Half Year 2026 Alfen NV Earnings Call

August 19, 2026

Speaker #1: Hello, welcome to the Alfen 2026 half-year results conference call, hosted by Michael Colijn, CEO, and Bart Meusen, interim CFO. For the first part of this call, all participants will be in listen-only mode.

Operator: Hello, welcome to the Alfen 2026 half year results conference call, hosted by Michael Colijn, CEO, and Bart Meussen, interim CFO. For the first part of this call, all participants will be in listen-only mode, and afterwards there will be a question-and-answer session. If you wish to ask a question, please press pound key 5 on your telephone keypad. I would now like to hand the call over to Michael Colijn. Mr. Colijn, please go ahead.

Operator: Hello, welcome to the Alfen 2026 half year results conference call, hosted by Michael Colijn, CEO, and Bart Meussen, interim CFO. For the first part of this call, all participants will be in listen-only mode, and afterwards there will be a question-and-answer session. If you wish to ask a question, please press pound key five on your telephone keypad. I would now like to hand the call over to Michael Colijn. Mr. Colijn, please go ahead.

Speaker #1: And afterwards, there will be a question-and-answer session. If you wish to ask a question, please press #Q5 on your telephone keypad. And I would now like to hand the call over to Michael Colijn.

Speaker #1: Mr. Colijn, please go ahead.

Speaker #2: Thank you, Elba. Good morning, everybody, and welcome to Alfen's 2026 Half-Year Earnings Call. Thank you all for taking the time to join us. I'm Michael Colijn, CEO of Alfen, and I'm delighted to be leading this trading update with you today.

Michael Colijn: Thank you, Elba. Good morning, everybody, and welcome to Alfen's 2026 half year earnings call. Thank you all for taking the time to join us. I'm Michael Colijn, CEO of Alfen, and I'm delighted to be leading this trading update with you today. Before we start, let me introduce Bart Meussen, who joined us as interim CFO on 1 July and is with us on this call for the first time. With his appointment, continuity of the finance function and financial leadership is safeguarded. Bart joined at a demanding moment and has made a strong start. He has been closely involved in preparing the results we are presenting today. As such, he will take you through our financial performance and join me during Q&A. It has been a pleasure working with Bart these first few weeks. Let me give the word to Bart for a short introduction.

Speaker #2: Before we start, let me introduce Bart Meusen, who joined us as interim CFO on July 1st and is with us on this call for the first time.

Speaker #2: With his appointment, continuity of the finance function and financial leadership is safeguarded. Bart joined at a demanding moment and has made a strong start.

Speaker #2: He has been closely involved in preparing the results we are presenting today. As such, he will take you through our financial performance and join me during the Q&A.

Speaker #2: It has been a pleasure working with Bart these first few weeks. Let me give the word to Bart for a short introduction.

Speaker #3: Yeah, thank you, Michael. And good morning, everyone, also from my side. I joined, indeed, Alfen as the interim CFO on the 1st of July, and got a warm welcome from the team.

Bart Meussen: Yeah. Thank you, Michael, and good morning, everyone, also from my side. I joined Alfen as the interim CFO on 1 July and got a warm welcome by the team. I've been working closely with Michael, the Alfen management team, and the finance department over the last weeks. The first weeks here, as you said it already, have gone straight into the half year. As also was written in the short announcement, I had careers at companies such as KPN, Philips, and most recently at BAM as CFO of the Netherlands. In all those assignments, I gained extensive experience and knowledge in finance leadership, business transformation, and organizational change. What I found is a finance organization that knows its business well and a company with a clear sense of what it is building, with many strong and dedicated professionals.

Speaker #3: I've been working closely with Michael, the Alfen management team, and the finance department over the last weeks. Our first weeks here have—and you said it already—gone straight into the half-year.

Speaker #3: As also mentioned in the short announcement, I have had careers at companies such as KPN, Philips, and most recently at BAM as CFO for the Netherlands.

Speaker #3: In all those assignments, I gained extensive experience and knowledge in finance leadership, business transformation, and organizational change. What I have found is that a finance organization that knows its business well, and a company with a clear sense of what it is building, are key.

Speaker #3: With many strong and dedicated professionals, my focus is on continuity—making sure the finance function keeps delivering, and that, for example, you receive the same quality and consistency of reporting you are used to.

Bart Meussen: My focus is on continuity, making sure the finance function keeps delivering and that, for example, you receive the same quality and consistency of reporting you are used to. My second focus is to support the ongoing transformation with everything that is needed to be done short term. I really look forward to speaking with you later in the call and to meet many of you over the course of the coming months. Michael, back to you.

Speaker #3: My second focus is to support the ongoing transformation, with everything that needs to be done in the short term. I really look forward to speaking with you later in the call, and to meeting many of you over the course of the coming months.

Speaker #3: Michael, back to you.

Speaker #2: Thank you, Bart. Let me share what we can say about the situation at this moment in time. The supervisory board process is ongoing, and Bart will continue in the role until a permanent appointment is made.

Michael Colijn: Thank you, Bart. Let me share what we can say about the situation at this moment in time. The supervisory board process is ongoing, and Bart will continue in the role until a permanent appointment is made. We will update you in due course. Moving on to today's agenda, which is structured to give you a comprehensive view of the developments during the H1 2026. I will begin with the highlights. We will then dive into each of our three business lines. Bart will follow with our financials, and we will conclude with our outlook before we open the floor for the questions and answer session. I am pleased to report that Alfen delivered a solid H1 2026, with revenue reaching EUR 261.5 million, representing a 23.6% increase compared to the H1 2025.

Michael Colijn: Thank you, Bart. Let me share what we can say about the situation at this moment in time. The supervisory board process is ongoing, and Bart will continue in the role until a permanent appointment is made. We will update you in due course. Moving on to today's agenda, which is structured to give you a comprehensive view of the developments during the H1 2026. I will begin with the highlights. We will then dive into each of our three business lines. Bart will follow with our financials, and we will conclude with our outlook before we open the floor for the questions and answer session. I am pleased to report that Alfen delivered a solid H1 of 2026, with revenue reaching EUR 261.5 million, representing a 23.6% increase compared to the H1 of 2025.

Speaker #2: We will update you in due course. Moving on to today's agenda, which is structured to give you a comprehensive view of the developments during the first half of 2026.

Speaker #2: I'll begin with the highlights, then dive into each of our three business lines. Bart will follow with our financials, and we will conclude with our outlook before we open the floor for the question and answer session.

Speaker #2: I'm pleased to report that Alfen delivered a solid first half of 2026, with revenue reaching €261.5 million, representing a 23.6% increase compared to the first half of 2025.

Speaker #2: This growth was driven primarily by our energy storage system business and continued momentum in our smart grid solutions. Our adjusted gross margin for the period was €68.3 million, or 26.1% of revenue, compared to €61.6 million, or 29.1% of revenue, in the first half of '25.

Michael Colijn: This growth was driven primarily by our Energy Storage Systems business and continued momentum in our Smart Grid Solutions. Our adjusted gross margin for the period was EUR 68.3 million, or 26.1% of revenue, compared to EUR 61.6 million, or 29.1% of revenue in the H1 2025. The margin percentage decline is attributable to a business unit mix shift towards Energy Storage Systems. The underlying margins in each of our business units remain healthy and are performing within their expected ranges. Turning to profitability, our adjusted EBITDA increased to EUR 16.4 million, compared to EUR 13 million in the H1 2025. Our adjusted EBITDA margin improved to 6.3% from 6.1% in the prior year. I am also excited to announce that we appointed business unit directors for all business units, representing a next step in our transformation.

Michael Colijn: This growth was driven primarily by our Energy Storage Systems business and continued momentum in our Smart Grid Solutions. Our adjusted gross margin for the period was EUR 68.3 million, or 26.1% of revenue, compared to EUR 61.6 million, or 29.1% of revenue in the H1 of 2025. The margin percentage decline is attributable to a business unit mix shift towards Energy Storage Systems. The underlying margins in each of our business units remain healthy and are performing within their expected ranges. Turning to profitability, our adjusted EBITDA increased to EUR 16.4 million, compared to EUR 13 million in the H1 of 2025. Our adjusted EBITDA margin improved to 6.3% from 6.1% in the prior year. I am also excited to announce that we appointed business unit directors for all business units, representing a next step in our transformation.

Speaker #2: The margin percentage decline is attributable to a business unit mix shift towards energy storage systems. The underlying margins in each of our business units remain healthy and are performing within their expected ranges.

Speaker #2: Turning to profitability, our adjusted EBITDA increased to €16.4 million compared to €13 million in the first half of '25. Our adjusted EBITDA margin improved to 6.3% from 6.1% in the prior year.

