Gurit Aktie

Ladies and gentlemen, welcome to the Gurit Full Year 2025 Results Live Webcast. I am Sandra, the Chorus Call operator. [Operator Instructions] the conference will be recorded. [Operator Instructions] Note that the conference must not be recorded for publication or broadcast.

Today, the audience will hear from Mr. Tobias Lührig, CEO of the Gurit Group; and Mr. Viktor Bernhardt, CFO of the company.

At this moment, I am pleased to hand over to Mr. Tobias Lührig. Please go ahead.

Live from Gurit's headquarter here in Zurich. I'm pleased to have with me today our new CFO, Viktor Bernhardt.

In 2025, we did our homework. We executed a rigorous restructuring program, repositioned the company for future growth. Today, we will demonstrate that these efforts have already started to materialize in the second half of 2025, and are expected to continue going forward.

We structured today's presentation into 3 parts. I will start with an overview about the financial performance, for example, net sales, operational results, then business market highlights, and give you 2 or 3 facts about our sustainability efforts in 2025. Then Viktor will continue with a deep dive on the financial results of 2025, including restructuring costs, free cash flow development and balance sheet positions. Then I will resume, give you an outlook about our strategy and the market, an overview of the wind market and how we operate in those growing markets and why we are well positioned to capture future growth. And I also present you some selected highlights from our Marine and Industrial businesses. Before we dive into the Q&A session, I will conclude with the guidance for 2026 and a midterm outlook.

Let's start with our 2025 achievements. Gurit successfully completed its restructuring program and streamlined its production footprint with reduced overhead costs and exited significant unprofitable businesses. As a result of these measures, our net sales decreased from CHF 431.7 million to CHF 319.6 million, mainly due to the discontinued businesses. Our reported operating results were at CHF 43.2 million, reflecting restructuring effects. However, on the adjusted basis, we reached an EBIT of CHF 29.7 million. Our return of sales went from 6.9% in 2024 and improved to 8.1% in 2025.

Despite this challenging year, we delivered a solid financial results. The net debt reduced by CHF 7.7 million to CHF 55 million. The free cash flow increased significantly to CHF 12.3 million compared to CHF 4.4 million in 2024. These figures provide a clear indication of the progress achieved over the past 12 months, a leaner, more focused organization with improved profitability and strong cash generation.

In 2025, we focused on profitable strategic important businesses. At the same time, we worked on our resilience and diversification by advancing our multi-market strategy. I'll give you some example of that. For example, in the Wind Systems, we secured a long-term supply agreement with Western OEM, supported by our Gurit OptiCore technology. We entered new markets like the subsea markets and we've been awarded with a multiyear subsea contract, entering an attractive new market where we see strong positioning of our company and strong growth potential. Therefore, we are expanding our footprint in Australia and Dallas in order to serve this future growth in those segments. We ramped up our capacity in Europe and our production facility, especially in Falces in Spain in order to meet future demand. I will provide you more details on the underlying market growth and demand drivers later in the presentation.

Let me provide you an overview of our 3 business units. Wind Systems ended at CHF 119 million; Manufacturing Solutions at CHF 41 million; and Marine and Industrial at CHF 88 million in sales.

In Wind Systems, we delivered stronger-than-expected performance despite strategic exits. We improved competitiveness through footprint optimization and restructuring. As I told you, we secured the first long-term contract based on our OptiCore technology. And I will share you more details on how our new operational setup is looking like later in this presentation.

In Manufacturing Solutions, the net sales were in line with our expectation. We experienced a small, small slowdown in early '25 and followed by a recovery later in the year. The outlook remains positive because we received some positive signs in early 2026.

In Marine and Industrial, we operated generally in a softer market environment, achieving the major breakthrough in the subsea segment, as I mentioned before. All across the 3 business units, we see a clear evidence of improved positioning, with early wins validating our strategic direction.

Let me now turn on the supply chain performance and the ongoing topic of the U.S. tariffs, focusing first on -- of the year 2025. Throughout the year, we experienced -- actually, especially in the first time half of the year, we experienced fluctuating freight rates and volatile transit times. Despite this environment, we ensured high service level by relocating select suppliers and optimizing our inventory management. These measures allowed us to maintain stable operations and reliable customer supply.

In 2025, the impacts of the tariffs were minor. As a direct importer, we paid less than $1 million, where the majority of those tariffs could be passed through. We are currently working with duty specialists to reclaim those tariffs. But due to the high pass-through rate, we do not expect significant positive effects. More relevant were the indirect effects, early year order delays, particularly in Marine and Industrial. And over the course of 2025, it gradually normalized during the year. While we had expected that the tariff topics go away, it has recently resurfaced, as you know. However, due to our organizational setup in Canada and Mexico, both benefiting from the U.S.-Mexico-Canada trade agreement, the direct impact of currently imposed tariffs remains limited.

