Gestamp Automocion Aktie

Good evening, and thank you very much for taking the time to attend the first quarter results of Gestamp. I am Ana Fuentes, M&A and IR Director.

Before we begin, let me refer you to the disclaimer on Slide #2 of this presentation, which has been posted on our website and sets out the legal framework under which this presentation must be considered. The conference call will be led by our Executive Chairman, Mr. Francisco Riberas; and our CFO, Mr. Ignacio Vazquez. As usual, at the end of the conference call, we will open the floor for Q&A session.

Now let me hand the call over to our Executive Chairman.

Good afternoon, and thanks for attending our call. In Q1 2026, the key highlights for us is, in terms of revenues, we have EUR 2.8 billion in revenues, which is flat compared with Q1 2025 at FX constant and clearly outperforming the market. In this period, we had a solid EBITDA in this first quarter of EUR 307 million, which is 10.8% margin in the quarter, which means 52 basis points better than the Q1 2025. And of course, in this quarter also, keep on delivering on Phoenix Plan, which is clearly giving us the message that we are right on track, even if the market in North America remains lower than expected.

Referring to the market, global vehicle manufacturing in Q1 has been weak, reaching 21.5 million units, which is 3.4% below volumes in Q1 2025, but similar to the volumes in Q1 2024. Even if vehicle manufacturing in this quarter has been reduced in North America and also in Western Europe by 2%, this quarter shows a very significant drop in China of close to 10%, which is driven mainly by lower domestic sales in that market.

This quarter, Gestamp sales have outperformed the market by 2.3%. As far as the market, in our footprint has gone down by 2.6%, while Gestamp sales at FX constant has been almost flat compared with Q1 2025. By different geographies; in Europe, our solid sales in Eastern Europe has offset a slight underperformance in Western Europe. We have had a slight outperformance in North America. In Mercosur, our sales have underperformed the market due to lower volumes in some of our projects. And in Asia, we have done better than the market, which has been a little bit behind.

If we go to Slide #7, in terms of our reported revenues in Q1 2026, we have reached EUR 2,834 million, which means a decrease of 5% compared with Q1 2025. Most of this decrease is due to a negative ForEx impact of EUR 137 million, which is due to the revaluation of euro versus our main currencies in Q1 2026 versus Q1 2025. With a slight negative impact coming from the scrap prices, which is leading to this minus 0.3% organic growth in the quarter despite clearly outperforming the market.

Even if sales are down in Gestamp Auto business, profitability has increased. In fact, with 5% less sales in the quarter, our EBITDA margin has grown from 10.4% in Q1 2025 to 11% in Q1 '26. We have been able to achieve this improvement in a declining market due to implementation of many flexibility and efficiency measures and also thanks to the large improvement coming from the Phoenix Plan in North America. So following a positive quarter, we are now fully committed to achieve the full year '26 EBITDA margin of more than 11.9% in our Auto business, which was the guidance that we provided some months ago.

As already mentioned, we keep delivering on the Phoenix Plan as a key priority for Gestamp. Even if the vehicle manufacturing volumes in this quarter, both in U.S. and in Mexico have been below expectations, the EBITDA margin of our operations in North America has increased from 6.4% in Q1 '25 to 7.1% in Q1 2026. Each quarter, we are improving and consolidating a positive trend that is going to lead us to achieve the commitment for full year 2026 of more than 10% EBITDA margin.

In Slide 10 for Gescrap, following a negative trend in scrap prices during 2025, in Q1 2026, scrap prices, mainly in Europe, have increased. Comparing with Q4 2025, the revenues of Gescrap in Q1 '26 has increased by close to 12%, and our EBIT margin has improved from 3.9% to 6.4%. We expect an increasing trend on the scrap prices during 2026, which should help scrap profitability for the year.

And now with this, I hand it over to Ignacio Vazquez.

Thank you, Francisco, and good evening to everyone. Moving on to Slide 12. Let's have a closer look to our financial performance in the first quarter of 2026. We have reached revenues of EUR 2,834 million, which entails a 5% decrease when compared to the EUR 2,983 million from Q1 2025. Revenues continue to be strongly impacted by ForEx impact in most of our geographies, while organic growth has been almost flat.

In terms of EBITDA, we have generated EUR 303 million in Q1 2026, meaning a 10.7% margin. Excluding Phoenix impact, EBITDA, in absolute terms, would amount to EUR 307 million, therefore, an EBITDA margin of 10.8%. We have achieved a margin expansion of 60 basis points quarter-on-quarter or 50 basis points, excluding Phoenix impact. Reported EBIT decreased by 5% year-on-year to EUR 114 million, with an EBIT margin flat year-on-year of 4% as a result of higher one-off amortizations in the period, which I will explain in the following slide.

Net income in the quarter has been EUR 49 million that compares to the EUR 27 million reported in the first quarter of 2025, driven mostly by a strong EBITDA, one-off financial income and lower exchange losses. As for free cash flow, we have a negative free cash flow generation in the quarter versus last year due to the normal seasonality and less factoring intensity. Net debt has closed the quarter in EUR 1,977 million, reducing net debt EUR 242 million compared to the first quarter of 2025.

To sum up, we continue to demonstrate our ability to perform strongly and improve our profitability while retaining balance sheet discipline in difficult end market conditions.

If we now move to Slide 13, we will detail the one-off impacts that have led to a strong net income improvement. On a like-for-like basis, net income has improved by 62% year-on-year from EUR 27 million to EUR 43 million. In addition, net income has experienced a total of positive EUR 6 million one-offs, which entail a EUR 15 million write-down linked to our electric vehicle programs, more than offset with a EUR 23 million financial income accounting impact from the syndicated facility agreement amend and extend, which we announced in Q4 and have closed in Q1 2026. As a result, there is an EUR 8 million positive impact, which results in a net of a EUR 6 million impact after tax.

If we now move to Slide #14, we can see the performance by region on a year-on-year basis. Looking at each region in detail. Revenues in Western Europe have decreased by 4% year-on-year in 2026 to around EUR 1 billion. Performance in the region has been affected mainly by volume pressure in the period. In terms of EBITDA, it reached EUR 98 million and EBITDA margin stood at 9.6% in the period, improving by 90 basis points from the 8.7% reported in 2025. Profitability improvement in the period is derived from flexibility measures that we're applying as well as one-off restructuring costs that we had in Q1 2025.

In Eastern Europe, the performance in Q1 2026 has been very solid, proving again our strong positioning in the region. On a reported basis, during Q1 2026, revenues have decreased year-on-year by 2.8%, up to levels of EUR 494 million and EBITDA levels have decreased EUR 5 million to EUR 75 million, in a context where the region has been strongly impacted by ForEx this year. EBITDA margin stood at a solid 15.2%, in line with the profitability reported for full year 2025 and being our strongest region. The profitability continues to reflect the project mix, highlighting the strong project ramp-ups in Turkey and the good evolution of the business in the remaining countries.

In Europe overall, considering both regions as a whole, we continue to improve our profitability, partly due to the shift in the mix to Eastern Europe.

In North America, Phoenix Plan continues to show signs of improvements in the underlying operations with a good EBITDA margin evolution in Q1 2026, despite underlying end market conditions and FX impact. Our revenues have decreased by 5.7% year-on-year, while EBITDA has increased by 4% if we exclude Phoenix impact of EUR 3.4 million in Q1 2026. This higher EBITDA in absolute terms leads to an EBITDA margin of 7.1%, improving last year's profitability by 70 basis points.

As you all know, turning around the operations in North America to improve our market position and profitability is at the top of our priorities, and these results set the path to achieve the target of a 10% margin by end of the year.

In Mercosur, revenues have decreased by 5.4% due to customer and project mix, while EBITDA has increased by 13.4% year-on-year, leading to 11.5% EBITDA margin versus 9.6% last year. We have been able to improve profitability in 240 basis points, thanks to flexibility measures we're implementing in the region as well as restructuring costs that we experienced in Q1 2025.

In Asia, reported revenues have decreased by 9.5% year-on-year in Q1 2026 to EUR 424 million, within a complex and very competitive market environment. However, our performance continues to evolve positively in these market conditions, being able to improve slightly profitability year-on-year.

Our approach continues to be focusing on premium products in the region, and we keep on working to gain positioning in this region, maintaining strong levels of profitability. Asia region remains a great opportunity for us, not only China, where we continue to develop high value-added products, but also India, where we are -- we have undertaken new projects with a strong performance.

Finally, Gescrap has seen revenues decreasing by 2.5% year-on-year to EUR 157 million as a result of a comparable relatively strong quarter in Q1 2025. EBITDA in absolute terms has increased by EUR 1 million, reaching EUR 13 million in the period. As Francisco explained earlier, improving market conditions show the path to achieve year-end targets for Gescrap.

Overall, this quarter, we have seen once again that our unique business model and geographic diversification has supported and driven our performance in a period marked by volume volatility and lack of growth.

Turning to Slide 15. We see where we started 2026 with a net debt of EUR 1,977 million, which is EUR 156 million above the EUR 1,821 million reported in December 2025. This EUR 156 million increase includes a dividend payment of EUR 31 million and a positive EUR 18 million impact of ForEx in the quarter.

The company has generated a negative free cash flow of EUR 142 million, excluding extraordinary Phoenix costs in the first quarter, being negatively impacted by our traditional business seasonality and less [ factoring ] intensity. As mentioned in our Q4 results call this year, we have guided to achieve a group operating cash flow conversion of 35%. For Q1, the reported metric is 33%, therefore, reiterating our commitment to achieve the target at the end of the year.

Moving to Slide 16. We ended March 2025 with a net financial debt of EUR 1,977 million, which implies a net debt-to-EBITDA ratio of 1.5x. This is the lowest debt level and leverage ratio since the IPO of the company for the first quarter of the year, showing our strong commitment to be on our 1x to 1.5x net debt-to-EBITDA target. Our priority is to preserve our financial strength, and we remain disciplined over leverage in absolute and relative terms.

Finally, in Slide 17, we show our dividend payment in 2026 against 2025 full year net income. A total of EUR 0.08 per share will be distributed in 2 payments, an interim dividend that we have already paid in January 2026 and a complementary dividend approved at today's General Shareholders' Meeting that will be paid next July.

Gestamp maintains a clear shareholder remuneration policy within a stable dividend payout of 30% of reported net profit, in line with the target that was announced on 2023 Capital Markets Day for the period of 2023 to 2027. Our long-term strategy is focused on generating value for our shareholders.

Thank you all. And now I hand over the presentation to Francisco for the outlook and final remarks.

Thank you, Ignacio. So moving to Slide 19. For the auto market in 2026, we have just seen a downgrade from the volumes expected in the beginning of the year. Of course, the main reason behind this downgrade is the uncertainty created by the present gulf conflict, with fears around the potential supply chain problems and also around the potential problem around cost inflation damaging global demand.

This current forecast could reverse, of course, like it happened last year after the Liberation Day, but it is the best estimate we have today. And now for 2026, the volumes expected is 91.4 million vehicles which means minus 1.8% in respect to 2025 volumes. Again, this year with reductions in markets like Western Europe and North America and for the first time in years, is expected a very important decline in Asia, mainly due to China, as we have already seen in the first quarter.

So far, for Gestamp, we have not experienced a meaningful impact from the conflict on our results. However, we have prepared our resilience plans just in case things get worse. In case of potential supply chain disruptions, basically, we have no suppliers -- no supplies coming from the area of conflict. Most of our purchasing are local. And in the case we have a limited exposure, we are already creating an alternative sourcing solution.

In case of potential cost inflation, I think for us, the most important input is the raw material, basically steel. So basically, here what we have is the pass-through system. And also most of our purchasing for this year are already closed. In terms of volume and the risk, still difficult to handle, but we have our flexibility plans in place and of course, open communication, open talks with customers in order to react as soon as possible.

In this case, I think we'll remain focused in everything which is under control and keep delivering in efficiency, trying to control our fixed cost, trying to keep on working in flexibility, trying to be able to rightsize our operations and try to be able to have a clear revaluation of our capacities and of course, preserving our balance sheet.

So with this, regarding the guidance that we provided some months ago for 2026, we clearly reiterate our guidance for 2026. In terms of the margin of EBITDA, we are committed to have an EBITDA margin of more than 11.7% full year 2026 and increasing also the margin in each of our businesses in Auto with an EBITDA margin of more than 11.9%. And in the case of the Gescrap, we generate an EBITDA margin of more than 7.4%.

In the case of the group operating cash flow conversion, we reiterate our commitment to have our conversion in around 35% range for the full year 2026 as far as we have seen that we are very close already in the first quarter, which is always the most difficult.