Speaker #2: I'm also excited to announce that we have appointed business unit directors for all business units, representing a next step in our transformation. This solid first half reinforces our confidence in our full-year guidance, which we're reiterating today.

Michael Colijn: This solid H1 reinforces our confidence in our full year guidance, which we are reiterating today. We expect revenue to be between EUR 435 and EUR 475 million, with an adjusted EBITDA margin of 4% to 7%, and capital expenditure below 4% of revenue. As we have indicated previously, our revenue is front-loaded in 2026, particularly in Energy Storage Systems. The H1 results demonstrates that we are executing well operationally while we position Alfen for its next phase. Moving on to the business unit review. I am pleased to report that our Smart Grid Solutions business delivered strong performance in the H1 2026, with revenue reaching EUR 111.6 million, representing a 14.9% increase compared to the H1 2025. We saw growth across the board, with the majority attributable to an increase in project business, with notable mentioning that our transport distribution stations are now a structural part of this.

Michael Colijn: This solid H1 reinforces our confidence in our full year guidance, which we are reiterating today. We expect revenue to be between EUR 435 million and EUR 475 million, with an adjusted EBITDA margin of 4% to 7%, and capital expenditure below 4% of revenue. As we have indicated previously, our revenue is front-loaded in 2026, particularly in Energy Storage Systems. The H1 results demonstrates that we are executing well operationally while we position Alfen for its next phase. Moving on to the business unit review. I am pleased to report that our Smart Grid Solutions business delivered strong performance in the H1 of2026, with revenue reaching EUR 111.6 million, representing a 14.9% increase compared to the H1 2025. We saw growth across the board, with the majority attributable to an increase in project business, with notable mentioning that our transport distribution stations are now a structural part of this.

Speaker #2: We expect revenue to be between €435 million and €475 million, with an adjusted EBITDA margin of 4% to 7%, and capital expenditure below 4% of revenue.

Speaker #2: As we've indicated previously, our revenue is front-loaded in 2026, particularly in energy storage systems. The first half results demonstrate that we're executing well operationally while we position Alfen for its next phase.

Speaker #2: Moving on to the business unit review. I'm pleased to report that our Smart Grid Solutions business delivered strong performance in the first half of '26, with revenue reaching €111.6 million, representing a 14.9% increase compared to the first half of '25.

Speaker #2: We saw growth across the board, with the majority attributable to an increase in project business, with notable mention that our transport distribution stations are now a structural part of this.

Speaker #2: But we also saw an increase in revenue from grid operators in the first half, driven by a stable quarter-over-quarter pattern. As a reminder, last year two grid operators adjusted their forecasts downwards after Q1, for which we had to correct in the remainder of the year.

Michael Colijn: We also saw an increase in revenue from grid operators in the H1, driven by a stable quarter-over-quarter pattern. As a reminder, last year, two grid operators adjusted their forecast downwards after Q1, for which we had to correct in the remainder of the year. 69% of revenue came from the grid operator products and 31% from projects. Operationally, we delivered 1,716 substations during the period, 1,199 in the Netherlands and 517 in Finland. The sharp increase in Finnish substations is attributable to a higher demand. Gross margin performance remained within the expected range at 22.9%, up from 22.4% in the prior year. This improvement was primarily driven by the higher share of project sales in our revenue mix. Looking at the market dynamics, we are seeing structural grid congestion continuing to drive the substantial need for grid expansions, something that is increasingly recognized by governments across Europe.

Speaker #2: Sixty-nine percent of revenue came from the grid operator products, and thirty-one percent from projects. Operationally, we delivered 1,716 substations during the period—1,199 in the Netherlands and 517 in Finland.

Speaker #2: The sharp increase in Finnish substations is attributable to higher demand. Gross margin performance remained within the expected range at 22.9%, up from 22.4% in the prior year.

Speaker #2: This improvement was primarily driven by the higher share of project sales in our revenue mix. Looking at the market dynamics, we are seeing structural grid congestion continuing to drive a substantial need for grid expansions.

Speaker #2: This is something that is increasingly recognized by governments across Europe. At the European level, we saw the Electrification Action Plan published in July, aiming to accelerate the electrification of transport, buildings, and industry.

Michael Colijn: At European level, we saw the electrification action plan, published in July, aiming to accelerate the electrification of transport, buildings, and industry. The objective is to reduce Europe's dependence on fossil fuels, strengthen energy security and competitiveness, and ultimately increase electricity share of the final consumption to around 46% by 2040. This requires not only more electrified transport, buildings and industry, but also the charging infrastructure, energy storage, and electricity grids needed to support that transition. Relevant for our Smart Grid Solutions business is that it identified grid capacity as a key constraint to electrification, and therefore urges member states to boost grid investments and accelerate permitting. Looking at the Netherlands specifically, we are starting to see regulators move from designing measures towards execution, with a regional approach targeting a spatial planning, site development, and permitting.

Speaker #2: The objective is to reduce Europe's dependence on fossil fuels, strengthen energy security and competitiveness, and ultimately increase electricity's share of final consumption to around 46% by 2040.

Speaker #2: This requires not only more electrified transport, buildings, and industry, but also the charging infrastructure, energy storage, and electricity grids needed to support that transition.

Speaker #2: Relevant for our smart grid solutions business is that it identified grid capacity as a key constraint to electrification, and therefore urges member states to boost grid investments and accelerate permitting.

Speaker #2: Looking at the Netherlands specifically, we are starting to see regulators move from designing measures towards execution, with a regional approach targeting spatial planning, site development, and permitting.

Speaker #2: This is further evidenced by the new fast-track regime for grid projects that shortens the appeal procedures from October this year. However, the short-term reality is more balanced.

Michael Colijn: This is further evidenced by the new fast track regime for grid projects that shortens the appeal procedures from October this year. However, the short-term reality is more balanced, with the known key constraining factors still impacting our Smart Grid Solutions clients today, and therefore, we do not expect a volume impact in the current year. But these developments are expected to translate into orders and deliveries over time. Moving over to EV Charging. We faced a decline in the H1, with revenue down 17% to EUR 51.1 million, which is in line with expectations as we renew our portfolio. Our performance reflects similar dynamics to those discussed last quarter. First, the gradual ramp-up of features on our new product continued impacting order volume, although less so in the last few months.

Speaker #2: With the known key constraining factors still impacting our smart grid solutions clients today, we do not expect a volume impact in the current year. However, these developments are expected to translate into orders and deliveries over time.

Speaker #2: Moving over to EV charging. We faced a decline in the first half, with revenue down 17% to €51.1 million, which is in line with expectations as we renew our portfolio.

Speaker #2: Our performance reflects similar dynamics to those discussed last quarter. First, the gradual ramp-up of features on our new product continued impacting order volume, although less so in the last few months.

Speaker #2: Second, uneven order patterns in the public segment, and third, the competitive pressure in the home charging segment, which will stay with us throughout this year until we introduce our new charger for the residential segment.

Michael Colijn: Second, uneven order patterns in the public segment, and third, the competitive pressure in the home charging segment, which will stay with us throughout this year until we introduce our new charger for residential segments. Our adjusted gross margin was 39.9%, compared with 44.1% in the prior year. This is around the midpoint of the expected gross margin range of 35% to 45%, and reflects the introduction of new charger models and ongoing sales campaigns. From a production perspective, we delivered approximately 53,700 in the H1 of 2026, representing a 12.3% decrease compared with the 61,200 charge points delivered in the H1 of 2025. The average sales price decreased due to more competitive pricing strategies. But here's what gives me confidence.

Speaker #2: Our adjusted gross margin was 39.9%, compared with 44.1% in the prior year. This is around the midpoint of the expected gross margin range of 35% to 45%, and reflects the introduction of new charger models and ongoing sales campaigns.

Speaker #2: From a production perspective, we delivered approximately 53,700 in the first half of 2026, representing a 12.3% decrease compared with the 61,200 charge points delivered in the first half of '25.

Speaker #2: The average sales price decreased due to more competitive pricing strategies. But here's what gives me confidence: we're not standing still, and we've taken decisive action to address these challenges head-on, with a comprehensive set of strategic initiatives introduced on this call last quarter.

Michael Colijn: We're not standing still, and we've taken decisive action to address these challenges head on with a comprehensive set of strategic initiatives introduced on this call last quarter. Let me share with you the progress against these initiatives. On the product development front, we are on schedule to launch our new home charging solution, specifically designed to address this competitive market in that segment. For our plus models, we have introduced new features and are rolling out the next update in the next few weeks. Amongst others, solar charging, the availability of the latest OCPP protocol for smart charging, and an upgrade of Alfen's own smart charging network capabilities. These together are significant steps in the right direction. What I'm particularly excited about is that we are rolling out our digital strategy.

