加载中...
共找到 39,844 条相关资讯
'Mad Money' host Jim Cramer looks ahead to next weeks potentially market moving moments.
Federal Reserve board governor Stephen Miran explains why he believes interest rates should be cut on ‘Making Money.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #makingmoney #stephenmiran #federalreserve #fed #interestrates #ratecuts #economy #finance #markets #business #inflation #monetarypolicy #economicgrowth #wallstreet #stocks #investing #economicoutlook #money #financialnews
CNBC's Eamon Javers joins 'Fast Money' with breaking news on tariff changes from the White House.
It is walking back levies on imports including beef and coffee in what critics say is an admission that tariffs raised prices in the first place.
Order exempting coffee, beef, bananas and other items comes as White House fights off concerns about rising costs
The 'Fast Money' traders talk their takeaways from this week's market action.
Fairlead's Katie Stockton talks technical signals coming from the market.
The AI Narrative, which has fueled stock market gains recently, is showing signs of weakness across several fronts. Multiple vulnerabilities are emerging that could challenge the sustainability of AI-driven market optimism.
Tech took a beating this week but a lot of stocks rebounded into Friday to close the trading week. One asset that did not recover: Bitcoin, as the cryptocurrency remained below $100,000.
Major indexes reversed course early Friday to finish the week mixed.
Trump cuts tariffs on goods like coffee, bananas and beef in bid to slash consumer prices
Investors battered bitcoin this week, rotating out of riskier assets, sending the largest cryptocurrency by market value below a key technical level.
Requisite Capital's Bryn Talkington and Northwestern Mutual's Matt Stucky join 'Closing Bell' to discuss the latest news affecting markets.
The Bureau of Labor Statistics will release the September jobs report Thursday, after it was delayed due to the government shutdown. Investors are hoping the new data can shed light on the state of the US economy.
Operator: Hello, and welcome everyone to the Iterum Therapeutics Third Quarter 2025 Financial Results. My name is Becky, and I will be your operator today. All lines will be muted throughout the presentation portion of the call. I will now hand over to your host, Kevin Dalton, Senior Director of Legal Affairs. Please go ahead. Kevin Dalton: Thank you, Becky. Good morning, and welcome to Iterum Therapeutics' Third Quarter 2025 Financial Results. The press release with our third quarter results was issued earlier this morning and can be found on our website. We are joined this morning by our Chief Executive Officer, Corey N. Fishman, our Chief Financial Officer, Judith M. Matthews, and our Chief Commercial Officer, Christine Coyne. Corey and Christine will provide an update on the commercial launch of Orlynda in the U.S. Corey will also give an update on the business generally, and Judith will provide details on our financial results. We will then open the lines for Q&A. Before we begin, I would like to remind you that some of the information presented on this conference call will contain forward-looking statements concerning our plans, strategies, and prospects for our business, our ability to continue the commercialization of Orlynda in the U.S., our ability to expand into new territories and put additional resources in high-prescribing geographies, and to expand the payer coverage of Orlynda in the U.S. Our ability to raise funds either through capital raise and/or revenue generated from sales of Orlynda, the development, therapeutic, and market potential of Orlynda, and the protection provided by our patents. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors outside our control. These include our ability to build and maintain a sales force and continue the commercialization of Orlynda in the U.S., the market opportunity for our potential market acceptance of Orlynda, the actions of third-party suppliers, manufacturers, and contract sales organizations, our ability to continue as a going concern, the accuracy of our expectations regarding how far into the future our cash on hand will fund our ongoing operations, and finally, other factors discussed under the caption "Risk Factors" in our annual report on Form 10-K and 10-Q filed with the SEC this morning. In addition, any forward-looking statements represent our views only as of the date of this call and should not be relied upon as representing our views as of any subsequent date. We specifically disclaim any obligation to update such statements. We will also be referencing non-GAAP financial measures during the call. We have provided reconciliations of GAAP reported to non-GAAP adjusted information in the press release issued this morning. With that all said, I'll turn it over now to you, Corey, for your opening remarks. Corey N. Fishman: Thank you, Kevin. Welcome to everyone, and thank you for joining us today. We are excited to be talking with you today and especially looking forward to sharing information about the early stages of the Orlynda commercialization. Just to remind you, we launched Orlynda into the market on August 20. Now I'd like to turn the call over to our Chief Commercial Officer, Christine Coyne. Christine Coyne: Thank you, Corey, and good morning to everyone. As with nearly every new product launch, changing behaviors and old habits is paramount, particularly in a category where prescribing habits have been ingrained for decades due to lack of innovation and limited new branded options. Changing healthcare provider behavior involves frequent office visits and getting time with those prescribers and their office staff. Our field team has been calling on our providers and ensuring they remember that there is now a better way to help treat their uncomplicated urinary tract infection patients with Orlynda. As with any promotion, message retention and behavior change increases over time and with frequency. That is our current focus with our customers. Each week, this improves. Having said that, we made steady progress in educating providers about Orlynda and driving early Orlynda use among patients suffering from uncomplicated urinary tract infections, especially in the most recent weeks. Our momentum with customers has been growing consistently. Through November 12, we generated more than 280 prescriptions, which were driven by more than 100 unique prescribers. Nearly half of those prescribers have broadened their experience by prescribing Orlynda to more than one patient. This is an important signal of both physician and patient experience with Orlynda. As physician comfort with Orlynda continues to grow, we have seen a number of these physicians broadening out their use, especially in the most recent weeks. Another important indicator which we follow closely is the fill rate of Orlynda prescriptions through our specialty pharmacy partner. This step in the process has a few parts to it. With new product introductions, in many instances, payers have yet to make their decisions on formulary inclusion, which provides coverage for patients. That said, there's usually a path forward to help these insured patients get their prescriptions, and we are working our way through all of this now. As with a large proportion of launches, once payer decisions are made and coverage and access are achieved, this fill rate should improve. However, even during this period of launch, while awaiting payer coverage, we have found that approximately 40% of Orlynda prescriptions have gone through these payer approval processes and have been filled, which aligns with our expectations. As for the patient's out-of-pocket exposure, we have a co-pay support program that helps defray the cost for appropriate commercial patients. While this may be of help to some patients, it is our intention to work with insurance carriers, including Medicare plans, to gain access to and coverage of Orlynda to help optimize this adjudication process and patient out-of-pocket exposure over time. We will discuss more on our progress here in just a moment. With Orlynda promotion gaining momentum each week, we have received a number of inquiries from physicians interested in obtaining Orlynda to whom the specialty pharmacy is outside of their business practice model. Given the number and frequency of inquiries such as these, we have been working with two of the most widely used specialty distributors, McKesson and AmerisourceBergen, to tuck into these particular physicians' ways of practicing. This specialty distribution model allows these physicians to purchase Orlynda through their preferred distributor and it supports how they like to practice. At this time, we have already shipped Orlynda to McKesson, and we will be shipping Orlynda to AmerisourceBergen shortly. Customer feedback and insights continue to be received as our efforts expand weekly to a wider set of healthcare providers and as utilization deepens with those providers who have already prescribed Orlynda. Some of the important learnings include physicians welcoming Orlynda as a new alternative for physicians to help treat their uncomplicated urinary tract infection patients effectively, but especially where resistance is a challenge. Physicians can clearly see a place for Orlynda to help them break the cycle of patients being treated with multiple antibiotics which have been resistant. Orlynda provides physicians with a new option. Additionally, our customers have reported the importance of Orlynda helping them to keep their patients out of the hospital. Being able to treat with a new oral option that helps keep their patients at home has been reported of great importance by our physicians. Also, physicians' clinical experience with Orlynda and their patients has been as expected. Lastly, customer feedback coming from our recent presence at the Infectious Disease Week conference, which was held last month in Atlanta, our efforts included a poster session and a learning lab presentation, confirms very high interest from both key thought leaders and large infection disease group practices with requests for follow-up discussions. Overall, we are pleased with the steady progress we have made, particularly given the modest commercial infrastructure we currently have in place. The field team continues working with healthcare providers as trial and adoption of Orlynda continues. Now regarding our field operations, we continually monitor an array of performance metrics to help us capitalize on opportunities quickly as we discover them, as well as optimize areas where effectiveness needs to be improved. Based on these diagnostics, we reduced the in-person field team to 10 representatives from our original plan of 20 and are in the process of augmenting our efforts with both in-person and virtual sales representatives. Once fully in place, the combination of the existing resources and our new supplemental resources should provide Iterum the equivalent coverage in at least the initial 20 target geographies, if not more, and it will be done with greater efficiency. Christine Coyne: Now I'd like to spend a few moments and talk about managed care and market access. Overall, Iterum coverage discussions are advancing well, with positive feedback from both pharmacy benefit managers and health plans across both their commercial and Medicare Part D formularies. Iterum's national account managers continue to engage strategically with key stakeholders across the U.S. payer landscape. Orlynda's differentiated value proposition and ongoing formulary discussions with state, regional, and national health plans, including the three largest pharmacy benefit managers, have been met with strong interest and positive feedback. Today, we are pleased to announce that we have a signed rebate agreement with one of the top three Medicare Part D pharmacy benefit managers. This agreement enables Orlynda to be added to their Medicare Advantage prescription drug plan and Medicare prescription drug plan formularies for coverage beginning in 2026 or 2027, depending upon the individual plan structures. Also, Iterum has been invited to bid for formulary inclusion across commercial, Medicare Part D, and government segments managed by these pharmacy benefit managers. With submissions now complete, we are aiming to secure long-term formulary positioning later this year and into Q1 2026. Orlynda's access continues to grow, with or without prior authorization or medical exception pathways. Coverage now reaches 16% of insured lives with increasing adoption by employer groups and payer formularies integrating Orlynda into their standard benefit designs. We expect additional decisions in the coming quarters and continue to see an increase in patient access and early prescription growth, reinforcing our confidence in the commercial trajectory. Now I'd like to turn it back over to Corey. Corey N. Fishman: Thanks for the update on Orlynda's commercialization, Christine. I'll make a few additional remarks. With regard to our patent estate, we continue to expand our coverage. We've been granted a patent in China that covers a combination of probenecid and valproic acid for treating specified diseases. This patent is expected to expire in March 2041, absent any patent term extensions. We have also been granted a patent in Mexico that covers a bilayer tablet comprising sumopenemethodroxil and probenecid, methods of preparing the tablet, and the bilayer tablet for use in treating specified diseases. This patent is projected to expire in December 2039, absent any patent term extensions. I now would like to provide some financial guidance. As you may have seen in our financial statements, Iterum generated net product sales of $400,000 in the third quarter, which included some stocking at our specialty pharmacy. We expect modest sales in the fourth quarter of this year as well. As we look ahead to 2026, with our existing field organization continuing to call on their targets, the additional resources we plan to add that Christine mentioned earlier, as well as obtaining coverage in key pharmacy benefit manager insurance plans, we currently expect our full-year 2026 net product revenue to be in a range between $5 million and $15 million. It's important to note that if Iterum were to achieve this revenue guidance for next year, it will have done so with a modest field organization relative to other antibiotic launches in the U.S. As it relates to total operating expenses, we currently estimate these will be between $25 million and $30 million for the full year 2026. Our existing cash and cash equivalents provide an operating runway into 2026. In order to continue commercialization throughout 2026, we will need to raise more capital. We have and will continue to discuss potential financing opportunities with available sources of capital, including non-dilutive funding options, but to date have yet to secure a viable transaction. As such, we will likely look to obtain approval from our shareholders at an extraordinary general meeting over the coming months to grant our Board of Directors authority to issue additional shares. If we are successful in getting this approval and raising incremental capital, we would use those funds to continue the ongoing Orlynda commercialization as well as potentially putting additional resources against high-value territories or expand into other highly valuable territories not yet tapped by us, or both. Of course, our goal over the next couple of years is to generate revenue in excess of the amount of expenses we have and be self-funding. In summary, the feedback from physicians, payers, and patients has been very good for Orlynda, and we are encouraged by the results we've achieved to date. If we're successful in raising additional capital, we believe we can continue to drive revenue growth and position Orlynda for broader market adoption. Now I'll turn the call over to Judith Matthews for our update. Judith M. Matthews: Thanks, Corey. Net product revenues were $400,000 in 2025 with the launch of Orlynda in the United States in August 2025 and included initial stocking at our specialty pharmacy locations serving our targeted territories. Total operating expenses were $8.1 million in the third quarter of 2025 compared to $4.9 million in the third quarter of 2024. Operating expenses include cost of sales, the amortization of an intangible asset, research and development expenses, and selling, general, and administrative expenses. Cost of sales expense for the third quarter of 2025 was $20,000 and primarily consisted of royalty payments pursuant to our license agreement with Pfizer. Note that prior to approval in October 2024, costs incurred for the manufacture of Orlynda were recorded as research and development expenses. Amortization of intangible asset for the third quarter of 2025 was $300,000 and related to the finite-lived intangible assets recognized in relation to the regulatory milestone payment payable to Pfizer upon approval by the FDA. R&D costs were $1.3 million for the third quarter, compared to $3.1 million for the same period in 2024. The primary driver of the decrease in R&D expense for the third quarter was lower chemistry, manufacturing, and control or CMC-related expenses. Following approval, costs incurred for the manufacture of Orlynda have been capitalized to inventory. SG&A costs were $6.5 million for the third quarter compared to SG&A costs of $1.8 million for the same period in 2024. The primary driver of the increase in SG&A expense for the third quarter was commercialization activities associated with the August 2025 launch of Orlynda in the United States. Our net loss on a US GAAP basis was $9 million for 2025, compared to a net loss of $6.1 million for 2024. On a non-GAAP basis, which excludes certain non-cash adjustments, our net loss was $7.3 million in the third quarter of 2025 compared to our non-GAAP net loss of $4.8 million in the third quarter of 2024. The $2.5 million increase in our non-GAAP net loss for the third quarter was primarily a result of commercialization activities for Orlynda, partially offset by lower CMC-related expenses. As of September, we had cash and cash equivalents of $11 million. Based on our current operating plan, which includes our forecasted sales, we expect that our cash and cash equivalents, together with $2.6 million of net proceeds raised under our at-the-market offering program from October 1, 2025, through November 13, 2025, will be sufficient to fund our operations into 2026. As of November 13, 2025, we had 52.8 million ordinary shares outstanding. Now we will open it up for questions. Operator: Thank you. If you wish to ask a question, please press star followed by one on your telephone keypad. If you are using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. We will pause momentarily while we compile the Q&A roster. Our first question comes from Ed Arce from WestPark Capital. Your line is now open. Please go ahead. Ed Arce: Great. Thanks for taking my questions and congrats on the initial launch here. A few questions. First of all, I appreciate all the detail here with the launch metrics around the commercialization. I am wondering if these specific numbers around patients and prescribers and reps coverage are data points that you intend to report for the first few quarters of the launch for us to track. And related to that, I was wondering if you could discuss the number of actual physician details and also the number of sales regions that you currently plan to continue. And I have a follow-up. Thanks. Corey N. Fishman: Yep. Thanks for the questions, Ed. I'll cover this. The question around the metrics, yes, we do plan to report the, you know, the kind of the prescription, the growth, the number of physicians, the general information so people have a sense of how the launch is going. I think at some point, if all goes well and we're generating, you know, tons and tons of scripts, we'll do things like most other companies do, which is report the growth quarter over quarter, that kind of thing. So we will be more specific in the first couple of quarters till we have some data behind us. And then we'll probably branch out to providing the same information, but maybe not quite as granular. With regard to details and territories, we're not talking about specific number of details. What I will tell you is what I think is important. We started out our initial thinking was having 20 territories with high-value targets. And I think with this change in the organization as Christine mentioned, as well as the supplemental resources we will be putting on, we will be in a position to at least effectively cover 20 of those territories, maybe a little more, but ultimately, more efficiently. So I think that's probably the range that we'll be in. And again, we'll continue to report that as we do going forward with regard to how our performance is. Ed Arce: Great. Okay. And then around the guidance for net sales next year, you in your release, discussed two particular drivers: payer coverage, which I think you said, is currently at 16% of insured lives, and uptake. I'm wondering if you could give a bit more color or details around those two drivers. And in particular, with uptake, if there's any initial feedback you've gotten from physicians around, you know, the product profile of being oral and keeping the patients at home and how that's driving their interest. Thanks. Corey N. Fishman: Sure. So I will cover the second part first, which is the feedback. Feedback from physicians has been very good. I think there's a variety of reasons that physicians are using the product, as Christine mentioned. One of them is certainly to keep those patients that are most at risk out of the hospital. One of them is when you have recurrent infections, you want to make sure you're treating that infection appropriately since these folks have been on potentially multiple drugs over a short period of time that haven't worked. And also the folks who have those comorbidities and who are on that higher end of the risk spectrum, I think physicians see this as an excellent option. And we'll continue to work with physicians to get that message across. Your other question, I think, was around, you know, access and coverage. We are, I think, in a good spot as most of the folks on this call know, you really don't get coverage in the first six months from any plan post-launch. That is just something that the PBMs, the pharmacy benefit managers generally do not do. And so we're approaching that six-month time frame in kind of February time frame for us. And as mentioned, we have submitted bids to all of them. So now it's just a question of being able to get on those plans and get coverage, which will make the process even more efficient. Even though there is a process in place, of course, where you can get those prescriptions filled, we can make it a more efficient process through the addition of Orlynda to those formularies. So I think we're really looking at that as an opportunity to have additional efficiency in the system so more and more scripts can be filled while you're continuing to have strong uptake with these physicians who are prescribing. And again, we've got a lot of physicians that have written multiple scripts already. And I think that's really an important metric because oftentimes, especially in these places where you haven't had a new product for many, many years, and we know that this has been that place. Twenty-five, thirty years, docs are pretty ingrained in what they're writing. So it does take a few visits to get them to write, and the folks who have written many of them have come back and written again and again and again. So I think we're feeling like we've got a real opportunity here to continue that momentum, and that's really the drivers for us of how we're arriving at the revenue guidance. Ed Arce: Thanks so much. I'll jump back in the queue. Operator: Thank you. Our next question comes from Jason McCarthy from Maxim Group. Your line is now open. Please go ahead. Jason McCarthy: Hi, Corey. Nice job of getting things off the ground so far. So just to follow-up on the prior question, did I catch it right you expect formulary I guess you submitted this already, with PBMs in February? Of 2026 or sometime in the first quarter? Corey N. Fishman: Yes, we're hoping that's the case. Obviously, we don't have control of that, Jason. But