TXT e-solutions S.p.A. (TXT) Earnings Call Transcript

Good morning, everyone, and welcome to the conference call, during which Daniele Misani, Group CEO, will present and comment the results of the first 6 months of 2026, together with an highlights on the main events and the business outlook. We will then have a deep dive into the financials. So -- and of course, every time there is a Q&A section at the end of the meeting. So any questions you might have, please drop the question into the dedicated section of the meeting. We want to wait just a few seconds, and then we will start with the presentation. And thank you, Daniele.

Thank you, Andrea, for the introduction. Thank you, everybody. Welcome here for this, let's say, presentation of H1 results of the TXT Group. So it's a [indiscernible] -- it's the last one of the period, but it's very positive for everyone listening. So we just published and approved -- the approved results that this morning we approved during the Board of Directors. And the first semester of 2026 is another record, let's say, results for the TXT Group. Total revenues, EUR 228 million with a growth of 21% with the same perimeter -- with the same, let's say, period of the last year. The important thing to highlight is that the contribution of the acquisition is still not visible in the 6 months results and will have a stronger impact on the full year results, of course. But in the first half of the year, we did a plus 1-9, 19%, almost 20% of organic growth like-for-like, that is an additional EUR 35 million to the total perimeter that was present also last year. And this is a very strong point of our strategy because we implemented a strong execution of the strategy itself. So putting together different offering, different assets in front of the market, leverage on synergies, commercial one, delivery one in order to deliver a bigger value for customers and, of course, to all the stakeholders, including the investors that believe in our equity story. Strong organic growth. And the other important KPI to highlight is that the EBITDA is growing faster than the top line. So with 21% of the overall turnover growth, we registered a plus 24% of EBITDA growth. So we closed the first semester with EUR 34 million of EBITDA with a percentage of 15% of the revenue. So plus 24% with respect to the same perimeter of the last year. In terms of contribution, we are registering a good improvement in all the division of the group. So the total 21% comes 20% from the Software Engineering division that goes from EUR 114 million to EUR 127 million. We have a strong growth in the Digital Advisory, driven mainly by the Public Sector industry from EUR 31 million to EUR 40 million. And have a plus 14% in our Smart Solution perimeter, EUR 44 million to EUR 50 million. There is, let's say, the contribution of the new acquisition that is because it was, let's say, mostly in the second quarter contribution. So the consolidated values are still low in terms of total consolidated results. So mainly of this, let's say, growth is organic, driven by the value of the offering that we have in portfolio and the capability to leverage on synergies among the [indiscernible] that we have in the group. EBITDA is growing 24% from EUR 27.5 million to EUR 34.2. There is a stronger growth of the strategic division of the group itself. So Digital Advisory and Smart Solutions are contributing faster to the overall increase of the EBITDA. In particular, we registered a recorded a very strong growth in terms of EBITDA of our Smart Solutions portfolio, going through EUR 8.1 million towards EUR 12.6 million in EBITDA with a growth of plus 55%, so very strong. This is driven by the fact that this division is growing in terms of subscription and software licenses that we sell to customers. And so some of the more mature smart solutions that we have in portfolio are giving very good margins as the growth is mainly margins, not only turnover because the products are mature, the investment is already stable, and so new business means new margins coming. So it's fully with our strategy to have this kind of offering stronger and with a good position to the market and also with the aim to open up for synergies with the other division in order to continue to grow in the overall top line of the group. Investments, we continue to invest. So as I said before, some of the products are more mature and requires less investment. But overall, we are still investing in new product lines and also internal like with [indiscernible] that is the new startup for artificial intelligence for monitoring complex infrastructure and critical infrastructure. So we continue to invest. The first semester is EUR 13 million, plus 6% with the same period of the last year, that are giving this contribution of growth in terms of licenses and Smart Solution positioning. The total contribution of Smart Solution is EUR 50 million, in growth of 14% with the respect of the last year. International revenues are EUR 34 million. So we continue to grow by keeping also the same percentage with respect to the overall group that is 15% of the total. And let's say, the focus on sustainable debt is still confirmed. We recorded EUR 114 million as net debt adjusted and the adjustment is referred to our financial investments still in the bank that is still to be dismissed -- is under dismissal, but not yet dismissed. And the other point is that we continue with our buyback program. We have now, let's say, treasury