Spie Sa Ord

Welcome to the SPEE 2025 Full Year Results Conference Call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five. Chairman and CEO and Jerome Van Hove, Group CFO, please go ahead.

Good morning, everyone. Thank you for joining us today for our full year results. I'm with Jérôme Branot, our Group CFO, and Alexandre Bonazel, our Head of Investor Relations. In 2025, we recorded a high-quality performance with outstanding cash generation. It does illustrate once again the strength and agility of our model, the relevance of our strategy, and the quality of our execution. We are well ahead on our EBITDA margin trajectory, and we are upgrading our 2028 margin ambition accordingly. To begin, I would like to share a few recent contract examples that reflect our strong positioning. In Germany, we have been awarded three new substation contracts in Baden-Württemberg, supporting Netzebewe's grid expansion plan. It is based on a long and trusted partnership with more than 70 projects delivered together since 2006. At General Contractors, SPIE will oversee the full project scope from planning to commissioning. These projects will enhance grid reliability and support the integration of renewable energy fully in line with Germany's energy transition priorities. This award represents SPIE's ability to deliver end-to-end grid infrastructure projects and its contribution to modernizing Europe's power networks. In France, SPIE is strengthening its long-standing partnership with Bouygues Telecom for the operation and maintenance of its national data center network. This new contract builds on 15 years of collaboration and covers mission-critical services across Bouygues Telecom's historic data center sites in the Paris region. from high and low-voltage power systems to generators, inverters, ventilation, and air conditioning. SPI is also expanding its support to a wider footprint, with the assignment now extended to additional sites reflecting big-tech constructs in SPI facilities' operational capabilities. And this contract underscores SPI's ability to run critical digital infrastructure at scale, while supporting both performance and decarbonization objectives. On page 6, SPI has signed a European Framework Agreement with Tesla for the development of battery energy storage systems, building on existing collaborations in Belgium, the Netherlands, and France. This renewable three-year agreement applies to SPI subsidiaries across Europe with BS installation expertise and will support further expansion in Europe, notably in Poland and Germany. SPIE will deliver high-value-added services for Tesla and Megapack projects, including engineering, balance of plant works, grid connection, and commissioning. This agreement highlights SPIE's ability to deliver standardized multi-country execution in fast-growing energy infrastructure segments. And now to global services energy. SPIE is reaching a new milestone in offshore wind with a major contract on Dogger Bank. set to become the world's largest offshore wind farm. Through its subsidiary SP WindConnect, the group will carry out the full termination and testing of the inter-air cables on the final stage of the project on behalf of DEME. Once operational, Dogger Bank will be capable of supplying renewable electricity to around 6 million UK homes. This project showcases SP's ability to deliver highly complex offshore energy infrastructure and reinforces its role in accelerating the energy transition. Now moving on to the key takeaway. The total revenue grew by a solid 4.8%. Our EBITDA margin reached a record 7.6%, a new step-up of 40 basis points driven by pricing power, selectivity, operational excellence, and accretive acquisitions. Free cash flow was outstanding at 424 million euros underpinned by best-in-class working capital management and 108 cash conversions well above our 100% target. Bolton M&A activity remained active with 9 acquisitions in 2025. And we also have done a very dynamic start to 2026 with the signing of an agreement to acquire Rofa Industrial AG a strategic step-up in industrial services in Germany. Finally, we reaffirmed our sustainability leadership with 50% of revenue aligned with EU taxonomy, which is the number one position within the SBF 120. So, on page 9, let's take a closer look at our main financial KPIs. I'm pleased to report that revenue was well above the €10 billion mark as announced in our 2025 guidance. The 5% constant FX growth was well-balanced between a 3.2% contribution from acquisition and a 2% organic growth. EBITDA was close to €800 million, up 11.4%, with a further 40 basis points step-up in margin after the 50 basis points increase in 2024. The outstanding free cash flow reached 524 million euros, bringing leverage down to 1.3. Bolton M&A was sustained with the nine acquisitions we have concluded, representing 347 million euros in annual revenue. And finally, our adjusted net income grew by 9%, and we will recommend a dividend of 1 euro and 8 cents per share, up 8%. Looking at the top-line growth on page 10, at constant exchange rates, revenue grew by 5%, driven