Earnings call transcript: Credito Emiliano sees stock rise post Q2 2025 results

Credito Emiliano’s stock experienced a notable rise of 4.74% following its Q2 2025 earnings call, reflecting investor optimism despite mixed financial results. The company reported a slight drop in year-over-year revenue and a significant decrease in net profit, but its strategic initiatives and robust cash position seem to have bolstered market confidence. According to InvestingPro data, the stock is trading near its 52-week high of 178.20 USD, with an impressive year-to-date return of 12.76%. The company maintains a GREAT financial health score of 3.62, suggesting strong fundamental stability despite current headwinds.

Key Takeaways

• Revenue decreased by 1.9% year-over-year, but non-GAAP revenue showed a slight increase.
• Net profit fell by 24.2%, yet the company maintained a strong net cash position.
• Stock rose 4.74% post-earnings, indicating positive market sentiment.
• Strategic initiatives include the launch of a low-carbon cement brand and a carbon capture project.

Company Performance

Credito Emiliano’s Q2 2025 performance was a mix of challenges and strategic advancements. While the company faced a 1.9% decline in revenue to €796.7 million and a 24.2% drop in net profit to €73.5 million, it achieved a notable increase in non-GAAP revenue and maintained a strong net cash position of €144 million. The company’s focus on innovation and sustainability, evidenced by the launch of a low-carbon cement brand and a significant carbon capture project, positions it well for future growth.

Financial Highlights

• Revenue: €796.7 million (-1.9% YoY)
• Non-GAAP Revenue: €807.1 million (+0.5% YoY)
• EBITDA: €173.5 million (-9.9% YoY)
• Non-GAAP EBITDA: €171.5 million (-5.7% YoY)
• Net Profit: €73.5 million (-24.2% YoY)
• Net Cash: €144 million (+€88.6 million YoY)

Market Reaction

Following the earnings announcement, Credito Emiliano’s stock price increased by 4.74%, closing at €13.25. This rise suggests a positive investor response, likely driven by the company’s strategic initiatives and strong cash position, despite the decline in profit and revenue.

Outlook & Guidance

The company confirmed its 2025 guidance, projecting revenue of €1,750 million and EBITDA of €415 million. It anticipates a volume recovery in the latter half of the year and has planned capital expenditures of €98 million. Additionally, a potential insurance reimbursement of €20 million could further enhance its financial position.

Executive Commentary

Marco Mario Bianconi, Head of M&A and Investor Relations, expressed optimism about the company’s future, stating, "We expect in the second half to have a sort of continuation of this increase in volume." He also highlighted the company’s unique position in the market, saying, "We are the only producer in dollars for white cement."

Risks and Challenges

• Soft markets in Belgium, France, and China could impact future earnings.
• Currency fluctuations, particularly in Turkey and Egypt, may affect financial results.
• The planned sale of the Kars plant in Turkey could present operational challenges.
• Macroeconomic pressures in key regions could hinder growth.

Q&A

During the earnings call, analysts inquired about the impact of one-off events in Belgium and Egypt, as well as the company’s strategy for its Turkish operations. Potential market opportunities in the reconstruction of Syria were also discussed, highlighting the strategic importance of the Turkish market in the coming years.

Full transcript - Credito Emiliano (CEM) Q2 2025:

Conference Operator, Chorus Call: Good afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Telenetiv twenty twenty five First Half Results Conference Call. As a reminder, all participants are in listen only mode. After the presentation, there will be an opportunity to ask questions.

At this time, I would like to turn the conference over to Marco Mario Bianconi, Head of M and A and Investor Relations. Please go ahead.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Thank you. Welcome, everybody, to Chairman Tiroozi First Half twenty twenty five Results. I’m here with Francesco Caltagirone, our Chairman and Chief Executive. Good afternoon. Who will be happy to take your question at the end of my short presentation deck, which has been distributed.

