Fluidra Sa Unsp/Adr

Good morning and welcome to our Q3 2026 results call. My name is Clara Valera, Strategy, Investor Relations and FP&A Senior Director. Joining me today on this call is our Executive Chairman, Eloy Planes, our CEO, Jaime Ramirez, and Juan Graham, our Chief Financial Officer. They will walk you through the presentation and afterwards we will open the floor for questions. You can follow the presentation in either English or Spanish by selecting your preferred language in the drop-down menu at the bottom right-hand side of your screen. If you would like to ask a question, please find the information and instructions in the Ask a Question tab on the webcast. Please register to receive dial-in details. After the registration process, you will need to press star 5 on your telephone keypad to ask your question. The presentation is available on our website fluidra.com and was filed with the Stock Exchange Commission earlier this morning. A replay of today's call will also be available on our website. With that, I will now hand over to our Executive Chairman, Eloy Planes.

Thank you, Clara. Good morning and thank you for joining our call today and for your interest in Fluidra. Before I begin, we would like to express our deepest condolences to everyone affected by yesterday's tragic train accident in Toledo. Our thoughts are with those who have lost their lives, the injured and their families, as well as with the teams working to assist them. And now, turning to our results, while Jaime and Juan will provide more details shortly, let me start with a few key points from my side. We deliver a strong performance in the first nine months of the year in a soft and volatile macro environment. Our performance has been resilient and consistent in the context of our industry and once again demonstrate the quality of our business, the effectiveness of our strategy and the organization's productivity in recent months under Jaime's and more recently also Juan's leadership. Here today, sales were up 4% at constant FX, with volume growth led by Southern Europe and North America and sequentially higher price contribution. We continue to outperform the market. Our efficiency plan continues to pay off, with savings and diligent cost control offsetting higher inflation and unfavorable mixed FX. In the third quarter, we delivered a good performance over a strong prior year comparable, with sales up 3% at constant FX and adjusted EBITDA up 7%, reaching 107 million. We remain confident to deliver within our existing full year guidance. Given our performance year-to-date and the current market environment, we are narrowing our range. Jaime will take you through the details later in the presentation. We are focused on finishing the year with discipline and agility while closely monitoring the trading environment. Our strategy to continue to win is driving growth, differentiation and competitiveness to deliver value today and into the future. This year, for the sixth consecutive time, we have been recognized by leading U.S. distributors a clear testament to the strength of our customer relationship, our service, and our brands. I'm proud of how the team is executing. Supported by the structural attractiveness of our industry and the resilience of our business model, we remain confident in our ability to continue creating value for our shareholders now and into the future. And with that, I hand over to Jaime.

