Q2 2026 Aquafil SpA Earnings Call

August 27, 2026

Speaker #1: We moved. During the question-and-answer sessions, participants were able to ask questions by dialing pound key, then 5 on their telephone keypad. Or by clicking on the green hand button on the web player.

Speaker #1: Now, I will hand the conference over to Giulia Rossi. Investor Relator, please go ahead.

Speaker #2: Thank you, Operator. Good evening, everyone, and welcome to Aquafil Investor Conference Call. Today we will update you on company's first half 2026 results. Before going ahead, let me remind you that this presentation may contain certain statements that are neither reported financial results nor other historical information.

Speaker #2: Any forward-looking statements are based on Aquafil's current expectation about future events and are subject to risk and uncertainty that could cause results to differ from those expressed by the statements.

Speaker #2: For a discussion of these risk and uncertainties, you should review the disclaimer in the presentation we issued today. I will now leave the floor to Mr. Giulio Bonazzi for his remarks.

Speaker #3: Thank you, Giulia. Good evening to all, and thank you again for attending our video conference. The first year of 2026 closed with positive results, in line with the goals set for the current year.

Speaker #3: The first 6 months of the year confirmed the group's solid foundation showing an increase in profitability and a significant improvement in the net financial position.

Speaker #3: On a geographical level, Europe recorded growing volumes in textile yarn product line against a still weak market for carpet yarn. Engineering plastics and other polymers remained substantially stable compared to previous years.

Speaker #3: The United States reported growing volumes in both the textile and carpet yarn product lines. The Asia-Pacific region showed a positive volume trend for carpet yarns.

Speaker #3: The company demonstrated its ability to protect and expand margins during the period, thanks to ongoing cost rationalization measures and the excellent performance of Econil-branded products.

Speaker #3: These results were achieved in a global macroeconomic context still marked by strong instability and impacted by ongoing geopolitical conflicts. This situation continues to drive cost increases for raw materials and transportation, which are largely being recovered in the third quarter and will be further absorbed in the fourth quarter.

Speaker #3: Our commitment to reducing net debt continues. Strict financial discipline and targeted investments in efficiency will continue to support solid cash generation, persistent market uncertainty leaves global demand difficult to predict, however, rigorous cost control and working capital allows us to face the second half of the year with confidence, confirming our goals for 2026.

Speaker #3: I am now available for answering to all your questions. Thank you.

Speaker #1: If you wish to ask a question, you may do so by clicking on the green hand button on the player to ask a question orally, or if you are connected by conference call, please dial pound key 5 to speak.

Speaker #1: If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. We have a first question from Robert Blum from Nissan Partners.

Speaker #1: Please go ahead.

Speaker #4: Okay.

Speaker #1: Yes, we can answer.

Speaker #4: Okay, wonderful. Yeah, thanks so much for the opportunity to ask a question here. Could you provide more detail on the raw material pass-through mechanisms?

Speaker #4: What is the typical lag between sort of the increase in input costs and the corresponding selling price adjustment, and how much of the business is covered by those mechanisms?

Speaker #4: And then as a follow-up to that, can you quantify the unrecovered input cost headwind in Q2, how much is already been recaptured in Q3 pricing, and maybe what additional recovery or cost benefit you expect to see in Q4?

Speaker #4: Thank you.

Speaker #3: Thank you, Robert. Aquafil normally has a lag of 3 months, so our price adjustment mechanism is based on the average of the increase or decrease of the average of the previous quarter versus the second previous one.

Speaker #3: It means that if we have got an increase in raw material prices during the second quarter of 2026, starting from the third quarter, we will apply price increases that are set to recover those cost increases of the raw materials.

Speaker #3: Depending on, let's say, when these price increases have taken place during the quarter, it can be that the price increase, for example in this case of 1st of July, covers entirely the second quarter cost increase in raw materials, or there will still be a tail to be recovered in the fourth quarter.

Operator: Yes, we can, sir.

Speaker #1: Yes, we can sir.

Speaker #2: Okay, wonderful. Yeah, thanks so much for the opportunity to ask a question here. Could you provide more detail on the raw material pass-through mechanisms?

[Analyst]: Okay, wonderful. Thanks so much for the opportunity to ask a question here. Could you provide more detail on the raw material pass-through mechanisms? What is the typical lag between sort of the increase in input costs and the corresponding selling price adjustment, and how much of the business is covered by those mechanisms? Then as a follow-up to that, can you quantify the unrecovered input cost headwind in Q2? How much has already been recaptured in Q3 pricing, and maybe what additional recovery or cost benefit you expect to see in Q4? Thank you.

Speaker #2: What is the typical lag between the increase in input costs and the corresponding selling price adjustment, and how much of the business is covered by those mechanisms?

Speaker #3: This is for the bulk of our business. There is also a small business, particularly connected with nylon textile filament business yarns, where there are contracts, long-term contracts, that are set to be recovered in a 6-month period.

Speaker #2: And then, as a follow-up to that, can you quantify the unrecovered input cost headwind in Q2, how much has already been recaptured in Q3 pricing, and maybe what additional recovery or cost benefit you expect to see in Q4?

Speaker #3: Why this difference between carpet and textile? This is because normally textile yarn, going into the fashion business, it is following what? A two-season rule.

Speaker #2: Thank you.

Speaker #3: Thank you, Robert. Aquafil normally has a lag of three months, so our price-adjustment mechanism is based on the average of the increase or decrease in the average of the previous quarter versus the second previous one.

Giulio Bonazzi: Thank you, Robert. Aquafil normally has a lag of 3 months, so our price adjustment mechanism is based on the average of the increase or decrease of the average of the previous quarter versus the second previous one. It means that if we have got an increase in raw material prices during Q2 2026, starting from Q3, we will apply price increases that are set to recover those cost increases of the raw materials. Depending on, let's say, when these price increases have taken place during the quarter, it can be that the price increase, for example, in this case of 1 July, covers entirely the Q2 cost increase in raw materials, or there will still be a tail to be recovered in Q4. This is for the bulk of our business.

Speaker #3: So there is spring, summer, and autumn, winter collections. So normally our customers are asking us not to change the price for, let's say, contractual volumes within the semester.

Speaker #3: So that's why we have said that we will have still a tail of raw material prices to be recovered or where we will see the recovery during the last quarter of 2026.

Speaker #3: It means that if we have an increase in raw material prices during the second quarter of 2026, starting from the third quarter, we will apply price increases that are set to recover those cost increases of the raw materials.

Speaker #3: In, let's say, during the first quarter and second quarter of 2026, now I'm trying to answer even if I will not tell you full detail of your question, we have suffered very high price increases in raw materials.

Speaker #3: Depending on, let's say, when these price increases have taken place during the quarter, it can be that the price increase—for example, in this case, on the 1st of July—covers entirely the second quarter cost increase in raw materials, or there will still be a tail to be recovered in the fourth quarter.

