Siemens Energy Ag

A recording of the webcast will be available shortly after the close of the call. Thank you. Thank you for watching! Please stand by. We're about to begin. Good morning, ladies and gentlemen, and welcome to the Siemens Energy's Q3 fiscal year 2026 analyst call. As a reminder, this call is being recorded. Before we begin, I would like to draw your attention to the safe harbor statement on page two of the Siemens Energy presentation. This conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are therefore subject to certain risks and uncertainties. At this time, I would like to turn the call over to your host today, Mr. Tobias Hang. Please go ahead, sir.

Thank you so much, Moritz. Good morning and a warm welcome to the Siemens Energy Q3 Results Analyst Call for Fiske Year 2026. We publish our Q3 Fiske Year 2026 results Christian and Maria will take you through the major developments during Q3 FISCI year 2026. This will take approximately 30 minutes. Thereafter, Christian and Maria are available to answer your questions. For the entire conference call, we have allowed one hour.

Christian, over to you. Thank you, Tobias, and good morning, everyone, and thank you for joining us today. Siemens Energy delivered another outstanding quarter with record orders, record revenue, and further margin expansion. I'm very, very proud of the Siemens Energy team, our team Purple, which is converting the strong demand environment into profitable growth, cash generation, and sustainable value creation. Special achievement this quarter. After 15 quarters, Siemens Gamesa has closed a profitable quarter. And there are the three messages I would like you to take away from today's presentation. First, the structural drivers behind our markets remain firmly intact. Second, our pricing discipline and project selectivity support profitable growth. And third, our capacity expansion projects are executed as planned. Allowing us to successfully convert our backlog into higher revenue and earnings. Our investment case is increasingly benefiting from the next phase of value creation. Stronger earnings, cash generation and shareholder returns supported by our growing backlog, capacity investments and structural market growth. The question is not only how strongly these markets grow, but also how effectively we translate these opportunities Thank you very much. The investments in capacity expansions and operational improvements over the past years are really translating into tangible revenue growth and improved financial performance. Profitability strengthened considerably. Profit before special items more than tripled year over year and the margin before special items reached 14.2%. And this reflects the improving earnings quality and operational leverage we are building across the portfolio. As a result, basic earnings per share rose to €1.28 from €0.71 in the prior year quarter, reflecting the significant improvement in profitability and the value we are creating for our shareholders. As mentioned, I am very proud of the progress that Siemens Gamesa has achieved. For the first time since the fourth quarter of fiscal year 2022, Siemens Gamesa delivered a positive quarterly result. And this is an important milestone and is based on the tremendous efforts of the entire team. While we remain focused on the work ahead, this achievement clearly demonstrates that the turnaround measures are delivering tangible results and breakeven for the full fiscal year is firmly on track. And cash generation remains robust. Year-to-date, free cash flow pre-tax reached approximately 7.2 billion euros, reflecting disciplined operational execution and working capital management. This robust cash generation provides significant financial flexibility and enables us to translate operational success into tangible value for our shareholders. Execution of the second 1 billion euro share buyback tranche is progressing well and is nearing completion. Together with the first 2 billion euro tranche and our dividend policy of distributing 40 to 60 percent of net income attributable to Siemens Energy shareholders, this underscores our commitment to attractive and sustainable shareholder distributions. Including the dividend paid earlier this year for fiscal year 2025, we remain on track to return up to 3.6 billion euros to shareholders during fiscal year 2026. Based on our performance in the continued favorable market environment, we reaffirm our fiscal year 2026 outlook with profitability trending towards the upper end of our guided 10-12% profit margin before special items. Before turning to the market environment, let me briefly address one strategic milestone that also supports the next phase of our journey. Siemens Energy has started preparations for its transition to an independent brand, and going forward Siemens Energy and Siemens Camista Renewable Energy will be united under a single name and brand identity. The name will be Omterra and the transition will begin later this calendar year and will be implemented in phases and currently the existing license agreement remains in place. Let me now turn to our capacity expansion program, which continues to progress according to plan and is increasingly translating into revenue and financial performance. The investments we have made over the past several years are coming into operational execution with additional capacity brought online, and we are seeing a growing contribution