Speaker #1: In two parts: first, a presentation by the Verallia Group management team, represented by Patrice Luca, CEO and Christina Riesgo, CFO. Afterwards, there will be a Q&A session.
Speaker #1: During this session, you may ask question in two ways: by submitting a written question in the box below the player, or by joining the conference call and dial.
Speaker #1: Pound key 5 on your telephone keypad to enter the queue. I will now hand over to the management team. Please go ahead.
Speaker #2: Good morning, everyone. And thank you for joining us, and welcome to our call for Q3 2026 financial results. As usual, we'll go through our presentation, and then we'll have— and we'll take time for the Q&A session.
Speaker #2: After a quick introduction, we'll go directly to our numbers, with Christina, and then I will come back on our outlook for 2026. So, as an introduction, just to remind you that Verallia is the global leader in glass packaging, we own the number 1 in Europe, number 2 in Latin America, and number 3 worldwide.
Speaker #2: On this chart, you have our ID card, you have on the left the 2025 split of our sales by segment, and as you know, one of our strong assets is our customer base, and the diversified and balanced end market in which we operate.
Speaker #2: We operate in 12 countries, with 34 glass plants and 63 furnaces. We do serve about 11,000 customers, and produce around 18 billion bottles and jars per year.
Speaker #2: Please note also that we are running 19 cullet recycling centers, allowing us to control about 50% of our needs for external cullet. Before moving to our numbers, I would like to share with you the strategic partnership we signed with Moët Hennessy's a few weeks ago.
Speaker #2: This partnership is focused on innovation for next-generation glass packaging. It is about customer intimacy, innovation, and decarbonization. It's customer intimacy with a long-term R&D partnership with one of our most iconic premium customers, combining customer expertise and industrial know-how.
Speaker #2: It's innovation with the objective to develop new glass generation glass packaging, targeting a 30% to 50% weight reduction while maintaining strength and performance. And finally, it is about decarbonization, because reducing weight is one of the levers to pursue industry CO2 emission reduction.
Speaker #2: So this is the beginning of a journey of innovation to prepare the future of glass. Now, about our financial numbers. Our profitability is in line with H1, despite the lower activity during the summer, and despite the pressure on our cost with the current inflationary situation.
Speaker #2: Q3 revenue is done by minus 2.1% year over year to $829 million, with an organic growth at minus 3.1% year over year. Which is giving a 9-month revenue down by minus 1.6% year over year, to $2,527 million.
Speaker #2: With an organic growth of minus 1.7% year over year. About the adjusted EBITDA, Q3 is $172 million, minus 4.8% versus Q3 last year, with a margin of 20.8%, minus 59 bips versus Q2 last year.
Speaker #2: Which is giving a 9-month adjusted EBITDA at $523 million. Minus 1.5% versus last year, with a margin at 20.7%, similar to last year, just plus 3 bips and about the net debt, we are pursuing our leverage trajectory reduction, at the end of September we are now at 2.5, compared to 2.6 in June, and 2.7 in December.
Speaker #2: So now I let the floor to Christina for more details.
Speaker #3: Thank you, Patrice. In the third quarter, revenue was $829 million. Down 2.1, reported or minus 3.1% organic. The decline is a volume story. Volumes cost us 25 million, and this was concentrated in July and August, after a stable first half.
Speaker #3: In Europe, that's— I mean, this reflects the lower German beer volumes, fully in line with our industrial footprint, and a slow summer in France and Iberia, especially in wines.
Speaker #3: Italy, on the other hand, kept a solid momentum, helped by the ramp-up of the new Persia furnaces. In Latin America, volumes were up, led by beer, mainly in Brazil, and wine activity in Chile and Argentina improved materially, after the decline we saw in the first half.
Speaker #3: And I would point out that trends improved towards the end of the quarter, with September actually close to last year. The key point on this slide is price mix, that is, that is a negative 6.8 million.