So with this, just to end, my closing remarks is that we have had a solid start in 2026, so that is providing us a good visibility for the full year '26 along the guidance. In terms of Phoenix, clearly a priority. We are on track, and we have also a very good possibility to reach 10% EBITDA margin that we have promised. And in the case of what could happen if anything gets worse, we are prepared to react if any unpredictable change in the market happens. So prepared, a good visibility and prepared to react.

And with this now, I think now we are open to all your questions. Thank you.

[Operator Instructions] Our first question comes from Christoph Laskawi from Deutsche Bank.

You already highlighted that you didn't see material impact so far of the Middle East situation. I'm still interested if the call of volatility or the discussions with the customers have, in any way, changed a bit in tone or slightly in volumes in Q2 over Q1?

And then what we see in the past from oil price shocks is that not necessarily there's a significant volume impact in the U.S., but there could be trade downs from bigger cars to smaller ones. Do you see this in the customer schedules? And would it have any meaningful impact for you with current customer exposure?

And then another question would be, obviously, you're well hedged with regards to raw materials for '26. But could you just remind us again how the lag effect from spots to actually hitting the P&L works and what the lag between the cost impact and then the pass on to the customers would be?

And the last one, you highlighted, obviously, that you are very cost focused in the current environment, and you've shown in the past that in volatile times, you can quite well flex the costs. Is there anything above the Phoenix Plan, which you are considering, and the current situation actually might provide an opportunity to do more? That would be appreciated too.

Okay. Thank you for your questions. So starting with your first question around whether we see an additional further impact coming out from the conflict in the Gulf. So far, we are in close contact with all our customers, and we don't see kind of a big problem with them. It did not happen in first quarter, and we are not expecting that to happen also in the second quarter. So right now, there is no issue right now for the volumes for the Q2. And again, for the rest of the year, we have not seen any change in the [ EDIs ] coming out from the different customers.

So, so far, quite stable. Everybody is very much concerned, trying to -- having a lot of questions whether we have some potential suppliers for us, which could be in danger, but we have been already checking with them all the potential problems. So everything is more or less under control in terms of that, but let's see what happen with the volume.

So you did have a specific question around what could happen in the case of U.S. I think it's still very early to consider whether the impact coming out from the Gulf could be a structural topic or it is going to be something which is going to affect several months. The decisions in order to buy new kind of cars are, of course, related to a kind of perception that, that could be a structural topic. So we don't see today a big change on that, even though it's true that in U.S. right now for consumers, the increase of the prices of the oil is starting to be a real problem in terms of consumption.

It could be that they could go for EVs, it could be that they will go for smaller SUVs or smaller cars. It's true that the Asian cars, Japanese and Koreans are being very successful in the last months and years. So let's see what happens. So far, I have not seen a clear change and a structural change in the trend in terms of consumption in U.S.

Around raw material and special steel for us, I would say that we have in the market like 2 different kind of negotiations on prices. One is regarding the spot, which is not basically related to automotive, which is moving prices of spot price every day. And these spot prices have been increasing a lot already for months. In the case of the automotive prices, we do negotiations and our customers do negotiations once a year.

So basically, what has happened this year is that there's been a slight increase compared with previous year. And in this case, what we have is a mechanism in place with our customers to do the pass-through. In some cases, it's a kind of automatic pass-through with our resources system. And in other cases, it's an agreement that we do -- we do with most of our customers, and we do it always retroactively from the beginning of the year.

And in the case of what kind of things we are doing more in terms of flexibility, a part of what we are doing already in -- for Phoenix, I can tell you that we are doing a bunch of things not only this year, but also previous years. In fact, as you could imagine, we have seen volumes in Europe going down already for months and years, and we have been able to preserve profitability basically because we have implemented quite important flexibility measures in the different plants in Europe, not only in Europe in other areas as well.

[Operator Instructions] There are no further questions at this time. I will now hand it back to the management. We do have a question. Our next question comes from Anthony Dick from ODDO BHF.

Just one on the raw materials topic also. I understand you've got a pretty good pass-through mechanism in place. However, there's still some impact on the top line and maybe a bit of dilution on the bottom line in terms of percentage margins. I mean, do you expect this to be significant at all at some point in the year? Did it already contribute in -- or have an effect in Q1? Just wanted to have your view on that one.

Thank you for your question. Yes, we do have a mechanism of pass-through, but it's true that in terms of mathematics, there could be some kind impact of -- in terms of dilution. But we are committed. We know that, that is going to happen. We are already working on that, and we are going to be able to commit to all that we are intending to do in order to preserve our margins, even though this is going to be this kind of increase in terms of our revenues. So yes, it's an impact, but it's not significant and it's already considered in our commitment.

Our next question comes from Robert Jackson from Banco Santander.

I just have a question regarding your thoughts on the numerous announcements which are being made related to the partnerships between European OEMs and U.S. OEMs and even Chinese OEMs. So there's a lot of talk going on. So what do you think or what are the thoughts on how it can probably affect Gestamp in the medium to longer term?

Well, it's still difficult to understand, Robert, what is going to happen. It's clear that the trend of some of the Japanese big OEMs is that they will expand globally. And in order to do so, the possibility to do just exports and not to localize is, of course, not an option. So they will -- they are all intending to localize. And this is something, of course, that is happening with different projects in Europe as with the ones that we have seen announced in Spain and in other areas. And of course -- yes, I'm referring to the Chinese, not the Japanese.

And of course, the market is a little bit more close today in U.S. for them. So they have been trying to do something in Mexico. But now we will have the USMCA, which is starting to be renegotiated now. So it's not going to be easy to see what is going to happen. But of course, the negotiations between Chinese OEMs and American OEMs should have a kind of impact. We still don't know what is going to be this impact.

We see also these OEMs, these Chinese OEMs being very active for areas like Brazil. So everything is still moving. But so far today, in this first quarter 2026, most of the manufacturing of the Chinese OEMs is happening right now in China, a little bit in some countries like Taiwan and very limited outside from China. So we are probably going to see very soon some localization in different areas like for instance in Europe, but still we are waiting for that.

My second question is related to the increase in volumes in North America. So that 1% outperformance in North America, are you starting to maybe increase your exposure to the U.S. OEMs? Could that have helped at all?

It's kind of mix of the different programs that we have over there. It's true that some programs, especially around combustion in the -- up in the north doing well for us. It's true that there are some other programs and basically some European, some of them are running not so bad and others are running bad. So it's kind of a mix impact.

There are no further questions at this time. I will now hand it back to the management team. Go ahead.

So thank you very much for your time today. We hope the call has been useful. And for any further questions, you have the IR team at your disposal. And we wish you all a very good evening.

Thank you very much.

Good evening, and thank you very much for taking the time to attend Gestamp 2025 Full Year Results Presentation on what I know is a super busy for many of you. I'm Ana Fuentes, M&A and IR Director.

Before we begin, let me refer you to the disclaimer on Slide #2 of this presentation, which has been posted on our website and that set out the legal framework, under which this presentation must be considered.

The conference call will be led by our Executive Chairman, Mr. Francisco Riberas; and our CFO, Mr. Ignacio Mosquera. As usual, at the end of this conference call, we'll open the floor for Q&A session.

Now please let me hand the call over to our Executive Chairman.

So good afternoon, and thanks for attending this call with us in this busy day. So moving forward, overall, 2025 has been a good year for Gestamp by year, which has been marked by a complex context with the global tariff war that is still alive with many regulatory changes in different geographies, but mainly in U.S. and Europe.

A year also with the major OEMs realigning their strategies to slower EV adoption and also with a limited growth in terms of volumes everywhere, but in China or India. In this context, Gestamp has focused on delivering a strong set of results in 2025, taking action in order to align our exposure to EV programs in line with our customers and enhancing our balance sheet profile with more -- adding more flexibility and more optionality for us in the future and of course, also delivering in our commitment for North America in the frame of the Phoenix Plan.

In terms of the market, in terms of global manufacturing of light vehicles in our footprint has had limited volumes, again, another year, but probably volumes which were better -- which have been better than initially forecasted. In fact, by February 2025, we were expecting volumes in 2025 to be very much in line with 2024. Then when the tariff war started in April, the forecast was reduced. But at the end of the year, final volume has been around 85.5 million. So that meaning around a 4% increase.

So a growth, clear growth, but only driven by Asia. In fact, between China mainly and India, the growth has been around 3.5 million units comparing with 2024 and it's been again a decrease in Europe and also in this case, in this year in North America.

So moving to Slide 6. And as mentioned, Gestamp has met all the 2025 upgraded targets. In terms of revenues, we have been below the market growth with Gescrap also performing below 2024 due to the lower prices of the scrap. But in this environment, we have been able to increase our auto margin profitability by 78 basis points, generating a very sound free cash flow of EUR 228 million more than guided. and reducing our leverage ratio to 1.4x EBITDA, which is the lowest since the IPO. So basically, a quite solid year, reinforcing our fundamentals. So that means focusing in increasing profitability and increasing our balance sheet strength.

With more focus on revenues, some revenues at FX constant have underperformed the market. In fact, the light vehicle manufacturing in our footprint has increased by 4.1% while at the same time, Gestamp sales at FX constant has been reduced by 1.2%. So that means a 5.2% underperformance, only 0.6% underperformance if we exclude in this analysis, the China impact.

By regions, in Europe, the overperformance in East Europe has been cash compensated some slight underperformance in Western Europe. Basically, in North America, we are in line with the market. We had some underperforming in Mercosur due to some specific problems of some of our relevant customers in that area.

And in Asia, we have a clear underperformance in China, but in the rest of the Asian countries, including India, we have more than a 15% overperformance.

In our revenues in a reported basis, we are below 2024 figures by 5.4% from EUR 12 billion reported revenues in 2024, we have this year EUR 11.350 billion in 2025. There is a decrease, which is mainly coming from FX impact versus euro in most of the geographies, but also due to some lower activity and also to some lower scrap prices.

If we go to the Slide #9, during 2025, Gestamp has entered into different agreements with certain customers impacting our profit and loss accounts, mainly in the fourth quarter 2025 and around EUR 34 million positive accounting impact at the EBITDA level with an asset write-down totaling EUR 52 million regarding these programs.

So overall, these both items generating a net EUR 19 million negative impact at EBIT level. So these are effects, which are linked to the realignment strategies announced by several of our customers, largely driven by a slowdown in their EV rollout plan. And of course, these settlements fall within the framework of Gestamp's ongoing constructive negotiations with customers and always preserving our long-term relationship with them.

So moving to Slide #10. So basically, 2025 has been another year of increasing profitability without growth. Our EBITDA margin for the auto business has increased from 11.1% in 2024 to 11.9% in 2025. Even without taking into consideration the extraordinary impact explained before, this increase has been to 11.6%. So again, a very solid recovery of profitability in our auto business activities. And we have been able to increase this profitability because we have a very clear focus in different actions like cost reduction initiatives, trying to introduce all kind of flexibility measures, of course, this constructive customers negotiations and with a clear focus in delivering on the Phoenix Plan.

Moving to the Slide 11 about the Phoenix Plan. For the second year of the Phoenix Plan, we have been able clearly to match the target. And in this case, the target was to achieve more than 8% EBITDA margin. And we have done it in a market, which has been much weaker than expected when the Phoenix Plan was launched. At that time, we were forecasting a manufacturing level in North America of around 14.9 million units of light vehicles, but the real figures in 2025 have been EUR 14 million. So that means almost 6% decrease in terms of volumes, in terms of car manufacturing in North America.

In this context, in the full year with sales of EUR 2,241 million, we have been able to generate EUR 182 million EBITDA. So that means 8.1%, which means a clear improvement comparing with the 7% EBITDA margin we had in 2024. And that we have been able also to do it with a very solid result in the fourth quarter with more than 11% EBITDA margin. So -- and we have been able to do it with extraordinary Phoenix cost below the plan with EUR 16 million in terms of profit and loss account and EUR 30 million in terms of CapEx cost.

And in terms of Gescrap, we had a year which has been the performance of Gescrap has been clearly impacted by the scrap prices evolution. The scrap prices have been going down month after month in Europe with a total decrease of 12% in the scrap prices in Europe, more than 20% decrease in China and a little bit more stable in U.S.

So that means that our revenues in terms of sales have been decreasing by 6.8%, even though in terms of tons, we have been able to preserve a very good level of activity. But this continued decrease of the price of the scrap has forced our company to reduce the profitability in terms of EBIT from EUR 42 million EBIT in 2024 to EUR 28.3 million. So -- but we are expecting for 2025 the scrap of the prices to be stabilizing and even growing. So that means that the profitability of the scrap for the future should be able to recover.

