Tecnicas Reunidas Aktie

Good afternoon, everyone, and welcome to TR's First Half 2026 Results Presentation. It's going to be conducted as usual by our Chairman, Juan Llado; and our CEO, Eduardo San Miguel. It's going to last approximately 25 minutes, and you will be able to post your questions after final remarks.

Now, I leave the floor to our Chairman, Juan Llado.

Thank you. Thank you very much, Antonio, and good afternoon to everyone. It is a pleasure to have you here and being able to start with this very important second-quarter presentation.

Allow me now to quickly walk you through today's agenda. I will start, as most of the time, with the main highlights for the first 6 months. And then I'll walk you through 2 very important awards taking place this last quarter.

Eduardo then will step in to talk about our company TR's Power and its remarkable first step in North America -- our North American momentum, which is very important, our services and the utilizations, IE, and robotics. I will finally close with some remarks and our guidance.

So let me start with the key highlights. And in this case, the key highlight, I guess the most important one is this second quarter performance. And I'd like to be very brief. I mean, the important number here is EUR 73 million. EUR 73 million EBIT signifies 5% of our sales, a decent level of sales of EUR 1,478 million and a net cash of EUR 344 million. And very important here, 0 provisions. So this is the important message here.

The fact that we have a decent cash, no provisions and decent levels of sales also shows how the Middle East projects are moving and progressively moving back to normal.

But if we want to analyze the full semester, the -- both quarters, it has to be compared with the same period last year. And now what you see that sales semester against semester have grown by 12% to EUR 3,061 million. And also the net cash, if you compare last year with this year, increases by almost EUR 100 million. And obviously, this first semester, our EBIT is EUR 104 million as we have to maintain the EUR 45 million provision.

So finally, some messages that goes together with the numbers. Middle East execution is moving to normal. That's my message. It is moving to normal. It is very well understood as payments from our customers are unchanged and on time. That's the message.

And the third message that this is very important is that we're managing a very robust order intake of EUR 6 billion and a high probability to end the year with EUR 8 billion plus, and EUR 8 billion plus driven by the Middle East investment mood, the power strategy and North America. 3 places, 3 businesses that I guess is very important within our strategy and our future growth.

So now let's follow with the 2 most important awards that have taken place this quarter that covers part of what I've said before. The first one is a big one. It's a EUR 5 billion job by ourselves. It is operation job. We have 2 customers, 2 very important customers, ADNOC and Exxon. And here, quantity is important. Obviously, EUR 5 billion is important, but quality is very important. And it's very important if we want to take part of this big investment momentum that is taking place in the Middle East.

It is important because we need to have and we are having the trust of the most important investors. In this case, it's Exxon and ADNOC. Both, they know and differentiate well our capabilities. They understand very well our engineering capacity and our engineering quality.

They understand extremely well our modernization capacity and technology very much needed to take this job to a safe harbor. And they understand very well our capacity and quality to manage construction on island or very complex sites. So the quality and the quantity of the job is -- are very important, and we're very proud -- extremely proud of this job. And we're extremely proud that those customers have entrusted TR as a sole contractor.

And the next job size is different, but in terms of our strategy as important as the previous one. It's a power job. We're doing the engineering and procurement. It is Alberta, it is Canada and it's the power. And we work here with Siemens turbines.

This project very much validates our power strategy that we have presented to you on several occasions, it validates our North America strategy and it validates our strategy, power strategy, which is very much driven by the enormous demand for the hyperscalers as Meta happens to be this case.

You might be wondering why TR? Well, we have strategy. You have to know that Pembina is an old customer of us and understands well the quality of TR services and engineering capacities.

Siemens as well, this is not going to be the first nor the second or the third project that we do with them. And you all know that we are well positioned now not only in the United States but as well as in Canada. So this job is good news. And you have to be optimistic. You'll see more to come. There will be more to come.

So only with this talking about power, I'll let the floor to Eduardo, who will definitely add some color to this.

Okay. Juan, Thank you. Good morning, everyone. And finally, as Juan says, many other power projects are to come. So let me first elaborate about TR and the power generation business.

During the first half of the year, we successfully completed the spin-off of TR Power, our power unit. This was a critical milestone that provided TR Power with a dedicated and focused structure to capture a huge opportunity of growth because the key message I would like to emphasize today is the size of the opportunity ahead of us.

Historically, our power business generated a few hundred million euros of revenues per year. More recently, at our Investor Day held in Madrid last October, we were targeting this business could deliver around EUR 1 billion of annual revenues.

Today, however, the outlook is significantly stronger. If we continue securing awards at the pace we are currently doing, EUR 2 billion revenues per year should not be a great challenge.

In other words, we are potentially looking at a business that could double the size we forecasted only a year ago. This is why we are investing heavily in capabilities and talent. We are going to double our power workforce by the end of the year, ensuring that we have the engineering resources required to support this growth.

As of June 30, TR Power's backlog stood at approximately EUR 2.2 billion. And in addition, we have a strong visibility on projects that have not yet been incorporated into the backlog.

First, there's a EUR 1.1 billion power project in the Emirates, where we are already executing early works and where we expect the final notice to proceed by October. And second, the 3 combined cycles we were awarded by RWE in Germany representing around EUR 1.5 billion. Hopefully, the final notice to proceed will be received throughout the next 12 months.

Artificial intelligence in the U.S., electrification in Europe and industrialization in the Middle East are the 3 drivers that will support the massive growth cycle we are already facing. And rest assured, we are more than ready to be one of the main players to take advantage of this momentum.

Let's now move to North America. North America is becoming one of the most strategic growth regions for Tecnicas Reunidas. In 2025, we secured around EUR 70 million of early engineering services awards, and just in the first half of 2026, we have already reached EUR 52 million. But what is more relevant to me is to observe how our projects awarded a year ago are already transitioning from the pre-FEEDs and FEEDs stage to the engineering stage. And we also expect some of these projects to enter in the EPC phase soon.

In fact, our first project will be transformed into an EPmCm before year-end if everything evolves as expected. Contract value will be around EUR 200 million. I would like to emphasize, we are talking about an engineering, procurement management, and construction management project because our policy is to minimize the risk of construction in America.

Other ongoing early engineering services have the potential to evolve into approximately EUR 8 billion of EPCm awards during 2027 and 2028, providing us obviously a good visibility for future growth.

And eventually, I would like to emphasize the strong relationships we are building with many of the clients shown on this slide, clients that allow us to capture opportunities in the U.S., but also in many other countries across America.

U.S. is, together with the Middle East, the largest investor in the future energy infrastructure. And we honestly believe we have been able to build still -- and still a small but very solid franchise in the United States. We are confident U.S. will be the region where TR will deliver the highest growth in the coming years.

Let's now turn to services, digitalization, artificial intelligence, and robotics. Services and Digitalization/Robotics/AI are tools that contribute to increase our efficiency and profitability, but also contribute to improve our market positioning since they strengthen our relationship with the management of our clients.

Starting with Engineering Services, momentum remains very strong. During the first half of the year, we secured EUR 130 million of awards, and we expect to close 2026 at approximately EUR 375 million. A significant portion of this figure will come from North America, as we explained in the previous slide. This performance gives us increased confidence in achieving our objective of EUR 500 million of annual revenues by 2028, while maintaining gross margins around 30%.

Regarding to Digitalization, Artificial Intelligence and Robotics, we are also making significant progress. We believe that Digitalization and Robotics will be transformational for our industry. But in the meantime, it is an unlimited source of productivity improvement and cost efficiencies that can potentially be converted into a competitive advantage or better margins.

2 years ago, we fixed our target for cost savings in 1.5% of our revenues. And according to our actual understanding, this is not a major challenge at all. That is why we expect to invest around EUR 40 million in 2026 and increase the dedicated workforce up to 400 professionals by year-end.

And before entering into the financial figures, allow me one last message from my side about our operation. We are aware Middle East power generation in America gives us a unique opportunity to grow, but we do not plan to grow for the sake of growing. We remain committed to increase our profitability.

Services and Digitalization will finally contribute to improve our margins and our efficiency. But our traditional EPC activity will not miss its focus in delivering solid margins.

