Q2 2026 Innio NV Earnings Call

Speaker #1: Cozy. We're left in the room, are also Martin Wiedner, leading global sales for data centers and power solutions at INNIO, and Andreas Eberharter, responsible for product management and marketing.

Speaker #1: Let's have a quick look at today's agenda. First, Olaf and Dennis will present the second quarter results, then you'll have approximately 30 minutes for your questions.

Speaker #1: Please note that this conference call is being recorded today, July 28, 2026. Our conference call will include both gap and non-gap financial results, reconciliations of our non-gap measures to the most directly comparable gap measures can be found in our Form 10-Q for the quiet period ended June 30, 2026, our quarterly earnings release in the corresponding presentation slides, all of which are available on our IR website.

Speaker #1: Good day, and thank you for standing by. Welcome to the INNIO N.V. 2nd quarter 2026 results conference call and webcast. At this time, all participants are in listen-only mode.

Speaker #1: We will be making forward-looking statements about our business, market position, and future performance. These statements are made only as of today's date. We do not undertake any obligation to update these statements except as may be required by law.

Speaker #1: After the speaker's presentation, there will be a Q&A session. To ask a question during the session, you need to press *11 on your telephone keypad.

Speaker #1: These statements involve known and unknown risks and uncertainties that may cause our actual results to differ materially from those anticipated or implied today. For additional information on risks and uncertainties, please refer to our SEC filings.

Speaker #1: You will hear an automatic message advising your hand is raised. To withdraw a question, please press *11 again. Please be advised that today's conference is being recorded.

Speaker #1: Unless otherwise specified, all comparisons refer to Q2, 2026 versus Q2, 2025. And with that, I'll hand it over to Olaf.

Speaker #1: I would now like to hand the conference over to our first speaker today, Timothy Facila, Head of IR. Please go ahead.

Speaker #2: Thank you, Tim. Hello, everyone, and thank you for joining us today. It's great to have you on the call. Time has flown by since our IPO, and we are very excited to continue our success story—no, as a our IPO, INNIO has made substantial progress while continuing to build momentum across the business.

Speaker #2: Hello, everyone, and welcome to INNIO's 2nd Quarter 2026 earnings call. Our first is a publicly listed company. My name is Tim Facila, Vice President of Investor Relations at INNIO, and I'm joined by our CEO, Olaf Bärling, and our CFO, Dennis Schulze.

Speaker #2: With us in the room are also Martin Wiedner, leading global sales for data centers and power solutions at INNIO, and Andreas Eberharter, responsible for product management and marketing.

Speaker #2: In Q2, we delivered record equipment order intake of 2.3 billion dollars, up 316% year over year. Revenue increased 42% to 938 million dollars. Adjusted EBITDA grew 20% to 172 million dollars.

Speaker #2: Let's have a quick look at today's agenda. First, Olaf and Dennis will present the Q2 results. Then you'll have approximately 30 minutes for your questions.

Speaker #2: Please note that this conference call is being recorded today, July 28, 2026. Our conference call will include both gap and non-gap financial results, reconciliations of our non-gap measures to the most directly comparable gap measures can be found in our Form 10 Q for the quiet period ended June 30, 2026, our quarterly earnings release in the corresponding presentation slides, all of which are available on our IR website.

Speaker #2: Given this strong performance and our record backlog, we are introducing full-year 2026 guidance today. Dennis will provide you further details later. Our order equipment backlog reached a record 6.6 billion dollars at quarter end.

Speaker #2: We will be making forward-looking statements about our business, market position, and future performance. These statements are made only as of today's date. We do not undertake any obligation to update these statements, except as may be required by law.

Speaker #2: With capacity expansion progressing as planned, we are well positioned to deliver continued profitable growth. As this is our first earnings call, some of you may not yet be familiar with INNIO.

Speaker #2: These statements involve known and unknown risks and uncertainties that may cause our actual results to differ materially from those anticipated or implied today. For additional information on risks and uncertainties, please refer to our SEC filings.

Speaker #2: I therefore begin with a brief introduction of the company before walking you through our key highlights for the quarter. So, let me begin with who we are, what we do, and what is driving the growing demand we see from customers.

Speaker #2: Unless otherwise specified, all comparisons refer to Q2 2026 versus Q2 2025. And with that, I'll hand it over to Olaf.

Speaker #3: Thank you, Tim. Hello, everyone, and thank you for joining us today. It's great to have you on the call. Time has flown by since our IPO.

Speaker #2: INNIO delivers decentralized power solutions for critical infrastructure and the AI industry. In 2025, INNIO generated 2.6 billion dollars in revenue, reflecting continued growth across our businesses.

Speaker #3: And we are very excited to continue our success story now as a listed company. Since our IPO, INNIO has made substantial progress while continuing to build momentum across the business.

Speaker #2: With adjusted EBITDA, of 549 million dollars, profitability was also attractive. Now, please look at the top of this slide, where you can see our leading brands: on the left, Yenbacher, a market leader in power generation with long heritage; on the right, Walkersha, a key player in the compression market.

Speaker #3: In Q2, we delivered record equipment order intake of 2.3 billion dollars, up 316% year over year. Revenue increased 42% to 938 million dollars. Adjusted EBITDA grew 20% to 172 million dollars.

Speaker #2: On the lower half of the slide, you can see how we operate business through two segments: equipment and services. Equipment on the lower left represents 52% of 25 revenue, and it's our gross engine.

Speaker #3: Given this strong performance and our record backlog, we are introducing full-year 2026 guidance today. Dennis will provide you with further details later. Our order equipment backlog reached a record $6.6 billion at quarter end.

Speaker #2: Across our three business lines, data center, power solutions, and compression, we serve a diverse range of end customers: strong data center momentum is reflected in 59% of 2025 equipment order intake.

Speaker #3: With capacity expansion progressing as planned, we are well positioned to deliver continued profitable growth. As this is our first earnings call, some of you may not yet be familiar with INNIO.

Speaker #2: Power solutions represent 35% of the equipment order intake in '25, has been our core business for decades. We serve critical infrastructure, utilities, industrial customers, and municipalities worldwide.

Speaker #3: I will therefore begin with a brief introduction of the company before walking you through our key highlights for the quarter. So, let me start with who we are, what we do, and what is driving the growing demand we see from customers.

Speaker #2: As coal-fired generation continues to retire, and renewable penetration increases, our power solutions business is growing. It is supported by continued demand for peaker plants that help maintain grid stability.

Speaker #3: INNIO delivers decentralized power solutions for critical infrastructure and the AI industry. In 2025, INNIO generated $2.6 billion in revenue, reflecting continued growth across our businesses.

Speaker #2: At the same time, we are seeing continued momentum of our biogas solutions, especially in Germany, with growing potential in the United States. Services on the lower right, accounted for 48% of 25 revenue.

Speaker #3: With adjusted EBITDA of $549 million, profitability was also attractive. Now, please look at the top of this slide, where you can see our leading brands.

Speaker #2: It is built on a continuously growing installed base fueled by the equipment business. Each segment has a long track record of strong profitability. With that, let's move to page number 7.

Speaker #3: On the left, Jenbacher—a market leader in power generation with a long heritage. On the right, Waukesha, a key player in the compression market. On the lower half of the slide, you can see how we operate the business through two segments: Equipment and Services.

Speaker #2: Here you can see one of the key strengths of the INNIO business model: our service flywheel. Every engine we sell enters in an installed base.

Speaker #3: Equipment on the lower left represents 52% of '25 revenue, and it's our gross engine. Across our three business lines—data center, power solutions, and compression—we serve a diverse range of end customers. Strong data center momentum is reflected in 59% of 2025 equipment order intake.

Speaker #2: That installed base generates high margin recurring services, revenue through long-term service agreements, for a large portion of our fleet. As end of '25, INNIO's installed base stood at approximately 44 gigawatts globally.

Speaker #2: The fleet requires regular maintenance. Parts replacement and periodic overhauls with its operational life. This is resulting in a potentially long-duration non-discretionary revenue stream that we compound at fleet growth.

Speaker #3: Power solutions represent 35% of the equipment order intake in '25 and have been our core business for decades. We serve critical infrastructure, utilities, industrial customers, and municipalities worldwide.

Speaker #2: The dynamic acceleration of our flywheel is clearly visible in our numbers. On the left side, you can see the significant growth of our equipment order intake, which increased from 3.9 billion in '25 to 6.6 billion dollars for the last 12 months.

Speaker #3: As coal-fired generation continues to retire and renewable penetration increases, our Power Solutions business is growing. It is supported by continued demand for peaker plants that help maintain grid stability.

Speaker #2: This impressive order momentum has driven our backlog to a record 6.6 billion dollars. The equipment order backlog is providing excellent visibility into the future revenue growth and supporting continued expansion in our installed fleet.

Speaker #3: At the same time, we are seeing continued momentum of our biogas solutions, especially in Germany, with growing potential in the United States. Services on the lower right, accounted for 48% of 25 revenue.

Speaker #3: It is built on a continuously growing installed base fueled by the equipment business. Each segment has a long track record of strong profitability. With that, let's move to page number 7.

Speaker #2: At the same time, we are meaningfully expanding our capacity to support future growth. As additional capacity comes online, we expect to release further production slots, providing further runway for the order growth.

Speaker #3: Here you can see one of the key strengths of the INNIO business model: our service flywheel. Every engine we sell enters into our installed base.

Speaker #2: As a result, we remain confident in our ability to grow backlogs through '27 and beyond. On the right side, you see our expanding installed base continues to translate into profitable recurring revenue.

Speaker #3: That installed base generates high-margin, recurring service revenue through long-term service agreements for a large portion of our fleet. As of the end of 2025, INNIO's installed base stood at approximately 44 gigawatts globally.

Speaker #2: Service revenue reached 1.4 billion dollars for the last 12 months ended in Q2 '26. With an adjusted segment EBITDA, margin of 30% for the same period.

Speaker #3: The fleet requires regular maintenance, parts replacement, and periodic overhauls throughout its operational life. This results in a potentially long-duration, non-discretionary revenue stream that we can compound with fleet growth.

