Half Year 2026 GEA Group AG Earnings Call

August 10, 2026

Operator: Good day, and thank you for standing by. Welcome to the GEA Group AG Q2 2026 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one and one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Oliver Luckenbach, Head of IR. Please go ahead.

Operator: Good day, and thank you for standing by. Welcome to the GEA Group AG Q2 2026 Conference Call. I would now like to hand the conference over to your speaker today, Oliver Luckenbach, Head of IR. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the GEA Group AG Q2 2026 conference call. At this time, all participants are in a listen-only mode.

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

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

Speaker #1: I will now hand the conference over to your speaker today, Oliver Luckenbach, Head of IR. Please go ahead.

Speaker #2: Yeah, thank you very much, and good afternoon, ladies and gentlemen. Thank you for joining us today for our second quarter 2026 earnings conference call.

Oliver Luckenbach: Thank you very much and good afternoon, ladies and gentlemen, and thank you for joining us today for our Q2 2026 earnings conference call. With me on the call are Stefan Klebert, our CEO, and Alexander Kocherscheidt, our CFO. Stefan will begin today's call with the highlights of the Q2, Alexander will cover the business and financial review before Stefan takes over again for the Outlook 2026. Afterwards, we open up the call for the Q&A session. Please be aware of the cautionary language that is included in our safe harbor statement as in the material that we have distributed today. With that, hand over to Stefan.

Speaker #2: With me on the call are Stefan Klebert, our CEO, and Alexander Kocherscheid, our CFO. Stefan will begin today’s call with a highlight of the second quarter, and Alexander will then cover the business and financial review, before Stefan takes over again for the Outlook 2026.

Speaker #2: Afterwards, we will open up the call for the Q&A session. Please be aware of the cautionary language included in our Safe Harbor statement, as well as in the materials we have distributed today.

Speaker #2: And with that, I hand over to Stefan.

Speaker #3: Thank you, Oliver, and good afternoon, everybody. It's my pleasure to welcome you to our conference call today. Before starting with the review of our second quarter results, let me share with you some important news.

Stefan Klebert: Thank you, Oliver, and good afternoon, everybody. It's my pleasure to welcome you to our conference call today. Before starting with the review of our Q2 results, let me share with you some important news, which we published last week. The executive board has resolved that we will start another share buyback program in the amount of up to EUR 500 million. Keeping in mind that we have already bought back and canceled shares with an aggregated volume of EUR 700 million in the last five years. The new program brings us to a share buyback volume of EUR 1.2 billion between 2021 and 2027. An impressive volume in relation to our market cap. The new program will be split into two tranches and will run until the end of 2027.

Speaker #3: Which we published last week. The Executive Board has resolved that we will start another share buyback program in the amount of up to €500 million.

Speaker #3: Keeping in mind that we have already bought back and canceled shares with an aggregated volume of 700 million euro in the last 5 years, the new program brings us to a share buyback volume of 1.2 billion euro between 2021 and 2027.

Speaker #3: An impressive volume in relation to our market cap. The new program will be split into two tranches and will run until the end of 2027.

Speaker #3: The first tranche of the program, worth up to €250 million, starts tomorrow and will be executed over the next seven months. Like the last program, all repurchased shares will be canceled once the program has been completed.

Stefan Klebert: The first tranche of the program worth up to EUR 250 million starts tomorrow and will be executed over the next seven months. Like the last program, all repurchased shares will be canceled once the program has been completed. This news clearly demonstrate our conviction in GEA's growth opportunities. We are growing our top line, improving our profitability further, and making continuous progress towards our Mission 30 targets. Thanks to our strong cash generation, the share buyback is not limiting our investment, R&D spendings, or potential acquisitions. As in previous programs, there is an ESG feature linked to the buyback. We will donate part of the guaranteed outperformance, which is the difference between the purchasing price and the volume-weighted average price of our shares over the duration of the program, to the Deutsche Universitätsstiftung.

Speaker #3: This new news clearly demonstrates our conviction in GEA's growth opportunities. We are growing our top line, improving our profitability further, and making continuous progress towards our Mission 30 targets.

Speaker #3: Thanks to our strong cash generation, the share buyback is not limiting our investments, R&D spending, or potential acquisitions. As in previous programs, there is an ESG feature linked to the buyback.

Speaker #3: We will donate part of the guaranteed outperformance, which is the difference between the purchasing price and the volume-weighted average price of our shares over the duration of the program, to the Deutsche Universität Stiftung.

Speaker #3: It will be roughly 250,000 euro, which will be used to support exceptionally talented students in STEAM education. I am turning now to our second quarter release.

Stefan Klebert: It will be roughly EUR 250,000, which will be used to support exceptionally talented students in STEAM education. I am turning now to our Q2 release. After having already reported a strong Q1, we accelerated top-line growth and improved profitability further in the Q2. Order intake grew significantly by 14.2% year-over-year to EUR 1.5 billion. This performance was driven by strong growth in all order sizes. Base orders, however, had by far the highest absolute growth contribution. Large orders, though orders above EUR 15 million, had a total value of EUR 34 million, while no large order had been booked in the prior year quarter. Sales grew strongly by 10% to EUR 1.4 billion. Organic sales growth was even higher at 11.0%. EBITDA before restructuring expenses increased by an excellent 15.6% year-over-year to EUR 251 million. The corresponding EBITDA margin improved to 17.4%.

Speaker #3: After having already reported a strong first quarter, we accelerated top line growth and improved profitability further in the second quarter. Order intake rose significantly by 14.2% year over year, to 1.5 billion euro.

Speaker #3: This performance was driven by strong growth in all order sizes. Base orders, however, had by far the highest absolute growth contribution. Large orders, though orders above 15 million euro, had a total value of 34 million euro, while no large order had been booked in the prior year quarter.

Speaker #3: Sales grew strongly by 10% to €1.4 billion. Organic sales growth was even higher at 11.0%. EBITDA before restructuring expenses increased by an excellent 15.6% year over year to €251 million. The corresponding EBITDA margin improved to 17.4%.

Speaker #3: This marks a new record level for GEA. Return on capital employed continued to rise from an already high level in the prior-year quarter to 36.8% in the quarter.

Stefan Klebert: This marks a new record level for GEA. Return on capital employed continued to rise from an already high level in the prior year quarter to 36.8% in the quarter. This marks a new record, too. Due to an excellent cash generation in the quarter, net liquidity turned from a net debt position at the end of Q2 2025 into a net cash position of EUR 71 million at the end of Q2 2026. To sum it up, a very strong Q2 with improvements in all key performance indicators. Due to this very positive operating performance and confident expectations for the remainder of this year, we raised our guidance for the fiscal year 2026, as announced on 21 July.

Speaker #3: This marks a new record, too. Due to excellent cash generation in the quarter, net liquidity turned from a net debt position at the end of the second quarter in 2025 into a net cash position of €71 million at the end of the second quarter in 2026.

Speaker #3: To sum it up, a very strong second quarter with improvements in all key performance indicators. Due to this very positive operating performance and confident expectations for the remainder of this year, we raised our guidance for fiscal year 2026, as announced on the 21st of July.

Speaker #3: We are now guiding organic sales growth to be between 6% and 8% for the full year 2026, up from the prior range of 5% to 7%.

Stefan Klebert: We are now guiding organic sales growth to be between 6% and 8% for the full year 2026, up from the prior range of 5% to 7%. The new range is well above our midterm target of more than 5% organic sales growth. EBITDA margin before restructuring expenses is expected to be in the range of 17% to 17.4%, up from the prior guidance of 16.6% to 17.2%. This brings us already close to the low end of our Mission 30 target, even if you have to consider that this year's EBITDA margin is before restructuring expenses, while from next year onwards, the EBITDA margin is as reported. The new guidance for return on capital employed is between 36% and 40%, clearly above the prior range of 34% to 38%. As you can see, we are once again delivering what we promised or even more than that.

Speaker #3: The new range is well above our midterm target of more than 5% organic sales growth. EBITDA margin before restructuring expenses is expected to be in the range of 17 to 17.4%, up from the prior guidance of 16.6 to 17.2%.

Speaker #3: This brings us already close to the low end of our mission 30 target, even if you have to consider that this year's EBITDA margin is before restructuring expenses, while from next year onwards the EBITDA margin is as reported.

Speaker #3: The new guidance for return on capital employed is between 36% and 40%, clearly above the prior range of 34% to 38%. As you can see, we are once again delivering what we promised, or even more than that.

Speaker #3: This is one of my favorite charts. Once again, we have been recognized as one of the world's most sustainable companies by TIME Magazine and Statista.

Stefan Klebert: This is one of my favorite charts. Once again, we have been recognized as one of the world's most sustainable companies by "Time" magazine and Statista. Over 5,000 companies were evaluated globally to identify the top 750 companies, and GEA not only made it to rank 17 globally but was ranked first among all German companies. This is a special honor for everyone at GEA, as it underscores our position as a real frontrunner in sustainability. It is exactly this distinctive aspect, sustainability as a driver of long-term value creation, that we strive to communicate to the capital markets. Over the past few years, our investor relations team, together with my executive board colleague, Dr. Nadine Sterley, has done a fantastic job in transparent and understandable ESG communication. It is especially rewarding to see that this work has been recognized and appreciated by you, our investors and analysts.

Speaker #3: Over 5,000 companies were evaluated globally to identify the top 750 companies, and GEA not only made it to rank 17 globally, but was ranked first among all German companies.

Speaker #3: This is a special honor for everyone at GEA, as it underscores our position as a real front-runner in sustainability. And it is exactly this distinctive aspect—sustainability as a driver of long-term value creation—that we strive to communicate to the capital markets.

Speaker #3: Over the past few years, our investor relations team together with my executive board colleague, Dr. Nadine Sterlay, has done a fantastic job in transparent and understandable ESG communication.

Speaker #3: It is especially rewarding to see that this work has been recognized and appreciated by you—our investors and analysts. Receiving the German Investor Relations Award for Best ESG Communication is a great honor to us.

Stefan Klebert: Receiving the German Investor Relations Award for Best ESG Communication is a great honor to us. It reflects something we truly care about, engaging openly with our stakeholders and bringing our shareholders along on our journey towards an even more sustainable company. I would like to take this opportunity to thank you for your vote, your trust, and your continued support. We see this award not only as recognition of what we have achieved, but also as encouragement to keep pushing ahead on our journey, guided by our purpose, engineering for a better world. Now, I hand over to Alexander, who will give you more insights into our performance in Q2.

Speaker #3: It reflects something we truly care about: engaging openly with our stakeholders and bringing our shareholders along on our journey toward an even more sustainable company.

Speaker #3: I would like to take this opportunity to thank you for your vote, your trust, and your continued support. We see this award not only as recognition of what we have achieved, but also as encouragement to keep pushing ahead on our journey, guided by our purpose: engineering for a better world.

Speaker #3: And now I hand over to Alexander, who will give you more insights into our performance in the second quarter.

