Half Year 2026 Belysse Group NV Earnings Call
Speaker #1: Yep.
Speaker #2: Good morning, ladies and gentlemen. Welcome to the conference call of Belysse Group and V regarding the H1 2026 results. As a reminder, all participants will be in listen-only mode.
Operator: Good morning, ladies and gentlemen. Welcome to the conference call of Belysse Group NV regarding the H1 2026 results. As a reminder, all participants will be in listen-only mode. After the presentation, there will be a question and answer session for analysts covering the Belysse share. Today we have with us James Neuling, Chief Executive Officer, and François de Labarre, Chief Financial Officer. Gentlemen, the floor is yours.
Operator: Good morning, ladies and gentlemen. Welcome to the conference call of Belysse Group NV regarding the H1 2026 results. As a reminder, all participants will be in listen-only mode. After the presentation, there will be a question and answer session for analysts covering the Belysse share. Today we have with us James Neuling, Chief Executive Officer, and François de Labarre, Chief Financial Officer. Gentlemen, the floor is yours.
Speaker #2: After the presentation, there will be a question-and-answer session for analysts covering the Belysse share. Today we have with us James Nuling, Chief Executive Officer, and François de la Barre, Chief Financial Officer.
Speaker #2: Gentlemen, the floor is yours.
Speaker #1: Hi. Good morning, and thank you, Lynn. Welcome to our first half 2026 results call. If you have not already done so, you can download our press release and this presentation from the investor relations section on Belysse.com.
James Neuling: Hi, good morning, and thank you, Lynn. Welcome to our H1 2026 results call. If you have not already done so, you can download our press release and this presentation from the investor relations section on belysse.com. I need to start with bringing your attention to the disclaimer on slide 2. I will not read it out, but please do make sure you have read it. I will talk about the financial summary on the H1 of 2026. François de Labarre, our CFO, will take us through the financial review, and then I will give the conclusion. We will end this call, as Lynn has said, with a Q&A session with the analyst following our stock. If you can, then we have slide 4 on the screen there.
James Neuling: Hi, good morning, and thank you, Lynn. Welcome to our H1 2026 results call. If you have not already done so, you can download our press release and this presentation from the investor relations section on belysse.com. I need to start with bringing your attention to the disclaimer on slide two. I will not read it out, but please do make sure you have read it. I will talk about the financial summary on the H1 of 2026. François de Labarre, our CFO, will take us through the financial review, and then I will give the conclusion. We will end this call, as Lynn has said, with a Q&A session with the analyst following our stock. If you can, then we have slide four on the screen there.
Speaker #1: I need to start with bringing your attention to the disclaimer on slide 2. I will not read it out, but please do make sure you have read it.
Speaker #1: I will talk about the financial summary on the first half of 2026, then François de la Barre our CFO will take us through the financial review, and then I will give the conclusion.
Speaker #1: We will end this call, as Lynn has said, with a Q&A session with the analysts following our stock. So if you can, there we have slide 4 on the screen there.
Speaker #1: From a financial standpoint, we saw the first half 2026 consolidated revenue at a total of $123.3 million, which represents an 8.5% year-on-year decrease. Revenue of our U.S.
James Neuling: From a financial standpoint, we saw the H1 2026 consolidated revenue at a total of $123.3 million, which represents an 8.5% year-on-year decrease. Revenue of our US business increased by 0.9%, while our European business faced a decline of 20.5%. In terms of profitability, the H1 adjusted EBITDA was €16.8 million, which represents a decrease of 2.3% year-on-year. Our US business realized an EBITDA of $16.1 million, while the business in Europe realized €0.8 million EBITDA. The net debt at the end of the period was $147.6 million, which includes $22.0 million impact of IFRS 16 lease liabilities, which results in a leverage of 4.95. François, can I ask you to go more in depth into the financials? Thank you.
