ACS, Actividades de Construcción y Servicios, S.A.

Good morning, everyone, and thank you for attending 2025 Results Call of ACS Group. I'm joined by our corporate general manager, Ángel García Altozano, and our chief financial officer, Emilio Grande. As usual, after the presentation, we'll host a Q&A session to provide you with any clarification that you may need. Those who are connected via our website can ask their questions through the established channel. So let's start with the first slide of our presentation. In 2025, the group delivered very strong operational and financial results, with solid growth in sales, backlog, and net profit, backed by robust gas flow generation. We're making solid progress in executing our strategy, increasingly leveraging our global footprint and engineering expertise to drive sustainable growth. We continue to actively pursue highly attractive equity investments opportunities across both traditional and next generation markets, generating long-term value for all our stakeholders. Let me give an overview of the key highlights for the period. Ordinary net profit reached 857 million euros, up 25.3%, or 32.4% if it's adjusted, exceeding our top end of our revised guidance. On our reported basis, net profit stood at 950 million. Sales in EBITDA were up by 20% and 20% respectively, driven by robust momentum across all our segments. Operating margins improved as well across the group. Net operating cash flow reached 2.2 billion euros in the last 12 months. This is up 320 million adjusted for factoring variations, highlighting the quality of for-profit growth. As a result of this strong cash flow generation, the group achieved a net cash position of 17 million euros at the end of 2025. This is after allocating 2.1 billion to strategic investments and shareholder remuneration. SWATIC investments include $564 million in data center projects, $436 million of the Dornan acquisition, and $200 million of the capital contribution to Abertis. In addition, $448 million were allocated to shareholder remunerations. New orders during the year of 62.5 billion euros showing an accelerating growth trend up approximately 27% FX adjusted, resulting in a higher book-to-bill ratio of 1.3 times. Within the outstanding new orders figure, digital infrastructure represented approximately 28% or 17.6 billion with growth of around 130% year on year effects adjusted. The other backlog grew by 14.6% effects adjusted reaching 92.9 billion euros supported by sustained demand in biopharma, defense, critical minerals in data centers. Looking ahead, we remain very confident in the group's outlook and set our ordinary net profit growth target of 20 to 25% for 2026 up to 1 billion, 70 million euros under PMH fund fundamentals. Let's take a closer look at the group's consolidated performance for the period. Sales rose by 19.7% to 49.8 billion euros. driven by the exceptional performance of Dorna, which achieved approximately 34% organic growth, or 40.3% if it's adjusted, particularly supported by digital infrastructure, healthcare, and education projects. This momentum was further enhanced by the integration of Dorna and the full consolidation of this since second quarter of 2024. EBITDA increased by 25% to 3.1 billion euros, with margin expansions across all segments and at overall group level. Profit before tax amounted to 1.7 billion euros, up 67.3%. On a comparable basis, PBT grew by 24.8%, particularly fueled by Turner's outperformance in the solid evolution of Flatiron Trogados. We deliver strong ordinary net profit growth of 25.3% year-on-year on a comparable basis, reaching 857 million euros, above the top end of our full year guidance. Turning now to the ordinary net profit split, I would like to highlight the following. Turner delivered outstanding performance, with its contribution rising 66.6% to €549 million, driven by the strong growth in high-tech markets and improved margins. CIMIC contributed €199 million, supported by the strong growth in data centres, biopharma, healthcare and education, but also the natural resources. Engineering in construction recorded a very strong result, growing 35.7% year-on-year, reflecting a higher contribution from flat iron drogados and solid results in hoctic Europe. Liberties delivered a resilient operational performance during that period, despite non-operational impacts. During the year, the group implemented efficiency measures involving 32 million euros in restructuring costs, aimed at streamlining operations and unlocking synergies that will enhance performance in the coming years. Slide 5 highlights a group's strong and consistent cash flow generation. Net operating cash flow amounted to 2.2 billion euros, supported by a robust EBITDA. Uplift of 25%, an outstanding level of cash conversion. Adjusted for factoring variations, the net operating cash flow increased by 320 million euros. Building on this, the acceleration