And now the financial results. I have talked about revenues at the very beginning of the presentation, and I would like to focus now on margins. This chart illustrates one of the most important achievements over the last 18 months, the consistent improvement in our profitability quarter after quarter.

I would also like to emphasize this improvement has always been fully aligned to our guidance. Margin improvement is the result of a structural improvement in the quality of our business, driven by a more strict project selection during the commercial stages, the fulfillment of our SALTA strategy and a disciplined execution with increasing operational efficiency.

In this context, we are navigating the consequences of the conflict in the Middle East. We made an exhaustive analysis in the first quarter, and we concluded the EUR 45 million provision was our best estimation of the impact of the war. And we transparently communicated this impact to the market.

Last week, we have revisited our analysis and based on the premise that the conflict ends in this third quarter, we consider the EUR 45 million provision is still correct. And consequently, there is no need to modify the figure.

And now let me finish with one of the clearest KPIs of TR's transformation in the last 3 years, the strengthen of our balance sheet -- the strength of our balance sheet.

Our financial figures goes on improving. TR net cash reached EUR 344 million in the first half of 2026 compared with EUR 332 million a year ago. And equity has followed the same positive trend, increasing from EUR 564 million to EUR 622 million, the highest level ever reached in TR's history.

Eventually, as announced in previous quarters, we remain committed to our 30% payout policy. First dividend will be paid from our 2026 results and the payment date will be communicated after summer.

And now Juan, I pass you back the floor.

Thank you. Thank you, Eduardo. So let me do a brief wrap-up -- brief wrap up messages, messages I think we have tried to make here in this presentation. EUR 8 billion awards for 2026 is not a challenge. That's the message. There's another message is Middle East projects moving forward, and we've been executing well. Third, profitability, very much leveraged on service division and digitalization is extremely well focused. Those have been important messages.

And as we manage the business, this is a key message here that I'd like to transmit here as investors, as an analyst. The message is that we're extremely well positioned, very well positioned in 3 very important business segments, extraordinary business segments, well positioned in the Middle East investments that are taking place.

We're very well positioned in the Power investment cycle, Europe, Middle East and most important, North America, and we are very well positioned, extremely well positioned, better than expected when we started 2 years ago in North America as an overall. That message is important, and I wanted to make it very clear in my final remarks.

In terms of guidance, I guess this quarter results and maintaining the 2026 underlying and let me underline the underlying guidance shows that we're doing -- we're having a good performance. This good performance, obviously, needs to be adjusted as we did in the first quarter by the EUR 45 million provision 3 months ago. So that's the message. We maintain our guidance, and we -- I'd like to finalize with a message of optimism that there is more to come.

And I'll open the floor to any questions you may want to pose.

[Operator Instructions] Your first question comes from Mick Pickup with Barclays.

A nice sets of results. A couple of questions, if I may. Firstly, just on the Power side, you talked about doubling the headcount. What sort of numbers are we talking about on Power? And then I just want to get the scale of that.

And then secondly, obviously, big awards this year. You're talking of EUR 8 billion EPCm over the next 2 years, plus the Middle East going in the right direction plus Europe. If I think back to your medium-term guidance, your EPC target was only EUR 4.5 billion for 2028. We must be more in hand than that already, are we not?

Thank you, Mick, for the questions. Power, we currently have around 800 people working in the Power business, and we need to double it, so we need to move close to 1,500 people. I mean that's the size of the operation. And maybe you wonder where are we planning to recruit all that people because, obviously, here at home, we do not have resources enough. And the answer is simple. It's India. We are currently recruiting people specifically specialized in that business.

And regarding the second question, yes, the figure is absolutely solid. We have to revisit the guidance for 2028 and probably by the end of this year with full visibility of what is coming, probably we can tell you what's going to be the correct figure. But obviously, it's not going to be EUR 4.5 billion.

Yes. And then, on that, clearly, it is the lower margin bit of the mix that's getting bigger versus the Services element. So are you still confident in that medium-term margin of 8%?

We have to revisit that margin. I mean, what we told the market was 10% from EPCs and something like 30% from Services. So if the percentage of growth of EPCs is higher and the growth of the volume of Services, obviously, the average margin will be smaller, but we keep stick to the target of 10% coming from EPCs and something like 30% coming from Services. But, but, the overall figure, I mean, the net growth on absolute margin will finally be much bigger. That's obvious.

Your next question comes from Kevin Roger with Kepler Cheuvreux.

I have 3, if I may. The first one is on an interesting comment that you just made saying that if the situation normalized in the Middle East in Q3, the EUR 45 million provision will be enough. But just as a kind of sensibility analysis because some of your peers like Technip and Saipem gave some guidance assuming that the situation will last until the end of the year. If we place ourselves with this statement situation until the end of the year, what kind of, let's say, additional provision should we assume the EUR 45 million number that you took that assume in a sense Q2, Q3 divided by 2? Or any color on the, let's say, potential additional costs that will emerge from the Middle East? That would be the first question.

The second question is related to the maybe sequential improvement that you expect on the top line H2 versus H1 because we are still close to EUR 1.5 billion something revenue in Q2. So is there any pickup that we should expect in H2?

And the third one is related to working capital. Working capital has been quite negative in H1, triple-digit number. What kind of dynamic do you expect for H2?

Kevin, thanks for the questions. To talk about when the conflict in the Middle East is going to end, my answer is, 1 month ago, we all thought that the war was over. So it's very difficult for me to analyze or to -- I don't know how my peers can say that the war is going to last 6 months instead of 3 or instead of 9. Unfortunately, I think none of us know about that.

So we -- as I told you before, we have tried always to be very transparent and very accurate. We have made our numbers for the next 3 months. We have seen which are the extra cost to carry. We have seen how we can recover that for the client. We have analyzed the disputes with our suppliers, with our clients. We've analyzed everything to come in the forthcoming 3 months, and our estimation has been this EUR 45 million is correct and enough.

Frankly speaking, I don't -- I cannot give you -- if I give you any kind of guidance about what could be the impact of the remaining 3 months of the year, I have to guess it because the job we have done is exhaustive, is accurate. It's a thorough analysis. It's what happens in the next 3 months. So unfortunately, I cannot give you any additional information about what would be that impact if the war extends another 3 months.

Regarding the second half of the year, you have the guidance, we plan to be around EUR 6.5 billion of revenues. You know where we are. And this is what -- I mean, this is not, I mean, we -- this is something -- it's not a judgment. It's a fact. So we are confident that this EUR 3.5 billion for the second half is the right figure.

On the working capital, this -- the working capital, I don't want to look nice today. But today, working -- today, I mean, the 30th of June is -- July is not my main concern and I'll tell you why. We are expecting another at least additional EUR 2 billion of awards.

We still have to collect the down payments from all the projects that have been awarded in the second quarter of the year. So we are going to receive lots of cash from my clients. So my main concern is how to use this cash as wisely as I can, because I have always told you that the best thing I can do is to pass this money to my suppliers to force them to accelerate. At the very beginning of the life of the project, it's not that easy to pass that money. But we will try to do it if we can.

So the only thing I can tell you about cash is, by the end of the year, the final year is going to be by far better than the existing figure.

[Operator Instructions] Your next question comes from Alvaro Lenze with Alantra Equities.

Sorry to go back on the provision. I just want to have it clear to see what has changed for your previous assumption of EUR 45 million being that the war lasted until June and now that it lasts until Q3. Is it the fact that cost recovery with clients has gone better than you initially expected? If you can give some color there. Also, if you can give some color on the cash usage of this provision to date, it would be very helpful.

And then the second question is just how -- your feelings on how negotiations with clients are going in general in the Middle Eastern region. Is it more based on you see some clients struggling, or is it based on some countries which are suffering more and then clients are not fully trespassing the cost recovery because they're in that country? If you can shed some color there, it would be also very helpful.

Alvaro, thanks for the 2 questions, the provision. The provision is -- I don't know how to describe it, it's an alive animal. New cost are coming. We are trying to reduce some of these costs by removing people from the countries to the geographies. We are recovering money from the clients. It's a fact that this provision is just the net effect of all the extra cost less the money we are going to recover from the client. That is the philosophy behind the provision.

