ACS, Actividades de Construcción y Servicios, S.A. (ACS) Earnings Call Transcript

Good morning, and welcome to our Capital Markets Day 2026. It's been 2 years since the last time we got together in our CMD 2024 in which we share our vision, our strategy and our figures for the period from '24 to '26. Today, we're planning in the same with a period from '27 to 2030, we will share again our vision. We'll share again our strategy and our numbers. And you're going to get a lot of information. But there's 5 key messages. I want where I would like everyone to take away. The first 1 is a super cycle that is coming. Infrastructure is an e gold. We are going to experience a super cycle in investment like never before. Not only in the core infrastructure, transportation, but also in water, energy, nuclear, industrial, critical metals, defense, biopharma and we are very well positioned to capture a big part of it. Second, it's not just about growth. It's about resiliency. And we are so diversified between sectors and between geographies that we are in a very good position, not just to grow, but to remain strong. We have a very, very robust balance sheet. 90% of our contracts are low risk. And when you look at inflation over the last 6 years, which accounted for around 6% CAGR inflation, 7% exclude China, and our NPAT has been growing at a CAGR of 20%. That shows the resiliency we have. Third, very strong operational cash flows. Very strong operational cash flows that not only will allow us to do very strong money operations to restrain our capabilities, but also to invest in greenfield projects and assets that will give us recurrent EBITDAs and dividends. Of course, with a very, very disciplined capital allocation. Four, we're going to be giving very, very ambitious targets. But they are credible, and we have been showing that track record and that credibility over the last 5 years. And this is why, in addition to all those messages, I want to start talking about what we have delivered up to now. What has happened since our Capital Markets Day back in 2024. So let's start with that. Back in '24, we gave a CAGR of 9% for our revenues, and we ended up achieving 14%. We said that we would achieve from EUR 43 billion to EUR 48 billion by '26. We ended up in 56 approach, which is a figure that we're planning to provide more or less by the end of the year. If we focus on the net profit, we were going to announce a 14% CAGR. We ended up in 20%, EUR 1.16 billion approx by the end of this year versus the EUR 850 million to EUR 1 billion that we promised. Net operating cash flow, we said that we'll achieve an average between EUR 1.1 billion and EUR 1.3 billion. We're going to end up this year around EUR 2.3 billion. And the backlog has increased 13% to EUR 111 billion. As I said before, solid, reliable, low risk, diversify across sectors in geographies. But let's get even deeper in some of the main achievements from the last 4 years. The first thing is about our ESG, our global leadership. Turner has been the first contractor, the first engineering English fraction company in North America for the sixth consecutive years. Furthermore, Flatiron is the first heavy contractor transportation constructor in the U.S. ACS Group has been appointed top #1 international contractor for 12 years out of the last 14. We are the first construction company in Australia, and we are top 3 in Europe and Asia Pacific. And when you go by sectors, we have multiplied by 4 our backlog in artificial intelligence, digital intake. We have won more than 600 projects across 30 critical minerals. We have multiplied by 2 our backlog in energy, in water and industrial. Please be aware that we were under a noncompete in a lot of our geographies until beginning of 2025. We have EUR 2.5 billion backlog in nuclear and more than EUR 5 billion in defense and security. And what has happened with our assets. In greenfield, we were awarded 400 -- SR-400 in Georgia, which is 1 project out of more than 30 projects greenfield that we've been awarded in the last 4 years. 2.1 gigawatts IT that are under development, and we expect to have commercialized 1.3 gigawatts by next year, much faster pace than what we thought at the beginning. Our small scale data center platform under HOCHTIEF is going in the right truck as well. We already commercialized and build 2 of them. There's 4 in progress with very advanced negotiations. We'll get into more detail later on those. So let's talk now about our brownfield, Abertis. Abertis has multiplied 4.6 by 4.6, its EBITDA backlog, has increased by 50 years, its EBITDA backlog and has a multiple of 9.5x EBITDA backlog versus net debt. Remember, before '22 that 9.5% number was 3.7%. We have more than EUR 63 billion out of Abertis, assets under management across more than 60 projects. So let's start with our portfolio. I said before, we're quite diversified across geographies and across sectors. So this is a proof. EUR 65 billion in North America, EUR 22 billion in Europe, EUR 24 billion in Asia Pacific, in which sectors? 25% data centers, 25% transportation that includes sustainable mobility and aviation and the rest through different high-growth areas. AI Digital, I mentioned energy, water and industrial. We're talking about EUR 6.5 billion, 6%, out of which EUR 2.5 billion are nuclear, 5% Security and Defense, General building 11%, sports, 2%, biofarm 11%, critical minerals, 8%.. And what's coming? What is coming is a wave of investments, no matter what asset class you look at, EUR 6 trillion just in upgrading aging infrastructure. And that goes through rail, highways, airports because the reality is that infrastructure is aging and a big part of it has to be expanded or replaced. And all those programs continue in place. AI, $3 trillion. And it's important to touch on this figure. We've been looking at the demand of data centers for the next years. And there was a lot of different curves, a lot of different projections, right? Everyone was talking about 300 gigawatts by 2030 versus the 100 gigawatts approx right now globally, there's a little