James Neuling: From a financial standpoint, we saw the H1 2026 consolidated revenue at a total of $123.3 million, which represents an 8.5% year-on-year decrease. Revenue of our US business increased by 0.9%, while our European business faced a decline of 20.5%. In terms of profitability, the H1 adjusted EBITDA was €16.8 million, which represents a decrease of 2.3% year-on-year. Our US business realized an EBITDA of $16.1 million, while the business in Europe realized €0.8 million EBITDA. The net debt at the end of the period was $147.6 million, which includes $22.0 million impact of IFRS 16 lease liabilities, which results in a leverage of 4.95. François, can I ask you to go more in depth into the financials? Thank you.
Speaker #1: business increased by 0.9%, while our European business faced a decline of 20.5%. In terms of profitability, the first half adjusted EBITDA was 16.8 million euro, which represents a decrease of 2.3% year-on-year.
Speaker #1: Our U.S. business realized an increase in realized an EBITDA of 16.1 million, while the business in Europe realized 0.8 million EBITDA. The net debt at the end of the period was $147.6 million, which includes 22.0 million impact of IFRS 16 lease liabilities which results in a leverage of 4.95.
Speaker #1: Françoise, can I ask you to go more in depth into the financials? Thank you.
Speaker #3: Thank you, James. I'm good day to you all. First, let's take a look let's take a closer look at our Q2 2026 financial performance.
François de Labarre: Thank you, James. Good day to you all. First, let's take a closer look at our Q2 2026 financial performance. Having a look at slide 3. Sorry. Having a look at the slide 6. You can see the bridge of the revenues between Q2 2025 and Q2 2026. This is aligned to what James said. An increase in US, a decrease in Europe. Next slide. Q2. In Q2 2026, we saw a consolidated revenue of €62 million. This represents a decrease of 8% year-on-year, of which -2% due to foreign exchanges. In US, revenue increased by +1%, 1.1%, sorry, driven by +4.4 organic and -3.3 FX impacts. In Europe, revenues decreased by 22%. Let's have a look at sorry, at slide 7. In H1 2026, we saw a consolidated group revenue of €123.3 million.
François de Labarre: Thank you, James. Good day to you all. First, let's take a closer look at our Q2 2026 financial performance. Having a look at slide three. Sorry. Having a look at the slide six. You can see the bridge of the revenues between Q2 2025 and Q2 2026. This is aligned to what James said. An increase in US, a decrease in Europe. Next slide. Q2. In Q2 2026, we saw a consolidated revenue of €62 million. This represents a decrease of 8% year-on-year, of which -2% due to foreign exchanges. In US, revenue increased by +1%, 1.1%, sorry, driven by +4.4 organic and -3.3 FX impacts. In Europe, revenues decreased by 22%. Let's have a look at sorry, at slide 7. In H1 2026, we saw a consolidated group revenue of €123.3 million.
Speaker #3: Having a look at slide sorry. Having a look at the slide 6, okay, you can see the bridge. But the revenues between Q2 2025 and Q2 2026.
Speaker #3: So this is aligned to what James said. So an increase in U.S., a decrease in Europe. Okay. Next slide. Q2. Okay. In Q2 2026, we saw a consolidated revenue of $62 million.
Speaker #3: This this represents a decrease of 8% year-on-year of which minus 2% due to foreign exchanges. In U.S., revenue increased by plus 1%, 1.1%, sorry, driven by a plus 4.4 organic and minus 3.3 FX impact.
Speaker #3: In Europe, revenues decreased by 22%. Let's have a look at sorry, at flat size 7. Okay. In H1 2026, we saw a consolidated group revenue of $123.3 million.
Speaker #3: It's a minus 8.5 year-on-year of which minus 4% due to exchange rates. In U.S., H1 volumes grew versus prior year driven by improved customer demand, particularly in the corporate education and government segments.
François de Labarre: It is a -8.5% year-on-year, of which -4% due to exchange rates. In US, H1 volumes grew versus prior year, driven by improved customer demand, particularly in the corporate education and government segments. The revenue in US dollar term was up by 7.8%. In Europe, H1 2026 volumes declined versus prior year due to continued market softness and ERP migration startup challenges. It resulted in temporary shipment delays and volume losses in the quarters and have since stabilized. Let us have a look at next slide. The group EBITDA. The group Adjusted EBITDA Bridge. Belysse Group consolidated EBITDA for the first half of 2026 was EUR 16.8 million. This represents an Adjusted EBITDA margin of 30.7% versus 12.8% last year, H1 2025. Adjusted EBITDA increased organically but was negatively impacted by the translation of Bentley reserves due to weakened US dollar.