And you are right, you are right. There are more costs than those we estimated 3 months ago, but we are recovering more money than originally expected. And that's why we believe this is the right figure.

In terms of cash, it's a bit difficult for me to give you an answer because the idea is, it is not there is a cost of EUR 40 million -- EUR 45 million, and there will be a cash out of EUR 45 million because it is not the case we will collect money from the client, we will pay our suppliers. And what is clear to me is that -- well, give or take. Most of this extra cost and most of the extra collections will have to happen within this year.

That's my feeling, but that's common sense. I mean, we have to solve the problems with clients, with suppliers, and it has to be done now. It has to be done. So that's -- I'm sorry, I cannot give more color because it's -- and also, I have to be honest with you, I don't want to give more tips to my clients and suppliers because I am negotiating with them. So I cannot enter into a deeper analysis.

And the feeling of clients in the Middle East, when we are talking about -- we are facing -- we have not called it super cycle, but we are talking about huge volume of investments are coming in the Middle East. This means that our clients are trying to be supportive. That's -- I think that this is the global message.

Obviously, there are many different clients. The richest clients tend to help us as much as they can. Those that have small money, obviously, they are not that generous. It's a fact. But I mean, the overall feeling is those guys want to invest.

And here in Europe, everyone is talking about reconstruction, destruction. And when we travel to Saudi, to Emirates, yes, obviously, we have to reconstruct something. But the main message is, we want to invest and we want to do it as fast as possible. That's the message we see from them. So the immediate consequences, as I told you before, we have the feeling those clients are being supported now, I mean the big main clients.

Your next question comes from Robert Jackson with Banco Santander.

Just wondering if you can give us some more granularity regarding the breakdown of the project exposure you have in the Middle East and the level of execution of the 3 or 4 main projects you have in the Middle East, just to get a better understanding of where some of the risks may be in the second half of this year. I don't know if you may be able to give us those details. That was my only question.

I have to be careful. Again, I have to provide you a good answer, but I don't want to enter into many details if I can. One of the reasons why the provision is somehow limited to this EUR 45 million has to do with the fact that most of the projects we have in the Middle East are in very early stages, or in the very last stages of construction, or even in the final negotiation stages, so those projects where you are still in the engineering phase or you are procuring equipment and those projects that all the equipment has arrived to the site and your only pending activity is to construct are not significantly affected by the conflict.

The only -- there are only 2 projects in 2 different countries, which are in a phase where we still have to enter big equipment into the countries. And we have the Strait of Hormuz closed. It's a fact. So what we are working together with our clients is how to enter this equipment through different routes. I cannot give you more details, but only 2 big projects are being affected, but we are working together with the client how to solve the logistic difficulties to enter this equipment in the countries. This is the big, big problem we are facing there.

There are no further questions at this time. I will now turn the call over to management for closing remarks.

Okay. We are done. Thank you very much for all of you for listening to this second quarter presentation. Some of you can take some holidays, take it because it's about time. And we'll be talking to you, I guess, on the third quarter, which is second week of November, I do guess, right? So again, thank you very much. And if you have any further questions, you can call Antonio. Okay. Bye-bye. Thank you.

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

Good morning, everyone, and welcome to TR's First Quarter Results Presentation of the year. It's going to be conducted and led by our Chairman, Juan Llado; and our CEO, Eduardo San Miguel.. It's going to last about 20, 25 minutes, approximately and you will be able to post your questions after the final remarks. I now leave the floor to our Chairman, Juan Llado.

Thank you very much. Thank you, Antonio. Good morning, everyone, and thank you for joining us today. As you can see in this slide, we have the structure, our presentation in a bit complex in very understandable.

First, I will start giving you as always a glance of the key highlights of our performance in the first quarter. Afterwards, Eduardo will step in explaining the ongoing Middle East situation and how TR is managing it. He will first drive you through the very short-term commercial outlook and the very relevant expected awards.

Then he will explain the disruptions suffering from projects that are under execution in this area and how they will be managed. And to finalize this second section, I will explain -- sorry, I will come back to give you -- while we see the midterm opportunities that we consider this currency situation will bring to the sector and to TR. As always, Eduardo will go through the financial section of the quarter.

And finally, I will give you the final remarks before the Q&A. Eduardo. I don't know. It's my time. So let me -- I thought I had finish. Let me start with the key highlights, which is very important for the quarter. If you look at this slide, it's first quarter has demonstrated a TR solid business performance. Solid business performance reflected in the growth of revenue cash generation and the underlying EBIT. Sales reached EUR 1.6 billion, which implies a 21% growth versus 1 year ago. and the net cash figure has significantly improved up to EUR 360 million. altered, a solid $112 million cash generation compared with the first quarter of 2025. We -- this level of sales and cap responds to the underlying EBIT.

We had a strong underlying EBIT, which reflects TR's performance with a number of EUR 76 million, implying a 36% growth year-on-year. On the other hand, we have to be and we are being prudent and realist -- our execution performance has been delivered in the context of the disruption of some projects in the Middle East, eruptions and impact that we have estimated in EUR 45 million for which we have decided to make the provision in our accounts.

Again, we have to be prudent and realistic -- in this sense, after sale provision taking the first quarter EBIT stayed at EUR 31 million. Our strong performance is also reflected in the very relevant awards expected in the very short term and data, which just brings some color to these awards, which will confirm our full confidence that we have in the short and midterm outlook, confidence and fully aligned with our strategic plan. Eduardo you turn Okay.

Thank you, Juan, and good morning, everyone. Before proceeding to this middle conflict section, let me first express our solidarity and firm support to all our clients subcontractors and suppliers in the region. In the actual circumstances, they all are not only our business partners, but also our friends. This section will cover both the impact and the opportunities the conflict is generating in the Gulf countries. And moreover, how the reshaping of the energy landscape that is conflict is likely to trigger hence to create opportunities for TR across multiple geographies.

So we have 3 topics to speak about opportunities, price disruptions and global impacts and opportunities. Let's start with short-term opportunities. Middle East was, is and will be our main market. The commercial activity in the region remains solid and strong since there is not a glimpse of doubt from our clients to continue as planned with our upcoming development.

If we go to the figures, our commercial pipeline in the region is close to EUR 40 billion, out of which we are expecting in the very short-term awards in the range of EUR 4 million to EUR 8 billion. As you can understand, I cannot provide today for the disclosure than what you see in the slide. We are talking about 3 projects in some different countries. One is an oil field project, another one is an offshore development, and the third one is a power generation facility.

The 3 projects, and that's very, very important, we expect will be awarded most slightly before June 13. So we are talking in the forthcoming 45 days. You can say you're right, the range of EUR 4 billion to EUR 8 billion is a bit too wide, but let me translate that range into worlds. Anything below EUR 4 billion would be fully unexpected. And we have a very high chance of being awarded around EUR 6 billion. EUR 6 billion is a perfect scenario and cannot be disregarded. But also -- as you can imagine, the current conflict has tightened our relationships with our clients more than ever.

We do not only keep executing our ongoing projects, especially in coordination with them and also we are assisting and analyzing how to restart damage facilities. Our clients in the Middle East are strong and reliable and the message we have received from them is clear. We want you to complete existing projects as fast as is, and to launch together a massive volume of new investments.

Let's now move to the second topic, impact in the existing price. It is a fact that 2/3 of our current backlog is in the Middle East, and somehow, all the projects in the region are being affected, but it is a fact as well that only a limited number of projects, and I would say just 4, which are deep inside the construction phase are significantly impacted. The amount of these 4 projects in our backlog is around EUR 1.5 billion.

Main impacts obviously has to do with safety, logistics and site disruptions. First, safety. We have impact because our own workforce in the area is close to 4,000 people, and we have implemented all available measures to protect them.

Second, logistics. Impacts can because the closure of or move has blocked the arrival of equipment and bulk materials and has forced us to divert the transportation to alternative routes when possible. As of today, 1061 shipments have already been have already or about to be affected and some equipment, which impact in the critical path of the construction is not in the sites.