Speaker #2: With demand continuing to accelerate and important question is: why are more and more customers choosing gas engine solutions? Let's move on page 8. As electricity demand grows and grid constraints become more acute, customers are increasingly looking for practical ways to secure power and support growth.

Speaker #3: The dynamic acceleration of our flywheel is clearly visible in our numbers. On the left side, you can see the significant growth of our equipment order intake, which increased from $3.9 billion in '25 to $6.6 billion for the last 12 months.

Speaker #2: Behind the meter gas engines deliver both: take a look at the left side on our slide, an actual Bloomberg NEF analysis shows gas engines can offer the lowest levelized cost of energy among behind-the-meter technologies.

Speaker #3: This impressive order momentum has driven our backlog to a record $6.6 billion. The equipment order backlog is providing excellent visibility into future revenue growth and supporting continued expansion in our installed fleet.

Speaker #2: And even the grid access becomes available. The operating cost of an installed gas engine can remain below the cost of the grid power, supporting our belief that behind-the-meter solutions are not the bridge solution but are here to stay.

Speaker #3: At the same time, we are meaningfully expanding our capacity to support future growth. As additional capacity comes online, we expect to release further production slots, providing additional runway for order growth.

Speaker #2: As shown on the right side, the business case becomes even more compelling when you consider recent market developments. Last week, the White House announced that nearly all utilities as well as several co-location companies signed the rate payer protection pledge.

Speaker #3: As a result, we remain confident in our ability to grow backlogs through 2027 and beyond. On the right side, you see our expanding installed base continues to translate into profitable recurring revenue.

Speaker #2: We believe this is a sign of growing support for behind-the-meter power. Their participation follows an earlier commitment made by leading global hyperscalers. In many ways, the pledge formalized what we are already seeing in the market: data center operators and utilities increasingly recognize this.

Speaker #3: Service revenue reached $1.4 billion for the last 12 months ended in Q2 '26, with an adjusted segment EBITDA margin of 30% for the same period.

Speaker #3: With demand continuing to accelerate, an important question is: why are more and more customers choosing gas engine solutions? Let's move on to page 8. As electricity demand grows and grid constraints become more acute, customers are increasingly looking for practical ways to secure power and support growth.

Speaker #2: Securing dedicated on-site power can be a fast, reliable, and cost-effective path to support growing AI demand. This trend is further supported by infrastructure bottlenecks across the power ecosystem.

Speaker #2: And this is where INNIO is uniquely positioned. Our platform is built around the Yenbacher Type 6 engine family, including the J624. This engine was recently recognized by semi-analysis as an industry most consequential engine, it is combining outstanding performance with highly attractive economics.

Speaker #3: Behind-the-meter gas engines deliver both. Take a look at the left side of our slide—an actual Bloomberg NEF analysis shows gas engines can offer the lowest levelized cost of energy among behind-the-meter technologies.

Speaker #3: And even as grid access becomes available, the operating cost of an installed gas engine can remain below the cost of grid power, supporting our belief that behind-the-meter solutions are not just a bridge solution, but are here to stay.

Speaker #2: Our competitive advantage comes down to two factors: performance and modularity. The Yenbacher Type 6 platform delivers industry-leading power density, fast response times, and high rotational inertia.

Speaker #2: With this, it is easier suited for the demanding and dynamic load profiles of AI-driven data centers. The modular designs allows customers to scale rapidly, reduce costs, and accelerate time to power.

Speaker #3: As shown on the right side, the business case becomes even more compelling when you consider recent market developments. Last week, the White House announced that nearly all utilities as well as several co-location companies signed the rate payer protection pledge.

Speaker #2: When a 1 gigawatt of data center capacity can support more than 10 billion dollars in revenue, every month counts, speed to power becomes a key competitive advantage.

Speaker #3: We believe this is a sign of growing support for behind-the-meter power. Their participation follows an earlier commitment made by leading global hyperscalers. In many ways, the pledge formalized what we are already seeing in the market.

Speaker #2: Let me show you how our strong market position translate into our business performance. Just look at our second quarter highlights on page 10. Overall, it was an excellent quarter for INNIO.

Speaker #3: Data center operators and utilities increasingly recognize this. Securing dedicated on-site power can be a fast, reliable, and cost-effective path to support growing AI demand.

Speaker #2: First, we delivered very strong order intake, supported by a major new customer win and strong demand across our end markets: equipment order intake increased, 316% year-over-year to 2.3 billion dollars.

Speaker #3: This trend is further supported by infrastructure bottlenecks across the power ecosystem. And this is where INNIO is uniquely positioned. Our platform is built around the Jenbacher Type 6 engine family, including the J624.

Speaker #2: Second, revenue growth continues to accelerate, group revenue increased 42% year-over-year, reflecting high customer demand and ongoing execution. Third, we continue to grow profitable while investing for the future.

Speaker #3: This engine was recently recognized by SemiAnalysis as one of the industry's most consequential engines. It combines outstanding performance with highly attractive economics. Our competitive advantage comes down to two factors: performance and modularity.

Speaker #2: We expanded capacity to support increasing demand, at the same time adjusted EBITDA increased 20% year-over-year to 172 million dollars, demonstrating a strength and resilience of our business model.

Speaker #3: The Yenbacher Type 6 platform delivers industry-leading power density, fast response times, and high rotational inertia. With this, it is easier suited for the demanding and dynamic load profiles of AI-driven data centers.

Speaker #2: Taken together, these results highlight the strength of our market position and our execution capabilities. Dennis will go into details later. But let me provide some color on the order activity we saw during the quarter.

Speaker #3: The modular designs allow customers to scale rapidly, reduce costs, and accelerate time to power. When 1 gigawatt of data center capacity can support more than $10 billion in revenue, every month counts. Speed to power becomes a key competitive advantage.

Speaker #2: On the next page number 11, the key message is that demand remains strong, broad-based, and order intake in Q2 '26 reached record levels, driven by continued data center demand.

Speaker #3: Let me show you how our strong market position translates into our business performance. Just look at our second quarter highlights on page 10. Overall, it was an excellent quarter for INNIO.

Speaker #2: We saw follow-on orders from hyperscalers customers and co-location providers as their continued to execute phased data center build-outs. This is particularly encouraging as repeat orders validate our technology and execution capabilities.

Speaker #3: First, we delivered very strong order intake, supported by a major new customer win and strong demand across our end markets. Equipment order intake increased 316% year-over-year to $2.3 billion.

Speaker #2: Combining with the composition of our backlog, they further support our view. The structural demand outlook for data center power remains highly durable. While data centers continue to be significant growth drivers, demand was not limited to the market.

Speaker #3: Second, revenue growth continues to accelerate. Group revenue increased 42% year-over-year, reflecting high customer demand and ongoing execution. Third, we continue to grow profitably while investing for the future.

Speaker #2: Importantly, our growth remains diversified. As illustrated on the right, no single customer represents an outsized share of our order book. Looking ahead, we see additional customers entering our top customer profile.

Speaker #3: We expanded capacity to support increasing demand. At the same time, adjusted EBITDA increased 20% year-over-year to $172 million, demonstrating the strength and resilience of our business model.

Speaker #2: The pattern is clear. The customer base continues to broaden, providing a healthy balance across the portfolio. Before I hand over to Dennis, please let me show you how INNIO is helping power the next generation of AI-driven growth.

Speaker #3: Taken together, these results highlight the strength of our market position and our execution capabilities. Dennis will go into details later, but let me provide some color on the order activity we saw during the quarter.

Speaker #2: Please move to page number 12. The highlight here: this quarter was a 1.1 gigawatt order for mega-scale data center customer. One of the largest orders in INNIO's history.

Speaker #3: On the next page, number 11, the key message is that demand remains strong, broad-based, and diversified. Starting on the left, order intake in Q2 '26 reached record levels, driven by continued data center demand.

Speaker #2: We outlined in today's press release more than 200 Yenbacher J624 engines are expected to provide resilient, scalable, behind-the-meter prime power. This order is powerful proof for our technology.

Speaker #3: We saw follow-on orders from hyperscaler customers and co-location providers as they continued to execute phased data center build-outs. This is particularly encouraging, as repeat orders validate our technology and execution capabilities.

Speaker #2: And our ability to execute at scale. It is further reinforcing INNIO's position as a key enabler of AI infrastructure with a diversified and growing customer base.

Speaker #2: And the momentum is clearly reflected in our results. With that, let me hand over to Dennis to walk through the financials.

Speaker #3: Combining with the composition of our backlog, they further support our view. The structural demand outlook for data center power remains highly durable. While data centers continue to be significant growth driver, demand was not limited to the market.

Speaker #1: Thank you, Olaf, and hello everybody from my side as well. It is a great pleasure to present INNIO's financial results to you for the first time as a public company.

Speaker #1: I will take you through our second quarter performance, the visibility we have on the business ahead, our capacity expansion, and at the end, our outlook for the full year.

Speaker #3: Importantly, our growth remains diversified. As illustrated on the right, no single customer represents an outsized share of our order book. Looking ahead, we see additional customers entering our top customer profile.

Speaker #1: Let me start with the four key messages of this quarter. First, demand is accelerating across all of our business lines. Second quarter, equipment order intake was up more than 300% year-over-year.

Speaker #3: The pattern is clear. The customer base continues to broaden, providing a healthy balance across the portfolio. Before I hand over to Dennis, please let me show you how INNIO is helping power the next generation of AI-driven growth.

Speaker #1: Second, we are delivering strong top-line growth in equipment and services. As we execute on our backlog and control our supply chain and operations, again, the demanding growth plan.

Speaker #3: Please move to page number 12. The highlight here this quarter was a 1.1-gigawatt order for a mega-scale data center customer—one of the largest orders in INNIO's history.

Speaker #1: Third, the success of our multi-year capacity expansion plan across the US and Europe is already visible today as we continue to increase our output.

Speaker #3: We outlined in today's press release that more than 200 Jenbacher J624 engines are expected to provide resilient, scalable, behind-the-meter prime power. This order is powerful proof of our technology.

Speaker #1: The expansion is financed from our own operating cash flows. And fourth, we are initiating full year '26 guidance with adjusted EBITDA of 720 to 740 million dollars, an increase of 33% versus '25.