Speaker #3: That is less than 1% of revenue, in line with the minus 7.7 million of Q2, which confirms that prices have stabilized year on year.
Speaker #3: So the price effect has gradually phased faded over the year and was very limited in Q3. Currency added 4 million, mostly the Brazilian reais, and there was no scope effect, and Argentina added 10 million.
Speaker #3: Moving to the 9-month bridge, it's essentially the first half and the third quarter added together. The price effect sits mostly in Q1, and the volume effect almost entirely in Q3, as we just saw.
Speaker #3: Revenue for the 9 months was $2,527 million, down 1.6%, reported and minus 1.7% organic. Volumes cost us 27 million, 25 of that came in the third quarter, and in the first half volumes were down only marginally.
Speaker #3: Excluding expected decline in Germany, volumes remain slightly up over 9 months. With a spirit put just and beer up, and the decline as we just mentioned in Q3, mainly in wines.
Speaker #3: In Latin America, volumes were broadly stable, with improving trends in Argentina and Chile in Q3. Price mix was a negative 30 million, that is, negative overall, but it has eased materially.
Speaker #3: About minus 16 million in the first quarter, less than 8 million in each of Q2 and Q3. Currency added 7.5 million, mostly the Brazilian reais, and Argentina added 8.5 million.
Speaker #3: So over the 9 months, the revenue decline reflects the price adjustment at the start of the year, and the expected lower German volumes. Turning to profitability, let's look at the third quarter EBITDA bridge.
Speaker #3: Adjusted EBITDA in Q3 was $172 million, with a margin of 20.8% versus 21.3 a year ago. That is down 59 basis points year on year, but I would point out that it is in line with the 20.7% of the first half.
Speaker #3: There are two negatives, and then our self-help. Activity was negative by 25 million, and that reflects the lower sales volumes, and our prioritization of cash generation, with a more marked decrease in finished goods inventories in Q3 than last year.
Speaker #3: As a reminder, since Q2, the activity pillar shows only the impact of sales and inventory and margin. The fixed cost of our new furnaces sits in order.
Speaker #3: The spread between prices and cost was negative by 16 million. A slightly negative price effect, and still an unfavorable mix. Cost inflation, itself, was neutral.
Speaker #3: Thanks to our hedging, our energy costs were lower, despite higher export prices, and that offset the increase in other cost items like oil prices, mainly in freight and packaging.
Speaker #3: Against those two headwinds, our performance action plan delivered 11 million, a 2.2% reduction in net cash production costs, the other line added 21 million.
Speaker #3: That includes around 10 million of savings from our footprint optimization plan, up from what we reported 8 million in Q2, and exactly as we were planned.
Speaker #3: Currency added around 2 million, mostly the real, and Argentina was minus 1.3 million. So the message, again, for the quarter is that self-help, productivity plus the restructuring savings, absorbed most of the volume and the price pressure, and kept our margin in line with the first half.
Speaker #3: Now, looking at the 9-month consolidated adjusted EBITDA. Despite lower revenue, adjusted EBITDA was $523 million, down only 1.5%, and the margin was stable at 20.7%, up 3 basis points.
Speaker #3: So how do we protect profitability? Again, activity was negative by 26 million, and that is almost entirely the third quarter. In the first half, activity was broadly flat, together with sales volumes.
Speaker #3: The spread was negative 36 million, on lower selling prices, mainly in Q1, and the negative mix. On cost, we had a slight deflation, and it came from the first quarter, as I was mentioning, the expensive 2022 energy hedges rolled off.
Speaker #3: And then the offset, similar to Q3, our performance action plan delivered 35 million, year-to-date, so again a 2.2% net reduction in cash production costs, and other added 18 million.
Speaker #3: So in the first half, it was slightly negative as the first restructuring savings were offset by the ramp-up cost of the new furnaces in Pecia, Campobon, and Zaragoza hybrid, and in the third quarter, with the savings building up, it turned clearly positive.
