Hochtief Ag

Ladies and gentlemen, welcome to the Oath Keep Publication Half-Year Report January-June 2026 Analyst and Investors Conference Call. I'm Lorenzo, the Callers Call Operator. I would like to remind you that all participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Mike Pinkney. Please go ahead, sir.

Thanks, operator. Good afternoon, everyone, and thank you for joining this HawkTeeth half-year 2026 results call. I'm Mike Pinkney, head of capital market strategy, and I'm here with our CEO, Juan Santamaria, and our CFO, Christa Andresky. as well as our head of IR Tobias Loskamp and other colleagues from the senior management team at Hawke Tief. We're looking forward as always to taking your questions but to start off with our CEO is going to run us through the details of another set of very strong results from Hawke Tief, the guidance increase that we've announced earlier today and the group's strategic progress. Juan all yours.

Thank you, Mike and team, and welcome to everyone joining us for this results call. Hochtief has delivered a very strong result in the first half of 2026 with significant increases in revenues, profits, and orders whilst making further positive progress in our growth strategy. As a consequence of the acceleration in growth and the group's enhanced prospects earlier today, we raised Hochtief's operational net profit guidance for 2026 to 1,025 million, from 1,025 million to 1,100 million, versus the previous 950 to 1,025 million, targeting an increase of around 30% to 40% year-on-year, versus the 20% to 30% before. Focusing on the first six months, octave sales rose by 13% if it's adjusted year-on-year, to 20.1 billion euros, driven very strong operational performance and the continuing successful strategic delivery. Supported by expanding margins, operational net profit was 35% higher at 480 million, up 41% on an FX-adjusted basis. Equality of Hochtis profit delivery is underlined by the strong cash conversion achieved. First half operating cash flow showed A year-on-year improvement of 280 million or 297 million prefactoring. Over the last 12 months, operating gas prefactoring stands at 2.4 billion euros, which is equivalent to a 396 million year-on-year increase. And I wanted to underline that we finished June with a net gas position of 72 million euros. A further highlight of our first half numbers is the significant increase in orders. New orders of 31.5 billion continued to increase substantially, up 25% as I suggested, year on year, with significant wins across our strategic growth verticals. These lifted Our order backlogged to another record high of almost 85 billion, up 23% year-on-year, providing a strong and diversified foundation for further growth. Let's take a brief look at our performance on the segment level. Turner delivered another impressive set of results. First house sales of 14.1 billion euros were 23% higher FX adjusted, driven Thank you. This substantial increase in profitability was driven by a more than doubling of data center work as well as the margin enhancement resulting from Turner's end-to-end strategy including expanded supply chain and modularization services and increased self-perform capabilities which includes MEC and ALEC. Operational net profit jumped 50% to 400 million euros underpinned by a continued high level of cash conversion with operating cash flow of 416 million euros plus 41 million year-on-year. and this is pre-factoring in the six months period. New order momentum remained very strong, up 39% effects adjusted to almost 21 billion, including $1 billion of semiconductor work, driving a record order backlog up 39% year-on-year to 46.1 billion euros. Following this outstanding set of numbers, we're increasing our 2026 guidance for Turner to an operational profit before tax and others. Next, we have Simic, who delivered steady performance with solid margins and improving cash flow metrics. Furthermore, on July the 1st, the company acquired the remaining 40% interest in TEAS, returning The global mining business to full ownership. First half sales of 5.2 billion euros were up slightly year-on-year on a comparable basis, adjusting for the sale of 50% of UGL transport. And revenue saw rising contributions from strategic growth markets, particularly data centers, which were around 40% higher, offsetting the winding down of large transport infra projects. Operational PVT, of 236 million euros rose 8% year-on-year on a comparable basis. A net operating cash flow pre-factoring shows an 82 million euros improvement year-on-year. Net debt was reduced by 1.2 billion euros, including a capital increase for the T's minority buyout and the investments of the UGL transport stake and a DC project. New orders for the period came in at 6.4 billion euros. with a book-to-bill ratio of 1.5 times and CIMIC ended the period with a solid order backlog of 23.7 billion euros, up 