Let me briefly share 2 highlights of Gurit's sustainability efforts in 2025. We were awarded the EcoVadis Gold rating once again. This place Gurit in the top 5% of all assessed companies, and it's notably worth that we say that this is the third time -- consecutive time we achieved this rating. As another highlight, I would like to mention that we reduced our Scope 1 emissions by 24% since 2020. That means that we are very well on track on our defined pathway toward a net zero company. This achievement underlines the continued commitment to sustainability, combining external validation with measurable progress on emission reduction.

And now I would like to give you to Viktor.

Thank you very much, Tobias. Good morning, and a warm welcome from my side. Let me guide you through our financial 2025. But before we start, just some opening remarks from my side.

The headline of my -- today's presentation is transformation completed well positioned for 2026. And this is pretty much what we see in our 2025 financials. On one hand, last year's financial performance was heavily impacted by the transformation Gurit went through. On the other hand, financials which we do report for 2025 show as well how swift, how decisive Gurit executed the transformation and why we believe that after the completion of it, we are well positioned for 2026.

Key facts. In 2025, we generated net sales of CHF 319.6 million. Operating result was driven by major onetime effects, minus CHF 43.2 million. Our adjusted operating result was CHF 26 million, and the margin of the net sales was of 8.1%, well above previous year.

Gurit generated, despite the restructuring efforts we went through, a cash flow of CHF 12.3 million, and reduced its net debt down to CHF 55 million by the end of 2025. We dive a bit deeper into it. The decision to stop the carbon fiber pultrusion business as well as to focus on profitable wind customers had, as expected and as communicated, a major impact on our top line. In addition, business unit Marine and Industrial and Manufacturing Solutions were, especially in the first semester, impacted by tariff uncertainty and delayed customer decisions. All this in combination with unfavorable FX effect. Of this, we saw a decline in our net sales of 26%.

The gross profit went down by 13%. However, in relative terms to net sales, it was already above previous year. Adjusted operating results, here, we reached CHF 26 million. And same as before, we are, in terms of net sales margin, we are well above previous year. Our operating result was minus CHF 43 million. And if we look deeper into it and the drivers for it, by building a bridge, we see that the main deviation comes from business divestments and here, from goodwill recycling of CHF 64.2 million related to carbon business pultrusion business exit. We had restructuring expenses of CHF 4.3 million, mainly in Denmark and Italy as well as some minor impairment adjustments.

I mentioned before that the financials 2025 show a clear picture of how we manage the transformation and why we believe to be well set for 2026. If we compare the second semester '25 with the first semester '25, where we still were in the -- heavily in the restructuring phase, we see that our gross profit went significantly up in the second semester and our adjusted operating result went up to CHF 16.7 million or 10.8% of net sales, a significant increase versus the first semester.

Diving deeper into the -- some balance sheet items. Our trade net working capital reduced in line and along with our business reduction. We reduced it by 25%. Our net CapEx we spent last year was CHF 8.7 million, reflecting a somewhat smaller Gurit, and reflecting as well our disciplined project execution while continuing investing in operating efficiency. Our free cash flow was at CHF 12.3 million, well above previous year.

Net debt. Here, we successfully managed to reduce net debt by nearly CHF 8 million down to CHF 55 million by end of last year. The equity went down by CHF 8 million, heavily impacted by CTA of CHF 12.3 million. And last but not least, our net debt-to-EBITDA ratio went significantly down from 2.5 to 1.6.

And with this, I hand over to Tobias for the outlook.

Thank you very much, Viktor. Before we go to the outlook, let me just take a few minutes to give you 2 insights about our market environment in wind energy and our positioning as well as on the marine and industrial sector.

Let's start with the wind energy. This is our primary market at this point in time. There are some global megatrends we are riding on. The global electrification is accelerating. Megatrends such as digitalization, artificial intelligence and the rapid expansion of data centers are driving a significant increase in electricity demand around the world. This growing demand must be addressed through evolving energy mix, with renewables playing a central role. And if you take a closer look at Europe, wind is the extremely strong and very competitive energy source that will be tapped over the next few years.

According to the global supplier forecast of -- by Brinckmann, Western OEMs are expected to deliver a compounded annual growth rate of about 10.5%. This growth is supported by strong regulatory frameworks in the Western markets, clear decarbonization targets in the countries and in the regions and a continued policy to support renewable energy. This combination of structural demand growth and supportive regulation creates a highly favorable market environment for Gurit, particularly given our positioning in advanced composite material for wind and energy applications.