Speaker #3: Currency was a favorable almost 4 million, and Argentina was So over the 9 months, net productivity and our restructuring actions kept our adjusted EBITDA broadly stable, and the margin flat on a year-on-year.
Speaker #3: Despite that, a difficult summer. Then our continual cash generation flows through the balance sheet, as you can see on the page. Net debt came down to $1,736 million at the end of September.
Speaker #3: That includes 62 million of lease liabilities. That compares to $1,779 million at the end of June, and $1,861 million at the end of last year.
Speaker #3: So leverage improved again, as Patrice was mentioning at the beginning, to 2.5 times. Our last 12-month adjusted EBITDA from 2.6 in June and 2.7 at the end of December.
Speaker #3: And I would note that we actually achieved this despite having a last 12-month EBITDA at $684 million, which is a slightly lower than December.
Speaker #3: And it reflects clearly our new focus on strong cash generation, combined with a cash outflow of yesterday, 11 million, for the dividend that we paid out of the 2025 earnings.
Speaker #3: So we continue to deliver on our deleveraging trajectory. And finally, the financing structure and liquidity. Total borrowings were $2,224 million, against $488 million of cash, giving the $1,736 million of net debt.
Speaker #3: Our debt is well spread across our sustainability-linked bonds and our conventional bonds. With maturities out of 2033. On top of that, we have the term loan B, our commercial paper program, and two unloan revolving facilities.
Speaker #3: At the significant part of our closing rate exposure is hedged through interest rate caps, so we are well protected on rates. And finally, total available liquidity was $1,048 million at the end of September, up from $976 million at the end of June, and we have no significant debt maturity before 2028.
Speaker #3: So we are in a very comfortable position on liquidity and the maturity profile. So with that, I'll hand back to Patrice for the outlook.
Speaker #1: Okay. Thanks, Christina. So at the end of September, what we could say is that we are on track to deliver our guidance, despite a much more difficult context since Q2, with this inflationary environment.
Speaker #1: Within this context, the company is demonstrating its resilience. The good execution of our footprint adaptation in just a few months is now supporting our performance.
Speaker #1: So therefore, we remain confident to meet 2026 guidance, and this is why we confirm our guidance for full year 26, and aim to generate an adjusted EBITDA of around $700 million, the free cash flow of around $220 million, excluding the restructuring cash out plan in relation to our footprint optimization.
Speaker #1: With our footprint optimization, our industrial adaptation plan being completed, we remain focused on strengthening our competitiveness, cash generation, and deleveraging, by, one, delivering enhanced PAP savings, and two, keeping capex under strict control, around 8% of sales.
Speaker #1: So thanks a lot for your attention, and I think it's now time to answer your questions.
Speaker #2: If you wish to ask a question, you may do so by submitting a written question in the box below the player, or by joining the conference call and dial, pound key 5 on your telephone keypad, to enter the queue.
Speaker #2: If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Emanuel Chevalier from CICCIB, please go ahead.
Speaker #4: Yes, hello. Do you hear me?
Speaker #1: Yes, yes. Perfect, Emanuel.
Speaker #4: Yes. Thank you for taking my question. I got two pleas. The first one, the strong decrease in finished goods inventory in Q3, what can we expect for Q4?
Speaker #4: And the second one, is different, there has been further furnace closures in Europe recently, we saw last night that OI had issued a profit warning, what can you tell us about the changes in the competitive environment, please?
Speaker #4: Thank you.
Speaker #1: Okay. So first question, about the strong decrease in Q3, inventory decrease or inventory variation in Q3, you're right, Emanuel, so it has a significant impact in our Q3 results.
Speaker #1: And it was, I would say, a specific topic to Q3, with a strong wishes to control our inventory level, and focus on cash generation.
Speaker #1: As it has been said by Christina, this will not be the situation in Q4. When you're moving from Q3 to Q4, we do not expect this impact.