Speaker #3: As all the chemical and petrochemical businesses have seen, particularly in Europe, but not only, because of the crisis in the Middle East and the Gulf.

Speaker #3: When I speak big price increases, I'm speaking in, let's say, measurement of millions of euros or US dollars. So not 1 or 2, but even a little bit more.

Speaker #3: This is for the bulk of our business. There is also a small business, particularly connected with the nylon textile filament business—yarns—where there are contracts, long-term contracts, that are set to be recovered in a six-month period.

Giulio Bonazzi: There is also a small business, particularly connected with the nylon textile filament business, yarns, where there are contracts, long-term contracts, that are set to be recovered in a 6-month period. Why this difference between carpet and textile? This is because normally, textile yarn, going into the fashion business, it is following what, a 2 season rule. So there is spring/summer and autumn/winter collections. So normally, our customers are asking us not to change the price for, let's say, contractual volumes within the semester. So that's why we have said that we will have still a tail of raw material prices to be recovered, or where we will see the recovery during the last quarter of 2026.

Speaker #3: That's why we say that even if apparently our results may seem a little lower than the expectations in reality, the financial performance has been even higher than the original performance.

Speaker #3: Why this difference between carpet and textile? This is because normally textile yarn going into the fashion business is following what? A two-season rule.

Speaker #3: So now, starting from the third quarter, we should see a further increase in the marginality, with recovery between the third and the fourth quarter of the margins losses that we have lost during the first semester of 2026.

Speaker #3: So there are spring/summer and autumn/winter collections. Normally, our customers ask us not to change the price for, let's say, contractual volumes within the semester.

Speaker #3: If, of course, prices should decline—for example, in the third quarter—we should have, on the other side, a positive effect in the following one.

Speaker #3: So that's why we have said that we will still have a tail of raw material prices to be recovered, or where we will see the recovery, during the last quarter of 2026.

Speaker #4: All right, very good. Thank you for that. One additional follow-up, if I may. How much additional sort of fixed costs reduction remains? And can those additional savings be achieved without limiting operating leverage or production capacity when demand sort of continues to improve?

Speaker #3: In, let's say, during the first quarter and second quarter of 2026—now I'm trying to answer, even if I will not give you the full detail of your question—we have suffered very high price increases in raw materials.

Giulio Bonazzi: Let's say, during Q1 and Q2 of 2026, now I'm trying to answer, even if I will not tell you full detail of your question, we have suffered very high price increases in raw materials, as all the chemical and petrochemical businesses have seen, particularly in Europe, but not only because of the crisis in the Middle East and the Gulf. When I speak big price increases, I'm speaking in, let's say, measurement of millions of euros or US dollars. So not 1 or 2, but even a little bit more. That's why we say that even if apparently our results may seem a little lower than the expectations, in reality, the financial performance has been even higher than the original performance.

Speaker #3: Let's say that during 2023 until 2025, our main focus was on readjusting production capacity according to the market demand. Which, of course, let's say, brought what?

Speaker #3: As all the chemical and petrochemical businesses have seen, particularly in Europe—but not only—because of the crisis in the Middle East and the Gulf.

Speaker #3: When I speak about big price increases, I'm referring to measurements in millions of euros or US dollars. So, not just one or two million, but even a bit more.

Speaker #3: A reduction of variable labor cost, which is—don't want to say automatic, but of course, if you are cutting down production capacity, the first labor cost that you are going to decrease is what?

Speaker #3: Direct labor, because, of course, you have less machinery, which is working. This was particularly strong during 2024. Last year, in 2025, our focus was on reducing what?

Speaker #3: That's why we say that even if, apparently, our results may seem a little lower than the expectations, in reality, the financial performance has been even higher than the original performance.

Speaker #3: Indirect and fixed labor costs. So for us, labor and fixed labor costs are two different concepts, particularly in Europe, because of the local labor market, which is allowing—in case of lower market demand—to recover with automatic systems the less working hours that you have performed during the period.

Speaker #3: So now, starting from the third quarter, we should see a further increase in marginality, with recovery between the third and fourth quarters of the margin losses that we experienced during the first semester of 2026.

Giulio Bonazzi: Starting from Q3, we should see a further increase in the marginality with a recovery between Q3 and Q4 of the margins loss that we have lost during H1 of 2026. If, of course, prices should decline, for example, in Q3, we should have, on the other side, a positive effect in the following one.

Speaker #3: If, of course, prices should decline—for example, in the third quarter—we should have, on the other side, a positive effect in the following one.

Speaker #3: So last year, as you know, we have got a very strong action in containing and reducing fixed labor, so indirect personnel. We gave a number of reduction of more than 100 person, which, as you can understand, it's a lot of money.

Speaker #2: All right, very good. Thank you for that. One additional follow-up, if I may. How much additional, sort of, fixed cost reduction remains? And can those additional savings be achieved without limiting operating leverage or production capacity when demand, sort of, continues to improve?

[Analyst]: All right. Very good. Thank you for that. One additional follow-up, if I may. How much additional sort of fixed cost reduction remains, and can those additional savings be achieved without limiting operating leverage or production capacity when demand sort of continues to improve?

Speaker #3: And this is what we are seeing during 2026, that this recovery is giving us what? Even in presence of volumes that are not growing as expected or, let's say, not growing, we have, of course, a margin that has, you know, returned this action.

Speaker #3: Let's say that during 2023 until 2025, our main focus was on readjusting production capacity according to market demand. Which, of course, let's say, brought what?

Giulio Bonazzi: Let's say that during 2023 until 2025, our main focus was on readjusting production capacity according to the market demand, which of course, let's say brought a reduction of variable labor cost, which is, don't want to say automatic, but of course, if you are cutting down production capacity, the first labor cost that you're going to decrease is direct labor, because of course, you have less machinery which is working. This was particularly strong during 2024. Last year, in 2025, our focus was on reducing indirect and fixed labor costs. So for us, labor and fixed labor costs are two different concepts, particularly in Europe, because of local labor market, which is allowing, in case of lower market demand, to recover, let's say, with automatic systems, the less working hours that you have performed during the period.

Speaker #3: How much? We can still work. What we are currently doing is now pursuing more investments on automation, and energy saving. So these are two very important cost factors that we are targeting as it was also in the original business plan, plus, of course, some new technologies that we are going to implement, particularly within the Econil perimeter.

Speaker #3: A reduction of variable labor cost, which is—I don't want to say automatic, but of course, if you are cutting down production capacity, the first labor cost that you are going to decrease is what?

Speaker #3: Direct labor, because of course you have less machinery that is working. This was particularly strong during 2024. Last year, in 2025, our focus was on reducing what?

Speaker #3: Indirect and fixed labor costs. So for us, labor and fixed labor costs are two different concepts, particularly in Europe, because of the local labor market, which allows—in case of lower market demand—to recover, let's say, without automatic systems, the fewer working hours that you have performed during the period.

