 million. That's a EUR 12 million EBITDA decrease.

Really, the main driver is, as explained, year-over-year is our strict cash management, including and primarily on inventory. In the third quarter of last year, we increased inventory by EUR 14 million. And this comes with a positive impact on earnings on the P&L. And in the third quarter this year, we have decreased inventory by roughly EUR 10 million, and that comes with a negative P&L impact. Thus year-over-year, you're talking about a EUR 24 million swing and at roughly contribution margin levels or so at 50%, that explains really why the earnings are down EUR 12 million pretty much mainly through just this rigorous strict cash management, including inventory management.

We think we're through the most of that. And as mentioned, for the fourth quarter, I don't expect that same impact again. We will continue to manage our cash very rigorously, including CapEx, including receivables, et cetera, et cetera. Yes, in inventory, I think we're through most of it. So hopefully, that explains your questions.

The next question comes from Falko Friedrichs from Deutsche Bank.

My first question is what gives you confidence that you can still reach this adjusted EBITDA margin guidance for this year? And given we're very close to the end of your fiscal year, do you think the midpoint of this range is still very much doable? Or should we rather assume the lower end of this range? My second question is on the Containment & Delivery Systems segment. Of the 9% revenue growth you saw in the quarter, could you give us a feeling for how much of that was coming from pricing?

And also how much of that was driven by the PPP business? And then my third question is on your CEO search. Can you give us an update on where you're standing there looking for a new permanent CEO? I mean it's been a full year now since you had one. Is there any reason why this is taking you so long to find a suitable candidate?

Great. Falko, thank you very much for your question. I'll take the first one on the EBITDA and guidance. So just to bring the guidance back to everyone, so what is our guidance? We said sales -- the guidance is between EUR 2.3 billion to EUR 2.35 billion of sales. And then in terms of organic, meaning normalized for foreign exchange, EBITDA margin, we're talking 17% to 18%. And then on cash flow, we said EUR 50 million to EUR 100 million negative, and that includes the impact of the roughly EUR 80 million less reverse factoring.

So to your question, if you go to Page 17, we show for full transparency, the organic results. And if you look at that, we are currently third quarter year-to-date, so 9 months into this year, we have EUR 281 million of adjusted EBITDA organically, meaning, again, organically adjusted for -- also for normalized for foreign exchange. So then to your point on sales and margin. So if you were to take the EUR 2.35 billion sales and then, let's say, take the lower end, the 17% EBITDA range, that computes to roughly EUR 400 million of EBITDA.

We are at EUR 281 million. So that means to come in at the lower end of the range, we need around EUR 120 million of EBITDA organic adjusted in the fourth quarter or more to come within the guidance range, which we have visibility to. And that is why we expect to come in the guidance range.

Over to you, Achim, on Containment & Delivery Systems.

Yes. Thanks, Falko, for your questions. If I understood correctly, you wanted to understand the split between pricing and volume for the 9% growth that we have seen. Most of it is actually driven by volume on the Medical Device systems, as shared, mainly on the ramp-up in Peachtree City, and then a smaller contribution of PPP also because the segment by itself is smaller than Medical Devices. And then on the third question, we are currently sharing, Wolf and I as co-CEOs, the leadership of the company with very strong support of our business unit experts. And obviously, all the rest is in the hands of the Supervisory Board to come to a final decision.

Correct. And then rest assured, Falko, nothing stays undone or not being a priority. Everything that Achim and I introduced in terms of priorities for this year and for the coming months, we're executing that. And this is the priority for Achim and I, and we're very confident of that.

Okay. Can I just squeeze in a quick follow-up? It's on this BaFin investigation. Is there any high-level sense you can give us on the time lines of this, how much longer that could potentially go on?

Falko, yes, thank you very much. Very good question. Yes, there is not much I can add in terms of insight to that. So the -- we are 150% supporting the BaFin investigation in full transparency and in full cooperation. Unfortunately, on the time line, we don't know exactly. I mean the BaFin has the authority to run the investigation at their time line. As such, that's difficult to put a time stamp on this.

The next question comes from Christian Ehmann from Berenberg.

I have 3 left. So in the -- just with the old management, we had this figure of EUR 350 million GLP-1 revenue at some point in 2028 potentially. Could you give us an update on this? And also maybe give us some guidance on how significant, for example, Gerresheimer contribution would be included in this figure? Then on CapEx, next question on CapEx. So the current run rate is just shy of 10% or significantly below 10%. Is this something you can maintain? Or something that we should model for the foreseeable future or just this year?

And the third question is, I guess, I'm pondering the comment regarding leverage, including the PPP and Centor sales. So you gave -- you said we have an expectation or you can have an expectation of 3x leverage closing of the sales. So maybe you can give us some color on how you calculate the leverage then on the RemainCo after closing of those 2 sales?

Let me take the first question, Christian, on GLP-1. Obviously, we don't comment on individual customers' contributions or products when it comes to GLP-1. In total, yes, there was a target given of around EUR 350 million. While the exact revenue contribution will depend on the execution and timing of customer programs. Let me remind you that we have very strong customer arrangements, and we are in the ballpark of the target already. Back to Wolf for the second and third.

Yes. Thank you. Good question, Christian, on CapEx. And yes, you're right. So 9 months into the game, we spent EUR 149 million on CapEx, roughly 40% on base CapEx, maintaining all our assets properly, furnaces, et cetera, and roughly 60% on growth. And that EUR 149 million is 37%, a full 37% below last year same time, which clearly, I think, demonstrates our improved and strict capital allocation rigor. Now the math, I think you also did correctly there, Christian. If you take the EUR 149 million CapEx divided by the roughly 1,707 million sales, yes, that is around 9% of sales. And yes, we do expect to finish the year around this level of CapEx as a percent of sales.

So I think for this year, the 9% for sure, that turns into around 200 on a cash basis. I think that's a good assumption. And then if you go into the outer years or next year, I think it's -- as I mentioned to Oliver, it's a bit too early. We're still going through our budget. We're still going through our midterm planning. Nevertheless, I think it's fair to assume that our capital allocation rigor is improving and also will tie to what we have on the very first page, where you see grow, fix and fix to sell, if you want, so that we want to improve our capital allocation rigor to fund over proportionately the business that we want to grow, obviously. And then in the fix bucket, obviously, we spend our money on productivity improvements.

And then I think your last question, Christian, was on leverage and refinancing, et cetera. Look, I think we have a bit under EUR 2.3 billion of gross debt and a bit under EUR 2.1 billion of net debt. And with the 2 divestitures, we have the great opportunity to reduce our gross debt to below EUR 0.9 billion of gross debt. And then, obviously, correspondingly lower than that, obviously, our net debt. And as Achim mentioned and as we mentioned, our current focus is on completing and closing our Primary Packaging Plastics divestiture swiftly, and we expect now to successfully close that in the first quarter of '27.

And when you do the math, yes, it computes to -- with reducing our gross debt to just below EUR 0.9 billion of debt and net debt obviously then lower than that. That computes to a leverage to around 3x. I won't give you exactly the pro forma EBITDA that you need to use, but I think you can do the math. So we are really, really looking forward to closing Primary Packaging Plastics also as successfully as we did Centor, and that will put us in a great position to then do a meaningful fulsome refinancing for the long term.

[Operator Instructions] Our next question comes from David Adlington from JPMorgan.

I've just got 2 left, please. Maybe just on Moulded Glass, wondering if you're able to put any time lines around expectations for your exit from that business? And then secondly, I just wondering if you were willing to confirm or deny the recent reports of third-party interest in the remaining group and whether the EUR 50 per share mentioned in the article was the reason for a rejection, i.e., down to valuation?

Thank you, David. On the Moulded Glass point, look, really, we are laser-focused right now on completing the transformation and further improving profitability. We have already made meaningful progress, example, given Chicago Heights closure, but we know there is still significant value to unlock. As I mentioned, the business is currently running at an annualized EBITDA level at around EUR 80 million, EUR 85 million or so, and our ambition is to move back to EUR 100 million and more and beyond.

And as such, our focus is on creating the strongest possible stand-alone business and maximizing value rather than committing to a specific transaction date, David. And then on your last point, look, as always, we don't comment on rumors or any of those matters. So no, we don't comment on that.

Our last question for today comes from Edward Hall from Stifel.

I've got a couple on sort of utilization. I think you mentioned that the profitability of Tubular Glass sort of is below expectations. And I'd just be curious to try and understand what the utilization changes would be needed to get to sort of at or above your expectations? And then sort of on Peachtree, sort of the utilization today and sort of how much sort of extra utilization could we see from that particular facility in the U.S.?

And then finally, just on the free cash flow. So at the bottom end implies sort of EUR 40 million Q4 free cash flow. I mean, sort of, how much is coming from the, sort of, extra settlements? Help me sort of square up that sort of positive EUR 40 million, at least at the bottom end?

Ed, let me take the first 2 and then hand over back to Wolf for the free cash flow. On utilization in Tubular Glass, honestly speaking, it's not only a matter of utilization. The improvements are also performance-related and what I mentioned on the product portfolio mixing up and moving into higher-value solutions for Tubular Glass.

Second, on Peachtree, the plan is ramping up nicely. There is still headroom on utilization in double-digit percentages. So you can expect still some more even though I think the run rate that we have confirmed in the most recent months is where we wanted it to be going forward. And with that, I'll give the word back to Wolf on free cash flow.

Sure. Ed, thank you very much for the question. So yes, currently, 9 months into the year, the free cash flow before M&A stands at roughly EUR 140 million negative. Our commitment is to come in between EUR 50 million to EUR 100 million, and we are confident to do so, and we have visibility to that. Look, I won't comment on exactly how much of the special effects or usual seasonal effects that are coming in, in the fourth quarter, like every year, contribute to that. But overall, what we see is that we're coming also on cash flow, not only on sales and on adjusted EBITDA margin, but also on cash flow, we're coming in within the guidance range that we provided. Thank you, Ed.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Niels Fehre for any closing remarks.

Thank you very much, operator. As we have no more questions in the queue, we hereby close today's call. Thank you all for your participation, and see you soon. Bye-bye.

Ladies and gentlemen, the conference is now over.

This earnings call is based on preliminary figures for our second quarter and the first half of 2026. Wolf Lehmann and Achim Schalk will explain the Q2 '26 performance to you and will give you an update on the company development.

On Page 1 of our presentation, you find the disclaimer. Please let me remind you that this disclaimer will apply throughout this earnings call, and we assume your consent to this. I will, therefore, not read it out loud. You can download the slide deck from our website under Presentations at our Investor Relations section of the website.

Now let me hand you over to Wolf for the preliminary Q2 results and highlights. Wolf?

Thank you, Guido. Please turn to Page 3 with our recent company highlights. Our priorities remain unchanged, and we are executing step by step.

First, on business performance. Recovery is on track with second quarter adjusted EBITDA slightly more than 50% up from Q1 or up EUR 35 million quarter-on-quarter. Q2 at EUR 102 million versus Q1 at EUR 67 million. This is as expected. Remember, in first quarter, we deliberately focused on cash. And in Q2, our transformation initiatives are starting to deliver results.

All 3 segments contributed positively to this quarter-on-quarter improvement. We'll go into more details over the next pages. Based on the second quarter performance and our current expectations for the second half, we expect to come in within our guidance range.