of cash flow generation in the fourth quarter further improved the previous quarter last 12 months' figure of 2 billion. We reached a net cash position as of December 2025 of €17 million, showing an improvement of €719 million since December 2024. This performance is primarily the result of the Group's strong net operating cash flow, facilitating significant strategic capital allocation initiatives. In the period, we have executed 1.7 billion euros in financial investments, including 564 million euros in data center projects, 436 million for the Dornan acquisition, 316 million of M&A, 207 million in other net infrastructure equity investments, and 200 million for the Abertis capital contribution. Financial divestments of 1 billion euros, including the 50% sales of UGL transport, the data center platform 50% divestment, and the final settlement of ACS industrial. Additionally, 448 million of cash were allocated to shareholders remuneration. Our disciplined approach to capital deployment supports our long-term growth strategy while maintaining a solid financial position. Moving on to slide 7. Our order backlog stands at an all-time high of 92.9 billion euros as of December 2025. This growth was underpinned by a very strong order intake of 62.5 billion euros, up 26.6% if it's adjusted, resulting in an improved book-to-bill ratio of 1.3 times. This very positive performance reflects the group's continued success in securing high-quality projects across strategic growth markets, particularly in data centers, defense biopharma, critical minerals, and nuclear. Notably, digital infrastructure now accounts for approximately 28% of new orders, at circa 130% year-on-year effects adjusted, driven by the strong sustainable demand in data centers. We're also seeing strong traction in Germany, where positioning allows us to benefit from the country's increased focus on infrastructure investment. New awards in Germany grew by approximately 41% year-on-year, reinforcing our ability to capture opportunities in this key market. In the following slide, we can see a selection of recent awards. It is worth placing these projects in the broader context of the ACS Group's strategy, where we have continued advancing to become a leader in rapidly expanding strategy growth verticals, including artificial intelligence, digital and tech sector, energy, including nuclear, critical minerals, and defense. This momentum builds on our long-established, locally embedded presence in core infrastructure markets in North America, Australia, and Europe, which remains the foundation of our competitive strength and our ability to scale into these next-generation markets as a lifecycle partner. Let's start with the digital infrastructure and advanced tech sector, where we command a leading position. Growth in the global data center market remains extremely strong. Soaring demand for cloud services and AI is expected to quadruple DC and compute CapEx by 2035, boosted by the growth of generative AI and further cloud migration. The group has the resources and capabilities as a firmly established global end-to-end solutions provider to meet this rising demand. During the period, we have been awarded several new large-scale data center projects. Among these new awards we can find the announcement of the construction of the 902 megawatt data center complex in Wisconsin, which is part of the 500 billion Stargate program. Most recently, Turner was awarded a role in the delivery of the $10 billion one-gigawatt data center campus for Meta in India. In Europe, Dornan was awarded the construction of a 160-megawatt data center in the Netherlands. This is the result of Turner's expansion slightly into Europe, with Dornan executing a project for a recurring Turner client. We'll also be building a 58-megawatt data center in Malaysia for a long-standing repeat client. Construction has already started for the data center in Alcalá. A joint collaboration with Rogados Iridium Turner ensures we have participation in the context of the data center platform. Additionally, we have solid medium-term visibility via our order book and our expanding pipeline in North America, Europe, and Asia-Pacific. Energy-related infrastructure represents an artist for the growth vector for the group, with structurally rising demand driven by the global energy and security of supply. ACS is strategically positioned across the full energy value chain, from generation storage to transmission and advanced technologies, with strong end-to-end capabilities and global engineering expertise. With several decades of experience designing and building nuclear power plants and complex energy facilities worldwide for leading utilities, the group is well-placed to support the deployment of the next generation technologies, including small modular reactors, or SMRs, as well as new build, storage, and decommissioning projects. This positions us in a market expected