Massimo Battaini: This is again our best quarter yet. We had a great quarter in Q2 2026, but we have beaten that record with EUR 120 million EBITDA additional in Q3 2026. EUR 851 million marks a new level of profit for this company. It is well ahead of the Q3 last year, 2025, with EUR 200 million additional. You see the numbers are very good from every angle. You see the EBITDA sequentially over last year, EBITDA margin close to 17%, so 2 percentage points higher than what it was 1 year ago. What is particularly interesting, and it is not yet visible in the number, but it will be visible through the rest of the presentation, is the outstanding unique performance of I&C United States, where we beat all expectations in terms of absolute EBITDA and in terms of EBITDA margin, well above 24% and 25% in that quarter.
Massimo Battaini: I would like to move to the second page, where you see the trajectory of what we have done the last 3 years. EUR 1.6 billion was the starting point at our Capital Markets Day 2023. EUR 3.1 billion is a milestone. It is not the end of the journey. The end of the journey is much better in 3, 4 years, according to what we will be disclosing at the Capital Markets Day 2027. You see the acceleration of the company from an 8% CAGR over 2022, 2023 to a 3 times higher CAGR over this period of 2024, 2026. I know you can sum up the numbers of the EBITDA coming from the 5 acquisitions, or let us say the 4 that are at least impacting the 2026. You find EUR 1.5 billion incremental EBITDA from 2023, 2026.
Massimo Battaini: The great news for us, and also for you, I hope, is that half of the number came from inorganic moves, acquisitions. Half of it came from organic decisions. Obviously, we made the right choices on both fronts for M&As and for CapEx and for the deployment of capacity increase to support the growth of the market, to support our customers, and capture as many opportunities as possible to make this growth sustainable in the long run. Lastly, you see we have beaten already, as usual, we should say, after a few years, the target of 2028, Capital Markets Day target, we have beaten it in 2026. Atkore and Xtera are the 2 last relevant acquisitions. Relevant because they are all playing an important role in driving the growth of Prysmian towards this solution provider objectives.
Massimo Battaini: We sit now on a 45%, 48% revenues of the company that we can consider solutions, so not just pure cables. This is relevant because the more you shift to solution, the higher your EBITDA margin becomes. This was pretty well visible in the trajectory of the EBITDA margin that you see in the prior page. Prior and prior page. Atkore gives us additional components to make the installation of cable possible. Xtera gives us the repeaters that, combined with cables, make us real players in the submarine telecom data business, which is growing fast, which is a space that we would like to own some important share of. The investment in Xtera and the organic capacity increase in cables and the organic capacity increase in installation vessels will open us to an important role in this space. Transmission continue with a strong growth, which has naturally accelerated.
Massimo Battaini: 22% is the growth year over year. EUR 60 million is additional EBITDA in this quarter versus last year, Q3. EBITDA margin is extremely solid, 20%. We will have a further enhancement of the margin in Q4, and the organic growth of the full year will be in the high teens level for the full year. EUR 213 million is the highest ever EBITDA delivered by this business in a quarter. The remarkable number would be the full year result 2026, which sets another important sizable improvement over or above the already outstanding EUR 580 million that we delivered full year last year. Power Grid, middle single digit, high single digit growth.
Massimo Battaini: We are a little bit constrained by our decision to reallocate some of the medium voltage capacity that we have in Power Grid to I&C, because the demand of the segment is so overwhelming that we did not want to miss that opportunity. The organic growth is limited by this. EBITDA margin continue this trend, this journey to catch up with the original 14.5%, 15%. As soon as the inflation will stop growing so fast, this formula will recognize the full price impact of the cost, so that we will be able to restore the 14.5%, 15% EBITDA margin in Power Grid business. Demand is strong across the segment, across all geographies. You will see this in the coming quarters. This is the star of the quarter. You see EUR 304 million, EUR 100 million higher than last year. 17.6% EBITDA margin for the I&C business is totally unprecedented.
Massimo Battaini: Even more unprecedented is that inside this EUR 104 million, there is a legacy Prysmian plus Encore business US, which outperformed all the historical numbers of this business, with a 27% EBITDA margin in Q3. The organic growth at the group level marks a 14% increase, but North America grew 24% in this quarter, year over year. Behind the growth you see in the prior page, there are choices, decisions we made in the past years. Of course, Encore Wire is the most evident reason for making Prysmian a leader in the space. Last year, we invested in capacity in metal clad cables, so special cable for data center. We invested in medium voltage capacity, and this capacity will come online in Q1, Q2, Q3.
Massimo Battaini: For the next eight quarters, we will be one additional line per quarter coming online to serve data center electrification and passive power grid. It is also the result of the choices we made in the past to vertically integrate Encore with rod capacity and compounding capacity. Never has the rod capacity in-house been so critical to the expansion, to the growth. The market in US is super tight. Copper rod is charged, imported from outside, is charged with a tariff of 50%, making the rod coming from importers not accessible to local players. Market is tight. Having a rod capacity in-house is essential. Adding a second rod, this is the decision we made last night at the board, is crucial to avoid to constrain the growth of the business because we lack raw material.
Massimo Battaini: The rod in-house will allow the chance to buy more cathode to serve this rod equipment and buy more waste that is available in US to make this rod cheaper and also friendly from an environmental point of view. The medium voltage capacity I mentioned, a line is coming. There is a new investment in metal clad, so specific cables to serve data center, that is going to become live towards the end of 2027. Advanced investment approved again last night by the board. We are deploying more or less EUR 700 million, over EUR 700 million of capacity increase, vertical integration, medium voltage, and specific cable for data center, because the demand is overwhelming and because Encore, McKinney, and Prysmian US is best suited than anybody else to serve large projects with our scale and our best service.
Massimo Battaini: This is what data center want: scale, volume, and lead time as short as possible. We act, and we outperform everybody else with regards to these two KPIs. Super critical. Specialties, here we enjoy stability, per se. It is moderate organic growth, EUR 60, EUR 70 million EBITDA per quarter. Decent profitability. The market is not growing fast in this segment, but part of this product will be redirected to data center. I expect to see some additional better growth in the coming quarters, thanks to this combined opportunity of expanding our portfolio inside data center, also with special cables. Digital Solutions also outstanding in terms of performance. We had this 19.6% EBITDA margin last year, which was the result of the first quarters coming from after the acquisition of Channell. Before then, the EBITDA margin has been hovering around 12%, 13%, 14% maximum.