by two segments. Germany, which continued to deliver a very high growth of 10.3%, well-balanced between organic growth at 5.3% and the contribution from acquisitions at 5%. Northwestern Europe, which also performed strongly, with revenue up 5.1%, driven by a 4.3% organic growth. Meanwhile, France maintained a steady level of resilience against a muted economic backdrop, with a slight 0.8% revenue contraction. Central Europe increased sharply by 13.6%, mainly driven by a 12.1% contribution from acquisition, while organic was at a robust 1.5%. Global Services Energy was down 4.4%. This reflected a more selective approach as well as the levelling off following an exceptional H1-2024 which benefited from a one-off shutdown maintenance contract. Overall, its performance underscores the strength and balance of our multi-local, multi-technical model. Looking at acquisitions, the nine acquisition competencies here were well-balanced across our European footprint. Together, they had 343 million of annual revenue. Just to mention the most recent ones, PIC AG and SECURO in Germany, adding 62 million euros in annual revenue in the integration and maintenance of complex audiovisual systems, as well as cybersecurity, cloud, and data. Artemis in France, adding €82 million in annual revenue in digital transformation and strengthening our offer in the strategic areas of cloud, big data and cybersecurity. WorldAid Power Services, €70 million in annual revenue in technical maintenance for power generation assets. Building on its presence in Australia since 2012, STIG Global Services Energy is now positioned to play a key role in the country's energy transition from coal and gas to renewable sources. Meanwhile, the integration of all 2024 acquisitions has progressed well and according to plan. Looking ahead, we maintain a robust pipeline of Bolton acquisition opportunities within a highly fragmented market, and we have had a very good start to this year with the signing of an agreement to occur ROFA industrial AG which I will describe in more detail on the next slide. On page 12, Robo4 Industrial Automation is a leading player in highly attractive markets such as industrial automation, conveyor systems, and intralogistics. Building on the Robo acquisition completed in 2024, it will enable Speed to move further up the value chain while bringing a diversified client portfolio and new cross-selling opportunities. ROFA will add around 430 million in annual revenue and 200 highly qualified employees. It also offers a sustained high single-digit EBITDA margin profile and will be mid-single-digit EPS accretive from the first year. ROFA is a very welcome addition that will reinforce our leadership position in the German industrial services market, the largest and most dynamic in Europe. Looking now at our EBITDA margin, we delivered a new step-up of 40 basis points to a record 7.6%. Germany improved by 40 basis points reaching 7.9% and remains our best performing geography. It is also our largest contributor in terms of EBITDA in absolute value. Northwestern Europe delivered a remarkable 110 basis points increase reaching 7.4% margin, now only slightly below Germany. Central Europe continued to catch up, posting an 80 basis point improvement. France held firm at 7.1%. Global Services Energy remains our top performer, with an EBITDA margin of 10.2%. Once again, this margin expansion reflects our unwavering focus on rigorous contracts pricing discipline and high quality of delivery. Moving now to the segment and starting with the largest one, Germany. Germany delivered a 10.3% revenue growth and is now firmly established as the group's primary growth engine. High voltage activities were particularly dynamic as illustrated by the example I mentioned earlier. We also benefited from sustained demand for energy efficiency and from our strong positions in data centers, tunnel solution systems, and battery energy storage systems. In industrial services, performance was supported by our maintenance activities and our targeted presence in fast-growing segments such as automation, logistics, food, and pharmaceutical. EBITDA margin increased by 40 basis points to 7.9%. This reflects a favorable mix from high-voltage growth the equity impact of recent bought-in acquisitions, and our continued focus on operational excellence and contract selectivity. On page 15, revenue in France was broadly stable, demonstrating strong resilience amidst a muted economic backdrop. Revenue decline was concentrated in two divisions, city networks reflecting the ongoing rundown of mature fiber optic rollout programs, and building solutions where we continue to apply a high level of selectivity to preserve margin quality, and we did secure a safe backlog of high-value projects. The other four divisions delivered sound performance supported by the diversified sector exposure, including aeronautics, defense, BEAS systems, and the mission-critical nature of their services, particularly in data centers or nuclear facilities. Our healthy EBITDA margin held up firm at 7.1%, thanks to our lean and flexible cost