Apart of that, we have also made an important acquisition. In this case, the company Industrias López Soriano. With this acquisition in scrap basically in the Iberian Peninsula, we have been able to get ourselves introduced in a different sector, the sector of the Shredding and also in the sector that now we are an active player in the recycling of waste of electrical and electronic equipment.

Okay. So now with this, now I hand it over to Ignacio Mosquera.

Thank you very much, Paco, and good evening to everyone. Moving to Slide #14. Let's have a closer look to our financial performance in 2025. We have reached revenues of EUR 11.349 billion, which entails a 5.4% decrease when compared to the EUR 12.01 billion from 2024. As we have seen before, revenue has been strongly impacted by ForEx in most of our geographies.

In the auto business, at FX constant, revenues have declined by 1.2% year-on-year. In terms of EBITDA, we have generated EUR 1.307 billion in 2025, meaning an 11.5% margin and a 1% increase year-on-year. Excluding the Phoenix impact, EBITDA in absolute terms would amount to EUR 1.323 billion, therefore, an EBITDA margin of 11.7%.

As a result of the one-off impacts mentioned before by Paco and higher amortizations, reported EBIT decreased by 6.2% year-on-year to EUR 546 million with an EBIT margin of 4.8% or 5% excluding Phoenix impact. Phoenix Plan aimed at restructuring our NAFTA operations, has had a EUR 16 million impact in P&L and a EUR 13 million impact in CapEx for the entire year.

Net income in the year has been EUR 152 million that compares to the EUR 188 million reported in 2024, mainly due to an increase of depreciation and amortization levels and a higher interest expense due to increased exchange impacts in 2025. Net debt has closed the year at EUR 1.821 billion, therefore, a decrease of EUR 276 million on a reported basis.

As for free cash flow, we have reached EUR 278 million in 2025, excluding the extraordinary impact of the Phoenix Plan or EUR 249 million as reported.

To sum up, we continue to demonstrate our ability to perform strongly and strengthen our balance sheet in a challenging market environment together with a negative ForEx evolution.

If we now move to Slide #15, we can see the performance by region on a year-on-year basis. Looking at each region in detail, revenues in Western Europe have decreased by 4.2% year-on-year in 2025 to around EUR 4 billion. Performance in the region has been strongly affected mainly by volume pressure in the period and to a lesser extent, the fall in raw material prices.

In terms of EBITDA, it reached almost EUR 453 million, and EBITDA margin stood at 11.2% in the period, down from the 11.4% reported in 2024. Profitability in the period has been impacted mainly by volume drop with still limited operating leverage despite the flexibility measures, which have been taken. As we mentioned in our previous call, results of these measures will take some time with limited tangible results in the short term.

In Eastern Europe, the performance in 2025 has been very solid, proving again our strong market positioning in the region. On a reported basis, during 2025, revenues have grown year-on-year by 1.2%, up to levels of EUR 1.925 billion, and EBITDA levels have increased by 15.4% to EUR 293 million.

Eastern Europe region has been strongly impacted by ForEx this year. EBITDA margin of 15.2% is above the 13.3% reported last year. The reported -- the profitability improvement is mainly attributed to a better project mix, highlighting the strong project ramp-up in Turkey and the good evolution of the business in the remaining countries.

In Europe, overall, considering both regions as a whole, we have managed to improve our profitability, partly due to the shift in the mix to Eastern Europe.

In NAFTA, Phoenix Plan continues to show signs of improvement in the underlying operations with a very good EBITDA margin evolution in 2025 despite the underlying end market conditions and FX impact. Our revenues have decreased by 6.7% year-on-year, while EBITDA has increased by 7.8% if we exclude Phoenix impact of EUR 16 million in full year 2025.

This higher EBITDA in absolute terms leads to an EBITDA margin of 8.1%, improving last year's profitability and also slightly surpassing the target we had set of 8% for 2025. As you all know, turning around the operations in NAFTA to improve our market positioning and profitability is at the top of our priorities, and these show results and the profitability achieved in Q4 sets the way to achieve the target of a 10% margin in 2026.

In Mercosur, 2025 has been marked by the ForEx evolution in Brazil and Argentina, leading to lower revenues in the period decreasing by 15.7%. Despite the revenue decrease, EBITDA has increased by 4.9% year-on-year, leading to an 11.8% EBITDA margin versus 9.4% last year. We have been able to improve our profitability in 240 basis points, thanks to the flexibility measures and the turnaround of our business in Argentina, where last year, we did some restructuring.

In Asia, reported revenues have decreased by 7.7% year-on-year in 2025 to EUR 1.823 billion within a complex and very competitive market environment. Our negative revenue evolution in the period is partially explained by the ForEx evolution in China. However, our performance continues to evolve very positively.

Despite negative revenues evolution in the period, we have managed to maintain similar levels of profitability with an EBITDA margin of 14.5% for 2025, which places Asia as the second most profitable region for the group. Our approach continues to be focused on premium products in the region. We keep on working to gain positioning in this region, maintaining strong levels of profitability.

Asian region remains a great opportunity for us, not only China, where we continue to develop these high value-added products, but also India, where we have undertaken new projects with a strong performance.

Finally, Gescrap has seen revenues decreasing by 6.8% year-on-year to EUR 534 million as a result of the sustained decline in scrap prices, as mentioned before. As a consequence, EBITDA in absolute terms has decreased by 23.5% year-on-year, reaching EUR 39 million in the period.

Overall, we have seen that our unique business model and geographic diversification has supported and driven our performance in a year marked by volumes volatility and lack of growth.

Turning to Slide 16. We see that we ended 2024 with a net debt of EUR 1.821 billion, which is EUR 276 billion below the EUR 2.97 billion reported in December 2024. This EUR 276 million decrease includes dividend payments of EUR 111 million and cash in of EUR 220 million of minorities acquisitions, so M&A and equity contributions, mainly due to the transaction executed with Banco Santander earlier in the year.

During the year, the company has generated a positive free cash flow of EUR 278 million, excluding extraordinary Phoenix costs, surpassing significantly the updated guidance for 2025, partly due to one-off compensations mentioned earlier by Paco, which came in, in Q4.

Moving to Slide #17. We ended December 2024 with a net financial debt of EUR 1.821 billion, which implies a net debt-to-EBITDA ratio of 1.4x, driven by free cash flow generation as well as cash inflow from the partial real estate asset sale of EUR 246 million. This is the lowest debt level since the IPO of the company, both on net level and on leverage ratios and complying with our commitment to be between 1 to 1.5x net debt-to-EBITDA target. As we have mentioned, our priority is to preserve our financial strength, and we remain disciplined over leverage in absolute and relative terms.

Looking at Slide #18, we are proud to share the actions carried out during 2025 and that have been key to provide a strong balance sheet. Firstly, and as a reminder, in September, we closed our partial real estate sale and leaseback agreement of our assets located in Spain, strengthening our balance sheet.

Secondly, in October, we closed the new senior secured bonds issuance that contributed to extend our debt maturity structure at a very attractive cost. As a reminder, Gestamp's new EUR 500 million senior secured bonds represent the tightest price callable bond by an auto parts issuer since September 2021 with a coupon of 4%, 375%, which underpins the debt investor support to the group.

Further to that, in January, we executed an amendment to our syndicated facility agreement and our revolving credit facility, extending the maturity from 2027 and 2028 to 2030 and 2031. These 2 transactions have allowed us to increase pro forma average debt life from 2.6 to 4.3 years. We continue actively managing our balance sheet structure to strengthen it and flexibilize our financial profile.

Finally, on Slide #19, we present the return on capital employed. We have managed to reach 15.8% return on capital employed in 2025, improving by 80 bps between 2024 and 2025 and by 180 bps since 2022 when we first released our new return on capital employed KPI. As we have made clear, Gestamp aims at remaining disciplined on CapEx investments and improving profitability.

Our long-term strategy is focused on generating value for our shareholders.

Thank you all. And now I hand over the presentation to Paco for the outlook and closing remarks.

Thank you, Ignacio. So moving to the Slide 21. I would say that in terms of the market, nowadays, we are not expecting any growth for the market in 2026 versus 2025. And for the following years up to 2029 or 2030, we're assuming a limited growth of around 0.9% CAGR.

In 2026, even though we are assuming a flat market, we are considering that the volumes in Europe will be stable with some decrease in Western Europe that could be more or less compensated by some increase in Eastern Europe. We see some increase in terms of volumes in areas like Mercosur and India. And probably we are now expecting a slight decrease for the first time in many years in China.

In terms of the -- what we can expect for Gestamp in 2026, so basically very similar to what we have in 2025. So we see a market context in 2026, which means with a limited volume growth in our key geographies with, of course, still regulatory changes, especially in Europe, but also in NAFTA to happen with cost pressure expected coming from customers and also coming from the environment. And of course, some slower EV adoption, but probably with a little bit less volatility.

So in this context, we will remain executing the same way we have done it in 2025, trying to base ourselves in kind of this execution of this solid backlog, trying also to focus ourselves in increasing profitability, even though we are not expecting any kind of volume increase. The idea is that we need to keep on improving the strength of our balance sheet and also increasing the flexibility of our balance sheet and of course, trying to focus in meeting the guidance for 2026.

In terms of the backlog, at the end of 2025, we had EUR 47.5 billion backlog, which is covering more than 85% of the revenues expected by the group in the next 5 years. Solid backlog, but less backlog than we had 1 year ago because this has been impacted in terms of euros due to the negative ForEx and also it has been impacted by the rethinking of some of our customers of some of their EV programs.

So basically, now what we have is a kind of a change in the backlog that we have because we have more content of programs, which are carryover with a less capital-intensive profile. And of course, we are using our CapEx in the future in a kind of conservative approach, trying to ensure the profitability and to be able to mitigate risk, but also to preserve some CapEx in order to be able to support the new customers and to support also footprint diversification with the new area.

So again, I think, again, the message is the same. We are going to keep on in 2026 being very focused in working on profitability with a clear road map. The idea is to reinforce all kind of actions in order to have a very good control of all levels of cost, whether it's corporate division level or in the plant level trying to increase flexibility, trying to implement all kind of rightsizing of our operation whenever is required and trying to be more flexible and try to do our CapEx more in a steady basis.

Of course, trying to be able to keep on moving with constructive negotiation with our customers and all the different regions and of course, also trying to be able to remain very focused in the third year of the Phoenix Plan, which is a very important milestone as I stated 2 years ago and which is going to provide our group to be able to get the profitability levels in NAFTA region equivalent to the rest of the group.

In terms of the financial profile, and as Ignacio has already explained in the previous slide, by the end of 2025, we have been able to achieve a very, very solid financial profile, with a leverage of 1.4x net debt to EBITDA, which is the lowest since the IPO and mainly thanks to a very positive free cash flow generation during the last 6 years of more than EUR 1.4 billion.

So taking all into account for 2026 in terms of the guidance, what's clear, the focus of the group is going to be to be another year of reinforcing our financial positioning. We are assuming a scenario in terms of market which is going to remain very flat. And in this environment of a flat market, we are guiding in terms of profitability, to be able to increase our EBITDA margin as a reported basis of more than 11.7% EBITDA margin in 2026. That means that we are guiding for an increase of the profitability in our auto market to be above 11.9% and in terms of Gescrap to increase also the profitability of more than 7.4% that we had in 2025.

And in terms of our balance sheet, we are, again, looking for a less capital-intensive business profile. And what we are guiding is to have a good group operating cash flow conversion in the range of 35%. So that means that the operating cash flow defined as reported EBITDA minus the net cash CapEx.

So again, clear focus in increasing profitability, a commitment to increase profitability in both auto business and Gescrap and improving our financial position by limiting our cash CapEx to the EBITDA that we are going to generate in this year.

Moving to Slide 27. In the Phoenix Plan, the last year of the Phoenix Plan, the third year of the Phoenix Plan, we are expecting to complete the plant with a CapEx impact expectation of EUR 21 million and EUR 90 million impact in terms of profit and loss account, so a total of EUR 40 million. And in the total amount if we include the 3 years in the plan of EUR 100 million as guided 3 years ago or 2 years ago. And for 2026, we stress again our commitment to generate an EBITDA of more than 10% in 2026. And of course, a target that is right now very achievable in what we see and of course, a first stage in order to be able to increase the profitability of our North American operations to the level -- average levels of the rest of the group. So that's all with us.

So message that full year 2025, we have been able to achieve very solid results in a difficult environment. For 2026, we are not expecting the market to recover, but we commit ourselves to increase our profitability and to increase also our financial profile. And of course, third year of the Phoenix plan, absolutely committed to be able to deliver.