to exceed 500 billion euros investment in Europe by 2050. At the beginning of 2026, an important strategic milestone was reached when we were selected as part of the Amentum's global private delivery team for the Rolls-Royce SMR nuclear program. And during the final quarter of 2025, we secured a major nuclear and civil works framework contract worth up to 685 million euros, lasting up to 15 years involving civil infrastructure works at the Sellafield nuclear site in the UK. Turning to renewables, we continue to strengthen our market presence, particularly in Australia, where our companies have delivered more than 20 major renewable and storage projects. Reflecting this momentum in the awards, Siemens Sub-Serie UGL was selected for the Western Downstate 3 battery project in Queensland, Australia, to construct a major renewable energy storage facility with energy storage capacity of 1,220 MWh. Let me turn now to critical minerals and natural resources, an archipelagic growth market for us. We are capitalizing on accelerating demand for critical minerals driven by clean energy technologies, digital infrastructure, and defense modernization. Leveraging the combined capabilities of Setsman and TIS, we have established a global position in minerals, processing and sustainable mining services across key commodities such as lithium, copper, rare earth, nickel, vanadium, uranium and zinc. In December, the group expanded its partnership with Vulcan Energy through a significant cornerstone equity investment, while securing an end-to-end role in the development of its lithium production and processing infrastructure in Germany. Under the agreement, we have also been appointed as EPCM contractor a name preferred supplier for the project's civil works. In addition, we have been awarded contract by Hindustan Sink to support the delivery of India's first sink tailing recycling facility. We recently awarded the Mount Pleasant Operation contract extension in New South Wales, Australia, to provide full mining services. Moving now to defence, where infrastructure investment is expected to increase substantially worldwide. In Europe, Major multi-year defence investment plans, including in Germany, present substantial opportunities in defence-related capital works and potentially via the public-private partnership model. And in the US and Australia, governments are also planning major increases in defence spending over the next decade. At the end of 2025, the group's defence backlog stood at 3.5 billion euros, which included A recently secured involvement in a major 10-year collaborative contract for the German armed forces in Hamburg with a total project value of 1 billion euros. A North American civil business, Flatiron Trocados, being selected as one of the companies for a 10-year construction contract for the U.S. Air Force Civil Engineering Center. And other projects, including the construction of a major dry dock at Pearl Harbor for the U.S. Navy, works for the Royal Australian Air Force Base in Queensland, and defense infrastructure upgrades in Australia. In biopharma, health, and social infrastructure, we continue to hold in positions with several significant new orders, such as, first, the New York Public Health Laboratory, consolidating the largest and most diverse state public health laboratory in the U.S. under one roof, the regional One Health Hospital campus, A once-in-a-generation investment to expand critical services and strengthen community access to care in Memphis. The Philadelphia Arena, including the construction management for the new state-of-the-art arena in the South Philadelphia Sports Complex. Two major building contracts in Germany. A hospital new build project in Flensburg. The first one in Germany using integrated project delivery. And a PPP project for a research administration building in Kiel. Finally, the group is also a global leader in transport and sustainable infrastructure, with a very positive outlook driven by several infrastructure stimulus packages. In Australia, we were awarded the Perth Airport new runway construction, as well as the Queensland Gateway to Bruce upgrade. We secured the I-59A-40 highway upgrade in Duisburg, Germany. Recently, we won the Battery Park Resilience Project at $1.7 billion construction in New York. And in Sweden, we secured a €1 billion high-speed rail project under Collaborative Model Delivery, part of the East Link Program. Let us now move into the performance by segments. On the slide 10, we begin with Dorna, which is delivering exceptional results, consolidating its leadership in strategic sectors. Sales grew by 33.9%, reaching 25.8 billion euros, mainly driven by organic growth across data center projects, as well as solid growth in areas such as healthcare, education, sports, and airports. This solid performance was further supported by the contribution from Dorna. whose exceptional performance was up 70% in the