12% year-on-year comparable. Our CIMIC 2026 expectations are unchanged at an operational profit before tax of 2026 in the range of approximately 780 to 830 million, a 4 to 10% comparable rise. Next, our engineering construction business, which is in a very solid growth path. Although sales of 800 million euros were stable year-on-year, reflecting short-term project timing effects in our European business, the segment delivered very strong growth in operational PVT of 37% year-on-year to 55 million euros. Engineering construction also saw a strong last 12 months cash conversion, with net operating cash flow of 140 million supporting further investment in our edge data center network and PVPs. New orders of 4.0 billion euros were driven by the European business up 78% year-on-year. Overall, new work secure represent 1.5 times work done last 12 months with a year-on-year variation reflecting the exceptional level of project wins in early 2025. The total Order backlog increased to 14.9 billion euros up 17% year-on-year, highlighting the solid growth momentum of the business. For 2026, we continue to see strong performance at our engineering construction segment with operational profit before tax guidance of between 125 and 140 million euros, which implies an increase of up to 42% year-on-year and we're very confident that the business will deliver further strong growth in 2027 and beyond. Let's take a brief look now at Abertis which achieved a solid operational performance. Average daily traffic increased by 1% year-on-year while tariffs were 3% higher leading to sales growth of 5% and an EBITDA rise of 6%. Net profit pre-PPA amounted to 369 million euros and Abertis' operational and nominal restart contribution for a 20% stake worth 35 million euros, similar to last year. During the period, Abertis announced acquisition of the remaining 48.8% it did not already own in France motorway A63, which has a 25-year remaining concession life. Furthermore, Abertis extended its largest concession in Mexico, RCO, the country's main industrial corridor, until 2067. These moves further enhance Avertis' long-term business profile and cash flow replacement strategy and increase its average portfolio duration from 12 to 15 years. Now, allow me to briefly update you on the group's strategic delivery and long-term growth opportunities. Our strategic agenda remains focused on further strengthening Hochtief's positioning as an end-to-end infrastructure solutions provider, delivering sustained high-quality growth while reinforcing the resilience and long-term value of the group. During the last four years, we have advanced to become a leader in rapidly expanding strategic growth verticals, including the AI, digital and tech sector, energy including nuclear, critical minerals, and defense, where infrastructure investments continue to accelerate. This momentum builds on our long-established, locally embedded presence in core infrastructure markets in North America, Australia, in Europe, which remains the foundation of our competitive strength and our ability to scale into these next generation markets as a life cycle partner. In data centers, notwithstanding exponential growth in North American market over the last three years, we expect further significant and sustained growth. Our ability to embrace this growth is driven by integrated operating model that combines scale, innovation, supply chain, and increasing self-performed capabilities as well as industrialized construction. Together, these competitive advantages are allowing us to expand capacity while maintaining execution certainty. Working alongside our clients, we are at the forefront of advancing increasingly standardized design and delivery models that enable greater use of modularization and prefabrication. These approaches increase execution capacity and productivity, allowing the group to deliver significantly more work with greater speed, consistency, and quality while continuing to meet growing demand. During the first half of 26, we secured new orders for data centers worth around $13.3 billion, up around 50% year-on-year, including a project as one of the e-contractors for a $10 billion 1 gigawatt data center campus in Indiana As AI advances and demand for high-performance computing continues to grow, gigawatt-scale campuses will play a critical role in supporting next-generation digital infrastructure. Earlier this month, Turner announced it will help make a deliberately expanded $50 billion investment of its Louisiana project. Originally announced as a campus supporting more than two gigawatts of IT capacity, the upside spray will now deliver five gigawatts across nearly 10 million square feet, making it one of the world's largest data center campuses, with Turner expanding scope. And in July, we also secured a landmark 1 gigawatt AI-optimized data center in Canada, which will see Turner working with Flatiron