Thank you, Eloy, and good morning, all. Let me start with the highlights of our nine-month performance before Juan takes you through the financials in more detail. Year-to-date, sales reached 1,780,000,000 euros, up 4% at constant FX. Growth was driven by solid aftermarket demand, good execution, and the contribution from M&A, with continued market share gains that allow us to once again outperform the market. Adjusted EBITDA was up €428 million, up 6% at constant FX, with a margin of 24.1%, 20 basis points above last year. Dirigent Cost Control and the €23 million savings delivered by our efficiency plan offset inflation, showing the further improved operating leverage of the business. Adjusted EPS was €1.15 per share, up 6% at constant FX. Net debt stood at 1 billion 145 million euros and leverage was broadly stable year on year at 2.2 times net debt to adjusted EBITDA. After completing the 40 million share buyback program launched in July, the formalization of the lease coming from our plan in 10 years and some effects impact. Overall, these results show that we continue to execute our strategy well. We're growing ahead of the market, protecting and improving our profitability, and maintaining a strong balance sheet that gives us strategic flexibility. Turning to slide 6, on the right-hand side you can see the impact of the 1% volume growth year-to-date and the positive 2% price contribution, which accelerated in the third quarter as the pricing actions implemented earlier in the year flowed through. M&A added around one point of growth, mainly from the variable pool acquisition, while FX had a negative effect of around one point, a lower impact than in the first half. In the third quarter, sales grew 1% at constant FX on perimeter, against a strong prior year comparable across key markets, U.S. and South Europe. By region, North American sales grew 3.5% year-to-date and 2.6% in Q3 at constant effects on perimeter, with sell-through across our channels up mid to high single digits, outperforming the market. Let me remind you that Q3 last year was very strong with 13% organic growth, so a difficult comparable. Our performance reflects continued market share gains driven by our customer-centric model, excellent service, our focus on the Sunbelt region, and our positioning in the mid- to high-end segments. We sell through running ahead of selling. Channel inventory of our products remains at healthy levels. In Europe, Southern Europe sales are up 6% year-to-date. After a strong first half and a good and early summer season compared to a season that started late last year, the rest of Europe was up 1% both year-to-date and in the quarter, affected by mixed market demand and the timing of commercial pool projects. Sales in the rest of the world grew 1% year-to-date at constant effects on perimeter and were broadly flat in the quarter, with continuous softness in the Middle East offset by solid performance of the emerging markets. Commercial pool sales are down 4% year to date on a strong prior year period, driven by the timing of some of the projects. We firmly believe in the attractiveness of this segment. We have a strong pipeline of projects for the months ahead. It is a matter of timing. In summary, while demand for new builds remains soft across most of our markets, the aftermarket remains resilient and we continue to gain share in our core regions, reflecting our initiative being executed on our strong leading platform. Turning to slide seven, I would like to take a step back and remind you why Fluidra is a strong business today and increasingly strongly positioned for the future. We are the global leader in an attractive industry, driven by structural long-term trends. We are the number one player in pooling wellness worldwide, with around 65% of our sales coming from the aftermarket, which means the maintenance and repair of the existing installed base pools. This provides resilience, as our results this year demonstrate. We have a clear strategy to strengthen our global platform that is delivering results. On accelerating growth, we continue to invest in commercial excellence and to grow both organically and through acquisitions. APRI continues to grow in line with our plan. We completed the acquisitions of Barrio Pool in the Netherlands and Ryan Pool in South Africa, while the Idra Pro acquisition in France remains on track to complete in early 2027. On our differentiated offering, we're investing in innovation, the connected pool bundle, and a digital offering to enhance the pool professional and pool owners' experiences. This sets us apart. I will come back in a moment to our focus on accelerating innovation. And on enhancing operational excellence, our efficiency plan is on track to deliver with approximately $23 million of savings year-to-date. Our new facility in Tangiers started production in the third quarter, and we continue to optimize our manufacturing footprint. Lastly, we're achieving our results while currently operating at historical cloud levels of new pool construction in our largest market, the U.S. In 2026, we expect new pool construction could be around 55,000 to 56,000 units, about 30% below the 2016 to 2015 average of 80,000. Even in this context, we continue to grow and gain share. When new construction returns to more normalized levels, we will benefit from the operating leverage of a solid, more efficient platform. We are a strong leading business today and well positioned for the recovery. Moving to the next slide, what makes us the partner of choice across the pool ecosystem? Industry-leading innovation with differentiated solutions across automation, water care and equipment designed to simplify pool ownership and professional service. A connected digital ecosystem integrating equipment, apps and digital services that enables smarter pool management for both professional and pool owners. Our loyalty programs and rewards. We trade exclusive products, programs and support, and tools that help professionals grow their business. And last but not least, our best-in-class service and capability building. We provide full technical support to improve our customers' productivity and hands-on training through our Fluidra Pro Academy Centers in the US, which we have opened since 2018. The result is reflected in the recognition we receive from our customers. For the sixth consecutive year, we have been recognized by leading U.S. distributors, including receiving the 2026 Growth in Partnership Award by our largest customers, something we are very proud of. Innovation is one of the key levers to winning the market, and on slide 9 we want to put a spotlight on it. This slide introduces Infinity, our new intelligent pool operating system for the North American market. The ambition is to move beyond connected products and basic control towards a platform that uses data to make pool ownership and servicing smarter, simpler, and more personalized. This is ahead of any other solution in the market. Thank you very much. Launching at the end of 2026 into 2027. From automation and water sensing to pump control, lighting, sanitation, and heating. These solutions address both new build and aftermarket opportunities across different price points and can scale to match each pool owner's needs. Ultimately, Infinity is designed to connect the products and digital tools around the pool in one ecosystem. Thank you, Jaime, and good morning, everyone.