François de Labarre: It is a -8.5% year-on-year, of which -4% due to exchange rates. In US, H1 volumes grew versus prior year, driven by improved customer demand, particularly in the corporate education and government segments. The revenue in US dollar term was up by 7.8%. In Europe, H1 2026 volumes declined versus prior year due to continued market softness and ERP migration startup challenges. It resulted in temporary shipment delays and volume losses in the quarters and have since stabilized. Let us have a look at next slide. The group EBITDA. The group Adjusted EBITDA Bridge. Belysse Group consolidated EBITDA for the first half of 2026 was EUR 16.8 million. This represents an Adjusted EBITDA margin of 30.7% versus 12.8% last year, H1 2025. Adjusted EBITDA increased organically but was negatively impacted by the translation of Bentley reserves due to weakened US dollar.
Speaker #3: The revenue in U.S. dollar terms was up by 7.8%. In Europe, H1 2026 volumes declined versus prior year due to continued market softness and ERP migration startup challenges.
Speaker #3: Its resulted in temper sorry, it resulted in temporary shipment delays and volume losses in the quarters and have since stabilized. Let's have a look at next slide.
Speaker #3: The group EBITDA the group adjusted EBITDA bridge Belysse group consolidated EBITDA for the first half of 2026 was 16.8 million euros. This represents an adjusted EBITDA margin of 30.7% versus 12.8% last year, H1 2025.
Speaker #3: Adjusted EBITDA increased organically but was negatively impacted by the translation of Ben Clement reserves due to the recon U.S. dollar. Adjusted EBITDA margin improved versus prior year driven by growth and margin expansion expansion in the U.S.
Speaker #3: market, supported by group-wide cost management and specific price increase in reaction to ongoing cost inflation due to the conflict in the Middle East. Our U.S.
François de Labarre: Adjusted EBITDA margin improved versus prior year, driven by growth and margin expansion in the US market, supported by groupwide cost management and specific price increase in reaction to ongoing cost inflation due to the conflict in the Middle East. Our US business Adjusted EBITDA improved by 10.6% in US dollar terms. The weakening US dollar had a negative impact of -7% on reported revenue and EBITDA in Euro terms. Europe adjusted EBITDA and adjusted EBITDA margin declined versus prior year due to the lower volumes despite improved unitary margin. Let us have a look at slide 9 about cash flow. We ended the first half year of 2026 with a cash balance of EUR 22 million compared to a cash balance of 34.5 at the end of 2025.
François de Labarre: Adjusted EBITDA margin improved versus prior year, driven by growth and margin expansion in the US market, supported by groupwide cost management and specific price increase in reaction to ongoing cost inflation due to the conflict in the Middle East. Our US business Adjusted EBITDA improved by 10.6% in US dollar terms. The weakening US dollar had a negative impact of -7% on reported revenue and EBITDA in Euro terms. Europe adjusted EBITDA and adjusted EBITDA margin declined versus prior year due to the lower volumes despite improved unitary margin. Let us have a look at slide nine about cash flow. We ended the first half year of 2026 with a cash balance of EUR 22 million compared to a cash balance of 34.5 at the end of 2025.
Speaker #3: business adjusted EBITDA improved by 10.6% in in U.S. dollar terms. The weakening U.S. dollar had a negative impact of minus 7% on reported revenue and EBITDA in euro terms.
Speaker #3: Europe adjusted EBITDA and adjusted EBITDA margin declined versus prior year due to the lower volumes despite improved unitary margin. Let's have a look at the slide 9 about cash flow.
Speaker #3: We handed we ended, sorry, the first half year 2026 with a cash balance of $22 million. Compared to a cash balance of $34.5 at the end of 2025.