Trogados on a $13 billion Canadian project. Our strategy to expand the group's data center presence globally by leveraging our in-house expertise and geographical footprint continues advancing. During the period, we won a contract to build a 36-megawatt facility in Berlin valued at several hundred million euros to be delivered by an integrated team of active infrastructure internal through its European subsidiary donor. and we also secured major data center contracts in Asia with Lighting Asia awarded a contract by to deliver fit out works at a data center campus in Thailand. Furthermore, Octiv's plan to develop European network of sustainable edge data center is clearly moving forward with the construction of a facility in Hernd underway, making the fourth edge data center site to be developed in Germany. And just last Friday in the UK, Blackpool Council announced its intention to award HoCTIV another highly sustainable six megawatt data center project within the H category. The contract covers the data center's full lifecycle from design, construction, operations and financing with HoCTIV intending to invest equity and deploy a unique cloud platform to offer the UK high performance, security and local data sovereignty. Overall, we're increasing Our participation across the full AI stack includes significant new orders relating to semiconductor sectors such as a major quantum research-related project in Princeton, USA, an important manufacturing facility in Europe, the delivery of infrastructure to support the semiconductor industry in Dresden, and a program management role for a major facility in India. Another strategic growth market for Co-Active is energy, including nuclear. Rising investment in energy security and the global transition to low-carbon systems underpin sustained demand for advanced technology infrastructure. Global nuclear investment, for example, is expected to approach a cumulative $600 billion by 2040, or deliver essential infrastructure for major renewable energy projects that support economic growth, strengthen energy systems, and create sustainable outcomes. In early July, for example, Semigroup companies were selected to build a 179 megawatt wind farm in Western Australia for NEON, a project that supports the state's energy transition in growing demand for reliable, lower emissions power. This is UGL's 26th clean energy development and expands the group's renewable energy capability into wind generation. At the beginning of 2026, an important project milestone was achieved UNFOCTI was selected as part of Amentum's global project delivery team for the Rolls-Royce small modular reactors, NICLAR program, with strategic leadership in construction management. Our role builds on decades of experience in NICLAR and complex infrastructure, combined with our capability in modular assembly and delivering large, technically demanding projects with certainty. We welcome the recent selection of Rolls-Royce to deliver three SMRs in Sweden marking a significant step forward in Europe's energy transition. As part of the global delivery team, Hochti will continue supporting the company's SMR deployment across the UK and Europe. The group is also capitalizing on accelerating global requirements for critical minerals driven by clean energy technologies, digital infrastructure, and defense modernization. There is an estimated 500 to 600 billion in mining capital requirements to be met globally by 2040. Hochtief through the combined capabilities of Setsman and Thies has built a global position in minerals processing and sustainable mining services with a track record which spans over 630 engineering projects and studies. These include key commodities such as lithium, copper, rare earth, nickel, vanadium, uranium, and zinc. Central to our strategy in critical metals and minerals is Hochtief's 15% cornerstone investment in bulk energy, which earlier this year announced it had obtained the official permit for the commercial extraction of lithium at its Lionheart project. Hochtief has secured an end-to-end role in developing its lithium production and processing infrastructure. During the period, group company Setsman which is leading the development of our global critical minerals platform, expanding its North American footprint with the award of a feasibility study for North America's largest producer of hard rock lithium concentrate in Quebec. As well as a contract to deliver the front and engineering design for E3 Lithium's Clearwater project in Alberta, enabling the efficient and sustainable recovery of battery-grade lithium from brine resources. In addition, the group enhanced its presence in the Asia-Pacific region with the award of $400 million worth of contracts by the world's largest integrated zinc producer in India. Furthermore, TEAS secured three contracts across gold and critical minerals projects in Australia, reflecting the