Secondly, on our divestitures. On selling Centor and Primary Packaging Plastics. This truly marks an inflection point for Gerresheimer as this solves our too high debt burden. As you know, both transactions we signed end of July. The closing of Centor and Primary Packaging Plastics are both well on track, with the first one, Centor, very much advanced and at its final stages for closing in October, thus ahead of our year-end November. The closing of Centor brings in around half of the gross proceeds stemming from the around EUR 1.5 billion enterprise value of both businesses jointly. The closing of Primary Packaging Plastics, we continue to target during the first half of 2027.

Thirdly, on refinancing, which is highly linked to our divestitures. In parallel to closing Centor and Primary Packaging Plastics, we are preparing our new long-term capital structure. We're progressing well towards a sustainable leverage at or below 3x net debt to EBITDA, a leverage level we feel very comfortable with. This will put Gerresheimer back on an absolutely solid basis for the long term through the planned new capital structure. Again, this truly marks an inflection point in our recent Gerresheimer history.

Fourth, on our transformation program, we continue to gain momentum. We're executing initiatives targeting around EUR 50 million to EUR 70 million of EBITDA improvement until the end of 2027 to ensure we realize the financial benefits in 2028 and beyond.

The gto, Gerresheimer Transformation Offensive work streams include footprint rationalization, operational excellence and SG&A efficiencies, just to name some of the focus areas.

During the quarter, we made great progress on closing our Moulded Glass plant at Chicago Heights, which we are completing this month, this week, quite frankly, yesterday, we closed the furnace successfully and safely.

Next, we focus on the consolidation of our Forest Grove facility into Morganton.

Also, we are progressing well on reducing and rightsizing our SG&A cost, finalizing a more than 20% cost reduction year-over-year heading into 2027.

Finally, we remain committed to our rigorous Grow, Fix and Sell portfolio strategy. Referring to Grow. We continue to focus on growth of our businesses, Medical Device Systems, Syringe Systems and Tubular Glass North America. Here, we increasingly benefit from our growth investments we have made in the past, example given are our Medical Device Systems, local-for-local plant at Peachtree USA or our shared Tubular Glass and Syringes plant at Querétaro, Mexico, serving North American customers. Those are great investment examples. Our businesses in Grow have a clear high-value drug delivery solutions focus and correspondingly an above-average portfolio profitability.

Referring to Fix. In contrast to Tubular Glass North America in the Grow bucket, we started to restructure our Tubular Glass Europe business to improve performance, yet this will clearly take some quarters. And additionally, in the Fix bucket, as said before, we are rightsizing our SG&A footprint and processes to reflect the smaller size of the company going forward and get closer to external benchmarks.

Referring to Sell or a fix to sell approach is being applied to our Moulded Glass business with the target to improve the performance and the structure while preparing the business for future divestiture at the right time. This fix to sell approach is scheduled over the next quarters.

Our forward-looking focus will be on the new Gerresheimer portfolio of high-value packaging and drug delivery solutions for the pharma, health care and biotech industries.

Before discussing the quarter in more detail, please turn to Page 4. As part of the continuing effort to finalize and improve the quality of our financial reporting, we completed the quarterly allocation work relating to previously communicated full year 2025 adjustments. For the second quarter of 2025, the adjusted figures resulted in revenue increasing by EUR 13 million and adjusted EBITDA increasing by EUR 7 million compared to the uncorrected figures. We have transparently separated bill and hold related effects from other accounting adjustments.

The BaFin investigation remains ongoing. We continue to cooperate fully with the authorities and respond promptly to all requests. While we cannot comment on timing or potential outcomes, we remain fully committed to accurate, transparent and high-quality financial reporting.

Please turn to Page 5 for details on our second quarter 2026 performance. Before discussing the quarterly progression versus Q1, let me briefly address the year-on-year comparison. Revenue in second quarter amounted to EUR 578 million compared to EUR 614 million in the prior year second quarter. We cover the segment details over the next pages.

Only a quick first overview. Containment and Delivery Systems continued its growth trajectory. However, this was more than offset by lower revenues in Primary Injectable Solutions, while Moulded Glass was broadly stable year-on-year.

Adjusted EBITDA declined by EUR 20 million year-on-year to EUR 102 million. The main driver was lower sales volume in Primary Injectable Solutions, particularly in Syringe Systems and Tubular Glass.

Free cash flow before M&A amounted to a negative EUR 92 million. This was -- this primarily reflects working capital movements associated with reduced reverse factoring facilities impacting payables and high receivables linked to the good quarter-on-quarter revenue increase. Importantly, we maintained our strict allocation -- capital allocation discipline, reducing net CapEx from around EUR 60 million to just below EUR 40 million, 35% below the prior year. I will cover the cash flow in more detail on the later pages covering the EBITDA to cash flow walk.

Now please turn to Page 6, where the quarter-over-quarter comparison is shown. This slide highlights the operational recovery we expected and executed following the subdued first quarter. Revenue increased by EUR 55 million versus Q1 from EUR 523 million to EUR 578 million, with all 3 segments contributing to this development. Even more importantly, adjusted EBITDA increased from EUR 67 million to EUR 102 million in second quarter. This represents an increase of more than 50%, driven by improved operational performance across all segments. While free cash flow declined quarter-on-quarter, this was primarily driven by especially the reduction of reverse factoring lines, which I already explained during our Q1 earnings call rather than operational performance.

Overall, we believe the second quarter demonstrates that the actions initiated earlier this year are starting to translate into improved operational results.

With that, I hand over to Achim to discuss the performance of our segments. Achim, please.

Thank you, Wolf. Please turn to Page 8 for an overview of our segment performance. Let us start with Containment and Delivery Systems. The segment continued its positive development during the second quarter. Importantly, this provides further evidence that the growth investments made over recent years are beginning to convert into both revenue and earnings growth.

Revenue increased to EUR 308 million, supported primarily by the continued ramp-up of our Peachtree facility in the United States. The facility is now making a meaningful contribution to the segment's performance. PPP remained broadly stable, while Centor was affected by foreign exchange impact and increased input costs. The strong contribution from Medical Systems more than offset these effects.

Adjusted EBITDA increased to EUR 74 million, representing a margin of nearly 24%. This improvement reflects increasing operational leverage from the Medical Systems business and benefits from efficiency measures implemented across the segment during the last year.

Please turn to Page 9, our segment report on Primary Injectable Solutions. In Primary Injectable Solutions, revenue was below the prior year level, but improved meaningfully versus the first quarter and increased by approximately EUR 10 million, while adjusted EBITDA almost doubled. The year-on-year shortfall was primarily driven by lower sales in Syringe Systems. Tubular Glass also contributed to the decline, particularly from lower bulk vials demand.

Our priorities for Tubular Glass remain unchanged with a strong focus on the European business. We have initiated restructurings and actions with an emphasis on operational excellence, footprint optimization and SG&A efficiencies. However, our objective goes beyond cost reductions. We intend to build a more competitive and higher-value injectable solutions business with improved utilization, stronger profitability and a better product mix based on a stronger product portfolio.

Please turn to Page 10 for our segment report on Moulded Glass. For this, I hand you back to Wolf.

Thank you, Achim. Moulded Glass delivered a solid operational recovery during the second quarter versus the first quarter of the year. Revenue was broadly stable year-on-year. This is a result of lower revenues from the Pharma business impacted by the process of closing our Chicago Heights plant, mostly offset by higher revenues from our customers in the area of food and beverages. Compared with the previous quarter, revenue increased by approximately EUR 21 million.

Our year-on-year adjusted EBITDA performance was impacted by inventory management measures and increased costs, including energy, net of hedging. More importantly, adjusted EBITDA increased sequentially from EUR 8 million in Q1 to EUR 25 million in Q2. EBITDA tripled. This was driven by improved utilization levels as well as a gradual normalization following inventory reduction measures implemented earlier this year.

While EBITDA margin remains below our expectations, the sequential improvement demonstrates that the business is starting to respond to the operational actions we are implementing. As mentioned earlier, the closure of our Chicago Heights facility is progressing according to plan. Since yesterday afternoon, the furnace is down for good and has been shut down safely. Customer qualification and transfer activities to our plants, example, given at Italy and India remain on track and will continue.

Let's take a look at the overall cash flow for the company on the next page. Page 11, please. While free cash flow before M&A was negative EUR 92 million in Q2, this was primarily a result of working capital, including financing-related effects rather than a weaker operating performance.

Let me explain the main buckets only. On net working capital, around EUR 90 million use of cash, primarily driven by payables. Payables, around EUR 60 million is from lower payables related to the reverse factoring lines no longer being available to us due to the worse credit rating. I explained that already at our last earnings call. This is a financing, not an operations matter. Also, this effect is now behind us. This impacted Q1 and Q2.

On receivables, around EUR 20 million quarter-over-quarter. This stems from EUR 55 million quarter-on-quarter higher sales, which is positive.

On inventory, we continue to manage inventory well, rather flat inventory on higher sales.

Tax interest, et cetera, is per plan and as expected.

Let's move further on the right-hand side of the walk on capital expenditure. On capital expenditure, we continued our disciplined approach and reduced net CapEx to EUR 38 million. In Q1, we managed CapEx year-over-year down by half. In Q2 year-over-year, down by approximately 35%. Despite this disciplined approach, we continue to maintain our assets well and invest in selected projects that support future growth, productivity improvement and customer commitments. Around 60% of our CapEx spend is on growth.

On the next page, Page 12, I will give you the usual update on our capital structure and financing status. On the left-hand side, you see our net financial debt at slightly above EUR 2 billion and our liquidity of EUR 249 million. Our liquidity remains solid and fully sufficient to support the execution of our business plan and transaction agenda. As part of our stabilization agreement with our financing partners, we have no debt covenant up and until November of this year.

More importantly, going forward is closing Centor and Primary Packaging Plastics timely and implementing the new long-term capital structure at a substantial, sustainable -- at a substantial lower leverage and a sustainable leverage at around 3x. As mentioned earlier, on Centor, preparations are in the final stages for closing in October.

In parallel to closing Primary Packaging Plastics, we are pursuing a dual track financing approach and remain focused on achieving a capital structure that reflects the significantly lower leverage profile of the new Gerresheimer.

Please turn to Page 14 for a view on our final Q1 '26 figures, which we published this morning. As expected, revenues, adjusted EBITDA and cash flow in Q1 2026 are largely unchanged compared to the preliminary figures we presented to you on August 27. As communicated, with every quarter, we allocate the total adjustments made for the full year 2025 to the respective quarters. As a result of that, Q1 '25 revenues and adjusted EBITDA were up EUR 10 million and EUR 7 million, respectively.

With our enhanced controllership focus, we perform a detailed impairment test for our cash-generating units every quarter in contrast to an annual-only assessment. As a result, we accounted for a noncash impairment of EUR 31 million, mainly due to increased interest rates and updated parameters. Also, as we execute our transformation road map, including footprint optimization of plant closures, a quarterly check makes sense to ensure assets are stated fairly. We will continue this rigor.

Also, what needed to be taken into account for was the fact that the business unit Centor is considered as asset held for sale according to IFRS 5.

Please turn to Page 15 for more details on this. We split out Centor as held for sale. And in the first 6 months of 2026, Centor contributed EUR 97.6 million of revenues and EUR 33.6 million of adjusted EBITDA to the results of the Gerresheimer Group. Free cash flow was slightly negative with EUR 7.3 million.

Please turn to Page 16 for an overview of our upcoming events. We recognize that our reporting timetable remains behind of what is expected by the capital markets. We continue to apply the additional review and control procedures required to ensure our financial statements are complete, accurate and transparent. We expect to publish the first half financial report at the end of November and intend to return to the legally required reporting timetable with the publication of the 2026 annual report in March -- next year in March 2027. For third quarter, we intend to provide you with preliminary results ahead of the final report, just as we did the past 2 quarters.