Speaker #3: The adjusted EBITDA of 16.8 million euro was partly offset by an increase of 8.8% increase in the trade working capital and an 2.1 increase in other working capital.
François de Labarre: The adjusted EBITDA of EUR 16.8 million was partly offset by an 8.8% increase in the trade working capital, and a 2.1% increase in other working capital. During H1 2026, EUR 2 million of net income tax was paid alongside EUR 4 million in CapEx, EUR 10 million in debt repayments and interest payment, and 0.6 foreign exchange gain on cash and cash equivalents. For your information, the European business went live on a major upgrade of its ERP during H1 2026. Quick look at the leverage chart. Net debt at the end of the period was EUR 147.6 million, including EUR 20 million related to IFRS 16 lease liabilities. Net leverage was 4.95 at the end of 2026. Total available liquidity, including headroom under the revolving credit facility amounted to EUR 37.7 million at the end of H1 2026. Now, I will hand over the floor back to James for the conclusion.
François de Labarre: The adjusted EBITDA of EUR 16.8 million was partly offset by an 8.8% increase in the trade working capital, and a 2.1% increase in other working capital. During H1 2026, EUR 2 million of net income tax was paid alongside EUR 4 million in CapEx, EUR 10 million in debt repayments and interest payment, and 0.6 foreign exchange gain on cash and cash equivalents. For your information, the European business went live on a major upgrade of its ERP during H1 2026. Quick look at the leverage chart. Net debt at the end of the period was EUR 147.6 million, including EUR 20 million related to IFRS 16 lease liabilities. Net leverage was 4.95 at the end of 2026. Total available liquidity, including headroom under the revolving credit facility amounted to EUR 37.7 million at the end of H1 2026.
Speaker #3: During H1 2026, 2 million of net income tax was paid, alongside 4 million in capex. 10 million in debt repayments and interest payments, and a 0.6 million foreign ex sorry, 0.6 foreign exchange gain on cash and cash equivalent.
Speaker #3: For your information, the the European business went live on a major upgrade of its ARP during H1 2026. Quick look at the leverage chart.
Speaker #3: Net debt at the end of the period was $147.6 million. Including $20 million $20 million euros related to IFRS lease liabilities. Net leverage was 495 at the end of 2026.
Speaker #3: Total available liquidity including headroom under the revolving credit facility amounted to 30.37.7 million, sorry, at the end of H1 2026. No I will I will hand over the floor back to James for the conclusion.
Speaker #1: Okay. So looking in conclusion, our first half 2026 consolidated revenue was $123.3 million and adjusted EBITDA of 16.8, resulting in an adjusted EBITDA margin of 13.7%.
François de Labarre: Now, I will hand over the floor back to James for the conclusion.
James Neuling: Okay. Looking at conclusion, our first half 2026 consolidated revenue was $123.3 million and adjusted EBITDA of 16.8, resulting in an adjusted EBITDA margin of 13.7%. In the US, the first half adjusted EBITDA improved by 10.6% in US dollar terms. The weakening USD had a negative effect, 7%, on the reported revenue and EBITDA in euro terms. In Europe, the reported adjusted EBITDA and adjustment EBITDA margin declined versus prior year due to the lower volumes despite the improved unitary margins. Leverage is at 4.95 at the end of the first half, and total available liquidity, which includes headroom under the RCF, was EUR 37.7 million at the end of the first half. I would like to thank the team who continue to work hard on commercial excellence, efficiency, and costs while we are waiting for the markets to recover.
James Neuling: Okay. Looking at conclusion, our first half 2026 consolidated revenue was $123.3 million and adjusted EBITDA of 16.8, resulting in an adjusted EBITDA margin of 13.7%. In the US, the first half adjusted EBITDA improved by 10.6% in US dollar terms. The weakening USD had a negative effect, 7%, on the reported revenue and EBITDA in euro terms. In Europe, the reported adjusted EBITDA and adjustment EBITDA margin declined versus prior year due to the lower volumes despite the improved unitary margins. Leverage is at 4.95 at the end of the first half, and total available liquidity, which includes headroom under the RCF, was EUR 37.7 million at the end of the first half. I would like to thank the team who continue to work hard on commercial excellence, efficiency, and costs while we are waiting for the markets to recover.