Speaker #2: And let me share with you the progress against these initiatives. On the product development front, we are on schedule to launch our new home charging solution.

Speaker #2: Specifically designed to address this competitive market in that segment. For our Plus models, we have introduced new features and are rolling out the next update in the next few weeks, including, among others, solar charging, the availability of the latest OCPP protocol for smart charging, and an upgrade of Alfen's own smart charging network capabilities.

Speaker #2: These together are significant steps in the right direction. What I'm particularly excited about is that we are rolling out our digital strategy. The EVE Control Platform launched last month, and since then we have handled the first service requests remotely through the platform.

Michael Colijn: The Eve Control platform launched last month, and we have since then handled the first service request remotely through the platform. This platform combines asset management capabilities for our customers with efficient service handling. It saves both Alfen and our customers valuable time and resources. This renewed approach with connected chargers allows us to scale effectively through digitalization without adding complexity to the organization. I would now like to dive deeper into the market context. Across Europe, battery electric vehicle registrations continue their upward trajectory. European battery electric vehicle registrations grew 35% in H1. More than one in five new cars in Europe is now fully electric, 22%, against 17% a year ago. Similar to our market update last quarter, the country-specific picture remains mixed.

Speaker #2: This platform combines asset management capabilities for our customers with efficient service handling. It saves both Alfen and our customers valuable time and resources. This renewed approach with connected chargers allows us to scale effectively through digitalization, without adding complexity to the organization.

Speaker #2: I would now like to dive deeper into the market context. Across Europe, battery electric vehicle registrations continue their upward trajectory. European battery electric vehicle registrations grew 35% in the first half.

Speaker #2: More than one in five new cars in Europe is now fully electric—22%, compared to 17% a year ago. Similar to our market update last quarter, the country-specific picture remains mixed.

Speaker #2: In our core markets, major car markets are driving European growth figures, while the Netherlands and Belgium are on the lower end of the spectrum.

Michael Colijn: In our core markets, major car markets are driving European growth figures, while the Netherlands and Belgium are on the lower end of the spectrum, reflecting their mature market status. Conversely, Alfen's expanding markets are demonstrating strong momentum, with Italy and Spain showing robust year-on-year improvements in battery electric vehicle registrations. Current geopolitical tensions have created a re-acceleration of demand in 2026, with fuel price hikes driving renewed consumer interest in electric mobility. At the same time, we are seeing renewed policy support across the European markets this year. As a result, this positively influences the total cost of ownership, which was already compelling for battery electric vehicles compared to internal combustion engine counterparts. This is starting to become a reality for all vehicle segments as new models hit the market that are cheaper and deliver superior performance.

Speaker #2: Reflecting their mature market status. Conversely, Alfen’s expanding markets are demonstrating strong momentum, with Italy and Spain showing robust year-on-year improvements in battery electric vehicle registrations.

Speaker #2: Current geopolitical tensions have led to a re-acceleration of demand in 2026. With fuel price hikes driving renewed consumer interest in electric mobility, at the same time we are seeing renewed policy support across the European markets this year.

Speaker #2: As a result, this positively influences the total cost of ownership, which was already compelling for battery electric vehicles compared to internal combustion engine counterparts.

Speaker #2: This is starting to become a reality for all vehicle segments, as new models hit the market that are cheaper and deliver superior performance. It further reinforces our view that electric vehicle adoption will increasingly be driven by consumer adoption, rather than regulatory support alone.

Michael Colijn: It further reinforces our view that electric vehicle adoption will increasingly be driven by consumer adoption rather than regulatory support alone. In all, we are on an undeniable path towards electric transport, and this will translate to sustained demand for charging infrastructure across all our European markets in the coming years. While we are currently renewing our portfolio, we expect to benefit again from this momentum in the coming years. Moving to Energy Storage, where we saw a result of strong execution during H1 of the year. Revenue reached EUR 98.8 million, representing an 88% increase compared to H1 of 2025. This significant growth was primarily driven by achieving major milestones in two of Alfen's largest projects to date, complemented by positive momentum for our mobile storage systems, which grew significantly in revenue compared to H1 of last year.

Speaker #2: Overall, we are on an undeniable path towards electric transport, and this will translate to sustained demand for charging infrastructure across all our European markets in the coming years.

Speaker #2: While we are currently renewing our portfolio, we expect to benefit again from this momentum in the coming years. Moving to energy storage, we saw the result of strong execution during the first half of the year.

Speaker #2: Revenue reached €98.8 million, representing an 88% increase compared to the first half of '25. This significant growth was primarily driven by achieving major milestones in two of Alfen's largest projects to date.

Speaker #2: Complemented by positive momentum for our mobile storage systems, which grew significantly in revenue compared to the first half of last year. More specifically, we have seen an increase in traction against the second half of last year, mostly coming from large power rentals that rent our systems to replace traditional diesel gensets for a variety of use cases, including construction sites, events, or grid services.

Michael Colijn: More specifically, we have seen an increase in traction against H2 of last year, mostly coming from large power rentals that rent our systems to replace traditional diesel gen sets for a variety of use cases, including construction sites, events or grid services. Our gross margin for the period was 22.8%, which positions us comfortably above the midpoint of our expected range of 15% to 25%. I want to provide some context here. In H1 of 2025, our gross margin was elevated to 28.5% due to one-off items, including the release of project contingencies. Turning to our backlog and pipeline, at the end of H1, we had EUR 93 million in our backlog, with EUR 37 million scheduled for delivery in 2026, and the remaining EUR 56 million for 2027.

Speaker #2: Our gross margin for the period was 22.8%, which positions us comfortably above the midpoint of our expected range of 15% to 25%. I want to provide some context here.

Speaker #2: In the first half of '25, our gross margin was elevated to 28.5% due to one-off items, including the release of project contingencies. Turning to our backlog and pipeline, at the end of the first half, we had €93 million in our backlog, with €37 million scheduled for delivery in '26, and the remaining €56 million for '27.

Speaker #2: The underlying pipeline remains healthy, and the pace at which orders are converted reflects the lumpiness inherent in our project-based business, rather than a change in underlying demand.

Michael Colijn: The underlying pipeline remains healthy and the pace at which orders are converted reflects the lumpiness inherent in our project-based business rather than a change in underlying demand. To give you some color, we recorded approximately EUR 30 million of new order intake since the end of Q2, including EUR 6 million in mobile storage orders that can be executed in H2 2026, given their shorter order-to-revenue cycle. During H2 of the year, we will focus on filling the order book for next year. The trajectory is expected to be consistent with our year-on-year revenue growth ambition. Now let me address timing dynamics candidly. Given typical project timelines and component lead times for utility scale Energy Storage Systems, the natural window for converting pipeline opportunities into 2026 revenue is very tight.

Speaker #2: To give you some color, we recorded approximately €30 million of new order intake since the end of the second quarter, including €6 million in mobile storage orders that can be executed in the second half of '26, given their shorter order-to-revenue cycle.

Speaker #2: During the second half of the year, we will focus on filling the order book for next year. The trajectory is expected to be consistent with our year-on-year revenue growth ambition.

Speaker #2: Now, let me address timing dynamics candidly. Given typical project timelines and component lead times for utility-scale energy storage systems, the natural window for converting pipeline opportunities into 2026 revenue is very tight.

Speaker #2: In July, Alfen and CATL announced a partnership to deploy sodium-ion battery storage across Europe. It extends our cooperation we have had with CATL for years, now into a new battery technology.

Michael Colijn: In July, Alfen and CATL announced a partnership to deploy sodium ion battery storage across Europe. It extends our cooperation we have had with CATL for years, now into a new battery technology. Sodium ion technology is promising and aligns with our view of where the market is heading. The raw materials are more widely available, compared to lithium, about 1,000 times more abundant. Its safety performance is strong. It is able to operate reliably across a much wider temperature range, and the expected service life is long. The energy density is slightly lower, but for stationary storage systems, that is acceptable and often not the primary buying criterion. With this technology, we aim to diversify our portfolio, meaning that sodium ion complements our lithium-ion offering. Let me also share some detail on timing.

Speaker #2: Sodium-ion technology is promising and aligns with our view of where the market is heading. The raw materials are more widely available compared to lithium—about 1,000 times more abundant.

Speaker #2: Its safety performance is strong; it is able to operate reliably across a much wider temperature range, and the expected service life is long. The energy density is slightly lower, but for stationary storage systems, that is acceptable and often not the primary buying criterion.