Speaker #3: And our ability to execute at scale is further reinforcing INNIO's position as a key enabler of AI infrastructure, with a diversified and growing customer base.

Speaker #1: In summary, we are pleased with our second quarter performance. Accelerating demand and disciplined execution, both reinforce our confidence in our full-year guidance and our mid-term ambition.

Speaker #3: And the momentum is clearly reflected in our results. With that, let me hand over to Dennis to walk through the financials.

Speaker #1: Let me now walk you through the details, starting with the financial snapshot on the next slide. One table, five lines. And each line tells the same story of accelerating momentum.

Speaker #1: Thank you, Olaf, and hello everybody from my side as well. It is a great pleasure to present INNIO's financial results to you for the first time as a public company.

Speaker #1: I will take you through our second-quarter performance, the visibility we have on the business ahead, our capacity expansion, and, at the end, our outlook for the full year.

Speaker #1: Starting at the top with equipment order intake. 2.3 billion dollars in the second quarter, up 316% year-over-year. And I would like to highlight one number in particular.

Speaker #1: Let me start with the four key messages of this quarter. First, demand is accelerating across all of our business lines. Second quarter equipment order intake was up more than 300% year over year.

Speaker #1: With 3.9 billion of order intake in the first six months, we have already booked more orders in the first half of '26 than in the entire year of '25.

Speaker #1: Our equipment book to bill stands at 4.4 for the first six months. Demand is strong, and our growing capacity allows us to convert the demand into firm orders.

Speaker #1: Second, we are delivering strong top-line growth in equipment and services as we execute on our backlog and control our supply chain and operations against the demanding growth plan.

Speaker #1: Second line. Equipment order backlog. 6.6 billion dollars up 279% year-over-year. This backlog provides multi-year visibility for our equipment business. And because of our service flywheel that Olaf described earlier, we believe it can lock in decades of high margin services revenue on top.

Speaker #1: Third, the success of our multi-year capacity expansion plan across the US and Europe is already visible today, as we continue to increase our output.

Speaker #1: The expansion is financed from our own operating cash flows. And fourth, we are initiating full-year '26 guidance with adjusted EBITDA of $720 to $740 million, an increase of 33% versus '25.

Speaker #1: The growth we are seeing in equipment today translates into our services business of tomorrow. Third line. Total revenue. 938 million dollars in the quarter, up 42% year-over-year.

Speaker #1: In summary, we are pleased with our second-quarter performance. Accelerating demand and disciplined execution both reinforce our confidence in our full-year guidance and our mid-term ambition.

Speaker #1: Equipment revenue growth shows that we are executing successfully against our order book, while services continue to grow on the back of our expanding installed base and pricing.

Speaker #1: Let me now walk you through the details, starting with the financial snapshot on the next slide. One table, five lines. And each line tells the same story of accelerating momentum.

Speaker #1: Fourth line. Adjusted EBITDA. 172 million dollars up 20% year-over-year. Here, I would like to spend some time on the EBITDA margin, which is notably below prior year.

Speaker #1: Starting at the top with equipment order intake: $2.3 billion in the second quarter, up 316% year over year. And I would like to highlight one number in particular.

Speaker #1: Consistent with our expectations, and communication in the past, this is driven by a few deliberate factors. The natural mix shift toward equipment based on our order intake, some changes in product scope with a higher share of containerized solutions, and front-loaded investments and ramp-up costs related to our capacity expansion.

Speaker #1: With $3.9 billion of order intake in the first six months, we have already booked more orders in the first half of '26 than in the entire year of '25.

Speaker #1: Our equipment book-to-bill stands at 4.4 for the first six months. Demand is strong, and our growing capacity allows us to convert that demand into firm orders.

Speaker #1: Margin is in line with Q1 '26 and ahead of our planned path for the year. Based on operating leverage and pricing dynamics in our backlog, we are confident to deliver on our full-year guidance.

Speaker #1: Second line. Equipment order backlog: $6.6 billion, up 279% year over year. This backlog provides multi-year visibility for our equipment business. And because of our service flywheel that Olaf described earlier, we believe it can lock in decades of high-margin services revenue on top.

Speaker #1: Fifth line. Free cash flow. 205 million dollars in the quarter, up 352% year-over-year, fueled by strong operating cash flows. As we pointed out in the past, INNIO's business model is supported by a production cycle in which customer-in-down payments keep equipment manufacturing cash positive, from order to commissioning.

Speaker #1: The growth we are seeing in equipment today translates into our services business of tomorrow. Third line. Total revenue. 938 million dollars in the quarter, up 42% year over year.

Speaker #1: Since Olaf touched on the Q2 order dynamics before, let me give you some color on the overall backlog and visibility. Combining our equipment order backlog with our slot reservations, we have more than 15 gigawatts of committed business as of Q2 '26.

Speaker #1: Equipment revenue growth shows that we are executing successfully against our order book, while services continue to grow on the back of our expanding installed base and pricing.

Speaker #1: Fourth line: Adjusted EBITDA, $172 million, up 20% year over year. Here, I would like to spend some time on the EBITDA margin, which is notably below prior year.

Speaker #1: This is more than four times the power we delivered over the last 12 months. When we say slot reservations, these are production slot commitments.

Speaker #1: They are non-tradable, and they typically carry a non-refundable down payment. We are particularly excited about this metric for three reasons. First, approximately 64% of the more than 15 gigawatts relates to behind-the-meeter data center solutions.

Speaker #1: Consistent with our expectations and communication in the past, this is driven by a few deliberate factors. The natural mix shift toward equipment based on our order intake, some changes in product scope with a higher share of containerized solutions, and front-loaded investments and ramp-up costs related to our capacity expansion.

Speaker #1: And within data center, around 94% relates to prime power. The substantial majority of our data center business is prime power. We believe INNIO Engines are solidifying their reputations as the power generation technology of choice when it comes to powering data centering in behind-the-meeter setting.

Speaker #1: Margin is in line with Q1 '26 and ahead of our planned path for the year. Based on operating leverage and pricing dynamics in our backlog, we are confident we can deliver on our full-year guidance.

Speaker #1: Second, the expected service intensity embedded in this backlog is substantially above the average of our existing installed base. Our data center customers rely on our engines, as they primarily power source and run these assets hard.

Speaker #1: Fifth line. Free cash flow: $205 million in the quarter, up 352% year over year, fueled by strong operating cash flows. As we pointed out in the past, INNIO's business model is supported by a production cycle in which customer down payments keep equipment manufacturing cash positive from order to commissioning.

Speaker #1: In other words, we believe every megawatt we install from this backlog carries more service content over its life, than our historical fleet average. Raising the long-term earnings power of the flywheel.

Speaker #1: Since Olaf touched on the Q2 order dynamics before, let me give you some color on the overall backlog and visibility. Combining our equipment order backlog with our slot reservations, we have more than 15 gigawatts of committed business as of Q2 ‘26.

Speaker #1: And third, quality. The pricing on our recent order bookings shows a positive margin trend compared to our historical average. So this is not growth at any price.

Speaker #1: As the backlog growth, we expect the embedded profitability to grow with it. The takeaway is simple. More than 15 gigawatts of committed business gives us multi-year revenue visibility and feeds a growing higher intensity service base and confidence in our long-term ambitions.

Speaker #1: This is more than four times the power we delivered over the last 12 months. When we say slot reservations, these are production slot commitments.

Speaker #1: They are non-tradable, and they typically carry a non-refundable down payment. We are particularly excited about this metric for three reasons. First, approximately 64% of the more than 15 gigawatts relates to behind-the-meter data center solutions.

Speaker #1: This demand raises an obvious question. Can we build it? The answer is yes. Our self-funded capacity expansion is well underway, giving us the confidence to continue driving order intake and expanding our backlog.

Speaker #1: And within data center, around 94% relates to prime power. The substantial majority of our data center business is prime power. We believe INNIO Engines are solidifying their reputations as the power generation technology of choice when it comes to powering data centering in behind-the-meeter setting.

Speaker #1: Importantly, we are enabling this expansion through debottlenecking and doubling down on our existing facilities. A brownfield approach not greenfield. Which we believe meaningfully reduces execution risk.

Speaker #1: Second, the expected service intensity embedded in this backlog is substantially above the average of our existing installed base. Our data center customers rely on our engines, as they primarily power source and run these assets hard.

Speaker #1: Let me make this more tangible with a few numbers. We are on our way to roughly double our output in the coming years, and to approximately triple our total production capacity by 2030, from 3.5 gigawatts per year in '25 to roughly 10 gigawatts per year.

Speaker #1: In other words, we believe every megawatt we install from this backlog carries more service content over its life than our historical fleet average, raising the long-term earnings power of the flywheel.

Speaker #1: We feel very good about our progress today, as we are ramping our production output with gigawatts delivered in Q2 already at 1.3 times of prior year.

Speaker #1: As new capacity comes online, we expect to release incremental production slots, and each one of these can convert directly into additional order intake, giving demand has recently been exceeding our ability to take orders.

Speaker #1: And third, quality. The pricing on our recent order bookings shows a positive margin trend compared to our historical average. So this is not growth at any price.

Speaker #1: As the backlog growth, we expect the embedded profitability to grow with it. The takeaway is simple. More than 15 gigawatts of committed business gives us multi-year revenue visibility and feeds a growing higher intensity service base and confidence in our long-term ambitions.

Speaker #1: Where is this happening? First, at our Yenbach campus in Austria, we are constructing a new state-of-the-art assembly line which exists with debottlenecking the existing lines and can significantly increase throughput for our data center products.

Speaker #1: In parallel, we are investing substantially in additional machining capacity including our new site in Hull, just a few minutes from Yenbach. Second, in the US.

Speaker #1: This demand raises an obvious question: Can we build it? The answer is yes. Our self-funded capacity expansion is well underway, giving us the confidence to continue driving order intake and expanding our backlog.

Speaker #1: Our new sites in Trenton, New Jersey, and Waller, Texas, are dedicated to containerization and packaging. In addition to increasing capacity, these sites offer proximity to key suppliers and customers, thereby shortening lead times and reducing logistics costs.