On the right-hand side of the page, we show selected Investor Relations events until the beginning of next year. We hope to meet some of you in-person at one or the other of the listed investor conferences.

Please turn to Page 17 for our closing remarks. Achim, please.

Thanks, Wolf. Let me close with the priorities against which we expect to be measured. First, we remain committed to delivering a stronger second half than first half of 2026 and to executing against our confirmed full year guidance. We will complete the signed Centor and PPP transactions and use the proceeds to reduce debt and leverage sustainably. The Centor sale will be closed in October and the sale of PPP thereafter in H1 2027.

Following completion of both transactions, we intend to refinance the remaining debt and establish a sustainable long-term capital structure for the new Gerresheimer.

Next, we will deliver the operational transformation, executing our gto initiatives. This will lead to the targeted EUR 50 million to EUR 70 million annualized EBITDA improvement with implementation across this year and 2027 and the full run rate impact expected from 2028.

Finally, we will improve the performance and structure of Moulded Glass and prepare the business for future divestiture. Our approach is clear: improve performance first and divest the business at the appropriate time. The new Gerresheimer will be smaller in size, more focused and higher in quality. It will concentrate on high-value Primary Packaging and Drug Delivery Solutions, supported by lower leverage, a leaner cost base, stronger cash generation and disciplined capital allocation. This is the framework against which we expect shareholders to measure our progress.

With that, I pass over to Guido to open the floor for our Q&A session. Guido, please.

Thank you, Achim. Operator, Dana, please open the floor for the Q&A session.

[Operator Instructions]

Our first question comes from Oliver Metzger from ODDO BHF.

The first one is, can you describe the current performance of the new Gerresheimer, meaning excluding Centor and excluding PPP. So where do you stand from a growth perspective and profitability side?

Second question is on Moulded Glass. So on the revenue side, there is some stabilization visible, still on the bottom line, some headwind. So can you give us your idea when do you expect the bottom line also to recover?

And the third one is, as we slowly approach calendar year '27, I have in mind that 5 years ago, early '22, you made the hedge for gas in Europe. And can you remind us where you stand and whether you see from this running out gas hedge some incremental headwind on costs?

Great. Oliver, thank you very much for your questions. Maybe we start the other way around. So your last question was on energy and hedging, et cetera. So absolutely, I think just like the rest of the world, we experienced the energy crisis. In this year, in 2026, we are more than 75% hedged on our energy. As such, we don't feel the full impact of the energy crisis due to the strong hedging position. For next year, we are, like many other industry players, less than 50% hedged. So as such, that is headwind that we're facing. On the other hand, obviously, like the rest of the world, I think we're expecting one or the other energy crisis to be resolved hopefully next year. We can't bank on it, but that will obviously be very much beneficial.

If you go into Moulded Glass, I think it's fair to say that, yes, you call it stabilization, correct. I think in Moulded Glass, as mentioned, the first quarter was subdued results of EUR 8 million. Remember, in the first quarter, we managed for cash, including inventory reduction and the low capacity utilization. Moulded Glass in the second quarter was EUR 25 million. So that's a EUR 17 million improvement quarter-over-quarter, of which I would say roughly, Oliver, 2/3 of that EUR 17 million improvement was driven by higher sales. I think we spelled out there the sales improvement, plus then 1/3 comes of the EUR 17 million EBITDA improvement comes from better cost leverage or better capacity utilization.

Since even so we increased sales, we managed our inventory more or less flat. So again, of the EUR 17 million improvement, 2/3 was driven by higher sales of volume and the other 1/3 by higher cost leverage, better capacity utilization. When you look at that, I think putting it all together, currently, we're more at a run rate or so of maybe 80-ish EBITDA annualized. And obviously, step by step, we want to get to that to back to EUR 100 million and beyond. So that's what the transformation and/or carving out Moulded Glass as a stand-alone company is all about, and we're making good progress on that.

Let me take the first question, Oliver, performance of the new Gerresheimer. As we transition Centor and PPP out, the company will be standing on 3 strong legs, still including the Moulded Glass business. And our aspiration is with completion of the transformation program to get in reach of the 20% EBITDA and targeting a 2x GDP growth rate.

The next question comes from Oliver Reinberg from Kepler Cheuvreux.

Three also from my side. One on the guidance. The guidance requires, I think, an acceleration, obviously, in the second half. Can you just give us some kind of color and flavor for the phasing? I mean, normally, historically, Q3 has been below Q2 in terms of EBITDA contribution. Is that also what you would expect this year? And can you provide some kind of color how much of the kind of targeted cost savings you have realized in the first half, please? That would be question number one.

Secondly, can you just talk to the syringe performance, which was down, what was driving it and how sustainable that is?

And finally, just on the GLP-1 franchise, do the target for 2027 remain fully in place? And any update where you currently stand?

Great. Oliver, great to talk again. So I'll take the first question on guidance. So Oliver, the latest guidance is, as you know, on revenue, lower half of EUR 2.3 billion to EUR 2.4 billion of revenue. On adjusted EBITDA percent, a margin around 17% to 18%. And on cash flow before M&A, a negative EUR 50 million to negative EUR 100 million around.

First, I want to make sure we all understand. Please note our guidance is provided organically and before M&A. Organically means we normalize revenue and adjusted EBITDA for foreign exchange. Before M&A means we normalize out the impact of M&A.

So quick 2 examples. On before M&A, obviously, receiving the proceeds for Centor, for example, this will impact our cash flow very positively, yet is not how our guidance is stated. On organically, normalized for FX, if you go to Page 5, we transparently show our adjusted EBITDA percent at 17.6% as is and also at 18.0% organically adjusted for foreign exchange. So you have that transparency.

On the phasing, I'm not going to go into too much detail. As mentioned, we do expect a stronger second half versus first half, which puts us within the guidance range.

Thank you. I hand it over to Achim maybe on syringe and GLP-1.

Yes. Thanks, Wolf. Thanks, Oliver, for your questions. First off, on syringes, please understand we do not disclose detailed financials on BU level as part of the segment. There may be individual quarters that show a decline in revenues due to timing effects. However, the business as such is intact and is expected to continue growing overall for the full year basis.

Looking at the GLP-1 franchise question, which we used to report a target of around EUR 350 million annual revenues from GLP-1-related businesses across the different business units and segments. What I can confirm you is that we have strong contracts in place, including take-or-pay clauses with our customers. So depending on the execution of these contracts, we will see more or less revenue, but still strong profitability from the GLP-1 franchise.

[Operator Instructions] Our next question comes from Ed Hall from Stifel.

A couple from me. I think on the tubular side, it would be really good to understand sort of the idle capacity you have. I guess if we look geographically, I think maybe more importantly. So I'd be curious to see if you agree or disagree with the statement that U.S. is tight on capacity, but Europe isn't? And I guess what would you need to see for this to change? I think you've talked about sort of fixing Europe. But sort of what is the key things that you need to see for European Tubular Glass to improve?

And then second question would just be on -- I think you've obviously mentioned in Q1 that your performance was muted to conserve cash. But I was curious to see within that sales mix, how much was related to longer-term versus shorter-term contracts i.e., can you get longer-term contracts that were postponed into H2 that you could extract as revenue in H2? Or is it really related to shorter-term contracts that you have to go out in market?

And then just finally, just on the Q1 '25 EBITDA number for Primary Injectable Solutions. If I look now versus a month ago, there has been a bit of a swing, about EUR 10 million up. So I just want to try and understand the underlying profitability of that business. What's really caused the change in that number today versus August?

Let me take the first question on tubular capacity geographically as well as our approach to fix the European footprint. As we mentioned in the call, starting with the second part of your question, we are looking at our footprint optimization and capacity utilization across our different plants, including here the Asian plants, India and China with a stronger cost position. And then, yes, confirmed for U.S., the market is healthier there. We have added capacity, and we are currently working on filling those capacities as we speak.

All right. And on your last question, I believe it was, on EBITDA of last year, 2025. As stated back when we talked in August, those were preliminary numbers in the course of the preparation, we have done all the ticking and tying and reconciled all the adjustments. And so that's reflected in the final numbers.

If that was an addition to the answer, then you go ahead. Otherwise, I will try to answer question 2, if I understood it correctly.

Perfect. No, I just wanted to try and understand because if I've got my math right, the Q1 number last month was around EUR 7 million, and now it's up to around EUR 17 million. So that EUR 10 million swing, is that all adjustments? Or is there something that is now recognized there, which is operational?

Adjustment as explained.

Okay. No, that's clear. And then just finally on the final question was just on the sort of the Q1 and maybe Q2 performance and your, let's say, your expectations for H2 strength and sort of in the past, I think predecessors have talked about shorter-term contracts and longer-term contracts. I was just curious of the mix and if there's any sort of easy levers you could pull or you have already pulled to get H2 revenue higher than H1.

I think naturally, Q4 is the strongest quarter for the company also because preparing for flu season where some of our products are connected to. And Q1 is traditionally the lowest mainly because of shutdowns during Christmas and New Year period. So nothing to do with contractual arrangements.

All right. With that, we will close this call today. As there are no more questions, we are looking forward to seeing some of you in-person soon. Let us know if you need anything from us, and we're happy to help. Thank you.

Wait, wait, wait. I was just told somebody is in the queue. Operator?

Yes. We have a question from Christian Ehmann from Berenberg.

One last question from my side, maybe a little bit backwards looking, but could you explain to us what drove the negative free cash flow contribution from Centor in H1?

Sure. Thank you very much, Christian. Good question. Well, look, we have continued to invest in Centor. And as such, you can have a negative cash flow and which some of our growth investments continue to go into Centor, and that drove the minor negative cash contribution there in the first quarter. And note that you do have a certain seasonality. Classic is that in the first quarter, operational performance, remember, in our first quarter is December, January and February, which by nature, so to say, are typically weaker months. Nevertheless, in Centor, in particular, we continued our growth investment and had some CapEx spend that is benefiting the company going forward.

Well, thanks again to everyone for listening and contributing. Again, we are looking forward to see some of you. Let us know, if you need anything, you know where to find us. Thank you, and bye-bye.

Thank you.

Thank you.

Ladies and gentlemen, welcome to the publication preliminary Q1 2026 Results of Gerresheimer [Foreign Language] Conference Call. I'm [ Mathilde, ] the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mr. Guido Pickert, Vice President, Corporate Investor Relations. Please go ahead.

Thank you, operator.

This earnings call is based on preliminary figures for our first quarter 2026. Wolf Lehmann and Achim Schalk will explain the Q1 2026 performance to you and will give you an update on the company development. On Page 1 of the presentation, please let me remind you that the disclaimer you can find there will apply throughout this earnings call, and we assume your consent to this. I will, therefore, not read it out loud. You can download the slide deck from our website under Presentations at our Investor Relations section.

Now let me hand you over to Wolf Lehmann, our CFO. Wolf?

Thank you, Guido.

Before we discuss the quarter, a few comments upfront. With me today is my Board colleague, Achim Schalk, who will present to you our focus and progress towards high-value primary packaging and drug delivery solutions, including the sale of our business unit Centor and Primary Packaging Plastics. As announced earlier this week, Uwe Rohrhoff has stepped down from his position as Interim CEO for personal reasons, a few weeks earlier as maybe you anticipated. We sincerely thank him for his leadership and contributions during an important period for Gerresheimer. Comparing when he joined in November last year to today, we achieved significant progress, which we will walk you through.