Massimo Battaini: We are now twice as much than that, 25%. Our journey will bring the 25% to 28%, 29%, 30% probably. Of course, we need more volume, which is what we will unlock with the new capacity in US and the South US, and thanks to the agreement that we signed. That number is written in stone. We will have 28% to 30% EBITDA margin, thanks to the backlog of revenues in our hand. Outstanding performance also in terms of innovation and sustainability. You see all the KPIs. Recycled content is not just a matter of green product.
Massimo Battaini: It is also a matter of making us able to deliver more volume to the market, thanks to the ability to recycle waste in a situation where the market is tight, especially in US, but in general across all geographies, due to this geopolitical situation when it comes to aluminum and copper. We have signed an important agreement with Amazon to provide them with green cables, low carbon aluminum. Hollow Core Fiber has almost finished the industrialization phase. We have some volume, produced some volume ready for sales. We will start selling this product to the market as early as January next year. A long-term agreement with our copper supplier, Speak for itself, to provide solidity to our supply chain in this constrained world in terms of geopolitical tensions. Let me defer now to Francesco for more financial insights and the figures law, working capital trends.
Pier Francesco Facchini: Thank you, Massimo, and good morning to everybody. A quick wrap-up of the profit and loss. Organic growth has been very strong in Q3, +13%, a very sharp acceleration from H1, mainly across Transmission, I&C North America, as Massimo said, and definitely Digital Solutions. Best quarter yet in adjusted EBITDA. You see on the right part of the slide, EUR 851 million, growing more than EUR 200 million from last year, and an outstanding margin, very close to 17% for the quarter at standard metal. You see that the progression is quite spectacular, I would say, in Transmission. You see the progression over the quarters in Electrification, driven by I&C, specifically North America, and also in Digital Solutions. Going to the bottom line, same message, I would say. The group net profit is very close to EUR 1 billion. It is outstandingly in line with last year.
Pier Francesco Facchini: If you think that last year, nine months 2025, was impacted by more than EUR 350 million gain on the disposal of our YOFC stake. So despite this huge positive impact last year, we are in line with that. This will translate into an estimate of earnings per share for the full year, which will be, my estimate, around EUR 4.6 per share, which is very similarly to the EBITDA, in line with our 2028 targets two years earlier, two years in advance. So very similar trajectory.
Massimo Battaini: I think we are setting target too easy for the future. Probably I should set the next Capital Markets Day.
Pier Francesco Facchini: Could be. Let me move quickly to the free cash flow. Over EUR 1.4 billion free cash flow in the last 12 months, boosted obviously by the inflow of the Molex down payment for approximately EUR 550 million or euro equivalent. Of course, boosted by the very strong Q3 in terms of cash from operations driven by EBITDA, but also impacted by sharply rising metal prices, which kind of reached the peak in terms of impact in Q3 compared to the prior year. Let me hand over to Massimo for the guidance.
Massimo Battaini: Simple and easy numbers here. EUR 3.1 billion is the midpoint of the new EBITDA. You see on the right side of the bridge, that is explaining that this number does not come from Atkore. It comes from Atkore for a minor parcel, namely EUR 50 million. The rest of the EUR 250 million uplift is business performance, is business growth, and you see it in Digital Solutions, in Transmission, and in I&C. Free cash flow enhanced from EUR 1.7 billion to EUR 1.8 billion is EUR 100 million out of EUR 250 million additional EBITDA. You have to know that apart from the metal cost that has impacted adversely our net working capital, we are investing more. We are investing more because we see a huge spectrum of opportunities in front of us in US, but also in other regions.
Massimo Battaini: Those investments will help us pave the way for a solid and robust growth in the next 3, 4 years, which, again, I repeat, we will disclose you more about it in Q2, I think, 2027, at the next Capital Markets Day. To conclude, solid growth achieved in Q3, but high-quality growth. It did not come from one-off, it did not come from something that is what we focus on, is something that is paying off for the investment, for the relationship with customers, for the M&A that we have done in the last 3 years. So well return of what we have done so far. Atkore will help us additionally strengthen US position. Xtera gives us the opportunity to expand our submarine telecom business that for us has been negligible for years.
Massimo Battaini: Beating the 2028 target, the Capital Markets Day target, 2 years ahead of schedule is a big reward for the work done by the company in the last 3 years. Thank you. Now we will hand over to you for your Q&A.
Operator: Thank you. To ask a question now, please press star, 1, and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star, 1, and 1 again. Once again, that is star, 1, and 1 for questions. A moment for first question. We will now take our first question from the line of Daniela Costa of Goldman Sachs. Please ask your question, Daniela. Your line is open.
Daniela Costa: Hi. Good morning, everyone. Thank you so much. I have three questions. I will ask them one at a time. First, just digging into the Transmission backlog, which went down slightly sequentially. Just wondering, as you look at the coming next 12 months, do you see that going back up? How does it look basically in terms of contracts for 2027, I guess, especially on the face of the recent regulatory shift in Germany from underground towards overground? How do you see the progression?
Massimo Battaini: Hey, Daniela. Yeah, correct. Backlog went a little bit softer this quarter due to the lack of order intake. The market is not as strong as we anticipated, as shown in the first nine months. There had been one important driver of reduction in order intakes. There are some delays in technical delays, nothing to do with business performance. Delays in some projects coming from Italian TSO. We expect those projects not to be awarded this year. They will probably be awarded in Q1 next year. That is why there is, if you read the order intake of the market in 2026, you will find this slightly down on the expected EUR 10 million, EUR 12 million level. There will be the catch-up next year as due to the phasing of the specific order.
Massimo Battaini: Do not forget that our EUR 16.5 million is still a bit higher than what we like to have, given the fact that in some instances, due to the saturation of the current asset and the additional asset that comes online in the next 12 months, we can still not participate to some of the bids. So EUR 14 million backlog is the healthy level. Now we are building a new backlog inside this EUR 16.5 million. Now the backlog coming from submarine business with Xtera. We won a EUR 200 million project to connect New Jersey to the UK, even before we signed the closing with Xtera. We are going to build on these capabilities, adding cable capacity and vessels to become a real player in the space that is growing fast.
Daniela Costa: Thank you. That was actually going to be my third question, so I will let them have the second.
Massimo Battaini: Thank you. Two in one.
Daniela Costa: When you see submarine telecom, is there a scope to do more inorganic activity there to get bigger? Is this mainly an organic journey? How large can this be for the group in a couple of years' time, or what is your desired position there?