to revenue, especially in the second half of fiscal year 2026 and beyond. Starting with gas services, we successfully brought additional medium-sized gas turbine capacity online during the quarter. And this is an important milestone, increasing annual production capacity from around 50 units in fiscal year 2025 to approximately 80 units this year and further expansion planned over the coming years, as we had shown in our last year's capital expansion. The key advantage of products The additional capacity enables us to capture this growing demand while maintaining the same disciplined approach to project selection and execution. And at the same time, our large gas turbine expansion program continues to be fully on track and will begin Contributing from fiscal year 2027 onwards. It provides sufficient flexibility to support the demand outlook we have today. Equally important, every gas turbine installed today creates long-term service with substantial business opportunity in maintenance, upgrades and operational support throughout their lifetime. and as a result, the capacity investments we are making today not only support equipment revenue growth but also expand the installed base that will drive recurring service revenues for many years to come. Turning to grid technologies, we are executing our capacity expansion program across multiple product areas and the first meaningful brownfield expansions are now coming online, adding capacity for products such as large power transformers and Gas Insulated Switchgear. We continue to execute successfully the brownfield and greenfield expansion projects which we announced on the Capital Market Day to further expand our manufacturing footprint through the end of the decade. The increased capacity is needed to reflect the high level of demand visibility we experience across our markets. And based on the increased capacity, the revenue growth in the relevant business continues to accelerate and grid technologies delivered another significant step up in revenue during the third quarter. In short, the capacity we are adding today enables us to capture the market opportunities ahead of us. And let me now turn to the market environment. The overall demand environment remains very robust across our key markets and regions. And while the Americas was again a major growth driver led by the United States, Momentum was also solid in the other regions and I am satisfied with the balance of our project portfolio. In Europe, demand remains supported by structural trends such as grid expansion, electrification and energy security. And looking specifically at Europe, prior year order intake benefited from several large offshore wind awards. In contrast, and as discussed previously, we still expect a number of major offshore projects to shift into fiscal year 2027, In gas services, market demand is still exceptionally strong. We booked 15 gigawatt of orders during the quarter, including conversion of previously signed reservation agreements into firm customer orders. Demand is being driven by the need for reliable and dispatchable power generation in the United States. As well as by large combined cycle and independent power producer projects in the Middle East and Asia. In the Middle East we see several countries investing further in additional generation capacity to strengthen security of supply. It is important to remember that the conventional power market is our primary growth driver. It represents the largest share of our backlog and benefits from strong structural demand driven by electrification, Rising electricity consumption and the need for reliable baseload and dispatchable capacity. At the same time, our visibility is improving. Our backlog, slot reservation agreements, and project pipeline provide a clear line of sight well beyond the current fiscal year. Following the shipment of 6 GW during the quarter, our committed customer volume stands at historically high levels. And while order intake might fluctuate, From quarter to quarter, as we expected for quarter four, my view remains unchanged. The project pipeline for fiscal year 2027 looks very promising. Pricing remains attractive, and at the same time, we prioritize value over volume, maintaining strict project selectivity and pricing discipline. This supports the quality of our backlog and lays the foundation for further sustainable margin expansion. As our service business is expected to make a larger contribution to profitability over time. Turning to grid technologies, the market environment remains equally compelling. Auto momentum during the quarter was driven by the product business, primarily large power transformers, and demand related to data center infrastructure remained healthy and additional brownfield capacity investments supported further revenue growth. Regionally, growth was primarily driven by Europe and North America. Grid Technologies is really getting an execution machine. The business combines structural demand, improving margins, enhanced cash generation, and exceptionally backlogged visibility. So, the overall message is straightforward. Demand across our key end markets remains robust, and the underlying growth drivers are structural rather than cyclical. and our focus remains on converting this opportunity into profitable growth, stronger cash generation and long-term shareholder value creation. And with that, let me hand over to Maria for the financial review.