Speaker #2: Thank you very much, Stefan, and a warm welcome from me as well, ladies and gentlemen. I will now walk you through our business and financial performance in the second quarter.

Alexander Kocherscheidt: Thank you very much, Stefan, and a warm welcome from me as well, ladies and gentlemen. I will now walk you through our business and financial performance in Q2. Let's have a closer look at the group performance. As Stefan has already highlighted, we had an excellent Q2 throughout all key performance indicators. Order intake increased significantly by 15.4% organically, with all divisions contributing to this positive development except for PFA. From a customer industry perspective, once again, and for several quarters in a row, dairy processing and dairy farming continue to be strong. In addition, food and other industries were showing good demand. Translational FX effects became smaller. While we had an adverse translational FX effect of more than 3% in Q1, it shrunk to 1% in Q2.

Speaker #2: Let's have a closer look at the group performance. As Stefan has already highlighted, we had an excellent second quarter across all key performance indicators.

Speaker #2: Order intake increased significantly by 15.4% organically, with all divisions contributing to this positive development except for PFA. From a customer industry perspective, once again and for several quarters in a row, Dairy Processing and Dairy Farming continued to be strong.

Speaker #2: In addition, the food and other industries were showing good demand. Translational FX effects became smaller. While we had an adverse translational FX effect of more than 3% in the first quarter, it shrank to 1% in the second quarter.

Speaker #2: Sales grew organically by 11.0%, driven by excellent performance in both new machine and service sales. Organic growth in the new machine business reached 11.6%, supported by double-digit growth rates in almost all divisions.

Alexander Kocherscheidt: Sales grew organically by 11.0%, driven by excellent performance in both new machine and service sales. Organic growth in the new machine business reached 11.6%, supported by double-digit growth rates in almost all divisions. The service business continued its growth trajectory and reported an organic growth rate of 10.2%. This marks the 23rd quarter, such a high number, it's difficult. 23rd quarter in a row with organic service sales growth. An impressive performance. On the back of the slightly stronger growth in the new machine business, the service sales share declined by 0.5 percentage points to 39.6%. EBITDA before restructuring expenses rose by EUR 23 million to EUR 251 million, resulting in a corresponding year-over-year margin expansion of 0.9 percentage points to 17.4%. Significantly higher volume and better gross margin were the drivers of the profitability increase. Moving on to the divisional performance.

Speaker #2: The service business continued its growth trajectory and reported an organic growth rate of 10.2%. This marks the 23rd quarter with such a high number.

Speaker #2: It's difficult. Twenty-third quarter in a row with organic service sales growth—an impressive performance. On the back of the slightly stronger growth in the new machine business, the service sales share declined by 0.5 percentage points to 39.6%.

Speaker #2: EBITDA before restructuring expenses rose by €23 million to €251 million, resulting in a corresponding year-over-year margin expansion of 0.9 percentage points to 17.4%.

Speaker #2: The significantly higher volume and better growth margin were the drivers of the profitability increase. Moving on to the divisional performance, I will start with Pure Flow Processing, which reported very strong top-line growth.

Alexander Kocherscheidt: I will start with PureFlow Processing, which reported very strong top-line growth, so order intake and sales, while the EBITDA margin declined slightly at a high level. Order intake growth organically by 9.8% year-over-year, driven by orders below EUR 5 million. Demand was strongest in food, dairy processing, and marine, but also beverage, energy, and distribution and storage contributed to the impressive growth rate. Thus, order intake strength was broad-based across different customer industries. Organic sales grew significantly by 12.9% year-over-year, driven by very strong growth rates in new machines and service business. As the new machine business grew even more than service sales this quarter, the service sales share decreased on a high level from 47.0% in Q2 2025 to 46.2% in Q2 2026.

Speaker #2: So, order intake and sales increased, while the EBITDA margin declined slightly but remained at a high level. Order intake rose organically by 9.8% year over year, driven by orders below €5 million.

Speaker #2: Demand was strongest in food, dairy processing, and marine, but also beverage, energy, and distribution and storage contributed to the impressive growth rate. Thus, order intake strength was broad-based across different customer industries.

Speaker #2: Organic sales grew significantly by 12.9% year over year, driven by very strong growth rates in new machines and service business. As the new machine business grew even more than service sales this quarter, the service sales share decreased, albeit at a high level, from 47.0% in the second quarter of 2025 to 46.2% in the second quarter of 2026.

Speaker #2: EBITDA before restructuring expenses rose by 13 million euro year over year, to 145 million euro, driven by higher gross profit, which was partly offset by increased operating costs, such as higher selling expenses in line with our order intake development.

Alexander Kocherscheidt: EBITDA before restructuring expenses rose by EUR 13 million year-over-year to EUR 145 million, driven by higher gross profit, which was partly offset by increased operating costs, such as higher selling expenses in line with our order intake development. The corresponding EBITDA margin declined on a high level by 0.5 percentage points year-over-year to 27.5% in the quarter. Turning to Nutrition & Plant Engineering, which caught up strongly from a slow Q1. The division reported impressive numbers across all key performance indicators. Significant order intake growth, strong sales, as well as a substantial EBITDA margin expansion. As a result of this performance, all key indicators turned from a negative performance in the Q1 to a positive one in the H1. Order intake for the Q2 was up organically by more than 40%.

Speaker #2: The corresponding EBITDA margin declined, at a high level, by 0.5 percentage points year over year to 27.5% in the quarter. Turning to Nutrition Plant Engineering, which caught up strongly from a slow first quarter.

Speaker #2: The division reported impressive numbers across all key performance indicators: significant order intake growth, strong sales, as well as a substantial EBITDA margin expansion. As a result of this performance, all key indicators turned from a negative performance in the first quarter to a positive one in the first half.

Speaker #2: Order intake for the second quarter was up organically by more than 40%. This was driven by a very strong performance of orders between €1 million and €15 million, as well as two large orders from the dairy processing industry, which totaled €34 million.

Alexander Kocherscheidt: This was driven by a very strong performance of orders between 1 and EUR 15 million, as well as two large orders from the dairy processing industry, which totaled EUR 34 million. The prior year quarter contained no large orders. In terms of customer industries, dairy processing remains strong. This is not only driven by the two large Asian dairy processing orders. Even without these two large orders, this custom industry would have been a strong growth contributor. In addition, pharma showed good demand in the quarter. Sales increased organically by 10.6% year-over-year. Service sales continued its growth trajectory, increasing organically by 11.5% year-over-year. At the same time, new machine sales rebounded as expected and promised after reporting a decline in the Q1. As mentioned already in our Q1 call, we expected an improvement in new machine sales kicking in in the Q2.

Speaker #2: The prior-year quarter contained no large orders. In terms of customer industries, dairy processing remained strong, and this is not only driven by the two large Asian dairy processing orders.

Speaker #2: Even without these two large orders, this customer industry would have been a strong growth contributor. In addition, pharma showed good demand in the quarter.

Speaker #2: Sales increased organically by 10.6% year over year. Service sales continued its growth trajectory, increasing organically by 11.5% year over year. At the same time, new machine sales rebounded, as expected and promised, after reporting a decline in the first quarter.

Speaker #2: As mentioned, already in our first quarter call, we expected an improvement in new machine sales kicking in in the second quarter. EBITDA before restructuring expenses increased from 45 million euro in the prior year quarter to 56 million euro in the second quarter of 2026.

Alexander Kocherscheidt: EBITDA before restructuring expenses increased from EUR 45 million in the prior year quarter to EUR 56 million in the Q2 of 2026 on the back of higher sales volume and better gross margin. The corresponding EBITDA margin rose strongly by 1.3 percentage points year-over-year to 11.3%. Continuing with Pharma & Food Applications, which delivered strong sales growth and a substantial profitability expansion. Order intake, however, declined organically by 9.6% due to timing of orders. Base orders, which are orders below EUR 1 million, were growing by more than 6% in the quarter, while medium-sized orders were down. Sales grew by 8.5% year-over-year in organic terms, driven by both strong new machine and service sales. The new machine business delivered an organic growth rate of 9.2%, while service grew at 7.2%. As a result, the service sales share decreased from 34.5% in the prior year quarter to 33.3% in the quarter.

Speaker #2: On the back of higher sales volume and a better gross margin, the corresponding EBITDA margin rose strongly by 1.3 percentage points year over year to 11.3%.

Speaker #2: Continuing with pharma and food applications, which delivered strong sales growth and substantial profitability expansion. Order intake, however, declined organically by 9.6% due to timing of orders.

Speaker #2: Base orders, which are orders below €1 million, were growing by more than 6% in the quarter, while medium-sized orders were down. Sales grew by 8.5% year over year in organic terms, driven by both strong new machine and service sales.

Speaker #2: The new machine business delivered an organic growth rate of 9.2%, while service grew at 7.2%. As a result, the service sales share decreased from 34.5% in the prior year quarter to 33.3% in the quarter.

Speaker #2: The impressive track record of continuous profitability improvement, which the division has built up over the last years, continued in the second quarter. Absolute EBITDA before restructuring expenses and the corresponding margin reached new record levels for a quarter.

Alexander Kocherscheidt: The impressive track record of continuous profitability improvement, which the division has built up over the last years, continued in the Q2. Absolute EBITDA before restructuring expenses and the corresponding margin reached new record levels for a quarter. EBITDA rose substantially by 30% year-over-year to EUR 45 million, driven by volume and significantly higher gross margin. For the first time ever, the respective margin crossed the 16% mark and reached 16.2%, an outstanding achievement. Finally, Farm Technologies. Farm Technologies reported another quarter of double-digit growth rates in order intake and sales. Let me give you some more details here. The favorable market environment for dairy farmers, which began in December 2024, continued steadily throughout 2025 and the H1 of 2026. This translated once again into a notable increase in order intake.

Speaker #2: EBITDA rose substantially by 30% year over year, to €45 million, driven by volume and significantly higher gross margin. For the first time ever, the respective margin crossed the 16% mark and reached 16.2%, an outstanding achievement.

Speaker #2: Finally, Pharma Technologies. Pharma Technologies reported another quarter of double-digit growth rates in order intake and sales. Let me give you some more details here.

Speaker #2: The favorable market environment for dairy farmers, which began in December 2024, continued steadily throughout 2025 and the first half of 2026. This translated, once again, into a notable increase in order intake.

Speaker #2: Order intake rose by 11.4% organically due to strong demand for both automated and conventional milking systems in the new machine business area. In terms of order sizes, base orders were the growth driver.

Alexander Kocherscheidt: Order intake rose by 11.4% organically due to strong demand for both automated and conventional milking systems in the new machine business area. In terms of order sizes, base orders were the growth driver. Organic sales rose significantly by 15.4%. New machine sales continued their strong performance since middle of last year, with a substantial year-over-year organic increase of 22.6%. Service sales grew organically at 8.6%. As a result of the significant outperformance of the new machine business, the service sales share declined from a high level of 51.1% in Q2 2025 to 47.8% in Q2 2026. On the back of higher sales volume, EBITDA before restructuring expenses rose by EUR 3 million year-over-year to EUR 30 million.