So I will immediately go to Page number two of the presentation key takeaways. On the first half twenty twenty five results, the first point is that they are in line with management expectations with overall Cement sales volumes stable, albeit accelerating in Q2 as far as Cement and Aggregates are concerned, slightly higher revenues and lower EBITDA compared to the first half of last year, mainly due to negative currency impact and non recurring charges. EBITDA improvement in the Nordic and Baltic region was offset by a reduction in all other regions and a €7,000,000 negative exchange rate effect. Two non recurring events affected healthier operating performance. The first was a fire in the alternative fuels feeding system at the Goran plant in Belgium.

The second one, some technical issues during the restart of the second production line in Egypt and the postponement of some cement shipments. As far as the 2025 guidance, all targets are confirmed excluding nonrecurring charges and despite a very uncertain commercial and geopolitical backdrop. Moving to page three with a main first half results highlights. Revenue reached €796,700,000 minus 1.9% year over year. Non GAAP revenues were up 0.5% year on year to €807,100,000 There was a higher revenue in Nordic and Baltic in Turkey and Malaysia with some FX headwinds in both Turkey and Egypt and lower revenue in all the other regions.

Cement volumes were broadly stable, thanks to growth in Turkey, Nordic and Baltic and Malaysia and the general decline in the other regions. RMC volumes were up 1.5, driven by the positive performance of Turkey, Norway and Belgium, where while declined in Denmark and Sweden, whereas aggregate volumes were up by 4.8%. EBITDA reached €173,500,000 down 9.9% year over year. Non GAAP EBITDA was €171,500,000 down 5.7%. Lower EBITDA was due mainly to negative exchange rate of €7,000,000 and non recurring charges.

Non GAAP EBITDA margin reached 21.2% from 22.6% in the 2024. EBITDA was down 18.5% to €102,000,000 Non GAAP EBIT was down 12.5% to €105,000,000 Financial results was €2,700,000 down from the 22,100,000 recorded in the first half of last year, which was due to a one off lower net FX income. Group net profit was down 24.2% to €73,500,000 Non GAAP group net profit was down 20.4 to €81,400,000 Net cash reached €144,000,000 an improvement of €88,600,000 year on year, including €43,500,000 of dividends by the parent company, 6,000,000 dividends to minorities and equity investments in Egypt of €30,000,000 Turning the page to number five, Nordic and Baltic accounting of roughly 50% of our group business. Here Denmark is the most important country. Gray domestic cement volumes were slightly down versus the first half of last year with a more marked decline for white domestic cement with a still weak residential sector.

Export were up 7% mainly due to higher deliveries in Norway and Iceland. Ready mix volumes were down 4%, whereas aggregate volumes were up 16% with demand remaining strong. EBITDA was up 5.2 year over year, mainly due to the positive contribution of Cement, some savings in purchasing cost, fuel and electricity consumption. Norway ready mix sales volumes were up 10% due to favorable weather conditions and the start up of some major projects. There were signs of a slight market recovery, although overcapacity and price competition impacted the results.

EBITDA improved thanks to higher volumes and the Norwegian kroner in the period depreciated by 1.5% versus euro. In Sweden, Redemix sales volumes were down moderately, while aggregate volumes were down around 4% due to the lack of new infrastructure projects and some excess production capacity. EBITDA was up from last year and the Swedish krona reevaluated by 3% versus The U. S. Average.

Turning page number five, Belgium and France accounting for some 27% of group share of group EBITDA. Domestic Cement volumes in this region declined by around 8% in the first half due to persistently weak demand. Exports also fell by around 7%, even though they showed an improvement over Q1 twenty twenty five due to the slowdown in construction activity mainly in Northern France and a temporary closure of a railway line. Ready mix volumes were up 2%, driven by the continuation of major projects and despite harsh weather conditions in January. Aggregate volumes were broadly flat from last year.

EBITDA was down mainly due to the Cement segment penalized by lower Cement sales volumes, higher electricity costs and nonrecurring charges due to the fire in the alternative fuel feeding system at the Goren plant. Turning page to number six, Turkiye accounting for 12% of our group EBITDA. From April 2022, you know that Turkey is considered hyperinflationary, so we’re just looking at the non GAAP figures. Domestic Cement volumes were up by 5% with a strong rebound in Q2 despite ongoing macroeconomic challenges. Cement and clinker exports were up 2% despite the export ban to Israel, which is effective since the second quarter of last year.