Massimo Battaini: Yeah. Until now, this business has been a EUR 50, EUR 60 million revenue business. We are planning to grow it to EUR 200, EUR 250 million thanks to the Xtera acquisition and the organic expansion. Inorganically, yes, is an option, but you know there are three large players in the space, and we are working, and we will see. It is not simple because the three large players are pretty large, and also they enjoy the moment. Market is booming on the back of data center expansion, the oceanic interconnection needed to connect the European data center to US data center. Organically, we will achieve a very good level, and if we were able to do something else, we will see in the coming months.
Daniela Costa: Got it. Thank you. Then a final one is just in the new capacity additions that you have in medium voltage. Can you talk a little bit about sort of the, what is the kind of uncertainty on the payback on those investments? Do you have all those lines already, some business committed for it? For how long? What is the visibility? I guess, what is the risks to margin of opening new capacity? I imagine you are not running at 100% from day one, so does that delay a bit when the margins can get above 15%?
Massimo Battaini: Yeah.
Daniela Costa: Thank you.
Massimo Battaini: The margin, yeah, when you read the medium voltage, we need to start learning that you need to read that segment of business, power grid and I&C. We have said that we prefer in the last two quarters, starting the last one, when we were overwhelmed by this huge demand of large project from data center, we were bound to ship medium voltage capacity to data center. 8 lines will come to fruition in the next 8 quarters, one per quarter starting from the end of Q1 2027. We have been pretty fast in approving and executing this expansion. The approval came in early 2025 by the first phase, the second phase in 2026. In 2 quarters from now, you will see this volume mounting. Most of this volume will serve data center because we see strong demand there, totally unsatisfied.
Massimo Battaini: We are the first investing in medium voltage capacity for data center. Also combined the medium voltage investment in McKinney for I&C, for data center, with the metal clad. Those are special cables, reinforced cable for data center application. The two things goes hand in hand. This would be the additional portfolio and additional capacity available to serve data center. We do not have written agreement for long term. We have strong demand, strong commitment. We see this strong commitment really solid. The level of price is today even higher than what it needs to be due to the tightness of the market. This level of price will certainly continue for a few quarters. Then for sure there will be some normalization. Of course, you cannot expect to have 20% margin in I&Cs in North America as a normalized margin.
Massimo Battaini: There will be some normalization, but we are the only one which gain the dominant position data center. We will defend this position, and we will leverage this strength, having more asset, having more capacity, having the full portfolio to serve them. That would be our way to make this margin long-term sustainable, alongside the stronger partnership later at the scale that we signed with the data center and the telecom space.
Daniela Costa: Got it. Thank you very much.
Massimo Battaini: Thank you.
Operator: We will now move to our next question from the line of Vivek Midha of Citi. Please ask your question, Vivek. Your line is open.
Vivek Midha: Thank you very much, everyone, and good morning. My first question is a follow-up from Q2, where you commented there was potential to sign further deals in Digital Solutions in the subsequent quarters, given ongoing requests for more capacity from customers. Could you maybe give us an update on the progress of these discussions? Thanks.
Massimo Battaini: Thank you, Vivek. We are in negotiation with, in this case, directly with a couple of hyperscalers for additional volume and commitments. Similar deals as the one that we signed with Molex, so they could pay down payment to secure the margin for long run, for long term. We feel like we will be able to sign and finalize those two major deals by December, January the latest. This will require additional capacity deployment, again, in US, in fiber, and cables.
Vivek Midha: Thank you very much. My second question is just following up on the comments around power grid and medium voltage. The margin is only stable sequentially versus your prior commentary that we should see an improvement in margins in the H2. Just following on from the prior question, should we think that some of this was because of this diversion of capacity towards the data center? It would just be helpful to understand what the drivers were in the quarter and what is going on going forward. Thank you.
Massimo Battaini: Thank you, Vivek. A very pertinent question. The volume of the organic growth is the reflection of the volume shifted to I&C, so the organic growth was only high single digit because the volume went to other direction, to other segments of business. You will get the margin, EBITDA margin at 13.8% and not 1 percentage point higher or 150 basis point higher is because we are still in an inflationary situation, and the formulas work that we can pass on today the price on the We can pass on today to the price the cost that we see in the last 3 months average. But when we produce the products, we add the current cost. So if the current cost continue to go up, we continue lagging behind the level of price they need to have to stabilize the margin at 15%.
Massimo Battaini: But as soon as this soaring cost curve normalized, we will catch up with the 15% because the drivers of the 15% is that the market demand and the tension on capacity is there. There is pricing benefit. There is volume demand for all customer. Power grid is an essential element of the electrification assumption in Europe, in North America, in all the other regions.
Vivek Midha: Perfect. My final question is just a follow-up on submarine telecom. You have announced already the EUR 200 million EXA Meridian deal. How many such deals of similar size do you see in the pipeline in submarine telecom, which could maybe convert in the next year or so? Thank you.
Massimo Battaini: There are similar deals. I mean, the one we signed is one or two deals that the same customer would like to award to the market. Now we became visible. We have the capabilities that do not just go back to our cable asset that we have in Germany. It goes back to the long history of performance of Xtera in the space. We combine the two champion. We have cable experience, we have installation experience with the energy submarine business. Xtera is a champion in repeaters. So the combination of the two make us a strong player. Of course, we do not have yet the scale of the three main one, ASN, SubCom, and NEC. But there is room in a market growing fast for us to gain the share of wallet in the market. How can we go? We will see in few quarters.
Massimo Battaini: There are additional options and projects that we are working on to add portfolio and backlog to the submarine telecom business.
Vivek Midha: Thank you very much.
Massimo Battaini: You are welcome.
Operator: Thank you. Our next question comes from the line of Uma Samlin of Bank of America. Please ask your question. Your line is open.
Uma Samlin: Hi, good morning, everyone. Thank you very much for taking my question. I first want to follow up on the additional fiber contract you just mentioned. I guess it seems like you are planning to have two or a couple of additional relatively large fiber contract. What are the current capacity ramp-up timeline? Has anything changed? How should we think about in regard to your capacity planning into the end of the decade, especially if you got these two deals down by January next year?
Massimo Battaini: Thank you, Uma. If you take 100%, if you make 100% of current capacity, we will almost double it based on the current agreement signed within June 2026. The new deals will add something on top of this doubling of the volume. All this volume, additional volume, will start kicking in from H2 2028 through 2030. So we will have the run rate level of new capacity fully deployed by 2030. Both the one assigned to the agreement that we signed already and the one related to the new agreements.