Speaker #2: Organic sales rose significantly by 15.4%. New machine sales continued their strong performance since the middle of last year, with a substantial year-over-year organic increase of 22.6%.

Speaker #2: Service sales grew organically by 8.6%. As a result of the significant outperformance of the new machine business, the service sales share declined from a high level of 51.1% in the second quarter of 2025 to 47.8% in the second quarter of 2026.

Speaker #2: On the back of higher sales volume, EBITDA before restructuring expenses rose by €3 million year over year, to €30 million. The corresponding EBITDA margin declined slightly by 0.2 percentage points to 14.2% because of the lower service sales share and product mix effects.

Alexander Kocherscheidt: The corresponding EBITDA margin declined slightly by 0.2 percentage points to 14.2% because of the lower service sales share and product mix effects. Let me close the divisional chapter with an overview of the EBITDA growth contribution in H1 and in Q2 2026. There are two important messages. Firstly, we have been able to increase our EBITDA before restructuring expenses in both time periods considerably. Secondly, all divisions contributed to this positive development. This underlines our broad-based strength resulting from our price and cost discipline, as well as savings from our procurement and production optimization efforts. Let me now turn to another important topic, net working capital. Year-over-year, net working capital declined by EUR 27 million to EUR 396 million. This reduction was driven by a combination of higher trade payables and higher contract liabilities.

Speaker #2: Let me close the divisional chapter with an overview of the EBITDA growth contribution in the first half and in the second quarter of 2026.

Speaker #2: There are two important messages. Firstly, we have been able to increase our EBITDA before restructuring expenses in both time periods considerably. Secondly, all divisions contributed to this positive development.

Speaker #2: This underlines our broad-based strength, resulting from our price and cost discipline, as well as savings from our procurement and production optimization efforts. Let me now turn to another important topic: net working capital.

Speaker #2: Year over year, net working capital declined by €27 million to €396 million. This reduction was driven by a combination of higher trade payables and higher contract liabilities.

Speaker #2: The high volume of large orders over the last four quarters led to higher advance payments, which are reflected in the increase in contract liabilities.

Alexander Kocherscheidt: The high volume of large orders over the last four quarters led to higher advanced payments, which are reflected in the increase in contract liabilities. This resulted in a net working capital to sales ratio of 7.0%, placing us at the bottom of the guided corridor of 7% to 9%. On a rolling last four quarter basis, which smooths seasonality, the ratio was even lower at 6.3%. Free cash flow reached an outstanding level, marking the highest Q2 free cash flow in 6 years. Let's have a look at the main drivers. After a moderate net working capital outflow of EUR 12 million and a EUR 26 million outflow in the others position, which mainly results from miscellaneous balance sheet movements like VAT, operating cash flow stood at EUR 185 million in Q2.

Speaker #2: This resulted in a net working capital-to-sales ratio of 7.0%, placing us at the bottom of the guided corridor of 7% to 9%. On a rolling last four quarters basis, which smooths seasonality, the ratio was even lower at 6.3%.

Speaker #2: Free cash flow reached an outstanding level, marking the highest second-quarter free cash flow in six years. Let's have a look at the main drivers.

Speaker #2: After a moderate net working capital outflow of €12 million and a €26 million outflow in the 'others' position, which mainly results from miscellaneous balance sheet movements like VAT, operating cash flow stood at €185 million in the second quarter.

Speaker #2: Capex-related cash outflow was relatively low, at €39 million, compared with our full-year 2026 guidance of around €240 million. As in previous years, we expect capex to ramp up in the second half of 2026.

Alexander Kocherscheidt: CapEx related cash outflow was relatively low at EUR 39 million compared with our full year 2026 guidance of around EUR 240 million. As in previous years, we expect CapEx to ramp up in H2 2026. As a result, free cash flow was very strong, amounting to EUR 151 million. After deducting lease payments and interest paid, net cash flow amounted to EUR 131 million. The strong net cash flow was offset by the dividend payment, but even so, we ended the quarter with a net cash position of EUR 71 million. In H1, free cash flow was still -EUR 39 million. However, we saw a very strong catch up in Q2. We are therefore on track to achieve roughly the same level of free cash flow for the full year as in 2025.

Speaker #2: As a result, free cash flow was very strong, amounting to €151 million. After deducting lease payments and interest paid, net cash flow amounted to €131 million.

Speaker #2: The strong net cash flow was offset by the dividend payment, but even so, we ended the quarter with a net cash position of €71 million.

Speaker #2: In the first half, free cash flow was still negative, at €39 million. However, we saw a very strong catch-up in the second quarter.

Speaker #2: We are therefore on track to achieve roughly the same level of free cash flow for the full year as in 2025. Free cash flow generation over the last four quarters has been strong, reaching €483 million.

Alexander Kocherscheidt: Free cash flow generation over the last four quarters has been strong, reaching EUR 483 million. The corresponding cash conversion ratio, which indicates how much of the EBITDA before restructuring expenses has been converted into free cash flow before restructuring expenses landed at a solid 54%. With that, I hand back to Stefan for the outlook.

Speaker #2: The corresponding cash conversion ratio, which indicates how much of the EBITDA before restructuring expenses has been converted into free cash flow before restructuring expenses, landed at a solid 54%.

Speaker #2: With that, I hand back to Stefan for the outlook.

Speaker #1: Thank you, Alexander. As already mentioned at the beginning of today's call, we have increased our guidance for 2026 based on the very positive performance in the first half of this year, and the promising expectations for the second half of 2026.

Stefan Klebert: Thank you, Alexander. As already mentioned at the beginning of today's call, we have increased our guidance for 2026 based on the very positive performance in H1 of this year and the promising expectations for H2 of 2026. Despite the volatile environment driven by geopolitical tensions around the world, GEA's positive journey is not only continuing, it is even accelerating. This is based on the various levers which we initiated with our Mission 30. Finally, our roadmap for 2026. The next important date will be the release of our Q3 results on 9 November. In the meantime, we look forward to seeing many of you at upcoming roadshows and conferences. Alexander, the investor relations team, and I will be meeting investors until the end of September. This concludes my presentation, and I hand back to Oliver for the Q&A.

Speaker #1: Despite the volatile environment driven by geopolitical tensions around the world, GEA's positive journey is not only continuing; it is even accelerating. This is based on the various levers we initiated with our Mission 30.

Speaker #1: Finally, our roadmap for 2026—the next important date will be the release of our third-quarter results on November 9. In the meantime, we look forward to seeing many of you at upcoming roadshows and conferences. Alexander, the investor relations team, and I will be meeting investors until the end of September.

Speaker #1: This concludes my presentation, and I hand back to Oliver for the Q&A.

Speaker #2: Thank you very much, Stefan and Alexander. Let's start with the Q&A session, so I'm turning the call back to you, Maddalena.

Oliver Luckenbach: Thank you very much, Stefan and Alexander. Yes, let's start with the Q&A session, therefore I'm turning the call back to you, Maddalena, please go ahead with some more instructions.

Speaker #2: And please go ahead with some more instructions.

Speaker #3: Thank you. To ask a question, you will need to press *11 on your telephone and wait for your name to be announced.

Operator: Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. One moment for our first question. This question comes from the line of Akash Gupta from JPMorgan. Please go ahead.

Operator: Thank you. This question comes from the line of Akash Gupta from JPMorgan. Please go ahead.

Speaker #3: To withdraw your question, please press star 1 and then 1 again. One moment for our first question. Our first question comes from the line of Akash Gupta from J.P. Morgan.

Speaker #3: Please go ahead.

Speaker #4: Yes, hi, good afternoon, and thanks for your time. My first one is for Stefan. Stefan, you earlier touched base in your prepared remarks that you are technically hitting the bottom end of your 2030 target of 17% to 19% already this year.

Akash Gupta: Yes. Hi, good afternoon, thanks for your time. My first one is for Stefan. Stefan, you earlier touched base in your prepared remarks that you are technically hitting the bottom end of your 2030 target of 17% to 19% already this year. I know margin guidance for 2030 including restructuring, this year is excluding restructuring. I'm wondering if you can talk about the timeline for potentially revisiting 2030 targets, which looks conservative. My second question is for Alexander, which is on PharmTech. Your new revenue guidance is 8% to 10% organic, after more than 20% in H1. That would mean that even at the top end of the revenue outlook, you are guiding a modest revenue decline in H2. PharmTech has seen more than 1 times book-to-bill for three consecutive quarters, backlog is at highest level since Q2 of 2023.

Speaker #4: I know margin guidance for 2030, excluding restructuring and including restructuring, and this year is excluding restructuring, but I'm wondering if you can talk about the timeline for potentially revisiting 2030 targets, which look conservative.

Speaker #4: And then my second question is for Alexander, which is on Farm Tech. Your new revenue guidance is 8% to 10% organic, after more than 20% in H1.

Speaker #4: And that would mean that even at the top end of the revenue outlook, you are guiding to a modest revenue decline in the second half. Farm Tech has seen more than one times book-to-bill for three consecutive quarters, and backlog is at the highest level since Q2 of 2023.

Speaker #4: So maybe you can help us understand what is driving this revenue guidance for Farm Tech. Thank you.

Akash Gupta: Maybe if you can help us understand what is driving this revenue guidance for PharmTech. Thank you.

Speaker #1: Yeah, Akash, thanks for

Alexander Kocherscheidt: Yeah, Akash, thanks for the question. First of all, I think the positive message is, I think there is no question mark that we can make the Mission 30. These question marks might be finally gone. I think we know each other very well, Akash, since long time, if you see this performance now, I think it proves that we can deliver what we promise. Let's first finish now the year 2026, let's see where we finally end. As I said, we are definitely touching the lower end of the Mission 30 already at this year's end. At the right time, we might think twice, we will see if there is any room for recalibration. The company has, of course, a lot of potential, like you can see.

Stefan Klebert: Yeah, Akash, thanks for the question. First of all, I think the positive message is, I think there is no question mark that we can make the Mission 30. These question marks might be finally gone. I think we know each other very well, Akash, since long time, if you see this performance now, I think it proves that we can deliver what we promise. Let's first finish now the year 2026, let's see where we finally end. As I said, we are definitely touching the lower end of the Mission 30 already at this year's end. At the right time, we might think twice, we will see if there is any room for recalibration. The company has, of course, a lot of potential, like you can see.

Speaker #2: ...all the questions. And I mean, first of all, I think the positive message is, I think there is no question mark that we can make the Mission 30. These question marks might be finally gone.

Speaker #2: And I think if you also—we know each other very well, Akash, since a long, long time. And if you see this performance now, I think it proves that we can deliver what we promise.

Speaker #2: Let's first finish now the year 2026, and let's see where we finally end. And as I said, we are definitely touching the lower end of the Mission 30 already at this year's end.

Speaker #2: And then, at the right time, we might think twice, and we will see if there is any room for recalibration. But the company has, of course, a lot of potential, as you can see.