structure and our sustained operational discipline. Northwestern Europe delivered strong performance, both in terms of revenue growth and EBITDA margin improvement, Revenue growth was driven by a strong organic performance of 4.3%, despite a very high comparison base in Q4. As a reminder, we had a growth of 11.9% in Q4-24. EBITDA margin improved by 110 basis points, the highest gain across all our segments, to reach 7.4%. The Netherlands has now become the group's second largest growth contributor. This reflects the strong positioning in key markets such as high-voltage services, building energy efficiency, data center services, and critical infrastructure. It also underscores our exposure to high-growth sectors like food and pharmaceutical, energy storage, and advanced technologies. In Belgium, rising investment in energy efficiency remains a key growth driver, with a step-up in grid investment and booming demand for battery energy storage systems. Building solutions and technical facility management also contributed meaningfully to the performance. In Central Europe, found on page 17, revenue rose by 14.7%, fueled by the 12.1% contribution from Bolton acquisition, reflecting sustained M&A activity in Poland and Switzerland since the start of the year. Poland and Slovakia confirmed their return to organic growth in the second half. Driven by renewed momentum in high-voltage activities after delays in the first half, the substantial backlog continued to grow. Austria maintained a high level of activity, underpinned by strong dynamics in transport infrastructure and transmission in distribution services. Overall, EBITDA margins increased by 80 basis points supported by operational excellence initiatives and a particularly robust contribution from Australia and Switzerland. Lastly, in global services energy, revenue declined 4.4% organically due to an exceptionally high comparison basis in H1 2024 as well as a highly selective approach in oil and gas maintenance activities. We preserve strong margin levels in the context of low oil prices, with a 10 basis point EBITDA margin increase to 10.2%, marking the highest level among oil segments. Currency had a negative 4.2% impact, driven by depreciation of the US dollar. Offshore wind activities continued to gain momentum, supported by Stenson Market Positioning and Hansen Technical Capabilities, following the successful integration of Coral Group. And a word on the shareholding structure on page 19. As a service company, our employees are our greatest asset. SPIE's 2025 employee shareholding plan was once again a success, with around 2,025 people across 70 countries participating, a 16% increase compared to 2024. Employees now own 10% of the company, and as a result, spin-out ranks among the few companies in the SBF 120 where employees are the largest shareholder. After the Share4You 2025 plan, more than one employee in two is the group shareholder. By involving our employees in our entrepreneurial journey, we enable them to participate in our long-term value creation. In H1 2026, we will launch a share buyback program to partially offset dilution. And now we'll hand over to Jérôme, who will take you through our financial performance.

Thank you, Gautier, and good morning, everyone. I'm starting with a brief overview of our 2025 income statement. We delivered a solid revenue growth at 10.4 billion euros, up 4.8% year-on-year, or 5% at constant foreign exchange. This reflects a healthy 2% organic growth, mainly driven by Germany and Northwestern Europe. EBITDA margin improved by 40 basis points year-on-year, another step up to 7.6%. As a result of both top line growth and margin expansion, EBITDA reached 793 million euros, up 11.4%. And finally, I would highlight our adjusted net income at 458 million euros, up 9% year-on-year. Moving on to our revenue bridge, which provides a breakdown of our 4.8% total revenue growth. In addition to the already mentioned organic growth standing at 2%, our Bolton M&A activity continues to support our total growth. The acquisitions contributed materially to the overall increase with 3.2% impact, representing nearly €318 million of additional revenues, of which €198 million a full-year contribution effect from transactions which were closed already in 2024, and 120 million on ProRata Temporis basis from the 2025 acquisitions, as most of them were closed rather late in the last quarter and will contribute fully from 2026 onwards. The disposal of our small Belgium IT support business in late 2024 had just a limited impact of minus 0.2%. Finally, the currency effects at group level were close to neutral over the period at minus 0.1%. Let me now turn to our adjusted net income for the year. At 458 million, adjusted net income was up 9% year-on-year, and this reflecting on strong EBITDA growth. Net interest mainly includes a rather steady cost of net financial debt and growing IFRS 16 interest costs, this in line with the business expansion. The other financial charges increased mainly as a consequence of negative net foreign exchange impact this year, especially at global