Speaker #1: Importantly, we are enabling this expansion through debottlenecking and doubling down on our existing facilities. A brownfield approach not greenfield. Which we believe meaningfully reduces execution risk.

Speaker #1: And third, in Waukesha, Wisconsin, and Welland, Ontario. We continue to expand machining and assembling capabilities driving another step change in capacity. Two aspects about our growth plan are important to understand.

Speaker #1: Let me make this more tangible with a few numbers. We are on our way to roughly double our output in the coming years, and to approximately triple our total production capacity by 2030, from 3.5 gigawatts per year in '25 to roughly 10 gigawatts per year.

Speaker #1: The expansion is financed from our own operating cash flows, supported by a production cycle in which customers down payments keep equipment manufacturing cash positive from order to commissioning.

Speaker #1: We feel very good about our progress today, as we are ramping our production output with gigawatts delivered in Q2 already at 1.3 times of prior year.

Speaker #1: Secondly, our investment yield attractive ROIs and paybacks, which means that our substantial backlog and slot reservations visibility can substantially de-risk our gross investments. Now, let's take a deeper look into our Q2 equipment order intake.

Speaker #1: As new capacity comes online, we expect to release incremental production slots, and each one of these can convert directly into additional order intake, given demand has recently been exceeding our ability to take orders.

Speaker #1: Where is this happening? First, at our Yenbach campus in Austria, we are constructing a new state-of-the-art assembly line, which, together with debottlenecking the existing lines, can significantly increase throughput for our data center products.

Speaker #1: Two charts, one message. On the left, the composition of our order intake. The growth is broad-based. In the second quarter, data center contributed close to 1.5 billion dollars, power solutions 546 million, and compression 281 million.

Speaker #1: In parallel, we are investing substantially in additional machining capacity, including our new site in Hull, just a few minutes from Jenbach. Second, in the US.

Speaker #1: Each business line growing strongly year over year. And all of them, well aligned with the market trends, Olaf outlined earlier. So while data centers are the largest driver, this order momentum is more than a data center story.

Speaker #1: Our new sites in Trenton, New Jersey, and Waller, Texas, are dedicated to containerization and packaging. In addition to increasing capacity, these sites offer proximity to key suppliers and customers, thereby shortening lead times and reducing logistics costs.

Speaker #1: Our equipment book to bill stands at 4.4 for the first six months. On the right, our equipment order backlog. Growing from 3.6 billion dollars end of '25 to 6.6 billion as of June 30, '26, representing an 83% increase just in H1 '26.

Speaker #1: And third, in Waukesha, Wisconsin, and Welland, Ontario, we continue to expand machining and assembling capabilities, driving another step change in capacity. Two aspects about our growth plan are important to understand.

Speaker #1: Compared to prior year's quarter, the increase is even significantly higher. At 279%, with sequential growth in every single quarter. As mentioned before, we generally observe that new orders carry a creative pricing and higher service intensity compared to our average past business.

Speaker #1: The expansion is financed from our own operating cash flows, supported by a production cycle in which customers down payments keep equipment manufacturing cash positive from order to commissioning.

Speaker #1: Secondly, our investments yield attractive ROIs and paybacks, which means that our substantial backlog and slot reservation visibility can substantially de-risk our gross investments. Now, let's take a deeper look into our Q2 equipment order intake.

Speaker #1: Our growing backlog and book to bill ratio show the continuing acceleration of our business with increasing visibility for the years ahead. Our proactive investments and flexible supply chain are already delivering strong top-line growth against this demand.

Speaker #1: Two charts, one message. On the left, the composition of our order intake. The growth is broad-based. In the second quarter, data center contributed close to 1.5 billion dollars, power solutions 546 million, and compression 281 million.

Speaker #1: At the same time, and as we communicated in the past, we continue to invest which is temporarily reflected in our relative margins. On the left, total revenue.

Speaker #1: 938 million dollars in the quarter, up 42% year over year with attractive growth on both equipment, up 61%, and services, up 21%. For this first half, revenues reached 1.6 billion dollars, up 39%.

Speaker #1: Each business line is growing strongly year over year, and all of them are well aligned with the market trends Olaf outlined earlier. So, while data centers are the largest driver, this order momentum is more than just a data center story.

Speaker #1: Our equipment book-to-bill stands at 4.4 for the first six months. On the right, our equipment order backlog, growing from $3.6 billion at the end of '25 to $6.6 billion as of June 30, '26, representing an 83% increase just in H1 '26.

Speaker #1: On the right, adjusted segment EBITDA, 188 million dollars, up 24% year over year, and to 20% segment margin. I commented on the drivers of the temporary margin compression earlier in this presentation, as mentioned, this development is in line with our expectations and supports our full-year guidance and continued margin improvement.

Speaker #1: Compared to the prior year's quarter, the increase is even significantly higher—at 279%—with sequential growth in every single quarter. As mentioned before, we generally observe that new orders carry a creative pricing and higher service intensity compared to our average past business.

Speaker #1: I'm now going to step through the segments on this and the following page. Equipment revenue reaches 569 million dollars in the quarter, up 61% year over year.

Speaker #1: Our growing backlog and book-to-bill ratio show the continuing acceleration of our business, with increasing visibility for the years ahead. Our proactive investments and flexible supply chain are already delivering strong top-line growth against this demand.

Speaker #1: We are delivering against our order book which includes large-scale data center projects. In Q2 '26, data center revenue nearly doubled to 232 million dollars.

Speaker #1: Power solutions grew to 274 million, and compression contributed 63 million. This growth crossed all business lines, demonstrates the execution strength of our teams, our production sites, and our supply chain.

Speaker #1: At the same time, and as we communicated in the past, we continue to invest which is temporarily reflected in our relative margins. On the left, total revenue.

Speaker #1: On profitability, the segment margin came in at 14% compared to 19% in the prior year quarter. This reflects the self-funded growth investments that are enabling the substantial increase in order intake, you saw earlier, as well as the increase in order scope.

Speaker #1: $938 million in the quarter, up 42% year over year, with attractive growth in both equipment, up 61%, and services, up 21%. For the first half, revenues reached $1.6 billion, up 39%.

Speaker #1: This expanded scope for the early data center products was priced with a lower average margin than our core business. Two points that are important here.

Speaker #1: On the right, adjusted segment EBITDA, 188 million dollars up 24% year over year and to 20% segment margin. I commented on the drivers of the temporary margin compression earlier in this presentation, as mentioned, this development is in line with our expectations and supports our full-year guidance and continued margin improvement.

Speaker #1: First, the equipment segment margin already recovered meaningfully, from the first quarter, and secondly, we are expecting to continue to grow equipment segment margin to high teens in Q4 based on operating leverage and backlog pricing dynamics.

Speaker #1: Turning to services, our quarterly trading nicely shows that our flywheel-based business model delivers, and our existing store base generates growth at attractive margins. Services revenue grew 21% year over year to 368 million dollars, and 21% for the first half of the year.

Speaker #1: I'm now going to step through the segments on this and the following page. Equipment revenue reaches 569 million dollars in the quarter, up 61% year over year.

Speaker #1: We are delivering against our order book which includes large-scale data center projects. In Q2 '26, data center revenue nearly doubled to 232 million dollars.

Speaker #1: As you will recall, our services are non-discretionary, recurring businesses, based on where parts overhauls and upgrades. With a healthy share of long-term service contracts, our installed base gives in you a stable earnings foundation which compounds over time.

Speaker #1: Power Solutions grew to $274 million, and Compression contributed $63 million. This growth across all business lines demonstrates the execution strength of our teams, our production sites, and our supply chain.

Speaker #1: For the quarter, services adjusted segment EBITDA margin came in at 30%. Similar to equipment, we made temporary growth-related investments in parts capacity and in our service force, which were largely mitigated by margin accretive mix of parts versus labor.

Speaker #1: On profitability, the segment margin came in at 14%, compared to 19% in the prior-year quarter. This reflects the self-funded growth investments that are enabling the substantial increase in order intake you saw earlier, as well as the increase in order scope.

Speaker #1: For the first half, the service margin stands at 31%. We showed you earlier how our equipment adjusted EBITDA generally carries 2.5 times life cycle services adjusted EBITDA.

Speaker #1: This expanded scope for the early data center products was priced with a lower average margin than our core business. Two points that are important here.

Speaker #1: First, the equipment segment margin already recovered meaningfully from the first quarter, and secondly, we are expecting to continue to grow equipment segment margin to high teens in Q4 based on operating leverage and backlog pricing dynamics.

Speaker #1: Based on everything we see in our backlog and order pipeline, we feel confident to deliver all improve on this relationship for our business. This brings me to our full-year guidance.

Speaker #1: We are initiating today for fiscal year '26. On revenue, we expect 3.8 to 3.9 billion dollars for the full year. Growth of approximately 46% at the midpoint versus '25.

Speaker #1: Turning to Services, our quarterly trading clearly shows that our flywheel-based business model delivers, and our existing installed base generates growth at attractive margins. Services revenue grew 21% year over year to $368 million, and 21% for the first half of the year.

Speaker #1: Within that, we expect the mix to continue shifting towards equipment at around 65% of revenue, as we deliver our booked business in line with available capacity.

Speaker #1: As you will recall, our services are non-discretionary, recurring businesses based on wear parts, overhauls, and upgrades. With a healthy share of long-term service contracts, our installed base gives a foundation which compounds over time.

Speaker #1: Revenue growth is expected to further accelerate in the second half. On profitability, we expect adjusted EBITDA to be 720 to 740 million dollars. An increase of roughly one-third versus the 549 million dollars we delivered in '25, at a group margin of approximately 19%.

Speaker #1: For the quarter, services adjusted segment EBITDA margin came in at 30%. Similar to equipment, we made temporary growth-related investments in parts capacity and in our service force, which were largely mitigated by margin and a creative mix of parts versus labor.

Speaker #1: To help you with the quarterly phasing, we expect the fourth quarter to be stronger than the third, driven by shipment cadence against the backlog and the ramp-up of our added capacity.

Speaker #1: For the first half, the service margin stands at 31%. We showed you earlier how our equipment adjusted EBITDA generally carries 2.5 times life cycle services adjusted EBITDA.

