Metso Outotec Corp

Good afternoon, good morning everyone. This is Juha from Metsos Investor Relations and warm welcome to our first quarter 26 results conference call where we have our president and CEO Sami Takaloama and CFO Pasi Kykling briefing you about the results. Sami will start with some of the highlights and then Pasi will walk you through financials and cash flows in more detail and after that we are taking your questions. Before we start, a couple of reminders. First of all, we will have our forward-looking statements disclaimer in the presentation deck. And today is our AGM, so it's a busy day, and that's why we are going to limit this call to 50 minutes. So please take that into account and ask as briefly as you can. We would appreciate that. With these words, Sami, over to you.

Thank you Juha and good afternoon also from my behalf to everybody. Let's go through the Q1 performance. In a nutshell, strong orders and delivered solid margin during the first quarter of this year. Our orders received amounted 1,555,000,000 This is 6% growth year on year and in organic constant currencies it's 10%. Sales was 1,252,000,000 and this was also growth from last year 3% or in organic constant currencies 5%. Adjusted EBITDA 203,000,000. Growth 5% year on year and representing 16.2 margin relatively. Operating cash flow for the quarter was 78 million and in the rolling 12 months it's representing 856 million of operating cash flow. So I said the order intake for the year was strong and kicked off our year very well and nicely. Our book to bill for the period is 1.24. Improvement from the last year when it was 1.21. Order growth was strongest in the aggregates equipment and minerals aftermarket. Our backlog went up by 6% and this was heavily driven by the aftermarket in our backlog now. Sales growth that we delivered that was mainly led by the minerals equipment where we continued to finish the projects and minerals segment was the main contributor to adjusted EBITDA growth that we delivered in Q1. Our strategy we go beyond that we launched Q4 last year and now under execution it is focusing on the high value growth elements. We are doing the investment in a rubber products plant in China. During the period we also completed the acquisition of MRA Automation, Australian based automation and software company. And one I really want to highlight here is the partnership with Lösch and we are introducing the vertical roller mill dry grinding technology, groundbreaking with a very energy efficient way of doing the grinding in the future. Completion of our divestments, both the ferros and our loading and holding businesses, they were completed as planned during the period and creating further strength for our strategy execution, focusing on the right topics. We have also completed the ERP renewal project. Rollout is done. We have now state-of-the-art software in use for the whole company the same way. And the next phase is then to get the benefits of this investment in the coming quarters and years ahead of us. And also want to highlight that record high engagement score and also noteworthy the active co-creation that is strengthening the growth culture that we have. We are measuring the employee engagement four times a year and it was a pleasure to see the all-time high scores now in the Q1 round. Regarding the outlook, we keep the outlook unchanged. We do see the market as a positive, meaning that it stays in the stable good activity level. Market activity in both minerals and aggregates are expected to remain at the current level. And I want to highlight also in this statement as well that the geopolitical turbulence would potentially affect the global economic growth and therefore also the market activity in our segments. And now if I give the microphone to Pasi to walk through the financials and the cash flow topics.

Thank you Sami and good day everyone also on my behalf. Let's start by looking at our orders and revenue development. Order intake at 1,555,000,000 representing 6% year-on-year growth or 10% growth in constant currencies. The equipment side of the business grew 8% or 12% in constant currencies and aftermarket orders by 4% or 8% in constant currencies. And the order performance was especially good in aggregate capital side and then minerals aftermarket business. Aftermarket part of the overall orders was 66%. In this quarter, we also won the 100 million greenfield copper project in Peru. And in the comparison period, we had 60 million order from Almaluk project in Uzbekistan included. The order book at the end of Q1 totaled to 3.6 billion. It's roughly 6% up year on year, and all that increase comes from minerals aftermarket business. Then our revenue at 1,252,000,000 was 3% up or 5% in constant currencies and it was driven by equipment after market was 1% down and after market represented 55% of our sales. Let's then look at our EBITDA development and earnings per share. Our EBITDA increased to 203 million euros and then from margin point of view the increase was 0.3 margin points from 15.9 to 16.2. The higher volumes contributed with 13 million in a positive way and the gross margin increased by 25 million or by two margin points. Then on the headwind side we have increase in our SG&A by 12 million. And then under other items, it's primarily currency, where we had last year some tailwind and this year some headwind. And this relates primarily to hedges that we don't hedge account and we need to market at the end of each quarter. Overall in Q1, both equipment businesses in aggregates and in minerals continue to deliver healthy margin levels. Then EPS is unchanged from a year ago at 14 euro cents. If we then move to our cash flow and cash flow from operations was lower than in comparison period at 78 million. This was mainly due to inventory build up and timing of the cash flows in our mineral capital project deliveries. In inventory it's primarily work in progress inventory and it is in both aggregate capital and then minerals of the market. In minerals aftermarket, it is especially upgrades and modernizations where we have had good order intake during last year and are now in the middle of delivering many of those activities. In aggregates, aggregates capital is more seasonal. We are preparing for the stronger equipment delivery season during the European or Northern Hemisphere summer period. Looking at the rolling 12-month cash flow from operations and then the cash conversion, we continue to be at a healthy level and we expect to deliver also healthy cash flow throughout the 2026. If we then move to our balance sheet, and balance sheet continues to be strong and supports fully our strategy execution. Net debt to EBITDA is unchanged at 1.2 times. We continue to have BAA2 long-term credit rating with positive outlook from Moody's. And that continues to be a good support for us while we execute our strategy. Let's then look at our segments and start with aggregates where we have all time high order intake at 440 million. And it's noteworthy that in this order intake, we see a clear pattern that some of the orders are placed not only for the second quarter, but also for the second half of the year. So sort of a pre-buying phenomena visible in that regard. The equipment orders represent 20% growth and aftermarket is 14% down. Regarding the aftermarket development, I just want to highlight that we have done a minor adjustment in our presentation between capital and aftermarket when it comes to screens. And that has a slight negative impact on the reported growth numbers in the aftermarket part, both in orders and revenue. and we have not adjusted the comparison barriers. Then EBITDA in aggregates was 1 million down at 48 million with solid 16% margin and continued healthy margins in the equipment side of the business. If we then look at our minerals there, the orders increased by 5% or 8% in constant currencies to slightly above 1.1 billion. Equipment orders were flat or 3% up in constant currencies. And again, just want to highlight the major order that we won from Southern Peru Copper Corporation regarding their greenfield copper project in Peru. small and medium size orders were at good level and in average at the same level that we had during 2025. Then aftermarket orders increased 7% in reported currencies or reported numbers and 10% in constant currencies. And the upgrade and modernization part of the business from other point of view is up 14% year on year. So we continue to see a very healthy development there. And then spares and consumables are supported by the good high utilization in our existing customer minds. Aftermarket share of the total orders was 66%. Then sales increased 5% to 953 million, representing 6% organic growth. We had 3% currency impact and then also 2% positive impact from acquisitions that were concluded after the previous period. Equipment sales up 14% and aftermarket up 1%. And again, we continue to have a very strong order backlog when it comes to aftermarket and expect that to deliver also revenues during the coming quarters. Adjusted EBITDA at 168 million with solid 17.6% margin and this was supported by overall sales increase and then healthy profitability in our equipment part of the minerals business. With that I would like to hand back to Sami to summarize our quarter.