service energy, and this due to a weaker US dollar against euro. Our normative tax rate increased slightly to 30.2%, to 30.2%, and reflecting the gradual change in geographical mix at group level, notably the growing profit contribution from Germany. So, a strong adjusted net income evolution overall, despite some FX-related headwinds and a slight increase in our normative tax rate. Turning now to our usual bridge from adjusted net income to reported net income, which includes the main non-cash IFRS items, starting with the IFRS accounting treatment of the Ornan convertible bond. As a reminder, the derivative component of the Ornan is revalued at fair value at each closing period, and this based on SPI's share price. Given the sharp increase in our share price over the period, plus 64% from January 1st to December 31st, we recorded a non-cash IFRS charge of €176 million, supporting the fair value adjustment of the online, thus mitigated by a €43 million deferred tax asset. Let me remind you that under US GAAP, the accounting treatment of this convertible bond Ornan would have just no P&L impact. You will find in the appendix of this presentation the updated version of the slide we presented already at mid-year on that topic. As a direct consequence, reported net income, group share, decreased in 2025 compared to 2024. Turning to our working capital, which remains a structural strength of SPIS business model. As a reminder, we operate with structurally negative working cap and this throughout the year. At December end, it remained practically stable at around negative 1 billion euro. Expressed in days of revenue, our working cap stood at minus 34 days. a slight two days deviation mainly in comparison to the previous year and this mainly due to the reduction of an historical factoring program in Germany and a decrease of net tax liabilities at the end of December. Overall, our continued focus on early invoicing, disciplined cash collection contributed to this excellent performance. Once again, I'm turning now to free cash flow. Once again, our cash conversion based on our operating cash flow was above 100% target at 108%, supporting obviously a very strong free cash flow at 524 million euros. This remarkable cash conversion reflects the quality of our earnings, but as well as the close monitoring of the working cap. This high level of free cash flow puts us well on track to deliver on our 2028 midterm target, which I remind is a cumulative 2 billion euro of free cash flow over the period 2025 to 2028 included. Moving to page 26, as mentioned, this outstanding increase 524 million free cash flow, allowed us to self-finance first 234 million euros of acquisitions, pay out 182 million euros of dividends to our shareholders, and carry out €39 million of anti-dilutive share buyback to partially offset the dilutive impact of our employee shareholding plan, so-called Share4You program. All this was achieved while slightly reducing net debt from €1,262,000,000 down to €1,145,000,000, evidencing once again our cash generative models. Moving to our leverage ratio, we further deliverage throughout the year, and our leverage ratio decreased to 1.3 times at the end of 2025. This is excluding IFRS 16 impact. Historically, we have consistently demonstrated the deleveraging capacity of our business model, and we have only delivered twice, each time following the self-financing of rather more significant value-creative acquisitions. Finally, our financial structure. Our financial and balance sheet structure remains strong, supported by a well-diversified, long-maturity debt and attractive financing condition. In May 2025, we successfully issued a €600 million sustainability-linked bond, which was largely oversubscribed. It carries out an attractive fixed coupon of 3.75% and matures in 2030. Now, SP's entire debt profile is linked, sustainability linked, in line with our long-term ESG framework. 81% of our gross debt is at fixed rate with a very stable weighted rate cost of debt at 3.4%. Liquidity at the end of 2025 stood at €1.8 billion, including nearly €800 million of available cash and €1 billion of undrawn revolving credit facility, which allows us obviously to finance upcoming M&A starting with ROFA. Lastly, Our credit rating is unchanged at double B+, with a stable outlook from Standard & Poor's and a positive one from Fitch. Turning to our dividend, recommended dividend. In light of that strong financial performance, the Board of Directors will recommend to the AGM a dividend of €1.08 per share, up 8% year-on-year. This represents a 40% payout ratio. fully in line with our long-standing commitments to a sustainable and growing dividend distribution. This dividend to be paid fully in cash includes an interim dividend of 30 cents per share, which was already paid in September 2025, thus with remaining 78 cents per share to be paid in May 2026 after the approval of such a dividend by the AGM. As usual, An interim dividend will also be paid in September 2026, representing 30% of the approved 2025 dividend. Thank you for your attention, and I hand back to Boutier.