Ready mix volumes were up 2%, supported by two new plants and aggregate volumes were up by 19%. Revenue was up 5%, thanks to higher volumes and prices across all segments despite the Turkish lira devaluation. EBITDA was down 25% due to rising costs, particularly personnel expenses mainly driven by seasonal inflation related wage dynamics, which led to a retroactive salary adjustment from the beginning of the year. Karnes plant sale is in progress with closing expected by year end. There was in the period at around the 20% Turkish lira devaluation versus the euro average.

Turning to page seven, North America accounting for around 7% of group EBITDA. Volume White Cement volume were down around 3% with some improvement in the second quarter. The residential market remains under pressure due to high mortgage rates amid persistent inflation. Texas saw the sharpest decline impacted by adverse weather and supply disruptions. The York region experienced a milder decline, mainly due to colder than average winter temperatures, while California and Florida posted moderate sales growth.

EBITDA was down only slightly, thanks to good cost control. In the period, the U. S. Dollar devaluated by an average of 1% versus the euro. Turning to page eight, Asia Pacific accounting for 4% of group EBITDA.

Revenue in China was down by 11.5% due to lower selling prices in a context of stagnant demand and delayed effects from government stimulus measures. EBITDA was down 31.9 affected by weaker pricing despite only a slight decrease in volumes. The renminbi revalued by 1.6% versus the euro average. In Malaysia, on the contrary, revenue increased by 1.1% driven by higher sales volumes, mainly exports. Total volumes were up 10% mainly due to larger clinker shipments to Australia.

Domestic volume on the contrary, though marginal in volume, declined by 10% also due to orders brought forward to December 24 and some delays in major projects. EBITDA declined by 18.1% due to lower export prices reflecting a different product and destination mix despite some cost savings and higher volumes. In the period, the Malaysian ringgit revalued by 6.5% versus the euro average. The last region on Page nine, Egypt accounting for 3% of group EBITDA. Revenue declined by 11%, mainly due to the 23% depreciation of the Egyptian pound, despite a 9% increase in local currency revenue.

White Cement volumes declined by around 2%, impacted by a weak second quarter mainly due to lower export linked to the postponement of shipments for technical reasons. Domestic market was soft in early twenty twenty five, but showed sign of recovery in June with still high inflation, currency devaluation, rising energy costs and some pressure on manufacturing. EBITDA was down mainly due to higher operating costs, only partially offset by a more favorable product mix and higher selling prices. Non recurring costs related to the reactivation of a second production line idle for nine years caused production disruption at the Elavish plant. In the period, the Egyptian pound devalued by around 23% versus the euro average.

Just a few highlights about the non financial aspects. Our decarbonization commitment continues. CO2 emissions per ton of gray cement were down 3% to six sixteen kilogram. CO2 emission per ton of white cement were slightly higher to eight sixty two kilogram. We were recognized by Sustainalytics as an ESG industry top rated company for the second consecutive year.

We achieved an A score in climate change by CDP and A- score in CDP water for the third consecutive year. In March 25, ChemEntyran Air Liquide officially signed a $220,000,000 grant agreement with European Innovation Fund for the Axione carbon capture and storage project in Denmark. The project will enable the avoidance of 1,500,000 tons of CO2 emissions per year once fully operational. We were included also in the Europe’s Climate Leaders 2025 ranking by the Financial Times and Statista. Dicarb, the first low carbon white cement brand, was launched in Malaysia with a 12% lower CO2 emissions versus Albert Portland white cement.

We were also included in the World’s Most Sustainable Company 2025 ranking compiled by Time and Statista, and we were recognized for the second time as a supplier engagement leader by CDP. That leads me to the last slide, number 11, regarding our guidance for 2025, which is confirmed with a revenue of €175,000,000,000 for the year an EBITDA of around €415,000,000 a net cash position of around €410,000,000 and a CapEx of €98,000,000 This guidance refers to like for like ongoing operations non GAAP and excluding any nonrecurring items. With this, I end my presentation and I hand over to Mr. Cartagironi, who’s happy to take your questions. Thank you very much.