So that's all from my side and now open to your questions.

[Operator Instructions]. And our first question came from the line of Francisco Ruiz from BNP Paribas.

I have 3 questions, if I may. The first one is on your guidance for top line. I mean you commented that you do not expect any growth in this year, mainly also with deceleration in Asia. But mainly I still remember the old stamp when we talk about the -- I mean, the increase on growth above the market due to the increase of outsourcing. I mean, what is this driver? I mean it's already over.

And on the other hand, I mean, could we think that the flat growth that the market expected and you are also assuming is because you are projecting nonprofitable projects that in the past you used to assume?

The second question is a more modeling question. And if you could give us what's the split of the EUR 34 million extraordinaries in the different divisions -- and if this is something what we could expect also in the future or there are more contracts like this to be accounted in 2026 or '27?

And last but not least is on the leverage. I mean, you are reaching a level, which is well below, I mean all-time low. What are you going to do with the cash, I mean, from here?

Okay. Thank you very much for your questions. In terms of the revenues, in terms of the top line, it's true that we are not giving a clear guidance for that. It's true also that the market has not been growing in the last years. And also, we have been reporting in Europe, we have been quite impacted by the FX.

In fact, we have made the analysis. And if we were to have the revenues in the kind of currency levels that we had in 2022, we are losing more than EUR 1.5 billion just because of FX because we are reporting in euros.

For this year, we don't see a growth. As mentioned, the market is not assuming any growth. And of course, we are always planning that we will do our best, but we consider that it is better for us now to assume that we need to focus in profitability and rather just to be waiting for volumes to come back. So we are doing our job. We are assuming that the bad news are going to be there, and we are putting a lot of stress in the operations. As you know well, because you know us for years, we have been growing for many years.

We have a very good position in the market. We have this kind of position with the traditional customers and also with the new customers. And that's why I feel very comfortable that our positioning and our market share remains quite intact.

In terms of the leverage that you mentioned, I think it is true that we have reached this 1.4x, which is below all the different levels. I think for us, right now, the focus is in the cash flow generation. I think it's very clear for us. And what to do in the future with that is something that is not now our first priority. Of course, as we have already commented, the market that will have some opportunities. There will be some consolidation. There will be opportunities to increase the remuneration to shareholders. But today, it's very early.

Today, I think the clear focus for us is to really focus on profitability and focus and generate a very sound free cash flow. You had another question around the claims.

I don't -- I prefer not to provide you with data around what kind of customers or programs or regions. But I think I am quite positive surprised that even though customers are suffering, the kind of negotiations that we are having with them are very positive and I think are fair, not easy, but are fair. And I think the kind of this impact at the end of the day is no more than a compensation of the different expenses that we had in these programs and now these programs are canceled and the customers are doing a clear recognition of what we have been doing for them because they also want to preserve our long-term relationship. So I would prefer not to give you much more details, but probably there will be more -- a little bit more in the -- during 2026.

[Operator Instructions]. And our next question comes from the line of Robert Jackson from Banco Santander.

First question is related to your comments, Francisco, on the footprint diversification. Could you elaborate more on this comment, give us a bit more detail what the thoughts are on this outlook? That was my first question.

Okay. So if I understand well around our footprint diversification, so that means that we are trying to, of course, to try to invest whenever the markets are growing. Even though, of course, we are trying to preserve our strength in terms of balance sheet.

Probably in terms of the more clear bets in terms of growth is India. And India is a place that we are growing. We are investing. We are investing in opening new plants over there and also, which is something which was a kind of surprise to me, increasing in some specific high-tech technologies for that market. And we are growing a lot in areas like specific chassis solutions and also a lot in new hot forming lines. So India is a market that we see growth, and we are investing in that growth.

Of course, in terms of growth, there could be other opportunities. There are other markets that we have a very good position like Brazil that we see still some room to grow, areas like, for instance, in Morocco that we are growing. But this is what we are expecting to do that. In terms of where we need to reduce in some extent our position, I think clearly, we are doing year after year some kind of downsizing of our operations in Western Europe.

Okay. Second question is related to the NAFTA improvements. We saw a significant improvement in the rise in the EBITDA margin from the third to the fourth quarter. Is there -- what are the main drivers behind these relevant increases? Or is it just a general improvement?

Well, Robert, just to confirm, you're asking because we cannot hear you very well. You're asking about EBITDA margin drivers in fourth quarter?

Yes. Yes. EBITDA margin in NAFTA, more specifically the improvement in NAFTA, in NAFTA, yes. Why is the NAFTA EBITDA margin increased so significantly. Just to get a better understanding looking forward into the next few -- into 2026?

Yes. Well, I think, Robert, as you know, we usually have some kind of increase in the EBITDA margin in the fourth quarter compared with the -- that happened also in 2024. So it's in line with the trend that we have every year because we have -- and we have also this year some kind of agreements by the end of the year, for instance, when we are trying to be paid by the different agreements with customers around tooling and programs.

So basically, it's a kind of trend that we have that we try to do this settlement and accounting of these agreements and negotiations with customers by the end of the year. So that's why basically we have this EBITDA margin in the fourth quarter more than the average EBITDA margin of the previous quarter, but this was very similar to the kind of evolution we had in 2024.

Okay. I was just wondering whether there was any specific changes on an operational level, but you've answered my question.

There are no further questions from the conference call at this time. So I will hand back to the management team. Thank you.

Well, thank you for your time today. We hope the call has been useful. And as always, the IR team remains at your disposal for any further questions you may have. Wishing you all a very [ good evening ].

Okay. Thank you.

Thank you very much.

Good evening, and thank you very much all of you for taking the time to attend Gestamp Nine Months 2025 Results Presentation. I'm Ana Fuentes, M&A and IR Director.

Before proceeding, let me refer you to the disclaimer of Slide #2 of this presentation that has been posted in our website and will set out the legal framework under which this presentation must be considered.

The conference call will be led by our Executive Chairman, Mr. Francisco Riberas; and our CFO, Mr. Ignacio Mosquera. As usual, at the end of the conference call, we will open up for a Q&A session.

Now let me turn the call to our Executive Chairman.

Okay. Good evening. Thanks for attending this call in which we will be presenting Gestamp results for the first 9 months of the year. So far, this year remained very challenging with adverse FX impact for us and also negative volumes in our core markets. But even in this negative context, Gestamp is performing quite well year-to-date, with revenues very close to EUR 8.5 billion, which means a minus 0.8% auto business sales at FX cost and compared with the previous year.

But even if lower sales, our EBITDA margin has grown to 11%, up 38 basis points versus 2024. In terms of Phoenix Plan, I think we are running quite well, improving already 96 basis points EBITDA margin versus 2024.

And moving forward to ensure our balance sheet strength, ending this period with a leverage of 1.6x debt to LTM EBITDA. So solid results year-to-date and providing a good visibility for the full year.

In terms of the market, light vehicle manufacturing in the first 9 months of the year is up by 4.3% compared with 2024, reaching already 62.2 million units. However, there are big differences in geographical areas, mainly in Asia is where we have all the growth, growth by 8.1% compared with previous year and especially in China with a growth of 12% increase year-to-date. And in rest of the areas and especially in Western Europe with some additional decrease in volumes in line with previous years.

Moving to Slide 6 to talk on Gestamp revenues versus the market. The market has grown as stated by 4.3% up to September, while Gestamp sales, auto sales at FX constant has decreased by 0.8%. So that means an underperformance of 5.1%, underperformance, which is mainly due to China. In fact, without considering China, Gestamp could have had a slight outperformance to the market.

If we go to the analysis for different regions, we see in Europe that we have some underperforming in Western Europe, but it is fully offset by our continuous growth in Eastern Europe. We have also some slight underperformance in North America and Mercosur, and we had a huge underperformance in Asia of 12%, mainly due to China because without China, we are outperforming the growth of the market, especially due to the growth that we had in our Indian operations.

In China, in fact, we are growing very quickly our business with Chinese OEMs. We have, for instance, a growth of more than 45% in the Q3 compared with Q3 2024, especially in EVs. And also, we are working in different projects with Chinese OEMs all around the world.

We had a negative impact of the ForEx. In fact, we had a revaluation of the euro versus most of the currencies, which is impacting Gestamp revenues and also impacted our EBITDA. In fact, out of the decrease of our revenues year-to-date of 4.9% in euros, 3.7% comes from negative ForEx impact, 0.5% from the decline of scrap revenues due to the scrap prices decline and only 0.7% is a negative organic growth year-to-date.

But even if we are not able to control in the short term what is going on with the market and the FX, we have been able to improve our EBITDA margin year-to-date with lower sales. And in fact, in terms of our auto sales, we have decreased our sales compared with 9 months of 2024 by EUR 400 million. And at that time, in this period of time, we have decreased our EBITDA only by EUR 9 million. So that means that we have increased our EBITDA margin by 42 basis points. And we have been able to do that with very important measures all around the organization.

In terms of cost reduction, we have also implemented very important flexibility measures, especially in our European operations. We have some constructive customer negotiations, especially around volume deviations and also, of course, delivering in the Phoenix Plan. So we are delivering on the upper range of our full year target.

And in fact, if we go to Phoenix, we are performing well. We are performing well in a market which is worse than expected with 1% decrease in volumes year-to-date and still with uncertainty around tariffs, and that's why we are adapting the speed of our actions and the impact in the profit and loss account and the CapEx.

But altogether, in Q3, we have increased our EBITDA in North America from EUR 31 million to EUR 44 million, reaching a 7.6% EBITDA margin from 5.5% in Q3 2024. And year-to-date, with sales moving down, we have increased our EBITDA margin by 96 basis points, already reaching a 7.2% and clearly committed to reach our target of 8% EBITDA in full year 2024, again, with lower sales.

And in scrap, even if in terms of tons, our volumes are okay. Due to the decrease of scrap prices, our revenues year-to-date is down 9% below the one we had in 2024, with scrap prices moving down in Europe, in China and -- but quite steady in U.S. And due to this declining trend in scrap prices, we have reduced our EBIT margin to 5.8%, lower than the one we had in 2024 of 6.9%. But we are expecting clearly to improve back our margin as soon as scrap prices stabilize.

So now I hand it over to Ignacio Mosquera.

Thank you, Paco, and good evening to everyone. If we move on to Slide 12, we can have a closer look to our financial performance in the first 9 months of 2025. As Paco has already explained, Phoenix Plan aimed at restructuring our NAFTA operations has had a EUR 12.2 million impact on P&L and a EUR 10.2 million impact on CapEx for the first 9 months in 2025.

And as a reminder, in the same period of 2024, we had an impact of EUR 16.8 million in P&L and a EUR 3.8 million impact on CapEx. We have included comparable figures for both periods excluding Phoenix.

For the first 9 months of 2025, we have reached revenues of EUR 8.486 billion, which entails a 4.9% decrease when compared to the EUR 8.927 billion from 9 months 2024, mainly due to the strong negative ForEx impact that we carried over from the first half and which has remained in Q3 2025 in all key geographies.

Revenues for the auto business, excluding scrap at FX constant, have been almost flat with a 0.8% decrease year-on-year in 9 months 2025 as FX has negatively impacted results by EUR 334 million.

In terms of EBITDA, we have generated EUR 925 million in the first 9 months of 2025, meaning a 10.9% reported EBITDA margin. Excluding Phoenix impact, EBITDA in absolute terms would amount to EUR 937 million, with an EBITDA margin of 11%, improving the first 9 months of 2024 profitability in almost 40 bps and providing visibility to reach the full year 2025 EBITDA margin target.

Reported EBIT is almost flat in the period, decreasing by 1.7% year-on-year to EUR 399 million with an EBIT margin of 4.7%, improving profitability in the period in almost 20 bps. Excluding Phoenix impact, it would amount to EUR 411 million, reaching a 4.8% margin.

Net income in the first 9 months has been EUR 104 million. That compares to the EUR 127 million reported in the first 9 months of 2024. This lower net income is explained mainly by the negative financial result performance, which has been strongly impacted by ForEx evolution in the first 9 months of 2025 and a comparable 9 months 2024, which was positively impacted by one-off hyperinflation impact.

Net debt has closed in EUR 2.107 billion, reducing net debt in EUR 330 million compared to the first 9 months of 2024. The positive net debt evolution in absolute terms is driven by our partnership with Santander announced in the previous quarter and due to the comparable free cash flow figures with last year, where we had some extraordinary working capital negative items in the third quarter of 2024.

As for free cash flow in the first 9 months of 2025, we had a negative free cash flow generation in the third quarter mainly due to Q3 normal business seasonality, offsetting first half 2025 positive free cash flow generation.