bit more conservative cases around the 240 gigawatts by 2030, and there is more pessimistic and stress case scenarios of 180 gigawatts. The projections today you are going to be seeing is based on the stress case, assuming that only 180 gigawatts will be achieved by 2030. And on the other side, that we keep our market share. There's reasons to believe that we're going to be able to increase that market share for different reasons. First, more complex projects, the need for behind-the-meter solutions of grids energy solutions. Location shifting, planning effort, engineering, mineralization, self performance, more complex. So I would assume that we're in a very good position to increase that market share. We're not considering that approach. We're just focusing on our market share and this risk case of the curve. And then we have all the investments coming from the globalization. We're facing series of challenges, geopolitically speaking, there's plenty of investment in defense, security, but also in the restoring of industry back to Europe and North America. So these are static priorities. The first thing to position ourselves across all these high-growth areas. We want to capture the next investment cycle. Second, expand our community abundance. There's going to be a series of presentations today in which we will explain how we're planning to increase our set performance capabilities and modularization. Why? Because that will increase our margins. And three, scale of infra investments. I don't want to repeat myself because for the last 4 years, you always hear me talking about assets. Assets give stability. Assets give long-term EBITDA, assets give long-term cash flows and dividends. And that's why our main places to make sure that we take our positioning in the infrastructure sector to invest in greenfield. How are we going to enable all of these? First, people, labor, number 1 challenge today. I'm going to give you a few figures. Just today, 2026, first 9 months, we hired 22,000 people across our projects. And how are we going through all those higher and training. We opened [indiscernible] as University. We have more than 45,000 courses in the [indiscernible] University and active users. We have had more than 60 programs across all different sectors to train our people, and we have certified more than 10,000 blue collars, recently to make sure that they were up to speed for products. That's the power of ACS, and that's 1 of our biggest advantages that we have. And then, of course, a disciplined capital allocation, investment-grade rating. We are very committed to shareholder remuneration, but we do have a strong balance sheet that will allow us not only to remunerate our shareholders, but also to continue investing in assets. We have a unique model. It's a flying wheel that fits itself. On one side, our end-to-end capabilities, our ability to the greenfield on the other side, investments. So let's start with the first of our verticals. We're going to have later today Mike Kuntz, our global sponsor that is managing a artificial intelligence program, but he is also the Chairman of Global, our platform with GIP. Ben Kaplan who is here general-manager data center at Turner and [ John Dorca ], our Managing Director for LightenAsia, will join him to explain everything around data centers. At the back, you will see the 3 curves that I was referring before. We are planning for this risk case scenario, same market share. But I'm going to make a reflection about demand. Because there's a lot of conversations about demand. There's 2 things that right now become a challenge, potentially for AI. The first 1 is, what's the demand? The second 1 is debt markets. On the demand side, more than 50% is for emerging technologies, is for 6G, is for electric vehicles. And the other 1 is for the ongoing migration. And of course, we are competing and consumer AI adoption. So I believe the demand is solid. And I believe that data center's occupancy is high. The key question is going to be the funding of all of that. And it's going to be very related with the results, et cetera, et cetera. But from our perspective, the visibility we do with our clients, we believe that all the demand is there. We continue talking to hyperscalers. We continue talking to the big platforms. And what we're seeing is an incredible speed up of investment. In fact, in Q3, our new orders in data centers increased by 127% versus the 20% that we were seeing before that. So that's a very strong sign. This is what we're planning to 2030, EUR 27 million to EUR 30 billion in data center across the group, 24.5% in North America, up to EUR 3 billion in Europe and up to 2.5% in Asia Pacific. We are positioning a lot of these demand through our longest clients, hyperscalers with a lot -- I mean, long-term certainty and we believe that we're going to be able to increase margins. I'm going to change right now to the next high growth area. And we're going to spend a lot of time on this one. Why? Because it's one of our highlights. No one has any doubt here that we're strong in data centers and digital. What most of you probably are not so familiar is what we are developing in this space, energy, water, industrial. We did sell our ACS Industrial division back in '21. We had an uncompleted close until the beginning of '25. Some areas within ACS could deliver some of these projects, some others could not. And we've been working very strongly to recover capabilities. Why? Because all projects are connected. Very difficult nowadays to build data center without the power, without the energy. You can envision a future without nuclear. Very difficult to start talking about geopolitics without critical metals. So they are all very important part of the ecosystem. So we had to rebuild again our capabilities across sectors. And we've done it. And we believe that from the EUR 4 billion backlog that we have today, we are very confident that we will be able to achieve between EUR 8.5 billion to EUR 9 billion by 2030. Later today, [indiscernible] is going to come to stage to explain and