Speaker #2: With this technology, we aim to diversify our portfolio, meaning that sodium-ion complements our lithium-ion offering. Let me also share some detail on timing. We expect to bring our first sodium-ion project to market from the second half of 2027, starting with pilots.

Michael Colijn: We expect to bring our first sodium ion project to market from H2 2027, starting with pilots. This does not yet change what you see in the numbers today. What it does change is our position for the years thereafter. Two technologies, two supply routes, and the engineering capability behind both. In short, we aim to be the front runner in the European market and are convinced that having access to this technology puts us ahead of the curve. Now I'll give the word to Bart to talk you through our financial performance.

Speaker #2: This does not yet change what you see in the numbers today. What it does change is our position for the years thereafter: two technologies, two supply routes, and the engineering capability behind both.

Speaker #2: In short, we aim to be the front-runner in the European market, and we are convinced that having access to this technology puts us ahead of the curve.

Speaker #2: Now I'll give the word to Bart to talk you through our financial performance.

Speaker #1: Yeah, thank you, Michael. I'll now walk you through our financials, starting with the second quarter figures. Revenue came in at €131.7 million, representing a 22.3% increase compared to the €107.7 million in the prior year.

Bart Meussen: Yeah. Thank you, Michael. I'll now walk you through our financials, starting with the Q2 figures. Revenue came in at EUR 131.7 million, representing a 22.3% increase compared to the EUR 107.7 million in the prior year. Similar to Q1, growth is primarily driven by a strong performance in Energy Storage and Smart Grid Solutions. Our group adjusted gross margin reached EUR 34.2 million, equal to 26% of revenue, compared with an adjusted gross margin of EUR 32.4 million or 30.1% in Q2 2025. The percentage decline reflects our business unit mix shift towards Energy Storage Systems, which typically carries different margin characteristics than our other business units. This mix shift was consistent with our expectations. Our EBITDA was EUR 4.2 million in Q2 2026, compared to EUR 5.4 million in Q2 2025. The adjusted EBITDA performance increased in absolute terms from EUR 7.6 million in Q2 last year to EUR 8.2 million this year.

Speaker #1: Similar to the first quarter, growth is primarily driven by a strong performance in energy storage and smart grid solutions. Our group adjusted gross margin reached €34.2 million, equal to 26% of revenue, compared with an adjusted gross margin of €32.4 million, or 30.1%, in Q2 2025.

Speaker #1: The percentage decline reflects our business unit mix shift towards energy storage systems, which typically carries different margin characteristics than our other business units. This mix shift was consistent with our expectations.

Bart Meussen: The percentage decline reflects our business unit mix shift towards Energy Storage Systems, which typically carries different margin characteristics than our other business units. This mix shift was consistent with our expectations. Our EBITDA was EUR 4.2 million in Q2 2026, compared to EUR 5.4 million in Q2 2025. The adjusted EBITDA performance increased in absolute terms from EUR 7.6 million in Q2 last year to EUR 8.2 million this year.

Speaker #1: Our EBITDA was €4.2 million in Q2 2026, compared to €5.4 million in Q2 2025. The adjusted EBITDA performance increased in absolute terms from €7.6 million in Q2 last year to €8.2 million this year.

Speaker #1: The adjusted EBITDA percentage as a share of revenue declined from 7% to 6.3%, which is attributable to the business unit midshift. Looking at our half-year income statement, I'll walk you through the key financial metrics and how they compare to our performance in the first half of 2025.

Bart Meussen: The adjusted EBITDA percentage as share of revenue declined from 7% to 6.3%, which is attributable to the business unit mix shift. Looking at our half year income statement, I will walk you through the key financial metrics and how they compare to our performance in H1 2025. Starting with our top line, we delivered a revenue level increase of 23.6% to EUR 261.5 million, compared with EUR 211.5 million the prior year. As previously indicated, revenue is front-loaded this year, and this H1 performance reflects that pattern. Our adjusted gross margin reached EUR 68.3 million, representing 26.1% of revenue, compared with EUR 63.4 million or 30.1% in H1 2025. Again, the group percentage is lower due to the business unit mix shift. At business unit level, underlying performance remains solid with margins within the expected ranges. No adjustments were made in the gross margin during H1 2026.

Speaker #1: Starting with our top line, we delivered a revenue increase of 23.6% to €261.5 million, compared with €211.5 million in the prior year.

Speaker #1: As previously indicated, revenue is front-loaded this year, and this first-half performance reflects that pattern. Our adjusted gross margin reached €68.3 million, representing 26.1% of revenue, compared with €63.4 million, or 30.1%, in H1 2025.

Speaker #1: Again, the group percentage is lower due to the business unit mid-shift. At the business unit level, underlying performance remains solid, with margins within the expected ranges.

Speaker #1: No adjustments were made in the gross margin during H1 2026. Moving to our operational costs, adjusted personnel expenses increased by 6.1% to €40.1 million, mostly due to labor agreement indexations of roughly 5% since June 2025.

Bart Meussen: Moving to our operational costs. Adjusted personnel expenses increased by 6.1% to EUR 40.1 million, mostly due to labor agreement indexations of roughly 5% since June 2025. Let me touch briefly upon personnel expenses, which we expect to be higher in H2 of this year. During a transition of this kind, the old and the new organization exist side by side for a period. Some roles are still being positioned. Interim agreements are in place while permanent appointments are completed, and we are recruiting and onboarding into the new structure. In addition, we are investing in capabilities ahead of the revenue they support, such as software and project management, which, as you know, are a deliberate part of the strategy direction. This effect is planned for and we expect it to fade out over the course of next year as the transition completes and the new organization settles.

Speaker #1: Let me touch briefly upon personnel expenses, which we expect to be higher in the second half of this year. During a transition of this kind, the old and the new organizations exist side by side for a period.

Speaker #1: Some roles are still being transitioned. Interim agreements are in place while permanent appointments are completed, and we are recruiting and onboarding into the new structure.

Speaker #1: In addition, we are investing in capabilities ahead of the revenue they support, such as software and project management, which, as you know, are a deliberate part of the strategic direction.

Speaker #1: This effect is planned for, and we expect it to fade out over the course of next year, as the transition completes and the new organization settles.

Speaker #1: Adjusted other operating expenses decreased by 4.3% to €11.5 million, compared with €12.1 million in H1 2025, as a result of strict cost control measures, which we will continue.

Bart Meussen: Adjusted other operating expenses decreased by 4.3% to EUR 11.5 million, compared with EUR 12.1 million in H1 2025, as a result of strict cost control measures, which we will continue. EBITDA was EUR 11 million in H1 2026 compared to EUR 9.6 million in H1 2025, our prior year. We adjusted for one-off costs in the first half year. I will sum them up for you. First, we have recognized one-off cost of EUR 3.5 million related to the restructuring we announced in February. This amount was primarily driven by settlement agreements and therefore impacting personnel expenses. Second, we took EUR 1.7 million one-off transformation costs, which covers non-personnel related transformation linked costs, for example, advisory costs, therefore impacting other operating costs. Third, EUR 0.2 million share-based payments associated with our long-term incentive plans. You have seen the details in our semi-annual report.

Speaker #1: EBITDA was €11 million in H1 2026, compared to €9.6 million in H1 2025, our prior year. We adjusted for one-off costs in the first half year.

Speaker #1: I'll sum them up for you. First, we recognized a one-off cost of €3.5 million, related to the restructuring we announced in February. This amount was primarily driven by settlement agreements and therefore impacted personnel expenses.

Speaker #1: Second, we took €1.7 million in one-off transformation costs, which covers non-personnel-related transformation-linked costs—for example, advisory costs. Therefore, impacting other operating costs. And third, €0.2 million in share-based payments associated with our long-term incentive plans.

Speaker #1: We have seen the details in our semi-annual report. Together, the total €5.4 million in special items brings us to an adjusted EBITDA performance of €16.4 million, representing an improvement in absolute terms from €13.0 million in the comparable prior-year period.

Bart Meussen: Together, they total EUR 5.4 million special items, which brings us to an adjusted EBITDA performance of EUR 16.4 million, representing an improvement in absolute terms from EUR 13 million in the comparable prior year period. Adjusted EBITDA as a share of revenue increased slightly from 6.1% to 6.3%. Our net loss improved from EUR 1.3 million in H1 2025 to a loss of EUR 0.5 million the first half of this year. When adjusting though for one-off cost and special items after tax, net profit amounted to EUR 3.6 million compared to EUR 1.3 million in the prior year period. This represents an improvement in our underlying profitability. Looking then at our balance sheet position at the end of June of this year, starting with the asset side. Non-current assets remain stable, reflecting our continued investment in our operational infrastructure to support our growth strategy.