Speaker #3: And as I said, during '26 and '27, the target of course without considering inflation is to reduce another 8 to 10 million euros on a yearly basis.

Speaker #4: All right, very good. Thank you very much for the opportunity to ask a question.

Speaker #3: Welcome.

Speaker #1: Now we have a question from Dave Storms from Stormsgate. Please go ahead.

Speaker #3: So, last year, as you know, we took very strong action in containing and reducing fixed labor, so indirect personnel. We gave a number—a reduction of more than 100 people—which, as you can understand, is a lot of money.

Giulio Bonazzi: Last year, as you know, we have got a very strong action in containing and reducing fixed labor, so indirect personnel. We gave a number of reduction of more than 100 person, which as you can understand, it's a lot of money, and this is what we are seeing during 2026, that this recovery is giving us what? Even in presence of volumes that are not growing as expected or, let's say, not growing, we have, of course, a margin that has returned this action. How much we can still work? What we are currently doing is now pursuing more investments on automation and energy saving. These are two very important cost factors that we are targeting as it was also in the original business plan. Plus, of course, some new technologies that we are going to implement, particularly within the ECONYL perimeter.

Speaker #2: Hello, and thanks for the questions. I wanted to ask my first one around North American market. Can you give us any more commentary on maybe what the pricing outlook is for there, and if there's any nuances into the price rationalization initiatives they have in North America versus maybe some of your other markets?

Speaker #3: And this is what we are seeing during 2026: that this recovery is giving us what? Even in the presence of volumes that are not growing as expected or, let's say, not growing, we have, of course, a margin that has, you know, returned this action.

Speaker #3: Sorry, Dave, but your voice was not clear to me if you can repeat your question.

Speaker #2: Of course. Mostly around the North American markets. And what the outlook is there. Maybe layering in price rationalization initiatives in North America for some of your other markets, if there's any nuances.

Speaker #3: How much? We can still work. What we are currently doing is now pursuing more investments in automation and energy saving. So these are two very important cost factors that we are targeting, as it was also in the original business plan. Plus, of course, some new technologies that we are going to implement, particularly within the Aquafil perimeter.

Speaker #3: No. Well, in North America, I would say that the price adjustments are even faster than what it normally happens in Europe or markets like Japan.

Speaker #3: You know, Japan, as you can imagine, knowing Japanese people, they are very resilient. And they are trying, of course, to resist to price increases.

Speaker #3: And, as I said, during 2026 and 2027, the target, of course—without considering inflation—is to reduce another €8 to €10 million on a yearly basis.

Giulio Bonazzi: As I said, during 2026 and 2027, the target, of course, without considering inflation, is to reduce another EUR 8 to EUR 10 million on a yearly basis.

Speaker #3: But in the case of Japan, you have two factors, which is not only raw materials, but also exchange rates that are impacting our marginality over there.

Speaker #2: All right, very good. Thank you very much for the opportunity to ask a question.

[Analyst]: All right. Very good. Thank you very much for the opportunity to ask a question.

Speaker #3: So, you know, there is a continuous ongoing work with our Japanese customers to explain to them that, unfortunately, we have to increase prices. In North America, price adjustments are normally—I mean, accepted by the customers and by the market.

Speaker #3: Welcome.

Giulio Bonazzi: Welcome.

Speaker #1: Now we have a question from Dave Storm from Stormgate. Please go ahead.

Operator: Now we have a question from Dave Storm from Stonegate. Please go ahead.

Operator: Now we have a question from Dave Storms from Stonegate. Please go ahead.

Dave Storm: Hello, and thank you for taking my questions. I wanted to ask my first one around the North American market. Can you give us any more commentary on maybe what the pricing outlook is for there, and if there's any nuances into the price rationalization initiatives they have in North America versus the other markets?

Dave Storms: Hello, and thank you for taking my questions. I wanted to ask my first one around the North American market. Can you give us any more commentary on maybe what the pricing outlook is for there, and if there's any nuances into the price rationalization initiatives they have in North America versus the other markets?

Speaker #4: Hello, and thank you for taking my questions. I wanted to ask my first one around the North American market. Can you give us any more commentary on what the pricing outlook is there, and if there are any nuances to the price rationalization initiatives you have in North America versus maybe other markets?

Speaker #3: Of course, the dynamics may be faster or slower in terms of raw material price increases in that market, depending upon the local demand. I must say that USA market is a little bit less affected by import dynamics in comparison to, for example, the European one, mainly because Chinese tariffs are impeding to Chinese players to operate—for example, selling nylon polymers to the United States.

Speaker #3: Sorry, Dave, but your voice was not clear to me. If you can, please repeat your question.

Giulio Bonazzi: Sorry, Dave, but your voice was not clear to me. If you can repeat your question.

Speaker #4: Of course, mostly around the North American markets—and what the outlook is there. And maybe layering in price rationalization initiatives in North America, or for some of your other markets, if there are any nuances.

Dave Storm: Of course, mostly around the North American markets, and what the outlook is there, and maybe layering in price rationalization initiatives in North America for some of your other markets, if there's any nuances.

Dave Storms: Of course, mostly around the North American markets, and what the outlook is there, and maybe layering in price rationalization initiatives in North America for some of your other markets, if there's any nuances.

Speaker #3: In Europe, the story is completely different. So no, let's say, major issues. We have a major customer in the US, which goes and is managed by long-term contractual pricing.

Speaker #3: No. Well, in North America, I would say that the price adjustments are even faster than what normally happens in Europe or markets like Japan.

Giulio Bonazzi: Well, in North America, I would say that the price adjustments are even faster than what normally happens in Europe or markets like Japan. Japan, as you can imagine, knowing Japanese people, they are very resilient, and they are trying, of course, to resist to price increases. But in the case of Japan, you have two factors, which is not only raw materials, but also exchange rates that are impacting our marginality over there. So, there is a continuous ongoing work with our Japanese customers to explain to them that unfortunately, we have to increase prices. In North America, price adjustments are normally accepted by the customers and by the market. Of course, the dynamics may be faster or slower in terms of raw material price increases in that market, depending upon the local demand.

Speaker #3: And in this case, the price adjustment has taken place within July. So in the month of July, we have recovered, let's say, half of the price increase because if during the month you are recovering it, you're not fully recovering in—during the month of July, but, let's say, from August for this very important American customer, all the raw material price increases will be incorporated in the new pricing.

Speaker #3: You know, Japan—as you can imagine, knowing Japanese people—they are very resilient. And they are trying, of course, to resist price increases.

Speaker #3: But in the case of Japan, you have two factors, which are not only raw materials but also exchange rates that are impacting our marginality over there.

Speaker #3: So, you know, there is continuous ongoing work with our Japanese customers to explain to them that, unfortunately, we have to increase prices. In North America, price adjustments are normally— I mean, accepted by the customers and by the market.