company's strength in technically complex underground environments. Public investment in defense infrastructure is said to have substantially increased and we expect an addressable market opportunity worth 80 billion euros annually by 2030. Hoctiv, which at the end of the first half of 26 had a defense order book of over 2.2 billion, is leveraging its strong civil engineering capabilities, proven price execution record, and long-standing presence across key defense markets. During the period, we awarded a major contract for the German Armed Forces Billion Euro-sized university campus in Hamburg. This collaborative 10-year project has an investment volume of several hundred million euros combined our end-to-end expertise in defense and education. In April, the group also won a joint venture project to modernize a military airport in the Czech Republic used by the country's Air Force and NATO allies. And earlier this year, a Flatiron Dragados-led joint venture secured a water storage facility, collaborative contract for the U.S. Army Corps of Engineers worth almost $700 million. Your data. For biopharma, health, education, social infrastructure competencies are key for the group's ability to fully harness global growth opportunities. Co-active leading position in the USA was recently highlighted with Turner named the nation's top Healthcare Construction Manager for the 25th time. During the first half of Turner JV, Turner JV was selected to provide construction services for a state-of-the-art cancer care facility to be built in Manhattan. And the company was also chosen to be part of the design-build team for a 590 million utility plant at the University of Kentucky. It's also noteworthy that several Turner projects have been in the global limelight in recent weeks. with five stadiums built or modernized by Turner hosting FIFA World Cup matches. The SoFi Stadium, for example, served as a flagship venue hosting group stage and knockout run matches and will welcome the world again as a venue for the 2028 Olympic Games. The group has been a global leader in transport and sustainable infrastructure for several decades. In the first half, for example, Flatiron Drug House was, for the first time, ranked number one in the North American transportation sector, Bainar. Recently, a joint venture led by the company was selected as the preferred proponent for the multi-billion US dollars expansion of the container capacity at the Port of Vancouver using a collaborative delivery model. In Q2, the Hochtief Consortium secured the next phase of the Prague Metro Line V for a total value of 1.23 billion. And in March, we all ordered a contract to design and expand a 26-kilometer section of the East Link railway line near Stockholm worth up to 900 million euros. Here in Germany, the 500 billion euros infrastructure fund is seeing its first four-year deployment and we're very well positioned to benefit due to the scalability of its business model and its core expertise in bridges, panels, rail, and transmission lines with the Group's German order book doubling over the last four years. The Group's leadership in PEPs was was also illustrated a few months ago when a co-active consortium was awarded a 200 million BEE project for the University of Southampton to build a 1,500 student accommodation unit facility in the UK and operate the mission-free facility over a 50-year period. As you are aware, capital allocation is a priority for management. We regularly assess strategic M&A opportunities with our capital deployment focused on our growth markets. In July, We announced the $1.2 billion acquisition of the remaining 40% interest in TEAS, returning the global mining services to full ownership. TEAS is a high-performing business with long-term contracts, strong cash flow, and a clear strategy aligned to the evolving needs of the resources sector. It is continuing to grow and diversify its commodities and services to support the energy transition, and is also pioneering new ways of working through advanced equipment and technology to enhance performance. Full ownership of TEAS supports our long-term growth strategy in critical minerals, providing our clients with a strong balance sheet in global capability. And also in July, we paid out around 500 million euros in dividends, a year-on-year increase of 26%, underlying our priority to remunerate Octif shareholders. Let me conclude by underlining how Octif is embracing the future by developing our leadership to support the growth markets. Our strong and expanding presence in these interconnected sectors is a key competitive advantage and underpins our long-term growth strategy. Combined with our strong balance sheets and backed by disciplined cash management, we have created the necessary conditions to pursue further growth opportunities and deliver value for all our stakeholders. Thank you. I'm ready now for your questions.