Let's take an even closer look. It is important to note that according to the industry expert and our own analysis, Chinese OEMs are expected to play a relatively minor role outside of China. The market penetration is projected around 16% globally ex China by 2035. Chinese OEMs are likely to enter price-sensitive markets such as India, Southeast Asia, Turkey and Australia. And it's also, I think, important to note the moment those OEMs -- non-Western OEMs enter a different market and they open local manufacturing sites, they're also seeking for global suppliers like Gurit.

Let me go on 2 submarkets, the onshore and the offshore market, and I start with the onshore market first. Here, the market dynamics looks like the following. We expect a growth at approximately 6%, primarily driven by the European demand. Around 70% on the future onshore installation are forecasted to be accounted by the 5 major OEMs.

In the offshore market, we see a slightly different picture. We expect a stronger growth between 14% and 16%, but kicks in a little bit later. And the regional driver is by far the European market region. The -- I think it's important to note that the U.S. market outlook is expected to have minimal installation due to the current U.S. policy framework. And if it doesn't -- if it change, and we see it probably change after the next administration, we will see positive effects not earlier than the 2030s.

I understand, it can be sometimes challenging to grasp what Gurit actually does and is producing, especially if you are just starting to look at our business. Let me clarify this a little bit by focusing on Wind Systems. Gurit provides mission-critical supplies and tools for the wind turbine blades, including highly engineered molds. They are essential for building the blades, and they are 100-meter long steel structures, very complicated. We produce and deliver core materials, PET and balsa, which form the internal structure of the blades who are essential to deliver structural integrity of the blades.

We make tailor-made kits. They're ready to assembly on the spot delivered to our customers for each blade. And we produce highly -- high-performance profiles, assuring a reliable torque transition when you -- from blade into the turbine. And we produce special coatings, ensuring performance, durability and efficiency, not only during the production process, but also in the aftermarket. We believe that no other suppliers in the market offer those breadth and integration of products and services that Gurit provides for wind turbine blades. This combination of material tools, engineering service positions us very well as a strategic partner for our customers.

As you know, and it's very easy to spot trends. Turbine becomes larger and larger, and so blades become larger and larger. And some of you have asked me whether this could reduce the market size for our core material. The answer is easy. Based on detailed analysis of our engineering data we get from our customers, and we can grasp by ourselves, we can see that the increase in material usage more than offsets any potential reduction from the larger blade designs. As a result, demand for core materials remain robust. Given the current design trends, Gurit is well positioned to fully participate in the global market growth.

As I promised you earlier, let me guide you through our new production footprint for Wind Systems. Currently, we operate in 7 countries, strategically serving the wind industry. This network is deliberately designed to ensure customer proximity, cost-efficient production and strategic risk mitigation.

Our key location and capabilities are, for example, Ecuador, where we positioned ourselves in a country that are producing 80% of the global balsa supply. And we are the only major player with free access to -- that means we don't have our own plantation, and thereby avoiding structural supply risk. We are located in Mexico, near the U.S. border, specialized in core material and kitting. In Spain, we are focusing on kitting and core materials, supporting the European demand. In India and China, we are producing and we are -- concentrated our production of structural profiles. And in China and India, we're also producing molds for manufacturing solution. And in both countries, we have kitting and core material capabilities.

Talking about core materials. Gurit supplies to the market very important core materials and ready-to-use kits using both recycled PET and so-called virgin PET. Recycled PET enables us to meet the strictest sustainability requirements of our customers. And with the choice between recycled and virgin PET, we have access to multiple raw material sources that reduces the dependency on any single supplier or supply chain. We benefit from a strong scale effects through centralized extruder facilities in our core markets. Many decades of continuous product optimization have delivered us industry-leading yields on our extruders. Our proprietary OptiCore technology allows customers to reduce blade weights by several hundred kilograms per blade. This weight reduction enhances turbine efficiency over its lifetime, creating value both for direct customers as well as for the end users.

Now I would like to go to the Marine and Industrial business for a while. Looking ahead, the Marine and Industrial market are expected to show moderate growth, influenced by a slower marine demand due to the U.S. tariffs and a decline in certain U.S. segments. Despite these headwinds, we entry -- we have entered new market segments and driving increasing demand, particularly for the recycled PET form in the industrial space.

Our Corecell or proprietary Corecell technology is seen as the only long-term reliable solution for specific application in the subsea and defense sector. We expect a strong growth in the subsea market. And also, we see multiple opportunities to replace traditional materials such as with across various industries. New products are in the pipeline and are expected to start impacting top line later this year and the years to come.

We believe Gurit is now very well positioned to capture those growth in the marine and industrial sectors. We have the best-in-class structural engineering plus scalable kitting capabilities to support efficient production. The proprietary Corecell technology delivers exceptional and consistent material performance. We only begin to unlock new lightweight opportunities by replacing traditional materials with Gurit solution, improving performance efficiency and total system cost.