Speaker #2: Understood. Thank you. I wanted to make a question to Econil. With volumes remaining fairly stable year over year, but margins increasing, how should we think about the dynamics of those margin increases between the cost takeouts that you've implemented over the last year, compared to maybe the increase in Econil as a percent of revenue year over year?

Speaker #3: Of course, the dynamics may be faster or slower in terms of raw material price increases in that market, depending upon the local demand. I must say that the USA market is a little bit less affected by import dynamics in comparison, for example, to the European one.

Giulio Bonazzi: I must say that USA market is a little bit less affected by import dynamics, in comparison, for example, of the European one. Mainly because Chinese tariffs are impeding to Chinese players to operate, for example, selling nylon polymers to United States. In Europe, the story is completely different. No major issues. We have a major customer in US, which goes and is managed by long-term contractual pricing. In this case, the price adjustment has taken place within July. In the month of July, we have recovered, let's say, half of the price increase, because if during the month you are recovering it, you are not fully recovering during the month of July. But from August, for this very important American customer, all the raw material price increases will be incorporated in the new pricing.

Speaker #3: Well, last year we have got a very strong performance with regard to Econil. Even a little bit stronger than we expected. That's why maybe during the first semester of this year we have not seen, let's say, a significant increase in our sales.

Speaker #3: Mainly because Chinese tariffs are impeding Chinese players from operating—for example, selling nylon polymers to the United States. In Europe, the story is completely different.

Speaker #3: But we have a lot of new projects that are coming, and that are ongoing. For example, today there has been an announcement by Arc'teryx brand, okay, for textile nylon.

Speaker #3: So, no, let's say, major issues. We have a major customer in the US, which is managed by long-term contractual pricing, and in this case, the price adjustment has taken place within July.

Speaker #3: But also other projects within the carpet and polymer business that are making us very confident to continue our trajectory of growing our Econil in percentage of our total revenues.

Speaker #3: So, in the month of July, we have recovered, let's say, half of the price increase because, if during the month you are recovering it, you're not fully recovering during the month of July. But, let's say, from August, for this very important American customer.

Speaker #3: And a lot of actions of cost reduction that we are implementing between this year and the next one are directed to continuously reducing Econil cost within our framework.

Speaker #3: For the lucky ones of you who are following my LinkedIn social, I have just made a, , let's say, an announcement about, let's say, the new research and development project that we are going to implement with our team during the next 24 months.

Speaker #3: All the raw material price increases will be incorporated into the new pricing.

Speaker #4: Understood, thank you. To turn my second question to Econyl: with volumes remaining fairly stable year over year, but margins increasing, how should we think about the interaction of those margin increases between the cost takeouts that you've implemented over the last year compared to, maybe, the increase in Econyl as a percent of revenue year over year?

Dave Storm: Understood. Thank you. To maybe turn my second question to ECONYL. With volumes remaining fairly stable year-over-year, but margins increasing, how should we think about the interaction of those margin increases between the cost takeouts that you have implemented over the last year, compared to maybe the increase in ECONYL as a percent of revenue year-over-year?

Dave Storms: Understood. Thank you. To maybe turn my second question to ECONYL. With volumes remaining fairly stable year-over-year, but margins increasing, how should we think about the interaction of those margin increases between the cost takeouts that you have implemented over the last year, compared to maybe the increase in ECONYL as a percent of revenue year-over-year?

Speaker #3: You know, so I'm encouraging you. I know that, you know, you have a lot of things to do, but if you follow us on LinkedIn and on social media, you can have also many more daily or, let's say, more frequent information than, you know, a quarterly declaration.

Speaker #3: Well, last year we had a very strong performance with regard to Econyl, even a little bit stronger than we expected. That's why maybe during the first semester of this year we have not seen, let's say, a significant increase in our sales.

Giulio Bonazzi: Well, last year, we have got a very strong performance with regard to ECONYL, even a little bit stronger than we expected. That is why maybe during the first semester of this year, we have not seen, let's say, a significant increase in our sales. But we have a lot of new projects that are coming and that are ongoing. For example, today there has been an announcement by Arc'teryx brand, okay, for textile nylon. But also other projects within the carpet and polymer business that are making us very confident to continue our trajectory of growing our ECONYL in percentage of our total revenues. A lot of actions of cost reduction that we are implementing between this year and the next one are directed to continuously reducing ECONYL cost within our framework.

Speaker #3: But for example. For example, Dave, a big energy savings that we are targeting in Slovenia next year okay, they are going for reducing largely natural gas consumption for the production and consumption of steam within Econil.

Speaker #3: But we have a lot of new projects that are coming, and that are ongoing. For example, today there has been an announcement by Arc'teryx brand, okay, for textile nylon.

Speaker #3: But also other projects within the carpet and polymer business that are making us very confident to continue our trajectory of growing our Econyl in percentage of our total revenues.

Speaker #3: When I say large, I'm talking, you know, of a lot of opportunities.

Speaker #2: That's very helpful. Thank you. And my understanding too is that as gas prices and oil prices in the world go up, that just makes Econil more competitive.

Speaker #3: And, a lot of actions of cost reduction that we are implementing between this year and the next one are directed to continuously reducing Econyl cost within our framework.

Speaker #2: You mentioned that you are working to make Econil more cost competitive with some of the cost takeouts. Through. R&D, with the cost takeouts overall, how should we think about the application of those between Econil and the net debt position and maybe any other initiatives that you would earmark those savings for?

Speaker #3: For the lucky ones of you who are following my LinkedIn social, I have just made a—let's say—an announcement about, let's say, the new research and development project that we are going to implement with our team during the next 24 months.

Giulio Bonazzi: For the lucky ones of you who are following my LinkedIn social, I have just made, let's say, an announcement about, let's say, the new research and development project that we are going to implement with our team during the next 24 months. I am encouraging you. I know that you have a lot of things to do, but if you follow us on LinkedIn and on social media, you can have also many more daily, or let's say, more frequent information than a quarterly declaration.

Speaker #3: Well, of course, the ultimate target is to make Econil as cost competitive or less expensive or less costly than petrochemical nylon. This is, I mean, you don't need me to tell you this.

Speaker #3: You know, so I'm encouraging you. I know that you have a lot of things to do, but if you follow us on LinkedIn and on social media, you can also get more daily or, let's say, more frequent information than just a quarterly—a quarterly declaration.

Speaker #3: I must say that recently, this let's say, dream or this target has become even a little more challenging because the benchmark is changing from European caprolactam production supply.

Dave Storm: That is very helpful.

Dave Storms: That is very helpful.

Speaker #3: But for example.

Speaker #4: That's very helpful. If I could.

Speaker #3: So European prices, that, you know, European suppliers are disappearing, in fact. Okay? So the new benchmark is to make Econil competitive vis-à-vis with Chinese caprolactam production cost, which, as you can understand, is setting the bar even higher.

