Q2 2026 TXT e-solutions SpA Earnings Call

August 6, 2026

Speaker #1: Good morning, everyone, and welcome to the conference call during which Danielle Mizani, Group CEO, will present and comment the results of the first 6 months of 2026, together with analyze on the main events and business outlook.

Speaker #1: We will then have a deep dive into the financials so and, of course, as every time, there is a Q&A section at the end of the meeting.

Speaker #1: So any questions you might have, please drop the question into the dedicated section of the meeting. We're going to wait just a few seconds, and then we will start with the presentation.

Speaker #1: And thank you, Danielle.

Speaker #2: Thank you, Andrea, for the introduction. Thank you everybody for coming here for this—let's say—presentation of H1 results of the TXT Group. So it's summer.

Speaker #2: It's the last one of the period, but it's very positive for everyone listening. So we just published and approved the approved result that this morning we approved during the board of directors, and the first semester of 2026 is another record, let's say, results for the TXT Group.

Speaker #2: Total revenues: 228 million, with a growth of 21%, with the same perimeter of—with the same—let's say—period of the last year. The important thing to highlight is that the contribution of the acquisition is still not visible in the 6-month result, and we'll have a stronger impact on the full-year results, of course.

Speaker #2: But in the first half of the year, we did a plus 19%—19, almost 20%—of organic growth, like for like. That is an additional 35 million to the total perimeter that was present also last year.

Speaker #2: And this is a very strong point of our strategy, because we implemented a strong execution of the strategy itself. So putting together different offerings, different assets, in front of the market, leverage on synergies, commercial one, delivery one, in order to deliver a bigger value for customers and, of course, to all the stakeholders, including the investors.

Speaker #2: That believe in our equity story. Strong organic growth, and the other important KPI to highlight is that the EBITDA is growing—is growing faster than the top line.

Speaker #2: So with 21% of growth, we registered a plus 24% of EBITDA growth. So we closed the first semester with 35 million—34 millions of EBITDA, with a percentage of 15% of the revenue.

Speaker #2: So plus 24% with respect to the same perimeter of the last year. In terms of contribution, we are registering a good improvement in all the division of the group.

Speaker #2: So the total 21% comes—20%—from the system engineering division. That goes from 114 to 127. We have a strong growth in the digital advisory, driven mainly by the public sector industry, from 31 to 40.

Speaker #2: And we have a plus 14% in our smart solution perimeter, 44 to 50. There is, let's say, the contribution of the new acquisition that is small because it was, let's say, mostly in the second quarter contribution.

Speaker #2: So the consolidated values are still low in terms of total consolidated results. So mainly of these, let's say, growth is organic. Driven by the value of the offering that we have in portfolio and the capability to leverage on synergies among the excellences that we have in the group.

Speaker #2: EBITDA is growing 24% from 27.5 million to 34.2. There is a stronger growth of the strategic division of the group itself. So digital advisory and smart solution are contributing faster to the overall increase of the EBITDA.

Speaker #2: In particular, we registered a recorded very strong growth in terms of EBITDA of our smart solution portfolio. Going through 8.1 towards 12.6 million in EBITDA, with a growth of plus 55%.

Speaker #2: So a very strong. This is driven by the fact that this division is growing in terms of subscription and software licenses that we sell to customer.

Speaker #2: And so some of the more mature smart solution that we have in portfolio are giving very good margins, and the growth is mainly margins, not only turnover, because, you know, the products are mature, the investment is already stable, and so new business means new margins coming.

Speaker #2: So it's fully with our strategy to have this kind of offering stronger and with a good positioning to the market. And also with the aim to open up for synergies with the other division in order to continue to grow in the overall top line of the group.

Speaker #2: Investments we continue to invest. So as said before, some of the products are more mature and require less investment, but overall we are still investing in new product lines and also internal stuff like we did with the InfraWise, that is the new startup for artificial intelligence for monitoring complex infrastructure, in critical infrastructure.

Speaker #2: So we continue to invest. Our first semester is 13 million, plus 6% with the same period of the last year. That are giving this contribution of growth in terms of licenses and smart solution positioning.

Speaker #2: The total contribution of smart solution is 50 million in growth of 14% with the respect of the last year. International revenues are 34 million.

Speaker #1: Contribution of growth in terms of licenses and smart solution positioning, and the total contribution. Smart solution is 50 million in growth of 14%, with the respect of the last year.

Speaker #2: So we continue to grow and keep by keeping also the same percentage with respect to the overall group. That is 15% of the total.

Speaker #2: And, let's say, the focus on sustainable debt is still confirmed. We recorded 140 million net debt adjusted and the adjustment is referred to our financial investments still in the bank.

Speaker #1: International revenues are 34 million, so we continue to grow and keep by keeping also the same percentage with respect to the overall group that is 15% of the total.

Speaker #1: And let's say the focus on sustainable debt is still confirmed; we recorded 114 million as net debt adjusted and the adjustment is referred to our financial investments still in the bank that is still to be dismissed is under dismissal but not yet dismissal.

Speaker #2: That is still to be dismissed. It is under dismissal, but not yet dismissal. And the other point is that we continue with our buyback program.

Speaker #2: We have now, let's say, treasury shares that at the end of the semester was evaluated more or less 14 millions. Of course, last month, July, I recorded a very strong growth of our stock price.

Speaker #1: And the other point is that we continue with our buyback program. We have now, let's say, treasury shares that at the end of the semester was evaluated more or less 14 millions.

Speaker #2: So as far as today, also this value is increased by the by due to the fact that also the stock price is rising in the last period.

Speaker #1: Of course, last month, July, I recorded a very strong growth of our stock price, so as far as today, also this value is increased due to the fact that also the stock price is rising in the last period, and we are happy of this, of course.

Speaker #2: And we are happy of this, of course. Looking to the industry, so the different segments in which we are present, we are going better also than the forecasting that we put into the guidance, the overall guidance.

Speaker #2: The total growth of 21% as a whole is driven and pushed especially by the strategic areas for which we have half of the business, more or less.

Speaker #1: Looking to the industry, so the different segments in which we are present, we are going better also than the forecasting that we put into the guidance, the overall guidance.

Speaker #1: The total growth of 21% as a whole is driven and pushed especially by the strategic areas for which we have half of the business, more or less.

Speaker #2: So I'm speaking about public sector and aerospace and defense that are strategic domain for which TXT is very well positioned. We are a very good, let's say, delivering a good value to customers, and we are continuing to growing with new initiatives.

Speaker #1: So I'm speaking about public sector and aerospace and defense that are strategic domain for which TXT is very well positioned. We are a very good, let's say, delivering a good value to customers and we are continuing to growing with new initiatives.

Speaker #2: This half of the business is also the business that has longer visibility. So it's a sort of the risk to the overall results of the group because we still have a very strong backlog and very good visibility for the rest of the year.

Speaker #1: This half of the business is also the business that has longer visibility, so it's sort of the risk to the overall results of the group because we still have a very strong backlog and very good visibility for the rest of the year, but of course also for the next 1, 2 years because in this kind of segments the projects are long term and we are engaged in most of the critical investments that Italy is doing as government investment for IT and in the defense, let's say, arena in which we are contributing on the main programs that are now ramping up pace.

Speaker #2: But of course, also for the next one, two years, because you know, in this kind of segments, the projects are long term and we are engaged in most of the critical investments that Italy is doing as government investment for IT.

Speaker #2: And in the defense, let's say, arena in which we are contributing on the main programs that are now in ramping up phase. So there will be possibility to continue with this strong rates also on a short, of course, but also on a mid term.

Speaker #2: Also the other verticals are growing, are growing in a good way. Particularly, let's say, important is the performance of the Tesco that is including also the gaming part.

Speaker #1: So there will be possibility to continue with this strong rates also on a short, of course, but also on a mid term. Also the other verticals are growing, are growing in a good way.

Speaker #2: In particular, we are growing also better than the expectation in this area because the positioning of, let's say, one of our companies with an important customer in the gaming industry that required new investment and we follow this investments.

Speaker #1: Particularly, let's say, important is the performance of the Tesco that is including also the gaming part. In particular, we are growing also better than the expectation in this area because the positioning of, let's say, one of our companies with an important customer in the gaming industry that required new investment and we follow this investments and so we recorded the plus 18% for the Tesco and gaming division.