year. Profit before tax increased to 921 million euros, representing outstanding increase of more than 61%. This was supported by continued margin expansions of approximately 80 basis points to 3.6%, reflecting Turner's successful strategy focused on advanced technology projects in line with the group's strategic objectives. Net operating gas flow increased by 523 million euros to an exceptional 1.2 billion. Net cash as of December 25 was €3.3 billion, up €179 million even after the acquisition of Dornan. Turner's commercial strengths are demonstrated by its new orders of €33.6 billion in a year, an increase of 44.2% if it's adjusted driving record order backlog to €37.7 billion. Moving on to our operations in the Asia-Pacific region, we turn to CIMIC. where sales registered strong growth in the strategic areas, such as advanced technology, healthcare, and defense, and were 11.2% higher, supported by the full consolidation of this, and despite the winding down of large transport infrastructure projects. EBITDA margins grew by approximately 30 basis points, underpinned by strong contribution from high-tech jobs across both UGL projects. enlightened Asia. Ordinary profit before tax increased by 12.3% year-on-year, effects adjusted to 473 million euros. Achievable net profit grew by 1.4% effects adjusted year-on-year. Net operating gas flow before factoring grew by 43 million, supporting a strong 366 million net gas improvement, which also includes divestment of 50% of UGL transport and the data center project. Our order backlog was solid, reaching 21.8 billion euros, up 6% year-on-year adjusted on a comparable basis. New orders were up 5.6%, effects adjusted, with particularly strong growth in data centers, defense, and critical minerals. Turning now to engineering and construction segment on slide 12. We can see solid growth with consolidated sales increasing 15.1% year-on-year effects adjusted to over 10.6 billion euros, driven by the strong performance in North America and the robust contributions from both Tragados and Hochtief Engineering and Construction. EBITDA margin increased by 53 basis points to 5.8%, supported by significant contributions from Flatiron Tragados. Ordinary profit before tax grew significantly by 45.2% if it's adjusted to 275 million euros. And a strong cash conversion with net cash position up 118 million. Engineering construction backlog rose by 10% if it's adjusted to 30.1 billion euros reflecting a strong order intake of 13.6 billion with notable momentum in sustainable mobility in transportation infrastructure. Looking ahead, the outlook remains very positive, and as I highlighted, we are particularly well positioned to benefit from the infrastructure investment plan in Germany. Continuing now with the infrastructure segment on slide 13. Iridium has increased its sales by 45% driven by the additional contribution of the A13, the financial close of the SR400 in Georgia, and general positive performance across operating entities. Also, as you might know, we have been recently pre-qualified for the I-77 in North Carolina. This adds to the previous two pre-qualifications of the I-285 in Georgia and the I-24 in Tennessee. Avertices requiring business showed growth above 6% although financial contribution was impacted by non-operating results. Abertis distributed a dividend of approximately 600 million euros in the second quarter of 2025. In the next slide, we provide for your reference a breakdown of the invested capital and valuation as of December 25 for the portfolio of all assets in our greenfield platforms. Among others, we are now including valuation of our stake in the data center platform as well as the average value that our research analysts are assigning to our ESSER 400 project. On the next slide, we take a more detailed look at the Abertis numbers. Traffic grew by 2.1%, supported by strong performance of heavy vehicle traffic. And we saw strong results, particularly in Spain, Chile, and France. On a like-for-like basis, the company delivered robust revenue and EBITDA growth of 4.5% and 6.2% respectively, underpinned by the geographical diversification of the portfolio and inflation-linked tariffs. Regarding portfolio development, as you know, Abertis acquired 51.2% stake in the A63 toll road in France. Additionally, Abertis was awarded a 21-year extension on tariff adjustment at Fluminense and acquired the remaining 49.9% stake in towns de Valvidrera and Cadiz. In Chile, the Santiago Los Vilos concession began operations. Abertis has improved its liquidity and financial strength, with net debt set at 22.7 billion euros. On slide 16, we saw the breakdown of key figures by country for Abertis' portfolio. Next, as we do every year, we dedicate a brief section to reviewing some strategic updates. This slide highlights the progress we are making across our strategic growth verticals, both from a developer and a contractor perspective. We