The Management Board remains fully focused on the priorities we have communicated. One, completing the announced portfolio transactions, the sale of Centor and Primary Packaging Plastics; two, reduce debt, strengthening our balance sheet, including a complete refinancing; three, deliver the operational transformation and restoring sustainable profitable growth. I would like to reemphasize that integrity, compliance and strong financial controllership remain nonnegotiable priorities for Gerresheimer.

We're completing the additional review procedures required for the final Q1 financial statements, including, amongst others, a, the presentation and disclosure of so-called discontinued operations related to the sale of the 2 business units, Centor and Primary Packaging Plastics; and b, the regular quarterly assessment of potential impairment indicator with any such adjustment would be noncash relevant. These procedures are supported by external advisers and are part of our commitment to maintaining the highest standards of financial reporting. We expect to publish the final Q1 financials in September and focus today on the key financial KPIs, which we do not expect to change anymore.

Thank you for your patience, and please turn to Page 3 with selected recent company highlights. We have signed the sale of our business unit Centor and Primary Packaging Plastics to Apax. We expect the closing of the Centor sale by November 2026 and the closing of the PPP sale in the first half of 2027. Once both processes have closed, we reduce our debt significantly and expect to have deleveraged to below 3x net debt-to-EBITDA ratio on a sustainable basis. We are working on a full refinancing of our debt and expect that to be finalized once we have closed the sales processes.

I want to stress again that this marks a key turning point for Gerresheimer. Our portfolio strategy is clear, and we are driving progress using a classic grow, fix, sell approach. On grow, we will continue to grow our business units, Medical Device Systems, Syringe Systems and Tubular Glass North America. Our growth investments are paying off and are delivering results. On fix, contrary to Tubular Glass North America, which is profitable and growing, Tubular Glass Europe needs a full turnaround and restructuring. In addition, we are rightsizing our SG&A footprint and processes to, a, match the new reduced size Gerresheimer post the sale of Centor and PPP; and b, align with top-tier competitors.

On sell, we focus on fixing, carving out and selling Moulded Glass. We remain committed to execute the divestiture. However, we still have quite some work to do improving operations. On our GTO transformation, we are executing and are targeting an improvement in EBITDA totaling EUR 50 million to EUR 70 million, about half of the underlying run rate savings we expect to execute in 2026 and the other half in 2027. By 2028, we target the full benefit in our financials.

As expected, Q1 is our lowest quarter in 2026. In our first quarter of this year, we deliberately prioritized cash and working capital discipline. We materially reduced capital expenditures and limited the seasonal inventory build. The associated production adjustments temporarily reduced asset utilization and EBITDA, particularly in Moulded Glass. This was a conscious near-term trade-off to strengthen cash flow. For the remaining quarters of the year, we expect result improvements, supporting a stronger second versus first half of the year.

Before we cover first quarter in more detail, please turn to Page 4 with the corrections of Q1 last year. In Q1 2025, the impact of the restatement and other corrections summed up to EUR 1 million revenue reduction from EUR 520 million to EUR 519 million and EUR 10 million EBITDA reduction from EUR 91 million to EUR 81 million. Just like at our last earnings call for the full year, we split the corrections into bill and hold related adjustments and other corrections on the right.

The BaFin investigation is ongoing. Unfortunately, we cannot comment on the timing, yet we continue to fully cooperate with the authorities to ensure transparency, support the process and drive progress towards closure. We will continue to ensure that our 2026 accounts are correct and that we provide those to the highest standards. Even if this takes more time than usual, I will take you later in the presentation through the latest targeted reporting time line of our quarterly financials.

Now turn to Page 5, please, for a deeper look at our first quarter performance. In first quarter 2026, as promised, we very much focused on cash. We halved CapEx spending, and we reduced our inventory buildup significantly compared to last year's first quarter. We managed production volume carefully, including prolonged temporary production halts at some of our production sites to avoid inventory buildup and related cash consumption. This was a conscious choice and came at the price of lower capacity utilization, resulting in lower EBITDA generation.

As a result, revenues in the first quarter 2026 grew slightly by EUR 5 million, while EBITDA went down by EUR 15 million. However, free cash flow before M&A improved significantly by almost EUR 110 million year-on-year to minus EUR 32 million. Again, this was mainly driven by an inventory buildup of just EUR 5 million, which was EUR 41 million lower than first quarter '25 and a sizable reduction of net CapEx to EUR 56 million, which represents a EUR 57 million reduction or half compared to the same quarter last year. Please note that this represented the best free cash flow figure in any first quarter since 2019.

With this, I would like to hand over to Achim to explain our progress towards high-value solutions and results of our segments.

Achim, please?

Thank you, Wolf.

Please turn to Page 7 for an overview of our portfolio measures. As highlighted, we have signed an agreement to sell our business unit Centor and Primary Packaging Plastics to an affiliate of fund advised by Apax Partners. Under the terms of the agreements, Apax Funds will acquire a total of 15 production sites from Primary Packaging Plastics in 9 countries in addition to the production site of Centor in the U.S. The purchasing price is based on an enterprise value of approximately EUR 1.5 billion. This is a great step towards deleveraging, targeting a sustainable leverage of below 3x EBITDA. In addition to that, we will continue to target the sale of our Moulded Glass segment.

The future portfolio of Gerresheimer will be concentrated on high-value primary packaging and drug delivery solutions where technological expertise, regulatory requirements and long-term customer partnerships create meaningful differentiation and barriers to entry. Medical Device Systems and Syringe Systems provide attractive growth opportunities, while the transformation of Tubular Glass is intended to improve profitability and its competitiveness. Combined with lower leverage and a leaner cost base, this should support a more resilient margin and cash flow profile over time.

Let me take you through the results of our new segments on Page 8. Containment and Delivery Systems achieved organic revenue growth of 8.8%. Therefore, revenue increased to EUR 296 million in Q1 2026 from EUR 281 million in Q1 2025. The main driver of the revenue growth was the performance of our business unit Medical Device Systems with the ramp-up in Peachtree contributing positively. In addition, we saw a very positive performance of our Eastern European plants. The business unit, Primary Packaging Plastics, or PPP as well as Centor were approximately flat year-over-year.

In Q1 2026, the adjusted EBITDA of the whole segment grew to EUR 61 million from EUR 51 million the year before. This reflects the contribution from higher Medical Device Systems volumes and the benefit of resource reductions implemented in Advanced Technologies. PPP and Centor were broadly stable year-on-year, while cash and inventory measures also temporarily affected PPP earnings.

With that, let's move to Slide 9 and our segment report on Primary Injectable Solutions. In Primary Injectable Solutions, or PIS, strong growth in Syringe Systems more than offset lower revenues in Tubular Glass Europe and Asia at the top line level. Total revenue of the segment grew to EUR 101 million from EUR 94 million with 14.2% organically. Adjusted EBITDA declined by EUR 1 million to EUR 6 million, reflecting the lower contribution from Tubular Glass Europe and Asia. We have changed the divisional leadership and initiated a restructuring plan focused on footprint optimization, operational excellence and SG&A savings as part of the GTO program in Tubular Glass Europe. Now let's move to our third and final segment, Moulded Glass on Slide 10. For this, I hand over back to Wolf.

Thank you, Achim.

In Moulded Glass, lower revenues resulting mainly from the furnace repair in Chicago Heights and lower revenues from pharma containers, oral liquids in combination with weak market demand in the area of cosmetics. This led to a decline of revenues to EUR 144 million in the quarter, down from EUR 160 million the year before. Adjusted EBITDA in first quarter '26 declined over proportionately to EUR 6 million from EUR 32 million in Q1 '25.

As explained upfront, this was mainly driven by our strong focus on cash, achieving a much lower inventory buildup through rigorous production volume management, including extended temporary production halts which combined with the lower revenue led to an underutilization of assets in Q1 this year with a high fall-through to adjusted EBITDA. To improve our performance in this space, amongst others, we have initiated the closure of the Chicago Heights plant in first quarter, which we target to complete in the fourth quarter of this year. The qualification of our U.S. customers for delivery from our Type 1 plants in Italy and India will carry on.

Furthermore, we have a comprehensive set of transformation GTO measures in Moulded Glass to improve operational performance. We have upgraded our Moulded Glass leadership team with our new Moulded Glass CEO, Daniel Winkler, to drive and accelerate the transformation. Let's take a look at the overall cash flow for the company on the next page, Page 12, please. The main drivers for the development from the EUR 66 million of preliminary EBITDA in the first quarter of 2026 to an operating cash flow of EUR 25 million were the changes in net working capital and our interest payments.

On net working capital, as explained, we successfully managed to limit our inventory buildup to EUR 5 million compared to EUR 46 million in first quarter '25. Our payables went down by EUR 54 million, around half driven by less reverse factoring lines available to us due to our lower credit rating at the beginning of this year. Collections worked well with EUR 46 million receivables reduction. On interest, on average, we paid around 4.4% interest on our gross debt of EUR 2.2 billion, resulting in a net interest payment of around EUR [ 16 ] million for the quarter.

On CapEx, as mentioned earlier, we significantly cut CapEx in half to EUR 57 million from EUR 113 million in the first quarter of '25. Please note that despite our better and very rigorous capital allocation, we spent EUR 37 million or 2/3 of the EUR 57 million total CapEx for growth projects. The operating cash flow of EUR 25 million less the CapEx spend resulted in a negative free cash flow before M&A of EUR 32 million. As mentioned, the best first quarter cash flow results since 2019 and more than EUR 100 million better versus first quarter last year. Our cash focus paid off.

On Page 13, I'll give you an update on our capital structure and financing status. On the left-hand side, you see our net financial debt of close to EUR 2 billion and our liquidity of EUR 342 million. This very solid liquidity level is fully sufficient and compliant with the covenants agreed with our banks under our stabilization agreement. On the right-hand side, you can see our maturity profile. Maturities at the end of this as well as at the end of next year will be more than covered by the expected proceeds from the divestitures of our business unit Centor and PPP. This gives us a very solid base for our debt refinancing, which we are executing with the support of our financial adviser, Lazard and of course, with the continued strong support of our current group of banks and debt holders.

Please turn to Page 14 for an overview of our upcoming events. On Tuesday of next week, we will be holding our Annual General Meeting. In September, we target to publish our final Q1 financials. In November, we expect to publish our half year results as well as our Q3 report. On the right-hand side of the page, we show selected Investor Relations events. And during September, we hope to meet you in person at one or the other of the listed investor conferences. Please turn to Page 15 for our closing remarks. Achim, please.

Thanks, Wolf. And let me close with the 3 priorities against which we expect to be measured. First, we will execute the signed Centor and PPP transaction on time and we will use the proceeds to reduce leverage and support the refinancing of the group. Second, we will deliver the operational transformation, including the targeted EUR 50 million to EUR 70 million annualized EBITDA improvement with implementation across 2026 and 2027 and the full run rate impact expected from 2028.

Third, we will continue to reshape the portfolio with the preparation of Moulded Glass for divestiture. However, as Wolf mentioned, there is still a lot of work ahead of us to do so. These actions are designed to, over time, create a more focused Gerresheimer with lower leverage, a leaner cost base, stronger cash generation and attractive positions in high-value primary packaging and drug delivery solutions. With that, I pass it back to Guido for our Q&A session. Guido, please?

Thank you, Achim. Operator, please open the floor for the Q&A session.

[Operator Instructions] The first question comes from the line of Oliver Reinberg from Kepler Cheuvreux.