Speaker #2: And so we recorded the plus 18% for the Tesco and gaming. Here we have also the contribution of the acquisition of Fastink that we did in the first half of the year.

Speaker #2: But there is a very strong growth because we are let's say including the new business related to critical infrastructure monitoring by using AI that is, let's say, reported within this vertical.

Speaker #1: Industrial is growing, 19%. Here we have also the contribution of the acquisition of I think that we did in the first half of the year, but there is a very strong growth because we are let's say including the new business related to critical infrastructure monitoring by using AI that is let's say reported within this vertical.

Speaker #2: So because it's related to the offer that we have for the industrial IoT. And so we are growing this for these two main reasons.

Speaker #2: Fintech is growing. So a little bit less than the others, but almost in average with the expectation we had. Also because the initiative related to digital payments are shifting a little bit and we will get a better contribution and we are planning and forecasting to have a better contribution of growth in the second half of the year.

Speaker #1: So because it's related to the offer that we have for the industrial IoT and so we are growing this for these two main reasons.

Speaker #1: Synthes is growing, so a little bit less than the others, but almost in average with the expectation we had. Also because the initiative related to digital payments are shifting a little bit and we will get a better contribution and we are planning and forecasted to have a better contribution of growth in the second half of the year.

Speaker #2: Martech is also growing. Also here we have a contribution coming from the acquisition of net media click, even if, let's say, consolidated just for one month.

Speaker #1: Martek is also growing. Also here we have a contribution coming from the acquisition of net media click, even if let's say consolidated just for one month.

Speaker #2: The strong point is that the overall offering in this domain is also positioning very well within the market itself. And so we recorded a plus 18% with respect to the same perimeter the same period of the last year.

Speaker #1: The strong point is that the overall offering in this domain is also positioning very well within the market itself and so we recorded a plus 18% with respect to the same perimeter the same period of the last year.

Speaker #2: We confirm the guidance. So we have a outlook given the industrial plan to have a growth organically of 15%. Of course, the first semester is stronger.

Speaker #1: We confirm the guidance. So we have a outlook given the industrial plan to have a growth organically of 15%. Of course, the first semester is stronger.

Speaker #2: We plan maybe to have a little bit relax in the second half of the year, specifically for the public sector that started a lot of project in the first half of the year.

Speaker #1: We plan maybe to have a little bit of a relax in the second half of the year, specifically for the public sector that started a lot of projects in the first half of the year.

Speaker #2: Even if the guidance of plus 15% is more than reachable. So it will be let's say we will do better of course than the guidance that we have.

Speaker #1: Even if the guidance of plus 15% is more than reachable, so it will be let's say we will do better, of course, than the guidance that we have, but still we confer the guidance.

Speaker #2: But still we confer the guidance. The important thing is that we acquired, let's say, and I explain a little bit later, a new company that now is integrated and rebranded in TXT Digital Age that will have a contribution, a strong contribution in the second half of the year in terms of turnover.

Speaker #1: The important thing is that we acquired let's say and I explain a little bit later a new company that now is integrated and rebranded in TXT Digital Age that will have a contribution a strong contribution in the second half of the year So our outlook for the proforma revenues of 2026 is more than half a billion.

Speaker #2: So our outlook for the proforma revenues of 2026 is more than half a billion. So it's, let's say, a very strong driver for growth and strong result that we can have as a proforma for the 2026.

Speaker #1: So it's let's say a very strong driver for growth and strong result that we can have as proforma for the 2026. Of course, also the consolidated one we confirm our guidance that will be better than 470 million and we overshoot also this results.

Speaker #2: Of course, also the consolidated one, we confirm our guidance that will be better than 470 million and we overshoot also this results. So we will be near to half a billion also for a proforma basis.

Speaker #2: Also for a consolidated reported basis, not only as a proforma one. We confirm also our let's say vision of keeping sustainable growth. So the growth will have a small or no impact on the overall EBITDA margin that is forecasted around 15%.

Speaker #1: So we will be near to half a billion also for a proforma basis. Also for a consolidated reported basis not only as a proforma one.

Speaker #1: We confirm also our let's say vision of keeping sustainable growth. So the growth will have a small or no impact on the overall EBITDA margin that is forecasted around 15%.

Speaker #2: So means more than 70 million also for 2026. Some let's say updates about what happened in the last period from the last call that we had a few months ago.

Speaker #1: So means more than 70 million also for 2026. Some let's say updates about what happened in the last period from the last call that we had a few months ago.

Speaker #2: And in particular, the acquisition of and investment in a company that we acquired one month ago, more or less, so beginning of July. We will be which will be consolidated starting from the 1st of July so means in the full half second half of the year.

Speaker #1: And in particular, the acquisition of and investment in a company that we acquired one month ago, more or less, so beginning of July. We will be which will be consolidated starting from the 1st of July so means in the full half second half of the year.

Speaker #2: This investment was made because it was strategic. So we already invested in this kind of offering that is very focused on cybersecurity networking and data centers.

Speaker #1: This investment was made because it was strategic. So we already invested in this kind of offering that is very focused on cybersecurity networking and data centers.

Speaker #2: So we started this let's say initiative internally in a company already present in the group. But we were looking for a new company to add in our ecosystem in order to accelerate the growth because we are already position ourselves but in order to scale up rapidly we strategically decided to look for a target invest in the target.

Speaker #1: So we started this let's say initiative internally in a company already present in the group but we were looking for a new company to add in our ecosystem in order to accelerate the growth because we are already position ourselves but in order to scale up rapidly we strategically decided to look for a target invest in the target merge the business that we already started in TXT and have a focus on this domain and so we individuated a target we acquire the target itself and rename the target in TXT Digital Age that will be the new company of the group that will deliver value for networking data center and cybersecurities.

Speaker #2: Merge the business that we already started in TXT and have a focus on this domain. And so we individuated a target. We acquire the target itself and rename the target in TXT Digital Age that will be the new company of the group that will deliver value for networking data center and cybersecurities.

Speaker #2: The company we acquired brings also contracts and so business for the verticals in which we are already. So tech and banking and finance but open up also opportunity for energy utilities that is a domain for which we are in the past we were very let's say narrow in terms of offering and presence.

Speaker #1: The company we acquired also brings contracts and business for the verticals in which we are already present—so telco, and banking and finance—but it also opens up opportunities for energy and utilities. That is a domain in which, in the past, we were very, let's say, narrow in terms of offering and presence.

Speaker #2: So we think that this investment it's a boost in order to contribute to continue to grow and generates also opportunity for upselling and cross sellings other solution towards markets in which we were present but not so strongly.

Speaker #1: So we think that this investment it's a boost in order to contribute to continue to grow and generates also opportunity for upselling and cross-sellings other solution towards markets in which we were present but not so strongly.

Speaker #2: Digital Age generate generated in 2025 more or less 50 million. We think and we are working in order to implement commercial synergies and operational efficiency and we plan to consolidate for the second half of the year at least 30 million in revenues and 3 million of EBITDA.

Speaker #1: Digital Age generate generated in 2025 more or less 50 million we think and we are working in order to implement commercial synergies and operational efficiency and we plan to consolidate for the second half of the year at least 30 million in revenues and 3 million of EBITDA.

Speaker #2: So it's a strong contribution to overall results of the group itself. We plan let's say the business plan we are working on is a plan let's say supported by the backlog that was is already in the company and was previously in TXT to have these let's say overall offering cover 80 million of revenues and 8 million of EBITDA in 2027.

Speaker #1: So it's a strong contribution to overall results of the group itself. We plan let's say the business plan we are working on is a plan let's say supported by the backlog that was is already in the company and was previously in TXT to have these let's say overall offering over 80 million of revenues and 8 million of EBITDA in 2027.

Speaker #2: The enterprise value for the investment was about 7 million. In 5.9 million in equity and 1 million of assumed net financial position means that also the company is a value for money because the company entered and needed some restructuring.

Speaker #1: The enterprise value for the investment was about 7 million in 5.9 million in equity and 1 million of assumed net financial position means that also the company is a value for money because the company entered and needed some restructuring we already did it and so we will integrate a fully let's say clean company that will improve margins and will deliver value for the group and for the stakeholders.

Speaker #2: We already did it. And so we will integrate a fully let's say clean company that will improve margins and will deliver value for the group and for all the stakeholders.