shares that at the end of the semester was evaluated more or less EUR 14 million. Of course, last month, July recorded a very strong growth of our stock price. So as far as today, also this value has increased by -- due to the fact that also the stock price is rising in the last period, and we are happy of this, of course. Looking to the industry, so the different segments in which we are present. We are going better also than the forecasting that we put into the guidance, the overall guidance. The total growth of 21% as a whole is driven and pushed especially by the strategic areas for which we have half of the business more or less. So I'm speaking about public sector and aerospace and defense that are a strategic domain for which TXT is very well positioned. We are a very good, let's say, delivering good value to customers, and we are continuing to growing with new initiatives. This business is also the business that has longer visibility. So it's sort of the risk to the overall results of the group because we still have a very strong backlog and very good visibility for the rest of the year, but of course, also for the next 1, 2 years because in this kind of segments, the projects are long term, and we are engaged in most of the critical investments that Italy is doing as government investment for IT and in the defense, let's say, arena, in which we are contributing on the main programs that are now ramping up phase. So there will be possibility to continue with this strong rates also on a short, of course, but also on the midterm. Also, the other verticals are growing, growing in a good way. Particularly, let's say, important is the performance of the tech that is including also the gaming part. In particular, we are growing also better than the expectation in this area because the positioning of, let's say, one of our companies with an important customer in the gaming industry that required a new investment, and we follow these investments. And so we recorded a plus 18% for the Tech & Gaming division. Industrial is growing 19%. Here, we have also the contribution of the acquisition of [indiscernible] that we did in the first half of the year. But there is a very strong growth because we are, let's say, including the new business related to critical infrastructure monitoring by using AI that is, let's say, reported within this vertical. So because it's related to the offer that we have for the industrial IoT so we are growing this for these 2 main reasons. Fintech is growing, so a little bit less than the others, but almost in average with the expectation we had also because the initiative related to digital payments are shifting a little bit, and we will get a better contribution, and we are planning and forecasting to have a better contribution of growth in the second half of the year. Market is also growing. Also here, we have a contribution coming from the acquisition of NetMediaClick, even if, let's say, consolidated just for 1 month. The strong point is that the overall offering in this domain is also positioning very well within the market itself. And so we recorded a plus 18% with respect to the same period of the last year. We confirm the guidance. So we have an outlook given the industrial plan to have a growth organically of 15%. Of course, the first semester is stronger. We plan maybe to have a little bit relax in the second half of the year, specifically for the public sector that started a lot of projects in the first half of the year. Even if the guidance of plus 15% is more than reachable, so it will be, let's say, we will do better, of course, than the guidance that we have, but still we confirm the guidance. The important thing is that we acquired, let's say, and I explain a little bit later, a new company that now is integrated and rebranded in TXT digital engine that will have a contribution -- a strong contribution in the second half of the year in terms of turnover. So our outlook for the pro forma revenues of 2026 is more than EUR 0.5 billion. So it's, let's say, a very strong driver for growth and strong results that we can have as a pro forma for the 2026. Of course, also the consolidated one, we confirm our guidance that will be better than EUR 470 million, and we overshoot also these results. So we will be near to EUR 0.5 billion also for a pro forma basis, also for a consolidated reported basis, not only as a pro forma. We confirm also our, let's say, vision of keeping sustainable growth. So the growth will have no impact on the overall EBITDA margin that is forecasted around 15%, so means more than EUR 70 million for 2026. Some, let's say, updates about what happened in the last year from the last call that we had a few months ago. In particular, the acquisition of and the investment in a company that we acquired 1 month ago, more or less, so beginning of July. We will be -- which will be consolidated starting from the 1st of July, so means in the full half -- second half of the year. This investment was made because it was strategic. So we already invested in this kind of offering that is very focused on cybersecurity, networking and data centers. So we started this, let's say, initiative internally in a company already present in the group. But we were looking for a new company to add in our ecosystem in order to accelerate the growth because we are already positioned ourselves, but in order to scale up rapidly, we strategically decided to look for a target, invest in the target, merge the