Yeah, we're ready to take questions now, operator. Thank you.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their telephone. You will hear a tune to confirm that you have entered in the queue. If you wish to remove yourself from the question queue, you may press star and two. For a questionnaire on the phone, I request to disable the loudspeaker mode while asking a question. Anyone who has a question may press star and one at this time. The first question comes from the line of Graham Hunt, From Jefferies, please go ahead, sir.

Yeah, thanks very much. I've just got two questions, if that's okay. First question, just on a couple of these large data center projects that you've mentioned that you're involved in in North America, the 5 gigawatt expansion by Meta in Louisiana and the 13 billion Canadian in Alberta, Can you just help us understand where you are with these projects in terms of the order book, how much is in or how much isn't in, and how we should think about the phasing of that. How long will it take to see all of that contract revenue? And the second question, just... You've mentioned this point about increasing self-perform capabilities, industrialized performance, and use of modularization a couple times now. And I think you've talked about adding bolt-on capabilities there, but we haven't seen anything yet. Is that something that's still in the pipeline? And how important is that to you, Juan, in terms of delivering on the growth opportunities that you see ahead? Do you need to Invest Capital to strengthen up the business in order to deliver the growth that you're seeing. Thank you.

Thank you, Graham. So let me start with the two data centers. Let me make a brief introduction so we understand the different numbers, right? So right now, when you look at Turner Working Hand, the only projects included in a 22 billion working hand from Turner are those that we have finalized the design, they are ordered, they are secured, they are signed, and we are working on the construction, right? So that's first 22 billion. As we always say, there's always bucket of projects that are secured, are given to us, who are working on the design, but until We do not sign the construction contract. They are not in our backlog. Or it's marginal, because it's only the engineers, right? So it's marginal. And right now, that bucket for Turner is around 20 billion. So we're talking about 42 billion projects in those two buckets. And there's a third bucket of projects that we haven't even... I mean... We haven't even started the engineering, and they're not in our working hand, okay? And that's our third bucket. So when we split, you know, let's jump into the two examples you mentioned. The first one is the Lucian, right? The ramp up from the two gigawatts to the five gigawatts. That additional expansion, it's around 50 billion, but out of which we believe that the data center themselves, removing GPUs, et cetera, et cetera, for the addressable market, It's around $27 billion, right? And we know that from the three construction companies that we used to know, it's up to two, one being Turner, right? We don't have any information yet of how those $27 billion approach will be distributed between us and the other party, right? So we don't know. We know there's a $27 billion address on the market, and we are choosing. But that figure is nowhere in the first bucket of 22 or the second bucket in 20. That would be part of a third bucket, right? Now let's get into the Canadian project. There's 11 billion in the Canadian project. Five billion approves are in the second bucket, in that 20 that I mentioned before. Not in the first one, the second that we already worked on the design, but not in the construction. And six are out of those two buckets, right? Sorry, I know it's a little confusing, but I hope it clarifies. Now, let's talk about self-performance. We believe that self-performance drives two things. The first one is margin. The second one is self-performance capabilities and obviously resilience, right? Because at the end of the day, it's important for us to be, little by little, or although we are going very fast, bringing all the critical capabilities within the projects inside the organization, right? So over the last four years, we have verticalized or in-sourced all engineering capabilities. We have a very, very strong strategy around modularization and prefabrication of data centers, but in general, Everything that is high-tech buildings, with a lot of facilities, biopharma, etc. But also, self-performance when it comes, whether on-site or in our workshops for the modular, all electricians and mechanicals and all the critical aspects on those. For all the reasons that I mentioned before, increases margin on one side, and second thing, it makes us more resilient. And also, allow us to be much more flexible in the future, Thank you very much. It's very helpful.

The next question comes from the line of Marcin Wojtal from Bank of America. Please go ahead.

Yes. Thank you for taking my questions. Firstly, it's on Turner and the profitability of Turner. I believe at the end of last year at the ACS, Capital Markets Day, there was a guidance provided of, I believe, 3.9% BDA margin. I already see that you are basically at 4.0 in H1. The question is really, is there still more to be gained at Turner when you think about the mix of projects, when you think about revenue growth? What is really the limit? Turner a few years ago used to be at a much, much, much lower level. You have achieved 4%, but can you go any further? My question number two, just coming back on the guidance upgrade, if you allow me, Is it just a mark-to-market really of 2026, performing better than expected, or it also in a way reflects your improved confidence in the outlook for 2027 and beyond? It would be very interesting to understand. And my last question, if you allow me, that would be on teeth. You now have full ownership of this subsidiary. Does it actually change anything in terms of governance, Thank you, Martin. So let me start with the first one. So you're right. I mean, we have a focus significantly on improving the margin of Turner over the years. And if you go back, you saw, I mean, from