Stefan Klebert: The whole thing?

Speaker #5: Yeah, okay, sorry. So, second question, Akash, regarding the FT sales. We, of course, are also running against the second quarter of last year. That's always the case if we then compare the two numbers.

Alexander Kocherscheidt: Yeah. Okay. Sorry. Second question, Akash, regarding the FT sales. We of course are running also against a Q2 of last year. That is also always the case if we compare the two numbers, and this has been quite a strong one last year, so that is the first one. The comparison in H2 is quite high, so that leads to our overall guidance of 8% to 10%.

Speaker #5: And this has been quite a strong one last year. So that's the first one. And yeah, the comparison in Q2 and H2 is quite high.

Speaker #5: So, that leads to our overall guidance of 8 to 10 percent.

Speaker #4: Thank you, but still, like when I look at your last three-quarter order intake, even if we have similar revenues in the second half, we should get growth in Farm Tech revenues in the second half.

Akash Gupta: Thank you. When I look at your last Q3 order intake, even if we have similar revenues in H2, we should get growth in PharmTech revenues in H2. I was just wondering if there is anything we are missing there.

Speaker #4: So I was just wondering if there is anything we are missing there.

Speaker #5: No, there's nothing that you're missing. So, that's the guidance we are giving, and that's based on the current expectation. I think with the yearly growth rate, we are still within the growth trajectory that we are needing.

Alexander Kocherscheidt: No, there is nothing that you are missing. That is the guidance we are giving, and that is based on the current expectation. I think with the yearly growth rate, we are still within the growth trajectory that we are needing also in comparison to last year's growth in FT. That is where we currently sit.

Speaker #5: Also, in comparison to last year's growth in FT, that's where we currently sit.

Speaker #4: Thank you.

Akash Gupta: Thank you.

Speaker #3: Thank you. We are now going to move to our next question, and this question comes from Nehan Yang from Goldman Sachs. Please go ahead.

Operator: Thank you. We are now going to move to our next question. This question comes from Mei-Han Yang from Goldman Sachs. Please go ahead.

Operator: Thank you. We are now going to move to our next question. This question comes from Meihan Yang from Goldman Sachs. Please go ahead.

Speaker #4: Hi, good afternoon. Thank you for taking my question. I just have two. So, I think, Jan, in your previous earnings calls, you talked about the acceleration in organic sales growth throughout the year.

Mei-Han Yang: Hi. Good afternoon. Thank you for taking my question. I just have two. I think on your previous earnings calls, you talk about the acceleration in organic sales growth throughout the year. I wonder if, given your strong H1 performance, are you still expecting this? In that case, would there be still further room to upgrade your full year guidance of 2026? My second question is if you could give us a bit more color on how much visibility you have now for the order book to support future quarters at current high growth organic orders growth rate, or even higher. Thank you.

Meihan Yang: Hi. Good afternoon. Thank you for taking my question. I just have two. I think on your previous earnings calls, you talk about the acceleration in organic sales growth throughout the year. I wonder if, given your strong H1 performance, are you still expecting this? In that case, would there be still further room to upgrade your full year guidance of 2026? My second question is if you could give us a bit more color on how much visibility you have now for the order book to support future quarters at current high growth organic orders growth rate, or even higher. Thank you.

Speaker #4: I wonder, given your strong first half performance, are you still expecting this? And in that case, would there still be further room to upgrade your full-year guidance for 2026?

Speaker #4: And my second question is if you could give us a bit more color on how much visibility you have now for the order book to support future quarters at the current high-growth organic orders growth rate or even higher.

Speaker #4: Thank you.

Speaker #2: Thank you, Nehan. Thanks for your question. Well, you are right. Normally, we can accelerate organic sales growth in the second half of the year.

Alexander Kocherscheidt: Thank you, Mei-Han. Thanks for your question. Well, you are right. Normally we can accelerate organic sales growth in the H2 of the year, like all the profitability that makes us very optimistic that we will achieve the guidance which we promised. We know each other not so long time, but if you follow GEA during the last years, we always deliver what we promise. For us, it's not an option to overpromise and underdeliver. We rather like to do it the other way around. That is what I can say. There are always some risk in the air, not coming from our company, coming from outside developments. We are very optimistic that we see sales growth, which is in line with the guidance we just gave.

Stefan Klebert: Thank you, Mei-Han. Thanks for your question. Well, you are right. Normally we can accelerate organic sales growth in the H2 of the year, like all the profitability that makes us very optimistic that we will achieve the guidance which we promised. We know each other not so long time, but if you follow GEA during the last years, we always deliver what we promise. For us, it's not an option to overpromise and underdeliver. We rather like to do it the other way around. That is what I can say. There are always some risk in the air, not coming from our company, coming from outside developments. We are very optimistic that we see sales growth, which is in line with the guidance we just gave.

Speaker #2: Regarding profitability, that makes us very optimistic that we will achieve the guidance which we promised. We have not known each other for a very long time, but if you follow GEA during the last years, we always deliver what we promise.

Speaker #2: So for us, it's not an option to overpromise and underdeliver. So we would rather do it the other way around. So that is what I can say.

Speaker #2: There are always some risks in the air, not coming from our company—coming from outside developments. But we are very optimistic that we see sales growth, which is in line with the guidance we just gave.

Speaker #2: And the auto pipeline—or, let's say, of course, the second half of the year—is a little bit of an uphill battle, let's say, because we are comparing against an especially very strong Q4.

Stefan Klebert: The order pipeline, of course, the H2 of the year is a little bit of an uphill battle, let's say, because we are comparing against especially a very strong Q4. It is very unlikely, let's say like that we can beat last year's Q4, because last year we also booked Baladna here in this Q4. Just also to manage expectations, don't expect a Q4, which might be even above last year's Q4. As I always like to say, a quarter is very difficult to judge in our business because it's happened so fast that we can book something in Q3, what we expected in Q2 or vice versa. More important is the 12 months period, I would say. We are very optimistic that we can see at the end of the year a significant growth also in order intake.

Speaker #2: So it is very likely, or very unlikely—let's say it like that—that we can beat last year's Q4, because last year we also booked Balatna here in this fourth quarter.

Speaker #2: So, just also to manage expectations—don't expect a Q4, which might even be above last year's Q4. But, as I always like to say, a quarter is very difficult to judge in our business, because it happens so fast that we can book something in Q3 that we expected in Q2, or vice versa.

Speaker #2: So, more important is the 12-month period, I would say, and we are very optimistic that we can see, at the end of the year, significant growth also in order intake.

Speaker #2: It doesn't matter when we book it.

Stefan Klebert: Doesn't matter when we book it.

Speaker #4: Understood. Thank you very much.

Mei-Han Yang: Understood. Thank you very much.

Meihan Yang: Understood. Thank you very much.

Speaker #2: Thank you, Nehan.

Stefan Klebert: Thank you, Maya.

Stefan Klebert: Thank you, Meihan.

Speaker #3: Thank you. We are now going to move to our next question. This question comes from Klaus Bergelin from Citi. Please go ahead.

Operator: Thank you. We are now going to move to our next question. This question comes from Claes Berglund from Citi. Please go ahead.

Operator: Thank you. We are now going to move to our next question. This question comes from Klas Bergelind from Citi. Please go ahead.

Speaker #5: Thank you. Hi, Stefan Alexander, Klaus at Citi. So, my first question is on your exposure to the data center build-out. It seems like you haven’t seen much growth here yet, but we’re hearing from others about increased orders in the flow end of the business.

Claes Berglund: Thank you. Hi, Stefan, Alexander. Claes at Citi. My first question is on your exposure to the data center build-out. It seems like you haven't seen much growth here yet, but we're hearing from others of increased orders here in the flow end of the business. These are pumps, valves, fittings, et cetera. Could you talk through your exposure here, Stefan, and to what extent you can make this sort of commercial to commercialize this opportunity? I'll start here. Thank you.

Klas Bergelind: Thank you. Hi, Stefan, Alexander. Claes at Citi. My first question is on your exposure to the data center build-out. It seems like you haven't seen much growth here yet, but we're hearing from others of increased orders here in the flow end of the business. These are pumps, valves, fittings, et cetera. Could you talk through your exposure here, Stefan, and to what extent you can make this sort of commercial to commercialize this opportunity? I'll start here. Thank you.

Speaker #5: So these are pumps, valves, fittings, et cetera. Could you talk through your exposure here, Stefan, and to what extent you can make this sort of commercial to commercialize this opportunity?

Speaker #5: I'll start here. Thank you.

Speaker #2: Yeah, thanks, Klaus. First of all, it's very good to hear you today, so thanks for the good connection. Thumbs up—there were some hiccups in the last calls.

Stefan Klebert: Yeah. Thanks, Claes. First of all, it's very good to hear you today, so thanks for the good connection.

Claes Berglund: Thank you.

Klas Bergelind: Thank you.

Stefan Klebert: There was some hiccup in the last call. Well, I cannot comment on what others are promising or telling or whatever. For us, from today's point of view, we don't expect here any significant business from us in the data center. This is not a big problem for us because, as you know, we have a lot of other verticals where we have really interesting growth. Also, just to mention that we are extremely successful in the topic of continuous tablet pressing, where we have a unique position and you also could maybe read that now Novo Nordisk is also starting with the GLP-1 tablets in Europe. This is something where we might benefit significantly from. There are different verticals for us which are very interesting, but most likely data center is not.

Speaker #2: Well, I cannot comment on what others are promising or telling or whatever. For us, from today's point of view, we don't expect any significant business for us in the data center.

Speaker #2: But this is not a big problem for us because, as you know, we have a lot of other verticals where we have really interesting growth.

Speaker #2: Also, just to mention that we are extremely successful in the topic of continuous tablet pressing. Where we have a unique position and you also could maybe read that now Novo Nordisk is also starting with the GLP-1 tablets in Europe.

Speaker #2: This is something from which we might benefit significantly. So, there are different verticals for us which are very interesting, but most likely data center is not one of them.

Speaker #5: Thank you. My second one, it's sort of linked to other questions in that your guidance seems competitive. So if you look at pure flow processing, the one on pharmacy, but it's a little bit similar.

Claes Berglund: Thank you. My second one is sort of linked to other questions in that your guidance seems competitive. If you look at PureFlow Processing, 101 on pharma, it's a little bit simpler. Besides H2 growth, fully a midpoint shows a sharp duration to 2%, low around 5%. There is that PFP has effectively conservatism as this cycle. Are you seeing anything here that would suggest slow down or is linked to tougher comp from PFP or something else? The implied margin looks very good for PFP, I'm curious on the sales comp. Thank you.

Klas Bergelind: Thank you. My second one is sort of linked to other questions in that your guidance seems competitive. If you look at PureFlow Processing, 101 on pharma, it's a little bit simpler. Besides H2 growth, fully a midpoint shows a sharp duration to 2%, low around 5%. There is that PFP has effectively conservatism as this cycle. Are you seeing anything here that would suggest slow down or is linked to tougher comp from PFP or something else? The implied margin looks very good for PFP, I'm curious on the sales comp. Thank you.