business that we already started in TXT. And then focus on this domain. And so we [indiscernible] target. We acquired the target itself and renamed the target in TXT Digital Age that will be the new company of the group that will deliver value for networking, data center and cybersecur. The company we acquired brings also contracts business for the verticals in which we are already, so tech and banking and finance, but open up also opportunity for energy utilities that is a domain for which we are -- in the past, we were very, let's say, narrow in terms of offering and presence. So we think that this investment is a boost in order to contribute to continue to grow and generate also opportunity for upselling and cross-selling other solutions towards markets in which we were present, but not so strongly. Digital Age generated in 2025, more or less EUR 50 million. We think -- and we are working in order to implement commercial synergies and operational efficiencies, and we plan to consolidate for the second half of the year at least EUR 30 million in revenues and EUR 3 million of EBITDA. So it's a strong contribution to overall results of the group itself. We plan, let's say, the business plan we are working on is a plan, let's say, supported by the backlog that is already in the company and was previously in TXT to have this, let's say, overall offering cover EUR 80 million of revenues and EUR 8 million of EBITDA in 2027. The enterprise value for the investment was about EUR 7 million in -- EUR 5.9 million in equity and EUR 1 million of assumed net financial position, means that also the company is a value for money because the company entered and needed some restructuring. We already did it. And so we will integrate a fully, let's say, clean company that will improve margins and will deliver value for the group and for all the stakeholders. I want also to inform you so too many positive, let's say, information and news. We had some also drawbacks. In particular, we announced last week or 10 days ago, so very recently, an impact related to our net financial position due to the tax position of a subsidiary. In particular, we delivered and we as a Board decided to approve, let's say, a settlement of tax position, tax audit that we received from the tax regulatory, let's say, Italian regulation tax office about subsidiary. This, let's say, audit was related to an initiative of the subsidiary very focused on a period of time already passed and closed. So we started in end of 2021 an initiative of business growth in terms of also international business of the subsidiary itself, initiative that started in 2021 and ended in 2024. They total tax, let's say, regulation -- the tax office claim, let's say, some let's, say, not regular, let's say, movement specifically due to some patterns that we had in this initiative itself. So we were involved, but our subsidiary is fully out of this kind of, let's say, irregular behavior of our partners itself. But of course, in this moment, we have to decide and do a risk assessment to settle or to open up to possible measure risk with new, let's say, investigation and other things since the initiative was completely closed and past finished. And the fact that we have a strong cash generation and strong results for this year, as a Board, we decided in order to be more, let's say, prudent and also because this is a nonrecurring item, to close this kind of situation and find an agreement with the tax agency and close it by paying a part that we already paid a few days ago. So -- and we will finish to pay by the end of the year. So this is a nonrecurring impact that will be recorded, of course, in our profit and loss. It will be in the non-adjusted, let's say, net profit essentially, and it will have an impact on the net financial position, but it has no impact on our, let's say, guidance and our forecast for the rest of the year. This is because we are growing faster than we, let's say, also forecasted and budgeted. And this means that there is a good cash generation of the group itself. So we confirm our guidance to have 15% of EBITDA, 15% of growth and net debt EBITDA below 2x. So we still confirm our guidance. I would like also to outline that in terms of growth besides the fact that the stock price are increasing, it means that also the financial community is appreciating the work we are doing in these years, we also had a recognize from an international, let's say, very important, let's say, newspaper. So Times did a research about the leaders of 2026 and TXT was ranked as first in Italy, fourth in Europe and 14 globally for the digital segment. So for us is a very, let's say, make us proud because also an independent review put us in a particular very strong and difficult, let's say, overall group of companies that -- because there was more than 500,000 listed company that was, let's say, taking consideration for this survey and to be first in Italy and fourth in Europe for us is very -- is important, let's say, make us very proud of what we are doing as a job. In terms of business, so we are improving and we are getting a lot of new business, specifically also in the Public Sector. So we won -- we were -- let's say, we won the first, let's say, [indiscernible] for Public Sector that still are not communicated to the market because we need to be finalized and approved, but we already are, let's say, knowledgeable of the fact that we are in a very good position for the new wave of tenders that the