Speaker #3: For example, Dave, a big energy savings that we are targeting in Slovenia next year: they are going for largely reducing natural gas consumption for the production and consumption of steam within Econyl.

Giulio Bonazzi: For example, the big energy savings that we are targeting in Slovenia next year, they are going for reducing largely natural gas consumption for the production and consumption of steam within ECONYL. When I say large, I am talking of a lot of opportunities.

Speaker #3: When I say large, I'm talking, you know, of a lot of opportunities.

Speaker #3: But, I mean, we have good feelings. We have good possibilities with some without automation, with better yields on waste, with lower emissions, with lower energy consumption.

Speaker #4: That's very helpful. Thank you. And my understanding, too, is that as gas prices and oil prices in the world go up, that just makes Econyl more competitive.

Dave Storm: That is very helpful. Thank you. My understanding too is that as gas prices and oil prices in the world go up, that just makes ECONYL more competitive. You mentioned that you are working to make ECONYL more cost competitive with some of the cost takeouts through the R&D. With the cost takeouts overall, how should we think about the application of those between ECONYL and the net debt position and maybe any other areas that you would earmark those savings for?

Dave Storms: That is very helpful. Thank you. My understanding too is that as gas prices and oil prices in the world go up, that just makes ECONYL more competitive. You mentioned that you are working to make ECONYL more cost competitive with some of the cost takeouts through the R&D. With the cost takeouts overall, how should we think about the application of those between ECONYL and the net debt position and maybe any other areas that you would earmark those savings for?

Speaker #3: So we have a lot of things that are boiling in the pot, you know, that are making us quite confident to continue this trend of cost reduction, you know, which has been quite important during the last 18 to 24 months.

Speaker #4: You mentioned that you are working to make Econyl more cost competitive with some of the cost takeouts. Through R&D, with the cost takeouts, overall, how should we think about the application of those between Econyl and the net debt position, and maybe any other areas?

Speaker #2: This is very helpful. Thank you for taking my questions and good luck in the next quarter.

Speaker #4: That you would earmark those savings for?

Speaker #3: My pleasure.

Speaker #1: Now we have a question from Vincenzo Antonio Di Buono from Banca Acros. Please go ahead.

Giulio Bonazzi: Well, of course, the ultimate target is to make ECONYL as cost competitive or less expensive or less costly than petrochemical nylon. You do not need me to tell you this. I must say that recently, this, let's say, dream or this target has become even a little more challenging because the benchmark is changing from European caprolactam production supply, so European prices that European suppliers are disappearing, in fact. So the new benchmark is to make ECONYL competitive vis-a-vis with Chinese caprolactam production cost, which, as you can understand, is setting the bar even higher. But we have good feelings, we have good possibilities with automation, with better yields on waste, with lower emissions, with lower energy consumption.

Speaker #2: Hi, good evening. Can you hear me?

Speaker #3: Yes, we can.

Speaker #3: I must say that recently these—uh, let's say, this dream or this target has become even a little more challenging because the benchmark is changing from European ketorolactone production supply.

Speaker #2: Okay. First question is about volume. Could you provide some Colorado volume trends you are currently seeing across different geographies in particular regarding North America?

Speaker #2: And second question is about Econil, I mean, you asked you speak the before, but I mean, given the recent increase in caprolactam prices, have you so have you noticed any increase in customer demand for Econil products or an improvement in their competitive position compared to with conventional nylon?

Speaker #3: So, European prices—you know, European suppliers are disappearing. In fact, okay, so the new benchmark is to make Econyl competitive vis-à-vis Chinese caprolactam production costs, which, as you can understand, is setting the bar even higher.

Speaker #2: Thank you.

Speaker #3: But I mean, we have good feelings. We have good possibilities with some—with automation, with better yields on waste, with lower emissions, with lower energy consumption.

Speaker #3: Volumes by geography, let's say that what we are seeing currently also during the third quarter is, let's say, a stability of the first semester with regard to North America and to Asia-Pacific.

Speaker #3: So, we have a lot of things that are boiling in the pot, you know, that are making us quite confident to continue this trend of cost reduction, which has been quite important during the last 18 to 24 months.

Giulio Bonazzi: We have a lot of things that are boiling in the pot that are making us quite confident to continue this trend of cost reduction which has been quite important during the last 18 to 24 months.

Speaker #3: So the volumes over there and the market demand seems to be quite resilient. So we are not seeing any let's say, particular problem over there.

Speaker #3: In Europe, it is more a roller coaster. Which, you know, it has also happened during the second quarter of 2026. On top of that, they are all on holidays.

Speaker #4: This is very helpful. Thank you for taking my questions, and good luck in the next quarter.

Dave Storm: This is very helpful. Thank you for taking my questions, and good luck in the next quarter.

Dave Storms: This is very helpful. Thank you for taking my questions, and good luck in the next quarter.

Speaker #3: My pleasure.

Giulio Bonazzi: My pleasure.

Speaker #3: So it is still, you know, we need a couple of weeks to have how can I say, a more serious feeling about the market demand.

Speaker #1: Now we have a question from Vincenzo Antonio Di Bono from Banca Akros. Please go ahead.

Operator: Now we have a question from Vincenzo Antonio Di Bono from Banca Akros. Please go ahead.

Operator: Now we have a question from Vincenzo Antonio Di Buono from Banca Akros. Please go ahead.

Speaker #3: Of course, there is a big uncertainty. This is no doubt. And you don't need to tell you. I believe that in every business, you know, we are experiencing this kind of problem.

Vincenzo Antonio Di Bono: Hi. Good evening. Can you hear me?

Vincenzo Antonio Di Buono: Hi. Good evening. Can you hear me?

Speaker #4: Hi, good evening. Can you hear me?

Speaker #3: Yes, we can.

Giulio Bonazzi: Yes, we can.

Speaker #4: Okay, first question is about volume. Could you provide some color on the volume trends you are currently seeing across different geographies, in particular regarding North America?

Vincenzo Antonio Di Bono: Okay. First question is about volume. Could you provide some color on the volume trends you are currently seeing across different geography, and in particular regarding North America? Second question is about ECONYL. You speak before, but given the recent increase in caprolactam prices, have you noticed any increase in customer demand for ECONYL products or an improvement in the competitive positioning compared with conventional nylon? Thank you.

Vincenzo Antonio Di Buono: Okay. First question is about volume. Could you provide some color on the volume trends you are currently seeing across different geography, and in particular regarding North America? Second question is about ECONYL. You speak before, but given the recent increase in caprolactam prices, have you noticed any increase in customer demand for ECONYL products or an improvement in the competitive positioning compared with conventional nylon? Thank you.

Speaker #3: So but nevertheless, I mean, the third quarter is still pretty in line with our forecast. So we are not seeing anything particularly strange or different.