Speaker #5: Second half growth for the year midpoint shows a sharp variation to 2%, below around 5%. And that is just effectively conservative, as this is before the cycle.

Speaker #5: Are you seeing anything here that would suggest a slowdown, or is linked to tougher compromising, or something else? The implied margin looks very good for PFP, but I'm curious about the sales cost.

Speaker #5: Thank you.

Speaker #2: Okay, first of all, I was maybe too quick in giving you kudos for the good connection, because it was quite, quite, quite bad again.

Stefan Klebert: Okay. First of all, I was maybe too fast in giving you kudos for the good connection because it was quite bad again. I think I've got the point. Well, what should I say? You know Claes, we know each other also very long. You know that we are always guiding what we can achieve. If everything goes in the right direction, there might be upside potential, not only in PFP. This is how I would say I can comment it, there is nothing which you don't know and should know to be sure that we might be worse than expected. We do our job, we do like always, it might look conservative, let's see where we end up.

Speaker #2: But I think I've got the point. Well, what should I say? You know, Klaus, we know each other also very long. You know that we are always guiding what we can achieve.

Speaker #2: And there might be, if everything goes in the right direction, some upside potential—not only in PFP. This is, I would say, how I can comment on it. But there is nothing which you don't know and should know to be sure that we might be worse than expected.

Speaker #2: We do our job. Like always, and it might look conservative, but let's see where we end up.

Speaker #5: Okay, my very quick final one, if you can hear me okay: it's a very strong order. It's ex the large orders in MPE, which seems to be driven both by dairy processing and pharma.

Claes Berglund: Okay. Very quick final one, if you can hear me okay.

Klas Bergelind: Okay. Very quick final one, if you can hear me okay.

Stefan Klebert: Perfect.

Claes Berglund: If the very strong orders, X the large orders in NPE, which seems to be driven both by dairy processing and pharma. Did any of these two segments X large orders accelerate more than the others quarter-on-quarter? The debate now in GEA is sort of moving on from large orders to base orders in NPE. You have a tough comp from large orders in the H2. The question now, do you see this underlying order level sustain into the H2? Any comment on the sort of base order pipeline, EUR 1 to 15 million, would be useful and across geographies. Thank you, Stefan.

Klas Bergelind: If the very strong orders, X the large orders in NPE, which seems to be driven both by dairy processing and pharma. Did any of these two segments X large orders accelerate more than the others quarter-on-quarter? The debate now in GEA is sort of moving on from large orders to base orders in NPE. You have a tough comp from large orders in the H2. The question now, do you see this underlying order level sustain into the H2? Any comment on the sort of base order pipeline, EUR 1 to 15 million, would be useful and across geographies. Thank you, Stefan.

Speaker #5: Did any of these two segments, ex large orders, accelerate more than the others quarter on quarter? And the debate now in gear is sort of moving on from large orders to base orders in MPE.

Speaker #5: You have a tough comp from large orders in the second half, but the question now, do you see this underlying order level sustain into the second half as any comment on the sort of base order pipeline 1 to 50 million would be useful and across geographies?

Speaker #5: Thank you, Stefan.

Speaker #2: Yeah, I think that’s good, what you mentioned, because we see a very good base load in NPE. By the way, also here, while we are talking about verticals and growth drivers, the whole high protein trend is something which is very favorable for us at the moment.

Stefan Klebert: Yeah. I think that's good what you mentioned because we see a very good base load in NPE. By the way, also here while we are talking about verticals and growth drivers, also the whole high protein trend is something which is very favorable for us at the moment. There is a lot of investment going on. The world needs to have high protein, and also many people are moving to Dairy-based products, which might not have consumed it so much in the past. This is what we see. On top of that, we have interesting and very promising pipeline for large orders in NPE. Also here we expect a very good H2 in terms of order intake and, of course, also in sales.

Speaker #2: Yeah, there is a lot of investment going on. The world needs to have high protein, and also many people are moving to dairy-based products who might not have consumed them so much in the past.

Speaker #2: So this is what we see. And on top of that, we have an interesting and very promising pipeline for large orders in NPE. So also here we expect a very good second half of the year.

Speaker #2: In terms of order intake and of course also in sales.

Speaker #5: Thank you.

Claes Berglund: Thank you.

Klas Bergelind: Thank you.

Speaker #2: You're welcome, Klaus.

Stefan Klebert: You're welcome, Josh.

Speaker #3: Thank you. We are now going to take our next question, and this one comes from Max Yates from Morgan Stanley. Please go ahead.

Operator: Thank you. We are now going to take our next question, and this one comes from Max Yates from Morgan Stanley. Please go ahead.

Speaker #5: Thank you. I just wanted to ask firstly about your services growth. So, 10% organic growth in services in the quarter—it's obviously a very impressive number.

Max Yates: Thank you. I just wanted to ask firstly about your services growth. 10% organic growth in services in the quarter. It's a very impressive number, and I guess far above what your installed base is growing at. I guess my question is, you laid out in your sort of previous plans, moving up the service ladder, trying to kind of recapture more of your installed base, higher value per machine. I guess I just wanted to understand how far along are you in that process? Maybe if you could give us any sort of quantification of how much were you capturing of your deliveries into your installed service base versus today, how much is that kind of capture rate? Just any sort of quantification about how that kind of process has evolved and how much more you think there is to do.

Speaker #5: And I guess far above what your installed base is growing at. So I guess my question is, you laid out in your sort of previous plans moving up the service ladder, trying to kind of recapture more of your installed base, higher value per machine.

Speaker #5: I guess I just wanted to understand how far along you are in that process. And maybe, if you could give us any sort of quantification of how much you were capturing of your deliveries into your installed service base versus today—how much is that capture rate?

Speaker #5: Just any sort of quantification about how that kind of process has evolved and how much more you think there is to do.

Speaker #2: Yeah, so this is a very important part of our success story in the last years, of course. We achieved, meanwhile, a percentage of roughly 40%.

Stefan Klebert: Service is a very important part of our success story in the last years, of course. We achieved meanwhile in percentage of roughly 40%. Can it be larger? Yes. It also depends on how successful we are in new installations. We don't want to outgrow it to, let's say, 45% or 50%, because that would mean that we are selling too little or too less new installations. We promised in the Mission 30 to grow service business to EUR 2.9 billion in 2030. We are very well on track here. We also are increasing our number of digital products which we sell. This is a very interesting part for us, and where we can also accelerate service growth.

Speaker #2: Can it be larger? Yes. I mean, but it also, you know, it depends on how successful we are in new installations. We don't want to outgrow it to, let's say, 45 or 50%, because that would mean that we are selling too little or too few new installations.

Speaker #2: But we promised in Mission 30 to grow our service business to €2.9 billion in 2030. We are very well on track here. We are also increasing the number of digital products that we sell.

Speaker #2: This is a very interesting part for us and where we can also accelerate service growth, but it's also that we do a lot in all the traditional areas. That starts with creating more transparency of the installed base, really capturing and deploying the potential of the installed base, being more aggressive in sales, and, and, and.

Stefan Klebert: It's also that we do a lot in all the traditional areas, that starts with creating more transparency of the installed base, really capturing and deploying the potential of the installed base, being more aggressive in sales, the journey is not yet over. We see very good growth rates. As I said, on top we have all the digital products, which we are more and more bringing to the customers, where we have a lot of recurring revenue coming out, where we don't sell software anymore like it was in the past, where we have only license agreements, where we charge per month, per unit, per cow, whatever, that will also help us to boost service also further in the future.

Speaker #2: So the journey is not yet over, and we see very good growth rates. As I said, on top, we have all the digital products, which we are more and more bringing to the customers, where we have a lot of recurring revenue coming out. We don't sell software anymore like it was in the past, where we had only license agreements. Now, we charge per month, per unit, per cow, whatever.

Speaker #2: And that will also help us to boost service further in the future.

Speaker #5: Thank you. And maybe just a sort of conceptual question about your margins. If I look at your margins, it kind of looks like you're going to be trending towards the upper end of that target that you gave by 2030.

Max Yates: Thank you. Maybe just a sort of conceptual question about your margins. If I look at your margins, kind of, it looks like you're going to be trending towards the upper end of that target that you gave by 2030. Just conceptually, when you look at your peer group, I know kind of previously you've shown charts of kind of benchmarking where you were versus the kind of best in class peers. It's kind of implied that you will have closed most of that gap. When you look at sort of how the business is running and the path over the next couple of years, do you still see kind of major opportunities to improve efficiency?

Speaker #5: Just conceptually, when you look at your peer group, I know kind of previously you'd shown charts of kind of benchmarking where you were versus the kind of best-in-class peers.

Speaker #5: It's kind of implied that you will have closed most of that gap. When you look at how the business is running and the path over the next couple of years, do you still see major opportunities to improve efficiency? Are there still divisions, maybe things like rolling out the SAP systems, that can really unlock a huge amount more margins?

Max Yates: Are there still divisions, maybe things like rolling out the SAP systems that can really unlock a huge amount more margins, or do you really see kind of once you get to those levels, you really are kind of operating as best in class and it really moves on about to investing in the business? I am just wondering kind of conceptually.

Speaker #5: Or do you really see kind of once you get to those levels, you really are kind of operating as best in class and really then moves on about kind of to investing in the business?

Speaker #5: I'm just wondering kind of conceptually beyond the midpoint of those targets, how do you think about it?

Stefan Klebert: Yeah

Max Yates: beyond the midpoint to those targets, how do you think about it?

Speaker #2: Understood. Understood. Yeah. The journey is not yet over, and I think there will also be a mission beyond Mission 30 whenever it has been completed.

Stefan Klebert: Understood. Yeah. The journey is not yet over, I think there will also be a mission beyond the Mission 30 whenever it has been completed. I also can say there is only one GEA. It is very difficult to compare us to peers. When you look at the PureFlow Processing part, for instance, we are definitely best in class and outstanding. The average might be a little bit lower than so-called best in class peers. However, they do not have businesses like we with Nutrition & Plant Engineering, where by purpose we have our operating model with lower margin, but with extremely favorable net working capital. This is the business unit and other division, which we run with the negative net working capital, which brings us to a ROCE of almost 40% already now. This is also what we do not have to forget.

Speaker #2: And this is, I think, I also can say there's only one GI. It's very difficult to compare us to peers. When you look at the Pureflow processing part, for instance, we are definitely best in class and outstanding.

Speaker #2: The average might be a little bit lower than so-called best in class peers. However, they don't have businesses like we with nutrition plant engineering, whereby purpose we have operating model with lower margin, but with an extremely favorable networking capital.

Speaker #2: So this is the business unit and the division which we run with a negative net working capital, which brings us to a ROCE of almost 40% already now.

Speaker #2: So this is also what we don't have to forget. And I give you also maybe a little bit shades of gray when we talk about the SAP program, which we call Transform 360.