Public Sector put in the second quarter of the year. So in the third quarter, we will communicate volumes and projects in which we are involved once approved. So we have a strong longer visibility for the public sector. I want to highlight also some initiatives and some results that we achieved in the last quarter about the defense. And in particular, we communicated also this good relationship and partnership we signed with MBDA that is, let's say, a French, Italian player, very strong in defense domain. MBDA is growing up on Turin. Our presence in Turin and Piedmont in general is very strong. So we have a long history. And the Piedmont region is, let's say, shifting from the automotive industry towards defense, and we are one of the players that is supporting the region in order to grow because our presence, strong presence in terms of people and knowledge in the area and our relationship with the Polytechnic of Turin, so with the academic community and with the business community itself. So we signed an agreement to support MBDA in scaling up the Turin site. We are -- it's a long-term partnership agreement that will cover multiyear, up to 5 years of growth together. And our focus is on digital innovation, so embedded software of critical systems, system engineering, advanced simulation. These are the topic in our offering that is available also for the customer in order to grow. And we -- this is a strong point to strengthen our position in the defense area, and it will contribute with revenue starting from Q3. So we ramp up a team, and we started to deliver just now. So in September will be, let's say, the first month with relevant volumes. We are planning to, let's say, consolidate already EUR 1 million coming from this initiative by the end of the year, but it's just the starting point of a ramp-up that will give a very good contribution for 2027 and more. This is just an example, but the overall results are very strong because we have many activities, some of them we can communicate, other are more, let's say, covered by industrial secrets and so on. So -- but the important thing is to say that we are very well positioned, and we want to continue to capture -- and capture opportunity comes from this strong position in order to continue to grow possibly at the same pace that we are already doing. And we expect and we have a very strong outlook for the 2026 full year and a very good backlog also for continuity in the mid and long term. Thank you very much. I want to ask Andrea to follow up and highlight the financial results of the 6 months. Thank you.

Thank you, Daniele. And yes, we can start with the profit and loss of the first 6 months of 2026. So here, we look top line to EBITDA. And as discussed by Daniele, we have a very positive here in terms of top line with a 20.6% growth compared to the 6 months of 2025 with an 18.8% of organic growth. So very strong performance. In terms of gross margin, the growth is slightly, let's say, reduced by the fact that in all the more, let's say, stronger in software engineering and digital advisory when the gross margin is lower, let's say, by the nature of the business. But also into the Smart Solutions business, there are strong, let's say, investment in going into operation of major contracts, especially in the aerospace domain, for which, let's say, technical R&D resources are working into [indiscernible] customer projects for the same [indiscernible] description that we [indiscernible] operation between second half of the year and beginning of the next year. So overall, the gross margin, let's say, reduced from 38.2% in 2025 first half to the 36.6% in the first half of the current year 2026. In terms of indirect cost, also here in terms of research and development, the growth of 6.2%, it's, of course, lower than the growth of the top line. And as explained by Daniele, this is also by the fact that some of our Smart Solutions platforms are reached maturity, which does require investment in terms of new research and development activities, but also by the fact that more than EUR 1 million of resources normally, let's say, involved into R&D activities have been shift for the time being into, let's say, more direct activities for those, let's say, entering into service operation that I mentioned before. In terms of commercial cost, also here, let's say, start to be material and significant effect of the operational efficiency and the synergies between the different cluster and verticals of the entities. In fact, we recorded approximately 15% growth compared to the more than 20% growth in the top line. And also in terms of general and administrative cost, there is a strong, let's say, efficiency gain at the group level. And this is, let's say, bringing the incidence of general and administrative costs down from 7.3% in the first 6 months of 2025 to the 6.5% of the first half of the current year. So as discussed by Daniele, we have a 40 basis points, let's say, improvement in our EBITDA, which grew from 14.6% to 15% of revenues in 2026, reaching more than EUR 34 million. If we move to the next slide, we have a bridge from EBITDA to the net profit, both adjusted and reported. And here, we start from 15% of the EBITDA margin. And here, we have, let's say, a reduction from the EUR 34 million of EBITDA to the EUR 28 million of EBIT adjusted, which is driven by depreciation related to IFRS 16, so office and car lease, which accounted for EUR 4 million in the period. Then we have about EUR 1.7 