Speaker #1: Two, about the furnace closure in Europe, so you're right, and you know that since the end of 2023, the industry has been closing significant capacity.
Speaker #1: Amount. Last figure I have is that we should be now around 24 furnaces with the latest announcement of RDAG. So to be followed up, we have done as a reminder, we have done our job with the closure of SN and keep in mind that in a short period of time, finally, SN in Germany, sorry, and keep in mind that in a short period of time, in Germany, Northwestern Europe, we have closed we moved from 10 furnaces to 6 furnaces.
Speaker #1: So significant reduction. So we have done our part of the job, plus the what we did in UK, and in France, not rebuilding a furnace in Cognac.
Speaker #1: So what we do see as a market environment is that we do see that over time, the overcapacity which is active since 23 is reducing, and which is, I would say, a good news for the better use of overall capacity installed in Europe.
Speaker #1: And today, when I'm looking France, Italy, Iberia, Southwest Europe, we are close to be we are close to be balanced between demand and capacity.
Speaker #1: The overcapacity we see in the still for two years to three years is much more located in North Eastern Europe, in Germany. With especially the opening of Cina.
Speaker #1: Hope I have answered your question, Emanuel.
Speaker #4: Yes. Thank you very clear.
Speaker #2: As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more oral questions at this time.
Speaker #2: So I hand the conference back to the speakers for the written questions.
Speaker #1: All right. Well, thanks a lot. So David Plesset and the head of IR, we indeed have a few written questions, which I will share with you now.
Speaker #1: Well, the first one, I think, from Pete Lagavert from DWS has, I think, mostly been addressed by Patrice. But I'll still repeat it, and see whether you wish to add anything.
Speaker #1: It's how would you describe the current capacity situation in Europe? Are there further closures needed to balance it? So let's mark it wide.
Speaker #3: Okay. So back on that, so the overcapacity is reducing. Since 23, the demand is going to be the capacity, sorry, is reducing since 2023, with many closures, that's what I have just said.
Speaker #3: Some are still to come, in my view, according to what I'm reading. We do believe that we have done our job, again, focusing on big impact in North Eastern Europe for us, with Germany moving from 10 to 6.
Speaker #3: But certainly, maybe more to come. We'll see. Which is going to push quicker the balance between capacity and demand.
Speaker #1: All right. Thanks, Patrice. Another one from Emanuel Quiche-Lazare, can you please update us on your energy hedging coverage percentage for the remaining of 26, and then for 27 and 28?
Speaker #3: You know that so we have a clear hedging strategy, clear hedging policy. Which is to be at 80% year plus 1, 40% year plus 2, and 20% year plus 3 for Europe.
Speaker #3: First of all, just want to mention that for 26, no impact on the non-edge to come, as we are fully covered, I would say, 95, 6 and above.
Speaker #3: So no significant and material impact to come. Two, for 27, we are broadly in line with our policy. Still some position to be taken, being cautious with, obviously, the current forward we see.
Speaker #3: But we are broadly covered. For 27, and fully aligned with our policy for 28 and 29, with good positions compared to, obviously, the current spot price.
Speaker #3: So this is where we stand.
Speaker #1: Fantastic. Thanks, Patrice. Another question that came from Pete Lagavert, I think one related to energy hedging. So you've just answered that. Another question was how do you expect energy impacting profitability in 27, but I guess that's been shared as much as we can there.
Speaker #1: And one more question is, do you expect EBITDA adjustments to come down in 27? I assume that refers to the restructuring charges. And I don't think we expect any more of these next year.
Speaker #1: So moving on to a question from Francisco Ruiz with BNP Paribas. How sustainable do you expect the weakness in volume seen during Q3 to be?
Speaker #1: Do you expect, well, further restructuring measures should be executed? And then a reference to the OI print, and I'm quoting Paco, the print was significantly below expectations.
Speaker #1: Do you think this could add pressure for price increases next year? So many questions there.