have already discussed many of these key milestones in the earlier slides, so let me quickly go over the key points. In digital integrity, we continue being in data centers. The backlog has grown at circa 70% over the past three years. Some important recent awards include the 1GW project for MetaIndiana announced only a few weeks ago. As a developer, 100 of our data center platform sites are now grid-connected with around 80% power supply already secured. We are in advanced negotiations for lease agreements covering 150 MW IT in the first instance, and we're targeting to sign the first lease in the first half of the year. In defense, we are on track to deliver the 2030 revenue ambition of 10 billion euros, driven by major wins like the German Armed Forces Campus and the long-term contract for the U.S. Air Force. We are also seeing strong progress in critical metals. We recently acquired an engineering company in the U.S. Additionally, our participation in Vulcan is another crucial strategic step. Lastly, let me stress again the delivery partner role of our consortium with a momentum on Rolls-Royce's nuclear SMR program. Overall, these wins reflect our decisive progress in reinforcing our end-to-end leadership and leveraging our investment opportunities. On slide 19, we take a deeper look at the outlook for AI-driven data center growth. ACA is strongly positioned to benefit from rising data center infrastructure investment underpinned by sustained structural demand. Market fundamentals continue to accelerate and hyperscaler demand provides multi-billion, multi-year visibility. Our global data center intake has more than doubled in 25 up to 17 billion euros. And finally, their evolution is not only strengthening our backlog and growth prospects, it's also enhancing our core capabilities and opening new growth avenues for ECS. And before we move to the conclusion, this slide delivers a simple yet powerful message. We have already achieved in 2025 our key 2024 CMD goals for 26, one year ahead of schedule. Revenue and NBAT have both reached or exceeded the goals we set for 2026, while the net operating gas flow generated between 2024 and 2025 already exceeds the target set for the full three-year period. To conclude our review of the full-year 2025 results, let me highlight the key achievements of the group. First, we deliver strong operational performance with sales reaching 49.8 billion euros, up 19.7% year-on-year, an ordinary net profit of 857 million, up 25.3%, and exceeding at that end of our guidance. The group demonstrated outstanding cash generation with net operating cash flow of 2.2 billion euros, which in turn supported net financial investments of 1.7 billion. Our order backlog stands at record high of 92.9 million euros, underpinned by 62.5 billion in new orders, up 26.9% if it's adjusted, including 17.6 billion in digital infra-order intake. It's also worth highlighting the progress of our data center development platform, Our partnership with BlackRock's GIP to develop more than 1.7 gigawatt worldwide was a major milestone that reinforced our leadership in one of the fastest growing global markets. And finally, we remain confident in our ability to continue executing our proven strategy. For 26, we're setting an ordinary net profit growth target of 20-25% up to 1 billion 70 million euros. Looking ahead to 2026 and beyond, we remain focused on our strategic growth markets and disciplined capital allocation. As discussed, we see significant infrastructure investments opportunities and continue to pursue Bolton acquisitions to strengthen our engineering capabilities and long-term growth prospects. We are well positioned to continue delivering sustainable growth and attractive shareholder returns. Thank you again for joining us today, and now we look forward to your questions.

I had three questions if I could please The first one is we've seen the share prices of both stocks tune beautifully and I just wanted to ask you to what extent it would be tempting for you to maybe reduce the stake in Turner through a listing in order to upstream monies and pay for development and investments at ACS level or for example do a reduction in the Hockney stake and with the same purpose and increase investments. The second question, we're seeing the same assets held for sale on the balance sheet in energy. They've been there for a while now. Any updates of how those disposals are evolving and when we should expect outcomes, news? And then finally, referring to one of the things you were commenting before, you have visibility in your order book until some point in 2028, but you make reference to a pipeline beyond that, which is obviously essential to sustain the valuations and the expectations that you have for earnings in data centers. Can you give us an order of magnitude of that pipeline beyond the order book that you might have over the today to 2030 period? Thank you.