Speaker #1: Adjusted EBITDA as a share of revenue increased slightly from 6.1% to 6.3%. Our net loss improved from €1.3 million in H1 2025 to a loss of €0.5 million in the first half of this year.

Speaker #1: When adjusting, though, for one-off costs and special items after tax, net profit amounted to €3.6 million, compared to €1.3 million in the prior-year period.

Speaker #1: This represents an improvement in our underlying profitability. Looking then at our balance sheet position at the end of June this year, starting with the asset side.

Speaker #1: Non-current assets remain stable, reflecting our continued investment in our operational infrastructure to support our growth strategy. Current assets showed an increase in our accounts receivable position due to the front-loaded first half of the year.

Bart Meussen: Current assets showed an increase of our accounts receivable position due to the front-loaded H1 of the year. Furthermore, I would like to point out the significant reduction in inventory, which directly contributed to cash generation during H1 2026. This led to a substantial increase in cash and cash equivalents, rising from EUR 26.7 million at year-end 2025 to EUR 51.1 million as of 30 June 2026. Moving to the liability side of the balance sheet. Non-current liabilities remained broadly stable. Our debt position, including lease liabilities, decreased by EUR 4.5 million following scheduled repayments. Provisions increased as a result of restructuring measures implemented during H1 2026. The current liabilities increased, primarily driven by a EUR 30.5 million increase in trade payables, which contributed positively to our working capital position. This reflects the timing of our Energy Storage Systems projects. Our borrowings position improved considerably.

Speaker #1: Furthermore, I would like to point out the significant reduction in inventory, which directly contributed to cash generation during H1 2026. This led to a substantial increase in cash and cash equivalents, rising from €26.7 million at year-end 2025 to €51.1 million as of June 30, 2026.

Speaker #1: Moving to the liability side of the balance sheet, non-current liabilities remained broadly stable. Our debt position, including lease liabilities, decreased by €4.5 million following scheduled repayments.

Speaker #1: Provisions increased as a result of restructuring measures implemented during H1 2026. The current liabilities increased, primarily driven by a €30.5 million increase in trade payables, which contributed positively to our working capital position.

Speaker #1: This reflects the timing of our energy storage system projects. Our borrowings position improved considerably. We moved from a net debt position of €20.7 million at the last day of last year to a net cash position of €6.2 million at June 30, 2026.

Bart Meussen: We moved from a net debt position of EUR 27.7 million at the last day of last year to a net cash position of EUR 6.2 million at 30 June 2026. This represents a swing of nearly EUR 27 million. Equity remains solid, supported by our improved profitability in the period, providing a stable foundation for our continued growth investments. Overall, our balance sheet demonstrates the effectiveness of our working capital initiatives and positions us well to execute on our strategic priorities for the remainder of 2026. Let me now take you through our working capital development. This showed a healthy development over the H1. Our working capital decreased by EUR 23.1 million during H1 2026, an improvement that was the primary driver behind our strong operating cash flow of EUR 36.5 million, compared to EUR 10.8 million in the same period. Breaking this down into the key components.

Speaker #1: This represents a swing of nearly €27 million. Equity remained solid, supported by our improved profitability in the period, providing a stable foundation for our continued growth investments.

Speaker #1: Overall, our balance sheet demonstrates the effectiveness of our working capital initiatives and positions us well to execute on our strategic priorities for the remainder of 2026.

Speaker #1: Let me now take you through our working capital development, which showed a healthy improvement over the first half. Our working capital decreased by €23.1 million during H1 2026, an improvement that was the primary driver behind our strong operating cash flow of €36.5 million, compared to €10.8 million in the same period last year.

Speaker #1: Breaking this down into the key components. Inventory decreased by 19.7 million compared to end of last year, primarily driven by the energy storage battery allocation for a larger project.

Bart Meussen: Inventory decreased by EUR 19.7 million compared to end of last year, primarily driven by the energy storage battery allocation for a larger project. Looking at the mobile storage side, with strong mobile sales in Q2, we made a significant step in structurally bringing down battery inventory that was on the books with us for some time now. For EV Charging inventory decreased slightly, whereas Smart Grid Solutions, the inventory of it increased. This increase is related to higher stock levels to bridge the summer period and Alfen Elkamo in Finland to cope with increased production levels over there. Since we are discussing inventory, I would like to mention that contrary to the last years, we are not anticipating a further reduction for the remainder of this year.

Speaker #1: Looking at the mobile storage side, with strong mobile sales in the second quarter, we made a significant step in structurally bringing down battery inventory that was on the books with us for some time now.

Speaker #1: For EV charging, inventory decreased slightly, whereas for smart grid solutions, the inventory increased. This increase is related to higher stock levels to bridge the summer period and of an ELCOMO in Finland to cope with increased production levels over there.

Speaker #1: Since we are discussing inventory, I'd like to mention that, contrary to previous years, we are not anticipating a further reduction for the remainder of this year.

Speaker #1: Trade and other receivables, as well as trade payables, showed an increase triggered by the activity level in the first half of this year. The combined effect is therefore limited.

Bart Meussen: Trade and other receivables, as well as trade payables, showed an increase triggered by the activity level in the H1 of this year. The combined effect is therefore limited. We remain focused on sustainable cash generation from our EBITDA results and working capital management needed to execute on our strategic priorities. With that, I would like to hand back the call to Michael.

Speaker #1: We remained focused on sustainable cash generation from our EBITDA results and working capital management needed to execute on our strategic priorities. And with that, I'd like to hand back the call to Michael.

Speaker #2: Thank you, Bart. Let me update you on our leadership changes that were made in line with our new organizational model. During the second quarter, we announced management changes in line with our new business unit structure.

Michael Colijn: Thank you, Bart. Let me update you on our leadership changes that were made in line with our new organizational model. During the second quarter, we announced management changes in line with our new business unit structure. With the appointment of three business unit directors, the leadership of our business units is now complete. Each unit will be led by a dedicated director, accountable for its performance and its development. Stephanie Schockaert has been appointed as Business Unit Director for Energy Storage Systems. Stephanie has been with Alfen since 2017 and previously served as sales director for the business unit. She knows our customers, projects, and the market deeply. Eva Aatsamo has been appointed as Business Unit Director for EV Charging. Eva brings over 25 years of international leadership experience in the energy and mobility sectors. Finally, Evert Kootstra has been appointed Business Unit Director for Smart Grid Solutions.

Speaker #2: With the appointment of three business unit directors, the leadership of our business units is now complete. Each unit will be led by a dedicated director, accountable for its performance and its development.

Speaker #2: Stephanie Shockhart has been appointed as Business Unit Director for Energy Storage Systems. Stephanie has been with Alfen since 2017 and previously served as Sales Director for the business unit.

Speaker #2: She knows customers’ projects and the market deeply. Eva Arzidemo has been appointed as Business Unit Director for EV Charging. Eva brings over 25 years of international leadership experience in the energy and mobility sectors.

Speaker #2: And finally, Evert Kooistra has been appointed Business Unit Director for Smart Grid Solutions. Evert brings more than 25 years of senior leadership experience across technology, e-mobility, and finance.

Michael Colijn: Evert brings more than 25 years of senior leadership experience across technology, e-mobility, and finance. Together with the appointment of our new HR Director, Marieke Horneman, I am confident that we have the business leadership to guide us in the next phase of our transformation. On the right side of the page, we have outlined our new governance structure. Turning to our outlook. The solid performance in H1 reinforces our full 2026 guidance. Therefore, we reiterate our guidance in full. Expect revenue to be between EUR 435 million and EUR 475 million. Our adjusted EBITDA margin guidance for 2026 is between 4% and 7%, and our CapEx is expected to remain below 4% of revenue. On business line level, Smart Grid Solutions revenue is anticipated to increase for both grid operator products and projects.

Speaker #2: Together with the appointment of our new HR Director, Marieke Hoorneman, I'm confident that we have the business leadership to guide us in the next phase of our transformation.

Speaker #2: On the right side of the page, we have outlined our new governance structure. Now, turning to our outlook: The solid performance in the first half reinforces our full 2026 guidance.

Speaker #2: Therefore, we reiterate our guidance in full. We expect revenue to be between €435 million and €475 million. Our adjusted EBITDA margin guidance for 2026 is between 4% and 7%, and our capex is expected to remain below 4% of revenue.

Speaker #2: At the business line level, smart grid solutions revenue is anticipated to increase for both grid operator products and projects. While we're making every effort to restore EV charging revenue to growth for our 2026 planning, we assume a reduction as we upgrade our portfolio and services.