And third, disruptions on sites because the difficulties to mobilize large construction teams to make them work efficiently under this scenario and the delay of arrival of equipment and bulk have slowed down the rhythm of execution. Silego started, clients have been collaborative and supportive -- but above all above all, they have insisted in the need to accelerate the execution in the future to minimize a schedule impact.

All of the conflict is not over yet. We are analyzing together with clients how to accelerate. And I wish to remind you now this kind of acceleration plans and not so unuseful and they were widely implemented by TR last year in the region. But we have to produce have to be prudent, and we have analyzed the potential final impact of the conflict in the 4 projects effect.

Assuming hostilities will not resume and the Strait is open within this second quarter before June, before the end of June, we estimate the global impact will be in the range of EUR 40 million to EUR 50 million and we have booked a 1-shot provision of EUR 45 million in our first quarter accounts. Now how one will analyze how the Strait is giving us new opportunities all around the world. Okay. This currency situation in the Middle East is somehow or at is accelerating all the structural trends in the energy sector in our sector. or accelerating some of the investments planned in some of the regions.

And I'm going to focus on 3 areas of business and the and regions in the focus, in America, power and Europe. America, which you will see there are opportunities that they have to accelerate oil and gas, LNG, power and midstream. Everything has to be accelerated and they are doing so.

Power, as these [indiscernible]. Europe because of Europe more than ever is focused to reduce energy dependency, sustainability of fields, focus electrification and obviously focus on the organization.

Let's start with America. This is one of the more visible trend of pipeline. We're seeing new opportunities in multiple countries, including Canada, the United States, Panama, Venezuela, in Argentina. And all of this translates into a very significant pipeline of about 36 billion only in that region.

We focus in the United States I think it's important to note that we just landed only 2 years ago. And today, we're facing extremely important pipeline. In the United States, we have something to offer.

So talking about the United States, let me give you some more details for North America, which is, again, clearly becoming one of the most strategic and with growth opportunity regions for [indiscernible].

Let me start from the top, working on a fit awarded for a gas terminal and a transportation and transportation facilities cannot disclose the customer. We're not allowed, but I can tell you there is a Tier 1 operation in the U.S. It's a midstream operator. [indiscernible] relevant in their client that we had subsequently awarded for the phases in this huge development to TR.

Today, we're working on Phase and we do in addition to that for improving, looking -- working very hard on that Phase IV, which is a reflection of the quality of TR capacity on delivery. We do have something to offer.

The second one, the second job is the cost of link that we are ready on first to when we started with them, we were not even on first one, we were just -- we've been be tested. This is another very clear example. This is the LNG Canada job that we have to support them in transporting the gas from the Alberta to the Pacific. And it's, again, another very good example in how our service driven strategy is paying off. And how TR has acknowledged the client's philosophy to execute on a stage-by-stage base. were being successful, and we are ready to move from Phase I to Phase III as support to our customers. We do it well.

And finally, the cost of land LNG phase development, which was awarded to the joint venture of KBR and TR, which places TR a front runner again on the LNG investments. In conclusion, these 3 projects is trader clear that we have a quality to offer our clients, and we are reaffirming their confidence in TR has progressively awarded all the specific phases for the reinvestment plan.

If a successful story, and you have to remember that we only landed 3 years ago, this opportunity of good. If we can quantify, we have to put into numbers, what is the final investment of our stake in these jobs. It doesn't mean that it's going to be EPC, it could be a cost plus, it will be BCM, equity of some issue parts, the value to be awarded to TR across offices. The project rates up EUR 7.7 million. So this is for the Americas, and this is for the U.S.

And now let's move into power. Artificial intelligence is emerging and everybody knows is a dominant driver of future demand and electrification trends. we're there. We've announced the spin-off, and that is spin-offs, some people got infused and spin off means focus.

Focus and resources to capture this market, this market that is growing, which this, i.e. dominant driver translate into new power generation capacity, which needs a reliable power supply. It will come out of many sources that one of them has to be reliable, and that will be combined cycles. This trend is truly visible on our EUR 27 billion pipeline in only the segment.

Today, we're better than ever positioned in this sector -- we take closer look of this EUR 27 billion figure, which I think is important to break it down because it's a big number. We see a very diversified pipeline. In North America, early stands out artificial intelligence, they want to take the lead, and they are going to take the lease accounts for more than EUR 15 billion of upcoming investments.

For instance, in Canada, we expect to be awarded in the third quarter of the year, a combined cycle projected with a carbon capture feature for a part or state for EUR 100 million. The record, we have Europe that we have identified around EUR 4 billion of new opportunities. Those are mainly linked to electrification and energy transition projects, we will move it forward very fast. Just as an example, all the combined factors for RWE in Germany, which are expected to materialize as EPC progressively from the second half opportunity volumes. This is the market, and this is the region for that we were not there before. Again, it's a great message.

And in the Middle East, also remains a very important contributor to this power business with around EUR 70 million of opportunity. As Eduardo has explained before, we're tracking a large [indiscernible] cycle in the united emirates of around EUR 1.5 billion with financial investment decision is expected to take place very soon.

And finally, this consider opportunities in Europe. As we are seeing is there is a clear push for both government and industrial base to reduce dependency on external energy sources and to move towards a more secure and sustainable energy system. In this context, a certification has been a key role. It allows countries to shoot energy consumptions with more controllable and domestically source solution was supporting decarbonization business year.

Europe is creating a significant number of opportunities for the industry and very particularly in projects linked to power generation and energy infrastructure. We've talked about that before in the power section. At the same time, we all see very concrete development in very specific industrial sectors.

Besides the projects that we already talked of RWE in the former business we're working, and we have been working for a while, but now we've really launched the job for ArcelorMittal on the decoration in the steel sector, a 1 very specific.

In the next slide, I will further explain this very important milestone and the isoprene, which I think we have announced yesterday or the day before. And it's how it's important to say that we are working and we back the investment stations very soon in Spain, from sustainable well, fields, SAF and e-methanol.

All of them have increased the probability and today's turbulence in the Middle East is increasing the probability to reach final and full financial investment decision on. I think it's important to spend just a little time because it's been rumors.

We talked about people being know very well where we were. We've always said we were very well positioned, and we wanted to position ourselves in Europe and in the world using our technology or engineering capacity to transform and to support our customers is still in the street to carbonate. And we have been working with them and very specifically, in this case, with ArcelorMittal’ in this business that we've announced 2 days to that we have been awarded the EPC for the recommendation of the steel facility, a very fortunate steel facility in [indiscernible].

This project includes a new 2 million tonne let a furnace with all the facilities, which enables production to be reduced 3x with the CO2, 3x lower compared with the traditional process. This is a very human important award for TR. We're very keen to start. We've been working with the customer, and we're proud to have been working with the customer for the last close to 2 years finding ways how to improve and then develop this very important investment.

And it confirms our company's role as a key player in this industry, and it's fully aligned with the strategic plan that we have announced to the market in several occasions that we have to promote a service contract and our decompensation activity.

And this is at the bottom line is fair to conclude that the current complete is going to reshape, is already reshaping the energy investment strategy in many regions. Therefore, high investments are for sure going to take place in all major players on the oil and gas and power sector. And we have to say anything today, TR is best positioned to capture this and now Juan for a financial figures.

We have said before, we have booked a EUR 45 million provision to cover what we expect will be the total impact of the Middle East conflict assuming the armored opens this quarter. And this provision reduces the EBIT of the quarter to EUR 31 million. But I don't want, I want to miss the focus on our performance.

Our revenues underlying EBIT without debt provision. Cash and equity have improved again Quarter-after-quarter, -- throughout the last 4 years, we are beating the figures we delivered the year before. As you can see, revenues are 21% higher than a year ago. and the underlying EBIT improved 32%. Our is absolutely relevant to me is our sales and our underlying EBIT are absolutely aligned with the guidance we provided to the market. That's why this quarter, our EBIT margin is already at 4.3%. I very, very close to the 5% we forecasted for the whole year 2026.