take all of us through this new sector. But what I would like to show you right now is the experience and credentials that we have currently in ACS, in this sector, including, of course, the 1 that we kept under HOCHTIEF, on UGL, the organic growth that we've been able to replicate since the beginning of '25 and the acquisitions that we've been doing since the beginning of '25 to reinforce our capabilities in North America, in Europe in Asia Pacific. All those dots and all those numbers are the credentials we submit to our clients, for the new projects. But the numbers, the 550 projects that you see on the screen divided on the 110 in Asia Pacific, 300 in Europe and the 140 are the projects we have won in this space since the beginning of 2025. That shows the power of ACS. That shows the power of our platform. And that takes me to the next high-growth area, which is nuclear. Ian Baldwin, our global sponsor for nuclear will explain more in detail our strategy. But through HOCHTIEF, we were 1 of the strongest players in the nuclear industries back in the '50s back in the '60s, more than 70 years of experience through over the last 2, 3 years, basically, we've been doing decommissioning, long life our nuclear plans. Three years ago, we decided to be part of the nuclear Gas. I will start the work in it. One year-and-a-half EUR 2.5 billion, 140 projects. SMR, large plans, [indiscernible] engineering a little bit of everything, EUR 3.5 billion backlog that we expect to convert into EUR 8 billion to EUR 9 billion by 2030. Allow me to move on into the next one, security and defense. We've been working on infrastructure for defense clients for many years. Right now, we do have a backlog of EUR 5 billion that has accelerated obviously a lot within the next years. I'm going to invite later today Lieutenant General Michael [indiscernible], who is the Head of AC Defense and is planning for our different strategy, will take us through a defense strategy. But at the end, we are leveraging our global platform and end-to-end capabilities for defects. At the end of the day, defense wants firms that understand all the different sectors. You got to really build any resilient infrastructure without communications, without power, without side, without IDT components, et cetera, et cetera. So that's what puts us in a good spot for achieving the thresholds of backlog that we are projecting on a screen. And I move into our next high-growth area, critical metals. In our Capital Markets Day, I introduced critical metals and it introduces for 2 reasons. The first one, we are very much exposed with thermal coal. And we thought that because of EGS, number one. And number two, because it was a market of the future, we had to jump into critical metals. We started announcing a lot of bolt-on acquisitions. Remember, Novo Pro, Proventia, Minsa, et cetera, one after the other. They were very small, plenty of engineers that are training and bringing Sedgman and Thiess. And we wanted to go through all the commodities, who doubts that the future is about copper, with all the needs in the industry or rare earth, lithium, uranium. So we started transforming ourselves, bringing those capabilities. And what I'm about to show you is a couple of things. The first one, our ambition to achieve a EUR 12 million to EUR 13 billion backlog by 2030 through this segment, but also what we have been able to achieve in terms of engineering, in this space. And the following map shows the projects won by ACS Group since 2024 in critical metals. Two years more than 520 projects. At the right, you will see the critical metals. I won't read all of them, 55 copper, 47 lithium projects, 37 iron ore, 13 rare Earth, 3 Uranium. The full scale of worldwide critical metals, especially in Australia, U.S., Canada, but across Europe and South America. In the previous ambition towards 2013, you would see that a lot of these engineering that comes under segment represents a very small part of the backlog. The upside that is not in our figures is that these projects that represent a very small engineering amount could potentially become EPCMs. How many of these 520 projects will become EPCMs, we don't know. We're not guessing. We're not including. We leave that for an upside. Grant Fraser, CEO of Sedgman and Michael Wright, CEO of Thiess, will join us later to take us through this strategy. So with all what I have explained, were intrinsic value that we see in 2030, just for our end-to-end excluding assets. So if we normalize and EBITDA, we had the assets by 2030, we'd be talking about a EUR 5.4 billion approx EBITDA versus more than 3 that we have right now. And it will take a multiple, let's say, between 9% to 10%, 10.5%. It depends on where we come out with a multiple of Turner by 2030. We're moving in a range between 16 and 20 x Turner. We would be looking for intrinsic value of the end-to-end solutions of EUR 52 million to EUR 56 billion. Just looking at our EBITDA and with reasonable multiples. Let's jump into the assets. Two types of assets, digital energy, [indiscernible] Marana, who is the CEO of AC Digital Energy will take us through all the portfolio of digital and energy under ACS. And then Howard, which the CEO of [indiscernible] will do the same through all the assets within our Global platform. And then in transport and social infrastructure, 2 fronts: Nuria Haltiwanger, that will explain as CEO of IRIDIUM or global greenfield assets portfolio. And Jose Aljaro and Martin Duva will represent Abertis and will take us for Abertis. But I'm going to touch a little bit on both sections. I will start with our large data center platform. We have 1.2 gigawatts IT and [indiscernible] we have additional 1 gigawatt under ACS. So we expect to have like 2.1 gigawatts IT across both by 2030. It's going very well. We expect to have 1.3 gigawatts commercialized next year. And the first one has been Dallas Fort Worth. But we're in a very advanced level of conversations in Australia, in Virginia, in the ones in Europe and the one in Ohio. We are commissioning the one in Madrid and that is