Michael Colijn: While we are making every effort to restore EV Charging revenue to growth for our 2026 planning, we assume a reduction as we upgrade our portfolio and services. For Energy Storage, we anticipate year-on-year growth while our revenue distribution remains consistent with the front-loaded pattern we communicated during the last two updates. I want to be as transparent as possible on where that leaves us for the H2 of the year. The H2 will be softer than the H1, resulting in a lower top line compared to the H2 last year and the H1 this year. As a consequence, we expect this to affect our adjusted EBITDA in the remainder of the year. For 2027, we remain confident that the transformation, combined with our outlined growth strategies, will reignite consistent, profitable growth, resulting in year-over-year improvements in both revenue and adjusted EBITDA margin.

Speaker #2: For energy storage, we anticipate year-on-year growth, while our revenue distribution remains consistent with the front-loaded pattern we communicated during the last two updates. I want to be as transparent as possible about where that leaves us for the second half of the year.

Speaker #2: The second half will be softer than the first half, resulting in a lower top line compared to the second half last year and the first half this year.

Speaker #2: As a consequence, we expect this to affect our adjusted EBITDA for the remainder of the year. For 2027, we remain confident that the transformation, combined with our outlined growth strategies, will reignite consistent, profitable growth, resulting in year-over-year improvements in both revenue and adjusted EBITDA margin.

Speaker #2: Lastly, we are convinced that the European energy system will continue to electrify over the coming decades. Alfen’s three complementary business units are strategically positioned at the heart of the transition towards electrification.

Michael Colijn: Lastly, we are convinced that the European energy system will continue to electrify over the coming decades. Alfen's three complementary business units are strategically positioned at the heart of the transition towards electrification. With that, Alfen aims to be the go-to company when battling grid congestion. 2026, as we said previously, is our transformation year, focused on establishing the capabilities and market position that will drive long-term profitable growth. The progress we have made in the H1 reinforces our confidence in executing this successfully. The future, we believe, is electric. Thank you. We will now open the floor for questions from our analysts.

Speaker #2: And with that, Alfen aims to be the go-to company when battling grid congestion. 2026, as we said previously, is our transformation year, focused on establishing the capabilities and market position that will drive long-term profitable growth.

Speaker #2: The progress we've made in the first half-year reinforces our confidence in executing this successfully. The future, we believe, is electric. Thank you. We'll now open the floor for questions from our analysts.

Speaker #3: Ladies and gentlemen, we are now ready to take your questions. If you wish to ask a question, please press the pound key five on your telephone keypad to enter the queue.

Operator: Ladies and gentlemen, we are now ready to take your questions. If you wish to ask a question, please press pound key 5 on your telephone keypad to enter the queue. Our first question comes from Nikita Pappachio from Deutsche Bank. Please go ahead.

Speaker #3: Our first question comes from Nikita Papacio from Deutsche Bank. Please go ahead.

Speaker #4: Good morning. Thank you for taking my questions. I have two questions. The first one is on your charging business. You are now targeting improvement for 2027 and, maybe in the long term, a return to the initial margins we saw a couple of years back.

Nikita Pappachio: Good morning. Thank you for taking my questions. I will have two. The first one is on your charging business. You are targeting now for 2027 year improvement and maybe in the long term, returning to initial margins we saw a couple of years back. Do you think that you need the huge turnaround in the chargers to hit this margin level? Especially with the new home charger, do you think that the margin or the gross margin of the business will deteriorate with this new charger, or is it as competitive as, or as profitable as the other products were? The second one is on your guidance for the clarification on the margins, which we should think of in H2. Are there any mitigation measures in H2 to limit the impact from lower top line and also higher personal costs? Thank you.

Nikita Pappaccio: Good morning. Thank you for taking my questions. I will have two. The first one is on your charging business. You are targeting now for 2027 year improvement and maybe in the long term, returning to initial margins we saw a couple of years back. Do you think that you need the huge turnaround in the chargers to hit this margin level? Especially with the new home charger, do you think that the margin or the gross margin of the business will deteriorate with this new charger, or is it as competitive as, or as profitable as the other products were? The second one is on your guidance for the clarification on the margins, which we should think of in H2. Are there any mitigation measures in H2 to limit the impact from lower top line and also higher personal costs? Thank you.

Speaker #4: Do you think that you need a huge turnaround in the chargers to hit this margin level? And especially with the new home charger, do you think that the margin, or the gross margin, of the business will deteriorate with this new charger?

Speaker #4: Or is it as competitive or as profitable as the other products were? The second one is on your guidance: the clarification on the margin we should think of in H2.

Speaker #4: Are there any mitigation measures in H2 to limit the impact from a lower top line and also higher personnel costs? Thank you.

Speaker #2: Thank you, Nikita, for your question. I will take the first question on the EV charging business, and Bart will answer the guidance question second.

Michael Colijn: Thank you, Nikita, for your question. I will take the first question on the EV Charging business, and Bart will answer the guidance question second. Regarding the EV Charging business, as I said earlier, we are using 2026 to transform the business by developing new hardware, launching our digital platforms, and making sure that we are prepared for future growth in that area. Again, the home charger, which is under development, is not only the hardware itself, but it is also the first step for us to renew our position in all three segments, which are home, business, and public, because it uses the same software platform that we are rolling out now. As such, I expect that rollout across those three to also keep stable our position there.

Speaker #2: Regarding the EV charging business, as I said earlier, we are using 2026 to transform the business by developing new hardware, launching our digital platforms, and making sure that we are prepared for future growth in that area.

Speaker #2: Again, the home charger, which is under development, is not only the hardware itself, but it is also the first step for us to renew our position in all three segments—home, business, and public—because it uses the same software platform that we're rolling out now.

Speaker #2: And as such, I expect that rollout across those three to also keep stable our position there, and it will help to improve profit, but it will also make sure that we get our footing back and our growth.

Michael Colijn: It will help to improve profits, but it will also make sure that we get our footing back and our growth. Regarding the long-term outlook, everything we are doing today is about building our platform stable, that is really future-proof with all the features that we need to compete head-on in a competitive market.

Speaker #2: Regarding the long-term outlook, everything we're doing today is about building our platform to be stable and truly future-proof, with all the features that we need to compete head-on in a competitive market.

Speaker #1: Yeah, and then we did come back to the first question, Nikita—you asked that. So, for the first half year, as we just mentioned, we reiterate the outlook.

Bart Meussen: Yeah, and then indeed coming back to the first question, Nikita, you asked there. So, good H1, as we just mentioned, we reiterate the outlook. We said also front load this year, which means Michael said it in his introduction, a softer H2. Market providers still both challenges and opportunities. So we keep that outlook and obviously with a softer half year, there is this dynamic of the leverage effect, the ability of the organization to cover the organizational costs and de-labor costs linked to the transformation. And obviously it is our full focus, to your question, to win tenders not only for next year, but also for this year, drive sales, keep our strict cost control, and when it comes to more cash, keep a strict focus on our working capital.

Speaker #1: We also set a front-loaded year, which means, as Michael said in his introduction, a softer second half of the year. Market conditions still present both challenges and opportunities.

Speaker #1: So we keep that outlook, and obviously with a softer half year, there is this dynamic of the leverage effect—the ability of the organization to cover the organizational costs.

Speaker #1: And the labor costs linked to the transformation. And obviously, it's our full focus—to your question—to win tenders, not only for next year but also for this year.

Speaker #1: Drive sales, keep our strict cost control, and when it comes to more cash, keep a strict focus on our working capital. And that is what we have been doing.

Bart Meussen: And that is what we have been doing, and that is what we will continue to do so the remainder of the year.

Speaker #1: And that is what we will continue to do for the remainder of the year.

Speaker #4: Thank you very much.

Nikita Pappachio: Thank you very much.

Nikita Pappaccio: Thank you very much.

Speaker #3: The following question comes from David Kerstens from Jefferies. Please go ahead.

Operator: The following question comes from David Kerstens from Jefferies. Please go ahead.

Speaker #5: Good morning, gentlemen. Thank you for the presentation. I have two questions. First, on your Smart Grids business. You had strong momentum in the first half of the year, driven by the project business leading to higher margins, but not yet that much from grid de-bottlenecking, which you don't expect to impact revenues in the second half of the year.

David Kerstens: Good morning, gentlemen. Thank you for the presentation. I have two questions. First, on your Smart Grid Solutions business, you had a strong momentum in the H1 of the year driven by the project business leading to higher margins, but not yet that much from grid de-bottlenecking, which you don't expect to impact revenues in the H2 of the year. But the question is, will you be able to maintain the momentum you had in the H1 with revenues of over EUR 55 million? Should we assume that will also be achievable for the H2 of the year? The second question is on the follow-up on the personnel expenses. The EUR 40 million in the H1, you said, will be higher in the H2.