million of depreciation of other fixed assets, tangible fixed assets. And then we have a receivable amount of about EUR 0.7 million of depreciation, amortization of intangible assets and write-off of commercial items. In particular, the depreciation of intangible assets is EUR 0.5 million, and we have about EUR 0.2 million of, let's say, commercial write-offs, mainly account receivables. These changes bring the adjusted EBIT to a level of 12.2% with a growth of 23.5% compared to the 6 months of the previous year. Looking at the net financial result of the period, in terms of net financial charges, the net amount is EUR 4.3 million and included approximately EUR 4.8 million of interest expenses and bank charges with a net growth of approximately 36% compared to the previous year, mainly due to the different, let's say, structure of the debt of the company and the volume of debt of the company compared to the previous year. And then there are EUR 0.4 million overall -- EUR 0.5 million overall of financial income, of which EUR 0.15 million are related to the fair value of financial instruments and EUR 0.4 million related to the fair value of earnouts. Then we have the share profit of associate companies, negative impact of EUR 0.15 million and the FX gain has a no material impact of positive EUR 0.1 million. That brings together with income tax of the period of EUR 5.5 million and net profit adjusted of EUR 17.9 million equal to 7.8% of revenues with, let's say, a growth of 22.8% compared to the previous year. In terms of adjust, we have PPA, the amortization of intangible, mainly intellectual properties and customer relationship, which accounted for EUR 6.2 million, of which EUR 1.1 million related to the compensation fof PPA related to the previous year 2025 in particular related to the acquisition of IT Values. So let's say, we can exclude this EUR 1.1 million and we have, let's say, recurrent PPA for about EUR 5 million in the first 6 months of the year. And then we have a one-off item related to the tax item discussed -- commented before by Daniele, a total of EUR 12.7 million, of which EUR 1.5 million is related to the write-off of tax receivable and the remaining EUR 11.2 million are related to an accrual for provision for future charges. So with all, let's say, this one-off effect of the PPA, the net profit reported of the period showed negative balance of EUR 1 million compared to EUR 11 million of the previous year. Looking at the financial position of the company. So as of June 2026, the reported financial net debt is equal to EUR 123 million, excluding the cash out expected in connection with the one-off tax item commented before. And if we look at the main items of the financial debt in terms of financial assets, we have about EUR 103 million of cash and cash equivalents. We have about EUR 17 million of trading security at fair value with a net increase of EUR 5 million compared to the year-end 2025 as we have some cash that will be, let's say, allocated mostly to M&A, which has been, let's say, invested into some funds with no, let's say, constraints in terms of divestment. So we will divest without penalties and without, let's say, any risk, to [indiscernible] the debt of the period. And then we have in terms of other financial assets, financial receivables for about EUR 300,000. In terms of liabilities, the overall balance of bank loans is about EUR 202 million with a net increase of about EUR 5 million compared to the year-end 2025. Then we have liabilities related to IFRS 16, meaning leasing liabilities for about EUR 17.5 million with a net decrease of EUR 0.5 million compared to the previous year. We have a very significant increase in terms of earnout liabilities, which grew from EUR 10.5 million as of year-end 2025 to about EUR 20 million as of end of June 2026 with a net increase of about EUR 9.5 million. Then we have, let's say, payables for acquisition of which part are related to [indiscernible] to be transferred for an overall amount of EUR 1.7 million. And then we have some other payables for about EUR 1.4 million. In terms of adjustment, as discussed before by Daniele, we have the residual stake owned by in Banca del Fucino for EUR 9.5 million down compared to the EUR 17.4 million of year-end 2025 following the divestment of part of the stake, and another EUR 1.1 million, which is related to the nonmonetary debt for, let's say, basically a consideration to be paid in the treasury shares already owned by the company so that we will not have an impact into our, let's say, cash position. In terms of overall change of adjusted net financial debt, there is a net increase of EUR 13.8 million, which is mainly driven by the effect of the M&A for a total of about EUR 26 million, of which EUR 9.9 million are related to earnouts. And then there is, let's say, EUR 2.4 million of capital increase in minority-owned companies, [indiscernible] treasury shares EUR 35 million, dividend payment of EUR 4 million in the second quarter of the year and the effect of the financial charges net of the financial income for EUR 4.1 million. So the overall, let's say, disbursement just listed more than compensate the very positive cash generation coming from operation during the first 6 months of 2026. If we look at the balance sheet with a comparison between end of June 2026 and year-end 2025, in terms of fixed assets, as of June 2026, the total fixed assets amounted to approximately EUR 265 million, representing an increase of EUR 