Spie Sa U/Adr

Good morning, everyone, and thank you for joining us today for our nine-month revenue call. I'm with Jérôme Vanhove, our Group CFO, and Alexandra Bournazel, our Head of Investor Relations. SPEE delivered a very strong performance in the first nine months of 2026 with accelerating organic growth and M&A contribution culminating in an exceptional third quarter. We successfully executed our bolt-on acquisition strategy further strengthening our high value technical service offering and our local footprint across Europe. Despite an increasingly volatile macroeconomic and political environment, we continue to benefit from powerful long-term drivers and remain focused on the most attractive growth segments in our markets. To begin, I would like to share a few recent contract examples that reflect our strong positioning. Let's start with Germany. In Germany, SPIE is modernizing the electrical and control systems at Block 4 of Uniper's Staudinger power station, a critical asset for grid stability and security of supply in the Rhein-Main region. This project showcases SPIE's expertise in modernizing critical power infrastructure while maintaining plant operations throughout the project. Importantly, The upgrade will also lay the foundations of the site's transition towards low carbon technologies and greater grid flexibility. With the acquisition of SGS, we have now even the capabilities to deliver the installation of the full technical scope of a gas-fired power plant, further strengthening our positioning as Germany will deploy new gas-fired generation capacities. Moving to France. In France, SPIE Building Solutions is supporting the transformation of a critical data center for the French Customs Administration, combining our climate and electrical engineering expertise to make it both more energy efficient and more resilient. The project targets the power usage effectiveness of below 1.33, which would make the data center one of the most energy efficient of its kind in France, while ensuring continuity of operations throughout the transformation. This is a good illustration of how SPIE combines technical expertise and environmental performance to support the energy transition of data centers, the strategic market for the SPIE Group. In the Netherlands, SPIE has been awarded a contract by the municipality of Zwolle for the electrical and mechanical maintenance of 14 movable bridges. The agreement took effect in July 2026 for an initial term of two and a half years with options for three one-year extensions. By combining electrical and mechanical expertise SPIE provides an integrated approach to enhance the reliability, safety, and durability of this critical infrastructure. In Poland, SPIE Energy Poland has been selected to lead the consortium in order to deliver the first section of a strategic 400 kV transmission line. Our scope covers around 50 kilometers of the 125 kilometer line which will help connect Baltic Sea offshore wind farms to Poland's national power grid. These offshore wind farms are expected to reach a combined capacity of close to 18 gigawatts, making grid infrastructure a key enabler of Poland's energy transition. Our installation work has already been started in H2 with completion targeted for 2029. This project is a strong illustration of the growth opportunities we see in high voltage, particularly around grid expansion and the integration of renewable energy in Poland. Now moving to the key nine-month takeaways. Revenue growth was up plus 7%, including 2.3% organic growth and a 4.8% contribution from bolt-on acquisitions. Organic growth accelerated throughout the period and reached an exceptional plus 4.7% in Q3. The contribution from Boldon acquisitions also accelerated, reaching €362 million, including four months of contribution from Rova in Germany as the largest contributor. Based on this very strong performance, we confirm our full year 2026 guidance. Regarding the key financial highlights, overall revenue over the first nine months reached 8 billion and 43 million euros. Just in the third quarter, revenue was up plus 13.7%, including plus 4.7% organic growth. This is a very clear acceleration compared with 1.2% in the first half. We also continue to successfully execute our bolt-on acquisition strategy. Since the beginning of the year, we have announced seven acquisitions representing close to 800 million euros of annual revenue, including SRR Anlagenbau, which we announced last Wednesday. Looking now at the performance by geography, at constant exchange rates, revenue grew 7% over the first nine months with organic growth led by Northwestern Europe and Germany. Germany grew by 10.4% supported notably by ROFA integration and a high level of activity in Q3 underpinned by strong structural demand. Northwestern Europe grew by 6.3% with an outstanding organic growth of plus 12.5% in Q3. Central Europe grew by 15.1%, driven by sustained M&A activity, notably the integration of Block Group. France grew by plus 1.6%, with plus 0.3% organic growth in Q3, confirming that Q2 marked the trough. Global Services Energy benefited from the integration of Wall-E power services, while oil