all of our, you know, we're doing everything we can on our end to make that as feasible as possible by having our bids already submitted. So we have now submitted our bids to all the three big PBMs as well as the big Medicare Part D plans. So as we said, we've secured one contract so far on the Medicare Part D side. So these will hopefully be coming in over the end of this quarter and the first quarter. And that would give us that opportunity to really kind of give an extra boost to the efficiency of the process. Jason McCarthy: Is there any effort by Iterum or strategy rather in terms of advertising or using social media outlets to get the word out on Orlynda to try to drive uptake? Corey N. Fishman: Yeah. It's definitely something we've thought about. We are, you know, at this stage, we have put the majority of our investment into the field organization and the materials necessary to support that, but it's definitely something that we continue to look at and think about the ways to optimize that social media presence and how we can get that message across. Given that we've got that modest infrastructure. Jason McCarthy: Okay. Do you plan on, and I this might have been covered already. Do you plan on in addition to script data down the road, releasing any information on the types of patients that are being treated? I don't know if that data is being accumulated, meaning are they high risk or even further, specific types of comorbidities and high-risk aspects to these patients that you'll gain access to? Corey N. Fishman: Yeah. We're not going to have a lot of those specifics because that, you know, that gets into the doctor-patient relationship. I think what we'll end up having is more anecdotal information from those prescribing physicians. And, you know, we certainly will always be cognizant of who's writing, what information can we get from them about the patients and how it's working, we can optimize? And to your point, if we find that a certain comorbidity has been really important for a number of doctors, you know, we certainly can get that from them through the sales organization. And then figure out a plan to, you know, to optimize that. But it's a little bit trickier just because of all the confidentiality around patient information, and, you know, you can't really know any of the details on the, you know, the name and anything like that of the patient. It would really have to be more just anecdotal from the docs. Jason McCarthy: Got it. And lastly, and this is not really sure the type of answers you expect from this. This is more of a broad thinking question because I've been doing this for a long time, and I see a lot of one-product companies drug launches that they're slow to start, they're choppy. Some people question what that road is going to look like. But my pushback in this case has been, oral has been sought after for decades, and it's not just for community infections, like urinary tract infections. Have you do you think people are going to want this oral pendant for a variety of things? Have you got an inbound interest, in getting access to the drug, for any kind of infection? Corey N. Fishman: Yeah. We've gotten a lot of inbound interest from people that aren't on our call list, that people that we're not covering infectious disease physicians, etcetera. So I think there's a lot of interest in that. You know, we obviously have an indication that we will promote on, and that is, you know, that's the only thing we'll be talking about. But to the extent that there are physicians who call us up and ask for the product, we will absolutely supply it simply because we believe that it's an important piece if a physician's asking for it. And that's why we've gone to McKesson and AmerisourceBergen because going through a specialty distributor like ours is out of the kind of their business model for these types of physicians who are giving us inbound calls. So we obviously are going to be very, very mindful as an organization to stay within our approved indication. But we will certainly respond to physicians' inquiries because that may very well be for uncomplicated UTI. We just we don't know. And a physician has the flexibility to write it for whatever it is they choose to write it for. Jason McCarthy: Great. Thank you, Corey. Corey N. Fishman: Thank you. Operator: We have another question from Ed Arce from WestPark Capital. Your line is now open. Please go ahead. Ed Arce: Great. Thanks for taking the follow-up. I just wanted to ask about this effort to augment the now 10 reps with the virtual effort, especially because you've characterized this as at least replacing the other 10 from the original 20 that you had targeted, and perhaps a bit more. And so I'm wondering if you could provide some more detail in terms of the capabilities and the ability to engage with physicians through these different virtual platforms. Thanks. Corey N. Fishman: Sure. Thanks, Ed. So I want to be really clear. We will probably do a combination of both in-field and virtual, to get to that at least 20 effective territories, if not more. And so on the virtual side, I think what you have seen, and you've probably seen this in your experience as well, many companies have used virtual reps who tend to be very efficient because they are using the same target lists but they're doing this all virtually. So it's all through phone and computer as opposed to reps who are out there having to drive, having to wait, etcetera. They can schedule meetings. They can be quite a bit more efficient on the interactions with physicians simply because they are sitting at a desk not trying to drive around and find people and or get in through the office. So those people tend to be based on the experience that Eversana has had as well as a lot of other companies that we've all spoken to have had a very good reputation of being efficient in terms of producing performance. So we believe that those virtual reps can be a very important part of our organization in addition to the in-field reps. I don't want to minimize one or the other because they're both incredibly important. But we do think the combination of the two is really going to give us the opportunity to reach a lot of targets in an effective way and hopefully drive that performance to the place where we, you know, we are we're talking about. Ed Arce: Okay. At this point, are you considering other marketing channels like medical journals or engagement via social media or other channels like that? Corey N. Fishman: Yeah. I think, you know, what we've talked a lot about with our partners at Eversana is, you know, things like social media tend to be more effective nowadays than the traditional kind of journal ads and things like that. But we will continue to look at them. We'll continue to look at historical return on investment for those types of investments over various companies like ours that have used them. And we'll try to optimize those as best we can. Again, we're trying to be as mindful as we can about the capital we have. And putting it where we believe we're going to get the biggest bang for the buck. And right now, that tends to be the field organization. Hopefully, we'll have a little more flexibility if we're successful in raising more capital to put some of those other things into play. And, you know, altogether then, it makes everything more efficient. It's just a question of having that flexibility. Ed Arce: Sounds good. Thanks again, and congrats and best of luck as you continue this launch. Corey N. Fishman: Thanks for the questions. Operator: This concludes our Q&A session. So I'll hand back over to Corey N. Fishman for closing remarks. Corey N. Fishman: Thank you, Becky. In closing, we believe we've made some very solid progress in the first ten weeks of Orlynda commercialization. Physicians see a place in the market for Orlynda, and many physicians have begun prescribing for multiple patients. We will continue to work tirelessly toward growing the Orlynda patient base and driving incremental revenues. We really appreciate your support as we continue the Orlynda commercialization and are looking forward to keeping you updated as our key milestones are met. Thanks again for joining us today and have a good day. Operator: This concludes today's call. Thank you for joining us. You may now disconnect your lines.
Operator: Good morning, and welcome to the Third Quarter 2025 Lifeward Ltd. Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero on your telephone keypad. After today's presentation, to withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Almog Adar, CFO of Lifeward Ltd. Please go ahead. Almog Adar: Thank you, Operator, and thanks to everyone who has joined us on the call today. My name is Almog Adar. I am Lifeward Ltd.'s Chief Financial Officer, and with me on today's call is our President and Chief Executive Officer, William Mark Grant. Earlier this morning, Lifeward Ltd. issued a press release detailing the financial results for the third quarter, which ended September 30, 2025. I would like to ask you to review the full text of our forward-looking statements from the press release. We anticipate making projections during this call, and actual results could differ materially due to several factors, including those outlined in our latest filing with the SEC. And with that, I will turn the call over to William Mark Grant. William Mark Grant: Thank you, Almog. Good morning, everyone, and thank you for your time today. Since joining Lifeward Ltd. in June, I have completed a sober and comprehensive assessment of the business, starting with our strategic direction down to our commercial model and operations. What I found is a company with innovative, powerful technology, deep clinical knowledge, and a mission that matters. Also, a company that needs sharper focus, stronger discipline, and a rebuilt foundation to unlock its potential. Over the past few months, we have taken meaningful steps to rebuild those fundamentals. We have simplified how we operate, strengthened the processes that matter most to patients, payers, and providers, and begun reshaping our go-to-market approach around global access, distribution scalability, and a data-driven commercial model. The progress we have demonstrated this quarter is encouraging, an early sign that this work is taking hold. We delivered another record quarter for ReWalk placements for Medicare beneficiaries. This is our second consecutive record since CMS established their fee schedule in April 2024. We implemented meaningful operational efficiencies, manifesting in a 16% reduction in quarterly cash burn and a 27% reduction in non-GAAP operating loss compared with last year. We also expanded patient access, including receiving our first Medicare Advantage commercial revenue for our ReWalk 7 personal exoskeleton. Now with our CE Mark approval, we have expanded our access to the European market, which represents roughly about 40% of our global addressable exoskeleton opportunity. These results are demonstrating that Lifeward Ltd. is becoming a more focused, more efficient, and more patient-centered company. Earlier today, alongside our earnings release, we also announced the completion of a $3 million loan with Oramed. This capital enhances our near-term liquidity and supports ongoing execution of our transformation plan. We are still early in a multi-quarter rebuild. I understand there is more work ahead, and I have confidence in the commitment and dedication of our teams across our company to complete this transformation. We are highly encouraged that soon after implementing these measures, we are already seeing real momentum and a clear direction. We are rebuilding the fundamentals and positioning Lifeward Ltd. to serve more people, scale more efficiently, and create durable long-term value. With that, I will turn the call over to our CFO, Almog Adar, to review the financial results from this quarter. Almog Adar: Thank you, Mark. As we review our results, I will discuss both GAAP and non-GAAP figures. The non-GAAP results exclude the items detailed in the reconciliation table in today's earnings release and, in our view, provide a clear picture of the company's underlying operating performance. I encourage you to refer to the GAAP results in the reconciliation table as we go through the third quarter 2025 financials. And now, let's discuss revenue. Lifeward Ltd. reported revenue of $6.2 million in 2025 compared to $6.1 million in 2024, an increase of $100,000 or approximately 1.1%. On a quarter-over-quarter basis, Q3 revenue increased approximately 8% from $5.7 million in Q2 2025, driven primarily by higher Medicare unit sales in the U.S. Now let's break it down by product line on a year-over-year basis. Revenue from our traditional product and services, which include the ReWalk personal exoskeleton, the MyoCycle FES bike, and the ReStore exosuit, totaled $3.1 million in Q3 2025 compared to $2.5 million in Q3 2024, an increase of about $600,000 or 24%. This increase is driven by a year-over-year increase in Medicare-related sales. During 2025, we delivered 15 ReWalk units compared to four ReWalk units delivered in Q3 2024. Revenue from the ATLAS G product and services was $3.1 million in Q3 2025, down from $3.6 million in Q3 2024, primarily driven by timing factors and quarterly revenue mix. Across both product lines, our commercial pipeline remains healthy. For the ReWalk product line, we closed the quarter with a pipeline of more than 117 qualified leads in process in the United States. In Germany, with 49 leads in process at quarter-end, 33 active rentals, which historically convert to sales within three to six months. So, altogether, we closed the quarter with 2023 systems in backlog. Moving to gross profit, in 2025, our GAAP gross profit was $2.7 million or 43.7% of revenue, compared to $2.2 million or 36.2% of revenue in 2024. On a non-GAAP basis, the 2025 gross profit was $2.7 million or 43.7% of revenue compared to $2.6 million or 42.5% of revenue in 2024. The year-over-year increase was primarily driven by lower production costs following the December 2024 closure of our Fremont, California manufacturing facility. Now pivoting to operating expenses, GAAP operating expenses were $5.9 million in 2025 compared to $5.4 million in 2024. The increase was largely driven by a $2 million earn-out write-down that we recognized in the prior year quarter. On a non-GAAP basis, adjusted operating expenses were $5.7 million in 2025 compared to $6.7 million in 2024. The decrease primarily reflects greater efficiency in reimbursement activities, improved efficiencies in marketing and sales operations, and lower R&D spending after the completion of major development programs. We expect this positive trend to continue into 2025, supported by the ongoing impact of our efficiency measures. Our GAAP operating loss for 2025 was $3.1 million compared to $3.2 million in 2024. On a non-GAAP basis, operating loss was $3 million compared to $4.1 million in the same period last year. We expect our quarterly operating loss to further reduce in 2025 as sales volumes continue to grow and efficiency measures continue to take hold. Net of balance sheet and cash flow, we ended 2025 with $2 million in cash and cash equivalents and no debt. This amount includes the full gross proceeds raised through our ATM facility, which totaled approximately $1.2 million. Our operating cash usage in 2025 was $3.8 million, compared to $4.5 million in 2024. The improvement reflects the benefits of operational efficiencies and the consolidation of our manufacturing facilities. Following the end of the quarter, we entered into a $3 million loan agreement with Oramed, providing additional capital support to further strengthen our liquidity position. Based on our current plan, we remain a growing concern with sufficient cash to fund operations into 2026. We continue to evaluate all opportunities to support our operations and growth plan while continuing to implement cost management initiatives to preserve resources and maintain focus on our core businesses. Lastly, financial guidance. Lifeward Ltd. is reaffirming full-year 2025 guidance, including expected revenue in the range of $24 million to $26 million and a projected non-GAAP net loss in the range of $12 million to $14 million. With that, I will turn the call back to Mark. William Mark Grant: Thank you, Almog. Since June, we have been focused on rebuilding the fundamentals of Lifeward Ltd., defining our strategic direction, sharpening our commercial model, improving operational discipline, and aligning the organization around a more scalable and data-driven approach. The progress we delivered this quarter shows that the foundation we are putting in place is working. We are executing with more consistency, more focus, and greater alignment across the company. As you heard from Almog, part of this transformation is that we are consistently assessing opportunities to enhance our financial position. We have had a number of productive conversations across the landscape, and we will continue evaluating all options that could support our long-term strategy. We are also not dependent on any single path. Our focus remains on making decisions that position Lifeward Ltd. for durable value creation. We have meaningful opportunities in front of us across our existing markets, in global expansion, and through the strategic avenues we are exploring. We are committed to building a stronger, more efficient, and more impactful Lifeward Ltd. for the future. Thank you for joining us for the call today and your continued support. Operator, let's open it up for questions. Operator: We will now begin the question and answer session. On your telephone keypad, if you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. Again, it is star then 1 to ask a question. At this time, we will pause momentarily to assemble our roster. The first question comes from Yale Jen with Laidlaw and Company. Please go ahead. Yale Jen: Good morning, and thanks for taking the questions. And I just have a little bit of detailed things here. First of all, I just want to confirm that you mentioned that the 33 systems in rental. Is that correct? If so, what's the breakdown between the United States and Germany? William Mark Grant: Can you repeat the question, Yale? Breakdown for the rental. How many rental systems are for the ReWalk of the quarter, and what's the breakdown between the United States and Germany? Yale Jen: So we may, as I mentioned in the call, we have 33 active rentals, all of them in Germany. Yale Jen: All in Germany. Okay. Great. That'd be great. Okay. And my second question is that in the previous quarter, you have a collaboration with CoreLife. Just curious what kind of impact you may have felt in the third quarter or even going forward? William Mark Grant: Yale, thank you for the question, and good to hear your voice today. So the partnership with CoreLife has been going well, and so we have both been diligently working into this partnership and building the pipeline over time. It has grown each quarter, and we are learning the training processes and what it takes to reach those patients for marketing efforts. So we are excited about that partnership and looking for it to expand in the future. Yale Jen: Okay. Maybe the last question here is that you mentioned that you have the highest percentage of ReWalk from Medicare, which is a great development. Just curious, do you have any colors in terms of what percentage of, I guess, from the dollar sense, that were from Medicare versus others? And thank you. William Mark Grant: So it is reflecting that this page is approximately 50% of our total revenue for ReWalk products only, not taking into account the other G product. Yale Jen: Understood. Understood. And maybe just to tag one more. What's the actual rough revenue in the two of ReWalk within the $3.1 million of the traditional product sales? William Mark Grant: $2.9 million is related to the ReWalk product, and the other is mainly the MyoCycle. Yale Jen: Okay. Great. Thanks, and I really appreciate it, and the best of luck for you guys. William Mark Grant: Yeah. Thanks for the questions. Operator: The next question comes from Swayampakula Ramakanth with H.C. Wainwright. Please go ahead. Swayampakula Ramakanth: Thank you. And this is RK from H.C. Wainwright. Good morning, Mark. And Almog. Morning, RK. A few questions from me. So starting off from the top, Mark, as you said, you looked down through the different aspects of the company and did a review. What have you learned in that compared to when you did the due diligence coming into the company? And what sort of what aspects of the operations do you think require changes so that we get to not only the inflection point but also the growth stage of the company? William Mark Grant: Okay. Thank you for the question. So quickly, I think first and foremost, the fundamentals of the business really have to be established from the ground up. You know, good visibility into KPIs, understanding data, and deploying resources where data supports it. And that's number one, kind of the first thing. I saw a little bit of that coming into the role, but not as much as I got into it a little deeper. Secondarily, we have the opportunity to form some great strategic partnerships and channel management, and that comes in two flavors. One is it allows us to gain broader access to patients through all the payers across the U.S., and secondarily, it's a population of patients that are really targeted in our environment. So I'm excited because I've got roughly twenty years or twenty-five years of experience in that channel management and also across payer access. And so the channel partnerships coupled with payer access and payer policy development are key for our success going forward. And then the last piece around operations is frankly just scale. We've got a good growth plan in front of us, so we have to make sure we can keep up with it and be reproducible with high quality. So I think if I boiled it down to four different pieces, one of which is establishing true and solid fundamentals. The second is making sure we are leveraging channel partners as strongly as we can and ensuring access for everybody. The third is access across all payers across the globe, so no patient is left behind. And the fourth is ensuring we scale for the future with good COGS. Swayampakula Ramakanth: Thank you for that, Mark. And then, when you talk about channel management, what triggered the increased sales into Medicare this quarter, the third quarter, and how much of that could be sustained into future quarters? William Mark Grant: The good news is the channel management is starting. So as we go into Q1 of next year, you will see the reflection of that. So right now, we are just cleaning up the fundamentals. The channel partnerships take a bit to develop, and so you are not seeing a reflection of it at all. What you are seeing right now is a focused Salesforce where we divide the Salesforce into two pieces. We have one that's focused on capital sales and one that's focused on the patient, payer, and access. Okay. But more to come on that one. That's the good news. Right? That is true. Swayampakula Ramakanth: So Almog, you reaffirmed the guidance to $24 to $26 million for 2025, which means you are asking for a 21% growth from the Q3 number, I think, if my calculations are correct. And you grew based on your own press release, you grew 8% between Q2 and Q3. So what gives you the confidence that you can get that 21% growth? Almog Adar: First, hi, RK, and thanks for the question. As you know, Q4 is usually the strongest quarter for us at ReWalk for both products, AlterG and ReWalk, and what gives me the confidence that we will achieve our guidance is the existing backlog for both products and the strong pipeline that we are managing. Swayampakula Ramakanth: Okay. Thank you for that. And then on the AlterG, what happened there? Because it looks like there was a 15% decline. What needs to be done so that we can kind of just stabilize the ship and let it sail again? William Mark Grant: Yeah. RK, this is really about the core focus of the sales teams. We have a neuro rehab team that has been selling capital and selling into the neuro rehab space. And, frankly, what that does is that loses some of the focus that you really need. So we have started a couple of beta programs, which will expand out to the broader