Three questions from my side. First, on this transformation savings of EUR 50 million to EUR 70 million, can you just talk to -- is there any change to that? Because when you talked about earlier 200 to 400 basis points overall, I thought it's a bit more like EUR 50 million to EUR 100 million. So just getting some color, has there anything changed? Secondly, can you just provide some kind of details what actually happened in Tubular Glass, what these issues are?

And thirdly, I wonder if you can provide any kind of sneak preview of the future of Gerresheimer. I mean you will basically sell down half of the kind of business. What is actually the next step beyond that? And can you provide any kind of comment on the search for a new CEO?

Thank you very much, Oliver, for the 3 questions. I'll take the first one. Transformation savings, yes, quite frankly, nothing has changed here. The EUR 50 million to EUR 70 million that we are referring to indeed are somewhere worth around 200 to 400, 250 to 400 basis points margin improvement. Nevertheless, here, we're taking into consideration that Centor and PPP are divested. As such, you need to take the EUR 50 million to EUR 70 million rather to a reduced portfolio of roughly EUR 1.8 billion of sales. And then that margin improvement point range that you quoted, Oliver, is correct, right? Tubular Glass, maybe I hand it over to Achim that's in his basket.

Yes. Thanks, Wolf, and thanks, Oliver, for the question. On Tubular Glass, specifically in Europe, obviously, we have a comparably complex footprint of smaller plants. While the business is largely successful in the U.S. and North America as well as in China, there is necessity of restructuring and reshaping the footprint as well as refocusing the portfolio within Europe.

Great. And then maybe I take or start with the third question, which was on strategy, future of Gerresheimer, et cetera. I think we can only reiterate that both the divestiture of Centor and PPP as well as what we mentioned in terms of Moulded Glass, preparing carve-out, preparing a divestiture, still lots to do, to be very frank, lots to do, but still strategically divestiture of Moulded Glass will continue to drive the focus on high-value primary packaging solutions as well as drug delivery solutions. That's where Gerresheimer is going. That's where all our strategic work is aiming for, and that's the future of Gerresheimer.

And the CEO search...

Yes. I think I wanted to add, Oliver, on your question. Obviously, that's not in the Management Board's hands, but in the Supervisory Board's hands, and we will hear from them going forward.

The next question comes from the line of Falko Friedrichs from Deutsche Bank.

Firstly, you have not mentioned the full year guidance in your presentation. Is the adjusted EBITDA margin target still realistic after these Q1 results that were significantly below it? Then my second question, were you able to sustain your market shares while you were in cash preservation mode earlier this year? And my third question is, could you give us an indication on how much of the Tubular Glass business is in Europe and how much is coming from the U.S.?

Thank you, Falko. On guidance, correct, we're not commenting on guidance because there is no change on guidance. As such, guidance is intact. What we did comment on, obviously, is that step by step by step, we do see an improvement in second half versus first half, and we do see the first quarter results clearly in the low point of the year, right? Market share, that would take a little bit longer here.

Really, as you -- as we commented on the different segments, clearly, some grew nicely, for example, what Achim walked you through. On the other hand, in Moulded Glass, sales went down. And as such, that's the mix basket, we're happy to set up a follow-up meeting with you on that. Then in terms of moulded -- I think your question...

Tubular Glass.

Achim, maybe you can answer that.

Yes. Normally, we don't share details around the split of the regions. But clearly, the European region is much smaller than the U.S.

We now have a question from the line of Olivier Calvet from UBS.

Just a couple left for me. Maybe just starting with the EBITDA margin levels. Obviously, you're using new segments. We had some disclosures in June with your full year report. But we still have some pretty big deviations in margin levels also from the comparative period relative to the averages you've shown over the full year. So I just wanted to ask if you could perhaps give us some color on the margin developments you saw last year as a basis for forecasting for us for this year, perhaps in each of the segments, if you're able to do that?

And then secondly, just curious if you could give us a sense of the level of total CapEx you expect for the year. So I think base CapEx, if I recall correctly, you were calling around EUR 100 million or so. And just to give us a sense of how much growth CapEx as well you expect on top of that?

Thank you very much, Olivier. I'll start with, I think, the first question, which was EBITDA margin development. And I think the question out there or where you have the largest deviation year-over-year is Moulded Glass. So why don't I start with Moulded Glass and we take it from there, which also clearly had the biggest impact on the total Gerresheimer results. So quite frankly, to understand the EBITDA decrease year-over-year from first quarter '25 of EUR 32 million to first quarter [ '26 of EUR 6 ] million, one has to normalize to ensure an apples-to-apples view. So Olivier, if you don't mind, let's start with first quarter '25.

In the first quarter '25, as I mentioned, we increased inventory for the total company by EUR 46 million. And a good part of it was in Moulded Glass, which has favorably -- has a favorable P&L impact. So from the EUR 32 million EBITDA margin in the first quarter, I think you have to normalize around EUR 12 million or so. So you go from EUR 32 million, minus EUR 12 million to EUR 20 million as a normalized level for first quarter '25 for the inventory buildup. So if you take then the EUR 20 million, year-over-year, I mentioned that in Moulded Glass, we have faced around EUR 16 million lower sales impact. So that is around, I would say, EUR 8 million to EUR 10 million lower EBITDA comes out of that, especially since the sales decrease was in the higher-margin areas of pharma and cosmetics.

So you go normalization inventory build from EUR 32 million to minus EUR 12 million to EUR 20 million. And then really for lower sales, you go from EUR 20 million to roughly EUR 10 million to EUR 12 million first quarter last year, apples-to-apples view. The remaining EUR 4 million to EUR 6 million or so that to complete the walk to the EUR 6 million that we achieved in Moulded Glass in the first quarter '26, that is really negative cost leverage due to the low capacity utilization. It's a bit of mix and some other cost and efficiency items. That, I would say, completes the walk.

So in summary, of the EUR 32 million to EUR 6 million difference or EUR 26 million on a normalized basis, yes, around EUR 12 million is very strong cash management and inventory management in the first quarter of this year, EUR 8 million to EUR 12 million is volume related with pharma and cosmetics, including some mix and the remaining 5-ish or so is negative cost leverage, low capacity utilization, all of which I think are addressable. So I think one thing is to describe the first quarter. But if you don't mind, Olivier, I'll give you also a little bit what's going on in Moulded Glass going forward in terms of improvement of EBITDA.

I'd like to point out 5 drivers. One, I mentioned already, first quarter is seasonally our lowest sales quarter. Number two, we got a good part of our inventory reduction completed, some more to come, clearly, yet not with an as high impact as we have seen in the first quarter over first quarter last year. Number three, market recovery, as mentioned, especially pharma and cosmetic were down year-over-year, which we do expect step-by-step a gradual recovery towards the end of the year. Number four, mix with the pharma and cosmetics are higher-value products where there's food and beverage, thus the recovery in those markets improves mix.

And finally, number five, very important, the transformation, which both Achim and I walked you through, EUR 50 million to EUR 70 million EBITDA improvement for the total company fully by 2028. And I would say of that EUR 50 million to EUR 70 million, let's say, 1/3, even up to half of this is the potential in Moulded Glass. And a good example of this is closure of our site at Chicago Heights, where we lost EBITDA and cash over the last years clearly. So in summary, those 5 drivers we are focusing on. Those will help to improve results at Moulded Glass step by step. Lots of work ahead of us. We have our hands full, yet our Moulded Glass team led by Daniel Winkler is up to the challenge. Quite frankly, I think Moulded Glass is very central to the story of the first quarter and the margin impact. I'm not sure, Olivier, if you need the same picture here in also the other segments, up to you...

But I can add the positive note, Olivier, on Containment and Delivery Systems, where we've been able to improve margins by more than 2 points despite the strong measures that we also took, especially in PPP on the inventory side. And we expect that margin to further increase through the year. And if you look at Primary Injectable Solutions, where margin was more or less flat, we also see recovery opportunity as we flagged for the second half of the year. And I think your second question was around CapEx. So for the full year, we still continue to invest, and we split CapEx almost 50-50 in maintenance CapEx to restore the performance of our plants and productivity and 50%, we will continue to invest in growth.

No major change there, Olivier. You can do the math.

Okay. And just if I can -- I really appreciate the color. Just if I can come back to the levels you've published for the new segments in 2025. So from what you're saying, it sounds like sort of the EUR 20 million base in Moulded Glass as a base for Q1 at EBITDA and then essentially, you posted EUR 87 million for the full year. So no specific seasonality or any big moves that you saw as you were redrawing the segments is kind of the question I was getting to. And similarly for the other segments, just trying to understand a little bit how you're thinking of their potential seasonality, right, thinking of Primary Injectable in particular as well.

Yes. I think, Olivier, so I think the numbers that we put there for first quarter, as we mentioned, adjusted for bill and hold as well as the other corrections. So that's why that -- all of those adjustments and the cleanup work, which we're completely done with, that's included. And then secondly, in terms of seasonality, I think, as you know, the first quarter, as I mentioned, is our seasonal weakest quarter, because, as you know, we're -- you have that one month difference.

So for us, the first quarter, it is December, January and February. And those are, in many areas, those are just weaker, slower business activity months. And furthermore, I think we provided guidance and we just walked you through improvements that are underway. So where we clearly see that the second half of the year is stronger than the first half of this year, right? So that gives you hopefully some flavor for seasonality, margins you have, and we gave you some indication on various matters that we're working on.

Yes. Just a final one, sorry, but just on Primary Injectable Solutions, right? Basically, you've posted in Q1 last year, EUR 7 million EBITDA. You did EUR 70 million over the full year. So just wanted to understand how the year shaped up last year, right, as those are new segments.

Yes. I think as was said, Olivier, traditionally, Q1 has always been the weakest and Q4 being the highest with a little bit of a dip in summer, so the third quarter. So we expect definitely a much stronger second half also for Primary Injectable Solutions.

Yes. And then, Olivier, we ask for your patience. As promised, every time that we publish a quarter for this year, we'll give you again the full transparency towards the same quarter last year. As you know, we've adjusted the full year for all -- for order bill and hold and all the corrections. And then we now, every time we provide transparency towards exactly that picture for the same quarter last year. So we ask for your patience. And then when we discuss second quarter, first half, we can go into this in more detail.

The next question comes from the line of Delphine Le Louet from Bernstein.

Thank you very much both for the visibility you're giving us. But just to be sure and fully clarified on my side, when we think about the other impact that we have on both the revenue and the adjusted EBITDA, is it strictly linked to what we discussed about the Moulded Glass division? Or is there any other stuff we need to keep into the consideration? And secondly, previously, you were talking a lot about the ramp-up in Peachtree. Can we know exactly where we are now, how we are in terms of efficiency and yield? And if you do have anything for us to think about the rest of the year?

All right. I hope I got the question correctly. So I'm on the cash flow page, where we show adjustments. I think that's probably what you're referring to where we do the walk...

Yes. Well, I was more referring to the other, which is on the beginning of the page for the adjustment in between Q1 -- I mean, Q1 '25 and the new restated Q1 '25. So we have minus EUR 15 million on the EBITDA coming out from others. And so -- yes.

Thank you very much. I think we won't provide all the line item details. But already when we did the overall adjustment and restatement, we mentioned on the one hand side, you have bill and hold. And then in the other bucket, you basically have all other accounts, whether it is rebate accruals, other accruals, valuations and end. And as such, you clearly see bill and hold, the balance between revenue impact of EUR 11 million and EUR 5 million adjusted EBITDA impact is kind of what you would expect.