11 million compared to year-end 2025. Intangible fixed assets amounted to about EUR 200 million with a net increase of EUR 18 million compared to 2025. Within this category, goodwill accounted for EUR 141 million at June 2026 with a net increase of about EUR 11 million compared to the previous year following the acquisition of the [indiscernible]. The remaining items consist mainly of customer relations and intellectual properties assets allocated goodwill for a total net book value of EUR 54 million, of which EUR 6.5 million of IP and EUR 7.3 million of customer relations were allocated goodwill during the first 6 months of 2026. In terms of tangible fixed assets of June 2026, amounted about EUR 35 million, in line with year-end 2025, and the balance mainly consist of office and car lease recognized under IFRS 16 for a total of EUR 18 million, 1 building with a net book value of about EUR 4 million, plant and machines with a net book value of EUR [ 50 ] million and another electronic equipment for a total of EUR 3 million. The other fixed assets as of June 2026 amounted to about EUR 22 million with a net decrease of about EUR 6 million compared to the previous year. And this balance included the investment in Banca del Fucino [indiscernible] value of EUR 9.9 million with a decrease of EUR 7.5 million following the divestment of the deposition of [indiscernible] occurred in May 2026. Then remaining amount consist of investment in unconsolidated subsidiaries for EUR 8 million with an increase of EUR 1.5 million compared to the year-end 2025 and other minor amounts linked to security deposits on buildings rented out and defer tax assets. Looking at the net working capital of the company, the overall is about a decrease of EUR 1 million. And in terms of trade receivable with customers, it increased at a lower rate compared to top line with improved DSO and the effect of some invoice discounting while work in progress related to fixed price project with customers increased by about EUR 9 million in the first 6 months of the year. [indiscernible] suppliers increased at the rate which is in line with the growth of the business, increased by about EUR 9 million. In terms of other short-term receivable, the increase of EUR 1 million in the first semester is mainly for the increase in deferred expenses account. While in terms of tax payable, it recorded an increase of about EUR 4 million in the first 6 months of the year following the recognition of income tax of the period, which more than offset reduction of deferred tax liabilities account. Other payable increased by EUR 4.4 million compared to year-end 2025, mainly for the increase of deferred income related to subscription invoiced during first quarter of the year and for the increase of payables with employees for accrued holidays salaries, bonuses and other components. Look at the severance and other noncurrent liabilities is recorded EUR 12.7 million of provision for let's say -- sorry, EUR 11.2 million, let's say, provision for charges related to the one-off tax items, which drive the increase of the overall balance from EUR 9.6 million to EUR 20.8 million. And in terms of shareholder equity, the reduction is mainly related to the effect of the repurchase of treasury shares for the dividend of EUR 4.4 million and, let's say, the negative reported net results of about EUR 1 million following the accrual for the one-off tax. Moving to the next slide. We have, let's say, display in this slide the shareholder structure as of end of June 2026, which is basically in line with the previous call and with the year-end with LASOLIN being the financial vehicle of Chairman owning 30% of managers who are, of course, top management, including CEO, but also all the seller part of the M&A plan that was, let's say, undertaken over the last 6 years for which TXT paid part of the consideration in treasury shares. So the selling manager became, let's say, shareholder of the group, and they are currently owning overall a 24% stake in TXT. Then there is LBO Global Asset Management owning approximately 3% of [indiscernible] treasury share for about 3% and the market with 40%. In terms of performance of the TXT stock during the first semester 2026, TXT share price reached a high of EUR 38 as of June 8, 2026, and the low of EUR 23.85 on February 16, 2026. At the end of June 2026, the share price was EUR 37.25 per share. [indiscernible] june 2026, [indiscernible] share are approximately 415,000 shares representing 32% of issued share capital. This is compared to the 334,000 shares at end of the year 2025. So there is an increase which is the net between the executive buyback plan and the share transfer in the context of M&A. In particular during the first half of 2025, [indiscernible] 120,000 shares at an average price of EUR 28.70 per share for a total investment of approximately EUR 3.5 million. And in terms of transfer of shares, in May 2026, about 39,000 shares were transferred at an average price of EUR 27.91 per share as consideration for an M&A transaction. Following the end of the reporting period in July 2026, an additional 35,000 shares were transferred at the price of EUR 31.91 per share in connection with an acquisition completed during the second quarter of 2026. So we are done with the financial section of this presentation. It's now time to go through the questions that we collected during this presentation. Thank you for your attention. I will maybe go to, Daniel, who maybe start with...