And the cash and equity figures reflect the good health of the company. We have our highest ever equity, amounting to EUR 191 million. And the net cash is solidly above the EUR 300 million where we have fixed a threshold below which we don't want to be. So it's a fact we are facing an extraordinary event, the conflict in the Middle East. We have tried to encapsulate and evaluate all the consequences of this conflict in a provision that has already been booked in full in our accounts, and we are still delivering a EUR 15 million net profit in the quarter. while improving our cash and equity I don't want to look nice.

I also want to stay humble, but -- and I cannot be happy with the figures we deliver, but the performance of the company has been solid and will go on being solid this year and the forthcoming years [indiscernible].

In every month is 1 taken for you to look into this slide because this is not a message of justification, desperation of provisions by. It's a message of growth, is message of growth because we have performance on revenue, cash and underlying EBIT. The message of growth because we have been able to best manage Middle East disruption. Managing mini reduction has given us an opportunity.

It has opportunity has been of working together with our best customers with the customers with whom we want to be in the short, medium and long-term future, we have strengthened our customers' relationship with our partners and our friends. And this allows a position of sells extremely well to capture the very short-term and midterm opportunities.

If you look at our metrics today, we're stronger than ever. And with that message, thank you very much for listening to us. And now we're ready to take any question you want to post.

[Operator Instructions]. First question comes from Mick Pickup from Barclays.

Nice to see business going well. A couple of questions, if I may. First, on the outlook for new awards. So if I'm correct, you're saying EUR 4 billion to EUR 8 billion in the Middle East and then possibly another couple of billion elsewhere later on in the year. So is that correct? And the follow-up on that is, how do you price Middle East contracts today 4 million to 8 billion is a big, big number, and there's clearly some uncertainties around.

I prefer to start with the second one because the first one is simple to answer. I cannot disclose today, which is my strategy with my clients pricing proto we have to be careful with the answer to this question. But I want to tell you something, and that's sort relevant. The impact of the conflict are today. When you launch a project, you take at least 1 year to develop the engineering of the project and then you start procuring equipment. So very few things happen in the sites of construction until at least 15 to 18 months have passed.

So do not be afraid if we are properly pricing the potential impacts of the war in the new projects because being very honest, those impacts are going to be extremely limited. But as you can imagine, we have good margins, aligned with the margins we were expecting a few months ago before the conflict started, and we have called cushions, contingencies, we are doing the things in the right way as we were doing months ago.

So we're still quite comfortable with the pricing of the projects, and we believe this expected margins we are announcing for the future are well secured even in the actual scenario.

And regarding the first question, EUR 4 million to EUR 8 billion, yes, that's my estimation. For is very clear, EUR 6 is quite solid and EUR 8 is necessary scenario. And also we have opportunities outside the Middle East. So if everything goes right and everything is perfect, we could be beating our expectations, our guidance at the very beginning of the year or we weren't finishing the lease year before, but we -- let's wait.

I don't want to be aggressive today telling you that we are going to have an extraordinary year in terms of our works, although we believe that the market opportunities are increasing and we have a good chance of having an extraordinary good year in terms of awards.

Can I just follow up on the second question then on your guidance, you've obviously taken a EUR 45 million provision. You're telling me that 4 of the Middle East projects have logistic challenges which are say, more critical to them. How come revenue guidance is still at EUR 6.5 billion if 4 projects are likely to face some form of delay. -- how do you keep up with those milestones and percentage of completion.

Right. First, we follow the projects on a daily basis. I mean, we are very close to the clients, analyzing how to recover how to accelerate the projects. So -- by the year-end, we expect to be able to recover the reel of execution to accelerate and to be not that far from the original expectation of EUR 6.5 billion. That's -- that's my first answer. Probably the second answer is I had some room when I gave you my guidance at the very beginning of the year and potentially, revenues could be above this EUR 6.5 million. Now, I don't really believe that's very tight. We will be doing 6.5%, but I have not any caution.

Next question comes from Ignacio Doménech from JB Capital.

I have the first 1 is related with the EUR 35 million provision you have booked in the quarter. If you could give us the assumptions behind this provision? I believe you've mentioned that you expect -- or do you assume this provision that the trade would open this quarter, but just wanted to -- if you could provide some more detail on the projects that have been affected.

And more importantly, what makes an incidence you have in place in order to -- in the future, okay, to negotiate with the clients to offset potentially the this impact. That's my first question.

Thanks for the question. Sorry, again, you are posting very complicated questions to me, not because I have not the answer, but because you are asking me to show you my strategy to my clients. If I tell you today, I have booked assuming that I'm going to recover 60% of the amount, I'm telling my clients that I am willing to accept that reduction of my rights in 40%. So I cannot enter into some level of of details.

As I tell you, the main assumptions basically are yes, of course, open in June, no resume of hostilities. But what is clear for us is what we have defined, which is the final structure cost of this conflict. I'm not talking about incur cost. I'm also talking about what we expect to happen in June and onwards because a few impacts still will come due to the closure of the trade this period.

And we note or take how our clients will react first because we're talking to them as a cost on a daily basis, but also because we have a track record negotiating with the recovery plus acceleration plan that we know how they behave -- so the next value of all those impacts less money we really believe we are going to recover from the client is around this EUR 40 million to EUR 50 million, this EUR 45 million.

Unfortunately, I cannot tell you anything else.

I think you were asking about the contracts. I think we have a good protection in the contract for sure, we are protected in terms of extension of time for sure. And we also believe that there are room for obtaining significant of money to be recovered from the extra cost in Kilo.

Okay. Very clear. And my second question is related or we've seen consultants have done some estimates on the rebuild CapEx in the Middle East. I was wondering if you expect higher work or rebuild CapEx from some of the infrastructure that has been damaged. And I think this -- so both well with my third question, which is related with the high level of awards that you are expecting, okay? in the event that you have a strong pickup or acceleration of activity in 2027. I was wondering if you have enough capacity, okay, to accelerate materially that level of activity. Thank you.

This is Juan. I'm going to answer this question. We don't like to talk, and I think we should not talk about damaged facilities, expected CapEx and expected opportunity. I think -- I mean, it's not a question the [indiscernible] because, in fact, it's not a real question. I mean, there's no such a big damage and the opportunity is not to rebuild what has been damaged.

The opportunity is the relationship that we have created these weeks with our customer in working at a fantastic pace an extremely disruptive situation. Our opportunity are the awards and the continuity on the awards on the investments there are customers in the region are being -- are even accelerated. That's a real opportunity. It's not to rebuild of big damages. That's obviously something that we are asked to do in addition to that will support them, but we don't see them as an opportunity.

Our opportunities, the relationship that we have built and the investments that in that region with our customers are taking place. And if you if you're asking us about capacity, -- the answer is very simple. Yes, we do have the capacity. We're probably one of the companies in the region, Best Place and with more capacity and more experience to take and to undertake the investments the new investments that we are already bidding and that we already negotiated.

Your next question comes from Juan Canovas from Alantra.

The first one is regards to your power business. You've highlighted significant opportunities in terms of pipeline. But normally, those projects require substantial capital. So I was wondering what your plans are with your TR power unit, whether you are planning to open it to external capital be in the form of an IPO or maybe taking in a partner.

The second question regards to working capital dynamics. I wonder whether you could explain to us how working capital has held up so well even in the circumstances in the Middle East where you seem to have suffered very little. And notwithstanding you have got very few new orders. So I don't know whether you can shed some light into that.

Let me start with the second question because I think I need to say that I have to express the gratitude of the Técnicas Reunidas to all the clients in the Middle East. You cannot imagine how they are paying, how they are attending their obligations. It's compete. So how it's going to evolve the working capital if everything goes as of today, I can tell you, no role in salt. Everything would be very smooth this year. And you will see, I'm not only talking about working capital.

I want to talk about pure net cash figure, you will see a clear improvement for the few throughout the year because the new projects that are coming will bring relevant on payments and good payment condition. So that's reporting the working capital. Regarding the power business, we as nothing at all. I mean, it's we just construct the plant investment. It is done by someone else.