Speaker #1: Adjusted EBITDA margins are expected to increase as the equipment business stands to benefit from improved operating leverage and the conversion of our margin-improving backlog, taking equipment segment adjusted EBITDA margins to an expected exit rate in the high teens by the year end.

Speaker #1: Based on everything we see in our backlog and order pipeline, we feel confident to deliver and improve on this relationship for our business. This brings me to our full-year guidance.

Speaker #1: In summary, accelerating revenue growth combined with an improving margin profile delivered by a self-funded growth model. And with that, back to you, Olaf. Thank you, Dennis.

Speaker #1: We are initiating today for fiscal year '26. On revenue, we expect 3.8 to 3.9 billion dollars for the full year. Growth of approximately 46% at the midpoint versus '25.

Speaker #1: Let me close by summarizing the key takeaways. Please turn to page 24. First, demand is strong and broad-based across our business. Driven by the long-term trends of AI, data centers, and decentralized power generation, providing high visibility into our revenue growth through 2030 and beyond.

Speaker #1: Within that, we expect the mix to continue shifting towards equipment at around 65% of revenue as we deliver our booked business in line with available capacity.

Speaker #1: Revenue growth is expected to further accelerate in the second half. On profitability, we expect adjusted EBITDA to be $720 to $740 million, one-third versus the $549 million we delivered in '25, at the group margin of approximately 19%.

Speaker #1: Second, every engine we deliver today expand our installed base and fuels our long-term high-margin service business. Third, to capture this opportunity, we continue to invest in our people, technology, and capacity.

Speaker #1: We are working towards strengthening our technology leadership. We are expanding capacity in a target and returns-focused manner. And building the scale of our North American services offering to support future growth.

Speaker #1: To help you with the quarterly phasing, we expect the fourth quarter to be stronger than the third, driven by shipment cadence against the backlog and the ramp-up of our added capacity.

Speaker #1: And finally, none of our success would be possible without the outstanding in your team. I would like to thank our more than 5,000 employees around the world for the dedication, commitment, and hard work.

Speaker #1: Adjusted EBITDA margins are expected to increase as the equipment business stands to benefit from improved operating leverage and the conversion of our margin improving backlog, taking equipment segment adjusted EBITDA margins to an expected exit rate in the high teams by the year end.

Speaker #1: The opportunities ahead of us are significant. And we will remain focused on creating long-term value for our stakeholders. And with that, I'll hand over to Tim.

Speaker #1: In summary, accelerating revenue growth, combined with an improving margin profile delivered by a self-funded growth model. And with that, back to you, Olaf. Thank you, Dennis.

Speaker #2: Before we open the line, I ask everyone to ask just one question so we can get as many people as possible. Operator, please open the line for questions.

Speaker #3: Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced.

Speaker #1: Let me close by summarizing the key takeaways. Please turn to page 24. First, demand is strong and broad-based across our business. Driven by the long-term trends of AI, data centers, and decentralized power generation, providing high visibility into our revenue growth through 2030 and beyond.

Speaker #3: To withdraw a question, please press star 1 and 1 again. Please then bow or compile the Q&A roster. This will take a few moments.

Speaker #3: And now we're going to take our first question, and it comes from line of David Arcaro from Morgan Stanley. Your line is open. Please ask your question.

Speaker #1: Second, every engine we deliver today expands our installed base and fuels our long-term, high-margin service business. Third, to capture this opportunity, we continue to invest in our people, technology, and capacity.

Speaker #4: Oh, hi. Thanks so much. And congratulations on the first quarter here being public. I was wondering if you could comment on maybe first on a pricing trends that you're seeing especially on new slot reservations and just generally pricing trends in the market for engines.

Speaker #1: We are working towards strengthening our technology leadership. We are expanding capacity in a targeted and returns-focused manner, and building the scale of our North American services offering to support future growth.

Speaker #5: Is this your first question or you would like to have another question?

Speaker #4: Let's see. I guess that was my first question. If I were to throw another one in there, I guess I was also curious if when you consider the slot reservations that you have, how far out are you reserved at this point?

Speaker #1: And finally, none of our success would be possible without the outstanding people in our team. I would like to thank our more than 5,000 employees around the world for their dedication, commitment, and hard work.

Speaker #4: Is there any capacity available in 2028? Thank you.

Speaker #1: The opportunities ahead of us are significant. And we will remain focused on creating long-term value for our stakeholders. And with that, I'll hand over to Tim.

Speaker #5: Okay. Thanks, David. Yeah, nice to hear you again. Hope to see you in New York. Coming to your first question, the pricing trend is clearly still strong.

Speaker #5: That means the demand is high. If the demand is high and delivery is limited, you are always in a good position to do something on prices.

Speaker #2: Before we open the line, I ask everyone to ask just one question so we can get as many people as possible. Operator, please open the line for questions.

Speaker #5: So I do not see any signals going down on price trend. And on the delivery time, we are talking about today, we live on 29 and 30.

Speaker #3: Thank you. Dear participants, as a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced.

Speaker #3: To withdraw a question, please press star 1 and 1 again. Please then bubble compile the Q&A roster. This will take a few moments. And now we're going to take our first question, and it comes from line of David Arcaro from Morgan Stanley.

Speaker #5: We are more or less sold out for '26, '27. And if customer asking us, we have many project, they are talking about 30 and 31.

Speaker #3: Your line is open. Please ask your question.

Speaker #4: Oh, hi. Thanks so much, and congratulations on the first quarter here being public. I was wondering if you could comment, maybe first, on the pricing trends that you're seeing, especially on new slot reservations, and just generally, pricing trends in the market for engines.

Speaker #5: So for example, the project what we announced this morning is delivery till '31. Any additional things?

Speaker #4: Yeah. Maybe just to add on the slot reservations, because you asked how long we are sold out. And with that, once we use this powerful tool to secure that the customers are buying from us, we don't allow to trade the slot reservations.

Speaker #4: So they are only dedicated to a single project. And as Olaf mentioned, the slot reservation reaches out now till 2030. so much.

Speaker #2: Is this your first question, or would you like to have another question?

Speaker #4: Let's see. I guess that was my first question. If I were to throw another one in there, I guess I was also curious—when you consider the slot reservations that you have, how far out are you reserved at this point?

Speaker #5: Thank you, David.

Speaker #3: Thank you. Now we're going to take our next question. And the next question comes line of Joe Richie from Goldman Sachs. Your line is open.

Speaker #4: Is there any capacity available in 2028? Thank you.

Speaker #2: Okay, thanks, David. Yeah, nice to hear you again. Hope to see you in New York. Coming to your first question, the pricing trend is clearly still strong.

Speaker #3: Please ask your question.

Speaker #4: Hey, guys. Good morning. And again, congratulations on your first public company earnings call. So I wanted to ask about the order trajectory. So clearly, the orders were robust this quarter.

Speaker #2: That means the demand is high. If the demand is high and delivery is limited, you are always in a good position to do something on prices.

Speaker #4: I know that orders can be lumpy. I'm just curious, as you kind of take a look at your pipeline for the second half of the year, like maybe provide a little bit of color on what the pipeline looks like.

Speaker #2: So I do not see any signals going down on the price trend. And on the delivery time, we are talking about today on the 29th and 30th.

Speaker #4: And then for the one really large order that you booked in data centers this quarter, I was curious, like what portion of the billion and a half that you booked this quarter from an order standpoint, was that one large order?

Speaker #2: We are more or less sold out for '26, '27. And if customers are asking us, we have many projects—they are talking about '30 and '31.

Speaker #5: Hi, Joe. Yeah, good question. Look, I think we are really remain very confident that our order backlog at the year end to be higher than it is today.

Speaker #2: So for example, the project that we announced this morning is delivery until the 31st. Any additional things?

Speaker #5: So looking ahead, continue to expect to see strengths in the H2 given we see very environment. And we expect that our order backlog to increase further.

Speaker #4: Yeah, maybe just to add on the slot reservations, because you asked how long we are sold out. And with that, once we use the tool to secure that the customers are buying from us, we don't allow trading of the slot reservations.

Speaker #5: So there is no decline or weaknesses in the pipeline. So I'm looking now in the eyes of Martin, and he is saying, no, no, no, it really is very, very strong.

Speaker #4: So they are only dedicated to a single project. And as Olaf mentioned, the slot reservation now extends out until 2030. Great. Thank you so much.

Speaker #5: And we are talking together about so many projects. So I don't see it. And maybe we see 1.1 gigawatt. Would you like to add on these?

Speaker #2: Thank you, David.

Speaker #3: Thank you. Now we're going to take our next question. The next question comes from Joe Richie at Goldman Sachs. Your line is open.

Speaker #4: The portion of it is one third, definitely below one third. Even below 30%. Some of the engines soldered is 1.1 gigawatt is containerized. So with more scope, some of it is for a powerhouse installation.

Speaker #3: Please ask your question.

Speaker #4: Hey, guys. Good morning, and again, congratulations on your first public company earnings call. I wanted to ask about the order trajectory. Clearly, the orders were robust this quarter.

Speaker #4: So with a little bit less scope, but this was just one very big deal we had as well. Many, many other deals, bigger deals, smaller deals, worldwide.

Speaker #4: I know that orders can be lumpy. I'm just curious, as you kind of take a look at your pipeline for the second half of the year, if you could maybe provide a little bit of color on what the pipeline looks like.

Speaker #4: And as Olaf said, the order robustness is fantastic, right? So we still have many requests for projects which we are not able to fulfill because of capacity.

Speaker #4: And then for the one really large order that you booked in data centers this quarter, I was curious, us, like what portion of the billion and a half that you booked this quarter from an order standpoint, was that one large order?

Speaker #4: So I don't see at all that the market demand is going down for us, right? So this is in a fantastic we are really in a fantastic moment.

Speaker #2: Hi, Joe. Yeah, good question. Look, I think we really remain very confident that our order backlog at year-end will be higher than it is today.

Speaker #4: Okay, great. Thank you, guys. Thank you.

Speaker #2: So looking ahead, continue to expect to see strength in the H2 given we see very environment. And we expect our order backlog to increase further.