Speaker #3: Yeah. So first one, above the volume sustainability, it is clear that summer has been lower than what we were below our expectation. Especially July and August.
Speaker #3: In September, we were back much more in line with H1 trends. So it was, I would say, much more specific compared to our forecast or view in July and August.
Speaker #3: And October, so far, is much more aligned with what we saw in September, so much more aligned with what we had in H1. But obviously, we are monitoring that and adapting as per customer orders and customer forecasts.
Speaker #3: But basically, and for next year, so we do not expect big volume increase, but much more in line and something which is going to be zero plus compared to what we had in 26.
Speaker #3: Want to be very cautious on that. Above the restructuring, so again, we have done quite significant with positive impact this year. And I would like to mention that we have done that in a quite short period of time, without any disruption.
Speaker #3: Being add-on cost, being problem with customer delivery service. So I think it has been well managed in a short period of time. And we are taking the benefit in H2.
Speaker #3: And obviously, fully our impact next year. At this stage, no more to come, but restructuring is part of a life of a company where we need to keep on trying to optimize processes, resources, and all of that.
Speaker #3: So if at a point of time, we have plans and we need to do because of a market environment or whatsoever, obviously, the company will be ready to do so.
Speaker #3: But again, we have done quite significant move this year. And according to what we see in front of us, big part is done.
Speaker #1: Thank you, Patrice. Well, written questions keep flowing, so please bear with us. One is from Jorge Miro from GVC, guys. Can you please give us more color on pricing for next year?
Speaker #1: Considering the current gas prices, do you see Verallia and sector, sorry, with strength to increase them? And there was another question from Inigo Egusquiza from Kepler.
Speaker #1: Which is about the same. Can you expect price hikes of 27 in a context of the current energy prices? And have you started negotiations with customers?
Speaker #3: Okay. So this is a key question. Obviously, so too early to be definitive, because we are entering in this process. But what I can share with you, and I think it's not a surprise, is that you all know that we are, as we speak, in an inflationary situation.
Speaker #3: Which is obviously calling for price increase. This is the intent. And obviously, it will depend on market condition and environment. But there is a need and a willingness to recover the inflation situation from energy and gas and electricity and what is coming all the items which are oil related, packaging, plastic, and logistic.
Speaker #3: So too early to comment on that. But for sure, the inflationary situation environment is pushing for price increase. So we are entering in this negotiations.
Speaker #1: Okay. Thank you, Patrice. One from Centil Secar from Globe. Could you please discuss the demand environment in LATAM? And how the competitive landscape is evolving?
Speaker #1: Are you seeing any pricing development, changes in competitive intensity, or industry capacity?
Speaker #3: Well, in Latin America, so the context is a little bit different than in France. Pricing is much more pricing evolution, as we are in inflation country.
Speaker #3: I mean, this is we have much more regular price increase, regular negotiation, being obviously Argentina is obvious. But Chile as well. And in Brazil, it's about the same.
Speaker #3: So we have the opportunity to come up and update our pricing much more aligned with the cost of factors. This is what we see.
Speaker #3: In terms of capacity, the we see something which is balanced. And in terms of market, we see Brazil which has been a very robust in terms of growth since the beginning of since the beginning of the year.
Speaker #3: So good news for us coming from Latin America.
Speaker #1: Thanks, Patrice. Another one from Inigo Egusquiza with Kepler. Don't you think that maintaining the EBITDA guidance sound a bit optimistic? This means an EBITDA of over 175 million versus the 160 achieved in Q4 25.
Speaker #1: Could you explain this improvement?
Speaker #2: Yeah, I'll take it. So for Q4, the starting point is 161 million, that we generated last year. And our outlook for this year, that's not assume any recovery in volumes or any further price decline.
Speaker #2: So what moves are mostly drivers that we control. First, we have a footprint savings that deliver 10 million a quarter, as we saw over the first nine months.
Speaker #2: And those were not in Q4 2025. Second, we have our performance action plans that also deliver more or less about 10 million every quarter.