Conference Operator, Chorus Call: Excuse me, this is the Chorus Call conference operator. We will now begin the question and answer session. The first question is from Mateo Bonizzoni of Kepler Cheuvreux. Please go ahead, sir.

Mateo Bonizzoni, Analyst, Kepler Cheuvreux: Thank you and good evening. I have two questions. The first one is on the guidance confirmation. You say that it excludes extraordinary items. I believe, but I want to maybe a confirmation that the two, let’s say, one off events which penalized the first half, which were the fire in Belgium and the technical issues to the second line in Egypt, in first half, they were not excluded from the EBITDA.

So they were not quantified also. I wonder, are they considered exceptional items or not? And then in relation to this question, can you maybe broadly quantify the impact of these two one off events to your H1 results? And what is your confidence to basically to fix both of them in the second half? Last question is on the squeeze of margin which we have had in Turkey.

You explained clearly that it is due to a sharp labor cost increase, which was not yet, let’s say, or not fully offset in terms of pricing cement pricing, output pricing. So in this case, what is your view on potential ability to recover this margin squeeze in the second half of the year? Thanks.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Thank you for the question. Let’s say, just commenting on the results of the first half, we believe that they appear worse than they really are for several reasons that I will explain also to answer your questions. I mean, I’m referring to the non GAAP result where, let’s say, compared to last year, we are, let’s say, nearly €10,000,000 in delay with revenues that are slightly up and quantities that are slightly better. Regarding the inconveniences that we faced in the first half in the two plants in Belgium and in Egypt, let’s say that the magnitude of these two incumbents in the first half is around €6,000,000 And then there is also just to give a full view, this increase sharp increase in the labor cost in Turkey that happened at the March with three incominences we think that are transitory in nature and we hope to reduce the ground loss during the second half of the year. And for us, let’s say, besides, I mean, the incremental cost of the labor cost, the other two are, let me say, considered one off.

But I must say that even including this one off in the first half in our budget, I am aware that you don’t know the budget divided quarter by quarter, we are slightly ahead of the budget and not below. So this means that so far, let’s say, we think that there are also slightly possibility even to have a better result at the end of the year because we think that especially in Egypt where due to as it normally happen when you restart the line after a long period, There have been some quality issue that posted us to postpone some supply and shipment. But we think that what we have, let me say, lost in the first two quarters can be recovered in the second half. And we already started so that the problem has been solved. And so for this reason, we think that we can recover the gap here that is around €5,000,000 In Belgium, the issue on the feeding of alternative fuels that, let me say, took fire.

We think that the issue, I mean, is, let me say, being sold. We experienced higher cost besides, I mean, the cost of the damage because we forced to switch from alternative fuel to coal and also with to CO2 because coal produced higher CO2. And so we were forced to buy some CO2. And this problem will be solved probably during the month of August. So I think that we are, let me say, even because of the figures in terms of revenues, in terms of quantity, we are, let me say, addressed to, let me say, to fulfill the guidance in on EBITDA and also on the cash flow.

Andrea Belaoli, Analyst, Bank of America: Okay. Thanks.

Conference Operator, Chorus Call: Next question is from Emmanuel Galazzi of EBITDA. Please go ahead.

Emmanuel Galazzi, Analyst, EBITDA: Good afternoon, everybody. Two questions from my side. The first one is a clarification on the one off. Do you expect almost zero one off from Belgium and Egypt in the second half, right? And the second one is, beside the, let’s say, the one off event in France, some of your competitors are flagging an overall weak market driven by weak residential and also lower infrastructure spending.

Can you just discuss about your view on the Belgium and France market? And what do you expect in the coming quarters?