Speaker #2: I want also to inform you not so too many positive let's say information and news. We had some also drawbacks in particular we announced last week on 10 days ago so very recently a an impact related to our net financial position due to the tax position of a subsidiary in particular we delivered and we as a board decided to approve a let's say a settlement of a tax position tax.

Speaker #1: I want to inform you not so too many positive let's say information and news. We had some also drawbacks in particular we announced last week on 10 days ago so very recently a an impact related to our net financial position due to the tax position of a subsidiary.

Speaker #1: In particular we delivered and we as a board decided to approve a let's say a settlement of a tax position tax audit that we received from the tax regulatory let's say Italia regulation tax office about subsidiary this let's say audit was related to an initiative of the subsidiary very focused on a period of time already passed and closed so we started in end of 2021 an initiative of business growth in terms of also international business of the subsidiary itself initiative that started in 2021 and ended in 2024.

Speaker #2: Audit that we received from the tax regulatory let's say Italia regulation tax office about subsidiary. This let's say audit was related to an initiative of the subsidiary very focused on a period of time already passed and closed so we started in end of 2021 an initiative of business growth in terms of also international business of the subsidiary itself initiative that started in 2021 and ended in 2024.

Speaker #2: They took tax let's say regulation the tax office claim let's say some let's say not regular let's say movement specifically due to some patterns that we had in this initiative itself.

Speaker #1: Tax let's say regulation the tax office claim let's say some let's say not regular let's say movement specifically due to some patterns that we had in this initiative itself so we were involved but our subsidiary is fully out of this kind of let's say irregular behavior of our partners itself but of course in this in these moments we have to decide and do a risk assessment to settle or to open up to possible major risk with new let's say investigation and other things since the initiative was completely closed and passed finished and the fact that we have a strong cash generation and strong result for this year as a board we decided in order to be more let's say prudent and also because this is not requiring item to close this kind of situation and find an agreement with the tax agency and close it by paying a part that we already paid a few days ago.

Speaker #2: So we were involved but our subsidiary is fully out of this kind of let's say irregular behavior of our partners itself but of course in this in this moments we have to decide and do a risk assessments to settle or to open up to possible measure risk with new let's say investigation and other things since the initiative was completely closed and passed finished and the fact that we have a strong cash generation and strong result for this year as a board we decided in order to be more let's say prudent and also because this is a non-recurring item to close this kind of situation and find an agreement with the tax agency and close it by paying a part that we already paid few days ago.

Speaker #2: So and we will finish to pay by the end of the year. So this is a non-recurring impact that will be recorded of course in our profit and loss it will be in the not adjusted let's say net profit essentially and it will have an impact on the net financial position but it has no impact on our let's say guidance and our forecast for the rest of the year.

Speaker #1: So and we will finish to pay by the end of the year. So this is a not requiring impact that will be recorded of course in our profit and loss.

Speaker #1: It will be the not adjusted let's say net profit essentially and it will have an impact on the net financial position but it has no impact on our let's say guidance and our forecast for the rest of the year.

Speaker #2: This because we are growing faster than we let's say also forecasted and budgeted and this means that there is a good cash generation of the group itself.

Speaker #1: This is because we are growing faster than we, let's say, also forecasted and budgeted, and this means that there is good cash generation for the group itself.

Speaker #1: So we confirm our guidance to have 15% of EBITDA 15% of growth and net debt EBITDA below two times. So we still confirm our guidance.

Speaker #2: So we confirm our guidance to have 15% of EBITDA 15% of growth and net debt EBITDA below two times. So we still confirm our guidance.

Speaker #1: I would like also to outline that in terms of growth beside the fact that stock price are increasing means that also the financial community is appreciating the work we are doing in this years.

Speaker #2: I want like also to outline that in terms of growth beside the fact that stock price are increasing means that also the financial community is appreciating the work we are doing in this years.

Speaker #1: We also had a recognizement from an international let's say very important let's say newspaper. So Times did a research about the leaders of 2026 and TXT was ranked as first in Italy fourth in Europe and fourth in globally for the digital segment.

Speaker #2: We also had a recognizement from an international let's say very important let's say newspaper. So Times did a research about the leaders of 2026 and TXT was ranked as first in Italy fourth in Europe and 14 globally for the digital segment.

Speaker #1: So for us it's a very let's say make us proud because also an independent review put us in a particular very strong and difficult let's say overall group of companies that because you know there was more than 500,000 listed company that was let's say taking consideration for this survey and to be first in Italy fourth in Europe for us is very very is important let's say make us very proud of what we are doing as a job.

Speaker #2: So for us it's a very let's say make us proud because also an independent review put us in a particular very strong and difficult let's say overall group of companies that because you know there was more than 500,000 listed company that was let's say taking consideration for this survey and to be first in Italy and fourth in Europe for us is very very is important let's say make us very proud of what we are doing as a job.

Speaker #1: In terms of business so we are improving and we are getting a lot of new business specifically also in the public sector. So we won seven we were let's say we won the first let's say pits for public sector that still are not communicated to the market because we need to be finalized and approved but we already are let's say knowledgeable of the fact that we are in a very good position for a new wave of tenders that the public sector put in the second quarter of the year.

Speaker #2: In terms of business so we are improving and we are getting a lot of new business specifically also in the public sector. So we won seven we were let's say we won the first let's say pits for public sector that still are not communicated to the market because we need to be finalized and approved but we already are let's say knowledgeable of the fact that we are in a very good position for the new wave of tenders that the public sector put in the second quarter of the year.

Speaker #1: So in the third quarter we will be communicate volumes and projects in which we are involved once approved. So we have a strong longer visibility for the public sector.

Speaker #2: So in the third quarter we will communicate volumes and projects in which we are involved once approved. So we have a strong longer visibility for the public sector.

Speaker #1: I want to highlight also some initiative and some results that we achieved in the last quarter about the defense and in particular we communicated also this good relationship and partnership we signed with MBDA that is let's say a French Italian players very strong in defense domain.

Speaker #2: I want to light also some initiative and some results that we achieved in the last quarter about the defense. And in particular we communicated also this good relationship and partnership we signed with MBDA that is let's say a French Italian players very strong in defense domain.

Speaker #1: MBDA is growing up on Turin. Our present in Turin and Piedemont in general is very strong. So we have a long history. And the Piedemont region is let's say shifting from the automotive industry towards defense and we are one of the players that is supporting the region in order to grow because our relation our presence strong presence in terms of people and knowledge in the area and our relationship with Polytechnic of Torino.

Speaker #2: MBDA is growing up on Turin. Our present team is Turin and Piedemont in general is very strong. So we have a long history. The Piedemont region is let's say shifting from the automotive industry towards defense and we are one of the players that is supporting the region in order to grow because our relation our presence strong presence in terms of people and knowledge in the area and our relationship with polytechnic of Torino.

Speaker #1: So with the academic community and with the business community itself. So we sign an agreement to support MBDA in scale scaling up the Turin site we are it's a long-term partnership agreement that will cover multi up to five years of growth together and our focus is on digital innovation.

Speaker #2: So with the academic community and with the business community itself. So we sign an agreement to support MBDA in scale up scaling up the Turin site we are it's a long-term partnership agreement that will cover multi-year up to five years of growth together.

Speaker #1: So embed the software of critical systems system engineering advanced simulation. These are the topic in our offering that is valuable also for the customer in order to grow.

Speaker #2: And our focus is on digital innovation. So embedded software of critical systems system engineering advanced simulation these are the topic in our offering that is available also for the customer in order to grow.

Speaker #1: And we this is a strong point to strengthen our position in in the defense area and it will contribute with revenue starting from Q3.

Speaker #2: And we this is a strong point to strengthen our position in in defense area. And it will contribute with revenue starting from Q3. So we ramp up a team and we started to deliver just now.

Speaker #1: So we ramp up a team and we started to deliver just now. So in September will be let's say the first month with relevant volumes.

Speaker #1: We are planning to let's say consolidate already 1 million coming from this initiative by the end of the year. But it's just the starting point of a ramp up that will give very good contribution for 2027 and more.

Speaker #2: So in September will be let's say the first month with relevant volumes. We are planning to let's say consolidate already 1 million coming from this initiative by the end of the year.