Speaker #3: Thank you so much. And now we're going to take our next question. And the next question comes line of Nicole de Blas from Deutsche Bank.

Speaker #3: Your line is open. Please ask your question.

Speaker #2: Yeah, thanks, guys. Good morning. And I'll echo my congratulations on the first big quarterly results. So maybe first, just on capacity expansion and update there, maybe double-click on how much progress you've made towards the plan that you laid out.

Speaker #2: So, there is no decline or weakness in the pipeline. I'm looking now at Martin, and he is saying, no, no, no, it really is very, very strong.

Speaker #2: And we are talking together about so many projects, so I don't see it. And maybe we see 1.1 gigawatts. Would you like to add on these?

Speaker #2: And then with the orders being much better than expected and the really robust commentary on backlog and pipeline, I'm curious if 10 gigawatts is enough.

Speaker #2: And then second question, on the 1.1 gigawatt data center order, I'm just curious if you see more orders of this magnitude in your pipeline.

Speaker #4: The portion of it is one third, definitely below one third— even below 30%. Some of the engines sold are 1.1 gigawatt and containerized. So, with more scope, some of it is for a powerhouse installation.

Speaker #2: Thank you.

Speaker #5: Okay. Nicole, thanks for asking. Dennis speaking. Starting with the question on capacity. I think overall, the capacity expansion is progressing on plan. Our scale up from 3.5 to 4.7 based on our site in Yermak and then up to 10 based on further ramp up from 28 onwards in Waukesher is on track.

Speaker #4: So with a little bit less scope. But this was just one very big deal. We had as well many, many other deals, bigger deals, smaller deals, worldwide.

Speaker #4: And as Olaf said, the order robustness is fantastic, right? So, we still have many requests for projects which we are not able to fulfill because of capacity.

Speaker #5: We don't see any stumbling blocks from today's perspective, and we are executing on plan and the project and both projects. I actually fully on track.

Speaker #4: So, I don't see at all that the market demand is going down for us, right? In fact, we are really in a fantastic moment.

Speaker #5: The one is delivering already right now. We are going to be ahead of 3.5, obviously, this year, and the other project in Waukesher is also on track.

Speaker #5: On your question regarding 10 gigawatts, this is something that we as a management team are reviewing on an ongoing basis on a quarter by quarter, month by month basis.

Speaker #4: Okay, great. Thank you, guys. Thank you.

Speaker #3: Thank you so much. And now we're going to take our next question. The next question comes from the line of Nicole de Blas from Deutsche Bank.

Speaker #5: From today's perspective, we are fully focused to execute on the 10 gigawatts. But we'll obviously carefully review over time. And we'll take respective decisions on that one.

Speaker #3: Your line is open. Please ask your question.

Speaker #5: Yeah, thanks, guys. Good morning. And I'll echo my congratulations on the first big quarterly results. So maybe first, just on capacity expansion and update there, maybe double click on how much progress you've made towards the plan that you laid out.

Speaker #5: On your second question, probably. I can do it. The 1.1 gigawatt, you know that we just announced today, look, maybe you have seen that we announced a RELCO one with 1.25 gigawatt.

Speaker #5: And then, with the orders being much better than expected and the really robust commentary on backlog and pipeline, I'm curious if 10 gigawatts is enough.

Speaker #5: It's a little bit longer run project. So we have some of them. We just signed, and I think that's in the process as well.

Speaker #5: And then second question, on the 1.1 gigawatt data center order, I'm just curious if you see more orders of this magnitude in your pipeline.

Speaker #5: So that we're working with AGRECO, a long-term contract delivering engines type of. So they are many of these coming up. So from my point of view, as a strong demand and as Martin said, we don't see any weaknesses in this size of 1.1 gigawatt.

Speaker #5: Thank you.

Speaker #2: Asking, Dennis speaking. Starting with the question on capacity. I think overall, the capacity expansion is progressing on plan. Our scale-up from 3.5 to 4.7, based on our site in Jenbach, and then up to 10, based on further ramp-up from 2028 onward in Waukesha, is on track.

Speaker #5: It's not the exception. It's now, I would say, common. Yeah. Common size.

Speaker #3: Thank you.

Speaker #5: Thanks, Nicole.

Speaker #2: We don't see any stumbling blocks from today's perspective, and we are executing on plan. The project, and both projects, are actually fully on track.

Speaker #3: Now we're going to take our next question. And the question comes line of Amit Mehrotra from UBS. Your line is open. Please ask your question.

Speaker #2: The one is delivering already right now. We are going to be ahead of 3.5, obviously, this year, and the other project in Warcacher is also on track.

Speaker #6: Thank you. Morning, afternoon, everybody. I wanted I don't know if you guys disclosed an actual data center revenue number for the quarter. I think it was about 100 million last quarter.

Speaker #2: On your question regarding 10 gigawatts, this is something that we as a management team are reviewing on an ongoing basis on a quarter by quarter, month by month basis.

Speaker #6: Can you just give us that number, Dennis, and I assume the margin inflection as we progress through this year to the high teens and equipment has to do with that revenue scaling.

Speaker #2: From today's perspective, we are fully focused on executing on the 10 gigawatts. But we'll obviously carefully review over time and will make respective decisions on that one.

Speaker #6: So just give us a sense of where we were in data center revenue, where we are, and where we expect to go and sort of your confidence in executing on that ramp.

Speaker #6: And then related to that, Martin, there's a lot of questions about sustainability of demand. And concerns that people have around any potential cliff in demand for anything related to data centers.

Speaker #2: On your second question, probably I can do it. The 1.1 gigawatt—you know that we just announced today. Look, maybe you have seen that we announced a RELCO one with 1.25 gigawatt.

Speaker #6: Obviously, with your order number today, that is a strong counterpoint against that. But maybe, Martin, talk about when you talk to your data center customers, hyperscaler customers, or even the energy as a service customers, how confident are they that this level of ordering and spending is sustainable, not just in 2030, but beyond?

Speaker #2: It's a little bit longer-run project. So, we have some of them we just signed, and I think that's in the process as well. We're working with Aggreko on a long-term contract, delivering engines, that type of thing.

Speaker #2: So there are many of these coming up. From my point of view, there is strong demand, and as Martin said, we don't see any weaknesses in this space.

Speaker #6: Just give us a flavor for those types of conversations. Thank you.

Speaker #5: Okay. Amit, thanks for your question. And good talking again. Regarding the data center revenue, yes, we are disclosing it. And the number for the second quarter stands at 232 million dollars.

Speaker #2: A size of 1.1 gigawatts is not the exception. It's now, I would say, common—yeah, a common size.

Speaker #3: Thank you.

Speaker #5: So first quarter has been 107, second quarter has been 232. And that's the trajectory that we are seeing. Your question also on the connect to margin.

Speaker #2: Thanks, Nicole.

Speaker #3: Now we're going to take our next question. And the question comes line of Amit Mehrotra from UBS. Your line is open. Please ask your question.

Speaker #5: And yes, the by slightly ahead of 7% margin for all of the equipment segment in the first quarter now is improved to 14. I wanted that we are seeing a further trend up.

Speaker #6: Thank you. Morning, afternoon, everybody. I wanted, I don't know if you guys disclosed an actual data center revenue number for the quarter. I think it was about 100 million last quarter.

Speaker #6: Can you just give us that number, Dennis? And I assume the margin inflection as we progress through this year to the high teens in Equipment has to do with that revenue scaling.

Speaker #5: The year 26, we should see the latest deals getting out on average at high teens. So the trajectory is upwards. This is driven by us working through the backlog.

Speaker #6: So, just give us a sense of where we were in data center revenue, where we are, and where we expect to go, and sort of your confidence in executing on that ramp.

Speaker #6: And then, related to that, Martin, there are a lot of questions about the sustainability of demand and concerns people have around any potential cliff in demand for anything related to data centers.

Speaker #5: You could see the orders step by step in terms of margins. So there is the look at what is driving really the upturn it is mainly driven by the data center revenues now flowing through the funnel.

Speaker #6: Obviously, with your order number today, that is a strong counterpoint against that. But maybe, Martin, talk about when you talk to your data center customers, hyperscaler customers, or even the energy as a service customers, how confident are they that this level of ordering and spending is sustainable, not just in 2030, but beyond?

Speaker #5: You're absolutely right on that one. And Amit, let Martin and me, we will answer these questions. As I said, we have a strong sustainable demand project.

Speaker #5: Looking about things, we have these unique technology in the J624. So if we talk to the energy as a service company, the rental companies, and maybe then Martin, please you can talk about every single day you have calls and MS and WhatsApp, what we can deliver.

Speaker #6: Just give us a flavor for those types of conversations. Thank you.

Speaker #2: Okay, Amit, thanks for your question, and good talking again. Regarding the data center revenue, yes, we are disclosing it, and the number for the second quarter stands at $232 million.

Speaker #5: Maybe talk about the rental company and energy as a service company with Amit just asking. It's a asking for that.

Speaker #2: So, first quarter has been 107; second quarter has been 232. And that's the trajectory that we are seeing. Your question also on the connect to margins.

Speaker #2: Yes, Amit. We hear as well that there is some noise in the market about how sustainable it is. The only thing I can tell you on INNIO and on the demand I see for our product, it's huge.

Speaker #2: And yes, the by slightly ahead of 7% margin for all of the equipment segment in the first quarter now is improved to 14. I wanted that we are seeing a further trend up.

Speaker #2: It's as high as ever. And talking about a lot of projects in 29, in 2030, in 2031, a pipeline of projects where we together develop with energy as a service companies with rental companies for different hyperscalers is huge going into permits.

Speaker #2: In the year '26, we should see the latest deals getting out on average at high teens. So the trajectory is upwards. This is driven by us working through the backlog.

Speaker #2: Already into plans for 2031, 2032. So this proves to me, at least, that our pipeline is really sustainable and strong. In addition, what I need to say, we are always talking about data center, but I'm even to be honest, a bit concerned about the capacity we have because there are so many other markets coming up.

Speaker #2: You could see the orders step by step in terms of margins. So there is the job where we look at what is really driving the upturn. It is mainly driven by the data center revenues now flowing through the funnel.