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes. Starting from your last question. So in our perimeter, we still see some soft spot for two different reasons. One, in China, where we are, let me say, below our budget because of price environment and not quantity. And in Belgium, France, the various area is, let me say, minus 20% in terms of quantity, but the price are, let me say, stable.

This is mainly because, let’s say, the end of the Olympics and some Hangover in terms of, let me say, activity, yes. Your first question was, let me say, no, we don’t expect major We don’t expect in the second half to have made probably €1,000,000 but let’s say this is something that we are going to fix and we are, let me say, probably starting from next month to switch back to alternative fuels from coke.

Emmanuel Galazzi, Analyst, EBITDA: Yes. Thank you.

Conference Operator, Chorus Call: The next question is from Alessandro Tortora of Mediobanca. Please go ahead.

Alessandro Tortora, Analyst, Mediobanca: Yes. Hi. Good afternoon to everybody. I have two questions, okay? The first one relates to the Turkish market.

You basically communicated the disposal of the gas plant. So can you, let’s say, elaborate a little bit more on the strategy around Turkey for you in the medium term, if we can assume that probably there are, let’s say, some, how can I say, strategic plans from you and maybe you can assess also the disposal of some other plans in your Turkish portfolio? So this is the first question.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes. About Turkey, I mean, starting also from the cost side, we are we were aware that there should have, let me say, been an increase in the salary cost an alignment. But usually, this is smoother. And this year, we have, let me say, in the first half, the inflation that pays that were being twice the devaluation. So in euro terms, we suffered a sharp increase at the March.

But I can say that, as you can imagine, you cannot adjust the day after. We are, let me say, in the past of recovering with the price increase that is regarding the Old Turkey to recover this extra cost. So what we should see in the second half is that this recover in terms of profitability should kick in and already started to kick in. Regarding our strategy, I can say that CAF planning is one of the smallest in all of our perimeter, quite old. And you have also to consider that I don’t know if you are aware, but the July 2 this year, this month, the Turkish government approved the EDS scheme.

EDS scheme is more or less the same that we have in Europe. There will be two years of testing phase ’26 and ’27, and then they will start in 2028. This is just to say because this is also following the same strategy that we have in Italy. So CAS is plant that is from late ’70s. It has nearly fifty years.

And it has around 400,000 tons of clinker capacity. To upgrade that plant will cost a meaningful amount of money in a part of Turkey where we see limited development in the market. So we found a local competitor that has already a plant close to our planting capital. For sure, he can build synergies and he’ll also offer the price that in terms of multiple on EBITDA that I see I think it’s quite interesting. So we are just waiting the clearance from the antitrust that should arrive by September.

This means that, let’s say, for sure in Turkey, the most interesting part is the western part for Izmir and Trachea plant. Elapi plant is interesting mainly because now it’s starting the rebuilding of Syria and might be interested for the next few years by, let me say, increase in consumption. But let’s say, car sales is just an opportunistic unsolicited, let me say, step because somebody came to us and say that if we were, let me say, interested in selling the asset, and I believe that the value that we might extract with the sales is higher than the value more than the value, the free cash flow that we can extract from the sale is higher than the free cash flow projected ten, fifteen years ahead. If, let me say, also we consider the upgrade that the plant needs, especially if the ADS system start, we’ll allow and we’ll ask to hold the producer to decline the emission for the next two decades for sure.

Alessandro Tortora, Analyst, Mediobanca: Okay. Okay. Thanks. And then sorry, the second question is just a clarification on the guidance. So basically, if we look back at the first half results, you had this headwind from the effects quantified in around EUR 7,000,000 EBITDA.

So the question is, considering the second half, and probably we will have all these persistent headwinds also considering the new dollar, but also looking at the Chidira. Compared, let’s say, to your initial guidance, does this mean that you have a kind of change? Or basically, you are confident that, let’s say, the operating results are able to more than offset these FX headwinds? So just to understand how it works for you, negative contribution from FX.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Let’s say that in Turkey, for Turkey, we expect this year to have a better result compared than last year in Euroderms.