Speaker #2: But it's just the starting point of a ramp up that will give very good contribution for 2027 and more. This is just an example but you know the overall results are very strong because we have many activities some of them we can communicate other are more let's say covered by industrial secrets and so on.

Speaker #1: This is just an example but you know the overall results are very strong because we have many activities some of them we can communicate other are more let's say covered by industrial secrets and so on.

Speaker #1: So but the important thing is to say that we are very very very very well positioned and we want to continue to capture and capture opportunity comes from this strong position in order to continue to grow possibly at the same pace that we are already doing and we expect and we have very strong outlook for the 2026 full year and a very good backlog also for continuity in the mid and long term.

Speaker #2: So but the important thing is to say that we are very very very very well positioned and we want to continue to capture and capture opportunity comes from this strong position in order to continue to grow possibly at the same pace that we are already doing and we expect and we have a very strong outlook for the 2026 full year and a very good backlog also for continuity in the mid and long term.

Speaker #1: Thank you very much. I want to ask follow up and highlight a better the financial results of the six months. Thank you. Thank you Daniele.

Speaker #2: Thank you very much. I want to ask Andrea to follow up and highlight a better the financial results of the six months. Thank you.

Speaker #1: And yes we can start with the profit and loss of the first six month of 2026. So here we look top line to ETDA and as discussed by Daniele we have a very positive here in terms of top line with a 20.6% growth compared to the six month of 2025 with an 18.8% of growth.

Speaker #1: Thank you Daniele. And yes we can start with the profit and loss of the first six month of 2026. So here we look top line to EBITDA and as discussed by Daniele we have a very positive here in terms of top line with a 20.6% growth compared to the six month of 2025 with an 18.8% of organic growth.

Speaker #1: So very strong performance. And we have instead of in terms of gross margin the grow is slightly let's say reduced by the fact that in all the was more let's say strong in software engineering and digital advisory when the gross margin is lower let's say by the nature of the business but also into the smart solution business there are strong let's say investment in the going into operation of major contracts especially in the aerospace domain for which let's say technical R&D resources are working into paid customer projects for let's say major let's say subscription deal that will enter into operation between second half of the year and beginning of the next year.

Speaker #1: So very strong performance. And we have instead of in terms of gross margin the grow is slightly let's say reduced by the fact that in all the grow was more let's say stronger in software engineering and digital advisory when the gross margin is lower let's say by the nature of the business but also into the smart solution business there are strong let's say investment in the going into operation of major contracts especially in the aerospace domain for which let's say technical R&D resources are working into paid customer projects for let's say major let's say subscription deal that will enter into operation between second half of the year and beginning of the next year.

Speaker #1: So overall the gross margin let's say reduce from 38.2% in 2025 first half to the 36.6% in the first half of the current year 2026.

Speaker #1: So overall the gross margin let's say reduced from 38.2% in 2025 first half to the 36.6% in the first half of the current year 2026.

Speaker #1: And in terms of indirect cost also here in terms of research and development the grow of 6.2% it's of course lower than the growth of the top line and explained by Daniele this is also the fact that some of our smart solution platforms are reached a maturity which doesn't require an investment in terms of new research and development activities but also by the fact that more than 1 million of resources normally let's say involved into R&D activities and being shift for the time being into let's say more direct build activities for those let's say enter into service operation that I mentioned before.

Speaker #1: And in terms of indirect cost also here in terms of research and development the grow of 6.2% it's of course lower than the growth of the top line and explained by Daniele this is also by the fact that some of our smart solution platforms are reached a maturity which doesn't require an investment in terms of new research and development activities but also by the fact that more than 1 million of resources normally let's say involved into R&D activities have been shift for the time being into let's say more direct build activities for those let's say enter into service operation that I mentioned before.

Speaker #1: In terms of commercial cost also here are let's say start to be material and significant defect of the operational efficiency and the synergies built between the different cluster and verticals of the entities.

Speaker #1: In fact the approximately 15% growth compared to the more than 20% of the top line. And also in terms of general administrative cost there is a strong say efficiency gain at the group level and this is let's say bringing the incidence of general administrative cost down from 7.3% in the first six month of 2025 to the 6.5% of the first half of the current year.

Speaker #1: In fact we recorded approximately 15% growth compared to the more than 20% growth in the top line. And also in terms of general administrative cost there is a strong let's say efficiency gain at the group level.

Speaker #1: So as discussed by Daniele we have a 40 basis points let's say improvement in our EBTDA which grew from 14.6% to 15% of revenues in 2026 reaching more than 34 million.

Speaker #1: And this is let's say bringing the incidence of general administrative cost down from 7.3% in the first six month of 2025 to the 6.5% of the first half of the current year.

Speaker #1: If we move to the next slide we have a bridge from EBTDA to the net profit both adjusted and reported and here we start from the 15% of the EBTDA margin and here we have let's say reduction to from the 34 million of EBITDA to the 28 million of EBIT adjusted which is driven by depreciation related to IFRS 16.

Speaker #1: So as discussed by Daniele we have a 40 basis points let's say improvement in our EBITDA which grew from 14.6% to 15% of revenues in 2026 reaching more than 34 million.

Speaker #1: If we move to the next slide we have a bridge from EBITDA to the net profit both adjusted and reported. And here we start from the 15% of the here we have let's say reduction to from the 34 million of EBITDA to the 28 million of EBIT adjusted which is driven by depreciation related to IFRS 16.

Speaker #1: So office and car lease which account for 4 million. In the period then we have about 1.7 million of depreciation of other fixed asset fixed asset and then we have a amount of about 0.7 million of depreciation amortization of intangible assets and write off of commercial items in particular the depreciation of intangible asset is 0.5 million and we have about 0.2 million of let's say commercial write offs mainly country receivables.

Speaker #1: So office and car lease. Which accounted for 4 million in the period. Then we have about 1.7 million of depreciation of other fixed asset tangible fixed asset.

Speaker #1: And then we have residual amount of about 0.7 million of depreciation amortization of intangible assets and write off of commercial items in particular the depreciation of intangible asset is 0.5 million and we have about 0.2 million of let's say commercial write offs mainly country receivables.

Speaker #1: This changes bring the adjusted EBIT to a level of 12.2% with a growth percent compare to the six month of the previous year. Looking at the net financial results of the period in terms of net financial charges the net amount is 4.3 million and are included approximately 4.8 million of interest expenses and bank charges with a net grow of approximately 36% compared to the previous year.

Speaker #1: These changes bring the adjusted EBIT to a level of 12.2% with a growth of 23.5% compare to the six month of the previous year.

Speaker #1: Looking at the net financial results of the period in terms of net financial charges the net amount is 4.3 million and are included approximately 4.8 million of interest expenses and bank charges with a net grow of approximately 36% compared to the previous year mainly due to the difference to the different let's say structure of the debt of the company and the volume of debt of the company compared to the to the previous year.

Speaker #1: Mainly due to the difference to the different let's say structure of the debt of the company and the volume of debt of the company compared to the to the previous year.

Speaker #1: And then there are 0.4 million overall 0.5 million overall of financial income of which 0.15 are related to the fair value of financial instruments and 0.4 are related instead to the fair value of earn outs.

Speaker #1: Then we have the share profits of associate companies with a negative impact of 0.15 million and the FX gain as a non material impact of a positive 0.1 million.

Speaker #1: That brings together with income taxes of the period of 5.5 million and net profit adjusted of 17.9 million equal to 7.8% of revenues. And with let's say a growth of 32.8% compare to the previous year.

Speaker #1: That brings together with tax income taxes of the period of 5.5 million and net profit adjusted of 17.9 million equal to 7.8% of revenues.

Speaker #1: In terms of adjustments we have PPA so the amortization of intangible mainly intellectual properties and customer relationship which accounted for 6.2 million of which 1.1 million are related to compensation of PPA related to the previous year 2025 in particular related to the acquisition of IT values so let's say we can exclude this 1.1 million and we have let's say recurrent PPA for about 5 million in the first six month of the year.

Speaker #1: And with let's say a growth of 32.8% compare to the previous year. In terms of adjustments we have PPA so the amortization of intangible mainly intellectual properties and customer relationship which accounted for 6.2 million of which 1.1 million are related to the compensation of PPA related to the previous year 2025 in particular related to the acquisition of IT values.