Thank you, Andrea. You can go through the Q&A. So everyone that wants to make any questions, they can write on the chat and we can answer. So we already received some questions. Andrea, if you can go through them publish and...

Maybe already published because I see that the interface of...

The technology.

So this is different, but I will read them loudly just in case they are not publicly available. The first is from from Tommaso Nieddu from Kepler. And the question is, I'm going to read it. On Digital Edge, the enterprise value paid was only EUR 6.9 million, for a business with EUR 47 million of 2025 revenues, implying circa 0.5x enterprise value on sales. Can you clarify this year's 2025 EBITDA and net profits since the enterprise value looks very low relative to revenues? We want to understand whether this reflects thin historic margins, one-off items or in general, what's the reason?

So the main reason that we are a good negotiator in terms of -- besides the jokes, let's say, the acquisition was made also because our strategic reason to scale up a business that we already started stand-alone within other company of the group. And for this reason, we chose a company that can be totally managed by us differently from the past acquisition for which we aggregate also the management and, let's say, the structure in order to build on them. Because we already invested in the first -- in the second half of the last year, in the first half of this year in a structure, in management, in sales team within TXT, we look for a company that can be restructured and make grow and was an accelerator for us. So we looked for -- and we searched for contracts for delivery capability. And we find in GC a perfect target also because they had some issues and they lost their -- one of their shareholders and, let's say, Managing Director in the last part of the last year. So they were in a position to sell the company itself. The company in terms of volumes made big volumes, but was positioned in the market as a small fish, let's say. Our strategy and our business plan is built in order to also level up the business type of the company itself. So historically, the company was a small fish in the value chain of big projects, in which also the reselling part of third-party software or hardware was prevalent as a historical business. For us, it's not interesting to be positioned like that, but to have more broader projects, including also high-value services within, and we are planning and our budget for the second half of the year for the future is to have a company with a high level of value proposition of what we acquired. The historical margins of the acquired company were lower than the 10% we are declaring for the second half of the year. So we are speaking about 5% more or less. So this is also taking into the account of the acquisition itself on the price we paid, also adding to the fact that the company was, let's say, in a very, let's say, strong position to sell. So for us was a very good opportunity. And for us, it is a very good opportunity and for money to restructure and build up a new company with, let's say, a stronger value also in terms of projects and in terms of margin itself. So the low price with respect to turnover is a mix of historical performances that will not be delivered in the new ecosystem we are building. And for the fact that they needed some restructuring and they lost also some managers that was very important. And so this is reflected into the price we paid.

Thank you, Daniele. I hope it was clear enough, Tommaso. And then we have the next question from Andrea Randone from Intermonte. Actually, there are 2 questions. I will start with the first one. Are you planning an update with investors of your business plan?

Yes. So also as discussed in the past with the financial community, today, this morning, during the Board of Directors, we, let's say, decided to plan it before the end of the year. So it will be around November, so in the November month, in which we will have already the reported 9-month results and strong visibility on the full year results. Of course, we will present an update of the current, let's say, guidance for the 2026, 2027. Of course, the Digital Age, let's say, new initiative brings new values to the overall performance of the group and will be reflected in this update. And of course, we will give also a broader vision on midterm. So we will include also in this update of the plan, the visibility of 2028, so with respect to the current plan that is 2025 to 2027. So mid of November, and it will be formalized with a communication just after summer because also today is one of the last day and the team will be back end of August, and we will send the invitation and the information about the location and correct date by the end of the month.

Thank you, Daniele. I will go to the second question from Andrea. If my calculations are correct, the very good profitability recorded in the second quarter of 2026 comes after a particularly strong margin in Smart Solutions, circa 31%, coupled with a quite weak Software Engineering, about 10%. Can you provide a comment on these trends and update us with the full year outlook?