Speaker #1: In the U.S., the first half adjusted EBITDA improved by 10.6% in U.S. dollar terms. The weakening USD had a negative effect, 7%, on on the reported revenue and EBITDA in euro terms.
Speaker #1: In Europe, the reported adjusted EBITDA and adjusted EBITDA margin declined versus prior year due to the lower volumes despite improved unitary margins. Leverage is at 4.95 at the end of the first half and total available liquidity which includes headroom under the RCF was 37.7 million at the end of the first half.
Speaker #1: I would like to thank the team who continue to work hard on commercial excellence, efficiency, and costs while we are waiting for the markets to recover.
Speaker #1: I will now go back to Lynn who will coordinate for the Q&A.
Speaker #2: Thank you. We will now begin our question and answer session for analysts covering the Belysse share. If you have a question, please raise your hand by pushing the button on your screen.
James Neuling: I will now go back to Lynn, who will coordinate for the Q&A.
James Neuling: I will now go back to Lynn, who will coordinate for the Q&A.
Operator: Thank you. We will now begin our question and answer session for analysts covering the Belysse share. If you have a question, please raise your hand by pushing the button on your screen. If you are dialing in via your phone, please press star nine to raise your hand. Once your name has been announced, you can ask your question. Yes. We have a question from Michiel Declercq. Yes, you can now ask your question.
Operator: Thank you. We will now begin our question and answer session for analysts covering the Belysse share. If you have a question, please raise your hand by pushing the button on your screen. If you are dialing in via your phone, please press star nine to raise your hand. Once your name has been announced, you can ask your question. Yes. We have a question from Michiel Declercq. Yes, you can now ask your question.
Speaker #2: If you are dialing in via your phone, please press star 9 to raise your hand. Once your name has been announced, you can ask your question.
Speaker #2: Yes. We have a question from Michiel de Klerk. I will now Yes, you can now ask your question.
Speaker #1: We don't hear you.
Speaker #2: Hello?
Speaker #4: Hello?
Speaker #2: Yes. Now we can hear you. Yes.
James Neuling: We don't hear him.
James Neuling: We don't hear him.
Speaker #4: Okay. Great. Sorry. Thank you, Michiel de Klerk from KBC Securities. Thanks for the presentation. I had a couple of questions. The first one, you mentioned there were some price increases because costs were going up.
Operator: Hello?
Operator: Hello?
Michiel Declercq: Hello?
Michiel Declercq: Hello?
Operator: Yes. Now we can hear you. Yes.
Operator: Yes. Now we can hear you. Yes.
Michiel Declercq: Great. Sorry. Thank you. Michiel Declercq from KBC Securities. Thanks for the presentation. I had a couple of questions. The first one, you mentioned there were some price increases because costs were going up. Can you give a bit more color on what you expect for the H2 in terms of the phasing? Is there still some more raw material inflation to come? How do you expect to pass this on in terms of the pricing? Secondly, a bit on the European business, minus 20%. Can you give a bit more color on the end markets, residential versus commercial? Also maybe looking a bit at the summer month, of course quite some hot weather in Europe. Can you tell maybe a bit on the footfall that you are seeing and if this would have potentially any impact in the H2 of the year?
Michiel Declercq: Great. Sorry. Thank you. Michiel Declercq from KBC Securities. Thanks for the presentation. I had a couple of questions. The first one, you mentioned there were some price increases because costs were going up. Can you give a bit more color on what you expect for the H2 in terms of the phasing? Is there still some more raw material inflation to come? How do you expect to pass this on in terms of the pricing? Secondly, a bit on the European business, minus 20%. Can you give a bit more color on the end markets, residential versus commercial? Also maybe looking a bit at the summer month, of course quite some hot weather in Europe. Can you tell maybe a bit on the footfall that you are seeing and if this would have potentially any impact in the H2 of the year?