Uma Samlin: That is super clear. Thank you very much. Another one on Digital Solutions is, I guess you mentioned, if I heard correctly, 28% to 30% EBITDA margin in the backlog for Digital Solutions. How should we think about that translating into the divisional margins into 2027, 2028, and then also that for the new deals? Given fiber prices continue to be very strong, should we expect similar kind of margin profiles there, or should we think there could be some potential upside there?
Massimo Battaini: Sensitive question, Uma, the second part. I will not be able to answer the second part, but here I give you some hints. The market is tight, you are right. Level of prices today is better than what we had three months ago. So it is likely to be the case that we will be more profitable in the new deals than what we had in the current backlog. But I appreciate that this is something that we are still discussing with our customer, and we cannot give you more details. In terms of the EBITDA margin profiles, the journey from 25% today to 2030, to 2020, sorry, to 28% and 30% implies additional volume. The additional volume will come, will bring operational leverage, and will bring a portfolio, a larger portfolio business at a very high margin.
Massimo Battaini: You should take a kind of a linear line from 25% today to 28%, 2030, by 2029. Maybe next year will be at 26% plus. In 2028, could be between 27% and 28%, and certainly meeting the 28% by 2029, 28% margin by 2029, and 2030.
Uma Samlin: That is super clear. Thank you so much. My last one is on the US listing. I guess, after Atkore, especially after closing Atkore, the group exposures are increasingly weighted towards the US. What are your thinkings there? Is there any sort of timeline you are expecting into next year?
Massimo Battaini: We are not ready to issue any timeline. We continue working on it. We need to find the right moment, and we see the value, and we will disclose the timeline at the proper moment, once ready to go ahead with the official decision.
Uma Samlin: That is all for me. Thank you so much.
Massimo Battaini: Thank you, Uma.
Operator: Thank you. We will now take our next question from Akash Gupta of JPMorgan. Please ask your question. Your line is open.
Akash Gupta: Yes. Hi, good morning. I have three questions as well. I will ask one at a time. My first one is on guidance. When we look at the midpoint, EUR 3,100, that would imply EUR 918 for Q4. Then if we take out EUR 30 million from Atkore, then organically we have EUR 888 million, which means EUR 37 million sequential growth. Now, if we look at historically in your business, Q4 has been weaker than Q3. Maybe if you can talk about what is driving this sequential growth in Q4. Do you see this data center growth being not as cyclical as we have in other part of business? Maybe first one on the guidance.
Massimo Battaini: I think, Akash, your math and capability are fantastic. You have exactly spot on. There will be, for the first time, I think in our lives, a Q4 stronger than Q3. Rather says the usual Transmission, which is normally higher in Q4 than Q3. What the exception is that, while in the past year we have seen seasonality impacts in I&C space. Seasonality impact means a normalization of demand in November, December, weaker months compared to Q3. We had now a completely unpredictable situation until a few months ago, driven and skewed by the data center needs in US. So it is I&C, the one that will support the growth in Q4, making Q4, if we continue with this pace, again, the best quarter yet.
Akash Gupta: Thank you. My second one is on Atkore deal. I think you closed the deal ahead of what you communicated at the time of announcement. Maybe on the financing side, when you announced the deal, you said you expected debt financing to be below 4%, with higher cost on hybrid and lower cost on senior debt. Given since the announcement, interest rates in Europe has moved quite a bit. I am just wondering if there is any update on financing costs that we should assume for Atkore. Then maybe another one on Atkore is that you closed the deal a couple of months early, so does it change the timeline for synergy realization?
Massimo Battaini: I will leave Francesco the first part of the question, then I will take the second, Akash.
Pier Francesco Facchini: I think there is no big change on the financing in terms of timeline. We completed the equity raise in September. We will go for the hybrid bond component in the coming months. Then, following that, we will certainly go for senior bonds takeout. Of course, you are right, interest rates are a bit higher. We cannot deny this. But I was reviewing some indications in terms of pricing from the team. I don't think that realistically this will make a big impact on our, for instance, on our EPS, just to mention the key metric which will be impacted.
Massimo Battaini: Thank you, Francesco. The second part is, yes, we are ahead of the original schedule in terms of closing, and we are moving very fast. We broke another record here because we have been able to establish and define a new agents base. When I say agents, I don't mean the people. These are companies representing Atkore and Encore and Prysmian in the market and selling products to the final distributors. We had already implemented a new organization of agents from day one. So the 19 October was the closing. On the 20th, we had the new structure in place. That means exactly what you are alluding to. We are going to be faster in achieving commercial synergies because the sales force is in place already. They know that they have to sell both cables and components from Atkore.
Massimo Battaini: Some of them are already used to having this capability of selling cables and components. So this is what we will leverage to accelerate the commercial synergies. As far as the operational and procurement synergies are concerned, we have to do some fixing. First of all, consolidate the cable activity that used to be produced in Atkore into Encore, and also to fix the service level, which is essential to support the business model of Encore. It is essential to allow Atkore to have access to data center. We need the scale, Atkore has the scale. We need also the service to be a player of Atkore component inside data center. This is probably the largest and best opportunity from a commercial perspective that we have, opening Atkore to this use case, data center. On the commercial side, we set it already.
Massimo Battaini: We have to improve the service and reorganize the supply chain to achieve this as fast as possible.
Akash Gupta: Thank you, Massimo and Francesco. Last one is on potential US listing. I think this is a topic that always comes on table, and I think there was some comment you made earlier on the press call. Given you closed that Encore deal and now North America is by far your even larger exposure than before, what is the latest thoughts, and should we expect something in 2027 on this? Thank you.
Massimo Battaini: You are right. The US now represents more than 50% of the results of the company, so we have even more than before a strong entitlement to be dual-listed US. We will work on this case. We will continue working on the case, and we will announce as we are ready to move forward with the final actions.
Akash Gupta: Thank you.
Massimo Battaini: Thank you, Akash.
Pier Francesco Facchini: Thank you.
Operator: Thank you. Our next question comes from the line of Alasdair Leslie of Bernstein. Please go ahead. Your line is open.
Alasdair Leslie: Oh, thank you. Good morning. I had a few questions on the new copper mill at Encore. Firstly, I was wondering whether you could clarify how you are securing the raw material, the additional copper cathode. Is the majority of that from the expanded domestic supply agreements, maybe more recycling of copper scrap, or does it also rely on some imports too? I guess security of supply is going to become even more of a competitive advantage here. Is that something that could potentially trigger a framework agreement with a data center customer on the power cable side as well going forward? Then maybe just a simple question. In terms of the incremental extra rod output from the second mill, do you expect to double capacity, triple it? Any numbers there? Thank you.