and gas activities remained impacted by challenging market conditions. Overall, this performance once again demonstrates the strength and balance of our decentralized multi-technical model. Looking now deeper into the geographies and starting with Germany. Germany delivered a strong performance over the first nine months. For high voltage and city networks and grids, following the catch-up of the weather-related disruptions at the beginning of the year, momentum remained strong in electrical transmission and distribution networks. Also, the high voltage order backlog is at a record high level. Technical facility management really stood out with excellent contract retention, new contract wins, and growing demand for energy efficiency and decarbonization solution. Building solutions remain supported by data centers, defense and tunnel infrastructure. Industry services delivered solid growth while ICS continued to strengthen its position in cybersecurity. External growth contributed 7.7%, mainly reflecting four months of ROFA alongside the 2025 acquisitions. Moving to France. In France, organic growth of plus 0.3% in Q3 confirmed that Q2 marked the trough, reflecting a resilient level of activity over the first nine months. Four of our six divisions continue to perform well in terms of growth. Technical facility management remained a key growth engine with a ramp-up of several nationwide multi-year contracts. Industry remained robust, supported by energy transition projects, notably solar-voltaic power plants and battery energy storage systems. ICS maintained solid growth while nuclear services posted a very strong performance. Growth remained constrained in city networks as fiber rollout programs gradually come to an end and activity shifts towards recurring maintenance. In building solutions, revenues still contracting while we see encouraging order intake, notably in data centers, healthcare facilities, and defense. Finally, the Artemis acquisition contributed 2% to revenue growth over the period. Northwestern Europe. Northwestern Europe delivered an outstanding performance in Q3, with organic growth accelerating plus 12.5%, bringing nine months organic growth 5.3%. In the Netherlands, this sharp acceleration was mainly driven by high voltage, as several substations and transmission line projects entered intense execution phases. Building solutions also contributed strongly in Q3 as several projects moved into production. ICS maintained good momentum supported by data centers while industry services remained resilient with electrification and high-tech manufacturing offsetting weaker petrochemical activity. In Belgium, performance was again very strong, driven by high voltage and battery energy storage systems despite the demanding comparison base in 2025. Finally, acquisitions contributed 1.3% to revenue growth reflecting the 2025 acquisitions of Rovitec and Wurzendonkel. Moving to Central Europe. Central Europe delivered a strong organic growth of 5.8% in Q3 despite a demanding comparison base of close to 10% in Q3 2025, bringing nine months organic growth to 1.9%. This performance still partly benefited from the catch-up following the adverse weather conditions at the beginning of the year. Just a few highlights. In Poland and Slovakia, high voltage continued to benefit from grid expansion and energy transition investments, as illustrated by the Polish transmission line project presented earlier. In Austria, growth remains supported by tunnel infrastructure and battery energy storage systems. The order book continued to build, providing strong visibility across the region. Finally, acquisitions made a significant 12% contribution to growth, notably Block Group in the Czech Republic. Global services energy. remained under pressure, with organic growth of minus 6.7% recorded over the first nine months. In oil and gas, market conditions are becoming more challenging, particularly in sub-Saharan Africa, where increasing local competition is reinforcing our disciplined and selective commercial approach. In the Middle East, activity was disrupted in certain areas following the outbreak of the conflict with Iran. This situation continues to be monitored closely. At the same time, Worley Power Services contributed plus 8% to revenue growth over the first nine months. Its integration is strengthening our positioning and power generation, particularly in wind, battery energy storage systems, and solar voltaic. Now I come to a highlight. You are now very familiar with our share for you. Our annual employee shareholding plan, which we launched during Q3. This new plan was the 10th edition and proved once again a great success. More than 27,000 employees from 18 countries subscribed, including more than 6,000 first time investors. Following this plan, employees, including management, are invested to hold around 9.2% compared with 8.4% at the end of H1 2026. Involving our employees in the SPIE entrepreneurial adventure is very important to us and a key factor of our success. Final results will be announced in December and we will renew our anti-dilutive share buyback program in early 2027. Now, I hand over to Jérôme.