Speaker #2: You're absolutely right on that one. And Amit, let Martin and me—we will answer this question. As I said, we have a strong, sustainable demand project.

Speaker #2: There was big auctions in Brazil, auctions coming in Argentina, Germany changed the law. On the power pledge. So there is demand growing and growing and growing.

Speaker #2: Looking about things, we have these unique technology in the J624. So if we talk to the energy as a service company, the rental companies, and maybe then Martin, please you can talk about every single day you have calls and WhatsApp, what we can deliver.

Speaker #2: And as I said, capacity constraint, but not market constraint.

Speaker #5: And as Martin said, in Germany for 26, the German government agreed that 9 gigawatt is coming in the market and auction will be delivered in 29, 30, 31.

Speaker #2: Maybe talk about the rental company and energy as a service company with Amit just asking it's a asking for that.

Speaker #5: Auction for 27, you have another 2 gigawatt. So as Martin said, it's not only data center. I know we are talking about the data center, but our core business is power solution.

Speaker #7: Yes, Amit. We hear as well that there is some noise in the market about how sustainable it is. The only thing I can tell you on INNIO and on the demand I see for our product—it's huge.

Speaker #5: And this is very strong. Bigger business.

Speaker #2: And maybe one last sentence to this. We talked about our containerized solution fast to install on site. We don't need a lot of EPC capability on site, which is a very, very strong argument at the moment because as you know, everybody knows in the States, EPC capacity is constrained with our solution.

Speaker #7: It's as high as ever. And talking about a lot of projects in 2029, in 2030, in 2031—a pipeline of projects where we, together with energy-as-a-service companies and rental companies, for different hyperscalers, is huge. Going into permits already, into plans for 2031 and 2032.

Speaker #2: We don't have here a big need. So that's the reason I really see a huge demand for ours.

Speaker #6: Got it. Helpful. Thank you.

Speaker #2: Thanks, Amit.

Speaker #1: Thank you. Now we're going to take our next question. And the next question comes line of David Ridley Lane from Bank of America. Your line is open.

Speaker #7: So this proves to me, at least, that our pipeline is really sustainable and strong. In addition, what I need to say—we always talk about data.

Speaker #1: Please ask your question.

Speaker #7: Hi, good morning. This is David Ridley Lane on for Andrew Oben. Can you talk about the timing of those expected incremental production slots? So when are you going to release the incremental production slots from those capacity additions?

Speaker #7: Center, but I'm even to be honest, a bit concerned about the capacity we have because there are so many other markets coming up. There was big auctions in Brazil, auctions coming in Argentina, Germany changed the law.

Speaker #7: On the power pledge. So there is demand growing and growing and growing. And as I said, capacity constraint, but not market constraint.

Speaker #7: And would you be releasing them? Could there be any 2027 slots in there, 2028 slots? What is the delivery time for those incremental production slots?

Speaker #7: Thank you very much.

Speaker #2: And as Martin said, in Germany and for 2026, the German government agreed that 9 gigawatts is coming into the market, and auctions will be delivered in '29, '30, and '31.

Speaker #5: Thanks, David. David, yeah. Dennis speaking. Good to talk again. Good question here on that one. And you're completely right. We commit to increase our capacity from 3.5 to 10.

Speaker #2: Auction for 27, you have another 2 gigawatts. So, as Martin said, it's not only data centers. I know we are talking about the data center, but our core business is power solutions.

Speaker #5: And this provides for a certain curve. And as we mentioned beforehand, we are not selling everything under this curve already right now because we want to get sufficient visibility that this ramp up is in time in spec so that we can really deliver what we promised to our customers.

Speaker #2: And this is very strong. Bigger business.

Speaker #7: And maybe one last sentence to this. We talked about our containerized solution fast to install on site. We don't need a lot of EPC capability on site, which is a very, very strong argument at the moment because as you know, everybody knows in the States, EPC capacity is constrained with our solution.

Speaker #5: With having said that, we are freeing up slots on the way. This is not digital decision where we decide at one point to free this up.

Speaker #5: So we are freeing this up over time. And since we last spoke, probably six weeks ago or so, or 12 weeks ago, we freed up certain slots already.

Speaker #7: We don't have a big need here, so that's the reason I really see a huge demand for ours.

Speaker #5: You saw in our statement that we already have 15 gigawatts plus in backlog and slots reservation. And a certain amount of this is linked to this already freed up slots.

Speaker #6: Got it. Helpful. Thank you.

Speaker #7: Thanks, Amit.

Speaker #1: Thank you. Now we're going to take our next question. The next question comes from the line of David Ridley Lane from Bank of America. Your line is open.

Speaker #5: So this is an ongoing process. 27 is completely sold out. So there are no further slots to be freed up for 27. And we are talking about 28 and the further ramp up then in Waukesha 29 and 2030.

Speaker #1: Please ask your question.

Speaker #6: Hi, good morning. This is David Ridley Lane on for Andrew Oben. Can you talk about the timing of those expected incremental production slots? So when are you going to release the incremental production slots from those capacity additions?

Speaker #5: So overall, an ongoing process. We are well on track, as I mentioned beforehand.

Speaker #6: Thank you very much.

Speaker #6: And would you be releasing them? Could there be any 2027 slots in there, 2028 slots? What is the delivery time for those incremental production slots?

Speaker #5: Welcome.

Speaker #1: Thank you. Now we're going to take our next question. And the next question comes line of Antika Plovitz from City. Your line is open.

Speaker #6: Thank you very much.

Speaker #1: Please ask your question.

Speaker #2: Thanks, David. Yeah, Dennis speaking. Good to talk again. Good question here on that one. And you're completely right. We commit to increase our capacity from 3.5 to 10.

Speaker #4: Good morning, everyone.

Speaker #5: Morning. Hi.

Speaker #4: Morning. Services were stronger than I expected and had a good year-over-year growth. I know a lot of the data center contracts don't kick in to hire service levels for several years, five years, but you did mention more demand for spare parts, for instance.

Speaker #2: And this provides for a certain curve. And as we mentioned beforehand, we are not selling everything under this curve already right now because we want to get sufficient visibility that this ramp-up is in time in spec so that we can really deliver what we promised to our customers.

Speaker #4: So you give more color on what you're seeing. Do you expect to continue to see a sustained step up in transactional work and look at that mean for service revenue in the future?

Speaker #5: Sure. I'm happy to give it a kick here. Andy Dennis speaking. You're absolutely right. The second quarter came in strong on parts versus labor.

Speaker #2: With having said that, we are freeing up slots on the way. This is not digital decision where we decide at one point to free this up.

Speaker #5: And to a certain extent, that's been also driving our pretty nice margin that we delivered in the quarter percent up versus the quarter beforehand.

Speaker #2: So, we are freeing this up over time. And since we last spoke, probably six weeks ago or so, or twelve weeks ago, we have freed up certain slots already.

Speaker #5: So as we mentioned before, parts are coming with pretty nice margin. Right now, I wouldn't read too much into it. Rather than the ongoing good running hours of our equipment out there in the field and good running hours of our Waukesha business line and that business line is then to a certain extent more transactional and more parts-driven actually than labor-driven.

Speaker #2: You saw in our statement that we already have over 15 gigawatts in backlog and slot reservations. And a certain amount of this is linked to these already freed-up slots.

Speaker #2: So this is an ongoing process. '27 is completely sold out, so there are no further slots to be freed up for '27. And we are talking about '28 and the further ramp-up then in Waukesha for '29 and 2030.

Speaker #5: Given our position in the value chain. So good momentum on that end. I don't see a slowdown on that. We obviously carefully monitoring that.

Speaker #2: So overall, it's an ongoing process. We are well on track, as I mentioned beforehand.

Speaker #5: Cutoff between second and third quarter came in handy for us. So probably a bit of a tailwind in the second quarter. We have to see if this continues in the third and the fourth quarter.

Speaker #6: Thank you very much.

Speaker #2: Welcome.

Speaker #1: Thank you. Now we're going to take our next question. And the next question comes from Antika Plovitz from CT. Your line is open.

Speaker #5: So far, we don't see a change there so that's been the overall framework. As you rightfully mentioned, this is not driven at this point in time by the data center fleet.

Speaker #1: Please ask your question.

Speaker #8: Good morning, everyone.

Speaker #2: Good morning.

Speaker #8: Hi, morning. Services were stronger than I expected and had good year-over-year growth. I know a lot of the data center contracts don't kick in to higher service levels for several years—five years—but you did mention more demand for spare parts, for instance.

Speaker #5: This is only going to be installed growing and the real service category from that is only really kicking in and driving our margin from the early 2030s onwards.

Speaker #5: What we're seeing right now is a very healthy operating performance of our installed fleet in our traditional business. But supports our sentence that we have a strong business aside of the data center.

Speaker #8: So you gave more color on what you're seeing. Do you expect to continue to see a sustained step-up in transactional work, and what could that mean for service revenue in the future?

Speaker #2: Sure, I'm happy to give it a kick here. Andy, Dennis speaking. You're absolutely right—the second quarter came in strong on parts versus labor.

Speaker #5: So we have gas compression we had a strong business in service and service parts and as well as on our power solutions. Data center service is coming up in the future, not yet.

Speaker #2: And to a certain extent, that's also been driving our pretty nice margin that we delivered in the quarter—percent up versus the quarter beforehand.

Speaker #2: Appreciate the color, guys.

Speaker #5: Thanks, Andy.

Speaker #1: Thank you. And now we're going to take our next question. And the question comes line of Mark Strauss from GP Morgan. Your line is open.

Speaker #2: So as we mentioned before, parts are coming with a pretty nice margin. Right now, I wouldn't read too much into it. Rather than the ongoing good running hours of our equipment out there in the field and good running hours of our Waukesha business line and that business line is then to a certain extent more transactional and more parts-driven actually than labor-driven.

Speaker #1: Please ask your question.

Speaker #3: Yeah, great. Thanks for taking our questions. And I'll echo my welcome to the public markets here. So I appreciate the disclosure that about 94% of your data center backlog is for prime power.

Speaker #3: Dennis, you touched on this a bit, but I'm curious if you can just give a bit more color on how to think about the magnitude of the upside in kind of service ASPs and margins over time.