Massimo Battaini: The rod mill require cathodes and waste scrap. We already have agreements with the number one supplier of cathode in US. It is a US-based company. The fact that we have the ability to recycle waste up to 40%, 50% of the metal value is a big plus because we do not depend only on cathode. The market is open in a way in terms of cathode. It is not that tight. It is loose because there are no import tariffs on cathodes, and why there are on rods. That is why the market became tight on rod. Nobody is importing around from abroad, but the market as a whole is importing copper from outside, and we signed agreement with this supplier to secure the volume. On the power side, we do not have agreement in place. We are working on them.
Massimo Battaini: But we have companies committing in a serious way, we can tell you more about the serious way, to buy medium voltage cable from us, to buy the MC cable from us. Beside the commitment, what matters is that there is no alternative. We are the only one with the scale and the service level and the portfolio breadth. So even if they did not commit, they cannot find the whole product range at scale with short lead time from anybody else. That is why we are so much convinced to go ahead with the EUR 700 million additional investment to strengthen our supply chain, product range, vertical integration to serve data center substantially. Not only data center. The investment will also play a role in the non-residential business space, excluding data center.
Massimo Battaini: Incremental output of the rod mill will be basically 1.2 times, 1.3 times the current output of the existing rod mill. So we will add additional volume to McKinney to serve McKinney and support the growth of McKinney, also to replace what we buy rod-wise for our legacy Prysmian plant from other supplier. So it is a make versus buy project. The main driver behind this is not the saving in itself or the tons produced inside versus the standard cost. It is the service. Again, with the equipment in-house, fully connected to the rest of the value chain, you can serve the market with the best service and again amplify the benefits of the additional demand coming from the data center.
Alasdair Leslie: Thank you very much. Thank you.
Massimo Battaini: You are welcome.
Operator: Thank you. Our next question comes from the line of Max Yates of Morgan Stanley. Please ask your question, Max. Your line is open.
Max Yates: Thank you. Good morning. I have two questions. The first one is around the data center exposure within I&C. Could you just give us a feel for how big will that be as a share of revenues in 2026, roughly? How fast has it grown so far year to date, or maybe year to date and in Q3 would be helpful. Thank you.
Massimo Battaini: If you take North America I&C, the data center now represents 25% to 30% of that demand. If you take the global company, this 25% to 30% goes down to 15% more or less in I&C space.
Max Yates: Sorry. Just to be clear, 25% of your North America business in I&C or 25% of I&C?
Massimo Battaini: 25% to 30% of the North America I&C is exposed to data center. Its revenue is coming from data center.
Max Yates: Okay. How fast?
Massimo Battaini: How fast did it grow? Let's qualify this 25%, 30%. This should call it EUR 1 billion, EUR 1.4 billion worth of revenues is a data center business in US. in 2024, when we acquired Encore Wire, that number was EUR 250 million.
Max Yates: Okay, that's helpful.
Massimo Battaini: Thank you.
Max Yates: Just secondly, just thinking through your Digital Solutions business. Your organic growth has been relatively stable this quarter. I guess my question is, given the prices and renegotiations that you are putting in place, would you expect to see this division accelerate in terms of organic growth as we effectively get that better priced sales coming through? Should we see the 17% organic growth that we are seeing now as the right level, or should we see an acceleration from that level maybe over the next 2 to 4 quarters? Thank you.
Massimo Battaini: I think there are two considerations here to be made. When you see the organic growth there, it is the organic growth of the entire Digital Solutions division, and the repricing opportunity is applied to the optical space, which equates to one-third of the total Digital Solution business. The rest of the business is connectivity, where the level of price in this really the Channell is really pretty high. We are 40% plus EBITDA margin. The third bucket is made of MMS, Multimedia Solutions cables, so data cables, which are pretty stable. This 17% at the group level, Digital Solution equates to, call it 35%, 40% at the optical level. So it is pretty high when you read it from this perspective. It will continue along the same line until we add additional volume. The additional volume will not come too far.
Massimo Battaini: In H2, towards mid 2028, H2 2028, it will be the additional volume kicking in and adding volume growth to the repricing benefits.
Max Yates: Okay. Just a very final one, just thinking through your plans for M&A. I guess, how would you frame where you would need to see leverage get back to before you start thinking about M&A again? Or do you look at opportunities out there? Would you continue to do deals and utilize equity? When you think about your divisions, what would be the obvious white spots to you where you would be very keen to add an acquisition?
Massimo Battaini: We continue working on M&A. We don't have a particular issue in terms of leverage. Of course, it all depends on the size. We are looking at bolt-on, mid-size, and large-size acquisitions. We're not holding back any opportunity because of the leverage or the equity. We'll have the power. We have the power to do it. What matters is to identify and land the right target. The strategic fit, and when I say strategic fit, I mean the possibility to give us the value that we created with the last five acquisitions, namely to make us more robust in terms of right to win in some businesses, enhance the leadership, open us to new trend of growth.
Massimo Battaini: These are the levers, these are the directions, these are the guidance that we apply to the assessment of the market when it comes to M&A in US and outside the US. Really, I tell you, we are really working hard, scouting, working, negotiating, reaching out to companies to pursue our growth and support it with M&A.
Max Yates: Okay. Thank you very much.
Massimo Battaini: You are welcome.
Operator: Thank you. We will now take our next question from the line of Chris Leonard of UBS. Please ask your question. Your line is open.
Chris Leonard [Equity Research Analyst: Yeah. Hi there. Hopefully you can hear me. Please, today, go in with two questions as well, and focusing still on the fiber opportunity and Digital Solutions, and following off your comments there, Massimo, in terms of optics going up by 35% to 40% on revenue growth in Q3. How should we think about how far through you are in terms of repricing the existing portfolio within the optics, and whether or not we could see further pricing momentum there, or it is close to 100% done in terms of your reprice? Thank you.
Massimo Battaini: It is, let us say that we are at 75% of the repricing opportunity. In some cases, we cannot reprice because we have a relationship, a strategic partnership that we do not want to hurt. Across the board, we reprice everyone. There are some companies that we reprice with a significant price increase fully reflected and going beyond the level of price in the market. In some cases, we are holding back this ambition. Repricing is happening across the board. There is still that 25% where we can go for a second or third or fourth time, because the repricing is a dynamic process. We started repricing as early as March of this year, and the market was set at around EUR 10 fiber price in the market. The fiber price went up in Q2, went up in Q3.