from the less than 2.5% in 0.2 to 2.6%, 23, 3% in 24, 3.6% in 25, and right now the first half we are around 4% and that will continue to grow. In fact, all we're doing in modularization is the performance, source blue through the supply chain, XPL, everything is to make sure that we continue adding value to our projects and therefore increasing margins. So, yeah. Yes, we should see that growing. How much? I mean, it's something that we're looking at. We'll communicate once we have all the numbers, the projections, etc. But yes, we'll continue growing up that margin. We're quite confident on that. Very confident. Second, guidance. So you mentioned, is it market to market from the EU or We are very, very comfortable with the new orders. We are very comfortable with the backlog. We are very comfortable, and not only with Turner, that of course continues going very, very well, and the visibility that we have is very good. We are surprised. How confident and how much visibility we have in the data center market versus sometimes what the market is seeing. That's something that surprises us when people speak about CapEx being reduced, etc, etc. And in fact, when you go not just with how much we are growing our data center, but also when we look at the CapEx that is being approved by all our clients that continues growing and growing and increasing and the numbers continue being there, right? We do not see a slowdown in any way of any of the hyperscalers, right? I mean, Alphabet, I mean the 2026 CapEx, it's gonna be around 195 to 205 billion versus 180 to 190, right? And it's more than doubling the 91 billion from 25 Meta. 26 capex, 125, 145 from the 72 billion in 2025, right? Amazon, 200 billion in capex in 26, 132 in 25. Microsoft tracking more than 190 billion, which is 61% year-on-year, right? So we see all of that. We see our orders and then we see the skepticism in the market and we just get surprised, right? So yes, we're confident on 27 and 26. Third piece, Yes, it does change. It did change, I must say, when we acquired the first 10%. That's why we did what we did. And that was a significant change. And since then, we've been introducing changes in this. And I'm sure you're seeing already, or you will be seeing performance at CIMIC since a lot of those changes and cash flow is improving. And you will continue seeing that through 26. But right now, more importantly, we're being able In addition to a different governance, we're being able to get synergies on refinancings, for example. So if putting ahead 26, because I believe that for 26, it's a very slightly positive marginal acquisition, maybe around 15 million post-tax for this year, because it's net of many things and it's just second half of the year. But if you look at A full year like 2027. Let's say that you remove the dividend, and I'm going to talk about euros, not Aussie dollars, but just elimination of the leakage or the annual dividend for the other party, we gain 95 million, right? We gain another 15 million for refinancing benefits, which I just mentioned. And then there's around 30 million of financing cost post-tax linked to the purchase price payment. So just by doing what we've done, we get like 80 million earning acquisition annually from 2027 onwards. So that will give you a sense that there are synergies in that sense, right? Financial synergies. The first one you're able to see is the financing. But when it comes to governance, we are and we've been increasing productivity again, approaching, I mean, moving this into new metals, geographically spread. There are some things that we've been working since we got the 10% additional. is taking this, and you will be seeing that translating into similar results moving on. In fact, this revenue up was $130 million, I mean, from the $2.93 billion last year to $3.06, and there is strong performance in Mount Bless, in Lake Vermont, a back-upper that I can't think of right now. And this is offsetting some of the demobilization from Indonesia. but even EBITDA up 46.4 from 595 to 642, EBITDA margin at 21 versus 20. So we are seeing some, I mean, the consequences of some of our actions, but we will be continuing seeing more strong in the future.

The next question comes from the line of Dario Maione from BNP Paribas. Please go ahead.

Hi Juan and hi to Tim. I have three questions. One on TARNA in H1, if we look in USD, what was the revenue for data centers and the order intake again for data centers? Then more broadly about data centers, The market, of course, is worried about the bottlenecks to deliver the big pipeline of data center projects. For instance, connection to the grid or just not in my backyard. So local opposition against data centers. What are you seeing in this respect? Do you see these bottlenecks getting worse or how is Turner managing the situation? And then the third and last question is around the German business. We read in July that there were some changes to the administrative way to deploy the German infrastructure fund and simplify the process for some of these large projects. What are your thoughts? When would you expect the market to pick up in Germany even more? Thank you.