Speaker #5: But the question is, will you be able to maintain the momentum you had in the first half, with revenues of over €55 million? Should we assume that will also be achievable for the second half of the year?

Speaker #5: And the second question is a follow-up on the personal expenses. The €40 million in the first half, you said would be higher in the second half.

Speaker #5: Can you give an indication of how much higher? And can you give a rough indication of what the impact is of the transformation—that will then disappear in 2027—and what would be a normalized level for personnel expenses given your current headcount?

David Kerstens: Can you give an indication how much higher, and can you give an indication roughly what the impact is of the transformation that then will disappear in 2027, and what would be a normalized level for personnel expenses given your current headcount? Thank you very much.

Speaker #5: Thank you very much.

Speaker #2: Thank you, David. I think that I'll take the first question and Bart will take the second question. Regarding your SGS question, I'm really delighted with the question.

Michael Colijn: Thank you, David. I think that I'll take the first question, and Bart will take the second question. Regarding your SGS question, I'm really delighted with the question. One of the things that we are doing this year with focus is to make sure that we are as predictable as possible. In terms of the SGS business, we would expect that it will be a predictable, smooth ride for the remainder of the year, meaning that we would see a continuation of revenues as planned. Exactly. When it comes to the personnel cost, your second question, indeed, the personnel cost H2 of the year higher than H1 of the year, really linked to the transformation effort, which is broad, and we are fully into it.

Speaker #2: One of the things that we are doing this year with focus is to make sure that we are as predictable as possible. And, in terms of the SGS business, we would expect that it will be a predictable, smooth ride for the remainder of the year, meaning that we would see continuation of revenues as planned.

Speaker #1: Yeah, exactly. And when it comes to the personnel cost—your second question—indeed, the personnel cost in the second half of the year was higher than in the first half of the year, really linked to the transformation effort, which is broad, and we're fully into it.

Bart Meussen: Exactly. When it comes to the personnel cost, your second question, indeed, the personnel cost H2 of the year higher than H1 of the year, really linked to the transformation effort, which is broad, and we are fully into it. Personnel costs H1 also higher than H1 last year, but obviously that is not only transformation but also the inflation, the labor agreement components, roughly 5% coming in. These figures have been included in the outlook of this year, which we reiterated. An outlook for 2027, we don't give at this moment.

Speaker #1: The personnel cost in H1 is also higher than H1 last year, but obviously that is not only due to transformation, but also inflation. The labor agreement component, roughly 5%, is coming in.

Michael Colijn: Personnel costs H1 also higher than H1 last year, but obviously that is not only transformation but also the inflation, the labor agreement components, roughly 5% coming in. These figures have been included in the outlook of this year, which we reiterated. An outlook for 2027, we don't give at this moment.

Speaker #1: These figures have been included in the outlook for this year, which we reiterated in our outlook for 2027. We don't give that at this moment.

Speaker #5: Yeah. And just to clarify, the €40 million is adjusted for the restructuring charge, right? And that is the basis for guidance for the second half.

David Kerstens: And just to clarify, the EUR 40 million is adjusted for restructuring charge, right? And that is the basis for guidance for the H2. The EUR 40 million will be higher in the H2 of the year.

Speaker #5: The €40 million will be higher in the second half of the year.

Speaker #1: Yeah. So, we make a distinction between, indeed, the one-off restructuring cost of €3.5 million linked to the transformation program and the running cost, just in our P&L, of the amount you mentioned.

Michael Colijn: Yeah. So we make a distinction between indeed the one-off restructuring cost of EUR 3.5 million, linked to the transformation program and the running cost just in our P&L of the margin management.

Speaker #5: All right. Thank you very much.

David Kerstens: All right. Thank you very much.

Speaker #3: The following question comes from Luke van Beek from De Groof Biedeke. Please go ahead.

Operator: The following question comes from Luuk van Beek from Degroof Petercam. Please go ahead.

Speaker #6: Yes, good morning. First of all, a question about your EV chargers. You mentioned a new home charger. A couple of questions about that—so, one is, when do you expect that to start to improve your revenues?

Luuk van Beek: Yes, good morning. First of all, a question about your EV chargers. You mentioned a new home charger. A couple of questions about that. One is, when do you expect that to start to improve your revenues? Also, how long do you think it will take you to roll it out to the other end markets and basically use the new platform for all of your chargers? Furthermore, I was wondering there if the production of the new charger will be more efficient, so that will support your gross margin. On Energy Storage Systems, I was wondering if H2 will also be front-end loaded, or that we should expect the orders to be delivered more evenly between Q3 and Q4.

Speaker #6: And also, how long do you think it will take you to roll it out to the other end markets and basically use the new platform for all of your charges?

Speaker #6: Furthermore, I was wondering whether the production of the new charger will be more efficient, so that will support your gross margin. And on energy storage systems, I was wondering if H2 will also be front-end loaded, or if we should expect the orders to be delivered more evenly between Q3 and Q4.

Speaker #2: Okay, thank you, Luke, for those questions. Again, I think I will take the first question and Bart will take the second question. Regarding EV charging, we expect to see the full impact of the new home charger in 2027.

Michael Colijn: Okay. Thank you, Luuk, for those questions. Again, I think the first question I will take and Bart will take the second question. Regarding EV Charging, we expect to see the full impact of the new home charger in 2027, and all our chargers will also move to that new platform in 2027. So we should really reap the benefits of having a unified platform across our EV Charging business. With production costs, of course, when we designed the new charger, we kept in mind that we are in a competitive market and that we need to see the ability to compete head-on in the coming years. It is an ongoing effort, it is not a one-off. But obviously we are aware that competition is strong, and we intend to be also competing with everybody else in that market.

Speaker #2: And all our chargers will also move to that new platform in 2027, so we should really reap the benefits of having a unified platform across our EV charging business.

Speaker #2: With production costs, of course, when we designed the new charger, we kept in mind that we are in a competitive market and that we need to see the ability to compete head-on in the coming years.

Speaker #2: And it's an ongoing effort—it's not a one-off. But obviously, we're aware that competition is strong, and we intend to also be competing with everybody else in that market.

Speaker #1: Yeah. And coming back to the backlog question for our battery systems, that business unit, €56 million by the end of June backlog for next year, the year 2027.

Bart Meussen: Yeah, coming back to the backlog question for our battery systems, that business unit, EUR 56 million by the end of June backlog for next year, the year 2027. Since then, we have seen we scored additional orders already, not only for this year, but also especially for next year. Then we recognize a healthy pipeline, and the idea is to get some wins from that in the course of the coming months and quarters. We are confident that we will end up with at least the level we had last year, same period, that was around some EUR 20 million.

Speaker #1: Since then, we've seen that we've secured additional orders already—not only for this year, but especially for next year. And, yes, we recognize a healthy pipeline.

Speaker #1: And yeah, the idea is to get some wins from that in the course of the coming months and quarters. We're confident that we will end up with at least the level we had last year, same period.

Speaker #1: That was around 20 million.

Speaker #6: Yeah, but I was asking about the split between Q3 and Q4. Is there?

Luuk van Beek: Yeah, but I was asking about the split between Q3 and Q4. Is there

Speaker #1: Yeah. So, we don't provide details now over the exact months and quarters. That also relates to the lumpiness of this business. You can just win several small orders, or a bigger order, and that immediately has an impact—smaller or bigger—on the backlog.

Michael Colijn: Yeah. We do not provide details now over the exact months and quarters. That also relates to the lumpiness of this business. You can just win several small orders or a bigger order, and that immediately has an impact, a smaller order, bigger on the backlog. Of course, the sooner, the better, of course.

Bart Meussen: Yeah. We do not provide details now over the exact months and quarters. That also relates to the lumpiness of this business. You can just win several small orders or a bigger order, and that immediately has an impact, a smaller order, bigger on the backlog. Of course, the sooner, the better, of course.

Speaker #1: Of course, the sooner, the better, of course.

Speaker #6: And one quick follow-up question on the OPEX. You mentioned that personnel expenses will go up in H2. Is there any special movement in OPEX to be expected versus H1?

Luuk van Beek: And one quick follow-up question on the OpEx. You mentioned that personnel expenses will go up in H2. Is there any special movement in OpEx to be expected versus H1?

Speaker #1: Sorry, on the other OPEX, you mean?

Bart Meussen: Sorry, on the other OpEx, you mean?

Speaker #6: Yeah. Operating costs.

Luuk van Beek: Yeah. Your operating costs.

Speaker #1: No, we just— that is under control, and we continue to do good cost control like we have done in the past, but also in H1 2026.

Bart Meussen: No, that is under control, and we continue to do good cost control like we have done in the past, but also in H1 2026. So no significant movements there.