Thank you, Markus, and good morning, everyone. I will start with our revenue bridge, which provides a breakdown of our 7% revenue increase over the first nine months of the year. As already pointed out, organic growth contributed 2.3%, accelerating throughout the period to reach an exceptional 4.7% in the third quarter. This partially reflected intensive execution in north-western Europe this quarter, where organic growth reached 12.5%. Our bolt-on acquisitions contributed 4.8%, or the equivalent of €362 million revenue, mainly reflecting on the one hand the acquisitions completed in 2026, notably the four-month contribution of HOFA in Germany, and on the other hand the acquisitions completed in 2025. The SGS acquisition was completed in September 2026 and did not contribute to the nine months revenue presented today. It will start to contribute from the fourth quarter onwards. As already mentioned in previous quarters, the internal transfer of former Robur non-German operations were neutral at group level. This was transferred to global service energy and Central Europe to a lower extent. Finally, minor disposals of non-strategic activities, including a small elevator business in the Netherlands and a residential building solution activity in France, which altogether had very limited impact of minus 0.1%. Foreign exchange had a limited negative impact of minus 0.1%, mainly reflecting movement in the EURUSD exchange rate. Moving to M&A, let me now turn to the Bolton M&A activity where we continue to deliver strong execution in Q3. We announced seven acquisitions since the beginning of the year, representing close to 800 million euros of annual revenue and further strengthening our technical capabilities and local footprint across Europe. Germany accounted for the largest part of this activity, namely with ROFA and SGS, significantly scaling up our industrial activities and platform in our largest market. We also continue to expand our footprint in Central Europe through targeted acquisitions in Czech Republic, Slovakia and Switzerland. But the momentum continued in Q3 with two further acquisitions. Closer in France strengthens our position in industrial maintenance and high-power electrical installations, bringing around 100 employees with long-standing expertise in aluminium production and processing. And most recently, as announced on the last Wednesday, SAR and Langenbau announced yesterday then, further expands our exposure to attractive infrastructure and industrial automation markets in Austria and Germany, bringing around 230 highly skilled employees to the group. The integration of all our acquisitions is progressing well and in line with this plan, while our pipeline remains active and well diversified across highly fragmented markets. As our acquisitions are self-financed, we remain firmly focused on maintaining a sound leverage profile in line with our financial policy. And maintaining this financial discipline also means proactively managing our debt maturities and our level of liquidity on the balance sheet. This leads us to the successful refinancing of our 400 million euro Ornan convertible bond due in January 2028. As such, in September, We successfully placed a sustainability-linked bond of 500 million euros with a 5.5-year maturity and associated to a coupon of 478%. Despite the challenging debt environment, this operation reflects strong investor demand and our continued access to debt capital markets. The use of proceeds was mainly dedicated to the refinancing of our Ornan. To this extent, we first launched a repurchase invitation in cash and then we exercised the issuer's soft call fully in shares for the balancing amount. In total, and as a consequence, 400 million euros of outstanding Ornans were redeemed in cash and around 3.5 million new shares were issued. This represents a final dilution of 2% with an underlying average conversion share price of around €43.80. This refinancing extends our debt maturity profile now until March 2032. As of today, 100% of our debt remains sustainability linked and our liquidity permanently exceeding €1.5 billion. This provides ample financial flexibility to support our development strategy, notably our Bolton M&A strategy. Thank you for your attention. I now hand back to Markus.

Thank you, Jérôme. Let me now move to our outlook for 2026. Based on this very strong performance, we are pleased to reaffirm our 2026 outlook. We expect a strong total growth driven by further organic growth and active Bodon M&A. We expect continued expansion of our EBITDA margin. Finally, as every year, We intend to maintain a dividend payout of around 40% of adjusted net income. Thank you very much for your attention this morning. And as we like to say at SPIE, it remains a great time to be a European electrical engineer. With Jérôme, we are now ready to take your questions.