To sum up, a solid set of results despite continuing to be strongly impacted by the negative ForEx evolution and a complex and volatile environment. Despite that, we have been able to improve our profitability levels and strengthen our financial profile that provides good visibility for full year guidance in terms of margin, leverage and free cash flow.

If we now turn to Slide 13, we can see the performance by region on a year-on-year basis. Looking at each region in detail, revenues in Western Europe have decreased by 5% year-on-year in the first 9 months of 2025 to EUR 3,001 million. Revenues evolution in the region has been affected mainly by volume pressure in the period, and to a lesser extent, the continuous fall in raw material prices.

In terms of EBITDA, it reached almost EUR 298 million and EBITDA margin that stood at 9.9% in the period, down from the 10.8% reported in the first 9 months of 2024.

Profitability in the period has been impacted mainly by volume drop with still limited operating leverage despite productivity measures being taken. Results of these measures will still take some time with no tangible results in the very short term.

In Eastern Europe, the performance in the first 9 months of 2025 have been very solid, proving once again our strong positioning in the region. On a reported basis, during the 9 months of 2025, revenues have grown year-on-year by 6%, up to levels of EUR 1.418 billion, despite the strong impact of ForEx evolution in the region. EBITDA levels have increased by 25.6% to EUR 216 million with an EBITDA margin of 15.2% in the first 9 months of 2025, beating the 12.8% margin reported last year 9-month period. The profitability improvement is mainly attributed to a better product mix, highlighting the strong project ramp-up, among others in Turkey and the good evolution of the business in the remaining countries.

In Europe, overall, considering both regions as a whole, we have managed to improve our profitability, partly due to the shift in the mix to Eastern Europe. In NAFTA, Phoenix Plan continues to show its signs of improvements in the year with good underlying operations despite complex market evolution.

Our revenues have decreased by 7.2% year-on-year mainly due to negative volume production performance in the first 9 months and further more the negative ForEx impact in Mexico and the U.S. However, on the other hand, EBITDA has increased by 7% if we exclude Phoenix impact of EUR 16.8 million in the first 9 months of 2024 and EUR 12.2 million in the first 9 months of 2025. We have succeeded in continuing to deliver the plan in the context of limited visibility.

The good evolution of our Phoenix Plan leads to an EBITDA margin of 7.2%, improving versus last year profitability in almost 100 bps and setting the pace to achieve the target of around 8% EBITDA margin range for 2025. As you all know, turning around the operations in NAFTA to improve our market positioning and profitability is a key priority for Gestamp.

In Mercosur, the first 9 months of 2025 have been marked by the ForEx evolution in Brazil and Argentina, leading to lower revenues in the period, decreasing by 10.4%. At FX constant, we grow in the region 3.4%, slightly below the market.

In the other hand, reported EBITDA levels have remained flat in the period, leading to an EBITDA margin of 12.2%. Despite the decline in revenues in the period, we have been able to maintain EBITDA levels in absolute terms and improved profitability in 127 bps, thanks to the flexibility measures were implemented in the region and a favorable comparative with last year due to the floods suffered in the first 9 months of 2024.

In Asia, reported revenues have decreased by 8.3% year-on-year in the first 9 months of 2025 to EUR 1.338 billion within a complex and very competitive market. Our negative performance in the period is partially explained by the ForEx evolution in China and extraordinary revenue growth in the first 9 months of 2024, almost 8% in the same period. Despite negative revenue evolution in the period, we have managed to maintain similar levels of profitability with an EBITDA margin of 14.5% for the first 9 months, which places Asia as the second most profitable region in the group.

Our approach continues to be focusing on premium products in the region. We keep on working to gain positioning in this region, maintaining the strong levels of profitability. Asian region remains a great opportunity for us, not only in China, where we continue to develop high value-added products, but also India, where we're undertaking new projects with a strong performance.

Finally, the scrap has seen revenues decreasing by 9.4% to EUR 395 million and an EBITDA in absolute terms by 16.1% year-on-year, reaching EUR 31 million in the period. This situation is mainly by the sustained decline in scrap prices during the period due to weaker demand, as Paco mentioned before. This negative evolution has led to an EBITDA margin of 7.9%, slightly lower than the first 9 months 2024, although above the reported profitability in 2023, which was circa 7.5% EBITDA margin. Overall, we have seen that our unique business model and geographic and global diversification has driven our profitability improvement in the first 9 months of 2025.

Turning to Slide 14. We see that we have ended the first 9 months of 2025 with a net debt of EUR 2.107 billion, which is EUR 10 million above the EUR 2.97 billion reported in December 2024. This net debt increase considers mainly dividend payment of EUR 79 million and EUR 220 million of minorities acquisitions and M&A, due to the partial real estate asset sale agreement of EUR 246 million closed in September.

During the 9 months of the year, the company has generated a negative free cash flow of EUR 41 million, excluding EUR 22 million extraordinary Phoenix cost. We have experienced a negative evolution in the 9-month period due to EBITDA decrease in nominal terms in the third quarter and a deterioration of working capital related to business seasonality and temporary one-off impact. We expect significant improvement in cash flow in the next quarter to meet full year guidance, generating positive free cash flow in the 2024 range.

As a result of this, I'm moving to Slide #15. We ended up the first 9 months of 2025 with a reported net financial debt of EUR 2.107 billion, which implies the lowest reported net debt in the 9-month period since IPO. This lower net debt in absolute terms leads to a leverage of 1.6x, well below the 9 months 2024 figure, which was impacted by extraordinary negative impacts of last year's third quarter. While this quarter, we have benefited from the cash inflow from the partial real estate asset sale agreement of EUR 246 million. This leverage ratio provides us with a strong visibility to be below full year 2025 guidance as we are already in the 2024 range.

Furthermore, as we commented in the previous slide, we expect to generate positive free cash flow in Q4 to keep on improving our leverage ratio for full year. Our priority is to preserve our financial strength, and we remain disciplined over leverage in absolute and relative terms.

As we turn to Page 16, we are proud to share our latest actions which we have carried out in recent months and that have been key to provide a strong balance sheet flexibility.

Firstly, and as a reminder, in September, we closed our partial real estate sale and leaseback agreement for our assets located in Spain strengthening our balance sheet.

And secondly, the new senior bond issuance that we recently closed as of 6th of October that will contribute to extend our debt maturity structure. The new bonds have allowed us to increase pro forma average debt life from 2.6 years to 3.4 years by replacing the bond that was due to maturing the Q2 2026. Furthermore, Gestamp's new 500 million senior secured bond issuance represent the tightest price callable bond by an auto parts issuer since September 2021 with a coupon of 4.375%. We'll continue to actively manage our balance sheet structure to strength and flexibilize our financial profile.

Thank you all, and now I hand over the presentation back to Paco for the outlook and final remarks.

Okay. Thank you, Ignacio. And so moving forward, in terms of the market with the latest forecast, now we are assuming that the total global manufacturing of light vehicles is going to reach this year 91.4 million, which means an increase of 2% comparing with the 89.6 million of 2024. So it's a total increase in terms of units of 1.9 million units, and it's basically the increase that we see right now in Asia. So all the growth is basically coming from Asia. It's still positive evolution in Mercosur and still with a decrease in terms of manufacturing volumes in Western Europe of 3.6% and also in NAFTA around 2%, even if we have a good performance in terms of the Q3.

So -- in this complex environment in terms of volumes, in Gestamp, we are taking all kind of actions in order to ensure profitability and to preserve our cash flow generation and also the strength of our balance sheet. As already commented, in terms of preserving our profitability, we are not counting with volumes. What we are counting is to implement as soon as possible all kind of strategies around the flexibilization of our footprint, of course, all kind of cost-cutting measures, especially impacting the fixed cost expense -- the fixed expenses, trying to improve our -- the efficiency of our operations and of course, with a clear focus in North America in delivering in the Phoenix Plan.

Also with a clear commitment in the positive cash flow generation, basically by being very selective in our CapEx strategy and with a strategy very focused in our return on investment and of course, preserving our focus in the management of the working capital.

And in terms of balance sheet, as Ignacio has already commented, we have been able to increase our flexibility. We have been able to crystallize some value through some partial asset disposals. We had a quite strong liquidity level. And of course, now after these bonds issuance, we have a more balanced maturities distribution.

So with all this, moving to the Slide 20, in terms of guidance, we guided at the beginning of the year in terms of sales, in terms of revenues to be able to outperform versus the market in a low single-digit range. But as it was already stated in July, now we see that we are going to be below the performance of the market in terms of revenues. But even that, we guided in terms of profitability to be in line or to a slight improvement in terms of profitability of EBITDA margin. Now we are -- we believe we are going to be in the upper range.

In terms of scrap, we guided to be basically in line with the previous year, but due to the decline of scrap prices, we see now that we are going to be below the results we get in 2024.

And in terms of leverage and free cash flow, we guided to be in the range of 2024. And now we are expecting to end up the year with a better leverage than the one we had in 2024, and we are confirming the free cash flow in the range of the one we had in 2024.

So just to wrap up, we consider our results in the year-to-date 2025 to be very positive and proving our resiliency of our business case. And of course, that is helping us to be very comfortable with the visibility we have for full year 2025. Clearly focused in delivering the Phoenix Plan. We are committed to be able to get this year 8% and also to be able to reach a double-digit margin as soon as possible. And in the case of balance sheet, we are, of course, moving to have this kind of a strong balance sheet and flexible financial profile.

So now with this, now I hand it over to your questions.

Sorry, is the operator there to start the Q&A session?

[Operator Instructions] The first question comes from Enrique Yáguez from Bestinver Securities.

I have 4 questions, if I may. The first one is regarding the market outperformance. I don't know if you are feeling confident to recover next year the traditional path of growth of the company? Or for the contrary, we should see more normalized market outperformance broadly in line with the market taking into consideration your objective of focus on profitability?

The second question is regarding the Phoenix Plan implementation. I know that the turnaround of NAFTA is performing quite well, but it seems there are some delays versus the original schedule. I don't know if we should see some savings from this schedule, potentially coming from a reduction in the measures implemented or just a question of the time frame.

Third, regarding the sale and leaseback with Banco Santander. Could you provide a guidance of the annual cash outflow expected from this sale and leaseback?

And fourth is regarding the potential measures on the steel sector. I know that you have the pass-through mechanism, but I would like to know your views about how these tariffs in euros and import tariffs might affect the European OEMs?

Okay. Thank you very much for your questions. Concerning the first one, it's true that traditionally in Gestamp, we have been able to outperform the market for years. And it's true that today, right now, we are suffering for the growth in China, where we do have a very important operation where we are growing with the Chinese OEMs, but still our penetration level in that market is not the same one we have in other geographies.

For the future, we are expecting to recover what we are doing, but I think we have stated that our focus is now to be clear in profitability and also to strengthen our balance sheet. So we are not running in order to be able to grow. We have invested. We have a very good position with all the customers. So the idea is that we will probably recover, say, our position in terms of performance with the market, but the focus is on profitability.

Concerning the Phoenix Plan, we are in line. We are committed. We will get this double digit probably by end of next year. So everything is more as planned. We have some difficulties with some plans. We have some delays in implementing some investments. And of course, we have this kind of changes in the idea with the tariffs. That's why we have decided to postpone some kind of the actions in order to wait and see what could be some implications. But overall, we are satisfied with the plan, and I think we should be able to implement all the measures that we expected in the beginning of the plan. So in any case, positive news.

I can -- the third question maybe will be for you, Ignacio. But if we go to the steel, in Europe, we had this announcement of the tariffs, still it's unknown whether it's going to be starting from the 1st of July or maybe it could be starting a little bit before. That could create a barrier in terms of the volumes of tons coming out from Asia, especially. But we are not expecting a big increase on steel prices for the auto market for the year 2026.

In any case, these tariffs are relevant and also we have in 2026 expected an impact from the mechanism called [indiscernible], which is related to the CO2 emissions. So that could also have some kind of impact. It's not a tariff, but it's going to be similar to that.

So overall, we are -- we expect to have less imports coming out from Asia but we are not expecting a big increase in the prices for the auto this year. Maybe we will have more increase in steel prices for sport but not for the auto qualities.

And maybe Ignacio around Santander.

Sure. So maybe let me recap a little bit of the transaction that we did with Banco Santander, where we sold a minority participation in 4 companies which are the owners of our real estate assets in Spain. And basically, those real estate assets include the land, the building, but they don't include productive assets. With that in mind, those companies are -- have signed agreements with our operative companies where they get a lease agreement, and their revenue income is based on that lease agreement.