Bruno Permutti, Analyst, Intesa Sanpaolo: Okay.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: So now this is just a mismatch of cost that happened with retroactive that is not so common from the first, let me say, of January and this happened in full in the second quarter. But we expect, let’s say, that if the situation continues as it is today with no measured threat from the economical or political side that we should in Turkey have better results than last year.

Alessandro Tortora, Analyst, Mediobanca: Okay. Thanks.

Conference Operator, Chorus Call: The next question is from Bruno Permutti of Intesa Sanpaolo. Please go ahead.

Bruno Permutti, Analyst, Intesa Sanpaolo: Yes. Good evening, I was wondering about the volumes in the second quarter and in the rest of the year. So we saw an increase probably in volumes in the second quarter, which was frankly quite surprising from my point of view. And I was wondering if it is something that is mainly related to the phasing of the deliveries or if you are seeing at the group level an improvement of the volume situation looking into the second half? The second question relates to Denmark.

We didn’t see in the first half an improvement in the volumes, if I have well understood. So I know that there is an important infrastructure project there. If you can update us on that and on the ramp up of the project. And if I may, two other questions, one related to a possible insurance restore. So are you insured in Belgium, and do you expect to have the insurance restore and in case when?

And the last question, you mentioned the reconstruction of the Spheria. I was wondering if it is still hope or if you are seeing something going on more materially.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Regarding the volumes, so let’s say, we expect in the second half to have, let me say, a sort of continuation of this increase in the volume. Have lack of volumes, some volumes especially in Denmark as you are asking because of this project because it’s slowing getting pace. And also the volumes of the first half are impacting negatively for, let me say, the Egyptian situation. But now I think it’s all for this reason, I believe that in the second half, we should continue at this pace, let me say, to recover compared to last year in terms of volume. The only issue about volume is just the Peri area because all the other places including China, because in China the same issue is the price, but a slight decline in the price, not a huge decline in the price.

So we expect also because it’s nearly two point five years that the volume are declining in that area that sooner or later we should start to pick to see some pickup in volumes in Northern France tension. I think that about Fermin, I also I already answered in standard Fermin.

Bruno Permutti, Analyst, Intesa Sanpaolo: And what was the insurance, the possible insurance restore and then on Seria? I

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: think, check, we are insured on damages and business continuity. We expect to have some restoration during this year. Let’s say that we expect that because also there are other, let me say, impairments that happened even in 2023, minor and probably in 2023 and 2024. But let’s say that we might expect to have restoration of around €20,000,000 That this EBITDA tender might arrive directly in the EBITDA and we don’t think that they are one off because just they just cover cost sustained or extra, let me say, cost likely what is happening now in Belgium for various reasons for business continuity like it happened in Asia. So with the insurance, sometimes it takes things take longer.

But let me say we are actively working with the counterparts. And let’s say, I expect, let me say, by, let me say, in the second half to have, let me say, the settlement of this. And Syria, let’s say, it’s key in gap. Let’s say, it’s not anymore in blacklist. And let’s say, it depends.

The start will be very slow because everything is destroyed one kilometer after the border of Turkey. So they have to start to rebuild and also clean from mines, let me say, because there are, let me say, thousands of mines on the road. And so we don’t know exactly, but we are aware, especially from the Turkish Association that devastated the last years. And it will be millions of tons of supply of cement that can arrive only from Turkey because part or most of the industrial production in Syria has been, let me say, destroyed in the war of the last twenty years. So for the very I think I believe we believe that for the first three to five years, most of the cement that we that Syria will need will arrive from this.

Bruno Permutti, Analyst, Intesa Sanpaolo: Thank you.

Conference Operator, Chorus Call: The next question is from Pierre Yves Gautier from Alfa Value. Please go ahead.

Pierre Yves Gautier, Analyst, Alfa Value: Yes, good afternoon. Can you walk us through the ForEx impact? It’s quite intriguing that at a revenue level, they seem to be pretty limited with the dollar, which has been down 10% since the beginning of this year. And it implies that you have a very strong pricing capability. This would be my inference, but clearly, it’s probably much more complex than that.