community as we go into the next year. But where we have a dedicated capital team that will be selling AlterG, and we will have a highly focused neuro rehab team that will be selling ReWalk. And this is in particular to the U.S. Just as a comment, Germany continues to be very successful in both efforts. We are really refocusing the strategy here in the U.S. Swayampakula Ramakanth: Okay. And talking about Germany, you were commenting a little bit on ReWalk 7, and Europe could be an opportunity as much as 40% of your total sales. So to that end, how is ReWalk 7 being introduced? And is it still the workers' comp insurance that you are looking into, or is it outside of that insurance segment, you have any visibility or actually could gain some adoption in other segments of the market? William Mark Grant: Yeah. When you look at Germany, I think the one thing, the key indicator, and I'm going to reinforce where we started, is there are 33 active patients that are in their rental period now. There's a high percentage of those that actually convert, and a high percentage of those convert in three to six months. And so for me, that's really the health of their pipeline and looking at how that business is growing, so it's a solid pipeline. Secondarily, we do have good coverage. About 40%, we have coverage directly, but we have 100% access to all patients. So the good news is when you look at Germany in particular, not the total European nation, but you look at Germany, we've got exceptional access. We have opportunities to expand outside of Germany as the MDD listings and other things come together. So we still have to actually get ReWalk 7 across all the payer entities and countries, but it gives us great access because of the CE mark. So more work to do on access, but trust me, we're doing really well. Swayampakula Ramakanth: Okay. The last question from me. I have been watching Lifeward Ltd. for a long time. And you know, the company did have a few situations where the financial overhang became quite a bit to bear. But, again, we are in that position now. And from your experience and from how you see it, how comfortable are you to get over this hump? And hopefully, is this the last time we do that? William Mark Grant: Yeah. RK, look. I'm not naive. Right? So, you know, this is a tough place for any company to be, but as you can tell from my voice and the plan that we put together and also my experience, I'm actually excited to be standing where I'm standing. And so it may feel and look like the bottom, but the reality of it is, you know, those in business actually feel like this is a great place. What I'm excited about is we have a good turnaround story. The fundamentals of the business are repairable in short order. There wasn't really anything broken. And so I'm excited about that. Secondarily, the innovation is exceptional. And so if you look at the products in the portfolio with the ReWalk 7, how strong the hardware is, how easy it is to iterate against for the software, same thing with AlterG, first in class name, first in class brand. Something you can also get after on innovation. And there are other products in this space that are available for aggregation at good value discounts. I'm excited about where we are. But, again, I want to start off. I'm not naive. This is not going to be an easy path. Hence, why we've been having so many conversations across the landscape. To make sure we can find the best partner to suit with. You know? And I'm optimistic that we're going to find the right one. Swayampakula Ramakanth: I am very optimistic too because I have seen this company go through a lot of things and they've always come out, you know, better than the previous, you know, better than the situation that they were at. So good luck, and thank you for taking all my questions. William Mark Grant: Yeah. Thank you. We'll talk to you soon. Operator: Once again, if you have a question, press 1. And we have a follow-up from Yale Jen with Laidlaw and Company. Please go ahead. Yale Jen: Thanks for taking my follow-up questions. And in terms of the AlterG, I remember last quarter, you guys were talking about expanding to the sports arena versus just in the medical space. Just like to get some updates on that effort, and thanks. William Mark Grant: Yale, you got a great memory, and I'm glad you brought that up. That is part of the broader strategy. So we have two beta regions right now within the U.S. where we've actually switched to having a capital sales team and to having a neuro rehab specialist. So the capital sales team focused on AlterG, rehab specialist, and the other focused on ReWalk 7. And so those efforts have just started. So I would expect that you're going to see some stronger results as we turn into the new year. But we've already made those fundamental changes. We do know from our customers and from our pipeline that we're seeing good growth. But we also haven't rolled it out across the entire U.S. So more to come on that as we actually execute against the transformation. But we were opportunistic. As we had changes in the space, we went ahead and put it into play. So we are going to have a team that's focused on high school sports, elites, and up. They're also going to be focused on rehab facilities, but they're going to get the support of the neuro rehab specialist that call on ReWalk. So you kind of get the double dip. So we're going to cover the rehab centers explicitly with two different people, and then you're going to have a dedication of a capital goods sale and then also someone who could work with patients, payer, and providers in the neuro rehab space. So bifurcating the space, we know from outside the U.S. Also, I know from my history is really important for the end user, for the customer and the buyer. So bifurcating the Salesforce will give us the focus needed to deliver against better fundamentals and also the growth you expect. Yale Jen: Maybe just to add on here is which is that in terms of the sports arena, would that be practically all self-pay instead of any other venue of reimbursement? William Mark Grant: You know, for sports, yes. But we do get a tremendous amount of the business from government and grants outside the U.S. So there is a good blend. Right? So it's all not just self-pay. So the DOD and others support us very well with all of our products. And then it's likewise outside the U.S. You know, we get tenders for these products on a daily basis. Yale Jen: Okay. Great. That's very, very helpful, and thanks a lot, and best of luck going forward. William Mark Grant: Thank you. Appreciate it, Yale. Operator: This concludes our question and answer session. I would like to turn the conference back over to William Mark Grant for any closing remarks. William Mark Grant: Hey, again, I want to thank everybody for joining the call today and just let everybody know that we're at a unique inflection point here at Lifeward Ltd., we're excited to be here and appreciate the support that we get from you. We're looking forward to meeting the expectations that you guys set in the market. With that, I'll close the call, and appreciate everybody's time. Talk to you soon. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Carolina Senna: Good afternoon, everyone. I am Carolina Sena, Cemig's IR Superintendent. Welcome to Cemig's Third Quarter 2025 Earnings Video Conference Call. This video conference is being recorded, and it will be available on the company's IR website at ri.cemig.com.br, where you also find the full package on our earnings call. [Operator Instructions] We will now start Cemig's video conference call with Reynaldo Passanezi Filho, CEO; Andrea Marques de Almeida, CFO and IR Officer; Luis Cláudio Correa Villani, Chief Information Officer; Sergio Lopes Cabral, Chief Commercialization Officer; Sérgio Pessoa de Paula Castro, Chief Legal Officer; Carlos Camargo de Colón, Gasmig's CEO; Iuri Araújo de Mendonça, Cemig SIM's CEO. For their initial remarks, I turn the floor over to our CEO, Reynaldo Passanezi Filho. Reynaldo Filho: Good afternoon, everyone. Welcome to our earnings call for the third quarter. It's always an opportunity and a pleasure to be able to bring to you our results and our efforts in another quarter. This is a quarter in which we have more difficult news. Of course, I would like to highlight some important topics that show the strength and the resilience of Cemig's earnings. About specific news on the quarter, we had distribution results that were affected by large clients that left the network. They migrated to the basic network about trading. We tried to decrease some positions. Also, that involves the submarket prices that have affected the results. What's important, and you know that when we look at our net position, it is very favorable in the scenario that we have for pricing today. The same thing happened with generation because of the difference in the GSF and the need to offset that with the spot price. This is what I would like to highlight. And despite of these topics, we moved on with a recurring EBITDA, proving the company's resilience, and we have confirmed the AAA rating by Moody's. We have 2 agencies now guaranteeing us a AAA rating, showing our resilience capacity to any type of scenario. We also had an award by a magazine called Veja Negócios, as the best energy company in Brazil in the top 30 award. And we also had the approval of our health care plan for retired employees. So we finalized a collective agreement with the union and that allows us to look for a positive structural solution that will preserve a positive transition to all of us. Therefore, they can keep their health care plan and also we'll be able to guarantee the company's sustainability. And the final topic, and Andrea is going to go over the details, which is our investment program. We are, once again, making the largest investment program in the company. For this quarter, we have BRL 4.7 billion, a significant increase when compared to last year. I believe we have a very positive message here, and we are maintaining our investment plan. And that means very positive results for the tariff review situation when that comes. So here, we have BRL 3.6 billion in distribution by itself. If we multiply that by the WACC, we know that the results bring additional revenue of a little over BRL 500 million just for that 9 months. So these are very cautious investments in regulated areas that when they get mature and the agency recognizes that we are going to have very positive results for the company. This is what allows us to have resilience today, and this is what allows us to have very positive results in the future, whether by these investments or by a very favorable position in the trading business in the near future. These are my initial remarks. Obviously, we are here to take your questions after the company's presentation. I'll turn the floor to Andrea, but I would like to stress the strength of this company and that we are very confident that we are going to move on with this investment plan and maintain the company's debt levels and the covenants and therefore, to keep on investing, keep on generating value. And this is going to get more mature according to the regulations and tariff regulations as expected. Thank you very much. Andrea de Almeida: Good afternoon, everyone. It's also a pleasure to be here with all of you today, going over our third quarter earnings. Now moving on, talking about our investments, as Reynaldo mentioned, we invested in the 9 months of 2025, BRL 4.7 billion. And this is how they break down BRL 3.6 billion in distribution, focused obviously in substations. This is a milestone and we have some pictures to show you the substations that we had in the quarter, but also 5,349 kilometers of low and medium voltage networks, which are very important to bring good service to Minas Gerais. For generation, we also mentioned our participation in the GSF credit auction with BRL 199 million. That's very nice. It guaranteed the extension of our concession in some of our plants. But also we had investments of BRL 149 million in expansion and maintenance. For transmission, we have our Verona project, around BRL 30 million, and we are still investing in reinforcements and improvements, and we are going to mention some of those and how the allowed annual revenue is performing in transmission. For Gasmig, the centralized project is the most representative one, around BRL 180 million being invested in the project. And for Cemig SIM, the delivery of new photovoltaic plants and 31 megawatts of installed capacity. Moving forward, we have the pictures of the 5 new substations, the ones this quarter, Andrelândia, Coronel Xavier Chaves, João Pinheiro, São Tiago, Fronteira. These are our highlights of new substations for distribution. Now turning to transmission. We see where in our operation we had improvements: Taquaril, Três Marias, São Simão, Itajubá, Volta Grande, Lafaiete. And we were able to add over the year, BRL 32 million of allowed annual revenue in our transmission business. And of course, this brings great results as well. Moving over to the figures. As Reynaldo mentioned, we have BRL 1.5 billion of EBITDA, and we see a drop in our EBITDA in around 16.3% when we analyze the recurring EBITDA, and I will talk about the recurring numbers, and then I'll talk about the nonrecurring events of last year, which were significant. We can talk about them as well. In generation, we already mentioned we had the effects of a lower GSF. We had to buy energy to cover for the GSF. So we had an impact of BRL 54 million. In the trading business, there was an impact here. And we already had the reduction in margin in the trading comparing '24 to '25. And we ended positions. We closed positions and of course, came from our exposure and other positions that were also open. So the closing of these positions and the purchasing of energy and the prices -- the spot prices that we have seen ended up having this impact of BRL 136 million for distribution. In '24, we had a change in the methodology, which was a reversal of our ADA and that reverted how we provisioned our ADA. We didn't have that in 2025. Therefore, there is a negative delta effect in distribution. And you will see that the market also has reduced it. And as Reynaldo mentioned, some clients left and went to the basic network. Therefore, this impacted distribution. Now turning to our net profit, the major investment that we are making has a greater depreciation impact than the funding, the increase of the interest rates, and of course, the increase of leverage of the debt also affects our net profit, the recurring net profit, and we realized that there was this drop of around 30.2%. For nonrecurring effects of last year, just let me remind you, they were very relevant. We had BRL 1.6 billion of the disposal of Aliança last year. Of course, this is not happening this year, and the tariff review for the transmission business of BRL 1.5 billion. These did not show in 2025. That's why we have also this relevant delta here. Let's move on. Here, zooming in, in GSF, when we compare GSF of 2024, we see the performance of July and September. GSF for 2024 going from 0.8 to up to 0.7. So we did have to purchase to deal with the hydrological risk and also the level of the energy price that we see this year. Of course, higher levels than what we have seen last year. Just September of last year, we had higher prices than this year, as you can check in the charts. So this is the impact. Now operating costs and expenses. We are growing below the inflation rate. And outsourced services, which is what draws our attention, we have an increase in areas where distribution has to invest more efforts to guarantee the improvement of services, whether maintaining, installations or in technology, and we still are working on the improvement with smart meters. We have to invest in that. And we have to fund technology. We have to prune trees and also clear the pathway. So that's where we have a higher increase in other expenses. Also, we had the sale of a plot. For personnel, we see a performance -- a good performance here. But here, we have in-sourcing of employees. We are bringing in our own teams so that we can cater to our clients faster in specific regions. And we really want to be more efficient in our service in regions. And we know that Minas Gerais is a largest state. So we want to be quicker serving further away areas. So we have an increase here in personnel in our headcount. Moving on, in line with our capital structure, we, yes, need the debt to fund our investments, but our leverage is at very safe levels. We are at 1.76 or net debt over recurring EBITDA. That's why we have our best rating in history. As Reynaldo mentioned, two AAAs and one AA+, and we are structuring our debt in a way to increase the average tenure. We reached 5.7 with the average term -- as average term. And the cost performance, we see the fact of the high cost of the interest rates, which affect all of us in the market and as well as Cemig, of course. Now for our cash flow. This is how we have been financing our activity, our investments. We start with cash. This is for 9 months, okay? So we start with cash of 2024 at BRL 2.3 billion. We have cash from operations of BRL 3.4 billion. We have the debentures issuance in May of BRL 5.1 billion, the debentures payments, of course, obviously. These are prior debentures of BRL 2.4 billion. Dividends and IOC, BRL 1.7 billion. Our activities for investments of BRL 4.5 billion. Earmarked funds here, BRL 187 million. We have to have this amount aside. So we come to our final cash of BRL 2.3 billion. For Cemig D, everything is more or less explained already. But effectively, we show a drop in EBITDA of 4.7%, especially because of the market reduction, whether it is by economic activity, once it's not that positive and also the temperature that was mild and the market dropped. Once again, the client that has migrated in the second quarter to the basic network. And of course, now in the third quarter, we see the full impact of this migration. In addition to that, we have the reversal of the constitution that I said of the ADA, as I mentioned before. And of course, in the net profit for Cemig D, we see the effect of our fundings and also the interest rates affecting that result. Talking a little bit now about the energy market. We had a drop of 4.4%, and we see the full effect in all the different markets and our distributing company coming from the rural, commercial, industrial, all the effects coming from all the markets. And in fact, here, we see this drop being caused by this client that has migrated for the basic network. Our operating indicators show that our collection is still very strong, focusing in the digital channels and Pix, our payment method is the cheapest. And now we are going to have the auto Pix as well. And we will be able to have campaigns so that people choose this payment mode, which helps us all and also reduces our costs. And this is growing as a good option of payment. And now our ARFA, the receivables collection index is at good, stable levels, and our regulatory OpEx and EBITDA show that we are within the regulatory standards. In terms of regulatory losses, we are also within the standards. There was a change in the criteria which already happened. We are now are integrating the effects of micro and mini generations that are distributed. So we are continuing to work. We have always keep working on losses. We have to install the armored meeting panels. We have to install the smart meters. And all the actions that we have to keep on taking so that this indicator is within the regulatory limits. For Cemig GT, once again, we talked about it. GSF was the main impact. We had to purchase energy to tackle the hydrological risk and the recurring net profit. Here, you can see the results as well. And Cemig GT was the one that had the main nonrecurring effects from 2024. So the major impacts are there represented last year. Therefore, we had a higher EBITDA in 2024 effects that are not replicated in 2025. And Gasmig, that also had impact for EBITDA reduction because there was a drop of 6% in the market and also the clients that migrated to the free market. This, once again, effect on Gasmig. And on this page, we have Cemig's recognitions. Reynaldo already mentioned, and that we are very proud to be recognized as the best energy company in Brazil by Veja Negócios. And there are other recognitions. We are also recognized as the best financial team in the infrastructure and energy sector by FILASA. We also got the transparency award from ANEFAC. We have always room to improve, but it's already great to be recognized by the 19th time by ANEFAC. And there is a new one, the ESG award. Cemig has thousands of awards in sustainability. And we are very proud, and it's always great to have another one. So ESG from ANEFAC in this category, Transformative Internship category. Therefore, I end my presentation, and I turn the floor back to Carol to ask -- to open the Q&A session and take your questions. Carolina Senna: [Operator Instructions] Our first question is from Victor Sousa, Genial Investimentos. Vitor Sousa: Hello, can you hear us? Carolina Senna: Yes, we can hear you, Victor. Go ahead. Vitor Sousa: My question is about Technical Note 53 that changes how you post losses in the distribution sector. I would like to understand if there is a possibility of republishing the level of losses that Cemig had. Now looking backwards here, I would like to understand if this change can end up generating any accounting retroactive effect regarding the application of this technical note if your concerned amount receivables, provisions and other adjustments, or is this just a prospective impact, just an accounting impact? And another question still on this note. How would have been the level of losses for distribution if this technical note did not exist? So in the same comparison base, what would have been the performance of Cemig losses? Would they have increased, decreased, or they would have been the same? I think this is important to understand for the process of assessing the distributing companies. Reynaldo Filho: Thank you, Vitor, for your question. Denis Mollica, our Strategy, Innovation and Sustainability Officer. Please, Dennis. Denis Mollica: Thank you for your question, Vitor. About the method used for calculation of losses. The method, even having it being reviewed, it does not -- it's not applied to past calculations. Even if we were to simulate that in the prior losses and the older losses, we would still be within the limits. So for practical accounting effects, adjustments have done from now on. And as it was said already, we are still within the regulatory losses, both before and after this technical note. So we have major actions to manage and to fight our losses, and they are within the limits with no effects that might affect accounting at all. And of course, yes, we also have here a positive effect on the tariff once we have the recognition of the impacts of the DG in the method of calculating losses. Carolina Senna: [Operator Instructions] Our next question is from Luiza Candiota from Banco Itaú. Luiza Candiota: It is about your trading strategy. Analyzing the changes in the energy balance in this quarter compared to the prior one. I would like to go over the details of the rationale regarding the short exposure when we look at '25, '26 and '28. What could be explaining this change that we see? Reynaldo Filho: Thank you, Luiza. I'll turn the floor to our Chief Trading Officer, Sergio Lopes. Sergio Cabral: First, thank you for your question. We have been doing a great effort to close our positions. Of course, we have some marginal sales that we are executing with clients that are strategic, but our position is not to open more positions. We want to close, as Andrea has mentioned. For this quarter, we could close positions in these past months. And also, we have the impact of gold that ended up making us go to the market to buy energy, but we are not opening positions. We are rather than that closing them. Carolina Senna: There are no further questions. We thank you all very much for your participation. And the superintendents of IR is available to take any other questions you might have. Therefore, we end Cemig's third call -- video conference call. Have a nice afternoon, and thank you very much.