Speaker #1: And then we have as one of item related to the tax item discussed commented before by Daniele a total of 12.7 million of which 1.5 million is related to the write off of a tax receivable and the remaining 11.2 million are related to an accrual for provision for future charges.

Speaker #1: So let's say we can exclude this 1.1 million and we have let's say recurrent PPA for about 5 million in the first six month of the year.

Speaker #1: So with all let's say this one of end effect of the PPA the net profit reported of the period showed a negative balance of 1 million compared to the 11 million of the previous year.

Speaker #1: So with all let's say these one of end effect of the PPA the net profit reported of the period showed a negative balance of 1 million compared to the 11 million of the previous year.

Speaker #1: Looking at the financial position of the company so as of June 2026 the reported financial net debt is equal to 123 million excluding the cash out expected in connection with the one of tax item commented before.

Speaker #1: And if we look at the main items of the financial debt, in terms of financial assets, we have about €103 million of cash and cash equivalents. We have about €17 million of trading securities at fair value, with a net increase of €5 million compared to the year-end. We have some cash that will be, let's say, allocated mostly into M&A, which has been, let's say, invested into some funds with no, let's say, constraints in terms of divestment.

Speaker #1: And if we look at the main items of the financial debt in terms of financial assets we have about 103 million of cash and cash equivalents.

Speaker #1: We have six about 17 million of trading security at fair value. With the net increase of 5 million compared to the year end 2025 as we have some cash that will be let's say allocated mostly into M&A which has been let's say invested into some funds with no let's say constraints in terms of divestment.

Speaker #1: So we will divest without penalties. And without let's say any risk to further let's say burn the debt of of the period. And then we have in terms of other financial assets financial receivable for about 300k.

Speaker #1: In terms of liabilities the overall amount balance of bank loans it's about 202 million. With a net increase of about 5 million compared to the year end 2025.

Speaker #1: So we will divest without penalties. And without let's say any risk to further let's say burden the debt of of the period. And then we have in terms of other financial assets financial receivable for about 300k.

Speaker #1: Then we have liabilities related to IFRS 16 meaning leasing liabilities for about 17.5 million with a net decrease of half a million compared to the previous year.

Speaker #1: In terms of liabilities the overall amount balance of bank loans it's about 202 million with a net increase. Of 5 million per year 2025.

Speaker #1: We have a very significant increase in terms of earn outs liabilities which grew from 10.5 million as of year end 2025 to about 20 million as of end of June 2026 with a net increase of about 9.5 million.

Speaker #1: Then we have liabilities related to IFRS 16 meaning leasing liabilities for about 17.5 million with a net decrease of half a million compared to the previous year.

Speaker #1: Then we have let's say payables for acquisition of which part are related to treasury share to be transferred for an overall amount of 1.7 million.

Speaker #1: And then we have some other payables for about 1.4 million. In terms of adjustment discussed before by Daniele we have the residual stake owned by TXT in bank for 9.5 million down compared to the 17.4 million of year end 2025 following the divestment of part of the stake.

Speaker #1: Then we have let's say payables for acquisition of which part are related to treasury share to be transfer for an overall amount of 1.7 million.

Speaker #1: And then we have some other payables for about 1.4 million. In terms of adjustment as discussed before by Daniele we have the residual stake owned by 60 in Banca di Fucino for 9.5 million.

Speaker #1: And another 1.1 million which is related to the non-monetary debts for let's say basically consideration to be paid in treasury shares already owned by the company.

Speaker #1: So that we will not have an impact into our let's say cash position. In terms of overall change of adjusted net financial debt it is a net increase of 13.8 million which is mainly driven by defect of the M&A.

Speaker #1: Down compared to the 17.4 million of year end 2025 following the divestment of part of the stake. And another 1.1 million which is related to the non-monetary debts for let's say basically consideration to be paid in treasury shares already owned by the company.

Speaker #1: For a total of about 26 million. Of which 9.9 million are related to earn outs. And then there is let's say 2.4 million of capital increase in minority owned companies.

Speaker #1: The purchase of treasury shares for 3.5 million the dividend payment of 4.4 million occurred in the second quarter of the year. And defect of the financial charges net of the financial income for 4.1 million.

Speaker #1: For a total of about 26 million. Of which 9.9 million are related to earn outs. And then there is let's say 2.4 million of capital increase in minority owned companies.

Speaker #1: So the overall let's say disbursement just listed more than compensate the very positive cash generation coming from operation six month of 2026. If we look at the balance sheet with a comparison between 2026 and year end 2025 in terms of fixed asset as of June 2026 the total fixed asset amounted to approximately 255 million.

Speaker #1: The purchase of treasury shares for 3.5 million. The dividend payment of 4.4 million recorded in the second quarter of the year. And the effect of the financial charges net of the financial income for 4.1 million.

Speaker #1: So the overall let's say disbursement just listed. More than let's say the cash generation coming from operation during the first six month of 2026.

Speaker #1: This represents an increase of €11 million compared to year-end 2025. Intangible fixed assets amounted to about €200 million, with a net annual increase of €18 million compared to 2025.

Speaker #1: If we look at the balance sheet with a comparison between end of June 2026 and year end 2025 in terms of fixed asset as of June 2026 the total fixed asset amounted to approximately 255 million.

Speaker #1: Within this category goodwill accounted for 141 million at June 2026 with a net increase of about 11 million compared to the previous year following the acquisition of the period.

Speaker #1: Representing an increase of 11 million compared to year end 2025. Intangible fixed asset amounted to about 200 million. With a net annual increase of 18 million compared to 2025.

Speaker #1: The remaining items consist mainly of customer relationship and network properties assets allocated from goodwill for a total net book value of 54 million. Of which 6.5 million of IP and 7.3 million of customer relationship were allocated from goodwill during the first six month of 2026.

Speaker #1: Within this category goodwill accounted for 141 million at June 2026 with a net increase of about 11 million compared to the previous year following the acquisition of the period.

Speaker #1: In terms of tangible fixed asset as of June 2026 the amount that about 33 million in line with year end 2025 and the balance mainly consists of office and car lease recognized under IFRS 16 for a total of 18 million.

Speaker #1: One building with a net book value of about 4 million plant and machines with a net book value of 3 million and laptop and other electronic equipments for a total of 3 million.

Speaker #1: In terms of tangible fixed asset as of June 2026 the amounted at about 33 million. In line with year end 2025 and the balance mainly consists of office and car lease recognized under IFRS 16 for a total of 18 million.

Speaker #1: Other fixed assets as of June 2026 amounted to about €22 million, with a net decrease of about €6 million compared to the previous year.

Speaker #1: And this balance this balance mainly included investment in bank with a fair value of 9.9 million with a decrease of 7.5 million following the divestment of part of the TXT position the position of TXT in bank occurred in May 2026.

Speaker #1: One building with a net book value of about 4 million. Plant and machines with a net book value of 3 million. And laptop and other electronic equipments for a total of 3 million.

Speaker #1: The other fixed asset as of June 2026 amounted to about 22 million. With a net decrease of about 6 million compared to the previous year.

Speaker #1: Then the remaining amount consists of investment in unconsolidated for 8 million with an increase of 1.1 million compared to the year end 2025. And other minor amounts linked to security deposits on buildings rented out and referral tax assets.

Speaker #1: And this balance the balance mainly included investment in Banca di Fucino with a fair value of 9.9 million. With a decrease of 7.5 million following the divestment of part of the TXT position.

Speaker #1: Looking at the networking capital of the company the overall change is about decrease of 1 million. And in terms of trade receivable with customer it increase at a lower rate compared to top line with improved DSO.

Speaker #1: The position of TXT in Banca di Fucino occurred in May 2026. Then the remaining amount consists of investment in unconsolidated subsidiaries for 8 million.

Speaker #1: With an increase of 1.5 million compared to the year end 2025. And other minor amounts linked to security deposits on buildings rent out and assets.

Speaker #1: And in fact defect of some invoice discounting while work in progress related to fixed price project with customer increased by about 9 million in the first six month of the year.

Speaker #1: Looking at the net working capital of the company the overall change is about a decrease of 1 million. And in terms of trade receivable with customer it increase at a lower rate compared to top line with improved DSO and the effect the effect of some invoice discounting.

Speaker #1: Payable with suppliers let's say increase at a rate which is in line with the growth of of the business. Increase by about 9 million.