Upon the results of those companies, there will be a shareholder discussion and each shareholder would be entitled to dividends. Those dividends would go through the minority participation in our P&L. Right now, as since closing, that was based in September -- at the beginning of September, we booked around EUR 0.7 million of minorities right up to Q3. If you extrapolate that number, that's the estimate that we have foreseen has normal impact in our minorities for the full year, a little bit north of that. I hope that answers your question, Enrique.

[Operator Instructions] The next question comes from Francisco Ruiz from BNP Paribas.

I have 3 questions. First one, and these first 2 are related. I hear you Paco saying that, well, you are mainly focused on profitability and leverage and trying to have a more, let's say, healthy balance sheet. But when I look at your leverage ratio, the leverage ratio are already at very low levels, and it's going to be lower in Q4 after a good free cash flow Q4 -- free cash flow in Q4. So what's the aim of Gestamp in terms of leverage for the future? And once you're getting to below 1.5x, what's your target for the future in terms of leverage? What's the use of cash that the company will do with this?

The second one is despite you talk about flexibility and the CapEx continues to be above previous levels. I mean we talked about an 8% CapEx versus a 7% last year. So I don't know if this is something which is temporary and we should expect lower CapEx in the future? Or this is something that we should expect for the coming years?

And last but not least is mainly a modeling question about the factoring, if you could give us the level of factoring at the end of the quarter.

Okay. Thank you. So thank you, Francisco. So let me go to the first one. It's true that we have decided to focus on profitability because in terms of volumes, there is a lot of uncertainty, so I think it's time and it's the right time to focus in profitability and to preserve our financial health. So it's true that our leverage is not high, and it's true that we are intending to reduce even this leverage because we believe that this is going to be very healthy to be in a position, maybe even lower than 1.5x in terms of leverage for the next months and years to come.

I don't know exactly what could happen. But today, as you see, there are many things going on in the auto sectors. There are many companies suffering. So I think for us, we believe that we have already done a very important effort in terms of CapEx in the last year. We have a very good footprint. We have a very good technology. We are focused on improving our position in Asia and India.

But coming to your second question, we believe that we can really go and strengthen our position with a CapEx to revenues level much lower than the one we had in the previous year. It's true that in 2025 and the beginning of 2026, we still have some tail from the investment decided already 2 years ago. But in all the decisions that we are doing already for many months, we are clearly moving down in this CapEx ratio. So we are going to see in the near future that our CapEx and our debt, of course, and our free cash flow generation is going to be improved. And in terms of factoring?

Yes. With regards to factoring, Francisco, we are now at this quarter with close at EUR 849 million, which represents roughly 7.3% of our sales. So within the bank that we've stated as our commitment, which was between 6% and 8% of sales.

The next question comes from Christoph Laskawi, but I'm going to make it because he's in a train and he's unable to make it, okay?

The first one is on free cash flow, and he's asking if the improvement in Q4 is going to be mainly driven by working capital. And he's also asking about the payment patterns from OEMs, if we are currently at a normal level or not.

And his second question is on supply chain. And he's asking if costs doing -- more recently have been adjusted downwards in Europe and North America, to lower cost and if the situation is more stable now. And any comments on the current situation on the demand side is also appreciated.

Okay. Good. I think in terms of the free cash flow improvement, you can talk about it, Ignacio, but regarding the payment conditions by our customers, it's true that, of course, we have like always a fight in order to collect some payments around the tooling like usual. But for us, I think what we are really committed is in order to be able to manage properly our working capital. But we don't see so far a kind of special pressure from customers due to financial restrictions. It's true that there is also a focus in their side in order to be able to preserve the supply chain. There are risks in the supply chain. And I think for them, it's very important to keep moving.

So in terms of the supply chain, I don't see there is a kind of big topics already clear in the market. We see the demand stable, quite flat as stated. We have seen some problems in the supply chain. For instance, as you know, some noise around chips, also some noise around some raw materials. So of course, there are going to be things like that, and we need to react to these kind of things. But today, for us, we don't see anything which is really impacting at least we don't have a visibility or clear visibility by customers or any stops of their production plans. But maybe to elaborate a little bit more on working capital...

Yes, sure. I mean, I think that the behavior of working capital in Q4 for this year, you should take into account the turnaround of working capital that we experienced also in 2024. And I think that we should see a similar pattern, which is pretty much our seasonality to a certain extent. So part of the levers of the free cash flow for the following quarter will be based on that working capital turnaround.

And as happened last year, we also are experiencing and as Paco referred to, we're fighting for some tooling collection, which we expect that to also come in into Q4.

The next question comes from Juan Cánovas from Alantra Equities.

I wanted to know if you could provide more details about your plans to increase the penetration with the Chinese OEMs that you mentioned before. I think in your recent document, you also pointed that you were expecting to increase penetration in all the new EV OEMs by 2027. So I wonder whether you could provide details and color on that subject.

Okay. Thanks for the question. Usually, I don't like to provide too many specific details on our nominations with the customers. It's true that we are increasing our sales a lot with Chinese OEMs so far, especially in China because the total manufacturing of Chinese OEMs right now outside from China is still quite limited. We are working with them in all the different expansion plans that they have in Europe and America and also in other areas of Asia. But still, these plans are not moving forward very aggressively.

In terms of what we do in China, from the beginning, we have some position in China trying to be allocated in the upper segment in terms of prices and quality and margins. So what we basically do in China, not our full range of products and technologies, but we are focusing hot-stamping and high-quality products like in the case of the door rings. We are also specialists in the area of chassis, special chassis, and we do a lot of chassis for EVs. And also we do a lot in the area of hinges and checks and power systems in the range of Edscha. For instance, I can tell you that today, in Edscha, it's more than 30% of our sales are in China, and more than 50% of the sales of Edscha in China are to pure domestic Chinese OEMs.

We are growing right now with many, many, many customers, many Chinese customers. And the increases that we have from one day -- from one year to another is sometimes very, very aggressive. Again, I don't want to provide more details, but you can read our sales in Asia as going down slightly in China, going up a lot in India.

And in the case of China, our sales to, let's say, European players are going down, and we are able to offset and compensate part of it what we are doing now with pure Chinese OEMs. So we see a good trend. We have a very good position with them in their research and development centers.

And as far as they go to more sophisticated EV vehicles, we have much more chances to be quite -- very more suitable with our technology. Chassis for EVs, we are very much advanced and we're one of the leaders in terms of chassis for EV solutions. And in the areas of door rings, we are clearly one of the players over there with our technologies. We have our overlap patch technology. So I think we are doing a very good job, and we are very well positioned for that. So still, it will take some time to recover and to move all the business we have from 2 European players to Chinese, but we are in the right path. And of course, we are expecting very good news for the expansion of the Chinese OEMs outside from China.

The last question comes from Anthony Dick from to ODDO.

My question was regarding the outperformance or the underperformance rather. I heard your comment about China. And obviously, I think you're not the only one in that situation for sure. But I was actually looking at Western Europe, where the underperformance has accelerated throughout 2025. And I also heard your comments about prioritizing profitability, but I was just keen to understand whether there was something specific in the Western European region that was causing this increased underperformance maybe with some clients or another or something like that?

Okay. Thank you. Yes, it's true what I mentioned, I think the most important part of our underperformance is coming from China and also especially from the Chinese OEMs. In Europe, I think we do have an underperformance in Western Europe, not only in this quarter but also in 2024. But it's true that we have offset the part of this underperformance with a very healthy growth that we have in different countries or around Eastern Europe.

We have been increasing our investments and our operations in countries like Poland, Czech Republic, Slovakia, Hungary, Romania, also in Bulgaria and also in Turkey. So this is offsetting part of that. It's true that as far as we are leaders in this market, the decline that we have in Western Europe compared with the market sometimes is linked to some specific programs that we have a very good position out of them.

I can tell you that, for instance, there have been countries like Spain that have been impacted to some specific programs. This year, we are impacted by a specific program that happened in U.K. So there are always a lot of questions all around. But concerning what we have doing the analysis, are we losing market share in Europe? The question -- the answer is no. We are doing well with them. We are -- in most of the new programs, we are doing a very good renewal of the programs, a carryover of many programs. So we are doing well in Western Europe and growing a lot in Eastern Europe.

Okay. Thank you. Thank you very much for taking the time to join us today. And as usual, the IR team remains at your disposal for any further doubts. Thank you again.

Okay. Thank you very much.

Thank you.

Good evening. Thank you very much to all of you for taking the time to attend Gestamp Half 1 2025 Results Presentation in this afternoon for you. I'm Ana Fuentes, M&A and IR Director. And before proceeding, let me refer you to the disclaimer on Slide #2 of this presentation that has been posted in our website and with it our the legal framework and in which this presentation must be considered.

The conference call will be led by our Executive Chairman, Mr. Francisco Riberas; and our CFO, Mr. Ignacio Mosquera. As usual, at the end of the conference call, we will open up for a Q&A session.

Now let me please turn the call to our executive Chairman.

Good afternoon, and thanks for attending this call in which we will be presenting in the H1 and Q2 results of our group. Basically, we have delivered a very positive set of results in H1 despite the difficult market conditions in Europe and in North America. In this context, the revenues of our auto business at FX cost have been reduced by 1.1% in Q2 and by 0.9% in the first half 2025 compared with the previous year. But even with a slight lower volumes, we have been able to increase our EBITDA margins up to 12% in the second quarter of this year.

And we have also recorded EUR 182 million free cash flow in the second quarter and close to EUR 100 million in full year in the H1. So very solid set of results, which will help us in order to be able to have a good visibility to reach the full year 2025 guidance. Global light vehicle production volumes have been quite solid in the first half of the year, reaching 41.3 million units in our footprint, meaning an increase of 3.7% comparing with H1 2024.

Even if it's a solid growth, it's mainly driven by a very positive performance of manufacturing volumes in Asia and mainly in China. On the other hand, in Q2 and also volumes in Europe and North America have been lower than the previous year and especially in Western Europe, with volumes far behind the ones we had before the pandemic.

In this context of a very heterogeneous market, Gestamp auto business, revenues at FX constant has been reduced by 0.9% in H1 2025, meaning an underperformance of 4.6% compared with the market. By regions, we had a slight underperformance in Western Europe, but it has been compensated with a very good overperformance in East Europe.

In America, we had some underperformance in North America and our performance in line with the market in Mercosur. And the main impact is coming from Asia, where we have reduced our revenues in H1 by 3.3% and while the market has grown by 8.2%. Gestamp reported revenues in H1 has amounted to EUR 5,844 million, meaning a minus 4.8% compared with H1 2024. But out of this decline of our reported revenues in H1, 2/3 of it is coming from negative ForEx evolution due to the strong performance of the euro versus most of the currencies.

As part of FX, H1 revenues have also been impacted by the decline of scrap prices and also by the decrease of auto manufacturing in Europe and North America, as already stated. So we had a record profitability for the second quarter despite a difficult market environment, especially in Western Europe, which remains to underperform versus the market and with the volatility, with high volatility arising due to the tariff uncertainty, especially impacting North American volumes.

So in Q2 2025, we have generated EUR 332 million EBITDA, meaning a 12.1% EBITDA margin, which is 101 basis points better than second quarter 2024 and with lower revenues. And in full H1 2025, our EBITDA has reached EUR 626 million, excluding finance cost, an 11.3% margin, which is also 49 basis points better than the one in H1 2024 and again, with lower sales.

So we have been able to do that due to the implementation of structural and short-term actions, such as important cost reduction initiatives implementing flexibility measures, having some kind of constructive customers' negotiations and, of course, very focused in a good delivery in Phoenix. So strong profitability, which has helped us to have a very good visibility for the full year 2025 guidance. In terms of Phoenix, of course, we have believed during the first half of the year, a complex market environment also in North America. With a decrease in terms of the units of manufacturing in the first half of the year of 4.1% in North America, especially a decrease in U.S.

In terms of the Phoenix plan, we are on track, we are doing well, even with lower expenses than expected. In the first half of the year, we have accounted EUR 9.5 million expenses and CapEx up to EUR 5 million -- but we have been able to improve our EBITDA margin quarter-on-quarter. So in the second quarter we have generated 7.7% EBITDA margin, which means a substantial improvement versus 6.4% we have in the first quarter 2025, and in the complete semester, we have reached a 7.1% EBITDA margin compared with 6.6% EBITDA margin in the first half 2024.

So we are clearly in line to reach the target of the 8% EBITDA margin for this year, even if we are facing worse market conditions. And of course, as I stated several times, Phoenix remains as a very high priority for our group. Moving to Slide #10 and scrap, very good performance also of scrap in the first half of the year despite a scrap prices decline. And this decline of the scrap prices has happened in the first half of the year, mainly in Europe but also in China, and this decline on the scrap prices has forced our revenues in the first half of this year to be reduced by 11.3% and even if we have less revenue than the previous year, we have been able to sustain quite well the EBITDA margin, the EBIT margin for it.

