Technip Energies Nv

Hello and welcome to Technip Energy's financial results for the first quarter of 2026. On the call today, our CEO, Arnaud Piertan, will discuss our Q1 performance and business highlights. This will be followed by a financial review by CFO Bruno Weber. Arnaud will then return for the conclusion before we open for questions. Before we start, I encourage you to take note of the forward-looking statements on slide three. I will now pass the call over to Arnaud.

Thank you, Phil, and a very warm welcome to our first quarter results presentation. Let me start by sharing the key highlights of our performance. First, a comment on the situation in the Middle East. I want to reassure you that all our projects under construction are intact, no damage to the work, and no cancellation And more importantly, everyone is safe. Of course, we have faced operational disruptions stemming from the conflict, but our first quarter results underscore the resilience of Technic Energies. Owing to the adaptability and unwavering commitment of our teams, we limited the revenue impact to just a 4% decline year over year, with EBITDA down 8%. Importantly, our robust underlying cash generation continues to set us apart. Despite the challenges, we successfully converted nearly 90% of our EBITDA into free cash flow this quarter. This achievement reflects the quality and breadth of our order intake over the past few years and our focus on operational excellence. The situation in the Middle East remains fluid and is expected to affect our 2026 financial outlook. I will provide further detail in the next slide, while Bruno will later discuss our new conditional guidance. On the commercial front, the first quarter marks one of the strongest periods for order intake in our history, with more than 6 billion euros of new awards. These significant wins reinforce our leadership in LNG and sustainable fuels, and we have driven our backlog to a new high of more than 20 billion euros. Let's now take a look at the operational, financial, and broader implications of the Middle East situation. we stand in solidarity with all those affected by the conflict. From its outset, Technip Energies implemented a comprehensive crisis management framework to safeguard our global workforce and protect our contractual positions. Some of our worksites experienced temporary stoppages, followed by phased resumptions under enhanced safety protocols, working at all times in coordination with authorities and customers. Currently, our sites are nearing full mobilization. While the situation in the Middle East remains fluid, we see two main channels of impact on our business. First, project execution, where progress has been affected by site disruptions and logistical challenges, deferring revenue into later periods. Second, incremental costs are being incurred for safety and business continuity. While we expect cost recovery through strong contractual protections, the exact timing and extent is dependent upon the evolution of the conflict and the progress on commercial discussions. For these reasons, and assuming the situation in the Middle East normalizes by the end of the second quarter, We have recalibrated our backlog schedule and estimate that around 500 to 600 million euro in revenue will be deferred beyond 2026, while the impact on projects margin should be substantially mitigated. A supply shock of this magnitude reinforces three structural trends we are already seeing in our market. diversification of supply routes, diversification of energy sources, and a greater premium on security of supply. In practical terms, energy security drives stronger investment in energy infrastructure and new energies. It translates into more upstream investment, additional LNG capacity, and increasingly floating LNG solutions to accelerate time to market. It also elevates the value of resilience through circularity, regionalization of supplies, and solutions that improve sovereignty and supply certainty. In this environment, Technip Energies has a critical role to play, helping customers progress energy security while continuing to deliver decarbonization. In addition, TEN will also very likely be active on Middle East asset reconstruction, given our pertinence in the region and our proximity to customers. Supported by the continued execution of our strategy, our financial strength, and our global presence, Technip Energy is exceptionally well positioned to navigate the current uncertainty and to thrive in the years ahead.

Now let's look at our near-term commercial momentum with 2026 off to a strong start.