Speaker #4: Can you give a bit more color on what you expect for the the second half in terms of the phasing? Is there still some more raw material inflation to come and and how do you expect to to pass this on in terms of the pricing?
Speaker #4: Then secondly, a bit on the on the European business. Minus 20. Can you give a bit more color on the end markets residential versus commercial?
Speaker #4: And also maybe looking a bit at the the summer month, of course, quite some hot weather in Europe. Can you tell maybe a bit on the footfall that you're seeing and if this would have potentially any impact in the second half of the year?
Speaker #4: Those would be my questions.
Speaker #1: Thank you, Michiel. Quite a quite a few points you touched there. The price increases, I think you saw a lot of companies in in the building sector and and manufacturing companies face quite some inflationary pressure following the Iran situation.
Michiel Declercq: Those would be my questions.
Michiel Declercq: Those would be my questions.
James Neuling: Thank you, Michiel. Quite a few points you touched there. The price increases, I think you saw a lot of companies in the building sector and manufacturing companies face quite some inflationary pressure following the Iran situation. It seems like a lot of companies, we have seen raw material inflation and there are two aspects. Well, there are always multiple aspects to these things so we have seen raw material costs go up and it has been, I think, challenging for many manufacturing companies as that situation has gone through. We have all observed the increase in oil prices, for example. We reacted fairly early on. You will remember at our previous call that we had, we talked about that we had done an early reaction because of the price increases. Because of that, the price increases and raw material increases always do not appear day one, they phase through.
James Neuling: Thank you, Michiel. Quite a few points you touched there. The price increases, I think you saw a lot of companies in the building sector and manufacturing companies face quite some inflationary pressure following the Iran situation. It seems like a lot of companies, we have seen raw material inflation and there are two aspects. Well, there are always multiple aspects to these things so we have seen raw material costs go up and it has been, I think, challenging for many manufacturing companies as that situation has gone through. We have all observed the increase in oil prices, for example. We reacted fairly early on. You will remember at our previous call that we had, we talked about that we had done an early reaction because of the price increases. Because of that, the price increases and raw material increases always do not appear day one, they phase through.
Speaker #1: So I think like a lot of companies we we've seen raw material inflation and there's two aspects. Well, there are always multiple aspects to these things.
Speaker #1: So we've seen raw material costs go up and it's been I think challenging for many manufacturing companies as as that situation has gone through and we've all observed the the increase in oil prices, for example.
Speaker #1: The we we reacted fairly early on. You will remember at our previous release back in our previous call that we had, we we talked about that we we had done an early reaction because of the price increases because of that.
Speaker #1: The price increases in raw material increases always don't appear day one. They phase through. So we've done let's say appropriate measures to address the price increases and we believe that we have done enough for the moment to address the concerns of the inflationary pressures that we see.
James Neuling: We have done, let us say, appropriate measures to address the price increases, and we believe that we have done enough for the moment to address the concerns of the inflationary pressures that we see. Like anybody, I cannot know what the future will hold. This Iran situation when it started, at our previous call, we talked about that. We said if the war, and this is my comment back some months ago. I said, "If the war were to stop after only one or two weeks, the impact of it, the inflationary pressures would last longer." Some supply chain disruptions. For example, the natural gas disruption that we saw in Qatar will have a lasting impact because it just takes time to get capacity back on stream.
James Neuling: We have done, let us say, appropriate measures to address the price increases, and we believe that we have done enough for the moment to address the concerns of the inflationary pressures that we see. Like anybody, I cannot know what the future will hold. This Iran situation when it started, at our previous call, we talked about that. We said if the war, and this is my comment back some months ago. I said, "If the war were to stop after only one or two weeks, the impact of it, the inflationary pressures would last longer." Some supply chain disruptions. For example, the natural gas disruption that we saw in Qatar will have a lasting impact because it just takes time to get capacity back on stream.
Speaker #1: I don't know. I cannot like anybody, I cannot know what the future will hold. This Iran situation, when it started, at our previous call, we we talked about that, that we said if the war and this is my comment back some months ago, I said if the war were to stop after only one or two weeks, the the impact of it, the inflationary pressures would last longer.