Let me now come to the guidance. We believe and we see that the net sales from continued operations at constant FX rates to increase at a mid-single-digit rate. Our adjusted operating results margin will improve versus 2025, obviously depends on geopolitical situation and market development, including FX fluctuations. Our midterm outlook, post 2026, we see a mid- to high single-digit growth in wind, a high single-digit growth in nonwind, and we are reaffirming a 10% operational result margin going forward.

We completed our transformation. We have now a leaner and cleaner footprint. We reduced our overhead costs. We improved our operational resilience and focused on strategic partners and customers. We believe we position the company for sustainable profitable growth in the future.

Before we go into the Q&A session, let me give you some -- our 3 next important dates. This will be April 16 with the Annual General Meeting and the Q1 '26 results. On August 26, we present you the half year report. And on October 23, we present you the Q3 numbers.

At this point in time, I thank you very much, and I'm -- and we are happy to take any answers.

[Operator Instructions] Our first question comes from Laura Bucher from Octavian.

I have 2. First, I'm looking for some comments on China. I mean, you deliberately reduced your exposure to domestic products in China. So I'm wondering how you're positioned to capture the growth from, number one, the 120 gigawatt annual installation target under the new 5-year plan, which is, I think, is quite sizable.

And number two, from the Chinese OEMs gaining share internationally, if I'm not mistaken, they've increased their non-China share threefold last year? And also, have you factored any of this into your '26 and post '26 growth targets? I'll take my second question after the answer, if I may.

Yes. Thank you, Laura, very much for the questions. Yes, we are working with Chinese customers, obviously. And yes, we are working with Chinese customers outside China as well. And as I told you in one of my slides, we are getting requests, especially for the growth outside of China for our core material and kitting services. And I believe we are strongly positioned over there.

Yes, we see this 120 gigawatts installation as well. We expect a little bit less than that, but it's on an extremely high level. And we -- but I think it's most important that we really focus on profitable customer relationships. So we are very selective and don't participate in any big price competition in the China market. We have factored a little bit into this -- of this growth into our numbers going forward.

Okay. And just wondering why are you not guiding -- You're only guiding to -- well, not only, but anyway, you're only guiding mid- to high single digit and not the 10% growth you expect in your Western market. I'm just wondering why you expect less? Is it the lower prices? Do you see risk to your market share?

We don't see any risk at the market shares. The prices are very stable. But nevertheless, we are still a little bit, let's say, conservative in terms of the global situation.

[Operator Instructions] The next question comes from Marti Queral from UBS.

Question number one would be, please, could you give some color on what were the drivers of the gross margin expansion in H2 versus H1? I mean is it all related to the discontinuation of the carbon fiber business? Or did you have also some tailwinds from lower raw material prices?

I take this question, Marti. Thank you very much for the question. No, we didn't have any special effects in H2 on the gross margin. It's really mostly coming from the discontinuation of the carbon fiber pultrusion business. No major tailwinds.

Okay. And then for 2026, I mean you expect core EBIT margin above 2025 levels, so above 8.1%. And -- but I mean, most likely, I would say that this implies a contraction compared to the 10.8% margin that you had in H2? I mean could you elaborate why you do not expect the H2 margin to be sustainable in '26?

Yes, a fair question. And we're kind of -- we're expecting this one. Indeed, we delivered above 10% margin in -- for 2 consecutive quarters. On the other hand, we want to be prudent, similar to the answer Tobias gave before. We are cautious going forward with all the uncertainty still.

Okay. Then I would have a question on the wind business, also similar to a question that was asked before. But I mean if I look at the outlook statements from wind OEMs, they are encouraging for 2026. But then if I look in '25, for example, the megawatts that some of these OEMs delivered grew double digit, while the core sales in wind materials were down 3% roughly. So my question is, could you help me understand where is this difference coming from? I mean -- is it due to lower ASPs? Is it changes in market share? Like some color would be appreciated here.

Marti, just to have your question correct, so you're asking why there is a difference between the market growth and us being down on wind?

Basically, yes. Yes.

Okay.

Yes. We have seen that the raw material prices went down and some of our raw material prices will reflect also into our sales prices.

But mostly -- if I may add, Marti, I mean we -- as we said, we stepped out from nonprofitable customers in line. So it's -- that we gave basically sales away.

Okay. Okay. That's clear. But I mean now you just said that raw materials went down. So I mean, I guess this helps also on the margins. That was my question before.

That goes in line, but I mean, it was not a major tailwind on the gross profit.