Operator: Good morning, ladies and gentlemen, and welcome to MDA Space Limited Conference Call and Webcast. This call is being recorded on November 14, 2025, at 8:30 a.m. Eastern Time. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided at that time for you to queue up for questions. [Operator Instructions] I'd now like to turn the conference over to Shereen Zahawi, Head of Investor Relations at MDA Space. Please go ahead. Shereen Zahawi: Thank you, operator. Good morning, and welcome to MDA Space Third Quarter 2025 Earnings Call. Mike Greenley, our CEO; and Guillaume Lavoie, our CFO, will lead today's call and share some prepared remarks before taking your questions. A couple of housekeeping items before we begin. Today's call is accessible via webcast on our Investor Relations website. All our disclosures, including the press release, MD&A and financial statements are available from our Investor Relations website and from SEDAR+. I would also like to remind you that today's call will include estimates and other forward-looking information, which may differ from actual results. Please review the cautionary language in today's press release and public filings regarding various factors, assumptions and risks that could cause actual results to differ. In addition, during this call, we will refer to certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, these measures do not have any standardized meaning under IFRS, and our approach in calculating these measures may differ from that of other issuers and therefore, may not be directly comparable. Please see the company's quarterly report and other public filings for more information about these measures, including reconciliations to their nearest IFRS measures. And with that, it's my pleasure to turn the call over to Mike. Mike Greenley: Thank you, Shereen. Good morning, everyone, and thank you for joining us today to discuss our third quarter 2025 financial results. In Q3, the MDA Space team delivered another quarter of strong financial performance with double-digit growth in both revenue and profitability. Our revenues totaled $410 million, up 45% year-over-year. Adjusted EBITDA was $83 million, up 49% year-over-year, and adjusted EBITDA margin was a solid 20.2%. Operating cash flow was healthy at $33 million, and we ended the quarter with a strong balance sheet. Our backlog of $4.4 billion at quarter end provides revenue visibility for 2025 and 2026 and beyond. Q3 and the subsequent period was a busy one for MDA Space. In early July, we closed the previously announced acquisition of SatixFy Communications, a leader in next-generation satellite communication solutions based on in-house design chipsets. SatixFy's operations and full technology portfolio is now part of the Satellite Systems business area of MDA Space and integration activities are well underway. As you know, during the quarter, we also announced our selection by EchoStar to be the prime contractor on a new low Earth orbit direct-to-device satellite constellation valued at approximately USD 1.3 billion, whereby MDA Space was tasked with the design, manufacture and testing over 100 software-defined MDA AURORA direct-to-device satellites. EchoStar subsequently terminated the contract for convenience in September 2025. As per our contract, MDA Space is entitled to and expect to be compensated for all related termination costs and fees and is in discussions to finalize that contract termination agreement. While we are disappointed with the EchoStar development, as we have said previously, it is unrelated to MDA Space performance and our products and services. These remain in high demand. In events and forums around the world this fall, we continue to be encouraged by the high level of customer interest we are seeing in our space technology, which is uniquely positioned to serve the emerging and evolving needs of the space market. We are also pleased and honored to be named the 2025 Global Satellite Business of the Year by Novaspace and presented with the award, which celebrates excellence in satellite business at the annual -- at the annual World Space Business Week in Paris this past September. I want to take this opportunity to congratulate and thank our MDA Space team for their commitment, expertise and award-winning industry leadership. Subsequent to quarter end, we announced a $10 million equity investment in Maritime Launch Services, a Canadian-owned commercial space company that is developing Spaceport in Nova Scotia, Canada's first commercial orbital launch complex. The investment will help accelerate the Spaceport's readiness for orbital launch operations, providing reliable domestic launch capability for commercial, civil government and defense clients in Canada. We are also reaffirming our previous 2025 full year outlook, which we provided with our Q2 2025 earnings release with full year revenues expected to be between $1.57 billion and $1.63 billion representing year-over-year growth of approximately 48% at the midpoint of guidance and full year adjusted EBITDA expected to be between $305 million and $320 million, representing year-over-year growth of approximately 45% at midpoint of guidance. We look forward to delivering another year of solid financial performance in 2025. I want to take a moment to speak to what we see as an increasing market opportunity for MDA Space related to the growing focus on defense investment as NATO countries rapidly move to reinvest to build capabilities and infrastructure. With the space domain increasingly recognized as a critical domain for defense and security, we believe MDA Space is well positioned for this opportunity to extend our mission capabilities and support the strategic sovereignty and security requirements of Canada and its partners and allies. We are in the early days of a new and what is projected to be a prolonged investment cycle. We are noticing a change in pace and intensity of defense space conversations and are actively engaged in these discussions. I'll now give you an update on our 3 business areas and then pass it to Guillaume for a deep dive on the financials. In Satellite Systems, we continue to see good momentum in this market with our teams working to advance multiple requests for communication satellite solutions and a growing number of constellation projects from multiple markets and geographies. We are also seeing good activity levels from customers and our opportunity funnel remains strong. In Q3, our teams were busy advancing work on our programs. On the Telesat Lightspeed program, our teams are currently working on the program's detailed engineering and manufacturing preparation phase, including the critical design review, which is taking place this year. The team is also advancing work on the Globalstar next-generation LEO constellation, where MDA Space was selected as the prime contractor to manufacture more than 50 MDA AURORA software-defined digital satellites. The team is making good progress on the engineering, development and procurement activities for the program and is progressing work related to the critical design review milestone. In July, our Satellite Systems team also achieved an industry first by demonstrating digital beam forming and steering multiple beams with Ka-band direct radiating arrays using direct sampling. These are among the key features of the MDA AURORA Ka-band DRA and the demonstration marks a key milestone in the development of the digital payload technology for the MDA AURORA software-defined product line. We also continue to advance work on the initial Globalstar program, where MDA Space is the prime contractor to enhance Globalstar's LEO constellation through the addition of 17 satellites, which support SOS features and direct-to-device communication on certain Apple products. In Q3, the team progressed flight hardware production. The team continues to advance final satellite integration and test work with 9 spacecraft currently on the shop floor in our Montreal facility. Due to delays resulting from a number of factors, including the supply chain, the delivery of these satellites is now expected in early 2026. We are currently in discussions with Globalstar to address any potential liquidated damages that might result from this delay. It's important to note that our contracts with our supply chain are structured in a manner that embeds liquidated damage clauses as well. So we have recourse in the event of supplier delays. We're also making solid progress on our facility expansion in Montreal, Quebec, which will add 185,000 square feet to our existing satellite production facility. A portion of the office space is now complete and a number of engineers have moved in with great excitement. And we continue to finalize interior elements of the production facility, which remains on track to be completed this year. Once complete, it will be the world's largest high-volume manufacturing facility in its satellite class with capacity to deliver 2 MDA AURORA digital satellites per day. Finally, in late October, 21 low Earth orbit satellites for the Space Development Agency's Tranche 1 Transport Layer were successfully launched from California's Vandenberg Space Force Base and MDA Space was part of this mission. We provided all Ka-band and L-band antennas as well as motor control electronics for the satellites. The SDA's Tranche 1 Transport Layer, a mesh network of 126 satellites will deliver resilient, low-latency connectivity to support military operations in the United States. Our technology plays a key role in enabling secure and reliable communication across the constellation. Congratulations to everyone involved in making this achievement possible. Moving to our Robotics & Space Operations business. We continue to see good traction and activity levels on both the government and commercial fronts. In Q3, we continued to ramp up work volumes on Phase C of the Canadarm3 program, which we were awarded together with Phase D in 2024. During the quarter, our teams were busy actively building and testing engineering models of the system elements. Phase C will see us completing the final design before we move on to Phase D, which will see the construction, system assembly, integration and test of the full robotic system as well as a ground segment for command and control. We also announced in July that an MDA Space-led team was selected by the Canadian Space Agency to conduct an early phase study for Canada's proposed Lunar Utility Vehicle or LUV. Recall that the 2023 CSA -- recall that in 2023, CSA announced $1.2 billion in funding for a Canadian utility rover that would be contributed to the Artemis program and would support human exploration on the lunar surface. This initial phase study is a first critical step in defining the LUV mission concept and technology development plan. As part of this effort, the team will integrate MDA SKYMAKER, our full suite of scalable and modular space robotics derived from Canadarm technology, paving the way for scalable autonomous mobility solutions on the lunar surface. Moving to our Geointelligence business. Customer demand for our Earth observation offering remains robust, and we are seeing increased recognition of the role that commercial Earth observation satellites can play to provide near real-time data and analytics to governments and private enterprise. Notable awards in Q3 include 2 contracts to equip the Royal Canadian Navy's Halifax-class ships and up to 6 new Uncrewed Aircraft Systems. Part of the Intelligence, Surveillance, Target Acquisition and Reconnaissance Uncrewed Aircraft System, known as ISTAR UAS project, these new systems will significantly enhance the Navy's ability to detect and monitor potential maritime threats, both at home and abroad. The award includes an acquisition contract valued at approximately $39 million for the initial procurement of 2 uncrewed aircraft systems with options to procure 4 additional systems and an in-service support contract estimated at $27 million over an initial 5-year period to sustain operations with opportunities for extension beyond the initial period. We were also selected to deliver enhanced space situation awareness to the Department of National Defense. The standing offer awarded to MDA Space in partnership with Canadian-based Thoth Group underscores the growing importance of space domain awareness in safeguarding Canada's critical space assets amid a rapidly evolving and increasingly congested orbital environment. Building on MDA Space's proven legacy as a space domain mission partner and leveraging Thoth Group's initiative Earthfence radar capability, the new service integrates high-fidelity sensor data with secure cloud-based infrastructure optimized for tracking and assessing satellite and space objects in the geosynchronous belt, approximately 36,000 kilometers above the Earth surface. We also continue to advance work on MDA CHORUS. Our spacecraft electrical integration and testing activities continued, and we have all spacecraft units on hand. Solid progress was made in building and testing the SAR antenna panels, and we're building up the last of 4 panels in parallel with electrical and RF characterization and test activities of the second and third panels. On the ground segment side, the MDA Space team continues to track to development and release plans. Construction works also continues for a new mission control center from where MDA CHORUS will be operated. And while we are overall pleased with the performance of our supply chain, we have encountered some delays with certain units, which are impacting the program time line. As a result of those delays, we are now targeting a launch window for MDA CHORUS in late 2026. We are looking forward to deliver the constellation's enhanced functionality to our current and future customers with many active discussions of the future opportunities in our pipeline. I also want to provide an update with respect to a proposed class action claim that MDA Space was served subsequent to quarter end. The allegations are related to the announcement and subsequent cancellation of the EchoStar constellation contract that was announced by MDA Space in the third quarter of 2025 and the sales by certain insiders of shares after the announcement of contract and before its termination. MDA Space believes the claims are without merit and intends to vigorously defend itself. With that, I'll hand it over to Guillaume to walk us through the financial details. Guillaume Lavoie: Thank you, Mike, and good morning, everyone. For my update, I will walk you through our Q3 financial results and provide more details on our 2025 financial outlook. Overall, Q3 results were solid with growth in revenue and profitability and a strong balance sheet and backlog, providing us good revenue visibility for the remainder of 2025, 2026 and beyond. Total revenues for the third quarter were $410 million. This represents a $127 million or 45% increase over the same period last year. The year-over-year increase is driven by higher volumes of work performed in our Satellite Systems and Robotics & Space Operations businesses. By business area, revenues in Satellite Systems of $284 million in the third quarter were $116 million or 69% higher compared to the same period in 2024. The growth was driven by the ramp-up of the Telesat Lightspeed program and the Globalstar next-generation LEO constellation program. In Robotics & Space Operations, revenue of $78 million in the latest quarter represented a $12 million or 18% increase versus Q3 of last year, driven by the continued ramp of Phase C of the Canadarm3 program. Revenues in our Geointelligence business of $48 million in the latest quarter were in line with our expectations and the levels reported in that business segment last year. Moving to gross profit. For Q3, gross profit was $108 million, representing a $32 million or 43% increase over the same period last year, again driven by higher volumes of work. Gross margin in the latest quarter was 26.4% and compares to 26.8% for the same period in 2024. Adjusted EBITDA in the latest quarter was $83 million compared to $56 million in Q3 2024, representing an increase of $27 million or 49% year-over-year, again, driven by higher work volumes as we continue to execute on our backlog. Adjusted EBITDA margin was 20.2% in the latest quarter, consistent with the company's full year margin guidance of 19% to 20% and compares to adjusted EBITDA margin of 19.7% reported in the third quarter of 2024. Adjusted net income for Q3 was $46 million compared to $35 million in the same period last year. The year-over-year increase of $11 million or 33% is primarily driven by higher operating income after adjusting for the amortization of intangibles expenses incurred in Q3 2025 and attributable to the SatixFy Communications transaction, which we've closed on July 2, 2025. Moving to our backlog. We ended the quarter with $4.4 billion in backlog, a decrease of $185 million or 4% compared with the backlog as of September 30, 2024, driven by continued conversion of our backlog into revenue. Last 12-month book-to-bill ratio stood at 0.9x at quarter end and our current backlog provides us with high revenue visibility for the remainder of 2025, 2026 and beyond that. Moving to CapEx. We remain focused on making investments in the business to support our strategic growth initiatives. In Q3, we spent $70 million on capital expenditures compared to $53 million last year as we continue to progress our development of CHORUS, where most of the investment has been incurred. And other growth initiatives such as the expansion of our Montreal satellite manufacturing facility. Cash from operations during the quarter generated $33 million compared to a cash generation of $259 million in Q3 2024. The year-over-year change was primarily due to working capital fluctuations. Free cash flow was negative $37 million in the quarter, and compares to $205 million for the same period in 2024, with the year-over-year change attributed to the previously noted working capital fluctuations. Excluding growth CapEx, free cash flow was $26 million in the latest quarter and compares to $253 million for the same period last year. Moving to our balance sheet. We ended the quarter with cash of $196 million, available liquidity of $404 million under our revolving credit facility and total liquidity of $600 million. Our net debt to last 12 month adjusted EBITDA ratio stood at 0.3x at quarter end. The slight uptick in leverage is due to the completion of the previously announced SatixFy Communications Ltd. acquisition, which closed again on July 2, 2025. Recall that the company used cash on hand and borrowings from our revolving credit facility to pay for the transaction. In summer, this was a strong quarter, and I'd like to thank our teams for their dedication and efforts to make this happen. Let me now turn to our full year outlook. As Mike noted, we are reaffirming the previous 2025 outlook provided in our Q2 '25 earnings release. For fiscal '25, we continue to expect full year revenue to be between $1.57 billion and $1.63 billion, representing year-over-year growth of approximately 48% at the midpoint of guidance. We continue to expect full year adjusted EBITDA to be between $305 million and $320 million representing year-over-year growth of approximately 45% at the midpoint of guidance and approximately 19% to 20% adjusted EBITDA margin. We reaffirm capital expenditures to be between $210 million and $240 million, comprising of growth investments to support the previously outlined growth initiatives across our business areas. Lastly, we expect full year free cash flow to be neutral to positive in 2025. Note that the financial outlook provided does not factor any potential impact from tariffs. We continue to expect our potential exposure, if any, to be manageable. We are monitoring the situation and may elect to update our financial outlook if deemed necessary. With our $4.4 billion backlog, combined with a robust $20 billion opportunity pipeline, we are confident in delivering continued growth while remaining focused on disciplined execution and profitability. Mike, with that, I'll turn it over back to you. Mike Greenley: Thank you, Guillaume. With that, operator, we will open it to questions. Operator: [Operator Instructions] First, we will hear from Benoit Poirier at Desjardins Capital Markets. Benoit Poirier: Yes. Mike and Guillaume. Maybe first question, could you comment about your latest updates with Globalstar and also how a potential sale would impact your contracts? So if ultimately, Globalstar decided to sell itself, what -- if any, protections do you have in place? I know this is out of your control, but if you could provide any color, that would be great. Mike Greenley: Thanks. As you would appreciate, as a matter of company policy, we can't really comment on rumors or speculation concerning another company or what people are talking about it. For us, with Globalstar, we're actively involved in executing on our 2 contracts. We are making good progress on those 2 contracts as we've indicated. On our original contract, we have 9 satellites being completed and getting ready to be shipped out in early 2026, ready for launch. And in our second larger contract, we continue to execute well on those satellites moving forward. These satellites are important to Globalstar for their constellations, and we are actively engaged in getting them delivered. Benoit Poirier: Okay. That's great. And in terms of outlook, obviously, you're very encouraged with all the discussion you have. But could you maybe quantify your bidding pipeline and talk also about how it has evolved versus last quarter? And I would be curious to see where do you see the greatest opportunities among them. Mike Greenley: Sure. The company pipeline remains at around $20 billion over the next 5 years of specific opportunities that we are speaking with people about in the markets. Of that $20 billion, approximately $13 billion of it would be in the Satellite Systems business area, primarily in the area of constellations for both broadband satellites and/or direct-to-device satellites. After that, there'd be solid opportunities in Geointelligence, specifically around -- the larger opportunities would be around satellite systems for government programs, for Earth and space observation. And then a solid pipeline in robotics for robotics and rover systems for both government and commercial programs. Benoit Poirier: Okay. And you mentioned some delays related to Globalstar and CHORUS. So what could be the -- Mike, the potential outcomes for MDA in terms of liquidated damages? And could you be maybe more specific about what's causing the delays? And is it the same supplier? And do you see an opportunity to do some vertical integration? Mike Greenley: Yes. In Globalstar and CHORUS, I indicated in each case, there was some delays and in each case due to activities in suppliers. They are different suppliers, different topics. Just different people having challenges that we've worked with them to work through. In each case, we've worked through them and have solutions now for the -- to move forward, but they did cause some delays. In the case of Globalstar, to answer your question about liquidated damages, it is normal. All of our firm fixed price contracts have liquidated damages clauses. And so it's been disclosed by Globalstar and by ourselves that those clauses do exist. And as a result of the deliveries now being late due to the supplier issues, that it's eligible to talk about liquidated damages clauses. And these are in discussion. It is normal for us to have back-to-back liquidated damages clauses with our suppliers so that if they are late, then we can impose liquidated damages on them. So all of this is a discussion point. The focus is absolutely just getting the satellites finished by getting them out in early 2026 and getting them to launch. And so that is all well underway and everyone's entire focus across all the teams involved in that project. In CHORUS, that supplier delay had occurred, a different supplier, again, resolved. And so now we're completing the assembly of the units on that satellite and getting it ready out for test. And so the implications are what we stated is that we shifted our target launch date to the end of 2026, and we continue to progress on that basis. Benoit Poirier: Okay. And last one for me, just for Guillaume. In terms of capital allocation, given the recent drop in share price, how does it impact your capital allocation strategy? Do you still see some attractive M&A opportunities out there? Or do you see an opportunity for buyback or -- yes. Guillaume Lavoie: Yes. Thank you, Benoit. We obviously always look at capital allocation. I'm not going to comment too much on the share price movement other than saying that, yes, we are where we are right now. It's not just MDA. The whole sector is down. Our strategy regarding M&A hasn't changed really. We're focused in 2 