Thank you so much, Chris. So let me start. We do not have plans to reduce our shareholding internal so far, right now, or to reduce HOCTIF. And let me take the chance to speak about the way we see the valuation of our share. And I get back to our investors at the end of last year. First of all, we have two main businesses, right? The one that is visible through our EBITDA and that's supported by the growth of Turner, future growth in Germany and the performance of CIMIC. And what we are seeing is two main things without getting into a lot of the details. A turner that continues growing, a turner that before 2020 was giving 350 million PVG and right now this year has delivered 1.45 billion, but with a guidance of up to 30%, which would be around 1.34, in 26, which we consider very conservative, right? And the reason why we cannot increase is obviously because we're taking into account a lot of the planning, we rely on hyperscalers, we rely on clients and we are in that planning mode and we need to land on something before reaching a resolution. And also the US dollars with all our assumptions imply that it will continue to go in the evaluation mode. So that's on the business, right? Now, so Turner has multiplied by around 3.5 times in a few years, but we believe that we'll continue growing, a very significant path. So not only has grown 70% US dollars, 25, and we're already giving a guidance of 30%, and we believe that we can double Turner. Now the question is in how many years, but certainly in a reasonable short to medium term time. Then we do have the multipliers of Turner, right? Turner has a significant portion of its backlog in data centers. We are seeing that our peers in data center space are more than 30 times AB time, between 20 to more than 30 times. Average consensus for Turner is way below that, right? And the rest of the business in Turner goes through semiconductors, batteries, biopharma, and other sectors that will continue improving margins. In data centers, we gave a feature for Turner of reaching revenues just in data centers around $25 billion by 2030. So that's a business, right? Then we see Germany growing and defense growing. And we're not including any of this the verticals that we're working right now, because we do consider that the real value will be seen medium to long term. Nuclear, critical metals, et cetera. So we believe on the share and the share valuation. But what the share is not reflecting for obvious reasons is the assets, because that's not reflected in the EBITDA. And a lot of what we're doing right now, it's investing in the assets, right? Data center platform, the edge data center platform, additional to the big one with BlackRock, Greenfield, Abertis growth, and not Abertis growth just on inorganic M&A, but the organic M&A and the renegotiation fallout of the contracts that we will provide some visibility this year, right? And then what we're doing, critical metals, industrial energy, et cetera. We believe that the share will continue to reflect the value of all of this. So right now we're not taking the view that it's the right time to sell anything, basically. Two, asset for sales. I mean we – the reality is that there's a combination of facts here, right? One is for a net operating – net cash flow basis in the capital markets they were always talking about approximately 1.5 billion net operating cash flow. Post dividend, 600 million in dividends or shareholder remuneration, we had 900 million net for acquisitions basically or investments. Now, that 1.5 has ended up being 2.2 this year, 2.1 last year. So basically we're talking about 1.4 to 1.5 billion firepower per year net of shareholder feminization, right? If you multiply that by five from now to 2030, you are significant firepower for investments. So there's a strategic piece that we're not so much in a hurry to divest some of the industrial assets. Plus, we want to make sure that they perform in the right way to maximize value. So there's a combination of both things. Now your third question was about the pipeline and beyond. So you saw on the screen we are close to 93 billion backlog. Most of our projects, and this has been the real change of SPAT in the last four years, by moving from being a commodity in construction to being an end-to-end service provider, most of our contracts are not low-priced, lump-sum RFPs. They come at the back of a long negotiating process, design, planning, and working with our clients. So there's approximately 25 billion euros that are not reflected in the backlog, but we are currently working with our clients. Out of the 25 billion euros, there's 18 billion in Turner, approximately 22 billion in US dollars at Turner and out of which there's approximately a little bit more than half of it that is data centers. So all of that contribute to our visibility in the medium term and how comfortable we are with our potential guidance. That we believe not only at Hoek-Tee but ACS is conservative But we need to see how a lot of these projects land and when they do land. Thank you.