Speaker #1: Some supply chain disruptions, for example, the natural gas disruption that we saw in Qatar, will have a lasting impact because it just takes time to get capacity back on stream.
Speaker #1: And and a similar comment is if if this war were to stop today, so am I echo my comment of some months ago, if the war were to stop today, those inflationary pressures would not disappear tomorrow.
James Neuling: And a similar comment is, if this war were to stop today, so I echo my comment of some months ago, if the war were to stop today, those inflationary pressures would not disappear tomorrow. So we have a blend out there of price increases and surcharges, and we will position those as and when the situation changes. If the situation escalates, we will be forced to respond accordingly. But I think that is kind of normal for what we see in the sector. Does that address your question?
James Neuling: And a similar comment is, if this war were to stop today, so I echo my comment of some months ago, if the war were to stop today, those inflationary pressures would not disappear tomorrow. We have a blend out there of price increases and surcharges, and we will position those as and when the situation changes. If the situation escalates, we will be forced to respond accordingly. But I think that is kind of normal for what we see in the sector. Does that address your question?
Speaker #1: So we we have a a blend out there of price increases and surcharges. And we will position those as and when situation changes. If the situation escalates, we will be forced to respond accordingly.
Speaker #1: But I I think that's kind of normal for what we see in the sector. Does that address your question?
Speaker #4: Yes, it does. Thank you.
Speaker #1: Okay. Thank you. For Europe, we we obviously the the revenue decline in Europe is you know, minus 20 percent or thereabouts. We we don't release a split between residential and commercial, but there there are two factors at play.
Michiel Declercq: Yes, it does. Thank you.
Michiel Declercq: Yes, it does. Thank you.
James Neuling: Okay. Thank you. Obviously, the revenue decline in Europe is -20% or thereabouts. We do not release a split between residential and commercial, but there are two factors at play. We have seen market softness, that is for sure, and we saw that coming into this year, and we saw that in our previous earnings release. There has been a certain degree of market softness that continued. Then we went live. We upgraded our ERP system, and we did that at the end of April. I think like any company going through an ERP transition, we had some operational difficulties for a while. I would say we are through the worst of that. So, the revenue impact is a mixture of market softness and the ERP impact. The summer footfall is very hard for me to comment on that. We remain engaged, of course, with major customers.
James Neuling: Okay. Thank you. Obviously, the revenue decline in Europe is -20% or thereabouts. We do not release a split between residential and commercial, but there are two factors at play. We have seen market softness, that is for sure, and we saw that coming into this year, and we saw that in our previous earnings release. There has been a certain degree of market softness that continued. Then we went live. We upgraded our ERP system, and we did that at the end of April. I think like any company going through an ERP transition, we had some operational difficulties for a while. I would say we are through the worst of that. So, the revenue impact is a mixture of market softness and the ERP impact. The summer footfall is very hard for me to comment on that. We remain engaged, of course, with major customers.
Speaker #1: We we have seen market softness. That's for sure. And we we saw that coming into this year and you saw that in our previous earnings release that there's been a certain degree of market softness that continued.
Speaker #1: And then we we went live we we upgraded our ERP system and we did that at the end of April. And I think like any company going through an ERP transition, we had some operational difficulties for a while.
Speaker #1: We'd say we're we're through the worst of that. So the revenue impact is is a mixture of market softness and and and the ERP impact.
Speaker #1: The summer footfall is very hard for me to comment on that. We we remain engaged, of course, with major customers. And as you know, in Europe, we have broadly speaking, half the business is residential related and half the business is commercial.
Speaker #1: Whereas what we see with Bentley Mills, it was 100 percent commercial. And you know, I would add on there, of course, extremely pleased to see the USD increase at the Bentley Mills business.