following [indiscernible] and we are also in advanced conversations and all those developments are going very well. The value of this platform. Just the platform we have, full operational. By 2030, will reach around EUR 12.5 billion. And that's basically coming out of the commercial discussions working really holding with our clients. But you will see the small scale data centers. And as we did last time in our CMD that we mentioned that we had that in mind. We're not considering right now any of it. But let me touch what it means. We have already commercialized and built 2 small data centers in Germany. We have commercialized them. One of them has an EBITDA of EUR 25 million. Negotiations, we believe we're going to be able to commercialize them. So we'll have 6 small data centers very soon, EUR 25 million EBITDA. It's one of them EUR 150 million EBITDA. We're planning to add 30 of those by 2030. So 30 multiply by 25, it would be EUR 750 million EBITDA. What's the multiple, we don't know. So that's why we're not including it. But that's an upside that we'll have in our valuation. And let to touch on greenfield on the transport and social infrastructure. We have a current portfolio of more than EUR 63 billion under management, but we're valuing that at EUR 3 billion. And this is in line we have 32 projects, and that goes from highways to social infra, railway or next-generation mobility. That includes more than 900 electric vehicle points that includes all the projects from Sky boards that is becoming the first, a leading worldwide vertiports organization that includes a lot of the prices that were negotiated with [indiscernible] that includes pretty much everything at Iridium, HOCHTIEF, PPs and Pacific are developing. But we do have a current pipeline of around 80 projects with more than EUR 61 billion. That includes everything that is on the screen, 6 [indiscernible] projects, 17 next-generation mobility, 9 railroads, 26 social infrastructure, transmission lines, energy, everything. And we're going to be selective because we don't want to make mistakes. We're not in a hurry. Capital allocation is key. So let's talk about the intrinsic value of all of these. We believe that by 2030, if you go through a different asset classes, we're seeing [indiscernible] platform of EUR 14 billion. We're seeing Abertis at EUR 6 billion that I'm going to touch on it right now, and we're seeing the rest of the portfolio, around EUR 5 billion to EUR 6 billion. So we're expecting to get an intrinsic value, and let me talk about Abertis before of EUR 25 billion. Just in assets that you will need to add to the EUR 55 billion before. But let's talk about Abertis. Back in 2021, when we're getting together Abertis was probably one of the major concerns here from a big part of you. Very recent actions. How can you have a platform with EUR 24 billion debt that [indiscernible] in fact, you're forecasting an EBITDA of less than EUR 1 billion. What are you going to do with that platform? So this is what we've done. The curving grade was the EBITDA projected around 2018 to 2021, the blue one '24 with a lot of the organic growth and acquisitions, the yellow, the current one. What this means is that Post France, we will have an EBITDA per year of EUR 4.7 billion and growing up. What this means is our EBITDA backlog is EUR 246 billion. What this means is that the EBITDA backlog versus net debt is 9.5x. And that the average portfolio life is around 15 years. And we're working on our 2 transactions that will reinforce even more these graphs. So all of this takes me to the -- probably the summary of today's presentation, our targets. 2030, we expect to have revenues for 84 '26, CAGR of 10%. And Operational net profit, EUR 2.2 million to EUR 2.4 million. That means a CAGR 18% to 20%, 4-year cumulative net operating cash flow from EUR 9 billion to EUR 11 billion and shareholder remuneration to up to EUR 4.9 per share versus EUR 2.4 that we have currently right now. Obviously, subject to capital allocation, investment opportunities and doing the right thing for the shareholders and ACS. They are ambitious, but they are realistic. And what are we going to do with the EUR 9 billion to EUR 11 billion net operating cash flow. So EUR 4 billion, we're planning for shareholder remuneration, EUR 1 billion with [indiscernible], this is just the SR 400 because the next ones, whether [indiscernible] lanes or PPs are not falling within that period. They are typically back-ended. EUR 1 million additional investment in Abertis, EUR 1 billion for [indiscernible] M&A, EUR 2.8 billion for data center development and then that allow us to have additional EUR 500 million and more for further consideration, right? We will be having additional opportunities. And what's going to be our value creation potential. The current market value of ACS is $25 billion. The analyst consensus is right now between EUR 39 billion and EUR 42 billion. But if we take the $52 billion to $56 billion of the end-to-end intrinsic valuation, and we take the $25 billion. And again, $25 billion of the assets we have now. We're not relying on new assets. We're not relying on forecasting new opportunities. This is just having our assets mature by 2030. And we do the intrinsic value of those assets, $25 billion that are coming from the financial modeling that have gone through all the rating agencies and through all the financing, we get to the $25 billion, and that comes up to 77 billion to $81 billion. But those greenfield projects, those assets will continue growing. At that point, we will have additional assets and the maturity of our current ones and the new ones we could potentially get to a $38 billion, $40 billion intrinsic value just of our assets by 2035. Let's talk about our agenda today. This is the way we are structuring everything. I mentioned that Michael, Ben and Jan would take us through all the artificial intelligence strategy will take us through modularization, performance capability, the market, the growth, et cetera. The Sherman is going to give us a view of all our industrial