Speaker #4: And second question is about Econyl. I mean, you asked, you spoke before, but I mean, given the recent increase in caprolactam prices, have you seen—have you noticed any increase in customer demand for Econyl products, or an improvement in their competitive position compared to—compared with conventional nylon?

Speaker #3: What is going to happen from September and I would say when I say September, I speak about order intake, you know? So September, we know more or less what is going to be.

Speaker #3: Of course, what is going to be in October and November and December will depend by the order entry of September and October. And, you know, this is something that is very important with still particularly for the European market.

Speaker #4: thank you.

Giulio Bonazzi: Volumes by geography, let's say that what we are seeing currently also during Q3 is, let's say, a stability of the first semester with regard to North America and to Asia Pacific. So the volumes over there and the market demand seems to be quite resilient, so we are not seeing any particular problem over there. In Europe, it is more a roller coaster, which it has also happened during Q2 2026. On top of that, they are all on holidays. So it is still we need a couple of weeks to have a, how can I say, a more serious feeling about the market demand. Of course, there is a big uncertainty. This is no doubt, and you don't even need to tell you, I believe that in every business we are experiencing this kind of problem.

Speaker #3: Volumes by geography. Let's say that what we are seeing currently, also during the third quarter, is, let's say, a stability versus the first semester with regard to North America and to Asia Pacific.

Speaker #3: Demand of Econil. The demand of Econil has been resilient and still there is a lot of interest by the market for developing Econil products.

Speaker #3: So the volumes over there and the market demand seem to be quite resilient. So we are not seeing any, let's say, particular problem over there.

Speaker #3: Today, we have available capacity. So we are very how can I say, active in promoting, you know, new product development for Econil in the different business applications where Aquafil is active.

Speaker #3: In Europe, it is more of a roller coaster, which, you know, has also happened during the second quarter of 2026. On top of that, they are all on holidays.

Speaker #3: So carpet, textile, and polymer and engineering polymer businesses. And of course, we are still seeing a lot of interest by the market. So we have still a lot of confidence that with Econil and particularly, of course, if you are making it more cost competitive, the possibility of growing this business area is still quite big for us.

Speaker #3: So, it is still, you know, we need a couple of weeks to have, how can I say, a more serious feeling about the market demand.

Speaker #3: Of course, there is a big uncertainty—this is, no doubt—and you don't need me to tell you. I believe that in every business, you know, we are experiencing this kind of, of problem.

Speaker #3: So, but nevertheless, I mean, the third quarter is still pretty in line with our forecast. So we are not seeing anything particularly strange or different.

Giulio Bonazzi: Nevertheless, the Q3 is still pretty in line with our forecast. We are not seeing anything particularly strange or different. What is going to happen from September, and when I say September, I speak about order intake. September, we know more or less what is going to be. Of course, what is going to be in October and November and December will depend by the order entry of September and October. This is something that is very important, particularly for the European market. Demand of ECONYL. The demand of ECONYL has been resilient and still there is a lot of interest by the market for developing ECONYL products. Today, we have available capacity, so we are very, can I say, active in promoting new product development for ECONYL in the different business applications where Aquafil is acting.

Speaker #2: Okay. Thank you.

Speaker #3: You're welcome, Vincenzo.

Speaker #3: What is going to happen from September—and when I say September, I’m speaking about order intake, you know? So, in September, we more or less know what is going to be.

Speaker #1: The next question comes from Pietro Narghi from Intermonticine. Please go ahead.

Speaker #3: Of course, what is going to be in October, November, and December will depend on the order entry of September and October. And, you know, this is something that is very important, particularly for the European market.

Speaker #2: Hello. Could you hear me?

Speaker #3: Yes, we can.

Speaker #2: Okay. Thank you. Good afternoon. Just a quick question on the net debt. So. Net debt has been trending in the right direction, and the leverage appears to be moving back towards a more sustainable level.

Speaker #3: The demand for Econyl has been resilient, and there is still a lot of interest from the market in developing Econyl products.

Speaker #2: Assuming the leveraging plan continues as expected during HQ, how should we think about capital allocation in 2027? Could this create room for CapEx to return to a more normalized level?

Speaker #3: Today, we have available capacity, so we are very, can I say, active in promoting, you know, new product development for Econyl in the different business applications where Aquafil is acting.

Speaker #2: Thank you.

Giulio Bonazzi: Carpet, textile, and polymer and engineering polymer business. Of course, we are still seeing a lot of interest by the market. We have still a lot of confidence there that with ECONYL, and particularly, of course, if you are making it more cost competitive, the possibility of growing this business area is still quite big for us.

Speaker #3: So, carpet, textile, and polymer—and engineering polymer—business. And of course, we are still seeing a lot of interest by the market. So, we still have a lot of confidence that, with Econyl and particularly, of course, if you are making it more cost competitive, the possibility of growing this business area is still quite big for us.

Speaker #3: Thank you for this question, which is quite interesting. And it deserves a little bit of more color, if I may. Last year, the debt reduction has been a little lower than what we were expecting, mainly because we have gone through two major changes.

Speaker #3: One change was change of European supplier for caprolactam. From, let's say, more traditionally historical one to a newer one which was more competitive, but on the other side, which shorter payment terms.

Speaker #4: Okay. Thank you.

Vincenzo Antonio Di Bono: Okay, thank you.

Vincenzo Antonio Di Buono: Okay, thank you.

Speaker #3: You're welcome, Vincenzo.

Giulio Bonazzi: You are welcome, Vincent.

Speaker #3: And this has created a cash absorption particularly during the first semester of 2025. Then because of the how can I say, infrastructural crisis of the chemical business in Europe, we have during the second semester of last year and during the first semester of this year, increased largely the purchasing of raw material from import.

Operator: The next question comes from Pietro Nacci from Intermonte SIM. Please go ahead.

Operator: The next question comes from Pietro Nargi from Intermonte SIM. Please go ahead.

Speaker #1: The next question comes from Pietro Narchi from Intermonte. Please go ahead.

Pietro Nacci: Hello. Could you hear me?

Pietro Nargi: Hello. Could you hear me?

Speaker #4: Hello. could you hear me?

Speaker #3: Yes, we can.

Giulio Bonazzi: Yes, we can.

Speaker #4: Okay, thank you. Good afternoon. Just a quick question on the net debt. So, net debt has been trending in the right direction, and the leverage appears to be moving back towards a more sustainable level.

Pietro Nacci: Okay. Thank you. Good afternoon. Just a quick question on the net debt. Net debt has been trending in the right direction, and the leverage appears to be moving back towards a more sustainable level. Assuming the deleveraging plan continues as expected during H2, how should we think about capital allocation in 2027? Could this create room for CapEx to return to a more normalized level? Thank you.

Pietro Nargi: Okay. Thank you. Good afternoon. Just a quick question on the net debt. Net debt has been trending in the right direction, and the leverage appears to be moving back towards a more sustainable level. Assuming the deleveraging plan continues as expected during H2, how should we think about capital allocation in 2027? Could this create room for CapEx to return to a more normalized level? Thank you.