So we have reduced this EBIT margin from 7% in the first half 2024 to 6.7% in the first half 2025. So overall, we are quite satisfied with the performance so far of scrap because it's offering a good financial return and also a good strategic fit within the strategy of Gestamp. We see growth opportunities for Gestamp for scrap. And in this Q2, we have closed the acquisition of the company, López Soriano, a company which is based in Spain, a company that will help a scrap to consolidate and enlarge our market position and is also adding new activities to the group such as the recycling of electrical and electronic equipment.

And with this, now I hand it over to Ignacio Mosquera.

Thank you very much, Paco, and good evening to everyone. If we move to Slide #12, we can have a closer look to our financial performance in the first half of 2025, as Paco has already explained, Phoenix plan aimed at restructuring our NAFTA operations has had a EUR 9.5 million impact on our P&L and a EUR 5 million impact on CapEx for the first half.

And as a reminder, in the first half of 2024, we had an impact of EUR 12 million in our P&L. We have included comparable figures for both periods, excluding Phoenix. For the first half of 2025, we have reached revenues of EUR 5.844 billion, which entails a 4.8% decrease when compared to the EUR 6. 140 billion from 1 2024, mainly due to the strong ForEx impact in the period. Revenues for the auto business, excluding Gescrap, at FX constant have been almost flat with a 0.9% decrease year-on-year in 2025. Thus FX has negatively impacted results by EUR 205 million. In terms of EBITDA, we have generated EUR 641 million in H1 2025, meaning an 11% margin. Excluding Phoenix impact, EBITDA in absolute terms would amount to EUR 651 million with an EBITDA margin of 11.1%, improving 2024 profitability in almost 50 bps and providing visibility to reaching full year 2025 EBITDA margin current.

Reported EBIT is almost flat in the period, increasing by 0.1% year-on-year to EUR 286 million with an EBIT margin of 4.9%. Excluding Phoenix impact, it would amount to EUR 295 million, reaching a 5% margin. Net income in the first half has been EUR 75 million. That compares to the EUR 106 million reported in the first half of 2024.

This lower net income is explained mainly by the negative financial result performance which has been strongly impacted by ForEx evolution in the first half of 2025 and a comparable first half of 2024, which was positively impacted by one-off hyperinflation. Net debt has closed the first half in EUR 2.141 billion, reducing net debt in EUR 50 million compared to the first half of 2024.

As for free cash flow, we have had a strong positive free cash flow generation in the quarter, offsetting Q1 negative free cash flow due to normal business seasonality as we will later detail.

To sum up, a solid set of results considering the volatile environment with less sales where we have demonstrated our ability to improve profitability in the period, providing visibility for the year and preserving our balance sheet discipline.

If we now turn to Slide 13, we can see the performance by region on a year-on-year basis. Looking at each region in detail. Revenues in Western Europe have decreased by 3.9% year-on-year in the first half 2025 to EUR 2.117 billion. Revenue evolution in the region has been affected mainly by volume pressure in the period and to a lesser extent, the continuous fall in raw material prices.

In terms of EBITDA, it reached almost EUR 270 million and EBITDA margin stood at 10.3% in the period, down from the 10.9% reported in the first half of 2024. Profitability in the first half has been impacted mainly by volume drop, which still limited -- with still limited operating leverage. Western Europe is a region where, despite flexibility measures being taken, these are slightly more challenging to implement and see the result.

In Eastern Europe, the performance in the first half of 2025 has been very solid, providing a gain or a strong position in the region. On a reported basis, during the first half of 2025 revenues have grown year-on-year by 5.4%, up to levels of EUR 999 million. Despite the strong impact of ForEx evolution in the [indiscernible].

EBITDA levels have increased by 29.9% to EUR 153 million with an EBITDA margin of 15.3%, beating the 12.4% margin reported last year first half. The profitability improvement is mainly attributed to a better project mix, highlighting the strong project ramp-ups in Turkey during the period.

In NAFTA, Phoenix plan continues to show signs of improvements in the year with good underlying operations that led to a sequential EBITDA margin improvement quarter-on-quarter in the period. Our revenues have decreased by 11.2% year-on-year, mainly due to a complex market environment leading to a negative volume production performance in the first half.

However, on the other hand, EBITDA has decreased to a lesser by 5.6% if we exclude Phoenix impact of EUR 12 million in the first half of 2024 and EUR 9.5 million in the first half he good evolution of Phoenix plan leads to an EBITDA margin of 7.1%, improving last year profitability in around 40 bps and setting the pace to achieve the target of around 8% EBITDA margin range for 2025. As you all know, turning around the operations in NAFTA to improve our market positioning and profitability is at the top of our priorities.

In Mercosur, the first half of 2025 has been marked by the ForEx evolution in Brazil and Argentina, leading to lower revenues in the period, decreasing in 6.8%.

At FX constant, we grow in the region more than 9%, outperforming the market once again. EBITDA levels dropped in the quarter by 5.6% that led to an EBITDA margin of 10.8% despite the decline in revenues in reported terms, we have been able to maintain similar levels of profitability, thanks to the flexibility measures were implemented in the region and a favorable comparative with last year due to the floods we suffered in May 2024.

In Asia, reported revenues have decreased by 5.4% year-on-year in the first half to EUR 904 million within a complex and very competitive market. Our negative performance in the period is mainly due to the extraordinary revenue growth in first half 2024. Despite the difficult comparable, we slightly improved our performance at FX constant quarter-on-quarter from minus 5% in Q1 2025 to minus 1.6% in Q2 2025, leading to a lower underperformance in the region.

EBITDA level in absolute terms have decreased by 4.9% and EBITDA margin stood at 14.6%. We have been able to maintain a stable profitability in the period due to the good performance of our new projects in India. Our approach continues to be focusing on premium products in the region, and we keep on working to gain positioning in this region, maintaining strong levels of profitability.

Finally, Gescrap has seen revenues decreasing by 11.3% to EUR 281 million and EBITDA in absolute terms by 9.1% year-on-year, reaching EUR 24 million for the period. This situation is mainly due to the sustained decline in scrap prices, as Paco mentioned before.

Nevertheless, we have a slightly improved profitability levels that led to an EBITDA margin of 8.6% in the first half of 2025. Overall, we have seen that our unique business model and geographic and global diversification has driven our profitability improvement in the first half of 2025.

Turning to Slide 14. We see that, as we already mentioned in our Q1 results call in May, we are back to positive free cash flow generation in line with our typical business seasonality. As shown on the slide, excluding finish costs in Q2 2025, we have generated EUR 182 million of positive free cash flow, a record free cash flow generation in the second quarter, providing a strong visibility for the full year. As a result, during the first half of the year, the company has generated a positive free cash flow of UEUR 99 million offsetting first quarter negative free cash flow. The EUR 99 million free cash flow generation considers dividend payment of EUR 39 million, EUR 25 million of minorities, M&A and equity contribution, EUR 65 million of ForEx impact in the quarter and excludes Phoenix impact of EUR 9.5 million of P&L and CapEx of EUR 5 million.

From now on, as mentioned in Q1 2025, we will exclude the ForEx impact in our reported free cash flow to eliminate either the effect, either positive or negative. For 2025, we are committed to meet the full year guidance, generating free cash flow in the 2024's range.

As a result of this, we move to Slide 15. Where we see that we ended first half of 2025 with a reported net financial debt of EUR 2.141 billion, which implies a net debt-to-EBITDA ratio of 1.7x. If we assume Phoenix plan impact in H1 2025, leverage ratio further decreased by up to 1.6x in the period. We have managed to improve our net financial debt, delivering the lowest first half level since IFRS implementation and sustaining the same leverage as first half 2024.

Our priority is to preserve our financial strength, and we remain disciplined over leverage in absolute and relative terms.

As we turn to Slide 16 and as we have just announced, we are proud to share that we have signed today a partnership agreement with Santander that will contribute to deliver on our strong balance sheet and leverage commitment. The agreement foresees Santander making a capital injection of around EUR 246 million in a set of Propcos taking a blended of around 39% stake on Gestamp's Spanish real estate assets.

This new company will be the owner of our 23 industrial plants in Spain within a total value of EUR 379 million according to a third-party valuation. Gestamp will keep full control of the assets that will continue to operate through a lease agreement and the shares owned by Santander will be included as noncontrolling interest in Gestamp's financial statement.

With this partnership, we give entrance to our reference shareholder, crystallizing value from Gestamp's asset and is strengthening our balance sheet profile. Furthermore, we will be able to reduce our net debt, leading to a leverage ratio pro forma for the first half of 2025 of 1.5x. This would be the lowest ratio Gestamp would have reported and in line with our commitment presented in our 2023 Capital Markets Day.

With this, thank you all, and now I hand over the presentation to Paco for the outlook and final remarks.

Okay. Thank you, Ignacio. Going to the next slide, Slide #18. Light vehicle manufacturing in 2025 has been difficult to forecast, especially due to the uncertainties around tariffs even if volumes were expected to fall in April after tariffs announcement, at the end of the day, H1 has been positive versus H1 2024. And the latest forecast is showing an increase of 0.4% compared with the previous year.

Of course, we need now to take into consideration the latest tariff yields, the one which happened between U.S. and Japan some days ago and also the agreement with Europe and U.S., which happened yesterday that probably will provide more visibility for the rest of the year.

In any case, the growth expected for full year remains very heterogeneous, which meaning that there's going to be some decrease expected in North America of around minus 4%. In the case of Western Europe, we are also expecting a decrease for full year of something around 5% compared with the previous year, and an improvement in Mercosur of 7.1% and also in Asia of 2.5% compared with the first half 2024. In any case, in Asia, it's expected some decline in H2.

So we have a sustainable strong financial profile. We have good results of this first half of the year, which clearly shows the commitment of our group towards reinforcing our strong financial profile but also preserving our strategic leadership position in the market, a market which seems to be with a limited growth ahead of us and also with high uncertainty.

In this sense, we have focused our efforts, and we will focus our efforts in improving profitability, implementing all kind of cost control measures at all levels of organization, no matter whether it's plant, division or corporate having constructive negotiations with our customers, focus on operational improvements and also implementation of flexibility measures in order to preserve profitability with market and of course, with a strong commitment in the delivery in the Phoenix plan.

A part of improving profitability, at the same time, we want to preserve a strong balance sheet profile trying to find the right balance between growth, profitability and CapEx with a CapEx strategy more and more focused on return on investment. With a clear focus on free cash flow generation, reserving a strong liquidity level and also trying to crystalize the value of some of our assets with transactions such as the one that has been commented by Natura recently, which is a very important milestone for ours.

So moving to Slide 20. And despite the difficult market conditions and following good results in H1, we reiterate our guidance for the full year 2025 for our auto business in terms of revenues, even if we have underperformed in H1 we are looking for an improvement in the second half of the year. And in terms of EBITDA margin, we had a good performance in H1, and we are targeting an improvement for the full year compared with 2024. For Gescrap, even if with lower prices of scrap, our profitability should be in line with the one we had in the previous year.

And in terms of leverage and free cash flow, we are confident to reach 2024 range on a full year basis or better.

So just ending up, I would say that we have had a very good set of results in the first half of the year, which is providing a strong visibility in order to deliver in the full year 2025 guidance. Of course, Phoenix plan remains as a key priority for the company, and we are quite confident that we will reach all the EBITDA margin targets and of course, very focused in reinforcing our financial profile in terms of profitability on free cash flow.

So with that, now we are open to your questions.

[Operator Instructions]. And our first question comes from the line of Francisco Ruiz from BNP.

My first question is on this situation in terms of growth, I mean, is remind me to one of your local competitors, which is something that I like. So do you think that the situation of lower growth but the higher foreseen profitability is something for the medium term and not only for the short term? Or this is something that you are adapting to the currency situation and probably growth will return in the in the coming years.

And also in line with this question, probably this effort will come with a lower level of CapEx, which has not been the case in this semester. So could we expect a weaker CapEx in the second half?

The second question is on the deal with Santander. So we got the proceeds, but could you tell us what is the impact on -- in the P&L? I presume that Gestamp will pay a fee to the -- to this company and this will come as a minorities or something like that? I mean if you could give us the final impact on net profit as well.

And last but not least, you are reiterating your free cash flow guidance when you are already at EUR 100 million versus EUR 130 million of last year. Do you think that this is quite conservative, taking into account the traditional seasonal effect on what's capital in Q4?