And when we talk about specific projects, all of them are projects that already have the money available to. The investment has already been decided and many available. So no reason to be concerned. This year, we expect follows in Middle East, good news in America. Hopefully somewhere else, but for the time in, let's focus on those 2 projects. And if any problem may arise, has nothing to do with availability of capital. But I don't expect any problem.

Sorry, I was not asking in a way that will be problematic. I was referring to the bonding requirements, which normally require a level of equity that you might not have in that subsidiary?

That's a complicated question. Yes, for it. yes. No, you're right. It will take a couple of years to fully decouple TR power from , I mean, in the meantime, that we will be supporting them and we will provide them bonds if needed. I'm not sure that we'll need it. But if they need it, we will be there. Right now the question is tension I understand it.

Your next question comes from Filipe Leite from Caixa Bank.

I have 2 quick questions. first 1 regarding side and if you have any novelty or when should we expect the final decision? And last 1 on Power business, if you can give us the contribution of this unit to the quarterly results, namely top line and EBIT much?

To answer the question. Besides no news, early news we have is probably we will have a final review from the bit maybe July. That's the best scenario. And we are not yet disclosing the figures of the power business. from next quarter, you will have this figure available Okay.

There are no further questions. Please continue.

Okay. Thank you very much for attending this session. And I do believe that we'll talk to each other and on the next quarter presentation, which I think will be the end of July. I'm not sure exactly which date to the end of July, we'll have the first half of the year full results presentation. So thank you very much again, and looking forward to talking to you in a few months. Thanks a lot.

Good morning, everybody, and welcome to TR's 9 Months 2025 Results Presentation. It is going to be conducted as usual by our Executive Chairman, Juan Lladó; and our CEO, Eduardo San Miguel. It's going to last approximately 20, 25 minutes. And afterwards, you will be able to post your questions after our Chairman's final remarks.

And now I leave the floor to our Chairman, Juan Lladó.

Hello, everyone, and thank you, Antonio, and good morning, and thank you for joining us today on our 9 months results presentation for this 2025. As always, Eduardo San Miguel and I will guide you through the most relevant issue that have taken place this first 9 months of the year. First, Eduardo will summarize the main highlights from our very recent Investor Day. And second, I will dive a little bit into our current commercial pipeline. And I will be followed by Eduardo, who will guide you through our financial results. And as always, again, I will wrap up the presentation with some financial remarks and our financial guidance.

And now Eduardo, you have the floor.

Thank you, Juan. Good morning, everyone. I know well most of you are aware of the contents we covered in our October Investors Day. But for all those that could not attend the meetings, let me devote now a couple of slides to summarize the key messages.

Let's start with Services and Power. Regarding our new business line of engineering services, we are already halfway towards our 2028 target of EUR 500 million of revenues. In fact, we expect this year to have around EUR 230 million in revenues and over EUR 300 million of awards. We are prioritizing our engineering service business line because of 2 reasons. First, because it delivers higher margins and has a lower execution risk. The 30% margin we announced in Abu Dhabi when we launched our SALTA strategy is aligned with our actual results. And second, because through value-added engineering services, we are repositioning Técnicas Reunidas in the market. Clients perceive us as long-term partners that contribute to design together with them their future investments.

In the Power business unit, we have significantly raised our ambition. Between 2020 and 2024, annual revenues averaged around EUR 300 million. Now looking ahead for the next 4 years, we are targeting over EUR 1 billion per year. This shift is driven by a combination of secure contracts, backlog and a strong commercial pipeline. There is a huge demand for electrification. Both artificial intelligence and governments seeking for a cleaner energy are pushing this demand. Our expertise, our track record, the geographical footprint and the close relationships we have with the EOMs are solid reasons to believe our EUR 1 billion target of revenues per year shouldn't be a major challenge.

If we move to North America, my message is we are making solid progresses in the region. A key milestone achieved has been the signature of a strategic alliance with Zachry. This partnership with a company that highly complements our capabilities will unlock opportunities in the LNG and power segments in the United States. But also, we have signed engineering framework agreements with most of the major U.S. oil and gas players. Through those frame agreements, plus the project co-development we are already involved in and the FEED conversions, we expect our first big projects to come in the U.S. late 2026 or early 2027.

When it comes to decarbonization, Técnicas Reunidas is more than ready for the future. Very few projects have been launched this year. But if there is one that deserves a very special attention is the Yanbu Green Hydrogen cluster that will FEED the green corridor of hydrogen between Saudi Arabia and Europe. This project will require the construction of the largest ammonia plant in the world. And the FEED and potential rollover to EPC has been awarded by ACWA to Técnicas Reunidas together with our partner, Sinopec.

And finally, through artificial intelligence, digitalization and robotics, we are unlocking a new source of revenues and also improving our competitiveness. Our goal is 1% of cost savings by 2028. I'm confident that this goal will be achieved, thanks to over 150 professionals with extensive engineering, procurement and construction experience that today integrates the digital team.

And now Juan will analyze our current pipeline.

Okay. Let's move into the next slide, the pipeline. This slide has a lot of information, numbers, maps, bars. So let's just see if we can make good sense out of it. The first and important message is that we have a very strong pipeline, EUR 36 billion -- I mean, EUR 86 billion, sorry. And EUR 86 billion is split into EUR 84 billion, which is EPC or EPC related, and that can be clarified, and EUR 2 billion on pure services, okay? That's one tranche of the pipeline. And we have to remember that pipeline are where we're bidding, where we're going to bid, where we have been selected or invited to bid, or even a rollover from FEEDs that will become EPCs or similar to EPCs in the near future. Those are jobs on which we're participating and we're close to the -- with the customer, which is important.

And let me start with North America because North America, I do believe is a star. And why you do I believe it's a star because we would not have been in this slide 2 years ago. So the fact that we have 33% of the pipeline in North America, I think, very much reflects TR's strategy, transformation and repositioning, which is very important and reflects focus and a clear mind and a clear strategy. But we need some clarification as well because when we're talking about 33% of EUR 86 billion, don't think that it's pure EPC lump sum. That's not the way we do work, and that's not the way that the North American market works. It's going to be a mix of engineering services or engineering and procurement lump sum with construction management services.

So it's going to be a mix that, in any case, would not be a pure lump sum EPC as we have understood or you may understand that we do in other parts of the world, more so in the Middle East. That is very important. That's why I wanted to start by North America. We have opportunities, as Eduardo has said, in all the fields, opportunities in LNG, opportunities in power and opportunities in important jobs related with decarbonization.

And now let's move into the Middle East. Middle East is -- this is where we're strong. This is where we have a strong presence. And this is -- and it's a place that we like to be. We like to be because our quality and our presence allow us to be selective and allow us to be selective and focus on the jobs and on the customers with whom we want to work for. And what you have seen on the awards over the last year, we have been successful, very successful with very important customers on the upstream offshore business that we wanted to be. We have been extremely successful, as Eduardo has just reflected, on transition energy, green ammonia plants. And we have recently been very successful, which very much reflects our successful strategy on services.

So in the Middle East, the pipeline is strong, is resilient and is growing. So it gives us a level of comfort for the near future. And Europe has been always less important to us. Today, it continues to be important. It's very much important on power. We'll talk about that later on. And obviously, on energy transitions where we have a very important presence. So this slide, I think there is a lot of information, but it is very important. It is where we are today and what is going to be our near future on 2026 and 2027.

And let's move to the next slide. It is in the pipeline, but not in the backlog, some of the jobs that have been awarded to us, which are related to services, services that have been contracted on pre-FEEDS and FEEDs, but they have a natural -- and that's what we have agreed with the customers. They have a natural rollover as the project progresses into detailed engineering, procurement services and construction supervision. And that is going to happen. That's very important in North America, but also in other parts of the world and in the Middle East.

Our repositioning into services translates and again, it's not in the backlog, that is in the pipeline into natural growth into more than $400 million on services, on jobs that we have -- we are already working. And we'll have to slowly roll over into detailed engineering into real projects.