Obviously, in the other bucket, you have some adjustments, corrections that, yes, impact revenue, like I mentioned, for example, rebate accounting or other matters. But then you have also items that are purely having an impact on EBITDA, on earnings, but not on revenue, such as any inventory accounting or accruals or such matters, yes. We scrubbed fulsome through all the accounts and all of that is captured in this view. Good question.

And on the second...

Sorry for that, but just another clarification needed. Is it definitely more linked to what is happening into Moulded Glass? Or was it more linked to what is going to be sold in a way?

Sorry, I couldn't understand.

The rebates. No, but all the rebates you're talking about or all the activity, the commercial, let's say, restatement you have to do, which have an impact into the EBITDA, are they linked to the PPP mostly or mostly to the Moulded Glass? Or is it something that is really cross over the business in all the, let's say, 3 entities we used to have?

Fair question. No, quite frankly, we have adjustments to revenue and EBITDA spread across most segments. So I won't go into all those details. But yes, we really took our time to make sure everything is fairly stated across all segments and across the entire company.

And on the second question regarding the Peachtree ramp-up and efficiency improvements, obviously, it's a very complex ramp-up. We are making quarter-to-quarter improvements, and I'm happy to say that we have seen record months very recently. So you can expect also Q2 being better than Q1 Peachtree and then second half being better than first half.

We now have a question from the line of Edward Hall from Stifel.

I think one would just first of all be on asset utilization, which you've talked about. And I guess on Tubular and Moulded Glass, more specifically. I mean, obviously, now you've also got Q2 and Q3 sort of already almost historical. Could you talk about the asset utilization year-over-year and how this has changed even throughout this year? That would be my first question. And then second question would just be on the preliminary free cash flow number. And obviously, it mentions that this is including the business units under sale process.

So appreciate any guidance there with sort of the underlying business ex these divestments as well. And then just finally, more of a clarification for me, but you talked about high-value products. I guess it's been a while since this has been discussed at length, but maybe just to provide another sort of definition from your view and the mix in Primary Injectable Solutions.

All right. Edward, thank you very much for the question. So on asset utilization, I think it's tied to our cash focus, right? As I mentioned, a, you have seasonally, the first quarter is our lowest quarter in the year. And b, we were laser focused, as I mentioned, on cash. And with cash, that included also inventory management, as I pointed out, instead of a seasonal inventory increase that if you look at last year, EUR 46 million, we managed that deliberately to only EUR 5 million this year, right? And that, together with, in certain areas, a lower sales load clearly had an impact on asset utilization, which I think I gave you an example for Moulded Glass, where step by step by step, we see that improving.

And that is how -- I think that's probably fair across the entire company that because first quarter is our lowest point in the year, we do see a stronger second half versus the first half also for asset utilization. And we can think about providing a little bit more color at the next earnings call when we talk about first half results. And then I think what -- could you repeat, Edward line was a bit bad, your second question, please?

Yes. Sorry. Just on the preliminary free cash flow number and any comments you could provide on how that number would be different without the business units that are being divested?

I would say, Edward, let's do that when we've completed the transactions. Good question. But as you know, we don't provide guidance on a BU-by-BU basis. We provide on a segment level. And as such, we want to stick with those reporting lines. But I understand your interest, but we can't disclose that right now.

That's clear. And then just to follow up on the final question, just on higher-value products or solutions. Again, just maybe just to get your definition because there are different ones in the market and again, the mix that you guys currently have.

Yes, very good question, Edward. And yes, that's obviously out there in the market from different peers. I would say when it comes to our delivery solutions, we consider almost all our portfolio a high-value solution where we have high levels of differentiation within that segment. And when it comes to syringes and tubular, I think there is a more standardized division on, definition of what is considered RTU, RTF and products for biologics, but also GLP-1. Here, we are still working through the right definition ourselves and the percentages of our portfolio. So hang in there with us before we can disclose.

The next question comes from the line of Odysseas Manesiotis from BNP Paribas.

Could you help me arrive to the below 3 leverage target post Centor and Plastics sale? Or just if you could give me a feeling of what the net cash proceeds from the EUR 1.5 billion EV will be? And if you could give us a feeling on the EBITDA margin for the RemainCo implication of that below 3 target, it would be very helpful as well. And lastly, could you give us a feeling of whether that's a late '27 target or something that you can achieve right after the sale? And secondly, on -- could you remind us what percentage of your COGS are related to oil prices? And to what extent you're hedged for this year and next year?

All right. Thank you very much. I'll take the first question here. So how do we get to leverage below 3? And when do we expect to -- timing-wise to complete our refinancing. I'll start with the last question first. Refinancing, I think you're right. We target to complete that absolutely in parallel to closing Centor and PPP. As you know, we target to close Centor first and then PPP next. And as we mentioned, it would be PPP closing in the first half of 2027. So that would also be my answer completely aligned upon closing PPP, we'll have our refinancing ready to go. So we're already heavily working on this.

In terms of leverage, well, you know where the leverage is today, right? And you know we have a page in there what our debt is. So you can do the math what it takes to get below 3. I think Achim mentioned that the enterprise value is at or slightly above EUR 1.5 billion for the 2 businesses combined. And then you can do the usual gross to net adjustments for some taxes, obviously, as well as for some transaction costs. But rest assured that the gross to net is fully sufficient in order to get our leverage below 3.

I think the second question was on EBITDA RemainCo, right? So obviously, we are disposing 2 parts of the Containment and Delivery Solutions. And we're selling 1/4 of the company, there's also a duty to reduce SG&A in line with the size of the business that is disposed. However, the target of our EBITDA percentages and the improvements that Wolf laid out from the transformation programs are aligned, so expectations are that we're going to land at a sustainable level and grow from there.

And when it comes to the percentage of cost of goods sold based on oil price, around 50-50 of our business is directly connected to polypropylene, polyethylene, polyester raw materials. 50% is more glass-based. Also there, of course, you have the impacts from energy costs. But if we stick to the raw materials, 50%. However, a lot of that is going to be disposed, and we have protections through pass-through agreements with our customers.

Thank you for the question.

Can I sneak in a last one? One of the 2 pharmas leading the GLP-1 space announced a few supply contract cancellations on lower demand expectations and potentially some recent unfavorable clinical readouts. Do you expect this to be any -- to have any impact on your hopes of utilizing recently added capacity?

Sorry, Edward. -- no, sorry, we could barely understand it. The line was very bad. Could you repeat the question a little bit slower? Maybe the line will get better.

Yes. Can you hear me now?

We can hear you just slowly and then that would be great.

Of course, yes. So one of the 2 pharmas leading the GLP-1 space announced several supply contract cancellations on lower demand expectations and potentially unfavorable clinical readouts. I wanted to ask whether that has impacted your expectations on growth and utilization for recently added capacity.

Okay. Good question. So far, we have not seen demand cancellation. Also, as you know, I think at one of the other call before, we have clearly pointed out that we have strong commercial contracts, particularly in the GLP-1 space with take-or-pay structures. So we do expect our growth to continue. As we mentioned, right at the very beginning, I walked you through our grow, fix, sell structure. And so on the growth, we have Medical Device Systems. We also have Syringe, and we have Tubular Glass North America. And that's where we see continued growth and also clearly see growth over the next years. So I can't confirm that we see here cancellations based on what you described.

[Operator Instructions] We now have a question from the line of Christian Ehmann from Berenberg.

One for the history of, let's say, looking back. The Centor sale and the PPP sale were, let's say, above the -- what you initially guided on, so only selling Centor. I was just curious about the strategic rationale to now sell both. Obviously, you had a good price for both, but maybe you can give us an idea how you then decided to sell both of those businesses.

And the second one would be going forward, appreciating the CapEx rate, let's say, 11%, 12% of sales going forward. Is this a level you can maintain to keep, for example, Moulded Glass in a sellable state? And the third one would be of refinancing. Maybe you could give us a guidance about the interest rate you expect to refinance for.

Thanks, Christian. Let me take the first question on the combined sale of Centor and PPP with 2 separate contracts. I'd say that was an opportunistic play that was offered by Apax as part of the process of the Centor sale and helped us to reduce debt in one shot by around 70%. So therefore, we took that opportunity based on good valuation in the current market environment.

Great. And then CapEx spend and going forward CapEx spend, particularly in Moulded Glass. So Christian, I think it's fair to say that you've seen in the last years or so an elevated spend of CapEx also in Moulded Glass. As you know, we have completely overhauled and invested in a hybrid technology at our Moulded Glass facility, for example, in Lohr in the south of Germany. Nevertheless, if you look at the top peers or so in that space in Moulded Glass, they managed to spend 10% of sales as CapEx on a sustainable basis, and we strive to do the same and align with the top peers.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Mr. Guido Pickert for any closing remarks.

Well, thank you very much for your interest. And if you have remaining questions open, you know where to find us. And as said before, we would be happy to meet one or the other of you in person on the conferences and our activities going on in September and October. And with that, thank you very much, and bye-bye.

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

Thank you, operator. First of all, I would like to impress a thank you, a very big thank you for your continued support of Gerresheimer. We have not had an earnings call for quite some time as we fully focused on completing our investigations and ensuring clean, robust and especially compliant set of 2025 financials. This was accomplished today, and we were able to publish our audited 2025 annual report. Our Management Board will explain our results in more detail.

First, on the disclaimer. Please let me remind you that the disclaimer you can find in our full year 2025 slide deck will apply throughout this earnings call, and we assume your content to this -- consent to this. I will, therefore, not read it out loud. Please allow me some selected clarification. Due to rounding, numbers presented throughout this report may not add up precisely to the totals indicated and percentages may not precisely reflect the absolute figures for the same.

Organic revenue and organic adjusted EBITDA include the revenues and adjusted EBITDA of Bormioli Pharma in both 2024 and 2025, which we acquired in December 10, 2024, and fully consolidate from the beginning of the financial year 2025, translated at the budgeted exchange rates for the financial year 2025.

Thank you. And now let me introduce today's speakers on Page -- I'm glad that we have all three members of the new Management Board with us today: our CEO, Uwe Röehrhoff; our CFO, Wolf Lehmann; and Achim Schalk, the third member of our Executive Board. Our new Management Board is setting the tone from the top with a clear focus on governance, disciplined execution and transformation. Please note that the Q&A session will be opened at the end of the presentation.

Now let me turn over to Uwe Röehrhoff, CEO of Gerresheimer, who returned to Gerresheimer in November of last year. Uwe?

Thank you, Guido. Good afternoon, everybody. Please turn to Page 4 of the presentation. I can only echo what Guido mentioned. As a new Management Board, our main focus right from day 1 has been on governance, cleaning up and driving transformation. It took quite some time and resources to complete all compliance investigations very thoroughly, whether on bill and hold or various investigations on different compliance controllership concerns, including extensive forensic investigations.

We shared progress transparently as required along the way in our ad hocs. Please note, all findings have also been shared transparently with our auditors, KPMG, as well as with the authorities, BaFin. All investigations are now completed, fully booked and reflected in the financials we filed earlier today. Our banks, our creditors recognized we needed some extra time that clearly acknowledge our efforts and supported us broadly.

They have given us time up to Q4 '26 before the leverage covenant becomes effective again. We are using this time rigorously to sell Centor and refinance the debt of the company. We are on track to sign and close Centor in our financial year 2026, latest by November '26. On the refinancing, we are working together with our adviser, Lazard, and of course, our supporting banking partners. Selling Centor and refinancing goes hand in hand and is vital to improve our capital structure. So far, we can report good progress. Our transformation initiative, Gerresheimer Transformation Offensive, gto is essential to improve our overall competitive position. We have more detail on our approach for you later in the day, below on guidance. We have a dedicated page coming up.