areas. One of which is, if there are opportunities for us to continue to strategically pursue supply chain opportunities, we'll do that. We did that this year with SatixFy. And the other area of focus for us is to consider expanding in new regions, primarily targeting Europe and the U.S. And obviously, we always think about what type of financing we would need for such potential acquisitions, but I'll leave it at that for the moment, Benoit. Operator: Next question will be from Konark Gupta at Scotiabank. Konark Gupta: I wanted to ask you, Mike, you mentioned in the opening remarks about space defense. I think you're attending and maybe presenting at a conference next week in Ottawa. What kind of space defense opportunities are we talking about here? Like is it all constellation related, just geo, maybe robotics, it's all across? Or anything specific you're focusing on in the near term? Mike Greenley: Sure. From an MDA Space capabilities perspective, space defense provides a number of opportunities. One of the areas would be in defense communication networks. You would have heard in my remarks that we do provide key technologies into the communication satellites in the United States for their Department of Defense communication satellites. We have opportunities in multiple countries to provide satellites and satellite technologies for military communication networks. A second area would be in Earth observation. We own and operate RADARSAT-2 where, as we just discussed, heading towards the launch of CHORUS. Our provision of synthetic aperture radar-based imagery to defense and intelligence customers around the world is obviously a strong defense asset to provide Earth observation for military surveillance operations. Another area is space observation, whereby it was announced in my remarks that we just recently picked up a new contract in partnership with [ Thoth Group ] in Canada to provide space observation to track the activities of satellites in orbit, which is tracking what people are up to and who's moving around and who's going where in orbit with their satellites, which is an important defense-related activity. There are a number of opportunities in Canada and around the world for us to provide space observation technologies, both from the Earth and from orbit, which means from satellites to be able to contribute to space domain awareness or space observation pictures. Once you observe activity in space, sometimes you want to do something about it from a military operations perspective, which is starting to open up a market in the counter space domain. I call it the counter space domain. You would have seen announcements in some countries recently talking about guard satellites, for example. These are defense departments putting up satellites that can sense what other satellites are doing that can maneuver to protect satellites and keep other satellites away from them and/or go and inspect or investigate other satellites from a military perspective. Our really strong experiences in satellite design and operation and proximity operations from our 40 years of robotics activity. We have a very strong background in proximity operations and our experience in robotics. All of these capabilities put us in a strong position to be able to offer counter space or guard satellite solutions for the market. And militaries around the world are increasingly looking for those as the space domain becomes more congested. So that's the long story. The short story is there's opportunities in all 3 business areas. Konark Gupta: That's great. Great to hear that. And if I can follow up, your recent equity investment in Maritime Launch, what's the idea there? I mean, are you guys looking to eventually become more vertically integrated like with obviously SatixFy now on the supply side and now the launch maybe? Or is it just a one-off to support Canada's missions? Mike Greenley: Yes, it's a bit of a longer-term strategic view. Certainly, the words that you just used, which is to support the Canadian space ecosystem is an important element of this. MDA Space, as the largest space company in Canada has a number of roles in addition to delivering a good business. We also have a leadership or championship role that we have in the country to be able to help make everything work in the space ecosystem. One of those areas, as countries get more interested in sovereignty, being able to just take care of themselves as a country. One of the key areas from the space domain for both civil and military purposes is to have domestic launch capability. Canada is moving towards this. Maritime Launch has been advancing this over the last few years. So our small investment gives us a position with the company. It gives us certain investor rights such as Board positions and the like, so that we can be involved in helping to shepherd the advancement of that capability in the country. Over time, we'll continue to monitor that participation, could result in increased investments in the future or not. But it certainly allows us to leverage our size, scope and leadership and different skill sets to the Maritime Launch capability to ensure that Canada advances an effective domestic launch capability through the Spaceport, Nova Scotia. Konark Gupta: Got it. And last one for me before I turn over. Maybe Guillaume can answer this. Looking at the working capital swing, I think it's pretty normal. These swings are happening. Anything out of the ordinary you could point out in Q3? And I'm specifically also looking at the contract liability item. I think it went up. Some is obviously driven by SatixFy acquisition because you tuck them in, but it seems without SatixFy, you also got some increase in liabilities there. Is there like -- is it driven by the new contracts? Or it's driven by the existing contract like SatixFy, Globalstar? Guillaume Lavoie: Yes. Konark, so first of all, the fluctuation in Q3 is totally normal. We've been saying all along that from one quarter to the other, we will be seeing working capital fluctuations. So we had a bit of a reversal this quarter. Overall, our free cash flow performance year-to-date is quite strong. But yes, we maintain our outlook of neutral to positive for this year. We are always being conservative on the cash planning. We're happy with the progress with our programs and overall with our cash management. And from a contract liability, this is just like us progressing the work. And you can see the balance sheet fluctuations associated with that, but there was nothing outside of the ordinary for this quarter, Konark. Operator: Next question will be from Thanos Moschopoulos at BMO Capital Markets. Thanos Moschopoulos: Mike, with respect to the pipeline for Satellite Systems, how would you characterize the mix between government relative to commercial opportunities and how that's evolved? Is it a good split? Or is it heavily weighted towards one versus the other? And then on commercial, are we talking mostly about incumbent operators looking for satellites? Are we talking about maybe corporate entities who are new to the satellite industry, but want to buy infrastructure? Is it start-ups, all of the above? Just any color on the nature of the customers there would be helpful. Mike Greenley: Sure. Yes, satellite opportunities are mainly commercial. There are some government opportunities, but they are mainly commercial, to answer your first question. On commercial opportunities, they are varied. They include experienced satellite operators for sure. Maybe the majority would be experienced satellite operators around the world. There are some that are pulling together new investments to be able to produce space-based networks as a business opportunity. And then there are some that would be corporations looking to have networks. But the majority would be established financed space network operators. Thanos Moschopoulos: Okay. And with respect to your digital cable technology, how important is that becoming a differentiator? Like obviously, you've talked in the past about new customers needing some education maybe in terms of the benefits. But are your advantages there now becoming more recognized? Or are most of the RFPs still looking for analog satellites? Mike Greenley: I think that people are increasingly appreciating the opportunity that digital satellites offer. I think that in my remarks, I mentioned our demonstration capability that we now have in our facility in Montreal to be able to demonstrate dynamic beam forming. This is very important for customers to be able to come in and actually see dynamic beam forming in operation. So to have those technologies advance to the demonstration level is extremely important for those customers to be able to not only mathematically realize the benefits of a digital satellite, but to visually see and experience that technology in operation. I think that, that is really important. I think that our completion of our expanded satellite production facility, high-volume production facility, as I mentioned, with engineers now moving into their spaces, in an exciting development and thus now finishing the manufacturing environment as we complete 2025 puts us in a position where we not only have this digital technology, we can demonstrate this digital technology, but we're entering into a production mode where we can do it at scale and at pace. And so the space-based network market is competitive. There's a lot of activity in this sector, especially in the direct-to-device element of the sector. And so the race to revenue is important. And so our ability to be able to have shorter high-volume delivery times of an advanced demonstratable digital technology is definitely a differentiating element of competitive conversations. Operator: Next question will be from Doug Taylor at Canaccord Genuity. Doug Taylor: Mike, I want to ask another question on the direct-to-handset (sic) [ direct-to-device ] market. You referenced a very dynamic situation right now with some of the participants. I think investors are grappling with what the end state of that market looks like with all these vertically integrated participants moving pretty quickly to consolidate spectrum. Can you talk about how you see that end state evolving here from where you sit in your conversations as a supplier into that market? Mike Greenley: Yes. I think it's -- I agree with your characterization of it as being dynamic. It's certainly a busy time. There have been some moves by players. Obviously, the SpaceX acquisition of EchoStar spectrum has been -- was a sudden development that suddenly occurred and is causing people to adjust. I think that there are a number of parties in the market that are really running, like I say, the race to revenue, really working hard and fast to get their direct-to-device network projects moving forward. And that's an important thing. As a supplier of satellite technology into those markets, there are definitely in our pipeline, a number of opportunities for us to provide our MDA AURORA digital satellite into folks that want to build and operate direct-to-device networks. And those conversations continue. I think that sometimes in the pipeline, as people look at their plans and competitor plans and how to collaborate with each other and stuff, it is resulting in some dynamic conversations to be able to ensure that folks that do want to collaborate can collaborate in the market space in the future, and that's kind of interesting to be able to work through with people. But it's a dynamic busy time. That's for sure. But the opportunities are there. Doug Taylor: Okay. And a lot of focus on that direct-to-handset application of the LEO network. And maybe I can flip to talking about some of the other parts of that communications satellite market being the broadband and satellite-based backhaul applications, more of that Lightspeed type model. How the pipeline on that side progress and that market evolved in response to all this? Mike Greenley: Yes, it's solid. It's definitely solid. There are strong commercial opportunities there to have Lightspeed like relationships with folks around the world. And so we're actively engaged in those types of conversations in our pipeline. There are government opportunities there. One of the geopolitical shifts over the last year in 2025 has been the interest in countries to have increased sovereignty, defense sovereignty, security, sovereignty, economic sovereignty, which can include at times in some countries' minds, the importance of having domestic communications capability and/or domestic Earth observation capability for their country. And so these are -- as folks are looking at increased government spend to increase sovereignty and security of their nations, communication systems and observation systems are key elements, of those sovereignty type postures. And so both in the commercial sector and the Telesat Light companies around the world, in addition to the government sector, there's an increased interest in space-based communication networks. Doug Taylor: And so last question for me with everything that you've just said, and I think you previously talked about the potential for another LEO satellite constellation award within the next year or 12-month time frame even after the EchoStar situation. Is that still the case? Are there programs out there with that kind of immediacy in the pipeline? Mike Greenley: Yes. Certainly, the order pace is always up to the customer in terms of when they want to move out and place an order. I always look at and talk about the maturity of bids. Bids get more and more mature and more and more specific when you're interacting with customers. And so yes, there are a number of opportunities out there that are at a maturity level where people could choose to move over the next year. And so we -- that remains a possibility for sure. And I should emphasize it's a possibility, but it's not a necessity. The backlog that Guillaume speaks to in the company of over $4 billion is extremely strong. It's a good position to be in. It's really important in our focus to execute well on that backlog. But to have the current size of our company, basically a 3-year backlog of signed contracts in hand that we're executing on, we're in a good spot. It means that over the next couple of years, we definitely have to get more orders and have a lot of opportunities to do so. Some of them could come in the next year for sure. But no panic there, but there is a lot of opportunity that we're working as we move forward within that pipeline. Operator: Next question will be from David McFadgen at Cormark Securities. David McFadgen: Yes, a couple of questions. Can you give us an update on what's happening with that Artemis contract, the USD 4 billion contract for the vehicle, the Lunar vehicle? What's happening there? I thought that to be awarded this year? Mike Greenley: The original plan -- that project is called the Lunar Terrain Vehicle System (sic) [ Lunar Terrain Vehicle Services ] or LTVS. We are on one of the teams for the Lunar Terrain Vehicle System (sic) [ Lunar Terrain Vehicle Services ] and -- which is the Lunar Outpost team and really good progress on that team's evolution of its rover solution and in its bid to NASA. It was NASA's intent to announce a winner to that. I believe there's been some delays in that due to the government shutdown in the United States. So there's only certain things that you can do during a government shutdown in the mindset. As -- it looks like that's getting cleaned up right now. So as that gets cleaned up, hopefully, they can complete their assessment and announcement process. David McFadgen: Okay. But do you -- would you expect they would announce that contract award in 2025 or now it's more 2026? Mike Greenley: We still think there's a chance of talking about it in 2025. We don't obviously control the pace of the U.S. government making announcements, but our indications are that there's still a chance that the winner could be discussed publicly in 2025. If not, obviously, it would drift into 2026, but we're still hopeful that something could be said this year. David McFadgen: Okay. And then what about the Canada's plans for the RADARSAT Constellation Mission replacement? I haven't heard anything about this for quite some time. [indiscernible] on that? Mike Greenley: Yes. So Canada announced, what was that, about a year or more ago, that they intended to -- that they put some money aside to do a couple of things, which was to add some additional radar satellite capability into the RADARSAT Constellation Mission to ensure its resiliency moving forward in addition to looking at radar-based or Earth observation-based services moving forward into the future, and doing some studies on the next-generation synthetic aperture radar or radar-based Earth observation capability for the country. There are activities in all 3 of those areas going on within government and back and forth asking industry for inputs in those areas. And so they do -- they all continue to progress. I don't have a focused estimate of like when those things would come out in public or whatever. But there's definitely solid progression of those things in the -- inside government and in the government to industry kind of Q&A information exchange activities. David McFadgen: Okay. And then maybe if I can ask a couple of questions on your pipeline. So within the satellite opportunity pipeline, is there -- are you in discussions with Apple, Globalstar to expand the number of satellites on the second constellation? Mike Greenley: Right now, our focus with Globalstar is execution on our current work. And so that's our absolute focus right now is to make sure that we get those satellites built and moving forward into orbit. David McFadgen: Okay. And of the $13 billion pipeline that you said on the satellite side, how much of that would be, say, direct-to-device versus broadband? Mike Greenley: I don't have an exact percentage number, but it's -- I'm just thinking through my head in real time here. It might be 50-50, 60-40 kind of thing, but there's a legitimate handful of each of those things in the pipeline. David McFadgen: Okay. And then just lastly, you talked about defense and how defense spending is going up around the world. We all know that. Is defense a material part of the pipeline right now? And is it growing? Mike Greenley: I would say it has the potential to grow in the pipeline. We do have some significant opportunities for sure in our pipeline related to defense, but that is an area where it's -- and that's why I made remarks about it in my comments because you can feel the number of conversations increasing in the defense sector. And so that is likely to result in further and new opportunities in the pipeline going forward. So I do expect that based on -- we don't put things in the pipeline until we can talk about a program with a budget that we think is going to move and then we put it in the pipeline. We will have all kinds of conversations, obviously, with people about the potential to do things before they become a specific opportunity that's got parameters around it. And so in the defense sector, you can certainly feel the intensity of the conversation is increasing. The number of questions people are asking are increasing. And so I think that there will be the opportunity to add more defense to our pipeline as we go forward in the future. Operator: Next question will be from Ken Herbert at RBC Capital Markets. Kenneth Herbert: Maybe Guillaume, can you level set us on what you expect -- how much of the third quarter revenues were from EchoStar and what you expect sort of the full year run rate to be on that? And should all of maybe those negotiations be cleaned up? Or would there be any sort of final recognition of EchoStar revenues or reimbursements into '26? Guillaume Lavoie: Thank you for the question, Ken. So we have not recognized a lot of revenue, obviously, for EchoStar. It was very small in Q3. And now we're working with them to have a contract termination agreement. So I won't speculate on the timing of that. And that's why we left our guidance basically intact because that's one thing that's in flux right now, but very minimal revenue associated to that contract in Q3, Ken. Kenneth Herbert: Okay. And you've obviously seen some -- you called out supply chain challenges in both CHORUS and on Globalstar. Are you seeing any incremental risk on the supply chain with Lightspeed? And I guess, do the challenges or delays with -- site delays with Globalstar and CHORUS, do those represent maybe any opportunity to pull Lightspeed to the left a bit? Mike Greenley: I don't think there'd be an opportunity -- I don't think that would represent something to pull Lightspeed to the left. I also don't see any unique, whatever the word you said was incremental supply chain risk. I'm just thinking through the elements of Lightspeed at the moment. So I think that's an issue -- that's not an issue that I would be thinking about at the moment. The Lightspeed project, like I mentioned, continues well through its critical design review process. And so -- and you would have heard from their CEO recently on their earnings call. Kenneth Herbert: Just finally on that, Mike, any update on timing as to when the options on either of the existing contracts could potentially when we -- when is a realistic time frame to expect those could be exercised if they are going to be? Mike Greenley: Yes, I don't really have any specifics on that. The -- all those customers, the customers with options are constantly looking at their businesses and their business activities and the health and size and capacity of their networks to meet the demand that they want to load up on their network, and they'll make their calls there. So I don't -- Yes, I don't have any specific guidance in terms of when we would expect those things. They remain valid. They remain active as opportunities for us, but no specific time estimates. Operator: [Operator Instructions] Next, we will hear from Kristine Liwag at Morgan Stanley. Justin Lang: This is Justin on for Kristine. Mike, just on the $13 billion satellite systems pipeline, I know you've mentioned in the past that the opportunities can span anywhere from $1 million to over $2 billion. Is there any way to put a finer point on that? Maybe how many discrete opportunities are in that pipeline that are valued around $1 billion or more potentially? Mike Greenley: Yes, I don't have a specific number in my head, but there's certainly the number. I would say the range of those would be sort of $250 million to $2.5 billion plus, like in terms of the range of sizes, it depends on the size of constellations that people want to talk about and what orbit they're in. I think that there are definitely a number of them. I think your question was how many are over $1 billion. I don't have a specific number, but there are definitely more than a handful. Justin Lang: Okay. Great. And then just a quick one. Guillaume, the free cash flow guidance looks like it would imply significant free cash flow burn in 4Q if you get close to that neutral guide, and that would be on lighter implied CapEx. So just curious what you're expecting from working capital to end the year? And if you can provide any color on the drivers there would be helpful. Guillaume Lavoie: Justin, so look, we haven't changed our guidance. I think overall, when I take a step back here, we're looking at significant growth year-on-year on the top line. I mean, at the midpoint, it's going to be 48% adjusted EBITDA, 45% growth. And yes, we continue to invest in our business. So far from a CapEx standpoint, we've been sort of spending at the rate we were expecting. And we have a good position on the free cash flow year-to-date, slight consumption in Q3 related to working capital. And so we decided to keep our neutral to positive guidance. I think we're in a good position. And I think that we always plan conservatively. We could see some working capital consumption in the fourth quarter. But again, back to Konark's question, I mean, this is normal as part of our business. And for the time being, we remain focused on getting our milestones completed and then invoicing our customer, getting the cash in the door and then obviously managing our outflows. And as I mentioned earlier, we're very pleased so far with how we've been able to manage our working capital throughout this year. So I'll leave it at that. But for now, there's no concerns on the working capital from my perspective for the fourth quarter. Operator: At this time, Mr. Greenley, we have no further questions registered. Please proceed. Mike Greenley: Okay. Well, thank you. Thanks for the operator, and thank you, everyone, for your time this morning. We look forward to updating everyone on our progress at our next earnings call. Have a great day. Operator: Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask that you please disconnect your lines. Have a good weekend.