And in power, same story. And in power and very specifically, the best example would be power, although there are other products. It is Power Europe and more specifically, Germany and RWE. We have signed and the last one has been recently announced, 3 contracts with RWE, the main generation -- power generation company in Germany. The contracts are signed and the contract -- that means they have been signed by ourselves and by our partner. The first 2 is Ansaldo and the last one, we'll talk about that later on, is GE. That means that we have a contract signed, early activities have to start. Early engineering has to start as well. Engineering has to do for the balance of plant and the coordination, and pre-engineering has to be done with our partner, Ansaldo, in some of the cases, and GE in the last one.

And eventually, when the full contract comes into force, it will become -- we'll have the backlog. Now its pipeline larger than EUR 1.4 billion. So that's better clarified on this slide because we have just announced it last week with the last award. And this last award that I just talked about a little before, it is with GE. We have been selected again by RWE for a hydrogen-ready combined cycle. What does it mean? It means that it will be a combined cycle that initially you could operate on a 50-50 mix of natural gas and hydrogen, and then moving forward, if needed, to 100% hydrogen. The contract has been awarded. Again, we have already started to work with them and with the GE on early activities and early engineering. It's not included in the backlog, and it will be included in the backlog when the contract comes fully into force. So this, again, shows both the good strategy, a successful strategy on the Service and Power that Eduardo has introduced to you a few slides ago.

And now, allow me to pass the floor to Eduardo with the financial results.

Okay. We closed the third quarter with EUR 1.8 billion of sales, 29% higher than the second quarter. This massive increase as announced in our Investor Day is due to the acceleration plans we are currently implementing all across our portfolio in the Middle East, plus the growth of our revenues linked to the Power division.

EBIT of the period closed at EUR 84 million with an EBIT margin of 4.5%. It is the 12th quarter in a row that EBIT margin keeps growing. Moreover, this third quarter EBIT, EUR 84 million is 78% higher than the EBIT we had a year ago. I'm proud to repeat it, 78% higher than the EBIT we had 1 year ago. We are not blind. We're not blind. Existing market is giving us good opportunities to improve our margins. But I would like to emphasize also this strong performance is the result of 2 key factors: first, an outstanding project execution across our backlog; and second, the implementation of solid risk mitigation policies.

Overall, these results reinforce our confidence in the trajectory we've set for Técnicas Reunidas. We are not growing for the sake of growing. We are growing with clear targets and efficiently. And let me repeat today my Investor Day message, the best is yet to come.

And eventually, these are our balance sheet figures. Our net cash remains at EUR 427 million, a level that has proven to be more than enough to allow us growing and manage efficiently our business. You are well aware, our policy is to channel as much liquidity as possible to our suppliers and subcontractors. And regarding equity levels, we ended September in a robust position of EUR 698 million. So both equity and cash figures allow us to repay in advance the full SEPI PPL and the ordinary loan next December 1 as announced a month ago.

And now let me give the floor back to Juan.

Okay. My final remarks. Okay. I do believe it has been a short presentation, but a very important presentation. I think our pipeline and obviously, our year-to-date results, it fully reflects the success of our TR strategy, the strategy of transformation and the strategy of repositioning. As Eduardo has said, we're growing, but it's a quality growth. We're not growing for the sake of growing. We're growing with a focus and would target growth, and very important, a quality growth. A quality growth that allows me, allows TR, allows TR's team to present to you a guidance for 2025 with revenues above EUR 6.25 billion. keeping a 4.5% margin, which will result on an EBIT number in the neighborhood of EUR 280 million. And for 2026, which is next year, again, our revenues will be north of EUR 6,500 million with a margin above 5%.

And with these numbers, with this presentation, we open the floor now to any questions you may want to post. And thank you very much for listening.

[Operator Instructions] And your first question comes from the line of Kevin Roger from Kepler Cheuvreux.

I have two, if I may. The first one is related maybe to the phasing of the backlog. You increased implicitly once again the top line guidance, while a month ago, it was already massive, thinking about the midpoint, plus 17%. So can you just give us a bit of more detail on why the top line is once again accelerating for the full year, now seen as EUR 6.25 billion versus EUR 6.1 billion a month ago, just to understand the dynamic here?

And the second one is more broadly -- and tell me if I'm wrong, but I have the feeling that in the press release and in the comment that you made today, you are even more optimistic than a month ago with quite some strong quotes in the press release, in the presentation that you provided today. So just also, first, am I wrong saying that you are even more optimistic today than a month ago? And if it's true, what has, in a way, maybe changed? Is it the official award for RWE that is coming? Just to understand also the tones that you have today in my view.

It's Eduardo. Thank you for the questions. Very good questions, both of them. The first one, I don't know if you're asking about the numbers. We had a backlog, it was EUR 3.5 billion. I think we have delivered EUR 1.8 billion. And we have added to that backlog volume. I don't know exactly the number. I think it was around EUR 0.6 billion that has to do with those acceleration plans, extension of times we were talking in the Capital Markets Day or Investor Day here in Madrid. But I think my -- your question is good. Why you are delivering more revenues than expected 1 month later? My answer for you is I have to tell you about my last two travels, one to Abu Dhabi and the other one to Saudi. I went to Saudi 3 weeks ago and to Abu Dhabi 4 weeks ago. And the message in both cases with the clients have been, there are another 2 projects we want to accelerate. And those projects that are already accelerating have to move faster.

So we will see. It's a bit difficult for me to predict now the immediate figures because the pressure we are suffering from our clients to accelerate and to finish the project is huge. It's huge. So it wouldn't be crazy to see again the fourth quarter being very similar to the third quarter in terms of revenues. And also, you have to bear in mind that the U.S. dollar is stronger than it was 3 months ago. So it will have an impact both in the revenues and in the cost side, but it will finally increase the volume of revenues as well.

So this business is alive. Every week, things are changing. And I have to be very honest to you, I feel huge pressure from my clients to accelerate more than feasible in any case. I mean we are doing the best to achieve very strong targets, very hard targets. So we will see how the figures -- the revenue figure will evolve in the forthcoming 3, 6 months.

And regarding the optimism, maybe, Juan, do you want to...

I think it's true. I've tried on the couple of slides that I presented to transmit optimism and probably more than I have done before. And probably more than I have done before because it's true that we're traveling a lot. As we do, our presence in North America starts to consolidate the conversations, the frame agreements, the invitations to bid, the success of the pre-FEEDs we are ready of finishing and moving into FEEDs. The FEEDs that we are finishing with our customers, they're moving into real projects. They will be moving into real projects, which means detailed engineering, procurement and construction one by one. I'm talking about North America.

Power business, our invitations to bid, the size of the market, the strong relationship that we have with our customers, the market that we have to face in front of us, our position in a very important area that sometimes was criticized because some people would say that we had too much risk. Once we are well positioned, I'm talking about the Middle East, our capacity to grow in the Middle East with whom we want to grow, to move and to grow in services and to grow in transition is very important just that we have gotten in transition and power in the Middle East. And again, with whom we want to grow and allow us -- everything is paying off and allow us to be optimistic. We see end of 2025 this year, but we see 2025, 2026 and 2027 with far more optimism than we had. I'm not going to say 2 years ago, definitely 2 years ago, I'm saying that even 3 months ago.

And your next question comes from the line of Juan Cánovas from Alantra.

I have two questions. The first one is how do you manage to carry out those project acceleration? How does it affect your costs, if you could give us some detail about that? And then just to make sure, is this contract in Germany with RWE and perhaps also some of the services pipeline expected to be signed into contract and add to the backlog during the fourth quarter of this year?

Regarding the acceleration of the project, Basically, we can really accelerate this in the procurement phase and in the construction phase. In the procurement phase, we have been doing a lot of work in the last 6 months to be ready for the moment that the client finally decides to go ahead with the acceleration plan and compensate it. So that's the reason why you see such a quick acceleration in such a short timing because we have done a lot of job previously that now it is paying off.

If we -- I'll give you an example. If I have fully designed a specific equipment and I put it in the market in 1 day, the job has already been done, but the effect that has this design in the progress of execution of a project is very relevant. very relevant. So we have a lot of job that you couldn't see before, but now it is being reflected in our accounts. So the acceleration cost has to do -- sorry, the acceleration of price has to do with accelerated procurement. So you also have to pay your suppliers to construct the equipment faster. And obviously, they need more resources. They need to procure the raw materials faster. So you need to advance them a lot of money also, but it is the way it works.