Massimo Battaini: So, we are continuously reaching out to customers and saying, "Listen, the fiber is not available. I need to add additional price." To a certain extent, we have done what we wanted to do, but there is still a continuous need that we think will remain in place for the next 2 years, given this lack of capacity or short or large imbalance between capacity and demand. So, it is a never-ending process to a certain extent.
Chris Leonard [Equity Research Analyst: Thank you. Also, as a follow-up, maybe on the further longer-term fiber contracts you might look to be signing. As you said, there are a couple in the pipeline here you are hoping to do by December, maybe into January. Is there any update you could give from where you were in Q2, where I think you said this pipeline is maybe worth EUR 10 billion, and you secured EUR 5.5 billion. Has that EUR 10 billion now changed relative to the pricing you have seen in the market?
Massimo Battaini: Sorry, the EUR 10 billion of the agreement you are referring to, the one that we signed, the EUR 10 billion is related to the agreement with Molex and hyperscalers. The new deals, we add the firm revenues to the EUR 10 billion that I mentioned at the end of Q2.
Chris Leonard [Equity Research Analyst: Sure. I was just checking, there has been no additional guidance change on that EUR 10 billion. You do not think there is further upside to the 10 versus where the fiber price is headed to recently?
Massimo Battaini: No, sorry. The question is not. The EUR 10 billion is firm in terms of pricing or in terms of margin. The EUR 10 billion can grow because there are cost plus adjustment formula in the existing contract. The EUR 10 billion, as the cost goes up, will go to EUR 10, EUR 11, from EUR 10 to EUR 11 to whatever. But what is relevant is not that, because the margins inside the EUR 10 billion, or whatever the number will be as a result of the cost price adjustment, is firm up in our contract. On top of this EUR 10 billion, as we stand today, there will be additional billions coming from new deals. That is what we like to sign in the next 2, 3 months.
Chris Leonard [Equity Research Analyst: Thank you. Thanks so much.
Operator: Thank you. We will now take our next question from Monica Bosio of Intesa Sanpaolo. Please ask your question.
Monica Bosio: Good morning, everyone, and thanks for taking my questions. I will ask one at a time. The first question is on the Industrial & Construction business. Would it be possible to break up the adjusted EBITDA between NAFTA and the rest of the regions, mostly Europe?
Massimo Battaini: Yes, for sure it is possible. Monica, I mean, yeah, for sure it is possible.
Monica Bosio: Just a laugh.
Massimo Battaini: Yeah, you probably should see this 27% in North America, coupled with an average of around 10%, 11% in the other regions. But again, the other regions have some different level. Now, there is LATAM pretty high with 13%, 14% EBITDA margin. Some European country pretty low. Some Nordics country in Europe are pretty high. But if you want the split between North America and the rest, I would say that 28% to 27% North America and 10%, 12% the rest is a good proxy of these numbers.
Monica Bosio: Perfect. Thank you very much. The second is on the investment plan. Just for housekeeping, can you please quantify the yearly total CapEx for 2026 and above all for 2027?
Massimo Battaini: I can tell you
Monica Bosio: Thank you.
Massimo Battaini: I can tell you more about 2026. We started with a budget of, let's call it EUR 850 million, more or less, and we are going to beat EUR 1 billion 100 this year. Partly due to the Molex and hyperscaler agreement, and part is related to what we discussed before and what discussed in prior quarters. We are expanding capacity mostly in US to serve the strong demand from customers across the board. 2027 and beyond, we would like, if you do not mind, we keep this for the Capital Markets Day next year. The CapEx of 2026 have been fully reflected in the guidance. That is why I mentioned before, it is EUR 100 million increase in free cash flow in spite of the metal increase and the significant additional CapEx deployed to support the growth in 2027, 2028.
Massimo Battaini: For the future, if you can hold back until Q2 next year when we can give the full picture, the growth, the driver growth through 2030, the EBITDA margin, investment, the free cash flow, and all the other important KPIs.
Monica Bosio: Okay, got it. I will wait. Just, if I may, please, a final one. Looking at the capacity increase, there is also Transmission. I have read somewhere that it could be possible to add another vessel, and I was wondering if you can just give us an update of your planning capacity increase in Transmission. Thank you.
Massimo Battaini: The plans that we approved will come to full completion by end of 2027, with the final implementation of the capacity expansion in Arco Felice, Naples, and in Pikkala, and in Gron, especially in Gron. The other vessel will be a transformation of one of the vessels that we currently use into a more performing vessel in terms of dynamic positioning, so steady steer when there are stronger weather conditions. So there will be an upgrade, an important upgrade, significant upgrade on important vessel. The current fleet is fully balanced with the current production capacities, so that we can still confirm that all the cable we produce and store by our assets. But we will further invest in asset for burying cables.
Massimo Battaini: The plowing, the jetting, all these machines, we are launching a new wave of investment to upgrade the capability of this asset, because burial becomes essential. Essential in terms of execution, speed, in terms of efficiency, in terms of winning new opportunities. So this is where we are going to invest the money, not invest in itself, but in burial equipment.
Monica Bosio: Perfect. Thank you very much, Massimo.
Massimo Battaini: And more about Transmission will be disclosed at the Capital Markets Day for future plans of capacity expansion. Thank you all.
Monica Bosio: Perfect. Thank you. Thank you very much.
Operator: Thank you. We will now take our next question from the line of Sean McLoughlin of HSBC. Please ask your question. Your line is open.
Sean McLoughlin: Thank you. Good morning. If I can just return to the submarine telecom opportunity. I mean, you mentioned in the press release that you would be considering a new installation vessel. Is this dependent on more awards? Is this enough also to get you to the EUR 250 million revenue ambition? And what kind of CapEx would we be talking about? That is the first question.
Massimo Battaini: Thank you, Sean. The vessel is an essential part of the turnkey business, and submarine telecom is a turnkey business. The crucial part of this business are cable and repeaters. For the time being, we are focusing on expanding capacity in repeaters and cables. The vessel will use a market vessel for the installation of the first project, this New Jersey UK project. We can still resort to the market for installation. The plan is that as we advance our position in this market, Q2, Q3 next year, we will make a decision about a vessel owned by us. It will be not as expensive as a submarine power vessel. It will be in the range of EUR 150 million investment to consider for a telecom submarine investment in this space. Sorry, vessel in this space.