Okay. Okay. And then maybe one last question, if I may. I mean you had an equity free cash flow of around CHF 11 million, I would say. I mean is this the new base level that we should think about Gurit going forward? Is this something that you can achieve also in 2026?

On the free cash flow, well, the free cash flow [ '25 ] was impacted by restructuring measures, which we don't expect in that magnitude going forward. So I think the level of [ '25 ] should be -- definitely set the rock bottom for us.

Ladies and gentlemen, this concludes the question-and-answer session. I would now like to turn the conference back over to Tobias Lührig for any closing remarks.

Yes. Thank you very much, everybody, for participating today. And I hope I see you soon in the -- for the next media conference. I wish you a great day. Thank you very much, and bye-bye.

Thank you from my side as well.

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

Hello, everybody, and welcome to the Gurit H1 2025 Results Media and Analyst Conference. As said, my name is Tobias Lührig, and I'm the new CEO of Gurit, and I'm pleased to be here with you today. I will focus over the next few minutes on what happened during the first half of the year 2025, providing you with some context and background. After that, we will take a deeper dive into the financial sections. Before we move then in the Q&A session, as noted, I will return to present the outlook for Gurit for the full year of 2025.

We completed the restructuring of the company. We booked restructuring expenses of CHF 40 million, of which CHF 80 million were impairments. Due to the planned exit from the carbon fiber pultrusion business, our revenue declined by 20.1% to CHF 164.7 million. In addition to these portfolio changes, we also experienced delayed order intakes, partly driven by the uncertainty around the ongoing U.S. tariff discussion. Javier will provide more background on this later in the presentation. Despite these headwinds, we achieved an operating profit of CHF 9.3 million, translating into a 5.7% margin, slightly above last year's margin of 5.4%.

Naturally, total profit was higher last year, mainly due to the stronger revenue base. Main business remains the Wind Materials segment, which generated CHF 105 million in revenue during the first half of 2025. That translates to a decline of 22.9%. The drop primarily reflects the previous mentioned exits from the pultrusion business. We continue to focus on strengthening relationships with our Western wind customers by securing long-term agreements. As highlighted in previous calls, our strategy is to concentrate on strategically important markets and key customers.

Manufacturing Solutions generated -- sorry, CHF 15.2 million, a decrease of 24.5%, mainly due to delayed order intakes. However, we're seeing strong growth in the Indian market, and we expect a stronger performance in the second half of this year. Marine and Industrial sector, we recorded CHF 45.6 million in sales, representing a decline of 10.5%. Despite this negative growth, we are pleased to report steady progress in capturing opportunities in the lightweight and marine vessel application sector, particularly with our flagship product, Corecell S-Foam.

Looking ahead, we are excited to begin deliveries of fee-based solution to new industrial market segments, including home and workspace application as well as the transportation sector starting in Q4. Supply chain pressure has eased during the first six months of 2025, leading to lower material costs. However, we experienced higher logistic costs, largely due to the ongoing situation in the Red Sea. U.S. tariffs had only a minor direct impact on our sales and profits, while we are able to offset those effects with a set of countermeasures.

Nevertheless, we see more indirect effects for our customers and end users in specific markets, as I mentioned on previous slides. Javier will provide more insight into this in just a moment. Speaking of Javier, as previously announced, he will be leaving Gurit at the end of November. The search for a new CFO is nearing completion, and we will share an official announcement as soon the ink is dry. Looking ahead, we remain confident to our multi-market strategy and will continue to strengthen our global position as a leader in lightweight performance materials.

Thank you very much, Tobias. So let me show you some key information on the financials of the interims report 2025. So if we take a look on the net sales, as already mentioned, we reported CHF 164.7 million in the first half year, which represents a decline of 20.1% at constant rates versus last year. We did stop the carbon fiber pultrusion business in Denmark and India in the second quarter of 2025, leading to the significant drops in sales, especially in the Wind Systems segment. To give you an overview, the total annual sales of this discontinued business was CHF 101 million in 2024 and was CHF 25.8 million in the first half of 2025.

Additionally, we did focus our wind business on profitable customers, supporting our overall profitability. Together with the restructuring savings, we did realize better results in the segment of Wind Systems compared to last year. The restructuring, which we initiated at the end of 2024 has been mostly completed. And as communicated, this was linked with only minor relocation of the production and related customer qualifications so that we were able to complete this successfully and obviously also fast.

Again, I'm very happy to report that we were able to improve the operating profit before one-offs to 5.7% of net sales. The free cash flow for the first half of 2025 amounted to negative CHF 13.2 million. We expect that in half year 2, we will have less cash out, coming from the restructuring. And at the same time, we are working on optimizing our net working capital. Overall, the net debt resulted in CHF 79.3 million at the end of June 2025. Going into a further split of the different segments, we have reported CHF 105 million in sales in Wind Systems, again, linked to the stock of the carbon fiber pultrusion.