Speaker #2: Third, we have an easier price comparison, in Q4 last year, prices were still coming down, while this year, they have been stable year on year since Q2.
Speaker #2: And then lastly, we also benefit from the interest indirect cost compensation on electricity CO2, that we have been very cautious up to now this year, since we were still waiting for the official confirmation from the authorities.
Speaker #2: And we'll book it in Q4 for the year. For Iberia and for Germany. And then finally, on activity, we actually expect inventory variation to weigh on EBITDA less than it did in Q3.
Speaker #2: Because we normally traditionally rebuild inventories in Q4, we will keep it very tight in control because our priority is to generate cash. But what we are going to do is produce to demand.
Speaker #1: Fantastic. Thank you, Christina. I think we've now two last questions. I'll probably raise them together because they more or less relate, I think, to the same topic.
Speaker #1: One question from Sen and Kiran from Musenic. Can you please share your thoughts about returning to investment grade? And another one from Pete Lagerwerf again.
Speaker #1: Is where do you expect leverage to trend over the next quarters? And at which levels would you expect sorry, would you pay a full cash dividend for 2027?
Speaker #1: So basically, leverage investment grade and dividend.
Speaker #2: So look, Alan, I'll expand on this one. Leverage is down to 2.5, as I mentioned earlier, right? And we are down from 2.6 in June and 2.7 in December.
Speaker #2: And net debt is 184 million lower than a year ago. So returning to investment grade is clearly a goal that we want to pursue.
Speaker #2: And the leveraging is clearly a priority, as we as I mean, as you saw with the decisions that we took this last quarter. So our financial trajectory, it's supporting this, right?
Speaker #2: Free cash flow and the leveraging and a strong liquidity profile. Together with the right working I mean, capital allocation choices is such as a script dividend, it's driving, right, our decisions.
Speaker #2: So we keep a very regular and open dialogue with the agencies. As you saw, Moody's has just published a report leaving our rating and outlook unchanged.
Speaker #2: But in the end, rating decisions and their timing, it's in the agency's hands, right? We just need to ensure that we deliver on our delivery and we will not reverse engineer the ratings model and so I cannot speculate on a date on a leverage level.
Speaker #2: But our priority is to keep the trend and we'll announce a bit more on the capital markets day the outlook for the long to medium term.
Speaker #1: Fantastic. Thank you, Christina. Thank you, Patrice. I think we're done with the written questions.
Speaker #4: The next question comes from Jean-François Grandjean from Otto BHF. Please go ahead.
Speaker #5: Yes. Good morning. Just one more question for my side. I will come back on the spread price mix effect. We saw an acceleration of the decrease for the Q3 with minus 16 versus 36 in loan for the first nine months.
Speaker #5: So we see a degradation for the price mix spread effect. Can you explain why? And what do you expect for the Q3? And you made some comment about the price increase with your current negotiations.
Speaker #5: Do you expect a lower impact for this spread effect next year? Thank you.
Speaker #1: Well, so for next year, Jean-François, it's I mean, we cannot speak about it at this time and rendez-vous in February when we'll present our fully result with a good view of all the negotiation and market environment.
Speaker #1: So we'll be back to you guys at that time. And before letting the floor to Christina, maybe for much more details, keep in mind that what you are when you are saying that in Q3, it's accelerating, the spread, keep in mind that in Q1, we were slightly positive or zero plus.
Speaker #1: In Q2, we are at minus 21. And in Q3, we are at minus 16 million euro. So there is not no acceleration compared to Q2.
Speaker #1: What is clear is that you see that we started the year before the Middle East situation, with a spread which was close to be zero, I would say, for you.
Speaker #1: Obviously, job being done on the selling price side. And with a good position on the cost of factors. And since that, and starting in Q2 and in, let's say, in April, obviously, we got compared to our estimates.