Operator: Ladies and gentlemen, welcome to the Analyst Call Q4 Fiscal Year 2025. I'm Moritz, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Tobias Hang. Please go ahead, sir. Tobias Hang: Good morning, and a warm welcome to the Siemens Energy Q4 Fiscal Year '25 Analyst Webcast. Today, we are here in the factory in Berlin. First of all, I really have to say that we are sorry that you had to wait for 5 minutes. Of course, we're going to add that -- the 5 minutes up on the end of the call, so that should happen, please excuse for that. As you probably noticed already, we pre-released our results yesterday night and published all the documents around 9:00 p.m. on our website. Now I'm pleased to have with me here President and CEO of Siemens Energy, Christian Bruch; and Maria Ferraro, our CFO. And in the next 30 minutes, Maria and Christian will take you through the developments of the last quarter and the fiscal year 2025. Thereafter, we will continue with our Q&A. For the entire webcast, we estimated roughly 1 hour. So with that, I would hand over to Christian. Christian Bruch: Yes. Thank you very much, and also good morning, everybody, also from my side, and thank you for joining our quarter 4 call. We do it here from the factory in Berlin, and that is something I wish you could see it really continuously because we have our products around us, and this gives a good atmosphere. As we wrap up fiscal year 2025, I would like to take a moment to reflect on Siemens Energy's journey over the past 5 years. And when we listed Siemens Energy on September 28 in 2020, we had a clear ambition, focus and deliver on fundamentals, co-create innovations with customers and partners and start the energy transformation, all this based on our purpose, reenergize society. And since then, we have come a long way. We are offering the right products, solutions and services to serve our customers in a changing energy world, driven by higher electricity demand and the need for energy security. The trust of our customers placed in us and the strength of our portfolio is reflected in our continuous revenue growth since our listing in total by 40% to almost EUR 40 billion in fiscal year 2025. At the same time, our order backlog has increased by around 75%, bringing us to another record high level of EUR 138 billion at the end of fiscal year '25. This is underlining the confidence of our customers and our ability to deliver complex critical infrastructure energy projects and the strong order backlog provides us good visibility for fiscal year 2026 and beyond. Our journey has not been without challenges. We started in a world which was determined by COVID. And in fiscal year 2023, we were confronted with severe challenges at our wind business. Our focus on operational discipline and stringent execution brought us back on the successful path. And since then, the resilience of the company has been strengthened. The result of this journey, a 350 basis point profit margin improvement since our listing and a 1,500 basis point improvement since fiscal year 2023. Looking at this development, I want to thank everyone working at Siemens Energy, our team purple to make this happen. I'm proud of what the team at Siemens Energy has achieved together so far and the journey has just started. If the past 5 years have been about building the foundation and fiscal year 2025 was the start of a growth journey with continuous margin expansion. Earlier this year, we upgraded our guidance at our half year results to reflect our confidence in the development of our business. And I'm pleased to report that we have achieved the top end and partly overachieved our upgraded targets. Fiscal year 2025 has been a year with strong performance. We saw 15% revenue growth, driven by robust demand across our core segments. We achieved significant margin improvement of 500 basis points year-over-year, thanks to operational excellence and the execution of more profitable orders, which we signed in the last couple of years. And finally, we generated an excellent level of free cash flow. While Siemens Gamesa continues its turnaround journey, the rest of our portfolio has demonstrated remarkable performance. For the fiscal year 2026, we have set ourselves ambitious targets. We also upgraded our midterm targets for fiscal year 2028 substantially. For fiscal year 2026, we target a profit margin before special items of 9% to 11% and revenue growth between 11% and 13%. Midterm, for the fiscal year 2028, we are aiming for a low teens percentage range revenue growth and a profit margin before special items of 14% to 16%, more than doubling current margin levels within 3 years. And these targets are based on a robust order book, a culture of accountability and operational excellence. Looking into the development of orders and revenue in the different regions in fiscal year 2025, we have seen strong market momentum and are confident that this will continue in the next years and be a strong base to achieve our midterm targets. During the last year, all our regions, Europe, the Americas, Asia Pacific and the Middle East delivered consistent expansion in demand. The underlying favorable trends are intact and continuing for the foreseeable future as the demand for electricity and the need for modernization and expansion of the electrical infrastructure should proceed to increase. Our portfolio covers to a large extent, today's and future technologies to meet this demand. And next to the coal to gas shift, peaker demand and the generally higher electricity demand from developing societies as well as increase of electrification, 2025 order intake has been substantially supported by the electricity needs for data centers. Especially in the U.S., this has driven unprecedented demand for gas turbines and grid infrastructure and translated into record high order volumes for Siemens Energy in fiscal year 2025. We almost doubled the number of gas turbines sold globally from 100 units in 2024 to 194 units in 2025. Grid technology more than doubled the sales to hyperscalers to over EUR 2 billion in fiscal year 2025 driven by North America, but also across all other regions. It is for us a deliberate target to diversify the origin of our orders, ensuring that our growth is balanced and resilient. Based on the current growth momentum, we are adapting our footprint and aligning our operations to regional demand and customer needs. The increasing regional setup helps us to mitigate the continuous geopolitical challenges like tariffs, which we, for example, experienced in the second half of fiscal year 2025. Let me give you some additional highlights on new projects from the last quarter. In our gas service business, we sold in the quarter 5 gigawatts of gas turbines and signed 11 gigawatts in reservation agreements. And this was mainly driven by Saudi Arabia and the U.S. With that, the total commitments increased to 54 gigawatts in fiscal year 2025, thereof 26 gigawatts orders and 28 gigawatts reservations, 12 gigawatts are related to data center. Pricing momentum for gas services continued to be favorable and is expected to continue that way in the foreseeable future. Grid Technologies achieved the strongest quarterly order intake in fiscal year 2025, driven by substantial demand growth across all regions and the highest quarterly revenue in history driven by both product and solution business. We are confident that the profitable growth we aspire for fiscal year 2026 and beyond is supported by a strong electricity market. Fiscal year 2025 was marked by several milestones that provide a foundation for future success and shareholder returns. And due to our solid financial performance throughout the year, we were able to exit the bond guarantees, improve our credit ratings and lift the dividend ban for fiscal year 2025. Our net cash position and robust liquidity profile allows us to pursue strategic growth and shareholder returns without compromising financial discipline. We have put the right measures in place to continuously drive profitability. This includes optimizing our cost structures, reducing nonconformance costs and being selective with the projects we take on, ensuring they align with our target margins and long-term strategy. Our portfolio optimization efforts are well underway, but we will continue to review our portfolio elements. The divestment of our Indian wind business, which we have agreed in 2025 with a group of investors led by TPG is an important step to focus our onshore wind power on selected regions. Throughout the whole year, we were investing in the growth of our core business and the further strengthening of the supply chain. Examples were the acquisition of RWG and CIC this year, which will help our gas service businesses to deliver on their commitments. We have been and are investing in the expansion of our factories. Strong focus is here by the expansion of existing sites to achieve effective use of the capital spend and short payback times. I'm pleased that also the development of partnerships to enhance our offerings into the market made good progress in fiscal year 2025. Here to mention Rolls-Royce in the area of small modular reactors and Eaton in the field of data centers. You will see a lot more details on our future journey during the Capital Market Day in Charlotte, and we are excited to discuss these measures together with you. We are positioning Siemens Energy to lead in the field of resilient energy, pursue profitable growth and deliver sustainable shareholder returns. With that, let me hand over to Maria for the numbers. Maria? Maria Ferraro: Thank you very much, Christian. Hello, everyone, from my side. A very good morning and also a very warm welcome. I'm pleased to share with you our Q4 and full year financial results. As always, I'm happy to answer any questions you may have afterwards. Before I go into the performance of the specific business areas, I would like to start with an overview for Q4 and full year 2025 at the Siemens Energy Group level. So overall, we had a very strong finish to the financial year. Quarterly revenue exceeded the EUR 10 billion mark for the first time with strong quarterly figures recorded for orders, profit and cash flow. Fiscal year '25 is a record year, and we reached the top end of our guidance for all KPIs. Now looking at Q4, orders reached EUR 14.2 billion, and we saw a continuing strong demand, specifically in GS and GT. For the full fiscal year, we ended up just shy of EUR 60 billion in orders. This marks a record high since the listing. On a geographic basis, growth was broad-based, all regions reporting recorded increases. For fiscal year '25, orders were driven by a significant increase of 21% in our new unit business. Here, we saw exceptional growth in Gas Services with a remarkable 94%. Our service business grew by 16% compared to fiscal year '24. The book-to-bill ratio in fiscal year '25 was at 1.51 for the group, and the order book climbed once again to a new record high of EUR 138 billion. Revenue in Q4 reached an all-time high since the listing, like I mentioned, of EUR 10.4 billion. This is a 9.7% increase on a comparable basis. The improvement of this quarter was primarily driven by GT and TI with both growing by more than 19% on a comparable basis. For the full year, we ended up just shy of EUR 40 billion in revenue, which also marks a record high since the listing. Full year revenue grew significantly in both new unit at 18% and in service with 13%, both on a comparable basis. In Q4, profit before special items was EUR 471 million. This is significantly above the negative EUR 83 million in prior year's quarter, ending the fiscal year almost at EUR 2.4 billion. Again, this is another record for Siemens Energy since the listing. Here, our profit increase was mainly due to increased volume and related productivity effects, but was also driven by improved margin quality of the processed order backlog. Profit was negatively impacted by tariffs in the quarter with a high double-digit million euro amount. As already indicated in Q3, this was mainly due to the changes in the custom regulations between Europe and U.S. Additionally, in Q4, the amendment of Section 232 came into effect, which impacted mainly Siemens Gamesa. In special items, we see adjustments mainly in Siemens Gamesa related to the sale of the Indian wind business, as expected as well as the continued restructuring efforts. Net income for Q4 was EUR 236 million. Free cash flow pretax was more than $1.3 billion for the quarter and therefore, significantly above last year's quarter level, mainly driven by the sharp increase at Gas Services. I will talk a little more in detail about the drivers of our free cash flow on Slide 11. So now let me turn to our order backlog on the next slide. So looking at our backlog, as we mentioned, we ended the year at $138 billion. And for fiscal year '26, so this coming year, the revenue coverage is already more than 85%. And in fiscal year '27, we see this as approximately 60%. We also see an improved order backlog margin development in fiscal year '25. I will stop there because I will provide further details on the backlog margin development by BA at our Capital Market Day next week. So please stay tuned. So now let me talk in more detail about the drivers of free cash flow. Free cash flow pretax, as I mentioned, was EUR 1.3 billion for the quarter, roughly EUR 400 million more than Q4 of prior year, again, mainly due to improved profitability impacting our net income. Positive cash contributions from our net working capital is mainly driven by an increase in contract liabilities and a decrease in inventories. Additionally, we continue to have incoming reservation fees. This is also adding to our cash flow generation. So very quickly, an update on Siemens Gamesa's quality cash outs. For Q4, this amounted to EUR 157 million. And for the entire year, it was approximately EUR 450 million. This is in line with our mid-triple-digit million euro amount that we indicated for this fiscal year. And also, we expect a similar amount for fiscal year '26. Looking at CapEx, we spent $685 million in Q4 or roughly $1.7 billion for fiscal year '25. This is to fuel our future growth mainly for expansion and capacity extensions. For example, the ramp-up in Siemens Gamesa offshore as well as investments for capacity expansions in Gas Services and Grid Technology. The amount spent in this fiscal year was lower than anticipated at the beginning of the year just due to timing and reallocations. So therefore, please stay tuned also in terms of how we see target of CapEx for fiscal year '26. We'll look at that a little more in depth, of course, at our Capital Market Day next week. So now looking at net cash on the right-hand side of the slide. Overall, we have $9.2 billion in cash and cash equivalents. Our financial debt stood at EUR 4 billion, of which $2.4 billion is long term. This is an increase of approximately EUR 0.3 billion versus Q3, mainly due to increased leasing obligations. And taking into account pension provisions of EUR 406 million, this brings us to an adjusted net cash position of EUR 4.8 billion at the end of September compared to just EUR 2 billion a year ago. So overall, we continue to have to build a strong balance sheet commensurate with an investment-grade credit rating profile. So now this is a perfect segue to a question we receive very often from investors over the last few months regarding capital allocation. For this as well, we will provide more details at our Capital Market Day next week. However, one message which we can already reveal today is the dividend proposal for fiscal year 2025, demonstrating our commitment to shareholder return. We will propose a dividend of EUR 0.70 per share for fiscal year '25, subject to approval at our Annual General Meeting in February 2026. So now let's have a quick look at the financial performance of our 4 business areas, starting with our Gas Services business. In GS, we had a very strong finish to an exceptional fiscal year '25. Congratulations to the entire Gas Services team. The Q4 orders of $4.8 billion were up by roughly 38% from prior year quarter, again, driven by strong demand in the U.S. and Saudi Arabia as well as significant growth in service business, which was up roughly 48%, ending fiscal year '25 with a record order intake of EUR 23 billion. Book-to-bill was an impressive 1.89 for the fiscal year. This led to a record order backlog of $54 billion, another all-time high for our GS business. In Q4, Gas Services booked a total of 19 gas turbines for power generation in oil and gas, 11 of those were large gas turbines. Our gas turbine greater than 10-megawatt market share for power generation stood at 14% and for large gas turbines greater than 100 megawatts at 19%. Q4 was always expected to be a bit lower compared to the previous quarters solely due to timing. For fiscal year '25, overall, Siemens Energy achieved #1 position in gas turbines greater than 10 megawatt for power generation with 31% market share. In large gas turbines greater than 100 megawatts, we have secured #2 position with a 26% market share. Again, a fantastic performance, and we are really grateful for the confidence our customers have placed in us and for our team's ability to secure those orders. Q4 revenue was $3.1 billion, a 15.5% increase on a comparable basis. This ends fiscal year '25 with a record revenue of more than EUR 12 billion and a comparable growth of 14.2%. This is above the fiscal year '25 guidance range of 11% to 13%. In Q4, new unit business showed significant growth of almost 34% comparable and service business of roughly 15% comparable. Q4 profit before special items was EUR 251 million. This was a margin of 8.1%. This is 300 basis points versus prior year Q4, again, showing some of the normal seasonality pattern, but also reflecting the improved margin quality for the processed order backlog and new units business. This ends fiscal year '25 with a record profitability of almost EUR 1.6 billion and 13% at the top end of the 11% to 13% fiscal year guidance range. Lastly, but certainly not least, free cash flow for the fiscal year came in at a very strong EUR 3.2 billion for Gas Services. This is a cash conversion rate of just over 2. Again, a fantastic job GS. So now let's take a look at our Grid Technologies business. This was also a record year for Grid Technologies, well done. Q4 orders of EUR 6.9 billion, up 31% year-over-year. This was driven by strong growth across all regions, but specifically in the U.S. and an exceptionally high demand for product business. This ends fiscal year '25 with a record order intake of more than EUR 21 billion. Book-to-bill ratio for fiscal year '25 was at 1.9, again, resulting in another record order backlog of $42 billion. Quarter 4 revenue reached a new quarterly high and grew by 19% on a comparable basis to $3.1 billion. This is ending fiscal year '25 with a record revenue of more than $11 billion for GT and a comparable growth of 25.4% for fiscal year '25, which is within the upper end of the guidance range of 24% to 26%. Revenue increase was supported by the steady processing of the order backlog with the short-cycle business exceeding the solutions business. Q4 profit before special items was EUR 463 million. This was a margin of 14.7%. This is also plus 450 basis points versus prior year quarter 4, ending fiscal year '25 with a record profitability of almost EUR 1.8 billion and 15.8%, again, well at the upper end of the 14% to 16% guidance range for fiscal year '25. Free cash flow for the fiscal year for GT came in at EUR 2.8 billion and a cash conversion rate of just over 1.55. Excellent job. Thank you so much. And again, well done to our GT team. On the next slide, we take a closer look at our Transformation of Industry business area. Fiscal year '25 was a record year for TI with regards to revenue and profitability. Q4 orders were EUR 1.6 billion. This was the highest quarterly order intake for the fiscal year. However, a decrease of approximately 20% versus prior year on a comparable basis. This was due to an exceptionally large order in prior year orders in compression and in sustainable energy systems. The full year came in with EUR 6 billion. The book-to-bill ratio for '25 was just over 1 at 1.01, and the order backlog at the end of the quarter amounted to EUR 8 billion. For TI, Q4 revenue grew by just shy of 20% to EUR 1.6 billion, mainly due to substantial growth in the compression business. This is ending fiscal year '25 with a record revenue of $5.7 billion and a comparable growth of 13.5% Q4 profit before special items was EUR 177 million, almost double compared to Q4 of last year, resulting in a margin of 11%. This is a plus 420 basis points versus prior year Q4, ending fiscal year '25, again, with a record profitability of almost EUR 646 million and 11.3%, above the 9% to 11% fiscal year '25 guidance range. Here, the biggest contribution to the improvement in Q4 came from industrial steam turbines and generators with plus 420 basis points and compression with plus 300 basis points compared to previous year's Q4. Again, huge congratulations to the TI team. They have really been on a successful turnaround path for the last couple of years. On that, when the TI business area was established, we emphasized the turnaround nature of most of its businesses and as a result, provided additional voluntary disclosure for the independently managed businesses or IMBs. Given the successful turnaround of key businesses