James Neuling: As you know, in Europe, broadly speaking, half the business is residential related and half the business is commercial. Whereas what we see with Bentley Mills was 100% commercial. I would add on there, we are of course extremely pleased to see the USD increase with the Bentley Mills business. Customers, something we regularly talk about our customers, they do not disclose to us their footfall figures. We would love that they would, and we ask them repeatedly for. We have these almost frustrating conversations with our customers who say footfall is low. We ask, "Well, how low? Can you give us a comparator with last year? Is it -3%? Is it +2%?" Because most of these big retailers have some sort of counting system of who goes in and out, but they just keep reporting to us low and not giving us precise figures.
James Neuling: As you know, in Europe, broadly speaking, half the business is residential related and half the business is commercial. Whereas what we see with Bentley Mills was 100% commercial. I would add on there, we are of course extremely pleased to see the USD increase with the Bentley Mills business. Customers, something we regularly talk about our customers, they do not disclose to us their footfall figures. We would love that they would, and we ask them repeatedly for. We have these almost frustrating conversations with our customers who say footfall is low. We ask, "Well, how low? Can you give us a comparator with last year? Is it -3%? Is it +2%?" Because most of these big retailers have some sort of counting system of who goes in and out, but they just keep reporting to us low and not giving us precise figures.
Speaker #1: Customers, it's something we regularly talked about. Our customers, they don't disclose to us their footfall figures. And and we would love that they would.
Speaker #1: And we ask them repeatedly for you know, we we have these it's almost frustrating conversations with our customers. Their footfall is low. And we ask, well, how low?
Speaker #1: Can you give us a comparator with last year? Is it minus 3 percent? Is it plus 2 percent? Because most of these big retailers have some sort of counting system of who goes in and out.
Speaker #1: But they just keep reporting to us low and not giving us precise figures. But we we remain we remain watching it. We remain in touch with important customers.
Speaker #1: And you know, certainly we would like, like any company in the building sector, we would, you know, realize like we've said over the last couple of years that this is going to be a there's no quick recovery coming.
James Neuling: But we remain watching it. We remain in touch with important customers. Certainly we would like any company in the building sector realize, like we've said over the last couple of years, that there's no quick recovery coming. It's going to continue for awhile. I don't want to put any timeline on that. It's not possible. But we should be realistic and just say, look, we realize that the market remains tough. And what you've seen over the years is we've right-sized our European business to that, and we've taken cost out of the organization to adjust the organization to the realities of what the market is.
James Neuling: But we remain watching it. We remain in touch with important customers. Certainly we would like any company in the building sector realize, like we've said over the last couple of years, that there's no quick recovery coming. It's going to continue for awhile. I don't want to put any timeline on that. It's not possible. But we should be realistic and just say, look, we realize that the market remains tough. And what you've seen over the years is we've right-sized our European business to that, and we've taken cost out of the organization to adjust the organization to the realities of what the market is.
Speaker #1: It's it's going to continue for a while. I I don't want to put any timeline on that. It's not possible. But we we should be realistic and and just say, look, we we realize that the market remains tough.
Speaker #1: And what you've seen over the years is we've right sized our our European business to that. And we've taken cost out of the organization to adjust the organization to the realities of what the market is.
Speaker #4: Okay. That's very clear. Thank you very much for answering my questions.
Speaker #1: Thank you.
Michiel Declercq: Okay. That's very clear. Thank you very much for answering my questions.
Michiel Declercq: Okay. That's very clear. Thank you very much for answering my questions.
Speaker #2: I think we have no further questions.
James Neuling: Thank you.
James Neuling: Thank you.
Speaker #1: Okay. Look, thank you, everyone, very much. As a reminder, we we will publish a trading update concerning our Q3 results in October 2026. I thank all of you for your attendance and wish you all a good day.
Operator: I think we have no further questions.
Operator: I think we have no further questions.
James Neuling: Okay. Look, thank you everyone very much. As a reminder, we will publish a trading update concerning our Q3 results in October 2026. I thank all of you for your attendance and wish you all a good day. Bye.
James Neuling: Okay. Look, thank you everyone very much. As a reminder, we will publish a trading update concerning our Q3 results in October 2026. I thank all of you for your attendance and wish you all a good day. Bye.