strategy, touching on energy, touching on water and the rest of the business. Ivan Baldwin will take us through our nickel strategy. General, Michael Fencsel will present our Safety, Defense and Security. Graham Fraser and Michael Wright will touch on critical metals and Natural Resources. And then once we go through all the verticals and we understand the prospects, we'll start going through the main 3 platforms that we report, Turner, E&C and CIMIC. Peter Lavoren, Chief Executive Officer of Turner; and Christian Drevski will present the company. Roberto Gallardo and Jason Spears will introduce CIMIC. Santagarcia, Peter Hingot and Richard Gravinski will take us through engineering and construction. Then we'll move into the assets with Eicndearana and Howard Babil on data center platforms, Nuria Haltiwanger, Cosel Haro and Martin Duba in transport infrastructure; and our Chief Financial Officer, Emilio Grande, will take us through the financial strategy, and I will join you at the end of the day for closing remarks. So having said that, I got to the end of my presentation. I wish you a very good Capital Markets Day. We're going to have a series of Q&A at the end of the session that you can ask anything that you would like. So thank you so much for attending. It means a lot to us, your ongoing support, and I look forward to the end of the session. Thank you so much.

Good morning. Juan, thank you. I think I speak for all of us, and I may be a little bit biased, but it's a great time to be at ACS. Incredible results. And most importantly, an incredible future. I'm Michael Kuntz. I'm an Executive Vice President with Turner Construction Company, and I'm the Chairman of CorVel. With me on the stage today is Ben Kaplan, Managing Director at Turner Construction and the Head of our data center business in the Americas; and Jan Turka, Managing Director of Layton Asia. We're going to spend the next 30 minutes going through the data center, advanced technology world from a couple of different angles. We're going to talk about demand. Because simply put, it's not stopping. We feel that it's accelerating. We have high revenue certainty because of this demand and our position in it through 2030. And we're going to talk about how we need to change and evolve and are changing and evolving our offerings to the marketplace to continue to expand our revenue and on pace with the growth to expand our margins on that revenue. So what does partner of choice mean, right? I want to talk about our position in this strong, strong market. What does that mean? Well, to me, it means you're a must consider option. It means when a major hyperscaler thinks about a data center project, the first company that they think of is someone in the ACS Group. And I think there's a benefit to that, and it's a huge benefit. What it does for us is it gives us a seat at the table. And that seat at the table provides us that insight forward-looking to be able to predict our outcome here is in advance and be able to schedule our work to move our capacity around to meet demand in a different region as it changes as it does quite frequently. It allows us to sit down at a table with the major hyperscalers and talk about what their needs are for them to have a conversation with us about where they need us, most importantly, and let us adapt to that. This is a huge advantage over everyone else because, quite frankly, in the data center world today, we don't usually compete for work. It's a transparent open conversation that allows us to negotiate work based on the hyperscalers need and where we can better fit. So it's a unique position to be in. Now how did we get there? How did we get there through performance, right? It always comes back to how you perform for a client. We got there because we earned it. We earned it because we've already built about 5.5 gigawatts of capacity. On a global market of what, 100 to 120 gigawatt in the entire world, we've already built 5% of that -- excuse me, 5 gigawatts. Most importantly, underway right now, it's about another 15 gigawatt. So we've earned it through our performance, and that gives us this unique market performance. We feel very good about the backlog as Juan went through, $26 billion in backlog -- or excuse me, EUR 26 million in backlog as we stand here today. And 65% of that maybe a little bit more is with major -- the 5 major hyperscalers. So we feel very good about it, translates into revenue. In 2024, our data center revenue was EUR 4 billion. We doubled it again in '25 to EUR 8 billion, and we'll double it again this year, revenue on a yearly basis of EUR 17 million to EUR 18 billion, very strong position. It's spread across the globe. We've completed or have underway about 1,300 projects around the world. We've had a very good critical mass in the United States now for about 15 years, and we've completed 1,100 projects already and currently have 90 projects underway in the Americas. Europe has taken off. And we've taken advantage of that through increased capabilities with HOCHTIEF and Dragados on the data center front and our acquisition of Dornan 2 years ago. We've completed 50 projects, and we have 16 underway in Europe alone. And then Jans Group in Southeast Asia has completed 20 projects with 14 underway. We had our hyperscaler in a conversation with Ben a couple of weeks ago saying, "You're the only company I trust to build a data set or for me on 4 continents. It's a pretty big statement. And again, it's a great position to be in. It's global leadership in this sector. from using the sectors and the geography and looking at revenue, we see double-digit growth in each sector between now and 2030. Biggest growth will be in Europe, we feel with a CAGR of 25%, 26% to 30%, almost 20% in Asia Pacific, and of course, the steady growth that never seems to end in the Americas at 11%, I believe, CAGR '26 to '30. Each segment, each geographic segment has doubled the revenue '24 to '25 and then '25 to '26 as we forecast into the future. So every geographic area is very, very, very strong, and we're taking advantage of it.