such as compression and steam turbine generators, this additional disclosure no longer will be provided. Accordingly, beginning with fiscal year '26, reporting for TI will be standardized in line with the group's approach and the other business areas and the separate IMB disclosure will be discontinued. So therefore, as of now, so for Q1 of fiscal year '26, TI will be reported in the exact same manner as all the other business areas. So moving on to the next slide, where we take a closer look at Siemens Gamesa. Here, Siemens Gamesa finished fiscal year '25 in line with expectations despite the strongest headwinds from tariffs. Q4 orders came in at EUR 1.1 billion. This is a similar level as last year's Q4 number if adjusted for roughly EUR 3 billion large offshore order in the North Sea in the prior year quarter. Orders overall for fiscal year '25 are EUR 9.3 billion. The book-to-bill ratio for '25 came in at 0.9 and the order backlog is EUR 36 billion. Q4 revenue of EUR 2.7 billion, representing a decline of roughly 9% on a comparable level to prior year's quarter. In Q4, a significant increase in the offshore business could not offset the expected decline in the onshore business. However, overall revenue for fiscal year '25 was 10.4 billion, well above the fiscal year '25 guidance range of -- with 4.7%. Q4 profit before special items came in at negative EUR 303 million, significantly better than prior year's quarter level, but remained negative, ending fiscal year '25 at around negative EUR 1.3 billion, which is exactly in line with our guidance. This quarter, we did have more underlying operational improvement, which was held back by certain negative effects, for example, tariffs imposed by the U.S., which we already indicated in our Q3 closing. In the Q4, the direct negative impact for tariffs forcing in Gamesa was a low to mid-double-digit euro million amount and again, mainly driven by onetime effects related to long-term service agreements in the U.S. So now let me move on to our outlook for fiscal year '28 and raised fiscal year '28 targets. First, our financial outlook for fiscal year '26. For SE overall, we expect 11% to 13% comparable revenue growth and a profit margin before special items of 9% to 11%, this is at the midpoint, a step-up or increase of 400 basis points compared to fiscal year '25. We also expect a net income of $3 billion to $4 billion and a free cash flow pretax of $4 billion to $5 billion. Looking at the business areas when it comes to revenue growth, all business areas will grow in fiscal year '26 with Grid Technologies leading at 19% to 21%, then followed by Gas Services with a growth of 16% to 18%, both of them in the high teens. All business areas are demonstrating continuous year-over-year improvement and delivering double-digit profit margins or high. The most significant step change will be the anticipated breakeven of Siemens Gamesa. In addition, all other business areas are targeting a margin uplift of approximately 200 basis points compared to the fiscal year '25 target ranges. So now just quickly, the updated financial targets for fiscal year '28. As indicated in Q2 of last fiscal year, when we upgraded the guidance for fiscal year '25, we did use the time to update the midterm targets accordingly. For Siemens Energy Group, we are aiming to achieve a compound annual growth on a comparable basis in the low teens percentage range through fiscal year 2028. In addition, we target a profit margin before special items in the range of 14% to 16% by fiscal year '28. This represents a step-up of approximately 400 basis points compared to previous targets. The business area targets for revenue growth and profitability have been outlined accordingly. So in summary, all business areas foresee continued revenue growth. For profitability, the most significant step change by '28 will include an uplift of approximately 600 basis points for Gas Services and 500 basis points for Grid Technologies compared to prior targets. And with this, thank you very much for your attention. And I now hand back to Christian for some closing messages. Thank you very much. Christian Bruch: Thank you very much, Maria. Thank you. And I will keep it very, very short because, obviously, I look forward to see you next week on the Capital Markets Day when we have more time to discuss, and we will provide you with more details on our different businesses and the way forward of the company. Summarizing 2025, it was a successful combination of an attractive market environment, products from our side, which are really needed by the market and resilient business models, which now provide a very solid foundation for the future. We at Siemens Energy are excited to improve our company further and have kicked off with the new fiscal year, our program, Elevate Performance, which we will talk more about during our Capital Market Day. Our increased midterm guidance for 2028 underlines the performance commitment of the whole organization, driving disciplined execution, innovation and a relentless focus on customer and shareholder value. And for now, let me hand it over to Tobias again for the question-answer session. Thank you. Tobias Hang: Thank you so much, Christian. Thank you so much, Maria. So now we will start our Q&A session. [Operator Instructions] I already see that we have quite a lot of people in the line. So I would always call up the next 3 names so that you already prep for your question. And the first question will go to Sebastian Growe afterwards, it's Ajay Patel and then Max Yates. So Sebastian, please go ahead. Sebastian Growe: First question would be around free cash flow and the pretax target here is EUR 4 billion to EUR 5 billion, which is implying apparently around 100% conversion from the adjusted EBITDA. So could you please help us with the key parameters going into this, such as CapEx, especially in the wake of that you spent EUR 4.3 billion less than earlier guided last year, also the budgeted cash out at Siemens Gamesa. And could you also comment on what the cash impact from slot reservations has been in '25 and how you view the conversion of the now 28 gigawatts in reservation agreements in the year '26. Maria Ferraro: Hello, Sebastian and thank you very much for your questions regarding cash flow. And of course, looking at the guidance to EUR 4 billion to EUR 5 billion. So as you rightly mentioned, we do expect a CCR of 1 in fiscal year '26. And of course, we do continue to see a positive impact from payments with respect to our order growth for the year and our continued backlog growth. Again, looking at CapEx, we'll provide more details on that next week at the Capital Market Day, but consider that the CapEx continues to exceed depreciation. And of course, we also have some shifts back and forth between the 2 fiscal years. And as mentioned earlier, with respect to Siemens Gamesa cash outs, there was around EUR 450 million of cash outs relating to the provisions booked before for the quality topics, and we expect a similar amount for next year. So those are the other aspects that went into the EUR 4 billion to EUR 5 billion cash flow guidance. Tobias Hang: So the next person would be Ajay Patel. Could you please limit your questions to one because we have so many people on the line. Ajay Patel: Congratulations. My focus is just on your guidance. I'm looking at the '28 target. And I just want to compare it with '24 to understand the margin progression and the 2 main drivers. I was thinking, is there any way you could roughly give us the improvement in margin from '24 to '28? How much is driven by productivity? How much is driven by pricing for service and technologies, please? Christian Bruch: Maybe I take this, and I would do this, with, once again, clear invite to next week. I mean we break down for every business more next week, and we want to really to understand the details behind it. So until then, I would keep it relatively generic. I would say the majority is productivity, the minority is pricing on this uplift on the margin. And this obviously helps us a lot that we have a very good planning base, volumes are high. So it allows us a good leverage in productivity that also going forward. Obviously, yes, I mean, backlog margin has continuously improved, and this is what Maria is going to walk through next week. But I would suggest let's take it really up next week when we in detail explain it step after step. Ajay Patel: And that was for both divisions, right? Gas Service and Grid Technologies, that comment? Christian Bruch: Was is what? Ajay Patel: Was for both divisions, right? Christian Bruch: Yes, correct. Yes. Maria Ferraro: It covers. Actually, Ajay, you'll see that -- those details for all of the business areas next week, which show the backlog improvements. Ajay Patel: I will be there. Tobias Hang: The next question goes to Max Yates, please. Max Yates: I wanted to ask about the Gas Services margin guide for 2028, 18% to 20%. I think that's probably the one that has surprised maybe me and the market the most this morning. So I guess I just wanted to understand what is it that has given you the confidence to really put that up sort of as aggressively as you have? Is this mostly around the gross margin expansion on new equipment? Are you also now sort of becoming more optimistic on some of the pricing in services? And maybe just sort of finally within that, I know you won't give us the kind of target by equipment and aftermarket, but is it right to think sort of qualitatively that the margins of those 2 businesses are broadly converging within that target? So that's my question. Christian Bruch: Thanks very much, Max. And also there, I mean, you will see a great presentation on Gas Services next week with a lot of the details. But let me put a couple of comments in there. First of all, what we absolutely do see, and this is different to 2 years ago, we see the gas order intake, gas business level substantially higher than before. And this gives us a long-term planning base, and that has been a substantial uplift, which also helps us to drive the margin because that is also about absorption, the factory, more productivity measures, better supply chain management. So there's a lot of elements into that. On your comment with regard to service and new unit, be a bit careful because actually, the proportion of the new unit business is going to be, let's say, growing faster and bigger than the service business. Some of the service business, which is going to be related to the new units business is only going to kick up in '28 and thereafter. So that is something what you have to see. There is still a decent difference in the margins on the different businesses. But what we are really benefiting from now also going forward is keep in mind, when we started a couple of years ago, we were just introducing the large units, HL. So we have a lot of learnings also through that. And that is where we get better and better really every year. We see that. We know what we need to do. And this is things which are now obviously behind us. But Karim will be there next week also and walk you in detail through the different matters, but that has been mainly it. And yes, the pricing in gas is still very favorable, but I would not underestimate really the productivity elements, which we see really in the business area. Tobias Hang: So the next 3 questions go to Gael de-Bray, Vivek Midha and Alex Jones. Gael de-Bray: So if I have to stick to one question. Let me ask about the 2026 outlook. When I look at the margin guidance for the divisions and put them together, the weighted average implies a margin that is clearly higher than the 9% to 11% range you're guiding for at the group level. So is this because the breakeven for Gamesa is not a real breakeven, but rather start with a minus or is there anything else to consider? Maria Ferraro: I'll take that. Hello, Gael and thank you for the question. And let me just be clear, it does not indicate -- and you're right in your calculations, but that does not indicate any lack of confidence in the BA ranges, not at all. It is correct that if you do the math, of course, there's some, let's say, conservatism in relation to the BA ranges. We want to deliver what we promise, and we try to ensure that we have certain estimates for that because no doubt, the environment in which we operate continues to be dynamic. And headwinds are present in various areas. So for example, last year, of course, in fiscal year '25, we experienced the tariffs. Of course, that's very much under control, we have that embedded in our guidance for next year. But of course, we always are ensuring that there is some -- if headwinds are present that we are able to handle that. And I know it maybe sounds silly, but there's also an element of rounding, of course, within all of it, trying to be as precise as possible as we can be with the BA ranges. But still, I do want to ensure you that there is no lack of confidence on the BA ranges in this regard, not at all Gael. Tobias Hang: Thanks so much, Maria. Gael de-Bray: For Gamesa, what is the sequential path to breakeven that we have to consider for 2026? Maria Ferraro: You want to take that -- the sequential path for -- well, I'm happy to take it, and please jump in, Christian, if you'd like. I mean, look, you see in fiscal year '25, we've done a number of things right in the Siemens Gamesa business. They've been able to ensure that they're starting to look at how does the productivity look in all of their facilities that they're ramping up. We have an example here in Germany, where one of the facilities, the productivity has increased year-over-year by 30%. And as a result, you see that also in their ability to exceed their revenue forecast for this year. They continue to very clearly look at optimizing footprint, ensuring that in terms of cost efficiency, supply chain, et cetera, all of those levers they're bringing into this fiscal year. Please don't expect a linear progression to breakeven. We do expect that the first half or the first quarter for sure, continues to be negative. Q2 and Q3 really then brings us to a positive Q4 for Siemens Gamesa in fiscal year '26. Tobias Hang: So the next question goes to Vivek Midha from Citi. Vivek Midha: I just have a follow-up around the reservation activity. It looks like you had a really good quarter, 11 gigawatts of new reservations in the quarter. You called out Saudi Arabia and the U.S., but it will be great if you might be able to expand on the makeup of the incremental new regions, on frame types and so on. Christian Bruch: I would once again hit a lot next week where we try to give you the breakdowns. But let me say a couple of comments to what you said. Obviously, yes, U.S. has been generally a strong market for us in '25. What I would like to highlight is really our success across all different frames at Siemens Energy. The good thing is, obviously, we have small gas turbines, midsized gas turbines and large gas turbines. And what you have seen that all of the frames are in good demand and really also have helped us sometimes to accommodate timing needs of customers. In terms of markets, also, as I said in the last quarters, we try to keep the balance. Yes, obviously, U.S. with 31% market share in the market -- in the order intake was a good one. But Middle East, it's not only Saudi, you see UAE obviously also now getting very active. You see orders we get in other parts of either North Africa or places like Iraq, where we were successful. So this is really across the board, but I would really ask for your patience, join us next week, much better. Karim is the right person to dive deep into that, and you will see a lot of great information. Tobias Hang: Next question goes to Alex Jones from Bank of America. Alexander Jones: Christian, I think earlier today, you made a comment that there are fewer synergies between onshore and offshore within Gamesa than perhaps is expected from the outside. Could you expand a little bit on that -- those comments and whether that signals an openness to exit onshore once you reduce cost and fix the current issues? And if that's not something you've already decided, what are the key criteria you're looking at for making that decision over the coming years? Christian Bruch: No, thanks for the question. And I -- let's say, don't overrate it. But what I want to flag up is that from my perspective, each of the business has to prove their existence. This might be in a different time frame because they're developing time-wise differently. But I look similar to other parts of the business, I look on it really business unit by business unit. So 1 level deeper or 2 level deeper is to say, and this has to be a good one. And yes, there are some synergies on the administration costs. There are less synergies on the market side because offshore, by and large, is 2 handful of countries. Onshore is a little bit more diverse in the countries. And obviously, on the factories, most of our factories are either producing offshore or either producing onshore, and we have not seen that as a main lever. In both areas, obviously, we tap into wind, turbine technology knowledge. So that is something. But what I wouldn't do is to say, let's say, you definitely can only run it together, but our target is to make both businesses successful look on it like this in that regard, that was the logic behind the statement because we don't have the one factory where we do all products from and just that this is understood. Tobias Hang: Thanks so much. So the next 3 questions go to Akash Gupta from JPMorgan then Uglow from Oxcap and Sean McLoughlin from HSBC. Akash Gupta: I have one on Siemens Gamesa. And maybe if you can provide a bit more color on this almost EUR 1.36 billion loss in last fiscal year between onshore, offshore and service. And when we look at the breakeven, can you also help us what are you assuming for each of the 3 businesses? Christian Bruch: You want to take this... Maria Ferraro: You can start... Christian Bruch: I start maybe one thing to always look at, I think I said it in one of the calls before. Keep in mind, if you talk about the EUR 1.3 billion, there are some one-offs in '25, which I don't expect to reoccur in '26. So the jump-off point is slightly different. In terms of the breakdown of the businesses, maybe, Maria, you take this. Maria Ferraro: And this is what we've always said, Akash, is on our way to the breakeven that we have to have, of course, the onshore has changed in terms of the dynamic, of course, because with the sales stop, et cetera. The offshore revenues, as I mentioned earlier, are now starting to come into the revenue stream. We continue to have a strong service business. The one-offs that Christian is mentioning is actually related to the service business in fiscal year '25, and that's really the components, if you'd like, that will make sure on top of other levers, of course, to get us to our breakeven for fiscal year '26. Akash Gupta: Is it possible to quantify roughly these one-offs so we know idea what underlying profit? Maria Ferraro: No. Those one-offs, of course, are generally project-related in nature. But in terms of the split, I can say that 2/3 is onshore and service and 1/3 is offshore. Tobias Hang: So the next question goes to Ben Uglow from Oxcap. Benedict Uglow: I was interested in the kind of market share commentary. And in particular, if we look at the 194 units, there is this mix shift going on in your business from the large gas turbines to the industrial, the SGT-750 and 800s, et cetera. And when we look across the whole market, if I think about Caterpillar, et cetera, we can see that. I guess my question is, the assumption is that this is all to do with timing and availability of the engines. My question is, is this shift just a temporary thing? Or do you actually think it could be a bit more structural? And the reason why I ask this is there are some aspects of the, let's call it, smaller machines that are more relevant or more appropriate to data centers. So I just want to know your general sense on that. Christian Bruch: Yes. No, happy to take this, Ben. First of all, the big increase also on the MGT side, so the midsized gas turbine side is not only data centers. There is a good amount in data centers also because of shorter delivery times and sometimes of the flexibility to have multiple trains and providing actually also with the build-out of the data centers a better ramp-up curve. But there has been, for example, a very decent amount going to floating power, so gas turbines on a ship, right? There has been quite a decent amount going also on the industrial side afterwards on the compression side. So it's -- I don't want to create the picture that is just because of AI. That's not the case for the midsized gas turbine. This is also -- and we show it also next week, why we decided to increase the capacity on our Swedish facility, and Karim will share this next week in more detail. The good thing is, honestly, today, I cannot tell you, if you would say, long-term picture after 2030 or whatever, I don't know. But what we are doing at the moment is we are doing investments into capacity expansion with a very short payback time. This is what drives us. And so where I'm very sure is that the investments we are doing at the moment in the sites to expand capacity will pay off. That's I'm confident about. But structurally after 2030, to be seen, there is a lot of logic to have a multi-train solution with a robust