Speaker #1: In terms of other short-term receivables, the increase of €1 million in the first semester is mainly due to the increase in the expenses account, while in terms of tax payable, it recorded an increase of about €4 million in the first six months of the year, following the recognition of income tax for the period, which more than offset the reduction of the tax liabilities account.

Speaker #1: While work in progress related to fixed price project with customer increase by about 9 million in the first six month of the year. Payable with suppliers let's say increase at a rate which is in line with the growth of of the business.

Speaker #1: Increase by about 9 million. In terms of in terms of other short terms receivable the increase of 1 million in the first semester is mainly for the increase in the fair expenses account.

Speaker #1: Other payable increase by 4.4 million compared to year end 2025 mainly for the increase of the income related to unless subscription invoice during first quarter of the year and for the increase of payables with employees for a good holiday salaries bonuses and other components.

Speaker #1: While in terms of tax payable it's recorded an increase of about 4 million in the first six month of the year following the recognition of income tax of the period which more than offset reduction of the fair tax liabilities account.

Speaker #1: Looking at the severance and other non-current liabilities here is recorded the 12.7 million of provision for let's say the sorry the 11.2 million of let's say accrual under provision for discount charges related to the one off tax items which drive the increase of the overall balance from 9.6 million to 20.8 million.

Speaker #1: Other payable increase by 4.4 million compared to year end 2025 mainly for the increase of the fair income related to unnecessary subscription invoice during first quarter of the year.

Speaker #1: And for the increase of payables with employees for approved holiday salaries bonuses and other components. Looking at the severance and other non-current liabilities here is recorded the 12.7 million of provision for let's say the sorry the 11.2 million of let's say accrual under provision for risk and charges related to the one-off tax items which derive the increase of the overall balance from 9.6 million to 20.8 million.

Speaker #1: And in terms of shareholder equity the reduction is mainly related to defect of the repurchase of treasury shares for the dividend of 4.4 million.

Speaker #1: And for let's say the negative reported net results of about 1 million following the accrual for the one off tax item. Moving to the next slide we have let's say display in this slide destruction as of end of June 2026 which is basically in line with the previous call with the year end with laser line being the financial vehicle of chairman Rico Mani.

Speaker #1: And in terms of shareholder equity the reduction is mainly created to the effect of the repurchase of treasury shares for the dividend of 4.4 million.

Speaker #1: Monitoring percent of TXT managers who are of course top management including CEO but also all the seller part of the M&A plan that was let's say undertaken over the last six years for which TXT pay consideration in treasury shares.

Speaker #1: And for let's say the negative reported net results of about 1 million following the accrual for the one-off tax item. Moving to the next slide we have let's say display in this slide the shareholder structure as of end of June 2026 which is basically in line with the previous call and with the year end with laser line being the financial vehicle of chairman Enrico Mani.

Speaker #1: So the selling manager became let's say shareholder of the group and currently owning overall 24% stake in TXT. Then there is global asset management owning approximately 3% of TXT treasury share for about 3% and the markets with 40%.

Speaker #1: Monitoring percent of TXT managers who are of course top management including CEO but also all the seller part of the M&A plan that was let's say undertaken over the last six years.

Speaker #1: In terms of performance of the TXT stock during the first semester 2026 TXT share price reached the high of 38 as of June 8th 2026 and the low of 23.85 on February 16 2026.

Speaker #1: For which TXT pay part of the consideration in treasury shares. So the selling manager became let's say shareholder of the group and they are currently owning overall a 24% stake in TXT.

Speaker #1: At the end of June 2026, the share price was €37.25 per share. As of June 30, 2026, treasury shares are approximately 415,000 shares, representing 3.2% of issued share capital.

Speaker #1: Then there is LDO Global Asset Management owning approximately 3% of TXT. Treasury share for about 3% and the markets with 40%. In terms of performance of the TXT stock during the first semester 2026 TXT share price reached the high of 38 as of June 8th 2026 and the low of 23.85 on February 16 2026.

Speaker #1: This compared to the 334,000 shares at end of the year 2025. So there is an increase which is the net between the executed buyback plan and this share transfer in the context of the M&A.

Speaker #1: In particular during the first half of 2026 30 TXT repurchase 120,000 shares at an average price of 28.73 euro per share for a total investment of approximately 3.5 million.

Speaker #1: At the hand of June 2026 the share price was 37.25 euro per share. As of June 30 2026 treasury share are approximately 415,000 shares representing 3.2% of issue share capital.

Speaker #1: And in terms of transfer of shares in May 2026 about 39,000 shares were transferred at an average price of 27.91 per share as consideration for M&A in M&A transaction.

Speaker #1: Following the end of the reporting period in July 2026 an additional 35,000 shares were transferred at the price of 31.91 euro per shares in connection with an acquisition completed during the second quarter of 2026.

Speaker #1: In particular during the first half of 2026 TXT reached 320,000 shares at an average price of 28.73 euro per share for a total investment of approximately 3.5 million.

Speaker #1: So, we are done with the financial section of this presentation. It's now time to go through the questions that we collected during this presentation.

Speaker #1: And in terms of transfer of shares in May 2026 about 39,000 shares were transferred at an average price of 27.91 per share as consideration for an M&A transaction.

Speaker #1: Thank you for your attention. I will maybe go to the if you agree Danielle I will maybe start the.

Speaker #1: Following the end of the reporting period in July 2026 an additional 35,000 shares were transferred at a price of 31.91 euro per shares in connection with an acquisition completed during the second quarter of 2026.

Speaker #2: Thank you Andrea. You can go through the Q&A. So everyone that wants to make any question they can write on the chat and we can answer.

Speaker #2: So we are already received some questions Andrea. If you can go through them publish and I can answer.

Speaker #1: So we are done with the financial section of this presentation. It's now time to go through the question that we collected during this presentation.

Speaker #1: Yes. You can already publish because you see the interface of the technology. So but I will read them loudly just in case they are not publicly available.

Speaker #1: Thank you for your attention. I will maybe go through the if you agree Daniele I will maybe start with the.

Speaker #1: The first is from Tomas Oniedo from Kepler. And the question is I'm going to read it. High on TXT digital edge the enterprise value paid was only euro 6.9 million for a business with 47 million of 2025 revenues.

Speaker #2: Thank you. You can go through the Q&A. So everyone that wants to make any question they can write on the chat and we can answer.

Speaker #1: Implying circa 0.15 times enterprise value on sales. Can you clarify GTS 2025 EBITDA and net profits since the enterprise value looks very low related to revenues?

Speaker #2: So we already received some questions Andrea if you can go through them publish and I can answer.

Speaker #1: Yes. You can already publish because you see that the interface of the technology. So it's different.

Speaker #1: We want to understand whether this reflects thin historic margins one off items or in general what's the reason.

Speaker #2: Okay.

Speaker #1: But I will read them loudly just in case they are not publicly available. The first is from Tommaso Nieto from Kepler. And the question is I'm going to read it.

Speaker #2: So the main reason that we are good negotiator in terms of beside the jokes let's say the acquisition was made also because our strategic reason to scale up a business that we already started standalone within other company of the books.

Speaker #1: "Hi. On TXT digital edge the enterprise value paid was only euro 6.9 million. For a business with 47 million of 2025 revenues. Implying circa 0.15 times enterprise value on sales.

Speaker #2: And for this reason we chose a company that can be totally managed by us. Differently from the past acquisition for which we aggregate also the management and let's say the structure in order to build on them because we already invested in the first in the second half of the last year and the first half of this year in a structure in management in sales team within TXT we look for a company that can be restructured and make grow and was an accelerator for us.

Speaker #1: Can you clarify GTS 2025 EBITDA and net profits since the enterprise value looks very low related to revenues? We want to understand whether this reflects fin historic margins one-off items or in general what's the reason?"

Speaker #2: So so we look for and we searched for contacts for delivery capability and we find in GC a perfect target also because they had some issues and they lost their main one of their shareholders and let's say managing director in the last part of the last year.

Speaker #2: And for this reason we chose a company that can be totally managed by us. Differently from the past acquisition which we agreed to management and let's say the structure in order to build on them because we already invested in the first in the second half of the last year and the first half of this year in a structure in management in a sales team within TXT we look for a company that can be restructured and make grow and was an accelerator for us.

Speaker #2: So we they were in a position to sell the company itself. The company in terms of volumes made big volumes but was positioned in the market as a small fish.