Stefan Klebert: I give you also maybe a little bit shades of gray when we talk about the SAP program, which we call Transform360. At the moment, we are spending a lot of money, medium size of double-digit million, what we spend per year for the introduction and rollout costs. We have at the moment not yet any synergies made out of that. This is all in the P&L. If you think about once we have completed the rollout, we do not have this cost anymore, though you can add that to the EBITDA immediately. On top of that, we have the synergies which we will create out of one common system.

Speaker #2: At the moment, we are spending a lot of money—a medium-size, double-digit million amount per year for the introduction and rollout costs.

Speaker #2: And we have, at the moment, not yet made any synergies out of that. And this is all in the P&L. And if you think about it, once we have completed the rollout, we won't have these costs anymore.

Speaker #2: So you can add that to the EBITDA immediately. And on top of that, we have the synergies which we will create out of one common system.

Speaker #2: So, even if we would see no improvement in the operational business, simply by completing our Transform 360 journey—by saving the money we spend today for the introduction, and at the same time leveraging the potential we have from the synergies—that will create another level of profitability.

Stefan Klebert: Even if we would see no improvement in the operational business simply by completing our Transform360 journey by saving the money we spend today for the introduction, and at the same time leveraging the potential we have from the synergies that will create another level of profitability.

Max Yates: Understood. Just one really quick housekeeping question. Restructuring for 2027, once you take it above the line, how much do you think that number will be next year, roughly?

Speaker #5: Understood. Just one really quick housekeeping question. Restructuring for '27—once you take it above the line, how much do you think that number will be next year?

Speaker #5: Roughly.

Speaker #2: Next year, zero, because we don't exclude it anymore next year. And even if you look at the numbers you are used to, these are things which are not recurrent.

Stefan Klebert: Zero. Next year, zero, because we don't exclude it anymore next year. Even if you look at the numbers you are used to, these are things which are not recurrent. It's not that this company must have.

Speaker #2: It's not that this company must have 40, 50, 60, 70, or whatever restructuring costs a year, because this is also what we promised at the end of '26.

Stefan Klebert: 40, 50, 60, 70, whatever restructuring costs a year. This is also what we promised at the end of 2026, we will be done. We will be ready with our transformational system and our transformational journey. Then there is only a very, very small number which might kick in. It's not that we will see huge impacts here.

Speaker #2: We will be done we will be ready with our transformational system. And our transformational journey and then there is only a very, very small number which might kick in.

Speaker #2: But it's not that we will see huge impacts here.

Speaker #5: So you're not going to guide to flat margins because you've just taken 50 bps of restructuring above the line, or something like that?

Max Yates: You're not going to guide to flat margins because you've just taken 50 basis points of restructuring above the line or something like that?

Speaker #2: Now, what we guide is that from next year on, we don't have EBITDA before restructuring anymore. We have an all-in.

Stefan Klebert: No, what we guide is that from next year on, we don't have EBITDA before restructuring anymore. We have all-in.

Speaker #5: Yeah. No, I understand. But if suddenly the restructuring is above the line, it will be margin dilutive if it's there. So I'm just trying to understand.

Max Yates: Yeah, I know. I understand.

Stefan Klebert: Yeah, clear.

Max Yates: If suddenly the restructuring is above the line, it will be margin dilutive if it's there.

Stefan Klebert: Absolutely.

Max Yates: I'm just trying to understand.

Speaker #5: So, I'm just trying to understand.

Speaker #2: Yeah, yeah. You are absolutely right. But also, today and in the last years, we disclosed both numbers. So you always had the EBITDA all-in number.

Stefan Klebert: You are absolutely right. Also, today and in the last years, we disclose both numbers. You always had the number, EBITDA all-in, and you also have the number we officially guide, EBITDA before restructuring. What I can say, if next year we change to EBITDA all-in, you should not expect any significant decline based on that fact. We will be ready and done with everything we need to do, and that's the message.

Speaker #2: And you also have the number we officially guide—EBITDA before restructuring. But what I can say, if next year we change to EBITDA all-in, you should not expect any significant decline based on that fact.

Speaker #2: So, we will be ready and done with everything we need to do. And that's the message.

Speaker #5: Very clear. Thank you very much.

Max Yates: Very clear. Thank you very much.

Speaker #1: Thank you. We are now going to move to our next question. This question comes from Uma Samlin from Bank of America. Please go ahead.

Operator: Thank you. We are now going to move to our next question. This question comes from Uma Samlin from Bank of America. Please go ahead.

Speaker #3: Hi, good afternoon, everyone. Thank you very much for taking my question. My first question is regarding the gross margins. I guess you've had really significant improvement in the past few years on your gross margins.

Uma Samlin: Hi. Good afternoon, everyone. Thank you very much for taking my question. My first question is on the gross margins that I guess you've had a really significant improvement in the past few years on your gross margins. This quarter, if I'm correct, it seems to be the highest on record. Would you give us a bit more insight on what's been driving the improvement, if there's any wealth there, and how sustainable that is?

Speaker #3: And this quarter, if I'm correct, it seems to be the highest on record. Would you give us a bit more insight on what's been driving the improvement—if there's any one in particular—and how sustainable that is?

Speaker #4: Yeah. Hi Uma. So the growth margin has been definitely positively impacted over the last years, I have to say, by both the clear focus on the project side to drive project execution excellence.

Alexander Kocherscheidt: Yeah. Hi, Uma. The gross margin has been definitely positively impacted over the last years, I have to say, by both the clear focus on the project side to drive project execution excellence, and on the other hand, also it's impacted positively by our COGS program, which we also talked about at the last Capital Markets Day. This is also continuing. We are, of course, happy to see the margin having risen to this level. We don't see that this is now a one-off top high level and it should go down. Not at all. We are continuing to focus on execution excellence and also to drive costs down even further, engineer to design projects running in our components business as well. This is an ongoing exercise.

Speaker #4: And on the other hand, also, it's positively impacted by our COX program, which we also talked about at the last Capital Markets Day.

Speaker #4: And this is also continuing. So we are of course happy to see the margin having risen to this level. But we don't see that this is now one of top high-level and it should go down, not at all.

Speaker #4: We are continuing to focus on execution excellence and also to drive costs down even further. Engineering-to-design projects are running in our Components business as well.

Speaker #4: So this is an ongoing exercise.

Speaker #3: Okay, that's super clear. Thank you. And that doesn't include any tariff refunds? Does it include any tariff refunds on the—?

Uma Samlin: Okay. That's super clear. Thank you. That doesn't include any tariff refunds?

Alexander Kocherscheidt: Sorry.

Uma Samlin: Does it include any tariff refunds on the-?

Speaker #4: Yeah. In the first half-year, we had a number of tariffs, which we got refunded at a mid-sized, single-digit million euro amount. And of course, this also works in a way that we are passing the refunds on to our customers, where this is appropriate.

Alexander Kocherscheidt: Yeah. In H1, we had a number of tariffs which we got refunded of a midsize single-digit million EUR number. Of course, this also works in a way that we are passing the refunds onto our customers where this is appropriate. This was roughly half of this amount in H1.

Speaker #4: And this was roughly half of this amount in the first half.

Speaker #3: Okay, that's super clear. Thank you. Another one for me is a follow-up on the Mission 30 targets. You mentioned that you're closing in on the Mission 30 targets.

Uma Samlin: Okay. That's super clear. Thank you. Another one for me is a follow-up on the Mission 30 targets. You mentioned that you're closing into the Mission 30 targets, I guess you also mentioned that you're yet to finish SG&A program and the COGS program. I guess, does it mean that you'll see further upside from here in terms of margins, given you still have half of the COGS programs left and also, if I understand correctly, SG&A only expected 2028 to 2030. If we add both of those savings into your margin trajectory, does it mean that you still have a couple of percentage to go to 2030?

Speaker #3: And I guess you also mentioned that you're yet to finish SG&A program and the Cox program. So I guess that does it mean that you'll see further upside from here in terms of margins, given you still have half of the Cox program left and also you as I understand correctly, SG&A only expected like 28 to 30.

Speaker #3: So if we add both of those savings into your margin trajectory, does it mean that you still have a couple of percentage points to go until 2030?

Speaker #2: Well, I think it's what we promised we deliver. Let's say it like that again. And it is clear that we also have additional opportunities like I just mentioned when you think about the transform 360 program, what comes out of the savings from G&A cost here.

Stefan Klebert: Well, I think what we promise, we deliver. Let's say it like that again. It is clear that we also have additional opportunities. Like I just mentioned, when you think about the Transform 360 program, what comes out of the savings from G&A costs here. On top of that, we will still continue to optimize our COGS. Also here, we are not at the end. This company is a fantastic company in really resilient markets with a lot of potential which we can deploy over the next years. When we are faster than originally expected, everybody is happy. We will definitely not be slower.

Speaker #2: And on top of that, we will still continue to optimize our COGS also here. We are not at the end. This company is a fantastic company in really resilient markets.

Speaker #2: With a lot of potential, which we can deploy over the next years. When we are faster than originally expected, everybody is happy. We will definitely not be slower.

Speaker #3: Yeah. Thank you very much, Stephan. Thank you.

Uma Samlin: Thank you very much, Stephan. Thank you.

Speaker #1: Thank you. We are going to take our next question, and this one comes from Sven Weyer from UPS. Please go ahead.

Operator: Thank you. We are going to take our next question. This one comes from Sven Weier from UBS. Please go ahead.

Speaker #5: Yeah, thanks for taking my questions. The first one is just on the buyback. I was just wondering, of course, it's the biggest size so far.

Sven Weier: Thanks for taking my questions. The first one is just on the buyback. I was just wondering, of course, it's the biggest size so far. Should that tell us anything about timing of M&A? Maybe you can speak a bit about the M&A pipeline, whether that has changed, whether things are a bit less imminent on the M&A side. That's the first one. Thank you.

Speaker #5: I mean, should they tell us anything about timing of M&A? Is maybe can speak a bit about the M&A pipeline, whether that has changed?

Speaker #5: Whether things are a bit less imminent on the M&A side—that's the first one. Thank you.

Speaker #2: Okay, thanks for the questions. No, nothing has changed. I mean, it's simply that, I mean, no huge acquisition is expected to fall from heaven, which we would not know about, where we would not have any idea that it would come to the market.

Stefan Klebert: Okay. Thanks for the questions. No, nothing has changed. It's simply that no huge acquisition is expected to fall from heaven, which we would not know, where we would not have any idea that it would come to the market. Everything which might come also over the next months, years, whatever, is something we could easily digest and acquire. We especially designed the share buyback program, with this EUR 500 million in a magnitude, which is not limiting at all our M&A power. Whenever we feel that there is something which we should acquire, we see no limitations to do that.

Speaker #2: And everything which might come also over the next months, years, whatever, is something we could easily digest and acquire. So we especially designed the share buyback program with this €500 million in a magnitude which is not limiting at all our M&A power.

Speaker #2: So whenever we feel that there is something which we should acquire, we see no limitations to do that.