Let me turn it over to Wolf to tell you more about the findings and corresponding corrections.

Thank you, Uwe. Let's turn to Page 5 on the corrections of 2024, our 2024 restatement. All corrections have a net impact on 2024 restated revenue of minus 2% or EUR 45 million and EBITDA of minus 7% or EUR 31 million. This is slightly higher impact compared to the prior announced interim status update of EUR 35 million revenue and EUR 24 million EBITDA impact back on 10th of February.

Findings from all investigations are included, bill and hold supported with external specialists, various investigations also including forensic investigation as well as our own findings. Similarly, we had already communicated we would impair selected assets for around EUR 220 million to EUR 240 million, mainly stemming from impairing certain development projects of Sensile Medical AG, that is our business unit, Advanced Technologies as well as assets of our Chicago plant. The final amount is EUR 258 million, also a slightly higher final amount as we completed the analysis.

Note for parts of this complex impairment analysis, especially around Sensile, we hired an external accounting expert to get an appraisal to ensure we state the accounts correctly. We truly took matters seriously, invested time and resources to get matters right. On the BaFin investigation, we continue to fully cooperate with the authorities. We work very transparently and have shared and are sharing the results of the now completed investigations and our final accounts. We have received three requests from BaFin for information around year-end 2024 and one on first half of '25 so far, yet we expect a fourth and second request, respectively, which makes sense to us to push progress towards closure. Again, we fully and transparently cooperate with the BaFin authorities. Next to correcting 2024, we focus on ensuring 2025 is correct, and we will provide our annual accounts to the highest standards.

Please move to Page 6, the corrected as-reported numbers for 2024 as well as 2025. Please remember, Bormioli was acquired in December 2024 with the first month of financial year 2025. Remember, we are one month ahead, which means 2024 is shown excluding Bormioli and 2025, including the acquisition. Also numbers are shown with the foreign exchange [ as is ] actual. On revenues, as reported, we grew sales to EUR 2.3 billion, up by around EUR 330 million. The top line growth is net-net driven by the acquisition of Bormioli. The organic growth was approximately flat, up 0.3%. The growth by segment varied. Organic growth of up plus 5% in Plastics & Devices was largely offset through around 6% lower revenues in Primary Packaging Glass due to the weaker sales in oral liquids and cosmetics as reported multiple times last year.

On EBITDA, the positive revenue trend did not fall through to EBITDA. The results, including the acquisition was approximately flat year-over-year, slightly down EUR 4 million. In Primary Packaging Glass, moulded glass volumes were down. At our Chicago plant, we had operational issues running the furnace. As you know, this year, 2026, we made the decision to close the plant at Chicago Heights. Also at our largest glass plant at Lohr, we faced challenges during the ramp-up period for the new furnace causing inefficiencies.

In Plastics & Devices, EBITDA in most business units was flattish, yet Syringe sales increased, including GLP-1 related sales yet were offset by Primary Packaging Plastics with a decrease due to lower oral liquid volumes, which we have explained before. These downsides mainly at Primary Packaging Glass offset the roughly EUR 60 million contribution coming from the addition of Bormioli.

Let's move on to Page 8 with the pro forma 2024 numbers, including Bormioli already in 2024 to get closer to an apples-to-apples view, similar to the basis for our guidance. Upfront, let me cover how results came in with our -- versus our last guidance for 2025. Organic revenue growth, we expected negative 2% to negative 4%. We came in quite flat, up 0.3% organically, thus on a normalized as planned FX rate basis. Adjusted EBITDA margin, we guided towards 16.5% to 17.5%. And our final results are 16.8% within the range. On earnings per share, EPS, we had estimated high double-digit decline or negative earnings per share. And finally, we are at a negative EUR 1.65 earnings per share.

On the next two pages, we will go in more details referring to revenue on EBITDA drivers by segment. Yet quickly on the overall company. Revenue reduced from approximately EUR 2.340 billion to EUR 2.320 billion, with Plastics & Devices up around EUR 50 million and Primary Packaging Glass down around EUR 70 million for a net decrease of around EUR 20 million. EBITDA year-over-year pro forma Primary Packaging Glass down EUR 56 million and Plastics & Devices and GAT combined down EUR 10 million year-over-year. For transparency, as 2025 is the first year of the acquisition of Bormioli Pharma, we show the year-over-year trend of Bormioli pro forma marked in the dotted line area. Revenue decreased for Bormioli Pharma pro forma from EUR 349 million to EUR 331 million, down EUR 18 million, mainly on the Plastics Packaging side. EBITDA quite flat from EUR 62 million to EUR 61 million adjusted EBITDA. Please note, Bormioli is split up and fully integrated into our segments. As such, we show this onetime for transparency reasons, but we won't do this going forward.

Let's talk about the results by segments [ please ]. Let's move on to Page 9, showing the results of the Plastics & Devices segment. Just to remind you, this includes syringes, Medical Devices, Centor and Primary Packaging Plastics. Overall, Plastics & Devices grew year-over-year by around EUR 50 million to just under EUR 1.35 billion. Yet the revenue growth did not fall through and EBITDA came in slightly down by minus EUR 5 million and ended with EUR 315 million. EBITDA margin reduced to 23.5%, yet still a decent level of profitability. This reflects a mixed performance across the segments. By business unit, syringes, the EUR 32 million year-over-year revenue fell through to EBITDA and yielded plus EUR 8 million.

Medical Devices delivered year-over-year EUR 25 million growth from major projects like autoinjectors and pens, yet as we ramped up, especially our U.S. Peachtree facility and are fully staffed, we have not yet seen sufficient incremental plant loading and revenue to fully cover the incremental year-over-year cost, resulting net in year-over-year EUR 2 million less EBITDA. Primary Packaging Plastics year-over-year revenue was down by EUR 8 million, driven mostly by oral liquids and EBITDA by EUR 10 million since next to less revenue falling through, also reducing inventory and therefore, production as well as unfavorable mix impacted earnings. Finally, Centor finished with pretty stable year-over-year trends.

Uwe, would you mind covering Primary Packaging Glass segment, please?

Yes. Let's move on to Page 10. The results of Primary Packaging Glass segment for the old segmentation, Primary Packaging Glass is moulded glass and tubular glass. Overall, year-over-year in Primary Packaging Glass '24 to '25, we recorded about minus EUR 70 million less sales, down to EUR 983 million and less EBITDA of EUR 56 million year-over-year, down to EUR 126 million. Subsequently, adjusted EBITDA margin reduced to 13% Clearly, PPG performance is not at an acceptable level. Looking at the drivers by BU. Moulded glass reduced revenues by around EUR 52 million, driven by declines mainly in cosmetics and oral liquids. The EBITDA was even slightly higher -- the EBITDA effect was even slightly higher with minus EUR 54 million.

Next to the lower sales and earnings falling through, significant operational issues at the U.S. plant at Chicago Heights as well as ramp up challenges at the largest glass plant in Lohr resulted in meaningful inefficiencies and lower EBITDA. In tubular glass, lower revenues with standard ampoules, vials and cartridges were not fully compensated by growth with higher-value products. However, the favorable product mix helped to keep the EBITDA flat year-over-year despite the revenue decline.

Let me hand it back over to Wolf to walk you through cash flow.

Let's move on to Page 11, the usual EBITDA to cash flow walk. From EUR 384 million adjusted EBITDA down to operating cash flow at EUR 210 million, a 55% conversion rate. The main drivers in this walk are the just over EUR 70 million adjustments or exceptionals and EUR 101 million interest paid. Under adjustments, we grouped items that are so-called exceptional items on a run rate basis view. Main drivers are roughly EUR 18 million restructuring and reorganization, mainly the closure of our site at Bad Königshofen, EUR 27 million plant and furnace ramp up costs, capturing mainly Peachtree and Lohr ramp ups. Also around EUR 12 million M&A and refinancing costs, mostly around the acquisition of Bormioli.

Net working capital was up EUR 22 million and taxes down EUR 31 million as well as others up EUR 7 million, more or less offset each other, leaving EUR 101 million interest to get down to operating cash flow of EUR 210 million, as mentioned. CapEx stood at EUR 295 million. We show the split between base and growth of around 1/3 base, 2/3 growth. And also for the two main segments, Plastics & Devices and Primary Packaging Glass, resulting in negative EUR 86 million free cash flow before M&A. On the next page, we review how the financial results, including cash flow, impacted our capital structure and financing status.

Please turn to Page 12. On the left side, you see our usual update on financial debt and our adjusted EBITDA leverage shown in the left lower corner, stood at year-end at 4.95. The adjusted EBITDA leverage covenant is no longer applicable up to and including third quarter of 2026, yet we would have been compliant at year-end. Looking on the right side of the page, we show the upcoming maturities over the next quarters and years. As explained earlier, we're working on improving our capital structure through divesting Centor as well as a fulsome debt refinancing for which we mandated Lazard to support us. In our next chapter, we would like to review the latest guidance with you, talk about our transformation initiative and various housekeeping items before Uwe Röehrhoff closes with a summary and next steps.

Please turn to Page 14, our latest guidance. As you know, we closed last year at around EUR 2.3 billion and 16.8% EBITDA margin. Due to the challenging economic environment, some project delays on the part of our customers and operational challenges, among others, those related to production ramp ups, we now expect revenues to be in the lower half of the EUR 2.3 billion to EUR 2.4 billion range, an adjusted EBITDA margin of approximately 17% to 18% and taking into account, amongst others, a reduced factoring volume, free cash flow before M&A between negative EUR 50 million to negative EUR 100 million.

During the last 6 months, our focus has been on cash generation, and this is going to be our priority #1 for this year. We expect to deliver an acceleration of revenue growth and margin improvement during the second half of the year with first contributions of our transformation initiative, our gto initiative. Our customers have continued to support us during this phase of challenging news and uncertainty, and we'd like to use this opportunity to thank all of them. Next, we want to give you an update on our transformation initiative, gto, where we expect first impacts to come through in this year, which is one of the main drivers improving our profitability margin year-over-year from 16.8% to around 17% to 18% in this year. Achim, please.

Please turn to Page 15. We had to refocus the program on fast payback and cash conversion until the sale of Centor and our targeted refinancing is completed. With this focus, we expect to yield EUR 10 million to EUR 20 million EBITDA, equaling 50 to 100 basis points EBITDA margin improvement during this year. This is an important first step, however, with significantly larger potential midterm. Overall, the project covers five work streams, of which four are focused on profitability improvement.

A few examples. For operations, optimizing our global footprint is part of this work stream, fewer sites in the right locations. The Bad Königshofen site was already closed last year. The Chicago closure announced for this year, and we are currently analyzing additional measures. Having the right staffing levels at our sites, but also as addressed in workstream 2 for SG&A and our administrative functions will drive cost efficiency. In procurement, immediate focus is the bundling of our purchases across our segments and business units, which we have not leveraged enough in the past. Our transformation partner, BCG INVERTO brings valuable expertise in this field.

Finally, on Work stream 5, cash optimization. Immediate focus is on strict capital discipline as more CapEx rigor is key. In addition, classic work with a short-term focus on collections, adequate supplier terms as well as reducing slow-moving inventory, which is tying up cash. We have fully staffed our gto initiative and are executing. The program will accompany us through the entire next year '27 and also into '28.