Sean McLoughlin: Fantastic. Thank you. The second question on, you mentioned the Hollow Core Fiber industrialization. I was interested to understand where you believe you are in the industrialization path compared to peers, and what kind of timeline to revenues. I think more longer term, I suppose, what is the appetite for this product? Is this accretive to volumes? Does this help you get hyperscaler lock-in over the long term, and just thinking about long-term margin opportunity on this technology? Thank you.
Massimo Battaini: We are the end stage of the commercialization. As I said, we will start selling those products we produced in the last few weeks, and we continue producing through December and January. We have customers very keen on having those products, both for interconnectors, but also for inside the campus. The appetite is there. The product is pretty difficult in terms of process, and that is why the industrialization took almost 1 year. Right now, we are at the stage where we can further expand capacity to make the production at scale for this product. It will become visible late 2027 with more volume when we will have more capacity devoted to the Hollow Core Fiber. It is extremely visible in terms of profitability, because level of price is not comparable to that of the standard fiber. It is tenfold. I think, or more.
Massimo Battaini: It is a very visible and appreciated segment of business. We think we are ahead of the others in terms of readiness to commercialize it. The volume will be coming more visible from Q3, Q4 2027 onwards. Because as I said, the enterprise business solution serves one important need to further spread out the data center without losing the power of the signal. This help the data center avoid the famous cooling water and energy constraints that are currently affecting the deployment, the expansion of the data center build-out.
Sean McLoughlin: Understood. Thank you.
Massimo Battaini: Thank you, Sean.
Operator: Thank you. We will now take our next question from the line of Alessandro Cecchini of EQUITA for his questions. Please go ahead.
Alessandro Cecchini: Hello, everybody, and thank you for taking my questions. The first one actually is on Transmission business. If you can add some color on, I mean, your expectation for margins next year or looking at the current corridor that we are running on 20%. Just to understand, with additional capacity in 2027, you expect further improvement in terms of margins. This is my first. My second is just a clarification on the Digital Solutions top line growth expectations. Just to check if I understood correctly that you expect mid-teens organic growth, so 15%, 16%, 17%, the current growth rates to continue without, I would say, additional volumes capacity that will come starting from H2 2028. Just to check this. Thank you.
Massimo Battaini: Thank you, Alessandro. I will answer pretty fast the Transmission question. The trajectory is to bring us to 24%, 25% EBITDA margin in 2, 3 years. The 20%, 21% is a level that we already consolidated in 2026. The backlog with high margin will help us enhance this level. The additional vertical integration, ACSM is part of it, will help us also there. The expansion in submarine telecom, again, is a very critical addition, the submarine telecom business with Xtera. Our goal is to reach 24%, 25% by 2030. Having said that, I already disclosed the Capital Markets Day target, so let me stop here. Digital Solutions top line growth, yes, is 15%, high single digit, sorry, teens digit, is the growth that we expect. In the next 2 years, the price will be the driver of the growth.
Massimo Battaini: Beyond the next 2 years, the price will not represent any more driver of growth, the driver of growth will become the additional capacity. So you can take this 15% to 20% for the next 5, 6 years, but with a different shift. Price in the first 2, 3 years, and volume from 2029 onwards.
Alessandro Cecchini: Okay. Many thanks.
Massimo Battaini: You're welcome. Thank you, Alessandro.
Operator: Thank you. We will now take our next question from the line of Nabil Najeeb of Deutsche Bank. Please go ahead. Your line is open.
Nabil Najeeb: Good morning. Thanks for taking my questions. I've got three. I'll just ask them one at a time. The first one is on Digital Solutions, just coming back to the margins, but more short term. I know you kind of touched on this a little bit, but I'm just wondering if you're confirming the margin guidance for Digital Solutions for 2026, which I think was 24% to 25%, because that implies a sequential uptick in margins in Q4, and Q4 is typically somewhat weaker seasonally. I know you said Q4 will defy the typical seasonality, particularly at I&C this time around. Should we expect the same for Digital Solutions?
Massimo Battaini: Yeah, we should expect this 24%, 25%, 24% full year, even if remember that Q1 was still prior to the pricing benefit and the additional demand benefits. But this is what we expect to see at the end of this year.
Nabil Najeeb: Okay, got it. Just to follow up again on Digital Solutions, on the hyperscaler deals that you are currently negotiating, do you think you can give us any indication of roughly how big these deals are going to be, the two deals that you're talking about? Maybe relative to the EUR 5.5 billion Molex deal that you signed?
Massimo Battaini: Yeah, let's say that the sum of the two can become similar, the sum of the two, or there are two major one and a few small ones. The sum of this package would be pretty close to the size of the Molex in itself.
Nabil Najeeb: Very clear. Understood. Then in terms of cash flows, Francesco, I think the new free cash flow guide implies a pretty strong performance in Q4. Just wondering what the drivers are here. Just wanted to confirm if you got the down payment related to the Molex deal already in Q3, or is that for Q4?
Pier Francesco Facchini: No. No, no, it implies what we commented in terms of sequential growth of the EBITDA, first of all. It implies the fact that the metal price impact is still there in Q4, but maybe softer than it did Q3 because of the dynamic of the metal price through the quarters. It implies the fact that we are running very fast on achieving faster efficiencies on all the lines of our net working capital, and this is well on track. Then, of course, it embeds also some little contribution coming from our new colleagues of Atkore.
Nabil Najeeb: Thanks, Francesco. If I can just squeeze one last one in, just on Atkore. Just wondering if you can give us an update on the standalone performance there. I know Encore Wire has reached a record, but the margin, how about the margin of Atkore? Do you see an improvement there as well in Q3?
Massimo Battaini: The Atkore margin in Q3 is in line with the full year or year-to-date margin at 14% to 14.5%. It is, again, a big room for improvement, especially given the fact that we have now a serious opportunity to expand the Atkore presence inside the data center, given that they have a scale. What we just had to work on is the bundling with our cables, but the bundling will happen as we speak because the agents are in place already with this capability set. The service level is the last bit that we have to fix. So the potential is very high. Give us few months to improve the supply chain and make this happen.
Pier Francesco Facchini: And of course, Nabil.
Nabil Najeeb: Got it. Thanks, Francesco.
Pier Francesco Facchini: Molex is already included in our cash flow in Q3. I missed your-
Nabil Najeeb: Okay. I was wondering
Pier Francesco Facchini: last part of your question. Apologize for that.