With the evolution in the segment Marine and Industrial, where we saw a reduction of CHF 10.5 million year-over-year to CHF 44.6 million, we were not happy, but this was linked to project delays, tariffs and somewhat weak marine market in the first half. We know that the strategy refocus does not happen within six months. And at the same time, we did record contracts with high potential, and we are confident that this will have a significant impact in the coming years. The segment Manufacturing Solutions recorded net sales of CHF 15.2 million. We believe that the second half year will be stronger, so it will be a back-end loaded 2025.

The gross margin -- the gross profit margin improved to 18.3% in the first half of 2025, reflecting also the efficiency improvements in the production. Last year, the margin was 17.8%. In absolute terms, the gross margin reduced to CHF 13.1 million, all of this related to the reduction of the sales level. As part of the restructuring, we did also reduce the overhead cost proportionally to the decline of the net sales. At the end, the profit margin improved to 5.7%. We are expecting a better profitability in the second half year.

Consequently, we maintain the full year guidance, leading to a full year profitability of around 7%, equal to 2024. I need to mention that we did have an impact from the recycling of the goodwill on the former Fiberline business. Closing down this carbon fiber pultrusion business caused a onetime other operating expenses of CHF 64.2 million. This goodwill recycling had no cash, no equity impact, but obviously was recycled to the profit and loss statement. As a last portion of the overall restructuring package at a cost of CHF 40 million, we did book CHF 2.9 million in April 2025, and this was mainly related to the closure of our Italian PET production in Volpiano.

Let me show you now a comparison of the 2025 half year results versus last year. Starting with CHF 11.6 million as per half year 2024, we did see a volume and mix impact of a negative CHF 11.7 million. Customer price evolutions were successfully controlled and combined with the material purchases had a negative impact of CHF 2.7 million only. The positive impact from efficiency measures in the production of CHF 12.5 million includes a reduction of group overhead costs in it as well.

The direct impact, as we heard of the tariffs discussion was minor in the first six months. And overall, finally have reached CHF 9.3 million in operating profit, translating to 5.7% profitability in the first half of 2025. Let me show you a couple of other important KPIs beyond the profit and loss statement. As mentioned, we are working on optimizing our working capital. It stood at CHF 73.8 million at the end of half year 1. This is reflecting the trade net working capital, including inventories, receivables and also payables.

A further reduction in the second half will help to optimize our free cash flow accordingly. The investments in the first half have been at CHF 3.8 million. We are focusing on projects with a faster payback period and replacement CapEx leading to this result. As said, overall, the free cash flow is in line with our expectations at minus CHF 13.2 million. Let me give you an overview about our financing situation. Our net debt increased by CHF 16.6 million to CHF 79.3 million. This includes apart from the free cash flow impact also earn-out payments and also the last payment related to the acquisition of our Dallas site in 2024.

Our financing, as mentioned, is secured until 2028. On the equity side, we saw a significant negative impact coming from the exchange rates, resulting in a negative CTI effect of CHF 11.9 million. Our net debt to adjusted EBITDA ratio remains solid at 1.9x. Let me elaborate on the U.S. tariff situation. As we heard, the direct impact on the discussion has been very minor in the first half year of 2025. Based on the current status, we are exempted from any tariffs for imports from our Mexico facility and our Canadian facility based on the materials we supply to the U.S.

For imports from the European Union and U.K., tariffs now amount to 15% or 10%, respectively. Indirectly, the market uncertainty was leading to postponed customer orders for investment decision. In the segment of Marine and Industrials, we saw a drop in sales accordingly. For the remainder of the year, we see no change in the very limited direct impact on our financials. And we hope that the clarity on tariffs will reduce the indirect impact on customer orders and investment decisions. Now let me take a look on the markets we are serving, starting with the wind market.

A growth in the onshore market in all regions outside of China is expected until 2028. Onshore growth in the U.S. is supported by incentives in spite of most likely raising costs. At the same time, with the market growth, our addressable markets will grow as well. When watching at the offshore market, we do see -- we do not see any progress in the U.S. market. This is kept stable over the next four years. In Europe, though, the potential is significant and the market is more than doubling over the next four years. Still, we feel quite some uncertainty about the anticipated evolution, and we remain cautious.

In China, where Gurit has very limited exposure, the onshore market will stay the stable over the next years, while the offshore market will grow as well in China. As a result, we expect that Chinese competitors may expand internationally. Our assumption currently is that they may gather around 20% of the Western market. With our efficient footprint, we will be well prepared to serve the market and also the growth. If we take a look on the important market around marine and industrial, let me give you here some insights as well.