Speaker #3: Import means from overseas. Which means, of course, longer transit times. So again, cash absorption that is impacting our net financial position. Last but not least, Econil growth also when we are growing our Econil product lines, the let's say, cash necessity for developing Econil products since we start from purchasing of waste again, which comes from overseas, it is higher than the one that was historically for Aquafil depending upon local caprolactam suppliers with longer payment terms.

Speaker #4: Assuming the leveraging plan continues as expected during '82, how should we think about capital allocation in 2027? Could this create room for capex to return to a more normalized level?

Speaker #4: Thank you.

Speaker #3: Thank you for this question, which is quite interesting. And it deserves a little bit more color, if I may. Last year, the debt reduction was a little lower than what we were expecting, mainly because we have gone through two major changes.

Giulio Bonazzi: Thank you for this question, which is quite interesting, and it deserves a little bit of more color, if I may. Last year, the debt reduction has been a little lower than what we were expecting, mainly because we have gone through two major changes. One change was change of European supplier for caprolactam from, let's say, more traditional historical one to a newer one, which was more competitive, but on the other side, with shorter payment terms. This has created a cash absorption, particularly during the first semester of 2025. Then, because of the, how can I say, infrastructural prices of the chemical business in Europe, we have, during the second semester of last year and during the first semester of this year, increased largely the purchasing of raw material from import. Import means from overseas, which means, of course, longer transit times.

Speaker #3: That being said, I will stop with this, you know, historical explanation. This trend has been almost finished. In the sense that now we are full flexibility for even leading and leading well without any European supplier.

Speaker #3: One change was a switch of European supplier for ketorolactone, from, let's say, a more traditional, historical one to a newer one, which was more competitive but, on the other side, had shorter payment terms.

Speaker #3: The European purchasing of raw material is now quite limited. So the eventual higher cash absorption for transformation of purchasing from local to overseas it is not significant.

Speaker #3: And this has created a cash absorption, particularly during the first semester of 2025. Then, because of the, how can I say, infrastructural crisis of the chemical business in Europe, we have, during the second semester of last year and during the first semester of this year, largely increased the purchasing of raw materials from import.

Speaker #3: It means that from now on, you can finally or you should finally see a better correlation between EBITDA cash flow and reduction of the net debt.

Speaker #3: Good news. Second good news, of course, if the trend continues, it will open possibilities either for increasing capital expenditures, but of course, if we have no significant growth, eventually we can dedicate more capital expenditures to improving and having a faster cost reduction, like for example, anticipating automation projects, okay, which is still part of our business plan.

Speaker #3: Import means from overseas, which means, of course, longer transit times. So again, cash absorption that is impacting our net financial position. Last but not least, Econyl growth—also, when we are growing our Econyl product lines, the, let’s say, cash necessity for developing Econyl products, since we start from purchasing waste, again, which comes from overseas, it is higher than the one that was historically for Aquafil, depending upon local caprolactam suppliers with longer payment terms.

Giulio Bonazzi: Again, cash absorption that is impacting our net financial position. Last but not least, ECONYL growth. Also, when we are growing our ECONYL product lines, the, let's say, cash necessity for developing ECONYL products, since we start from purchasing of waste, again, which comes from overseas, it is higher than the one that was historically for Aquafil, depending upon local caprolactam suppliers with longer payment terms. That being said, I will stop with this historical explanation. This trend has been almost finished in the sense that now we have full flexibility for even leading, and leading well, without any European supplier. The European purchasing of raw material is now quite limited. So the eventual higher cash absorption for transformation of purchasing from local to overseas, it is not significant.

Speaker #3: Or eventually, in the near future, to look for external growth, like acquisitions or consolidation of our industry. So these are, of course, possibilities that are opening up.

Speaker #3: That being said, I will stop with this, you know, historical explanation. This trend has almost finished, in the sense that now we have full flexibility for even leaving and leaving wealth without any European supplier.

Speaker #3: Maybe not during 2026, but from 2027 that are, of course, interesting for returning to see the company growing, which is the last piece of the puzzle that we are targeting, you know, of course.

Speaker #3: The European purchasing of raw material is now quite limited, so the eventual higher cash absorption for transformation of purchasing from local to overseas is not significant.

Speaker #3: Better margins, lower debt, growth.

Speaker #2: Okay. Thank you.

Speaker #3: It means that from now on, you can finally, or you should finally, see a better correlation between EBITDA, cash flow, and reduction of the net debt.

Giulio Bonazzi: It means that from now on, you can finally, or you should finally seeing a better correlation between EBITDA cash flow and reduction of the net debt. Good news. Second good news, of course, if the trend continues, it will open possibilities either for increasing CapEx, but of course, if we have no significant growth, eventually we can dedicate more CapEx to improving and having a faster cost reduction. Like, for example, anticipating automation projects, okay, which is still part of our business plan, or eventually, in the near future, to look for external growth, like acquisitions or consolidation of our industry. So these are, of course, possibilities that are opening up, maybe not during 2026, but from 2027, that are, of course, interesting for returning to see the company growing, which is the last piece of the puzzle that we are targeting.

Speaker #1: As a reminder, if you wish to ask a question, you may do so by clicking on the green hand button on the player. To ask your question orally, or if you are connected by conference call, please dial pound key 5 to speak.

Speaker #3: Good news. Second good news, of course: if the trend continues, it will open possibilities either for increasing capital expenditures. But of course, if we have no significant growth, eventually we can dedicate more capital expenditures to improving and having a faster cost reduction—like, for example, anticipating automation projects—which is still part of our business plan.

Speaker #1: We have a question from Tommaso Nieddu from Kepler Chevreux. Please go ahead.

Speaker #2: Hi. Thank you a lot for taking my questions. I have just one. And the question is on the demand visibility, as you described, difficult to predict given geopolitical instability.

Speaker #2: Yet you are confirming fullier targets. So my question is, is guidance confidence really a cost pricing execution call rather than a demand call at this point, or better could volumes surprise negatively and guidance still be met on cost and price alone?

Speaker #3: Or eventually, in the near future, to look for external growth, like acquisitions or consolidation of our industry. So these are, of course, possibilities that are opening up.

Speaker #2: Thank you.

Speaker #3: Well, of course, cost reduction activity which has taken place and still taking place is giving us confidence to keep, let's say, our margins healthy.

Speaker #3: Maybe not during 2026, but from 2027—that is, of course, interesting for returning to see the company growing, which is the last piece of the puzzle that we are targeting, you know, of course.

Speaker #3: And this, of course, gives us confidence to continue. The trend and trajectory which we have started from 2024, 2025, and the first semester of 2026.

Giulio Bonazzi: Of course, better margins, lower debt, growth.

Speaker #3: better margins, lower debt, growth.