turbine, what the midsized gas turbine is, but they will not be able to replace whatever an HL unit afterwards. I think this is what we're not going to see. Tobias Hang: So next question goes to Sean McLoughlin from HSBC... Sean McLoughlin: Just latching back on to the comments around productivity. I'm just wondering specifically on capacity. I mean, how much of the real increase on the top line for Gas Services, Grid Technologies is faster-than-anticipated capacity ramp? I mean you've highlighted challenges of ramping and tightness with supply chain previously. Has anything materially changed in your ability to scale faster than you expected versus a year ago? Christian Bruch: I would put it the other way around. The concerns have not materialized. And if you see the output of the factories, it was not a given for me in '25, particularly also with the ramp-up we had on the Grid Technologies side that we are able to get the volume out, which we finally got out. So I think good job done. And we had decent concerns with the ramp-up. We are, I think, also better in the compared to 5 years ago in terms of really standardization of really workflows and waste to producers. And the same obviously applies to the gas turbine. I think the gas turbine is now, let's say, going through this curve. And we see it obviously also on the blades and vanes production, which we have in Florida, the uplift is now happening. But by and large, I would say the main point for me compared to before, the teething pain concerns have not realized in the sense of what we were fearing before. In that regard, it was a good job. Sean McLoughlin: If I could maybe just follow up on Gamesa as well. I recall that the offshore ramp issues, if you like, were part of the big profit warning a couple of years ago. You're still talking about ramp for '26. I mean what about risks or, let's say, lingering risk or where are we on that standardization productivity? Christian Bruch: On the productivity in terms of what I do see and what the team has done in 2025, they have achieved really increases in the factory productivity of around 30%, right? It depends a bit on the factory, but that was a great job, right? And so I see the path is working out. What you have to keep in mind, we switched certain models, also switched certain blade lens in 2025. And this means you have to replace the tools, you have to start new, you have to say, we work the factory shop floor, and this costs productivity. Now it's really of doing the same thing over and over again. All what I have seen now in '25 gives me the confidence that this journey continues in 2026. Tobias Hang: Thank you so much, Sean. So next 3 questions go to Vlad Sergievskii from Barclays, Lucas Ferhani from Jefferies and William Mackie from Kepler Cheuvreux. Vladimir Sergievskiy: Very solid 15% growth in service business in Gas Services last year. Would you be able to give us some idea of the split of this service growth between long-term agreements and transactional business in 2025? Christian Bruch: No, I really struggle also from the top of my head that I give you the right answer. And I would really say next week, I think in terms of breaking it down, happy to discuss it, but I think I would otherwise give you no wrong numbers from the top of my head. Vladimir Sergievskiy: No worries. Even, I can quickly follow up on the gas turbine pricing through the course of last year. Have we been sequentially improving through the year? Have we plateaued at certain point? Christian Bruch: Yes, slightly, right? But I would also -- we will never be a quarter-over-quarter business. In that regard, I do look really on the sum of '25. What I would say is the pricing trend in gas end of fiscal year '25 still is intact and good. Tobias Hang: Next question goes to Lucas Ferhani. Lucas Ferhani: I just wanted to follow up on the gas business and the duration of the cycle. Can you talk a bit more about kind of the confidence kind of post 2028 that it's not, let's say, the best we see and there's more to go. And specifically, there's a lot of discussion on maybe the upside there is at the moment from hyperscalers and data center and whether that would normalize, what would happen to the overall market post that date? Christian Bruch: No, thank you for the question. And I think our midterm -- revised midterm guidance underlines that we very clearly say gas is here to stay. And that is a stronger message than we gave 5 years ago or 3 years ago. And in that regard, we -- if you look towards 2028, we're confident that this continues. We also believe we see the demand towards the end of the decade. Anything thereafter, I think it's really difficult to project and -- to say. But what I would say is what we are now trying to do and also with the build out of the capacity, we are trying to increase our fleet in the market. Whenever it turns, we sit on a super strong service business. That is the logic of Gas Services. But for the time being, for the next years to come, yes, we are confident that this trend remains. And then let's see after '28, what else is coming. Tobias Hang: Thank you so much. So Will Mackie from Kepler Cheuvreux. It's your turn, please. William Mackie: My question goes back to the guidance setting process and the future shape from '26 out to '28. Maybe given we're talking high level today and detail next week, you can just flesh out how the process was built top down, bottom up, how the shape of the guidance should unfold? Is it linear? Or is it very back-end weighted that you deliver on the growth and the profit projections? And to what extent are the elements of ramp-up costs and learning effects as you build through the GS and GT businesses weighing on the '26, but releasing in terms of the performance into '27, '28. Christian Bruch: Do you want to... Maria Ferraro: I can ask... Christian Bruch: So why don't you take the first shot. Maria Ferraro: I'm going to take the first shot. So how was the guidance composed or how did we put it together? I think, well, generally speaking, it's part of our overall planning process. And as Christian mentioned, in certain aspects, we didn't see or foresee such a momentum continuing for as long as we see it even as of our last planning cycle in last year. So how it was put together was very methodically, looking at the momentum that we see in GS and GT, seeing the market positivity that we see there. And I think you said something around linearity or nonlinear or is it back-end loaded. I would suggest it really is a constant, like I said earlier, a constant improvement year-over-year in those businesses. And why is that? That is because it's built on the backlog that we have, of course, in-house of EUR 138 billion, which gives us the visibility. Again, don't forget, 90%, almost 85-plus percent of our revenue is already in-house for this year, an additional 60% is in-house for next year. So really, that gives us a very strong basis for planning in terms of the figures. And then from a market perspective, and this is -- I'm sure what Christian will want to add, we've coupled that and said, okay, how does that factor into growth, et cetera. I mean, as you rightly -- or we've talked about, we have capacity coming on board. But again, it's all built on the back of our backlog plus our market expectations. Christian Bruch: Yes. And plus a couple of programs, which we also drive operational excellence in the organization. We will talk about this next week. The one nonlinear element in the -- if you look '26 towards is really wind, right? I mean there's a big step up next year. And then it's more step by step. This is what you have to keep in mind. The rest is really evolving the backlog and driving operational excellence. Tobias Hang: Absolutely. So thanks a lot, Will. As we started a bit later, we have 2 more questions to squeeze in. So the first question would be going to Kulwinder Rajpal from AlphaValue and the second one to Alex Hauenstein from DZ Bank. Kulwinder Rajpal: So my question was related to Gas Services and particularly the nuclear market. How do you see customer discussions shaping up so far? And if you could expand on the partnership with Rolls-Royce and how this positions you for the nuclear market. Maybe this is a key market for you beyond FY '28. Maybe we expect some details on it in the Capital Markets Day as well. So any thoughts here would be helpful. Christian Bruch: Yes. I mean, to some extent, we addressed it next week. But I mean, always, nuclear market is for us twofold. The one thing is a service market for the large turbines, which obviously we have a good installed fleet, and that is -- continues to be a nice service-driven business, which used to be in the mid- to high triple-digit million or so roughly depending on the year, depending who goes into, let's say, bigger maintenance cycles. And then you have the SMR pieces, as you said, with Rolls-Royce. And you have maybe seen the announcement this week. But this is something for us to 2030 in terms of realization, right? I mean this is long out. This is what we are now preparing. This is an important collaboration for us because we believe as a future project in this, but this will not influence our '26 or '28 or whatever that's not decisive there. That's more thereafter. Tobias Hang: So Alex Hauenstein from DZ Bank, please conclude with your last question. Alexander Hauenstein: I have a question with regards to the German government that speak about strategy to build new gas power plants and to bring them online by 2031. I saw on Bloomberg that you commented a bit on the press -- sorry, but I missed on that one. Nevertheless, maybe you could elaborate a bit from your point, beyond the point you made this morning about what that means for you in terms of potential new orders, if any, to come soon, especially in light of the capacity constraints which you have already. I mean, how realistic is this 2031? And I would be also interested to hear about what -- in terms of size and gigawatts, what you expect to get out of that or any indication on that would be great. And lastly, I would be curious to hear your thoughts about the requirements to build in green hydro readiness for these turbines. Christian Bruch: Yes. I mean, first of all, we are ready here, right, in terms of we are waiting for these projects, and I cannot wait really until they finally pull the trigger to do the auctions. We have -- I said it before, with a certain amount of customers, we have free agreements where it's even you go, we go type of setups. In other customers, we have at least free alignments. It is an open competition with our peers, but we will definitely would like to secure projects in that. How much of this chunk and let's assume it's the 8 giga first and then the 2 giga later, I don't know yet, right? But one thing I can ensure we have planned it in, it's feasible also with the 2031, if they now move ahead. I mean, obviously, it depends on the start date, but we would be more than willing to fight for it, and we will try to secure a fair share out of these different projects. There was the last hydrogen piece. Yes. I mean, we test hydrogen for all our turbines. Most of the turbines take -- all of the turbines take a certain portion of hydrogen anyway. Smaller turbines, we have tested and operated on 100% turbine hydrogen already. And the development program for us is really projected towards 2030. So if we stay in this time schedule, I'm okay also with the hydrogen request. We will make this happen. The turbine will be available for that. Tobias Hang: Thank you so much. So with that, we would conclude our Q&A session. And Christian, do you have any last words? Christian Bruch: See you next week. Hopefully. That's my last word. Looking forward to talk to you and hopefully in person, but the ones who are then online also will be great to have a joint discussion. Thank you. Maria Ferraro: Looking forward. Tobias Hang: Thanks a lot. So with that, we're going to conclude this call. Thanks. Maria Ferraro: Bye-bye.
Operator: Good morning, ladies and gentlemen. Welcome to Syn's video conference about the third quarter results. This conference is being recorded, and you will be able to access the replay on our website, ri.syn.com.br. The slide deck will also be available for download. [Operator Instructions] And right after the presentation, we are going to have a Q&A session. We will provide further instructions then. I would like to provide that the information that will be informed are related on the information that are responsible or available right now. However, since future results may differ substantially from the results presented and herein due to the various important factors, among other factors, investors, shareholders and stakeholders need to take into account that there are other circumstances responsible for the decisions other than the information contained in this presentation. Here, we have Thiago Muramatsu, the Director at Syn; and Hector, the Investors Liaison Director. Now I'd like to give the word to Thiago Muramatsu for the presentation. Thiago, please go ahead. Thiago Muramatsu: Welcome, everyone. Thank you very much for joining on this call to talk about our results. We are going to start talking about some of our achievements from the third quarter. So let's start with capital reduction that we had for this quarter. It was announced at the end of the month of July, a little bit before we had the second quarter results, we had a total of BRL 330 million reduction, which is about BRL 2.16 per share on the date of September 18. We are also moving on with the Shopping D transaction where we are selling our participation along with XP Malls. The sale of our entire stake represents a total of BRL 8.9 million, and we expect to finalize this transaction in the next coming weeks. Finally, as we mentioned at the beginning of the year, we also closed the sale of Brasílio Machado. We have already received the first 5 installments. There is a final one to be received at the end of this year where we are going to close the entire deal. Now a little bit about our operational performance. Let's start with shopping malls. In this quarter compared to the third quarter of last year, we had an increase of physical occupation of about 1%. Throughout this last year, we started with new rentals and exchanged 7% of our total number of stores focused on food, entertainment and services. We also reduced our share in clothing stores focused on those 3 main factors. When it comes to financial occupation, we also had a slight increase, but we continue at about 95%, which we consider to be a healthy occupation. Now a little bit about our sales. When we talk about sales evolution, we can see that we had an increase of 5.5% with BRL 55 million coming from same-store sales, BRL 44 million from new locations or new stores and 18% from kiosks and events. So when we consider the total sales in percentages throughout the 9 months of this year, we can see an increase of 4.2%, and the same-store rent with an increase of 5.6%. Despite the fact that we had these increments of 5.6% compared to 4.2% in sales, we were able to keep our turnover that represents very healthy levels as well. And the majority of this increase or this growth of BRL 18 million was considered also with this growth in portfolio compared about 50% compared to last year. Now about corporate buildings, we maintained basically the same level of physical occupation compared to the same period of last year. And when we look at 82.7% against 91.6%, we had the vacancy of Brasílio Machado, which was a building that we have sold. So when we take that into account, we go from 91% to 93.8% as well as in financial occupation going from 91% to 92.6%. Lastly but not least, talking about our warehouses, the CLD. As we have been seeing over the last quarters, we have already delivered Phases 1 and 2. Both of them are 100% rented, already occupied. We expect to deliver the Phase 3 on December this year. When it comes to the Phase 4, we expect to deliver that fourth phase on the first semester of 2026, but we have this expectation of being able to deliver the last phase already in the first quarter of 2026. We are already having some conversations about occupation. We already have a proposal for the rental of part of this warehouse of about 30%. And in terms of location, we are talking about 10% compared to the last value of Phases 1 and 3 -- I'm sorry, Phases 2 and 3. Now I would like to talk -- to give the floor to Hector to talk about financial results. Hector Bruno de Carvalho Leitao: Well, on the first phase, we can see the performance of our properties compared to the same period of last year. And in the first quarter, we had a very robust growth of 13.7%. And throughout the 9 months, 11.8%, both for shopping malls and offices. The main driver or leverage of those results are in revenue for malls. We had this increase of 10%; and offices, 11%. This is basically due to the fact that we had an increase of revenue of same stores. As Thiago has mentioned, there were some store exchanges with the best portfolio as well as best profitability. There's another factor for shopping malls, though, which has to do with media and kiosk, events and other merchandise campaigns that have been growing at about 20% rate, which is something that has been providing great results for us. For offices, the results are basically focused on reviews -- or I'm sorry, revisions where we are focused on 3 main buildings, 2 at JK Triple A as well as Leblon in Rio de Janeiro. This growth is above the inflation rate. And also for the last 9 months, we can see the same impact where we grew 11.8%, total 13% in malls getting to BRL 48 million, and 8.7% in offices, bringing us to 17% or BRL 5 million in the year. On the next slide, we can see 2 very important indicators. The adjusted EBITDA. In the third quarter, we can see a growth that is cohesive to the ROI, 15.5%. Our EBITDA of BRL 20.8 million. Looking specifically at the 9 last months, we can see that 5 months of this portfolio happened 5 months before the transactions that we have closed. So there is this decrease of 36.8%. So BRL 95.6 million of last year compared to BRL 60.4 million this year. However, when we look at the adjusted FFO, we can see that there is this growth of about 120% in the first quarter where we had this BRL 20 million FFO adjusted to sales effect, and specifically for the 9 months of 2024. In this, we had BRL 35 million last year and this year, 45.6% (sic) [ BRL 45.6 million ] showing a growth of 30%, showing that specifically for the fourth quarter on, we have already distributed BRL 960 million. So even considering that we have this return for shareholders, and we still have an FFO that is consistently better than the same period of last year. In this slide, we can see the evolution of our net debt. From one quarter to the other, we basically maintained the same level of gross debt. In terms of cash, we have closed at BRL 231 million, and this drop is due to the reduction of capital that we have had at the end of this quarter. So with that, we closed with a total debt of BRL 271 million, which is about 3x our adjusted EBITDA, which is still considered to be a quite healthy level of that, and very important pay for our investors and shareholders as well. So when it comes to our indebtedness or amortization schedule, we can see the profile of our debt, which is mainly focused on IPCA, which led us to reduce our average cost with a very important spread compared to the CDI of 85% over the CDI. And I think now we can go to the Q&A session. Operator: [Operator Instructions] The first question is by [ Reinaldo Veríssimo ]. Unknown Analyst: Congratulations for the results. How do you intend to reduce your gross debt until 2028? Do you have any plans to expand the ABL beyond the CLD warehouse? Thiago Muramatsu: Reinaldo, well, about our leveraging. Yes, we have increased our leveraging rate because we had some extra cash. So specifically for this 3% of gross debt that Hector mentioned, it is already considering this reduction, and it goes hand in hand with our practices keeping the gross debt level. That is due to the fact that our debt is focused on IPCA, which is a great cost. About the next coming years, this leverage is going to happen due to the expansion of our portfolio. This is the picture of the last 12 months, but over the course of the year and the coming years, we expect that due to the evolution of our portfolio results, we can reduce this leverage rate until we get to lower levels that may be even allow for us to leverage our company. This deleverage result is coming again from the results of our assets. And when it comes to the expansion of ADL, specifically for CLD, unfortunately, we don't have any more room on that land. So as soon as we finish the last phases, we get to the limit of its constructed area. But of course, we are still analyzing new developments or maybe some new acquirements or expansions, okay? Operator: [Operator Instructions] So with that, we would like to close the Q&A session. We would like to give it back to Thiago Muramatsu so he can give his closing remarks. Thiago Muramatsu: Okay. So once again, I would like to thank you all for your presence. We had a very positive quarter, and we are at your disposal to clarify any other questions. Thank you very much. Operator: So with that, we will close our video conference. Thank you very much and have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]