Turn over to page 16, the new segmentation since 1st of December '25, our start of the financial year 2026. Starting on the left with our largest segment, Containment and Delivery Systems, covering currently around 50% of sales. Included are Primary Packaging Plastics, Medical Device Systems, Advanced Technologies and Centor. As we are selling Centor, after the divestiture, the segment still represents a bit over 40% of the total sales of Gerresheimer. Primary Injectable solutions covering syringes and tubular glass represents around 20% of our sales, focusing on serving our customers through high-quality glass-based drug delivery solutions.

Finally, moulded glass, we separated and run as our third segment. We have not yet decided on the timing of the announced divestiture, yet are progressing on forming a stand-alone moulded glass business. We have refreshed and upgraded the leadership team significantly and have hired a commercial leader, a new CIO. And just this month, our new business unit CEO, Daniel Winkler, started. Our first quarter '26 reporting will follow the new segmentation.

Talking about next reporting time lines, I hand it back to Wolf with Page 17. Let's please go to the next page.

Thank you, Achim. On Page 17, on the left is our financial calendar and on the right, selected investor conferences we plan to attend. Q1, we estimate earliest July or rather August publication. The challenge is to ensure all findings and corrections in 2025 get properly accounted for by quarter. First half, we estimate for September or October. And third quarter for October might be a bit tight, but hopefully then back at our usual reporting rhythm.

Our Annual General Meeting, we have currently planned for 1st September, details to follow. Referring to the new -- referring to the investor conferences, you see selected ones we plan to attend on the right side of the page. We sincerely apologize for various cancellations of participations at conference over the last month, yet we had to fully focus on getting all investigations done and obtain audited financials.

Let me turn it back to our CEO, Uwe Röehrhoff, for closing remarks and next steps.

Yes. Please turn to Page 18. So we have cleaned up. We have completed all investigations transparently, and that is why we have achieved an unqualified audit opinion for 2025. Nevertheless, it is very clear, as written in the auditor's report as so-called emphasis of matter, we have two must rules, sell Centor and refinance our debt. We are laser focused on those two. Both go hand-in-hand and both we want to get done this year.

On gto, we are getting first impacts coming through in the second half of '26, supporting our margin improvement year-over-year with much more potential in sight to get Gerresheimer performance back to the levels of the top performers in the industry. And beyond selling Centor and moulded glass on a total portfolio level, we are continuing our strategic review process and dialogue, including our Supervisory Board. I would like to again thank you for your support of Gerresheimer during these demanding times.

Guido, please open the call for Q&A.

Thank you, Uwe. Thank you, gentlemen. Before we open the Q&A session, we would like to ask you to limit the number of your questions to two in order to allow everyone to ask their questions. Operator, please open the Q&A session with the instructions. Operator?

The first question is from Olivier Calvet from UBS.

He's disconnected. I continue with the next question. Please try again. I don't know what happened. The next question is from Oliver Reinberg, Kepler Cheuvreux.

Can you hear me?

Yes. Please go ahead.

That's perfect. A few questions on my side. One on free cash flow. With the free cash flow guidance for 2026, can you just provide any kind of color, a, like what is the contribution here from Centor that is still embedded in this kind of guidance? And also any kind of color when you expect to turn free cash flow positive?

Secondly, on the BaFin investigation, is there any kind of insights you can share with us?

And thirdly, on a potential rights issue, would you still rule out any kind of use of equity going forward?

Okay. Can you hear us again?

Yes, I can hear you.

Mr. Oliver? Okay.

So back to your question on free cash flow. So currently, we have the negative EUR 50 million to negative EUR 100 million is excluding proceeds of Centor. And as we mentioned, we assumed Centor signing and closing in this year towards the end of the year or so, right? Then, BaFin...

Does it include the cash flow from Centor or not? Independent, I'm not talking about the divestment gains. I'm just talking about the...

Yes, it includes the operational cash flow of Centor, but it does not include the proceeds from selling Centor. Correct.

And any color on what contribution you expect from Centor because that's going to go? I mean, are we talking EUR 50 million roughly?

Say that again, Oliver?

Sorry, can you just give us any kind of color what would be the kind of cash flow contribution from Centor just to get a kind of feeling where cash flow would be without the Centor.

No, Oliver, we -- as you know, we don't provide financials down to the BU level. We stay on the segment level.

Then your second question on BaFin. As I mentioned in the discussion, we fully cooperate with BaFin, and we're making great progress. And we take it from there, and we continue to do so. All I can only repeat, we are completely done with our investigations, whether it is our external investigations, whether it's on bill and hold, various other matters as well as our internal investigations, we're entirely done. All of those findings are reflected in the 2024 restatement as well as our 2025 financial accounts. And all the findings we have very, very transparently shared with BaFin with the authorities.

And your third question was around rights issuance. As mentioned, currently, we're looking at a debt refinancing where we have mandated Lazard to support us, and that's our focus. Thank you, Oliver.

Can I just ask in terms of when you expect free cash flow positive, any kind of breakeven cash flow, any kind of color on that?

That's fair. I think we had our last guidance for 2026 that was for this year. I would say if it weren't for the lower factoring that we're now seeing, it would have already been the result. So we take it from there. We're not yet providing further midterm guidance. As such, let's see next time when we provide midterm guidance, let's talk about it then.

[Operator Instructions] The next question is from Olivier Calvet from UBS. The floor is yours, Olivier.

Hopefully, second time works better. Yes, just could you highlight specific areas of weakness that were the additional driver to the 2026 guidance cut? And then I just wanted to also come back on the free cash flow guidance. So I think your EBITDA guidance at the midpoint means about EUR 30 million cut. You mentioned less factoring. The CapEx, you didn't really touch on, but for the full year, you had talked to at least a base CapEx of close to EUR 100 million at the last results. So just wondering if you could add a bit of detail there.

Thank you very much, Olivier. Good to talk to you again. I think in terms of guidance, I think we have mentioned that due to what we saw so far in the first half of the year, a challenging economic environment and also some project delays with our customers and some operational challenges that had to do with finalizing the ramp ups. That is why we now lowered the guidance to the lower half of the range that we mentioned before, right? This is on revenue.

And then you had mentioned cash flow also. Cash flow, the reason for changing the guidance is very much and mainly driven by our latest expectations on factoring and factoring goes one-to-one against working capital, and that impacts the cash flow.

On the rest, if you say, on CapEx, no, on CapEx, we have a very strict capital discipline that we've much improved. And there, we rather spend less than previously planned.

Any sort of ballpark level you're looking to spend this year on CapEx?

No, we don't provide guidance on that right now.

Okay. And just on the revenue side of things, could you perhaps specify -- I mean, you changed the segments. There's just a question on what is kind of deteriorating? Is it within containment, within primary injectables, within moulded glass or a combination?

I think what we can do is you're right. Achim walked you through the new segmentation. We'll provide more details when we publish our first quarter results. That will be the first time when we publish results by the new segmentation.

Operator, next question.

Next question is from Richardson from Jefferies. Mr. Richardson, the floor is yours.

Just checking you can hear me.

You coming?

Can you hear me okay?

Very well.

Okay. Super. Maybe just two from my end, if that's okay. In the annual report, it details that the covenants while suspended for the rest of this financial year should have a target of 4.75x by the end of the year, which you will be held to us. I was just wondering whether this is an upper limit and what management's attitude as to how far below this target you hope to decrease the leverage?

And just a second question, the decline in the PPG business margin was quite significant despite the Bormioli portion of that business increasing its margin from 14% to 18%, which implied the underlying business declined margin-wise to the degree of around 6.5%. I was just wondering what the causal factors were there because sort of a weaker end market seems like only a small portion of that contribution.

Thank you, Chris. Let me take the first question. I hope I got it right. The voice was a little low. But I think your question was that by year-end, we mentioned that we should have an EBITDA leverage covenant at 4.75 and how far below we would be against that. So good question. Now it's a very theoretic question, quite frankly, Chris, because as we mentioned multiple times, our current focus is we're going to sell Centor, and we're going to do a fulsome debt refinancing. And as such, it's a very theoretic question as to where we're going to be against those prior applicable debt covenants.

So as I mentioned, we were debt even if we were under the old covenants, we were compliant at year-end of '25. As such, that's a very theoretical question. Again, our full focus is on selling Centor and then that would be a big step forward for the capital structure. And then we do a fulsome debt refinancing where I think we see very good opportunities in the institutional market as well as on the private side, and we will keep you posted on progress. And then I believe there was a second question on PPG.

Maybe I'll hand it over to Uwe to answer that one.

Yes. Thanks, Chris, for the question. I think that was a very good observation. Obviously, the businesses in the legacy PPP businesses are the ones that cause us the largest amount of headache. And therefore, those businesses are also in the focus of our restructuring activities. We made a very quick decision on shutting down the Chicago plant that still operates for a significant part of this year, but it has -- it is clear that this plant has had a negative contribution on our performance.

Secondly, we have a very strong focus on inventory reduction in our businesses that have led us in combination with our cash focus to tighten the production policy to address the inventory part. So -- but to where the margin needs to be, we have taken significant steps in the restructuring. First of those will hit in the second half of this year and mainly then also in '27 to bring the margin of the tubular glass legacy business and particularly the moulded glass business was the main driver back to up to respectable levels. But that is going to take a bit time.

[Operator Instructions] The next question is from Falk Sinß from FINANCE.

My name is Falk Sinß from FINANCE Magazin. I have two questions for the sale of Centor. How much do you hope to raise from the sale of Centor? And do you have a plan B in case the sale doesn't generate the desired proceeds?

I think Mr. Richardson has a follow-up question. Mr. Richardson, the floor is yours if you have any follow-up questions.

Yes. Sorry, I thought I would ask a follow-up. Just staying on Bormioli, I thought I'd query the decline in the margin of the Bormioli business in Plastics & Devices, which was 22.5% in FY '24 and is now 18% this year. And if I could squeeze in just another one after that, the decline in free cash flow to EUR 50 million to EUR 100 million is -- well, EUR 50 million plus versus the moderately positive free cash flow previously. I was just wondering what proportion of that is due to the reduction in the factoring activity as well? Is it the majority? Or is it quite a minor impact with the rest coming through from the operating performance of the business?

Yes. I think let me take the last question first. So absolutely, the majority is due to that due to factoring. And this is a combination of also within the factoring bucket, the majority, 80% we see in reverse factoring, so-called Cflox program that are not fully available to us. And then the rest is regular receivables factoring where we do less. We expect to do less in this year.

And then your other question, I believe, was on Bormioli.

In the Plastics & Devices module.

Was it on Plastics & Devices? Yes, I can comment also, if you like, a little bit on that and then also Achim and Uwe can chime in. But I think if you go to our Page 8, sorry. You see in the dotted line, you see year-over-year Plastics & Devices, a negative EUR 16 million of revenue. And you do see for Plastics & Devices correspondingly a negative EUR 11 million EBITDA. So that is -- I think your question is that seems to be a quite high sales to EBITDA fall-through.

I think that's correct to lose EUR 11 million EBITDA on EUR 16 million revenue is high. But you need to understand there that we partially have very modern, very automated plants. If you were to visit, for example, our operation in Rivanazzano in Italy, this is a very highly automated operation. And the fact that if you have then a little bit less plant loading, it really falls through at a high EBITDA range. On the other hand, please note, obviously, the other way around too. Once our growth initiatives are kicking in, you will see exactly the opposite.

Thank you. With that, we will close our call today. We are very happy to have follow-up calls with you. You know where to find us. Thank you, and bye-bye.