Overall, the marine and industrial markets have very good growth potential being an important pillar for Gurit's future growth. We are concluding on important contracts with a significant potential in the coming years. At the same time, our new focus on the markets require some patience to develop. We are very confident that we are on the right path. Especially within the marine markets, we go beyond the luxury boats and see growth potential across multiple -- different marine applications like commercial work boats. New markets are being developed, replacing incumbent material like wood by PET applications.

At the same time, we are keeping our focus with an enforced sales team on our strength. Overall, we are expecting a high single-digit growth of the segment, Marine and Industrial over the next years, beating the market. The short-term uncertainty will reduce, as mentioned, and strong opportunities will support this growth. Thank you very much for listening to the financials and the markets. And with this, I give over to Tobias, who will elaborate on the outlook.

Okay. Thank you very much. Let's finish this presentation with the outlook for the remaining year 2025. Our year-end profit guidance remains unchanged. We expect the operating profit margin to stay at the 2024 level. We are providing a sales guidance of about CHF 300 million for this year.

Our focus remains on the most valuable segments of the wind market while continuing to drive innovation and sustainable solutions for our customers. In the long term, we continue to expect mid-single-digit growth in the wind business and high single-digit growth in our non-wind segments. Thank you very much for your attention.

We will begin the question and answer session. [Operator Instructions] Our first question from Tobias Klöpper, ZKB.

My first question would be on the adjustments to the operating results and specifically on the loss on business divestments. What do you include there except for the goodwill recycling? Is that the full loss from the discontinued business?

Tobias, so you are referring to the CHF 64.2 million?

Yes.

So the CHF 64.2 million is really exclusively the goodwill recycling coming from the former acquisition of the Fiberline business and includes the carbon fiber portion only. You may remember that we still have the glass fiber pultrusion business in Tianjin being profitable, and we kept that portion of the goodwill on our books.

And the discontinued business, so if you refer to the net sales amount, this includes, let's say, 98% is related to the carbon fiber pultrusion and the very, very small piece is related to the business that we sold in Camigliano, Italy, which was the PET recycling topic. You can adjust for the records also this is purely the carbon fiber pultrusion.

All right. Then my next question, we heard a lot from competitors about high volumes in China due to the ending of the subsidies beginning of next year. Did you also see an impact from that? And then do you see maybe a reversal next year?

So actually, yes, so this is very positive. So apart from the restructuring measures, we see a high load in China and a high load in China does not mean necessarily for the local business only, but also for the Western business. So we are experiencing the same. And for the remainder of this year, we see similar volumes. This was a little bit our fear. For the local Chinese, it may drop for next year for 2026. But as mentioned before, the local Chinese business, we have almost no exposure to this.

Next question comes from Laura Bucher of KBN.

I am apologizing in advance if there will be a little bit harsh. First one, it seems to me that the old drivers of your business are not so valid anymore. I mean if we look at order intake and turbine deliveries at the OEMs, they have been record high since 2023.

And yet your wind materials, even if we exclude Fiberline and the tooling division, they keep reporting organic decline quarter-on-quarter again. My fear is that it has really become very commoditized. What will it take, honestly, to get this back? And then my second question, I mean, I appreciate that the underlying margins are improving, but I wonder how long can you keep restructuring your business to offset market challenges and support your underlying performance before you run out of a business and cash?

Let me take the first question, Laura, and thank you for those questions. In fact, it's not only that we reduced the wind sales based on our stop of the carbon fiber pultrusion. We did also have a decline in the sales for our core materials. And this was very actively done in order to really focus on profitable business. We are not showing the split of the profitability by segment.

But I can assure you that we are very happy right now with the evolution of the profitability in Wind systems, where we are a little bit less happy is with the evolution of Marine and Industrial, which is also surprising based on the sales and also manufacturing solutions. So important for us is that the market, our core market, let's call it, addressable market where we are in, is growing over the next years. So if you want to see there is, let's call it, a new base, and we are ready to grow in the markets where we want to be.

So this is probably regarding your question about commoditizing of the business and where is the market going. And potentially for your second question on the restructuring and running out of off catch. So the restructuring was exclusively in the area of wind materials. And we have to say that the big portion of this was related to the closure of the carbon fiber pultrusion business. So this is gone.

So we -- obviously, there will be no other impact for the future years on this side. On the cash side, we did not see the full potential yet. So as mentioned, we are planning to improve our free cash flow for the second half. We have the financing until 2028, and I agree, it's obviously crucial to follow the path that we are outlining here in order to also keep the carbon system ,absolutely correct.