Okay, so starting with Turner. So the first half 2026 order book around 22 billion, which is an increase of 74% from last year. New orders of 13.5 billion, which is a 54% increase versus the first half. But if you look at the last 12 months, that represents 23 billion of new orders, which is an increase of 100%. So that on the figures. Now bottlenecks. There's bottlenecks in the market, and there's potential bottlenecks in the market, I will explain. And then there's a question about if Turner has bottlenecks, right? So Turner has, and these projects can act in different ways. From doing almost everything, engineering, I mean, EPCM manager, but engineering, but construction, self-performance, or modularization, the full scope, or just being An EPCM contractor, or I mean, have different functions, different abilities, right? And depending on what you do, obviously, you have more capacity or less capacity. As a general EPCM contractor, I would say that the capacity is unlimited, right? Because of the systems, because of people, because of management. And at the end of the day, the constraint is more on the market than on turnover. If we act in modularization and with the performance, yes, our capability is more limited, but we continue growing and growing very fast. And that's a good thing about our group. We have the ability to grow very, very, very fast because we do have huge ability because of the brand reputation, because of our scale, because of our diversification, because we're able to move people within states, between states, between countries, because we have strong programs of training, in different areas in South America that we can move from regions to regions and Asia-Pacific, right? And that affects not just data center, but everything, right? That's our biggest advantage. And I always say that. We can speak about a lot of advantages and capabilities and strengths of this group, but the first one is our geographical diversity in presence, right? Which I do not see any competitor getting close to any of that. from the US to Canada, South America, all Europe, all Asia Pacific, Australia, and all of that. So that's, I'm not concerned about Turner, but of course, depending on what aspects, right? Not sure, I mean, not the same doing the full motorization and self-performing everything than doing construction management, completely different activities. Now, let's talk about the market, because in the market, there's, I would say, two things that everyone is arguing right now or discussing. The first one is, let's talk about the states, right? A, what has happened in New York with the data center moratorium and there was an executive order signed on July the 14th, forcing all the large DC facility permits. What is going on? How that affects, right? So let's talk about that. The first thing is that 70% or over 70% of the US data center capacity is located in just 1% of the US counties, not states, counties. 1% in 31 counties in the US, right? So that's the most relevant, and that's basically, and that's basically Louisiana, Texas, Iowa, Ohio, Carolina, Georgia, Missouri, Virginia, Nebraska. And that's where Turner, has its biggest presence, and that's where we are getting most of our work, right? So, I mean, politics are not crazy. And we've seen that. If you are not exposed to data centers because you don't have data centers and you believe that people are complaining about data centers, it's very easy to put a moratorium because it doesn't affect you, right? So at the end of the day, Those data centers or the states really pushing forward data centers were not seeing those moratorium or not seeing some of those discussions extended. Different thing is for a particular project. And that's why when we talk about our hyperscalers, as part of that planning process, as part of the third bucket, as I said before, So I remind everyone, the first one, our backlog, price under construction. The second one, price awarded. We are moving forward with this one, start with engineering. But the third one, which is, let's talk, right? And then verbally, we know that it's going to happen or it's been announced. As part of that, we are always planning with three, four at the same time because of location, right? And as part of that location is about energy, water, politics, everything, right? Labor, everything's taken into account. So it's not about if the data center is going to happen or not. It's about when, how, where. It's all those are important discussions with hyperscalers, right? And the data center doesn't get canceled. It moves. And this is the beauty of everything. If we were a contractor just focused in one state, yes, I mean, whether it happens in that state or not, it's a big deal for us. But the fact that it can happen anywhere because the capacity is needed, that's what makes us strong. Because they know that if we work on six different ones, it doesn't matter where it's going to be, we will be able to deliver. And that's important. And that's why we participate in so many planning stages way in advance of the final award. because we do have that flexibility and we can analyze different states at the same time or different locations globally, et cetera, et cetera, because the capacity is needed. Then it's a question about where is the right location and of course, politics is part of that. Now let's talk about German infrastructure. So Germany is probably, it's gonna be one of our fastest and highest growth areas within the next months and years, right? We're quite comfortable with Germany. I think we are doing our homework in Germany. We're increasing our presence in Germany. I mean, certainly there's, of course, the 500 billion German 12-year infrastructure fund that we have spoken about it. The first year of deployment was this year. And we've seen investments for $120 billion 9 billion, not that revenue is happening right now, but investments being awarded this year for the next years versus the 75 billion last year. So there's a lot of acceleration of activity. There's areas about railway. I mean, you would focus on the traditional markets like railway, bridges, transmission lines. All of that is going to boom in Germany. We're seeing it, right? Energy.

Well, that's going to boom.

But also, if we look at the new high growth areas like data centers, et cetera, we're also seeing big growth in that area. Defense as well, et cetera. And that's why we continue growing our backlog. We continue seeing an increase in our profit.

Revenues are steady, but that's because of accounting, because we are accounting the JVs as corporations.

If we have more than 50%, we consolidate revenues. If we do not, it goes through equity consolidation. So that's why revenues are not, in the case of Germany, representative of the market. But if you look at the 2026 profit guidance in your English fraction, that it's Thank you very much.

The next question comes from the line of Luis Prieto from Kepler Chevroo. Please go ahead.

Good afternoon. Thanks for taking my questions. I have a couple of them, if I may. Juan, you just commented on the derating of Turner's US comps. I get the impression that the emerging debate is becoming more and more about the really long-term prospects for data center construction. I'm referring to more than 29, 2030, in the context of markedly demanding evaluations. What is your view on the situation? Are the long-term figures provided at the CMD last year still valid? I'm referring to, I think it was 208 gigs of global capacity by 2032. And the second question is that you have also commented on modularization and prefabrication. If the data center market ends up having less potential than initially envisaged, couldn't these fixed costs potentially erode your performance? Thank you.