And Mike, even as we doubled our revenue, we doubled our backlog in each of those regions as well.

That's a great point. So we have that certainty, again into the future. We feel very, very confident about it. We don't have a lot of doubt that's going to materialize. So we feel like we're locking in the growth through the end of the decade. And why is that? Why do we have such certainty. The demand side is there. We don't have a doubt about that. Again, the signals we get from the hyperscalers and the investment-grade colos that we work for, give us that strong buy signal. But we're sitting on about group-wide, about EUR 60 billion in backlog and what we call high probability work. So you've seen a backlog of EUR 26 billion. Underpinning that is about another $36 billion to $40 billion of work that we consider high probability. And our trend that will continue is that we convert about 80% of that work into secured backlog. So we look into the future, we think we're sitting on about $60 billion of real work line of sight just in the next couple of years. And '27 and '28, 90% of the revenues for '27 and '28, we feel, are pretty much secured either through already in the backlog numbers or in the high probability work that our track record suggests and our relationships suggest we will convert. So when you look at our graphic in the middle, the pie chart, 67% of our work comes from hyperscalers. In our backlog right now, 67% from the blue-chip hyperscalers. So there's a great certainty in that. Another 30% comes from investment-grade colocation companies who consequently are building for the hyperscalers. So gives us a great deal of confidence. Only about 2% of that, as we sit here today in our backlog is for our own development efforts. So it's a very, very strong position to be in. Thanks to the efforts of Ben and Jan and their respective teams around the globe. As Juan said earlier, there's 100, 120 gigawatt of capacity in the market right now online. There's projections that take it as much as 300 gigawatt at the end of the -- by the end of the decade. There's another consensus that has it somewhere in the middle of 240. As we put our projections together, we chose to take a very, very conservative path because we have the line of sight. We have the relationships with the hyperscalers and the major colocation companies that allow us that line of sight with a great degree of certainty moving forward to 2030. So where is the demand coming from? Juan touched on it. The 20% of the global data volume in the world today is in the cloud. By 2030, that more than triples to 70%. 50% of the data center demand and capacity today is for non-AI workloads. So you can stop AI today. You really can't, but you can just put it down for a minute. And the demand for computing power, the demand for supply of that computing power is still incredibly strong. The market carries itself through 2030. So again, incredibly strong market, incredibly strong blue chip owners. Everyone bets on them, we should too, an incredibly strong position for the ACS group within that marketplace. So Ben is going to talk a little bit about how we're going to change our offering to again keep pace [indiscernible] the revenue growth and also increase our margins on the same revenue at Juan and we'll help them out and talk a lot about AI as we do make that transfer from training to reference and how that will impact the market. Carlos?

It's probably helpful to take a closer look at the demand growth that Juan laid out and then Mike just explained a little bit more. Again, we see current demand at about 100 to 120 gigawatts and our conservative case of rising to 180. When you look beyond just the top line number and really how that's made up, break it down into kind of pieces and sort of the big piece is we're oversimplifying a little bit. But today, about 60% of that demand is going to the training of AI models about 40% of that is for inference and also cloud and the other use cases. What's important about that, and this is why we feel so strong about the demand signal that we get the 60% you see there today, that's the investment that our clients are making. The 40% today, which we believe become 60% or 80% is revenue. Right now, they're making the investment. As we move through the next 3 or 4 years, that will transfer to revenue generation. So what we're seeing is not only is the pie getting bigger, the portion of that pie that actually generates capital to fund and to continue the development of the infrastructure will increase.