Javier, this is Philippe Royer, the Chairman. I would like to add something to this interesting question. So the PET world is commoditizing and we are focusing on customers where we have unique selling points, and I'm going to give you some examples. We have developed a unique software that allow customers to, let's say, reduce their cost in the blade, for example, reducing their resin consumption. This is leading us and has led us to sign long-term agreements with very large customers.

And when I say long-term agreements, we are talking about agreements up to five years, where for the five years, we have secured, obviously, the market share at these OEMs. And we are doing that with different large Western OEMs, meaning our visibility in the wind market and the growth we are going to benefit from the wind market is going to be secured by these LTAs that's again are possible because we are developing tools that allow us to avoid the usual commoditization trend that we see in this market.

So that's really the main element that make us getting out of usual price decrease for commodities, allowing our customers to save costs while we offer new solutions. We do that with several large OEMs, and this is really the basis of our wind policy now working with strategic customers where we offer more than a typical PET foam producer can offer.

[Operator Instructions]

Our next question comes from [indiscernible] UBS.

First one would be on Chinese competition. I mean, do you keep facing strong pricing competition from these Chinese players? And if so, do you see them entering the European wind in the coming years?

So on the price, there is, let's say, a controlled price pressure and obviously, as we are also supporting by LTAs with our main customers. So I guess we gave in 2024 a bit the impression that this was a huge impact, but this was also linked to our focus now on the customers where we have also good positioning.

Right now, there is a very limited ambition of the Chinese to enter the Western market, but we see some plate manufacturers, for example, entering the North African market. So right now, we are far away from this 20%, which I mentioned before, but we believe that there may be some competitors entering for our products, the Western market. And this 20% is supported by, let's say, external experts of the wind market. It's not our guess. So this is what we assume also going forward. But right now, just for the records, we see a limited entering of the Chinese into the Western market.

For the record, we think that they are going to be able to enter North Africa, Middle East, some countries in Eastern Europe. And some countries in South America leading to a 17% to 20% market share by 2030, more or less.

Okay. And then I have kind of a follow-up on Western OEMs. What is your margin and pricing visibility with Western accounts? And how do you feel about it going forward?

The question was about the margin?

So what will be the price decreases or price expectation of the large Western OEMs, right?

I think, obviously, we don't communicate on margins, but quite clearly, there is a request for, let's say, what they call a productivity improvement every year, which would be a price decrease. This price decrease is mitigated because we are offering new solutions, as I mentioned, for example, option for them to reduce the weight of their blades and to reduce their cost in the blades. And so this price decrease is for us limited. There is a price decrease, but you may recall that we are around 1% or 1.5% and not 5% or whatever could be the request, thanks to innovation and improvement in our products.

Okay. And then the last question maybe would be on cash flows. I mean, you already said that you expect H2 to improve on cash flow. But then how should we think for 2025 in general? Do you expect to be already free cash flow positive? And also if you could give us some indications on 2026, that would be also appreciated.

We did not, let's say, to make comments on '26, did not -- do not give any guidance for '26 yet, but we will get to this later this year. If I say we will become better in half year 2, so obviously, our ambition is to get close to the 0 on the free cash flow. I mentioned this, I think, also when we published the 2024 results when we gave the guidance on '25. So we will be working hard to get as close as possible to the 0. Where we will end, it's obviously depending on many factors, but this is our ambition.

Next question is a follow-up question from Laura Bucher.

It's not really a follow-up, but just wanted to get your view on the potential impact for Gurit of the TPI bankruptcy filing. And also LM continues struggling, maybe going out of the blade business at some point, who knows. So really just to get your view there. Do you expect this to impact supply chain availability of blades? Will someone else get those blade volumes? Yes. So if you can help me out there.

[Technical Difficulty] TPI filed for Chapter 11 with their U.S. entities earlier this month. Their entity in Turkey right now and India not being impacted by this Chapter 11. What we see right now is line also with what TPI communicated, the business is still running and this is the ambition that this business will run. Main customers of TPIs, which are also our customers have the need that TPI continues production, especially in North America.

And this is what is happening. Obviously did not come as a full surprise the evolution of TPI. They had recorded quite bad numbers also in the quarterly media release, especially the balance sheet was quite weak with a lot of loans. So we were partially prepared. And right now, it is important also for us that the business continues.

We are in discussions with both TPI and also the end customer to reduce our exposure to a minimum, and this is what we are working on. So as a summary, we do not see a short-term impact on the business. It may be obviously that for the TPI locations, there might be different solutions. We don't know them yet. And also an exposure for us, we see it as limited right now.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Tobias Lührig for closing remarks.

Yes. Thank you very much, everybody. And the next date will be the 23rd of October 2025 with the Q3 results and net sales, and I'm happy to hear and see you there. Thank you very much.