Speaker #3: I would be surprised if there were big negative let's say, news from the market demand. We are a little cautious in, let's say, forecasting growth.

Speaker #4: Okay. Thank you.

Pietro Nacci: Okay. Thank you.

Pietro Nargi: Okay. Thank you.

Operator: As a reminder, if you wish to ask a question, you may do so by clicking on the green hand button on the player to ask your question orally. Or if you are connected by conference call, please dial pound key 5 to speak. We have a question from Tommaso Miezzo from Kepler Cheuvreux. Please go ahead.

Speaker #1: As a reminder, if you wish to ask a question, you may do so by clicking on the green hand button on the player to ask your question early, or, if you are connected by conference call, please dial the pound key followed by 5 to speak.

Speaker #3: We are more let's say, considering a scenario of stability okay, of course, we don't see why the overseas markets should enter into let's say, problems.

Speaker #1: We have a question from Tomaso Niedu from Kepler Chevreux. Please go ahead.

Tommaso Miezzo: Hi. Thank you a lot for taking my questions. I have just one, and the question is on the demand visibility, as you described, difficult to predict given geopolitical instability, yet you are confirming full-year targets. My question is guidance confidence really a cost pricing execution call rather than a demand call at this point, or better, could volumes surprise negatively and guidance still be met on cost and price alone? Thank you.

Tommaso Nieddu: Hi. Thank you a lot for taking my questions. I have just one, and the question is on the demand visibility, as you described, difficult to predict given geopolitical instability, yet you are confirming full-year targets. My question is guidance confidence really a cost pricing execution call rather than a demand call at this point, or better, could volumes surprise negatively and guidance still be met on cost and price alone? Thank you.

Speaker #4: Hi, thank you a lot for taking my questions. I have just one, and the question is on demand visibility. As you described, it's difficult to predict, given geopolitical instability.

Speaker #3: I repeat, the uncertainty is more for the European market which is now having a lot of negative influences from the war between Russia and Ukraine.

Speaker #4: Yet, you are confirming fully your targets. So, my question is: Is guidance confidence really a cost/pricing execution call rather than a demand call at this point, or, better, could volumes surprise negatively and guidance still be met on cost and price alone?

Speaker #3: The crisis of the Middle East which is also creating lack of certain raw materials other than traditional ones for our industry. And of course, let's say, inflation which is still which is still a factor which we can't which we can't forget.

Speaker #4: Thank you.

Speaker #3: Well, of course, the cost reduction activity, which has taken place and is still taking place, is giving us confidence to keep, let's say, our margins healthy.

Giulio Bonazzi: Well, of course, cost reduction activity, which has taken place and still taking place, is giving us confidence to keep, let's say, our margins healthy. This, of course, gives us confidence to continue the trend and trajectory which we have started from 2024, 2025, and the first semester of 2026. I would be surprised if there were big negative, let's say, news from the market demand. We are a little cautious in, let's say, forecasting growth. We are more, let's say, considering a scenario of stability, okay? Of course, we don't see why the overseas markets should enter into, let's say, problems. I repeat that the uncertainty is more for the European market, which is now having a lot of negative influences from the war between Russia and Ukraine.

Speaker #3: You know, for example, if you have to buy something which has electronics inside as you very well know, because of the incredible growth of the investments in the data centers and artificial intelligence, all the costs are on the rise.

Speaker #3: And this, of course, gives us confidence to continue the trend and trajectory which we have started from 2024, 2025, and the first semester of 2026.

Speaker #3: So I would be surprised honestly speaking. I'm not expecting let's say, big or tragical problems from the market demand. Of course, you know, we are a little bit cautious because here I must say we are seeing one month super strong and the second one super weak.

Speaker #3: I would be surprised if there were big negative, let's say, news from the market demand. We are a little cautious, and let's say, are more, let's say, considering a scenario of stability. Okay? Of course, we don't see why the overseas markets should enter into, let's say, problems.

Speaker #3: So yeah, but it's still there, you know, but of course, you know, it is something which is unprecedented of that we have never seen so far.

Speaker #2: Okay. Thank you a lot.

Speaker #3: Most welcome.

Speaker #3: I repeat, the uncertainty is more for the European market, which is now having a lot of negative influences from the war between Russia and Ukraine.

Speaker #1: There are no more questions at this time. So I end the conference back to the speakers for any closing comments.

Speaker #3: As always, I thank you for attending our first semester of 2026. I thank you also for all the questions that you have asked. And I wish you a good rest of the day.

Giulio Bonazzi: The crisis of the Middle East, which is also creating a lack of certain raw materials other than traditional ones for our industry. Of course, inflation, which is still a factor, which we cannot forget. For example, if you have to buy something which has electronics inside, as you very well know, because of the incredible growth of the investments in the data centers and artificial intelligence, all the costs are on the rise. I would be surprised, honestly speaking, I am not expecting big or tragical problems from the market demand. Of course, we are a little bit cautious because here, I must say, we are seeing one month super strong and the second one super weak. It is still there. Of course, it is something which is unprecedented, or that we have never seen so far.

Speaker #3: the, crisis of the Middle East, which is also creating, lack of than traditional, ones for, for our industry. And of course, let's say, inflation, which is still, which is still a factor which we can't, which we can't forget, you know.

Speaker #3: And if you have any question, please contact Giulia Rossi and she will come back to you with all the explanations that you are looking for.

Speaker #3: For example, if we have to buy something which has electronics inside, as you very well know, because of the incredible growth of investments in data centers and artificial intelligence, all the costs are on the rise.

Speaker #3: So, I would be surprised, honestly speaking. I'm not expecting, let's say, big or tragic problems from the market demand. Of course, you know, we are a little bit cautious, because here I must say we are seeing one month super strong, the second one super weak.

Speaker #3: So, yeah, but it's still there, you know. But, of course, it is something which is unprecedented or that we have never seen so far.

Speaker #4: Okay. Thank you a lot.

Tommaso Miezzo: Okay. Thank you a lot.

Tommaso Nieddu: Okay. Thank you a lot.

Speaker #3: Most welcome.

Giulio Bonazzi: Most welcome.

Operator: There are no more questions at this time. I hand the conference back to the speakers for any closing comments.

Speaker #1: There are no more questions at this time, so I'll hand the conference back to the speakers for any closing comments.

Speaker #3: As always, I thank you for attending our first semester of 2026. I thank you also for all the questions that you have asked, and I wish you a good rest of the day.

Giulio Bonazzi: As always, I thank you for attending our H1 2026. I thank you also for all the questions that you have asked. I wish you a good rest of the day. If you have any questions, please contact Giulia Rossi, and she will come back to you with all the explanations that you are looking for.

Speaker #3: And if you have any questions, please contact Julia Rossi, and she will get back to you with all the explanations that you are looking for.

Operator: Thank you.

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Q2 2026 Aquafil SpA Earnings Call

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