And when we talk about construction, basically, the idea is what is being done by 1,000 people is double what can be done by 500 people. So what you need is more people, more people. So the idea is we are talking with all our contractors. We are telling them to increase as much as they can the human resourceables -- sorry, the human resources available at the sites. And when they don't have the capacity, we are talking to other contractors that will adapt the needed capacity. So we are splitting the scopes of the original contractors into different new contractors. So it's the way it works. I mean, we have also to multiply the size of people from Técnicas Reunidas supervising the construction. Everything has a significant cost, and that's what the clients are paying. I mean that direct cost for Técnicas Reunidas and for our contractors and suppliers.

Regarding Germany and other service projects, are they going to be signed in 4Q 2025? No. No. Finally, no. It will be in the second or third quarter of 2026.

And your next question comes from the line of Robert Jackson from Santander.

A question related to the North American market. Are you seeing any signs of changes in sentiment regarding investments related to the energy transition projects compared with the last 6 months? I mean you've been talking about acceleration, especially in the Middle East, of your more traditional projects. But is there any significant improvement or are things the same as they've been this year in North America because there's still concerns about the impact of the tariffs on certain investments? I don't know is there -- can you just give us more visibility on the North American market?

Robert, this is Joaquin. Let me say, in the low-carbon business, what we -- you know that we have always said that the opportunities that we are following have very good fundamentals and have -- are being supported by the strong partners, okay? So the first message would be that the opportunities that we are following are still being ahead, okay? And I would say, even reinforced because in the last weeks, we have seen, I would say, strengthening of the message of the partners that we work with, okay? That will be the main ideas. It is also true that some of the recent developments in the regulations are going to be clarified in the coming weeks, okay? And this is going to give, from our point of view, additional support to the projects that we are following.

What about the timing of your services activity and your potential opportunities in North America? We expect -- could we expect in first half of next year or more towards the second half of the next year in terms of your pipeline in the U.S.?

I would say that we will see good developments of our projects by the second half of the year for sure.

And regarding the tariff...

Let me, again, speak on this. I mean, obviously, this is -- I mean, the tariff business here is one day is one thing and next day is another. So I mean, I cannot do a very intelligent analysis of what's going to happen with the tariffs. But I can give you some feedback of what our customers have said to us. Eduardo and I, we were in the U.S. last -- Houston last week, and we were working on some projects, and we were studying with the customers some projects. Those projects have to be modelized. And they were saying that despite tariffs, which they are uncertain, the jobs are going to go through and models, they're going to be done, very large part of them, outside the U.S. And even with tariffs -- even if they happen with tariffs, it will be more competitive. So the message is with or without tariffs, the jobs will go ahead. That was the feedback that we got with the 3 customers that we sat last week in Houston.

And your next question comes from the line of Mick Pickup from Barclays.

A couple of questions, if I may. Just on the acceleration of the projects, how do you get paid for that? Is that bonuses if you get these done on new accelerated time frames? You just talk us through that. And secondly, you're talking about growth in the Middle East. Obviously, I've just come back from ADIPEC, and it's the first time in 5 years, I've not seen an E&C contract signed. I can see one bidding in Abu Dhabi and not much in Saudi Arabia. So can you just talk about the growth in the Middle East over the next 12 months, what we should be looking at there, please?

How do they pay us as they used to? I mean, they have put a lot of pressure on us trying to accelerate. We have agreed the compensation, but they are not that generous in terms of schedule of payments. But it is a fact that in every case, we are receiving a kind of down payment. I mean they are advancing some money because the only way to accelerate is to put the money on the table to our suppliers and contractors. But being honest to you, I mean, this is not going to be much sooner. Antonio is suggesting me to tell you that it's going to be a pari-passu. I do not agree with him. I'm afraid we are going to advance some money to our suppliers, and then we will collect the money from our clients. But that's common. I mean the whole business is working in that way. There's nothing extraordinary in those acceleration plans.

Regarding Middle East...

Can I just add? So when the project is late, your client holds your feet to the fire and it costs you money. When you accelerate a project for a client, they don't end up paying you bonuses if you do it early.

Sorry, I couldn't understand the question. Now I understand it. In some cases, what we have negotiated with the clients is that there would be an extraordinary compensation in case we achieve certain milestones in certain moments. But give or take, the overall agreement has more to do with, okay, we need to complete that in this period of time, and this will be the global compensation that has to be add up to the original value of the contract. So there are no significant differences in the way they treat the payments, okay?

And the second question, Juan, maybe you want to...

Yes, Mick, let me talk about the second question. I mean, in the very short term, we have in some countries. In the Middle East, we have presented bids, and we have good expectations. In some other countries, we're getting ready and sitting with the customers to prepare bids within the next 3, 4 months related to the upstream and even offshore business and where we have positioned ourselves quite strongly in some of those countries. In some other countries, again, the power bidding continues and positioning continues. I don't want to say country, but some other countries, what we call the growth in gas treatment out of nonconventional sources, again, is growing and is continually growing and they have big investment plans, and they have to continue growing to provide gas for the development of the country. So I mean, there is not a lot of noise of immediate bidding, but there is a lot of noise of big investments coming up in the very short term on both -- on power upstream and gas. I mean, offshore, I mean, upstream oil and gas. And let me tell you, we're better positioned than we have ever been.

[Operator Instructions] And your next question comes from the line of Filipe Leite from CaixaBank.

I have just two questions, if I may. The first one on working capital. And if you can give us more visibility regarding the working capital consumption of this third quarter? And how do you see working capital evolving in the next quarter? And last one also on cash flow, in this case, prepayments, and if you can give us the amount of prepayment booked by TR on 9 months?.

Filipe, sorry, there are problems with the line, and we cannot hear you clearly. But we have listened working capital and prepayment. So I can imagine the question.

If something happens, Técnicas Reunidas is a huge discipline that has to do -- with everything that has to do with cash, that's what's the definition. As you can imagine, being the CFO of this company for 20 years, the way I try to manage the company is with the highest discipline. Saying so, I know perfectly every euro is relevant for a company. But when you analyze the big picture that the company has grown its revenues compared to a year before around -- well, I told you 80% -- 78%, the total volume of revenues.

When you see that our balance sheet, the balance sheet has grown. I mean, the account receivables and accounts payable around 30% compared to the figures we had by the end of year 2024. And it amounts around EUR 3.5 billion, I mean, of account receivables and of accounts payable. When you see how it works in business that milestones from time to time for a specific project are very separate one from the other. So it takes a long time to be invoicing your clients and then collect the money once you have already delivered -- sorry, not delivered. You have already been incurring the cost and from time to time, you have been forced to pay the contractor. I mean, it's a very difficult business, and it's of a massive size.

So when we analyze the working capital quarterly -- on a quarter basis, every little movement, I don't know how much reflects our performance. I have to be honest with you. I do really believe that the quality, the way we manage our cash is the best possible. We have a clear philosophy that the money has to be, if possible, in the hands of our suppliers and subcontractors. And obviously, it has an impact in the working capital quarter after quarter. But believe me, if there is anything here is discipline with the cash. That's very clear to me.

And you asked something about prepayments. Well, last project awarded to TR was the project in Abu Dhabi 7 months ago. So the inflows coming from prepayments this year have not been that relevant, and a large part has already been consumed. I don't have a figure with me now. But again, you used to ask me about prepayments, but you don't ask me about the withholdings of the clients, the retentions they do and they pay at the end of the project. You don't ask me about the prepayments I do to my subcontractors. You are missing many questions. And probably, we need to make a more complete analysis. But in terms of prepayments from our clients, it's a fact that there has been only one relevant prepayment this year. It happened 6 months ago, and a large part has been passed to our suppliers.

[Operator Instructions] There are no further questions at this time. Please proceed.

Okay. There are no further questions. So we can finish this presentation. Thank you very much for listening. Thank you very much for posing questions. It clarifies many things to all of us. And we'll be talking again, I guess, with the final year-end results by February. So see you all or talk to you all in February. Thanks again.