Speaker #2: Let's say our strategy and our business plan is built in order to also level up the business type of the company itself so historically the company was a small fish in the value chain of big projects in which also the reselling part of third parts software or hardware was prevalent as a historical business.

Speaker #2: So we looked for and we searched for contracts for delivery capability and we find in GCE a perfect target also because they had some issues and they lost their main one of their shareholders and let's say managing director in the last part of the last year.

Speaker #2: For us it's not interesting to be positioned like that that but to have more broader projects including also high value services within and we are planning in our budget for the second half of the year of the future is to have a company with a high level of value position of what we acquired.

Speaker #2: So we they were in a position to sell the company itself. The company in terms of volumes made big volumes but was positioned in the market as a small fish let's say.

Speaker #2: The historical margins of the acquired company were lower than the 10% we are declaring for the second half of the year. So we are speaking about 5% more or less.

Speaker #2: Our strategy and our business plan is built in order to also level up the business type of the company itself. So historically the company was a small fish in the value chain of big projects in which also the reselling part of third parts software or hardware was prevalent as a historical business.

Speaker #2: So this also taking into the account of the acquisition itself on the price we paid also parting to the fact that the company was let's say in very let's say strong position to sell sell.

Speaker #2: For us it's not interesting to be positioned like that but to have more broader projects including also high value services within and we are planning and our budget for the second half of the year and for the future company with of value proposition of what we acquired.

Speaker #2: So for us was a very good opportunity and for us a very good opportunity value for money to restructure and build up a new company with let's say a stronger value also in terms of projects and in terms of margin itself.

Speaker #2: So the the low price with respect to turnover is a mix of historical performances that will not be delivered in the new ecosystem we are building and for the fact that they needed some restructuring and they lost also some managers that was very important and so this is reflected into the price we paid.

Speaker #2: The historical margins of the acquired company were lower than the 10% we are declaring for the second half of the year. So we are speaking about 5% more or less.

Speaker #2: So this also taking into the account of the acquisition itself on the price we paid also adding to the fact that the company was let's say in very let's say strong position to sell sell.

Speaker #1: Thank you Danielle. I hope it was clear enough Tomaso. And then we have the next question from Andrea from Intermonte. Actually there are two questions.

Speaker #2: So for us was a very good opportunity and for us is a very good opportunity in value for money to restructure and build up a new company with let's say a stronger value also in terms of projects and in terms of margin itself.

Speaker #1: I will start with the first one. Are you planning an update with investors of your business plan?

Speaker #2: Yes. So so as discussed in the past with the financial community today this morning during the board of director we let's say the decided to plan it for before the end of the year so it will be around November.

Speaker #2: So, in the month of November, we will already have reported nine-month results, and of course, have strong visibility on the full-year results.

Speaker #1: Thank you. Daniele. I hope it was clear enough Tommaso. And then we have the next question from Andrea Randone from Intermonte. Actually there are two questions.

Speaker #2: We will present an update of the current, let's say, guidance for 2026 and 2027. Of course, the Digital Age, let's say, new initiative brings new values to the overall performance of the group and will be reflected in this update.

Speaker #1: I will start with the first one. Are you planning an update with investors of your business plan?

Speaker #2: Yes. So so as discussed in the past with the financial community today this morning during the board of director we let's say decided to plan it for before the end of the year so it will be around November.

Speaker #2: And of course we will give also a broader vision on new terms so we will include also in this update of the plan the visibility of 2028.

Speaker #2: So with respect to the current plan that is 2025 to 2027. So mid of November and it will be formalized with a communication just after summer because also today is one of the last day and the team will be back end of August and we will send invitation and the information about location and correct date by the end of the month.

Speaker #2: So in the November month in which we will have already the reported nine month results and a strong visibility on the full year results of course.

Speaker #2: We will present an update of the current let's say guidance for the 2026 2027. Of course the digital age let's say new initiative brings new values to the overall performance of the group and will be reflected in this update.

Speaker #1: Thank you Danielle. I will go through the second question from Andrea. If my calculations are correct the very good profitability you recorded in the second quarter of 2026 comes after a particularly strong marginality in smart solution.

Speaker #2: And of course we will give also a broader vision on midterm. So we will include also in this update of the plan the visibility of 2028.

Speaker #1: Circulatory 1% coupled with a quite weak software engineering. About 10%. Can you provide the comments on the strengths and updates us with a full year outlook?

Speaker #2: In terms of let's say analytic calculation of course Randone is a very good calculator about numbers but let's say the underlying motivation that was let's say shown is correct and of course the overall good results in terms of margins is driven by the growth of margins into the smart solution.

Speaker #1: Thank you Daniele. I will go through the second question from Andrea. If my calculations are correct the very good profitability you recorded in the second quarter of 2026 comes after a particularly strong marginality in smart solution circulatory 1% coupled with a quite weak software engineering about 10%.

Speaker #2: This is because the growth of the turnover of smart solutions and that is mostly driven by new business and new selling new licenses. So means margins with respect to additional investment.

Speaker #1: Can you provide the comments on the strengths and updates us with a full year outlook?

Speaker #2: So we started to invest by hiring essentially high profile people managers and specifically in sales and accounting large customer accounting and also some technical strong let's say profiles that we added and we hired and we paid in the first half of the year.

Speaker #2: Of course without the revenues coming from the acquisition that we did in July. Originally we planned to close the deal also for GCE earlier but at the end we formalized it in July this is because the price so the price was good the negotiation was harder than expected in order to keep let's say valuable the price itself but of course this has an impact in terms of cost that we sustained in the first half of the year and in the second half of the year will be diluted with the new volumes that will be added.

Speaker #2: It's not so weak in terms of business the system engineering part but it includes also some impact coming from investments that we are doing in particular the scale up of the structure to manage and to drive the digital age initiative so we started to invest by hiring essentially people managers and specifically in sales and accounting large customer accounting and also some technical strong let's say profiles that we added and we hired and we paid in the first half of the year of course without the revenues coming from the acquisition that we did in July.

Speaker #2: Of course we are budgeting let's say a better results specifically in turnover we expect to close with this 15% to keep stable and sustainable this 15% so to continue to invest in our solution in order to continue to have a sustainable grow on a mid long term.

Speaker #2: Originally we planned to close the deal also for GTE earlier but at the end we formalized it in July this is because the price so the price was good the negotiation was harder than expected in order to keep let's say valuable the price itself but of course this has an impact in terms of cost that we sustain in the first half of the year and in the second half of the year will be diluted with the new volumes that will be added.

Speaker #2: Of course in terms of turnover 470 is a quite let's say conservative because we are working on an internal budget that is more near to half a billion than to 470.

Speaker #2: But there are a lot of risk connected to businesses some of the areas are not still ramping up as we expected like for example the digital payments initiative for which we have good very good pipeline in terms of opportunity but revenue still it's a question mark we can start to book the revenue during this year when and so the contribution will come on a mid term for sure but for the second half of the year we are still let's say converting the pipeline into revenues.

Speaker #2: In terms of outlook overall so I already give some indication during the presentation so we didn't change the overall outlook to have more than 470 million in terms of turnover and 15% of it with the margin of course we are budgeting let's say better results specifically in turnover we expect to close with this 15% to keep stable and sustainable this 15% so to continue to invest in our solution in order to continue to have a sustainable grow on a mid long term of course in terms of turnover 470 is quite let's say conservative because we are working on an internal budget that is more near to half a billion than to 470 but there are a lot of risk connected to businesses some of the areas are not still ramping up as we expected like for example the digital payments initiative for which we have good very good pipeline in terms of opportunity but revenue still it's a question mark we can start to book the revenue during the year and so the contribution will come on a midterm for sure but for the second half of the year we are still let's say converting the pipeline into revenues and also for this reason let's say the overall outlook will be turnover better than 470 and internal budget more near to half a billion of course that it's an internal let's say outlook of course not the official one that will be better than 470 that is a very good results looking forward and of course during the capital markets day in November the visibility will be better for sure.

Speaker #2: And also for this reason let's say the overall outlook will be turnover better than 470 and internal budget more near to half a billion.

Speaker #2: Of course that it's an internal let's say outlook. Of course not the official one that will be better than 470 that is a very good results looking forward.