Speaker #5: Yeah, that's what I thought. Just wanted to confirm that. Second question is—sorry for belaboring the point, but coming back to the revenue guidance for the full year.

Sven Weier: Yeah. That's what I thought. Just wanted to confirm that. Second question is just, sorry for belaboring the point, coming back to the revenue guidance for the full year. Did you have any pull-forward revenues from H2? I remember that part of the rationale for a back-end loaded guidance originally was that you generate a lot of Plant Engineering sales where you got the orders made last year, they would simply not come earlier, in terms of revenue generation. Have you maybe pulled forward things into H1 somehow?

Speaker #5: I mean, did you have any pull-forward revenues from the second half? Because I remember that part of the rationale for a back-end loaded guidance originally was that you’d generate a lot of plant engineering sales, where you got the orders late last year and they would simply not come earlier.

Speaker #5: In terms of revenue generation, have you maybe pulled forward things into the first half somehow?

Speaker #4: Yeah, that's Alexander speaking again. So, the Q2 numbers were quite strong—I think that's very obvious. And at the same time, there was no significant effect that you were just mentioning.

Alexander Kocherscheidt: Yeah. Sven, that's Alexander speaking again. The Q2 numbers were quite strong. I think that's very obvious. At the same time, there were no significant effects that you were just mentioning. Yeah, given the full year guidance, I think Stefan has mentioned this already. We are here to deliver what we promised. That's exactly also the headline for the full year guidance, I would say. There's nothing more to add. I think that has been our logic over the last years, and will continue also to be the logic for the next years.

Speaker #4: So yeah, given the full year guidance, I think Stephan has mentioned this already. So we are here to deliver what we promised. And that's exactly also the headline for this full year guidance, I would say.

Speaker #4: And there's nothing more to add. I think that has been our logic over the last years, and it will continue to be the logic for the next years.

Speaker #5: It's understood. Thanks.

Sven Weier: It's understood. Thanks. The last question is just also coming back to what you said on the order intake, Stefan. You said you expect significant growth in order intake in 2026, is it fair to say that this significant growth in absolute terms will only come from H1, in H2, we're probably looking more for a stable absolute order intake. Is that fair?

Speaker #2: And the last question also goes back to what you said on the order intake, Stephan. You said you expect significant growth in order intake in 2026, but is it fair to say that this significant growth in absolute terms will only come from the first half, and that in the second half we would probably be looking more at a stable absolute order intake?

Speaker #2: Is that fair?

Speaker #4: Good question. Good question.

Stefan Klebert: Good question. I would say that it depends. You know how it is with the large projects. I can say that we have a very interesting pipeline. We have a lot of expect really interesting big orders or potential orders, it's like the example of Baladna, I also explained many times. It's not always easy to say, can we book it still this year? Might it flip over to Q1? What I can say, we are talking to a lot of very interesting customers with huge projects, it might depend on what can we still book this year, what might flip over to 2027. The most important message is we have a good base load, on top of that, we have an interesting pipeline.

Speaker #2: I would say that it depends. Yeah. I mean, you know how it is with the large projects. I can say that we have a very, very interesting pipeline.

Speaker #2: We have a lot of, expect really interesting big orders or potential orders. And it's like the example of Balatna. I also explained many times.

Speaker #2: It's not always easy to say: Can we book it still this year? Might it flip over to Q1? But what I can say is we are talking to a lot of very interesting customers with huge projects.

Speaker #2: And it might depend on what we can still book this year and what might flip over to '27. But the most important message is: we have a good base load, and on top of that, we have an interesting pipeline.

Speaker #5: Thanks. Did I understand you correctly that your order intake will be up either way, whether you land one of these big ones or not?

Sven Weier: Did I understand you correctly that your order intake will be up either way, whether you land one of these big ones or not?

Speaker #2: Yeah, yeah, absolutely. I think, of course, if everything goes south, it's bad. But normally, this does not happen, so I expect an interesting growth rate at the end of the year.

Stefan Klebert: Yeah. Absolutely. I think, of course, if everything goes south, it's bad, but normally this does not happen. I expect interesting growth rate at the end of the year. It might be percentage-wise not as high as it is now for the H1 because we are beating against a very strong H2. Especially the Q4 was extremely high. You should not expect a percentage growth rate which is even accelerating. It might rather be a little bit lower, but let's see what we can book. Anyway, the overall pipeline, the project activity is interesting and will go on also not only this year, also next year.

Speaker #2: It might be, percentage-wise, not as high as it is now for the first half of the year, because we are up against a very strong second half—especially since Q4 was extremely high.

Speaker #2: So, you should not expect a percentage growth rate that is even accelerating. It might rather be a little bit lower. But let's see what we can book.

Speaker #2: Anyway, the overall pipeline the project activity is interesting and will go on also, not only this year, also next year.

Speaker #5: Understood. Thank you, Stephan. Thanks, Alexander.

Sven Weier: Understood. Thank you, Stefan. Thanks, Alexander.

Speaker #2: Thank you, Sven.

Stefan Klebert: Thank you, Sven.

Speaker #4: Thanks, Sven.

Alexander Kocherscheidt: Thanks, Sven.

Speaker #1: Thank you. As a reminder to ask a question, you will need to press star one and one on your telephone. We are now going to take our next question.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one and one on your telephone. We are now going to take our next question, and this one comes from Adrian Pehl from Oddo BHF SA. Please go ahead.

Operator: Thank you. We are now going to take our next question, and this one comes from Adrian Pehl from Oddo BHF SA. Please go ahead.

Speaker #1: And this one comes from Adrian Pell from Odoo PHS SA. Please go ahead.

Speaker #5: Yes. Hi, gentlemen. Good afternoon. Just a couple of quick ones. Actually, on cash flow—I heard you say last time that you strive to keep that stable versus 2025, which was a good year.

Adrian Pehl: Yes. Hi, gentlemen. Good afternoon. Just a couple of quick ones actually on cash flow. I heard you say last time that actually you strive for keeping that stable versus 2025. Which was a good year. Now, actually, you increased the guidance on the margin side of things. Q2 looked pretty solid on free cash flow. The second one, or maybe two, one very quick housekeeping ones. One is actually on the financial expenses side. They were a bit higher in Q2. I was just wondering if there's something special in there. It looks that you are a bit above normal run rate, and the same is probably the case bit for the tax rate.

Speaker #5: Now, actually, you increased the guidance on the margin side of things. Q2 looked pretty solid on pre-cash flow. I was just wondering if you have more optimism here.

Speaker #5: Now, on this number and the second one, maybe Q1, very quick housekeeping ones. One is actually on the financial expenses side—they were a bit higher in the second quarter.

Speaker #5: I was just wondering if there's something special in there. It looks like you are a bit above the normal run rate, and the same is probably the case a bit for the tax rate.

Speaker #5: I mean, it was kind of in the corridor of what you're guiding at, but I'm just thinking about if that's something where you see the upper end of your guidance, and how the cash tax rate will look versus the guided range.

Adrian Pehl: It was kind of in the corridor of what you're guiding at, I'm just thinking about if that's something where you see the upper end of your guidance and how cash tax rate will look like versus the guided range. Thank you.

Speaker #5: Thank you.

Speaker #4: Yeah, thanks for the questions, Adrian. So, let's start with the cash flow. As I said already, we expect free cash flow to be in the range like last year.

Alexander Kocherscheidt: Yeah. Thanks for the questions, Adrian. Let's start with the cash flow one. As said already, we expect free cash flow to be in the range like last year. We have to also look at the H1 number. Free cash flow is still negative. The rebound in Q2 was very strong as you also said. We also see, because it is also dependent on the level of prepayments we get in, which is dependent on also larger orders to land in the next two quarters. That gives us a little bit of course, uncertainty regarding the projection. You asked about more optimism. I would state it like we are confident or we feel confident with the guidance that we will be on the same level like last year. On the tax rate question, I take this one first.

Speaker #4: We also have to look at the half-year numbers. Free cash flow is still negative. The rebound in the second quarter was very strong, as you also said.

Speaker #4: But we also see, because it’s also dependent on the level of prepayments we get in, which is dependent on also larger orders to land in the next two quarters.

Speaker #4: So that gives us a little bit of, of course, uncertainty regarding the projection. So you asked about more optimism. I would state it like this: we are confident, and we feel confident with the guidance that we will be on the same level as last year.

Speaker #4: And on the tax rate question, I'll take this one first. The range that we guide for the full year is still intact. We expect to be below 30%, or in that region.

Alexander Kocherscheidt: The range that we guide for the full year is still intact. We expect to be below 30% or in that region. The cash tax rate is somewhat lower. Is also expected to be somewhat lower for 2026 in total. That's what we expect, yeah. The second question was around the financial result. If I understood you correctly.

Speaker #4: The cash tax rate is somewhat lower. It's also expected to be somewhat lower for '26 in total, so that's what we expect. Yeah. So the second question was around the financial result, if I understood you correctly, and you said it is a bit not in the normal to be expected range.

Adrian Pehl: Yes

Alexander Kocherscheidt: It is a bit not in the normal to be expected range. If we look at the financial results, it was EUR -11 in Q2. For the full year, the expectation is around EUR -30. That's, I would say, is still within the range or you should not just take it times four. Yeah, let's put it that way.

Speaker #4: I think if we look at the financial result, it was minus 11 in Q2. For the full year, the expectation is around minus 30.

Speaker #4: So that, I would say, is still within the range. You should not just take it times four—let's put it that way.

Speaker #5: Right. I mean, I'm just referring to Q1, which was significantly lower, and to get to the 30, obviously, you need lower levels. So I was just wondering if there's, I don't know, three, four million, and...

Adrian Pehl: Right. I'm just referring to Q1, which was significantly lower.

Alexander Kocherscheidt: Yeah.

Adrian Pehl: To get to the 30, obviously you need lower levels.

Alexander Kocherscheidt: Yes

Adrian Pehl: I was just wondering if there's, I don't know, three, four million.

Alexander Kocherscheidt: No. It's nothing special in there. Perhaps a little bit of timing topics, but the expectation.

Speaker #4: Yeah, it's nothing special in their purpose. A little bit of timing topics, but the expectation is minus 30. Yeah.

Adrian Pehl: All right.

Alexander Kocherscheidt: -30. Yeah.

Speaker #5: Perfect. Thank you.

Adrian Pehl: Perfect. Thank you.

Speaker #4: Thanks, Adrian.

Alexander Kocherscheidt: Thanks, Adrian.

Speaker #1: Thank you. We are now going to take our last question, and this one comes from Sebastian Quen from RBC. Please go ahead.

Operator: Thank you. We are now going to take our last question. This one comes from Sebastian Kuenne from RBC. Please go ahead.

Speaker #5: Yeah, thank you for squeezing me in. I have three questions: one on biofuel exposure, one on farm tech, and one on the tax rate again.