Yes. Maybe can I just comment with a little bit of APAC perspective on this. So the figures that Mike presented before on APAC, APAC for us is Australia and Asia, excluding China, those figures really represent an inference story. So just cloud and compute. In our area, we haven't seen much contribution from AI training so far to date. But even without that training, we've been achieving similar growth rates like in the U.S., basically doubling our revenue year-on-year over the last 2 years. And more importantly, we don't see a slowdown. Our clients come to us at the moment. And asking us to secure the capacity that we have for the future works. So our revenue and our growth is not so much dictated by the demand. It's more the capacity that we can provide to our clients to deliver to the standards of the group. In addition to that, we've got opportunities emerging in Australia at the moment to develop large-scale AI infrastructure. We are in discussion with several developers over there. But consistent with the conservative approach that Mike and Juan mentioned before, we haven't included that in our forecast. So if that comes, there will be an additional upside in the APAC region. And as you can see, our clients believe that too. The forecast is that -- well, today, we'll set -- we -- our clients will invest over EUR 700 billion in this marketplace. That grows to over $1.1 trillion by 2030. And as we talk to our clients, as Mike mentioned, the signal over the last months, weeks and with some of the interesting things that have happened in the United States recently, days, that demand signal is strong and it's only increasing. Now that's the demand side. On the supply side, and as we look at our revenue projections going forward, we feel very strongly about that, too. Some of the constraints that might affect the supply and our ability to deliver are not new. We've been hearing about this for a while, working with our clients. We've been planning for that. We've been looking at the quality of the projects, are they responsible developments? Will they go forward? And we feel very strongly that the the backlog that we have for '27 and '28 in particular, are very, very strong. Some of those constraints may affect and Juan mentioned this, how those projects go forward in the future. So we believe that there could be some timing shift in how projects move forward, but that they will move forward. There may be some -- also some location shift. And that's 1 of the really, really great things to be about part of the ACS Group. The strength of our platform across the United States, if a project is going to move, maybe if the timing is off in 1 location, but that that capacity is needed, we can move with our clients to a new location. If that capacity were to shift from the U.S. to Europe, or from Europe to Asia, the ACS group can move with our clients. And as Mike said, it's pretty powerful when we have clients, and there are multiple clients that we are currently working with on multiple continents. The fact that we can add value to them by giving them a predictable product, a predictable process for delivering to their demand is critically important. And that really drives to what -- how do we create value for our clients. First of all, what they see as value is our ability to deliver at speed. In today's world, you have from when the business signals go for a project you have to deliver in capacity in 12 to 24 months. The next part of that is you have to be predictable. There has to be delivery certainty. That certainty is in schedule. A lot happens after we get finished to spin up a data center. -- our clients need to be able to be prepared with the resources that they have to deploy. The product we deliver has to be operationally excellent and repeatable to get the same result every time no matter where in the world they work with the ACS Group. The other thing that's happening, and as you look at the scale of their investment, our clients are finding it more and more difficult to keep up with supporting their own demand. That's a fantastic opportunity for us to bring our end-to-end solutions to the table. We can take on more and more of the load that they need to deliver. We can provide value in that process, and we can capture that value in the form of margin for our shareholders. So what's our strategy? There's really 4 key elements to it. First, we're going to leverage the pole position that we have in the U.S. in this market across the entire ACS platform. in the entire world. And that's what's starting to happen more and more. As our clients look globally, we go with them. Second thing is we really have to maintain and enhance the partnership that we have with the hyperscalers and the other key players in the market. Mike said it really well. We have a tremendous relationship. We have transparency. We know not just what they're working on today. We know what their plans are for tomorrow. They bring us into the tent with them to help plan and orchestrate what goes next. We really have -- our strategy is really hinges on our ability to maintain and grow and enhance those relationships. The next thing we're going to talk about, and you're going to hear about this as my colleagues -- as our colleagues get up here and talk about all of the market verticals that we're in is the deployment of end-to-end services. How do we do more for our clients, create value for our clients and then participate in that value. A key part of that in the fourth element of the strategy is to scale our module delivery. In order to deliver with speed in order to deliver with consistency. And then to go at the scale and the locations that our clients need us to be, we need to provide more and more of a module delivery approach because that's what allows us to deliver. I want to go a little bit deeper into this. When we talk about end-to-end, what do we mean? The first is really turnkey development, you'll hear more of that from our colleagues at ACS digital and energy and Corvil. They'll talk through that end-to-end turnkey development. But as you break down deeper into it, is the site selection. We get there with our clients when they're trying to decide where to go. And then once they select the site, using our civil resources. And as Juan mentioned, with [indiscernible] in the U.S., for instance, being the largest civil contractor in the U.S., we can actually do that site development for them. The next area is design. Design is critical for us, mostly because we -- in order to bring the value of that end-to-end solution and bring all of the resources of the ACS Group to the table for the benefit of our clients, we can design into the supply chain and the delivery processes that we're going to utilize to be successful. That's a critical aspect, and that's really what makes this an end-to-end solution. Within that is the supply chain. And you'll hear more about this as we talk about Source Blue and our ability to procure billions of dollars across the world and create value for our clients there. The next is the modular delivery. Our designs and our end-to-end approach is based on the modular delivery process that we intend to implement. We're not reverse engineering into prefabrication. We are designing into our modular delivery process. From there, we'll do field execution, which is kind of the bread and butter of the ACS Group in terms of deployment and of the projects, we'll commission them. And then we can be there for the operation of the project. So we're literally there from when -- it's a piece of dirt through the entire life cycle of that asset. Again, one of the unique things about the ACS Group is our ability to repeat this globally. And with the resources and facilities we have across the world, we can deploy that design, we can deploy that modular delivery model. The other thing that makes this really powerful and why it's important that you'll hear about end-to-end across the conversations today is that unique to us, I believe, is the fact that we're not stuck in just 1 key market. It's not just about data centers, although data centers are critically important to us. It's about leveraging this end-to-end approach and this modular delivery model in pharma, in semiconductor, in industrial advanced manufacturing, in aviation, you're going to see some really exciting stuff when Peter and Christ get up here and talk about what we're doing in aviation, in energy, in health care and in security and defense. We can leverage and amortize this approach across all of those sets and all of those verticals.