Speaker #2: And of course during the capital markets day in November the visibility will be better for sure.

Speaker #1: Yes. Thank you Danielle. If I can only add something here. So of course also the growth of software engineering in tech and gaming which was stronger let's say than expected has an impact on the overall division margin and let's say stock but also currently the profitability on such let's say vertical it's lower compared to the average of the software engineering division.

Speaker #1: And for the smart solution of course there is also the impact of the acquisition especially in the second quarter with the smart routes business which basically is providing EBITDA more than revenues because 60 to its subsidiary pace was already acting as prime contractor and basically there are significant royalties that are not longer paid to outside let's say third parties but are all internal.

Speaker #1: So this also drove a let's say material growth of the profitability at the smart solution level. I will continue with the next question. We have two question from Andrea Bonfa from Bank Across.

Speaker #1: Yes. Thank you Daniele. If I can only add something here. So of course also the growth of software engineering in tech and gaming which was stronger let's say than expected has an impact on the overall division margin and let's say historical but also currently the profitability on such let's say vertical it's lower compared to the average of the software engineering division and for the smart solution of course there is also the impact of the acquisition especially in the second quarter with the smart trust business which basically is providing ABTDA more than revenues because 60 through its subsidiary pace was already acting as prime contractor and basically there are significant royalties that are not longer paid to upside let's say third parties but are all internal.

Speaker #1: I will start reading the first one. The contribution expected from GCE digital edge for second half of 2026 and 2027 are entirely additional or include some 60 activities already present.

Speaker #2: So in terms of values 30 million and 3 million of 30 million turnover and 3 million of EBITDA are the new perimeter. So additional to the activity that was already let's say planned in our budget as a startup activity we have in our let's say portfolio.

Speaker #2: The outlook that we gave for 2027 is already including instead the part we are let's say we developed before in TXT that is worth more or less 12 million of turnover.

Speaker #2: More or less this part that is included in the 80 million. So 80 million is additional perimeter plus this 12 million plus the growth that we will do in this part.

Speaker #1: I will start reading the first one. The contribution expected from GTE digital edge for second half of 2026 and 2027 are entirely additional or include some 60 activities already present.

Speaker #2: I hope that I answered to this question.

Speaker #1: Yeah. Thank you Danielle. Then we will the second question from Andrea from Bank Across. The 31% EBITDA margin of smart solution in second quarter 2026 looking at 26% achieved from that division in the second half of 2025.

Speaker #1: It seems that the 30% looks sustainable also in the second half 2026 and going forward. Do you agree?

Speaker #2: The outlook that we gave for 2027 is already including instead the part we are let's say we developed before in TXT that is worth more or less 12 million of turnover.

Speaker #2: I agree but we can do also better. In some cases so specifically as said by Andrea there is a good contribution from the acquisition that we did in North America because we acquired a partner for which they were subcontractor of us.

Speaker #2: So in terms of balance sheet of course we are consolidating the margins more than the revenue itself because we have no cost to play the subsid the subcontractor but we have the asset within our portfolio.

Speaker #2: More or less this part that is included in the 80 million. So 80 million is additional perimeter plus this 12 million plus the growth that we will do in this part.

Speaker #2: And in particular this part is forecasted to grow because you know we already communicated to have signed two important deals with North American Airlines two North American Airlines that will in the first half of the year they started to give contribution to the overall consolidated revenues but they are expected to grow in the second half of the year.

Speaker #2: I hope that I answered to this question.

Speaker #1: Yeah. Thank you Daniele. Then we have the second question from Andrea from Bank Acros. On the 31% EBITDA margin of smart solution in second quarter 2026 looking at 26% achieved from that division in the second half of 2025.

Speaker #1: It seems that the 30% looks sustainable also in the second half 2026 and going forward. Do you agree?

Speaker #2: So, the 30% that Andrea looks at as sustainable is confirmed, and probably we can do a little bit better if we scale up with these airline deals in the proper way.

Speaker #2: I agree that we can do also better in some cases. So specifically as said by Andrea there is a good contribution from the acquisition that we did in North America because we acquired a partner for which they were subcontractor of us.

Speaker #1: And if there are no drawbacks on other businesses that are said that also the last quarter 2025 was particularly strong for the smart solution business for some perpetual licenses deal closed exactly in the fourth quarter of the last year.

Speaker #1: So to replicate let's say the same performance of last quarter of 2025 plus a group let's say factor will be a bit challenging but of course we will do our best in order to outperform the performance of in terms of profitability EBITDA margin of the second half of the previous year.

Speaker #2: So Andrea is more financial oriented are more business oriented and optimistic on this case also because let's say we are a good pipeline we have quite good visibility so I think that we can manage to continue by keeping these results.

Speaker #2: So the 30% that Andrea looks sustainable is confirmed and probably we can do also a little bit more better if we scale up with this airline deals in in the proper way.

Speaker #1: Thank you Danielle. If I'm not wrong there are no further questions. So

Speaker #2: And if there are no drawbacks on other businesses that are on board.

Speaker #2: So okay. I would like to thanks everybody for attending this meeting also during summer probably most of you are on a beach or on a boat or whatever.

Speaker #1: Yes. And it also the last quarter 2025 was particularly strong for the smart solution business for some perpetual licenses deal closed exactly in the fourth quarter of the last year.

Speaker #2: We are in office I hope not so long longer again. Now what I want to say is that let's say half first half of the year was very good in terms of overall results.

Speaker #1: So to replicate let's say the same performance of last quarter of 2025 plus a growth let's say factor will be a bit challenging but of course we will do our best in order to outperform the performance of in terms of profitability EBITDA margin of the second half of the previous year.

Speaker #2: For us record results in terms of turnover profitability so very good let's say implementation of a strategy good execution of the strategy that brings good results.

Speaker #2: So Andrea is more financial oriented are more business oriented and optimistic on this case also because let's say we have a good pipeline we have quite good visibility so I think that we can manage to continue by keeping these results.

Speaker #2: Still the good as to come. So because you know we have to consider also the performances on fully year basis. For sure the digital edge initiative we'll have a strong contribution for the second half of the year.

Speaker #2: So if this first quarter is good we are looking forward for the full year results with a very good let's say sentiment. Of course our project is a long term one in our industrial plan already we disclosed our let's say long term view and we will update in November and so we are working very strongly and we are continuing to invest in order to create value on a mid long term.

Speaker #1: Thank you Daniele. If I'm not wrong there are no further questions. So okay. I would like to thank everybody for attending this meeting. Also during summer probably most of you are on a beach or on a boat or whatever.

Speaker #1: We are in office I hope not so long longer again. Now what I want to say is that let's say first half of the year was very good in terms of overall results.

Speaker #2: So I thank you again for attending this conference call. I hope you enjoy this holiday season we will continue since we are very global now I don't know in every country someone is already finished with holidays another they are starting so as a TXT team we will continue to push in order to meet and to do better from the guidance that we disclose to the market itself.

Speaker #1: For us record results in terms of turnover profitability so very good let's say implementation of a strategy good execution of the strategy that brings good result.

Speaker #1: Still the good has to come. So because you know we have to consider also the performances on a full year basis. For sure the digital edge initiative will have a strong contribution for the second half of the year.

Speaker #2: So thank you very much and let's update all together on the next conference call and in the main events that we will attend and of course on the new let's say update of the capital market day we are planning to do in November.

Speaker #1: So if this first quarter is good we are looking forward for the full year results with a very good let's say sentiment. Of course our project is a long-term one in our industrial plan already we disclosed our let's say long-term view and we will update in November and so we are working very strongly and we are continuing to invest in order to create value on a mid long term.

Speaker #2: Thank you again. Thank you Andrea.

Speaker #1: Thank you, Danielle. Thank you to everyone who is on the call, and see you for the next call.

Speaker #1: So I thank you again for attending this conference call. I hope you enjoy this holiday season. We will continue since we are very global now.

Speaker #1: I don't know in every country someone is already finished with holidays another they are starting so as a TXT team we will continue to push in order to meet and to do better from the guidance that we disclose to the market itself.

Speaker #1: So thank you very much and let's update all together on the next conference call and in the main events that we will attend and of course on the new let's say update of the capital market day we are planning to do in November.

Speaker #1: Thank you again. Thank you Andrea. Thank you Daniele. Thank you everyone who is on the call and see you for the next call.