Speaker #2: Given our position in the value chain. So good momentum on that end. I don't see a slowdown on that. We obviously carefully monitoring that.

Speaker #3: Just given that higher mix towards prime power. And then just my quick follow-up. With the greater than 15 gigs that are in backlog and slot reservation, are you able to give us kind of a split of the percentage of what is backlog versus SRAs?

Speaker #2: Cut-off between the second and third quarter came in handy for us, so probably a bit of a tailwind in the second quarter. We have to see if this continues in the third and the fourth quarter.

Speaker #2: So far, we don't see a change there, so that's been the overall framework. As you rightfully mentioned, this is not driven at this point in time by the data center fleet.

Speaker #3: Thank you.

Speaker #5: Okay. Thanks, Mark. And good to speak. On the second question, no, that's not a number that we are going to talk about now and also going forward.

Speaker #2: This is only going to be installed growing, and the real service category from that is only really kicking in and driving our margin from the early 2030s onwards.

Speaker #5: So we have the absolute amounts obviously in terms of dollars for the backlog. And we are not going to split down the gigawatts at this point in time.

Speaker #2: What we're seeing right now is very healthy operating performance from our installed fleet in our traditional business.

Speaker #8: But it supports our statement that we have a strong business aside from the data center. So, we have gas compression, we have a strong business in service and service parts, as well as in our power solutions.

Speaker #5: Regarding your question on the service side, we see some positive momentum in the service business driven by now short-term given by the effects that I just mentioned.

Speaker #8: Data center service is coming up in the future, but not yet.

Speaker #5: You're referring to the positive performance of the data center business in terms of service. As we talked about beforehand, given the way we account for this and given that the real calories on the service side for this bigger data centers are really sitting in the minor and major overhauls, that are happening after 30K and 60K hours, we definitely see positive tailwinds.

Speaker #7: Appreciate the color, guys.

Speaker #2: Thanks, Andy.

Speaker #8: Thank you.

Speaker #1: Thank you. And now we're going to take our next question. The question comes from the line of Mark Strauss from J.P. Morgan. Your line is open.

Speaker #1: Please ask your question.

Speaker #7: Yeah, great. Thanks for taking our questions. And I'll echo my welcome to the public markets here. I appreciate the disclosure that about 94% of your data center backlog is for prime power.

Speaker #5: And maybe more than we thought about beforehand, this is supporting our story and giving us confidence to deliver or even over-deliver on the service part of the business.

Speaker #7: Dennis, you touched on this a bit, but I'm curious if you can just give a bit more color on how to think about the magnitude of the upside in kind of service ASPs and margins over time.

Speaker #5: But this is going to hit our P&L 30K from today, which is like four years out. But yes, from that point in time onwards, what we are seeing right now gives us great confidence to even over-deliver to what we believe beforehand to be our plan.

Speaker #7: Just given that higher mix towards prime power. And then, just my quick follow-up: with the greater than 15 gigs that are in backlog and slot reservation, are you able to give us kind of a split of the percentage of what is backlog versus SRAs?

Speaker #7: Thank you.

Speaker #8: Okay. Thanks, Mark. And good to speak. On the second question, no, that's not a number that we are going to talk about now and also going forward.

Speaker #1: Thank you, Mark.

Speaker #5: Thanks, Mark. Thank you.

Speaker #1: And now we're going to take our next question. And the next question comes line of Moses Sutton from BNP Paribas. Your line is open.

Speaker #8: So, we have the absolute amounts, obviously, in terms of dollars for the backlog, and we are not going to split down the gigawatts at this point in time.

Speaker #1: Please ask your question.

Speaker #6: Thanks for squeezing me in. Congrats on the first print here. The note of the 94% of data center backlog relating to prime power so I just want to clarify.

Speaker #8: Regarding your question on the service side, we see some positive momentum in the service business driven by short-term, given by the effects that I just mentioned.

Speaker #6: Is the 6% therefore emergency backup for data centers that replaces what we normally would have thought goes to diesel? And any thoughts broadly on your ability to capture share from diesel backup?

Speaker #8: You're referring to the positive performance of the data center business in terms of service. As we talked about beforehand, given the way we account for this and given that the real calories on the service side for the bigger data centers are really sitting in the minor and major overhauls.

Speaker #6: That would be great. Thank you.

Speaker #5: Yeah. Yeah. So yeah, you're fully right. The 94% is prime power and the 6% is backup power where diesel engines were replaced with gas engines.

Speaker #5: And the reason for that is that the data center hubs get so big that even the diesel emissions would be too high. The NOx emissions to have all diesel engines would be too high.

Speaker #8: That are happening after 30,000 and 60,000 hours. We definitely see positive tailwinds, and maybe more than we thought about beforehand. This is supporting our story and giving us confidence to deliver, or even over-deliver, on the service part of the business.

Speaker #5: That's the reason. These customer one of the hyperscalers choose here gas engines. And we are as a company going in that market, we would have the opportunity to even get more of these orders to translate more from diesel to gas.

Speaker #8: But this is going to hit our P&L by $30,000 from today, which is about four years out. But yes, from that point in time onwards, what we are seeing right now gives us great confidence to even over-deliver compared to what we believed beforehand to be our plan.

Speaker #5: However, given the capacity we have, we look very, very detailed on that, how much we want to give to prime and to backup power.

Speaker #6: Very helpful. Thank you.

Speaker #5: Thank you.

Speaker #1: Thank you. And now we're going to take our last question for today. And the question comes line of Ben Kahlo from BIT. Your line is open.

Speaker #1: Thank you, Mark.

Speaker #2: Thanks, Mark.

Speaker #8: Thank you.

Speaker #1: And now we're going to take our next question. The next question comes from the line of Moses Sutton from BNP Paribas. Your line is open.

Speaker #1: Please ask your question.

Speaker #7: Hey, good day. Thanks, guys. And congrats. My question was just with the order and backlog and congratulations on that. Could you just talk about the concentration not with specifically a customer, but with projects as we've seen project delays, whether permitting or financing and just how you guys think about any kind of risk with projects slipping to the right as they get permitting and financing throughout your order book.

Speaker #1: Please ask your question.

Speaker #7: Thanks for squeezing me in. Congrats on the first print here. You mentioned that 94% of the data center backlog relates to prime power, so I just want to clarify—is the remaining 6% therefore emergency backup for data centers, replacing what we normally would have thought goes to diesel?

Speaker #7: And any thoughts broadly on your ability to capture share from diesel backup? That would be great. Thank you.

Speaker #8: Yeah, yeah. So, yeah, you're fully right. The 94% is prime power, and the 6% is backup power, where diesel engines were replaced with gas engines.

Speaker #7: And thank you guys very much.

Speaker #5: Yeah. And thanks, Ben. Good question. As I said on our roadshow and testing the water, we celebrating this year 500 years and we are doing business in 100 countries.

Speaker #8: And the reason for that is that the data center hubs get so big that even the diesel emissions would be too high, the NOx emissions if you have all diesel engines would be too high.

Speaker #5: So we have really customer over all the world. Nevertheless, we have now big hyperscalers and there are big customers, of course, the big difference if you have a smaller customer like or you have one of these six or seven big hyperscalers and they are all our customers.

Speaker #8: That's the reason. These customer one of the hyperscalers choose here gas engines. And we are as a company going in that market, we would have the opportunity to even get more of these orders to translate more from diesel to gas.

Speaker #5: Nevertheless, we have not one single cancellation. That means we don't have and we take really a deep look before we go to a project about the financing, the project, who is the customer, and for this reason, we do not have one single cancellation today in smaller project as well as in big projects.

Speaker #8: However, given the capacity we have, we look very, very closely at how much we want to allocate to prime and to backup power.

Speaker #8: Thank you.

Speaker #6: And maybe do add to your second part of the question on the permitting. So far, our customer projects are on time, of course, right?

Speaker #1: Thank you. And now we're going to take our last question for today. The question comes from the line of Ben Callow from B.I.T. Your line is open.

Speaker #6: The usual few days or weeks up and down. But so far, we don't see a big delay on construction on site, on permitting on site, due to our standardized containerized solution as well.

Speaker #1: Please ask your question.

Speaker #9: Hey, good day. Thanks, guys, and congrats. My question was just with the order and backlog, and congratulations on that. Could you just talk about the concentration, not with a specific customer but with projects, as we've seen project delays—whether permitting or financing—and just how you guys think about any kind of risk with projects slipping to the right as they get permitting and financing throughout your order book?

Speaker #6: The job on site is easier. And as Olaf said, we are really taking care that the projects we are awarding and we get awarded that we have detailed know your customer.

Speaker #6: We know that the permits are ongoing or in place. And that's the reason we try to reduce this risk a lot.

Speaker #9: And thank you guys very much.

Speaker #8: Yeah. Thanks, Ben. Good question. As I said on our roadshow and testing the water, we celebrating this year 500 years and we are doing business in 100 countries.

Speaker #7: Thank you.

Speaker #5: Thanks, Ben.

Speaker #6: Yeah, with this, we are finished for today. Thanks

Speaker #8: So we have really customers all over the world. Nevertheless, we now have big hyperscalers, and they are big customers, of course. There is a big difference if you have a smaller customer, or if you have one of these six or seven big hyperscalers — and they are all our customers.

Speaker #8: Nevertheless, we have not one single cancellation that means we don't have and we take really a deep look before we go to a project about the financing, the project, who is the customer, and for this reason, we do not have one single cancellation today in smaller project as well as in big projects.

Speaker #8: And maybe to add to your second part of the question on the permitting, so far our customer projects are on time, of course, right?

Speaker #8: The usual few days or weeks up and down. But so far we don't see a big delay on construction on site, on permitting on site, due to our standardized containerized solution as well.

Speaker #8: The job on site is easier. And as Olaf said, we are really taking care that the projects we are awarding, and those we get awarded, have detailed know your customer.

Speaker #8: We know that the permits are ongoing or in place, and that's the reason we try to reduce this risk a lot.

Speaker #7: Thank you.

Speaker #8: Thank you, Ben.

Speaker #7: Yeah, with this, we are finished for today. Thanks for your question. And of course, hope to see you and speak to you soon.