So could you be maybe helpful and try to explain us what has happened from a ForEx standpoint at the revenue level? You expressed the cost at an EBITDA level, but I was just wondering whether we could get some degree of granularity on this dollar impact or non impact potentially over the first half.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes. I’ll take this question. Thank you. Actually, at revenue level, at constant exchange rate, our revenue would have been EUR 8 and 42,100,000.0, so 4.8% higher than the same period of last year. So there was absolutely an impact on revenue in translation because it’s not transaction, it’s translation.

And at the EBITDA level, explained it was 7,000,000 and of which clearly there was a big portion in Turkey for the reason that the Chairman explained before that was mainly due to a gain translation and devaluation of the Turkish lira. So absolutely was an impact on both top line and EBITDA. And the main two currencies involved are Turkey for the relative side and Egypt, which are the two currencies that they value the most against the euro in the period. These are the two major impacts. Then we can we do not provide the breakdown exactly, breakdown of the EBITDA impact, but I think the Chairman also gave you a hint with regards to the personnel costs in Turkey and these are the main and there are then obviously a few others, but just to give you an idea of some color about the impact.

S. Dollar, I mean, we are mainly natural yes because the cost that we bear for fuel and spare parts, So the need of dollars is balanced with, let me say, the sales that we have for exports from the various countries. So let’s say, we are more or less neutral with the dollar if it’s going up or down.

Pierre Yves Gautier, Analyst, Alfa Value: Right. But I would I agree with that, obviously, but I would have thought that the dollar would have had a global impact on your pricing. I understand perfectly what you said about the Turkish and the Egyptian situations. That was very clear in your communique. But the question is really a broader one.

But in a weaker dollar context, effectively, you do not seem to suffer from dollar lower lower prices expressed in the European currency, in effect, you’re reporting currency.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes. This is because we are in white cement mainly, except for Turkey in our export. And let’s say, the pricing of white cement is different from gray cement. So let’s say that even now the tariff that will be applied everywhere, as you can imagine, for us, let’s say, everything that will be shipped to U. S.

A. Will have a charge of 10%. But what is produced in The United States, let’s say, does not have will not charge. We are the only producer in dollars for white cement and then also our limited part of the perimeter that is only 10% of our revenues that is denominated in dollar because we have a limited perimeter of our, let me say, business in The U. S.

Pierre Yves Gautier, Analyst, Alfa Value: Okay. So but it shows originally as at the end of the day. So that’s great news. Thank you.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Thank you.

Conference Operator, Chorus Call: The next question is from Egor Sonin from Alfa Romeo. Please go ahead.

Egor Sonin, Analyst, Alfa Romeo: Good afternoon, everyone. Thank you for picking up my question. I wanted to ask you about your FX risk. You mentioned a €7,000,000 negative FX impact on EBITDA in 2025. Could you please clarify whether this figure is presented before or after hedging?

In other words, is this the gross effect of currency movement or the net result after applying any gains or losses from hedging instruments? And additionally, could you please elaborate whether the hedging strategy has changed recently due to the persistent currency pressure in Egypt and Turkey? Thank you.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: I think that the main I mean, usually, let me say, every result even in the past included this figure. I mean, this year, in the first half, let’s say, it’s mainly coming from Turkey where it’s impossible with 50% rate to make any kind of hedging that we have this, let me say, inflation that grow at double pace of devaluation. So usually, this, if I let me say, in narrow terms, they are neutral. But in as it happened now that in for one quarter, two quarters, there is, let me say, a mismatch, this can cause, let me say, an extra headwind. So we are just signaling this, but this is usually is considered in our perimeter and in the past year.

So just now to just to help you to clarify why there is, let me say, some delays. But we are expecting, as I said, that the price action in the second half in Turkey will help us to recover the personnel cost increase and also these let me say headwinds that is let me say pumping up some cost related.

Egor Sonin, Analyst, Alfa Romeo: Okay. Thank you.

Conference Operator, Chorus Call: The next question is from Andrea Belaoli from Bank of America. Please go ahead.