Okay. Thank you very much. So I'll take the first two questions, and thank you for your questions. So regarding the lower growth and better profitability. I think we are all aware that in the last years, we have seen level limited growth and a lot of uncertainties around, so the message is that we are sending to all our teams and all our plants is that we need to be able to deliver in limited growth. That does not mean that we keep on moving in some of the -- some projects in different areas in the world. But the idea is that we need to be able to reduce and not just trying to improve our profitability whenever the volumes are going up.

So always, there could be some kind of short-term wins, but the truth is that we are now committed to be able to increase this profitability in the long run, no matter even if the volumes are not really growing. That's the point. I think here, when we talk about the cost control measures, we have a lot of opportunities. We should not forget that our company has been continuously growing throughout the years and the moment of stability or more stability is helping us in order to find a lot of opportunities and advantages in a cost basis, and we can talk also about the flexibility. So sustainable, yes, without higher volumes.

And in terms of CapEx, I think we have already announced that we were in clearly to reduce our intensity of our intensive CapEx model and also we have stated that it takes some time because we have some commitment and these commitments take some time until they are materialized. So that's why still we have some CapEx in place and probably for this year and part of next year, we will still have this kind of high CapEx.

But clearly, the trend that we have for the future is that we don't need to have such a CapEx intensity for the future, and we should be able to use our existing investments in terms of generic assets in order to be able to deliver on new projects.

And maybe, Ignacio, you can talk about Andromeda?

Sure. With regards to your question on deal with Banco Santander, First of all, we will not be paying a fee to Banco Santander as such as a minority shareholder, they're entitled to shareholder remuneration, such as dividends in the same way as we are entitled to it. and that shareholder remuneration will be subject to the shareholder agreement and the Board of Directors of such company.

So basically, there is no commitment with Banco Santander to pay any fee. With regards to the cost, certainly, it's a cost which is below our cost of equity and weighted average cost of capital. And at the same time, you have another impact, which is basically that the liquidity will be used to reduce debt, and we will reduce certain interest expense.

So overall, it provides an attractive cost ratio, which is well below our average cost of debt. And finally, this deal, what provides us the value realization of our assets. Certainly, the value of our assets right now valued externally and upon which Banco Santander has invested in this Propcos is EUR 379 million, but the book value of it is certainly much lower, about 1/3 of that amount.

On your last question around free cash flow guidance, and where we're being conservative, I think that we need to acknowledge that we're living in a volatile environment. And within this volatile environment, we're taking a prudent approach towards free cash flow generation. We should expect in Q3 that working capital will have a negative movement as a consequence of normal seasonality and that we will recover it in the course of Q4.

And we want to take a prudent approach. We believe that we will be in the range of 2024 amount and that's the best case that we have at this moment.

Our next question comes from the line of Christoph Laskawi from Deutsche Bank.

The first one would be coming back to the topic of growth a bit. Obviously, your constant currency growth includes negatives from steel. Could you give us a rough indication of your out performance or underperformance issue exclude potential negative steel price effect? Or if you can eliminate the steel price? Would you be closer to your original guidance of an out performance? Or any indication really would be appreciated because it seems like it makes a relatively sizable difference also in Q2.

And then on Europe, -- did you see more recently towards the end of June, early July, any more significant changes in the call-off patterns or in the schedules of major customers considering that we had 2 profit warnings or 2 warnings related to Europe is there anything that you would see which will be more significant in that regard?

Okay. Thank you. In terms of your first question, I think clearly steel has an impact in 2025. Probably, I would say that the main impact we can find it in Europe rather than in rest of the world, and it has some limited impact, whether a part of this underperformance is coming from that, that is true. But it's also true that we really check where we have the underperformance and mainly underperformance toward the market is in Asia.

And it's clear that the Asian market has performed well, especially in China, and that has been driven by the growth in terms of manufacturing by some Chinese local players. And we have not been able to grow with them in line with the kind of cost we have in other areas. So that is the main impact.

I would say that, of course, the steel prices declined mainly in Europe has some impact in order to consider this underperformance.

And the second question? Yes. In terms of the -- what is our view, what is going on in July and June, I think that the kind of information we have from all our plants is that the programs from our customers remain quite stable. There are no bad news. There are no good news. There's been some kind of improvement in some programs related to EV vehicles.

We still see some geographies like U.K. quite depressed. Germany has done a little bit better, and especially in EVs. But to be honest, we have not seen any big change in the mood of our customers, which should be at the end of the day reflected in their programs. So basically the same trend.

Our next question comes from the line of Robert Jackson from Banco Santander.

Just 2, 3 questions. First of all, regarding the North American market, can you give us any view on how you're progressing with increasing your exposure to the U.S. OEMs and possibly the reassuring impact we could be seeing in the future or the near future?

Secondly, regarding your Indian growth, can you give us an update of how that is progressing? And when do you think that you will be seeing some impact from these -- the investments taking place there and considering it's a high -- relatively high growth market.

And then thirdly, regarding the Chinese growth can you give us any messages regarding the negotiations or potential growth there, whether it's still long term or whether we could see anything in the shorter term? Those would be my questions.

Yes. I think, Robert, I did not hear very well. I understood the last maybe I can answer this question, and maybe I will try to understand a little bit more about your first one. But regarding the Chinese growth, in terms of -- for us, for Gestamp, I think last year, we did a very important increase in terms of our turnover in the market.

So we did quite well, and we outperformed the market. And this year, we are doing a little bit worse. That is related in some extent, that some of our customers, which largely have performed quite well. This year, in the first half, they have performed a little bit worse.

If we just to provide a little bit more detail on what is going on in China, probably in the last month, I think it's much more public the kind of discussion in the Chinese market about this kind of competition between different OEMs in order to gain market share. It's been some kind of position from the government in order to refrain to do this kind of reduction in terms of prices.

And it's true that we have seen already some kind of changes in the manufacturing volumes of some of these Chinese domestic players. I cannot provide with more details, but it's true that some of the customers, which we're doing quite well in the beginning of the year, now they have slowed down a little bit due to this.

So probably in terms of manufacturing, it could be that we see some kind of reduction compared with the performance in the first half of the year in China.

So the first question was related to North America. I understand.

Yes. Correct. Yes. And the volume reshoring in the U.S. and your exposure to the U.S. OEMs. How is that progressing?

Yes. I think, as you know well, we have the exposure in the U.S., not just for the, let's say, U.S. manufacturer, but also for the Europeans and also for the Asian customers. I think in our case, what we have seen is that there is some decline in terms of sales coming out from the different programs, especially from some European programs. And also, there's been some delay and decline of some of the existing programs with some U.S. manufacturers.

I can -- usually, I would like to provide more details on that. but it's true that they are suffering and not only, let's say, the foreign companies, but also the local players. So volumes, I think that the kind of program that we see for the second part of the year are not bad. I mean the trend we see is not bad. But still, I think many of these companies were very much waiting and see what was going to happen with the tariffs.

And some of them are also related and impacted by the problems in Mexico and Canada because some of them are in the manufacturing, they are importing a lot of components coming out from Mexico and Canada. So I think right now, so far, I cannot provide you with more light on that.

And the third question was related to India, your investments in India and how that is progressing by when -- when do you expect to see some impact in that in the Asian growth could that help to compensate some of your weakness or slowdown in China?

Yes. India is already improving. I mean in terms of our sales in India are already improving. We used to have at least last year, 3 plants, 2 of them located in Pune, and another one in Chennai, now we are investing in 2 additional plants, 1 located in the area of [indiscernible] and another 1 also in the area of Pune.

We have good nominations in different programs, not only with let's say, Indian OEMs like Tata or Mahindra, but also we have some businesses from some other companies, not only from Europe, but also from Asia. So we see that the growth that we are intending to have in the next years from now is going to be quite solid in terms of organic growth, and we see a lot of opportunities in India moving forward.

For instance, the demand of hot-stamping in India is clearly growing, and we are right now about talking about 5 hot-stamping lines in India.

[Operator Instructions]. Our next question comes from the line of José Asumendi from JPMorgan.

Few questions, please. Paco, can you talk a little bit about the actions you're taking in the U.S. to improve margins, maybe from the head count from a utilization of the of the plants or any other actions you take to improve the profitability. I am aware that the environment has not been easy and probably the customer call-offs have been very, very volatile in the first half of the year.

Second, China geography, are you finding the customer call-offs in China from your key customers in China are becoming a bit more reliable. I mean we've seen a very sharp decline from -- in German OEMs, I think, in the last year, in the first 6 months of '25 as well. But I think there are some signals of stabilization. You think you can benefit from this stabilization into the second half.

And the third question, I would love to understand a bit better the logic of the deal with Santander. I mean when I look at your leverage, I think you don't have a very low leverage debt-to-EBITDA, but it's not very high. It definitely it is not stretched. You have a strong balance sheet. So I was just wondering if you could speak a bit more about the logic of the deal and how does it reinforce strategically your balance sheet? And does it open up any other strategic opportunities going forward?

Okay. Thank you, Jose. Basically, around the U.S. and what we are doing in the Phoenix I think it's a bunch of different things. In the beginning, we stated a plan where we were trying to focus not just in the plants themselves which were the main problem, but also trying to get synergies in the area of purchasing. In fact, we have improved a lot in our purchasing areas, also purchasing from different areas in the world that we were not doing.

We were buying very locally. We have also conducted very constructive negotiations with customers. I think we were not moving fast enough in order to be able to recover the high levels of inflation, which happened in 2021 and 2022. Also, we have done a very good job in trying to reinforce our culture and trying to be able to retain people, talent, which is a big problem in our U.S. plants.

Probably the most clear advance that we have done is that we have focused our efforts in 3 plants, then we moved to 4 plants. And these plants were doing very bad in terms of EBITDA margins.

Now I can tell you that we put in for each of these plants, we did a partner company from Europe and the teams of this company have been working together with the teams in the plants in U.S. And now I would say that two of these plants are already out of this program because they have already been able to generate more than 10% EBITDA margin. We still have 2 companies, which are in a position to really improve.

Of course, we have done a very important analysis of people and also a very important revamping of some of the lines. So everything is basic work that we are doing in U.S. and with the support of our teams, especially from Europe.

Regarding the -- your second question around the volumes in China, it's true that the -- let's say, the nondomestic Chinese OEMs are losing ground versus the domestic companies. And that has happened already in the last 5, 6 years. I remember that back in 5, 6 years, the market share of this domestic Chinese was around 40%, and now we are -- they are close to 65%. So this has been a very important trend.

It's true that since already 2, 3, 4 years, there are some Western companies, which are trying to defend their positions. And I think some of them are doing a good job. And some of them are also trying to get and reach agreements with Chinese players in order to improve their efficiency and the profitability. That's the case, for instance, of what is Volkswagen doing, trying to find some kind of agreements, working with JAC, working with [indiscernible].

So these kind of things seems to be moving in the right position, so they are starting to stabilize. And also, we see that even though Mercedes and BMW are suffering, it's true that they have a little bit more time because the combustion engines in this segment, in this premium segment are performing much better than the ones in other kind of segments.

So it's true that we see some opportunity, even though the trend still is negative for the foreign companies in China. And I think confirming Santander, Ignacio?

Yes, sure. I mean, Jose, thank you for your question. I think that what you mentioned with regards that we're not very leveraged. I think it's actually correct. And we've had higher leverage in the past, and we've been able to deal with it. But we also had a very firm commitment in 2023 when we did our Capital Markets Day to be below at 1.5x and to generate positive free cash flow and to be between 1 and 1.5 to be actually correct.

What has happened between 2023 and now is that essentially our top line and our EBITDA have been penalized by volumes and by effect. Under free cash flow generation, obviously, it's not at the levels where we expect it to be at that moment in time. but we are still firmly committed to that leverage ratio, and we thought this was a very good opportunity to ensure and to help achieve that leverage that we committed to.

But further to that, it's also because we're really crystallizing value. We've been doing a substantial amount of investment in the past years. And that value is not shown in our balance sheet. And right now, with the transaction like this type, can we demonstrate that there is a lot of value in our balance sheet that should be taken into account.

And probably to add a little bit more on that. Right now, with a market which is not intended to grow too much. And after the kind of footprint and facilities that we have in place, I think to be able to reduce the debt, it's also providing us some kind of optionality in order to be able to be looking for potential future opportunities.

There are no further questions from the phone at this time. So I hand the conference back to you.

Well, thank you for taking the time to attend today's presentation. As usual, the IR team remains at your disposal for any further questions you may have, and we wish you all a very good vacation.

Okay. Thank you. Bye-bye.

Thank you.