Speaker #1: Degradation in terms of everything which was so the non-edge part of our energy, one, and two, everything which is brand-related cost. And so obviously, it has weight on Q2.
Speaker #1: And in Q4, in Q3 as well, a little bit less. So hopefully, it's clear for you, Jean-François.
Speaker #5: Okay. Absolutely. Okay. Thank you.
Speaker #4: The next question comes from Manuel Laurent from Santander. Please go ahead.
Speaker #6: Yes. Hello. Good morning. Just a follow-up on. Q4 trends and the guidance confirmation for the full year. I think that Christina did a pretty good job in order to build up the bridge in terms of profitability year on year, assuming a footprint, PIP, and CO2 savings, plus a little bit more benign pricing background, if I'm understand properly.
Speaker #6: However, if you look instead of what happened 12 months ago, what just had happened, and you address the issue on a quarter and quarterly basis, things are a little bit more complex because if you look to the history, historically, your top line in Q4 versus Q3 is roughly 6 to 8 percent lower.
Speaker #6: So you will have roughly 50 to 60 million euros less of top line revenues. And assuming that in Q3, you already have the savings from footprint, the savings from PIP, and that is already consolidating in the numbers that you presented in Q3.
Speaker #6: So it's not going to be a delta of improvement in Q4. So probably my question is, why in a scenario of less 50 to 60 million euros less revenues in Q4 and the consolidation of those savings already in Q3 numbers and no further delta versus Q4, are you going to achieve a higher profitability in Q3?
Speaker #6: Thank you.
Speaker #1: Thanks a lot. This is a very good and fair point. Well, Christina said it. I mean, we had significant desktocking effect in our numbers in Q3.
Speaker #1: So I think you have well understood the bridge compared to last year. I think it is quite clear. And we have the levers which have been described by Christina.
Speaker #1: When you move from Q3 to Q4, desktocking has a significant impact in the activity. And if you look at the bridge between revenue and EBITDA, you see that the variation of the revenue is close to 100 percent in the EBITDA.
Speaker #1: Due to this, due to this variation or desktocking. Which will not be the case which will not be the case in Q4. So this is one of the key explanations.
Speaker #1: Plus, ICC, that so the indirect cost compensation mechanism, which has been officialized and that will take as fully in Q4 for the full year.
Speaker #1: Because we are very cautious waiting for the confirmation of that. And the good news of that is going to be recurrent for the next year, especially in Germany and Iberia.
Speaker #1: So this is why we see this and this is why we are so confident. To meet our guidance as it has been described.
Speaker #6: Great. And just a follow-up. What we should expect from the capital market day some of your competitors have, let's say, withdraw the guidance expectations for.
Speaker #6: Year in the current, let's say, choppy backdrop. I believe that last time I asked about this issue, you mentioned that we should expect both qualitative and quantitative let's say, mid-target expectations.
Speaker #6: So can you elaborate a little bit about what you can elaborate? Regarding capital market day.
Speaker #1: So thanks a lot to speak about it. So first of all, yes, we are going to have a rendezvous in more than two weeks from now, so on November 18th.
Speaker #1: This is going to be the opportunity for us to share a little bit more of how do we see the business, how do we see the segment evolutions, and we will be back to some items and especially we will discuss and we will sorry, we will present our mid-term view of our business for '29.
Speaker #1: So we are planning to give a mid-term guidance for '29, three years from now. What is going to take place in '27, I mean, okay, obviously, it has impact, but it's another topic.
Speaker #1: What we want to propose is something which is a mid-term objective. To give a much more long-term view, mid-term, long-term view, rather than just focusing on next year.
Speaker #6: Okay. Great. Thank you. See you in a couple of weeks then.
Speaker #1: Thank you. We have no more questions.
Speaker #4: There are no more questions at this time. So I hand the conference back to the speakers for any closing remarks.
Speaker #1: So thanks a lot for your attendance and thanks a lot for all the fair questions you put on the table. So let's meet now in more than two weeks.