Speaker #1: So no significant movements there.

Speaker #6: Thank you.

Luuk van Beek: Thank you.

Speaker #1: Thank you.

Michael Colijn: Thank you.

Bart Meussen: Thank you.

Speaker #3: Ladies and gentlemen, just as a reminder, if you wish to ask a question, please press the pound key followed by five on your telephone keypad. The following question comes from Ruben de Vos from Kepler Cheuvreux.

Operator: Ladies and gentlemen, just as a reminder, if you wish to ask a question, please press pound key 5 on your telephone keypad. The following question comes from Ruben Devos from Kepler Cheuvreux. Please go ahead.

Speaker #3: Please go ahead.

Speaker #5: Yes, yes. Good morning. My first question is to follow up on a prior question, I think regarding the personnel costs in the second half. So, it will step up, but then normalize in 2027.

Ruben Devos: Yes. Good morning. My first question is to follow up on a prior question. I think, regarding the personnel costs in the H2. So it will step up, but then normalize in 2027. I think around in 2024, when you had this restructuring or right-sizing exercise, it was said that you had around EUR 13 million of net savings with a payback under a year. I think now you sort of provisioned EUR 4.5 million of restructuring. My question is, what do you expect that to deliver in annual savings?

Speaker #5: I think around 2024, when you had this restructuring, or 'rightsizing' as it was called, you had around €13 million of net savings with a payback period of under a year.

Speaker #5: I think now you’ve sort of provisioned €4.5 million for restructuring. So my question is: What do you expect that to deliver in annual savings?

Speaker #1: Yeah. So, contrary maybe to the program you mentioned a few years ago, this has not been—and we have communicated that earlier.

Michael Colijn: Well, in comparing maybe to the program you mentioned a few years ago, this has not been, and we have communicated that earlier in our call, a program to reduce FTEs. This is really to reallocate FTEs and building up capabilities. In that sense, the business case is a quantitative one, you could say, and not a definition related to financial impacts.

Bart Meussen: Well, in comparing maybe to the program you mentioned a few years ago, this has not been, and we have communicated that earlier in our call, a program to reduce FTEs. This is really to reallocate FTEs and building up capabilities. In that sense, the business case is a quantitative one, you could say, and not a definition related to financial impacts.

Speaker #1: In our call, when we talk about programs to reduce FTEs, this is really about reallocating FTEs and building capabilities. And in that sense, the business case is a qualitative one.

Speaker #1: You could say, and not a petition related to financial impact.

Speaker #5: Okay. And regarding smart grids, Finland was about 500 of the 1,700 total—so quite a big contributor. Should we now think of Elkamo as a structural growth driver in its own right?

Ruben Devos: Okay. Regarding Smart Grid Solutions, Finland was about 500 of the 1,700 total, so quite a big contributor. Should we now think of Alfen Elkamo as a structural growth driver in its own right? In Finland, is it still largely concentrated with Fingrid, or is more of the volume coming from a broader range of operators? I guess, how sustainable is that trend you have seen in Finland moving into 2027?

Speaker #5: I mean, in Finland, is it still largely concentrated with Fingrid? Or is more of the volume coming from a broader range of operators? Yeah.

Speaker #5: And I guess, how sustainable is that trend you've seen in Finland moving into '27?

Speaker #2: Thanks, Ruben. I think the observation is correct that Elkamo did a significant chunk of the SGS business in the last half-year, and we're very pleased with that.

Michael Colijn: Thanks, Ruben. I think that the observation is correct that Alfen Elkamo did a significant chunk of the Smart Grid Solutions business in the last half year, and we are very pleased with that. I think we have taken some measures to make sure that we can maximize the benefits of the Alfen Elkamo business. What I can say here is that the business is delivering to a general market trend to a wide range of customers. What we believe we see is a general grid revamp across Europe with investment in expanding the grid, renewing old transformer substations, and making more available also for the addition of renewable energy into the grid. We are benefiting from that. Obviously, we have been extremely active to also reap as much of that as possible. Alfen Elkamo forms part of the Alfen business, and we will continue to drive it as we do our other Smart Grid Solutions business as well.

Speaker #2: I think we've taken some measures to make sure that we can maximize the benefits of the Elkamo business. What I can say here is that the business is delivering to a general market trend and to a wide range of customers.

Speaker #2: And what we believe we see is a general grid revamp across Europe, with investment in expanding the grid, renewing old transformer substations, and making more available also for the addition of renewable energy into the grid.

Michael Colijn: What we believe we see is a general grid revamp across Europe with investment in expanding the grid, renewing old transformer substations, and making more available also for the addition of renewable energy into the grid. We are benefiting from that. Obviously, we have been extremely active to also reap as much of that as possible. Alfen Elkamo forms part of the Alfen business, and we will continue to drive it as we do our other Smart Grid Solutions business as well.

Speaker #2: And we're benefiting from that. Obviously, we've been extremely active to also reap as much of that as possible. Elkamo forms part of the Alfen business.

Speaker #2: And we will continue to drive it as we do with our other SGS business as well.

Speaker #5: Okay. And then in the Netherlands, I think the investment plans seem to be stepping up quite strongly. You also are pointing to a fast-track regime.

Ruben Devos: Okay, in the Netherlands, I think, the investment plans, they seem to be stepping up quite strongly. You also are pointing to a fast track regime for larger projects as of October. You do not expect any volume impact this year yet, but of course, interested about how you see that regulatory change is translating into actual orders. Are you seeing any signs of, let's say, tender activity already or framework discussions for 2027?

Speaker #5: For larger projects, as of October, you don't expect any volume impact this year yet. But of course, I'm interested in how you see regulatory changes translating into actual orders.

Speaker #5: Are you seeing any signs of, let’s say, tender activity already, or framework discussions for ’27?

Speaker #2: So I think this is a good question. By nature, I'm an optimist, and I'm always pushing for faster. As mentioned before, we see the regulatory changes coming.

Michael Colijn: I think this is a good question. By nature, I am an optimist, and I am always pushing for faster. We have mentioned before that we see the regulatory changes coming, and we see laws in progress. But I have not seen anything concrete yet that immediately accelerates this market or spurs it on that you can have double-digit growth. What I do see is that the general trend and readiness for everyone in this market is increasing, and we are looking to be part of that, and we are ready to do that whenever it happens. But I think that there are two elements. The regulatory battle is being fought, and I think it will be solved. After that has been solved, immediately comes the question, do we have enough structural as an industry, not specifically Alfen, but also the grid companies, do we have enough structural capacity for executing on that growth?

Speaker #2: And we see laws in progress. But I haven't seen anything concrete yet that immediately accelerates this market or spurs it on, so that you can have double-digit growth.

Speaker #2: What I do see is that the general trend and readiness for everyone in this market is increasing, and we are looking to be part of that.

Michael Colijn: What I do see is that the general trend and readiness for everyone in this market is increasing, and we are looking to be part of that, and we are ready to do that whenever it happens. But I think that there are two elements. The regulatory battle is being fought, and I think it will be solved. After that has been solved, immediately comes the question, do we have enough structural as an industry, not specifically Alfen, but also the grid companies, do we have enough structural capacity for executing on that growth?

Speaker #2: And we're ready to do that whenever it happens. But I think that there are two elements. The regulatory battle is being fought.

Speaker #2: And I think it will be solved. After that has been solved, immediately comes the question: do we have enough structural capacity as an industry—not specifically Alfen, but also the grid companies—do we have enough structural capacity for executing on that growth?

Speaker #2: Because installers need training, we expect steady, predictable growth there, but not a big boom to come very quickly.

Michael Colijn: Because installers need training. So we expect a steady, predictable growth there, but not a big boom to come very quickly.

Speaker #5: All right, that's it for me. Thank you.

Ruben Devos: All right. That is it for me. Thank you.

Speaker #2: Thank you.

Michael Colijn: Thank you.

Speaker #3: It appears there are no more questions, so I will hand the word back over to Mr. Colijn for any closing remarks.

Operator: It appears there are no more questions, so I will hand the word back over to Mr. Colijn for any closing remarks.

Speaker #2: Thank you, Elva. Thank you all for your time. As a reminder, I want to point out that from next quarter onwards, we will publish our results on the morning of the earnings call instead of the evening before.

Michael Colijn: Thank you, Elba. Thank you all for your time. As a reminder, I want to point out that from next quarter onwards, we will publish our results on the morning of the earnings call instead of the evening on the day before, starting with our Q3 trading update on 4 November. Looking forward to speaking to you then.

Speaker #2: Starting with our Q3 trading update on the fourth of November. Looking forward to speaking to you then.

Operator: You may now disconnect.

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