Okay, so starting with the first one, it's a good question. We don't know why, I mean, It's true that what we're seeing is that there's some colo. I mean, a lot of the platforms doing colo or colocation of the cloud services, some of them are swaggering, right? And in our cases, they are not swaggering, but they are crossing with the level of debt because they have played so much that that starts to become a concern. So, I'm not sure if the percentage of exposure to some of those tier two or color platforms that our peers have.

I don't know.

What I can say is that from our perspective, most of our work is hyperscalers or platforms backed by hyperscalers, right? And we do that for a reason. But also on the development side, it's even more relevant, right? Because we We make sure that we want to secure the work with hyperskaters. But I do not know if there's any other thing that we're not, because as I said before, we look at our numbers and the talks, talking about the market, et cetera, et cetera, and we're not seeing any decrease in the activity around our centers. Now, in 2013, It's an excellent question, right? Because last year in November, we spoke about 20 billion revenues by 2030. And now we are doing 17 to 19 at Turner, 20 billion at the group. So we have already achieved that in 2026 versus 2030. Last time we updated, which was three months ago, we came up with a 30 billion number by 2030. But we haven't updated, right? We need to do some work on that number. So, but there's a need to continue updating numbers with what we're seeing. And then modularization. I mean, we want to make sure that our modularization and self-performance not only work for data centers, work for anything that is industrialized, high-tech buildings, right? Biopharma, biotechnology, semiconductor fabs, manufacturing, life science, We are working, we are being very specific about that, right? And we are not, we and we will be able in the capital markets at the end of the year, we are using most of our workshops to lead organically. The ones we have to make sure that we transform them into a lot of these, right? So we are not crazy about the numbers we're doing in a way that is under control. So, I mean, we're quite comfortable with the plan. What we want to do inorganically is to acquire additional engineering capabilities, things that work not just for data centers, but for all the sectors, everything that is high-tech. So, in other words, we are comfortable with the strategy.

Excellent. Thank you very much.

The next question comes from the line of Jose Manuel Arroyas from Santander. Please go ahead.

Thank you. I have two questions. The first is on partner and the business model. I wanted to ask you, Juan, what happens when you identify price pressure in the supply chain and I wanted to query you about the relationship that Turner has with its end clients and subcontractors. What is the exact percentage of the contracts that have cost plus clauses and to what extent can Turner pass on the higher price of components to the clients? And my second question is again on Germany. I wanted to ask you if you could give us a value for the current share of orders that the ENC business in Germany can confidently and unequivocally attribute to the German stimulus plans today.

Okay, so starting with Turner.

So, I mean, and thank you, José Manuel, for the question. So starting with Turner, at the end of the day, I come back to my previous discussion around how we plan for this project, right? So when we plan for this project and we help our clients, we are working on three, four potential projects at the same time, right? And we look at everything from energy to permitting, environmental, labor access, political issues that could affect in any way the construction or people against it, and also cost, right? And when we look at the cost, we analyze everything, open book, putting everything on the table, different ways to do it, modularization, unmodularization, management, labor on-site, off-site, because we're also looking, at the end of the day, everything's about, for them, time to market and quality, time to market and quality, right? Of course, there's a cost factor, and we're wrong, but time to market and quality is very important. So when we work with them, and we finally... All of that is built in and it's transferred to the client and the client sees it, it's open book and makes the decision based on that. So all our contracts are done in that way. Then Germany. Germany, if you are asking specifically about what percentage, because when you look at the backlog in Germany, of that backlog, how much is addressed to the stimulus plan? I would say that at this stage, not much. We know that it's coming. It's going very slow because a lot of that has been given to Deutsche Bank, to Autobahn, to defense, so they can launch their processes. And they are talking about declines. And there could be, what I'm saying, not that much. I mean, let me see if I have some of those figures. But of the $4.3 billion that I think we have backlogged first half of 26, I would say that $1. Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to the company for any closing remarks. Just to say thank you once again for your time today, for your support. I'm looking forward to any follow-up questions that you might have. Feel free to contact at any time. Thank you so much.