Sebastian Kuenne: Yeah, thank you for squeezing me in. I have three questions, one on biofuel exposure, one on Farm Tech, and one on tax rate again. Now on biofuels, with the Middle Eastern crisis, do you see any incremental momentum from region's clients to push stronger into biofuel and biodiesel? What is your exposure there? That would be my first question.

Speaker #5: Now, with biofuels and the Middle Eastern crisis, do you see any incremental momentum from regional clients to push stronger into biofuel and biodiesel? And what is your exposure there? That could be my first question.

Speaker #2: Okay, I'll start with the first question. This is not really an issue for us. We at GEA, anyway, are not really significantly impacted by energy prices, because this is not a big issue for us.

Stefan Klebert: Okay, I'll start with the first question. This is not really an issue for us. We ourselves at GEA are anyway not really significantly impacted by energy prices because this is not a big issue for us. We are not so energy intensive. However, our customers are, and like you know, we have developed a lot of brilliant and smart ideas how to save energy with different, various equipment. This might be for us even a growth driver than any risk. With biofuel itself, we are not really so much involved there.

Speaker #2: We are not so energy-intensive. However, our customers are. And, like you know, we have developed a lot of brilliant and smart ideas on how to save energy with various different equipment.

Speaker #2: So this might be for us even a gross driver than any risk. And with biofuel, itself, we are not really so much involved. Yeah.

Sebastian Kuenne: Thank you. For your Farm Tech question, there were a few questions coming already, but I want to explore a little bit the midterm outlook. We now have a very tough year for crop farmers in Europe. A lot of crop farmers also are dairy farmers. It's kind of a mixed business here in Europe. I was wondering if you see discussions amongst your, especially European client base, to maybe postpone, delay investments or where you hear stories of farmers being cash-squeezed and therefore maybe reducing investments that they would otherwise have done. Is there any commentary you have on that? Thank you.

Speaker #5: Thank you. For the farm tech question, there were a few questions coming in already, but I want to explore a little bit the midterm outlook.

Speaker #5: We now have a very tough year for farmers, for crop farmers in Europe. A lot of crop farmers are also dairy farmers. It's kind of a mixed business here in Europe.

Speaker #5: So I was wondering if you see discussions amongst your especially European client base to maybe postpone delay investments or where you hear stories of farmers being cash squeezed and therefore maybe reducing investments that they would otherwise have done.

Speaker #5: Is there any commentary you have on that? Thank you.

Speaker #2: Yeah, I mean, it's more that due to the weather conditions, in summer, it's lower, but we are very optimistic to see a good development coming back at the end of the year.

Stefan Klebert: Yeah. It's more that, due to the weather conditions in summer, it's lower. We are very optimistic to see a good development coming back at the end of the year. The business is very solid and this is mainly based also on the fact that farmers need to automate. Farmers need to invest more and more in automatic milking systems because of the shortage of labor, of the reliability of labor, and we have the solutions, and we have especially the solutions for

Speaker #2: And the business is very solid, and this is mainly based also on the fact that farmers need to automate. Farmers need to invest more and more in automatic milking systems because of the shortage of labor and the reliability of labor.

Speaker #2: And we have the solutions, and we have especially the solutions for the larger equipment, for the DBQs. Which, at the end, is only coming more or less from us.

Stefan Klebert: The larger equipment for the DPUs, which at the end is only coming more or less from us. Therefore, we see a very good pipeline all over the world. We are very optimistic that also this trend will continue, that we see good order intake and increasing sales and margin from technology.

Speaker #2: And therefore, we see a very good pipeline all over the world. And we are very optimistic that also this trend will continue that we see good order intake and the increasing sales and margin in farm technology.

Speaker #5: Very helpful, thank you. And my final brief question on the tax rate again: you still expect a cash tax rate below 30%, or is it a bit lower?

Sebastian Kuenne: Very helpful. Thank you. My final brief question on the tax rate again. You still expect below 30% cash tax rate is a bit lower. I assume that's because of the use of certain tax loss carryforwards, tax assets, or activated tax losses. Could you update us, if you have the numbers in front of you, on the overall expectation of tax losses that you can still use and maybe give us a rough number for the next, I don't know, years of how much those tax assets would reduce tax payments? Is it EUR 5 million? Is it EUR 20 million? Is it EUR 100 million?

Speaker #5: I assume that's because of the use of certain tax loss carryforwards, tax assets, or activated tax losses. And could you update us, if you have the numbers in front of you, on the overall expectation of tax losses that you can still use, and maybe give us a rough number for the next, I don't know, years, of how much those tax assets would reduce tax payments?

Speaker #5: Is it $5 million? Is it $20 million? Is it $100 million?

Speaker #4: Yeah, Sebastian, I think the question is a bit difficult to answer now in this context. The tax loss carryforwards, especially in the US and also here in Germany, are still in our books.

Alexander Kocherscheidt: Sebastian, I think the question is a bit difficult to answer now in this context. The tax loss carryforward, especially in the US and also here in Germany, still are in our books. We can also use them in the next years. With the positive development of our business, this will come down, of course, in the next years. Perhaps we can have a deeper dive in a session on this one.

Speaker #4: And we can also use them in the next years. But with the positive development of our business, this will come down, of course, in the next years.

Speaker #4: But perhaps we can have a deeper dive in a session on this one. And yeah, you are right. The difference, of course, between the tax, the cash tax rate, and the overall tax rate is coming from this topic.

Alexander Kocherscheidt: You are right. The difference, of course, between the cash tax rate and the overall tax rate is coming from this topic.

Speaker #5: Thank you so much. Thank you.

Sebastian Kuenne: Thank you so much. Thank you.

Speaker #1: Thank you.

Stefan Klebert: Thank you.

Speaker #2: Thank you.

Speaker #4: Thanks.

Alexander Kocherscheidt: Thank you. Thanks.

Speaker #1: We have one more question. Just one moment. And this one comes from Timothy Lee from Barclays. Please go ahead.

Operator: We have one more question. Just one moment. This one comes from Tino Oldani from Barclays. Please go ahead.

Speaker #5: Hi. Thanks for taking my question. Most of the questions have been answered. I just have a follow-up on the 2030 margin guidance. Again, there's probably still room to expand margins.

Tino Oldani: Hi. Thanks for taking my question. Most of the questions have been answered. I just have a follow-up on the 2030 margin guidance. Again, it is probably still room to expand margin. I think one key element is definitely on the PureFlow technologies segment, which is the biggest segment for us. If I look at the margin profile for the segment over the past couple of quarters, it has been staying at similar level. Q2 is actually a little bit down year-on-year as well. I think my question is how far we can see this margin for PFP segment to go on? What will be the driver going forward? That would be super helpful. Thank you.

Timothy Lee: Hi. Thanks for taking my question. Most of the questions have been answered. I just have a follow-up on the 2030 margin guidance. Again, it is probably still room to expand margin. I think one key element is definitely on the PureFlow technologies segment, which is the biggest segment for us. If I look at the margin profile for the segment over the past couple of quarters, it has been staying at similar level. Q2 is actually a little bit down year-on-year as well. I think my question is how far we can see this margin for PFP segment to go on? What will be the driver going forward? That would be super helpful. Thank you.

Speaker #5: But I think one key element is definitely on the pre-approval technologies segment, which is the biggest segment for us. And if I look at the margin profile for the segment over the past couple of years, for the past couple of quarters, it has been kind of staying at similar level.

Speaker #5: And second quarter is actually a little bit down your year as well. So I think my question is how far we can see this margin for PFP segment to go on?

Speaker #5: What would be the driver going forward? That would be super helpful. Thank you.

Speaker #4: Yeah. Sorry, it was a bit difficult to understand your question, but I think we got it that you were talking about the PFP so PureFlow processing margin and the outlook for this.

Alexander Kocherscheidt: Yeah. Sorry, it was a bit difficult to understand your question, but I think we got it, that you were talking about the PFP, so PureFlow Processing margin and the outlook for this, if this is right. As we already explained in the earlier part of the call, so the year-on-year comparison of the single quarter is now no indication of, let's say, margins going down in PFP. Again, I think if we compare the comparable margin in Q2 last year, this was, I think, record margin over at least the 2 years, or going back 2 or even more years. We still keep the margin level quite high, now 27.5%. Also, our expectation is not to shrink the margin in the next years, but to slowly grow.

Speaker #4: If this is right. So as we already explained in the earlier part of the call, so the year-on-year comparison of the single quarter is now no indication of, let's say, margins going down in PFP.

Speaker #4: Because, again, I think if we compare the margin, the comparable margin in Q2 last year, this was, I think, a record margin over at least the last two years, or going back two or even more years.

Speaker #4: So we still keep the margin level quite high. Now 27.5%. Also our expectation is not to shrink the margin in the next years, but to slowly grow.

Speaker #4: Of course, it is already on a very high level, which makes it more, let's say, yeah, challenging to even grow at this level. But still, potential is there.

Alexander Kocherscheidt: Of course, it is already on a very high level, which makes it more, let's say, challenging to even grow on this level. Still, potential is there. I think the levers we were talking about, also on the gross margin side, efforts on the COGS side as well as working on the mix of the business is also still valid for the future. That's the answer to your question, if I got the question right.

Speaker #4: I think the levers we were talking about also on the gross margin side, yeah, efforts on the COGS side as well as working on the mix of the business is also still valid for the future.

Speaker #4: So that's the answer to your question, if I understood the question correctly.

Speaker #5: Yeah, got it. Thank you. Maybe I'll take this outline. Thank you.

Tino Oldani: Yeah. Thank you. Maybe I take this offline. Thank you.

Timothy Lee: Yeah. Thank you. Maybe I take this offline. Thank you.

Speaker #4: Thank you.

Alexander Kocherscheidt: Thank you.

Speaker #1: Thank you. There are no further questions for today. I will now hand the call back to Stefan Kiebert for closing remarks.

Operator: Thank you. There are no further questions for today. I will now hand the call back to Stefan Klebert for closing remarks.

Speaker #2: Yes. Thank you operator. Thank you everybody for listening and thanks for your good question. I'd like to summarize our call and tell you that it was really an outstanding second quarter and very good half year.

Stefan Klebert: Yes. Thank you, operator. Thank you, everybody, for listening, and thanks for your good question. I'd like to summarize our call and tell you that it was really outstanding Q2 and very good H1 with a broad-based improvement in order intake, sales, and EBITDA margin. That really shows we are fully on track. On back of this strong performance also, our outlook for H2 is very optimistic, therefore we have increased our full year guidance for all three guidance parameters. On top of that, we launched a new share buyback program reflecting our confidence in GEA's attractive growth perspectives. With that, I will close the call today and hand back to you, operator.

Speaker #2: With a broad-based improvement in order intake sales and EBITDA margins. So that really shows we are fully on track. And on back of this strong performance, also our outlook for the second half of the year is very optimistic and therefore we have increased our full-year guidance for all three guidance parameters.

Speaker #2: And on top of that, we launched a new share buyback program reflecting our confidence in GEA's attractive gross prospectives. So with that, I will close the call today and hand back to you operator.

Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

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