Okay. Let me build on what Ben just explained to tell you why the end-to-end delivery model is important for us. It is our aim to get involved as early as possible, particularly in the design to be able to create value both for our customers and for the group itself. The earlier we get involved, the more we can bring together an integrated solution with the capabilities and services of the group. That allows us to engage much broader than just being a contract manager or construction manager. -- and it allows us to go deep into the value chain of our projects, all the way from site selection down to commissioning and operations. That's where we create value for our clients and the group -- just to give you some examples, SourceBlue was mentioned. So we bring SourceBlue in with the expertise in sourcing critical equipment and supply chain management. So by controlling this critical equipment delivery, we are derisking the project for us and for the clients. Field execution, we mentioned before, we can bring resources from the group in as they add value. We can decide to self-perform, for instance, in Americas, the structural or civil works through [indiscernible] we got Danon in Europe or UGL in Australia, we're able to perform the mechanical and electrical works. So for our clients, we are able to provide an integrated solution, which takes away a lot of interfaces and gives delivery certainty. But the value for the group is much more important. This strategy in operation allows us not only to increase the margin by doing more work in data centers. The value is in getting more participation in the value chain, creating synergies and earning the repeat customers. So one important piece I haven't mentioned yet, early involvement allows us to design for modular fabrication. Modular fabrication is not just a single product. It's basically a delivery strategy. We do it not for the sake of modernization, we do it where it is effective and where it adds value to the process. So this is why we have different solutions in different stages. We can provide just simple kits and components, which we have factories to manufacture ourselves. It goes on into prefabricated assemblies, which apply to all of our projects. But then going on, we can provide integrated subsystems and all the way up to allometric modules depending on the stage when we get involved. We can take this one step further and provide a fully modelized data center. That's something that Ben will present in a minute. So the benefits are very straightforward. As I mentioned before, for the client, it's a fully integrated solution, less interfaces and delivery certainty. By bringing the construction into our workshops, we take away the risk and uncertainties of delivery on site, and we are able to take activities of the critical path to deliver faster. Standardization and reputation allow us to increase productivity. So basically, instead of building prototypes with ever-changing teams on site, we enter into industrial style fabrication in our facilities. That allows us to enhance the delivery, increase our margin and reduce the risk. We reduced the labor on site. We improved safety and we take away the peaks of resources and delivery. This is particularly important in markets where there's pressure on critical resources or when we have to deliver to high speeds. So let me take this to -- back to Asia. And this is just a proof what I'm talking about here is not just an ambition for the future. We already live this and remodel. In Asia, we have varying markets in terms of workforce skills and maturity of our supply chain. So to be able to deliver to the standards -- the global standards of the ACS Group that our customers need, we are working with dedicated prefabrication facilities, 2 of which you see here, we have spread across the region. These facilities are not only used to to fabricate the modules that we described earlier. We also used them to train our workforce and we use them to upscale our supply chain. By doing this, we create the capacity that, as I mentioned earlier, creates the ability to grow control in the market. The other elements that complement the modernization is digital construction. We have competence centers across the region where we built in 3D, all our sites before anyone is allowed to go inside. And then a pool of commissioning managers across the region, ensure the global standard of the group is applied everywhere. So simple summary is we built the capacity of the critical path ahead of the workload to then scale with our customers when they come to the region. And in closing, I hand over to Mike to show you how we can take it to the extreme.

Well, before Mike comes up just to show you what this kind of scalability and investment looks like. What you're seeing here is we developed the proprietary megawatt data center deployment. The 20-megawatt data halls can be configured at any scale. We're currently working on deployments that could be as much as 200 megawatts per each. What you see here is the actual modular data center being put together. So this is you'll see -- as John said, we have the digital models. We start with the digital models. We move into true manufacturing, creating these modules and can deploy at scale. We're pretty excited about how this is coming together.

That's wonderful. It's being built in a facility in Virginia in the United States. As we speak, we had people down there this week and I kept getting pictures. They were so proud that we've gotten to this point to build the full volumetric units. So in closing, number one, I appreciate your time. Thank you for your attention, and thank you for having faith in the ACS Group. I think you'll be well rewarded and we're glad you're here. We are the partner of choice in the data center and advanced technology market on a global basis. We are the trusted partner, and it starts and with trust. We have high certainty into our backlog and into our revenue numbers through through 2030, a great deal of confidence, and we will always continue to evolve our model, our offerings to the marketplace to not just keep pace, but to exceed the market, to accelerate the innovation and the development that's needed in this industry and all advanced technology industries. So thank you very much. Appreciate it.