Nabil Najeeb: Got it.
Pier Francesco Facchini: Okay.
Nabil Najeeb: Thanks for that.
Operator: Thank you. We will take our next question from the line of Alessandro Tortora of Mediobanca. Please go ahead. Your line is open.
Alessandro Tortora: Yes. Hi. Good morning to everybody. I have three questions, okay? Fast questions. The first one, if you can help me a little bit to reconcile the year-end net debt, considering also your comment on the hybrid bond, because as you can guess, if you are going to issue the bond by year-end, so to understand the year-end net debt leverage. That is the first question. The second question is on, let us say, about the T&Cs for the new potential frame agreement. Compared to Molex agreement, do you see significant differences, or better say, do you see the possibility, for instance, to improve the T&Cs of, let us say, new agreement? That is the second question. The last one, I recall it in the past that you still have, let us say, huge portion of underground corridor project into the Transmission business.
Alessandro Tortora: Is this a kind of technology where do you see some application in some other countries? Because after Germany, you basically had zero project related to that. Thanks.
Pier Francesco Facchini: I take the first part of your question, Ciao Alessandro, on the debt.
Alessandro Tortora: Oh.
Pier Francesco Facchini: The debt is quite simple, I would say. Let me say that without considering Atkore acquisition, our net debt would be in the region of EUR 2.3 billion. So you should add approximately EUR 1.7 billion debt to that for the impact of the acquisition of Atkore. The assumption here is the same assumption that we have done when we presented the deal of Atkore, so to have, as part of the financing, a hybrid bond in the region of EUR 750 million. That is an important assumption because the EUR 4 billion, if you add up EUR 2.3 billion plus EUR 1.7 billion, the EUR 4 billion, which is a realistic estimate of our net debt, is of course IFRS net debt. So it is excluding the hybrid, which is treated as equity, as you know, according to IFRS.
Massimo Battaini: Thank you, Francesco.
Pier Francesco Facchini: Perfect.
Massimo Battaini: The terms and conditions of the contract we signed with Molex and the others is what we call a watertight contract, so super strong in terms of guaranteeing security of the margin in absolute value per volume delivered, with volume support, the commitment support by take-or-pay. What could change in this contract is the current contract that the current level of price is higher than what we had in the market back to Q1 or Q2 this year. So we would like to represent in the same T&Cs when it comes to volume, take-or-pay, down payment, parent company, all the rest. We hope we will be able to have a better price, which is likely thought. The underground advantage, let me show you.
Massimo Battaini: Germany is the first country where the HVDC 525 has been deployed, and we are in the installation, advanced installation phase for the famous German corridor. 525 technology has become here the standard now in the market. We are not selling any longer the 220 kV. All interconnectors, biday, submarine, or land, this is the prevailing technology. This is not just the 525 kV. As you know, we innovated here with a 20% power upgrade of the 525 standard technology, so that now we can transmit with our solution the- From the 2 gigawatt power, typical of a standard 525, at 2.4 gigawatt power. This will be giving us a competitive edge over the others. More power means that you pay less for megawatt transmitted, which is an important KPI for TSO project.
Alessandro Tortora: Okay. That's it.
Massimo Battaini: Thank you, Alessandro.
Operator: Thank you. As a reminder, before we move to our next question, please press star 11 on your telephone keypad if you wish to ask a question. We will now take our next question from the line of Jean-François Granjon of Oddo BHF. Please ask your question. Your line is open.
Jean-François Granjon: Yes. Good morning. Thank you for taking my question. I have three questions, please. I just want to come back on what you mentioned for the data center. I do not well understand what you mentioned, the amount of the data center you made currently and the percentage of the sales for the group. The second question concerns the new investment expected. You mentioned more than EUR 700 for the medium voltage business. When do you expect this new plan, this new investment, should be operational for the company? My last question, I would come back to the I&C excellent performance for Q3. We saw a very surprising growth margin, I would say more than 300 basis points compared to last year, and 400 basis points sequentially compared to Q2 2026. I am just wondering, can you come back to explain why this huge improvement for the margin?
Jean-François Granjon: Do you expect this margin is sustainable for Q3 and for Q4, sorry, and for sure for 2027? Thank you.
Massimo Battaini: Thank you, Jean-François Granjon. I will give you a comprehensive answer on the data center. When I answered before, the question was the size of the data center revenues inside I&C. Now, I will give the size of the data center revenues out of the total revenues that we make at the group level. We do sell to data center across the business, the Transmission, the power grid, the electrification, Digital. We can say that EUR 2.5 billion today in 2026 is the level of revenue through data center across all the segments of business. Let's call it 10% plus, 12% of the company revenues is in the data center space. This EUR 2.5 billion were, I said it before, less than EUR 300 million 2 years ago. So, significant growth, significant uptake. The medium voltage CapEx that we presented, EUR 700 million, will become operational in different moments.
Massimo Battaini: The rod mill will be fully in place by the end of 2028, January 2029, maybe. The medium voltage capacity will come in one line per quarter from Q1 2027 onwards, and there will be 8 lines added to our capacity. So, over the next 2 years, you will see those 8 lines coming live. The metal clad, so the specific investment for metal clad products for data center, will become available from the end of H2 2028 onwards. Again, all those investments are to ensure, when we combine those investments with the relevant investment in Digital Solutions space, we ensure that we follow support data center expansion throughout the whole value chain, power and optical business. Back to the Q3 excellent performance, it is certainly driven by I&C North America, with the upgrade of EBITDA margin in US from a standard historical 20% to 27%.
Massimo Battaini: It is also supported by the expansion of margin Digital Solutions. It is the first quarter, Q3, in Digital where you see more depth in as a question of the pricing, the repricing of the customer base. This will start to remain sustainable in Q4 and to continue next year. As long as this demand from data center that we see growing week after week continue to remain strong in the market.
Jean-François Granjon: Okay. Thank you so much. Very clear. Thank you.
Massimo Battaini: Thank you, Jean-François Granjon.
Operator: Thank you. There are no further questions. I will now turn the conference back to the room for closing comments.
Massimo Battaini: Thank you all. Thank you for your time today. I hope we have been able to explain how successful the last three years has been, and this Q3 outstanding record result speaks for itself. We continue supporting the growth in the future with M&As, organic growth, and we will give you more visibility of those ambitions at the next Capital Markets Day. Thank you all for your time.
Monica Bosio: Thank you.
Massimo Battaini: Thank you.
Monica Bosio: Thank you.