Andrea Belaoli, Analyst, Bank of America: Yes. Good afternoon, everybody. Thank you for taking my question. I’m just curious about your interest rate because you mentioned a 3% slowdown in volumes. If I look at the EBITDA margin, it improved by around 20 basis points.

You mentioned some risk control and I was just curious about just curious to have some more color on this. Thank you.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes. No, thank you for the question. First of all, probably our performance in The U. S. Has backed the trend a bit because looking at the competitors, people are reporting relatively weak figures.

We clearly have not as much leverage to the infrastructure, data center and Fed funded spending as some of our competitors because as you know, we operate only in white cement. White cement is a peculiar niche, which is a bit specific feature of cement here. We are the first producer and only producer of white cement in The United States with two plants. And we have a mixed model. The model is mixed of manufacturing and distribution.

So out of the around 600,000 tons of cement we distribute and sell annually in The United States, in North America, about half are produced and the other half are imported. So I think that we’re there was a combination of a better purchasing for Cement, some cost control and logistics savings, which more than offset some of the negative operating leverage. So we were able to actually, let’s say, resist to the negative pressure of slightly declining volumes, so with a very good result. And I think the fact that we are the incumbent and the largest producer in the country plays a part. But I think that overall, we are very happy with the operating results of our subsidiary because we’re clearly on top of the cost structure of the company and we’re able to deliver good numbers for H1.

Alessandro Tortora, Analyst, Mediobanca: Perfect. Thank you.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Thank you.

Conference Operator, Chorus Call: The next question is from Alessandro Tortora of Mediobanca. Please go ahead.

Alessandro Tortora, Analyst, Mediobanca: Yes. Sorry, let’s say two follow ups, okay, from my side. The first one, if you can come back to the comment on the insurance reimbursement you were expecting, but also the timing of the settlement. So if understood well, you mentioned the €20,000,000 as a potential, let’s say, insurance reimbursement, and this would be related not only, let’s say, to the one off cost you had this year, but also to some other events occurred in the past. So just to understand if, let’s say, these positive outcome and the settlement is something you consider, therefore, recurring and included into the guidance, this is the first question.

Thanks.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: No. The insurance is not considered recurring. We expect, let me say, to have the deal during the second half. Then in terms of cash flow because one thing is that you reach the deal and you can, let me say, register note to the balance sheet in the book. You can book in the balance sheet.

Or the other is that you when you receive the money that probably sometimes you are aware with the insurance that with this kind of amount, it will take some time. So I think that I have a positive mood on, let me say, trying to reach an agreement, let’s say, around this amount that is mainly linked to this year with some, let me say, hail of, let me say, the previous two years. But let’s say, it’s not included in our view, and this should, let me say, help to close the gap and even to recover more than the gap that we have, let me say, so far in terms of EBITDA.

Alessandro Tortora, Analyst, Mediobanca: Okay. Okay. Understood. Thanks. And then sorry, last, just a curiosity on your, let’s say, net profit line.

If I look at, let’s say, the result attributable to the non controlling interest, Should we assume also considering all the deal you made in the past year, we assume that basically this is a line that is going to go basically to zero?

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Let me say, not to zero, but close to zero because now our minorities are mainly, let me say, Malaysia, U. A. And in Egypt, they remain just 3%. Most of our, let me say, minorities came from Egypt. So we let’s say, it’s around one million two three million let’s say, this is I cannot say, but it’s very small.

Alessandro Tortora, Analyst, Mediobanca: Okay. Okay. So probably also the fact that we saw, let’s say, such a low number in this quarter was due to, let’s say, the events you mentioned on the penalized Egyptians.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Yes,

Alessandro Tortora, Analyst, Mediobanca: Okay,

Conference Operator, Chorus Call: Management, there are no more questions registered at this time.

Marco Mario Bianconi, Head of M&A and Investor Relations, Tiroozi: Okay. So thank you very much for your interest in Tremantir and we wish you a pleasant rest of your day and evening. Thank you very much. Thank you.

Conference Operator, Chorus Call: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

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