Earnings call transcript: GTT sees robust Q2 2025 growth, stock rises 0.69%

Gaztransport et Technigaz SA (GTT) reported a strong financial performance for Q2 2025, with revenues rising 32% year-over-year to €389 million. The company’s stock saw a positive market reaction, rising 0.69% to €160.7 in after-hours trading. EBITDA increased by 49% to €308 million, with an enhanced margin of 68%. The company also provided optimistic guidance for the remainder of 2025, projecting revenues between €750 million and €800 million. According to InvestingPro data, GTT maintains a robust financial position with a "GREAT" overall health score of 3.11 out of 5, supported by trailing twelve-month EBITDA of €855.98 million.

Key Takeaways

• GTT’s Q2 revenues rose 32% year-over-year.
• EBITDA margin improved to 68%.
• Stock price increased by 0.69% following earnings release.
• Strong market position with 25% share in LNG as fuel.
• Revised 2025 revenue guidance to €750-800 million.

Company Performance

GTT demonstrated robust performance in Q2 2025, driven by strong demand for its LNG technologies. The company’s revenues increased by 32% compared to the same period last year, bolstered by a 35% rise in new builds revenue. This growth reflects the company’s strategic positioning in the LNG market and the expanding demand for sustainable energy solutions.

Financial Highlights

• Total revenues: €389 million (+32% YoY)
• New builds revenue: €365 million (+35%)
• Digital activities revenue: €9.4 million (+36%)
• Services revenue: €12 million (+11%)
• EBITDA: €308 million (+49%)
• EBITDA margin: 68% (up from 60% in H1 2024)
• Free cash flow: €28 million (+64%)

Market Reaction

Following the earnings announcement, GTT’s stock price increased by 0.69%, closing at €160.7. This movement reflects investor confidence in the company’s growth trajectory and its strategic initiatives in the LNG sector. The stock is trading closer to its 52-week high of €170.6, indicating positive market sentiment. InvestingPro analysis suggests GTT is currently undervalued, trading at an attractive P/E ratio of 5.93. The stock also demonstrates low volatility with a beta of 0.31, making it potentially appealing for stability-focused investors.

Outlook & Guidance

GTT provided an optimistic outlook for the rest of 2025, projecting revenues between €750 million and €800 million, and EBITDA between €490 million and €540 million. The company expects continued growth in LNG demand and plans to focus on high-power electrolyzers and e-fuels, anticipating increased demand in these areas. InvestingPro subscribers can access 13 additional ProTips about GTT, including insights about its dividend history and cash flow strength. The company maintains a healthy current ratio of 1.4 and offers a dividend yield of 2.94%.

Executive Commentary

CEO Philippe stated, "We are reasonable people and cautious, but we have always been very bullish," highlighting the company’s confidence in its strategic direction. He also emphasized the growing importance of LNG as a shipping fuel, stating, "LNG is more and more the fuel of choice for shipping."

Risks and Challenges

• Potential supply chain disruptions could impact production timelines.
• Market volatility and geopolitical tensions may affect LNG demand.
• Regulatory changes in the energy sector could pose compliance challenges.
• Competition in the LNG technology space remains intense.

Q&A

During the earnings call, analysts inquired about the restructuring of Elogen and its impact on future operations. GTT addressed concerns about the financing of its recent acquisition of Danelec, emphasizing strategic alignment with its digital solutions expansion. The company also discussed implications of the EU-US energy agreement on its business strategy.

Full transcript - Gaztransport et Technigaz SA (GTT) Q2 2025:

Philippe, Presenter/Executive, GTT: Good morning, ladies and gentlemen. I thank you very much to join us for this presentation of the GTT Half One twenty twenty five results. In fact, GTT delivered a very strong financial performance during these first six months. Let’s look at that. The energy demand, the LNG demand is remaining very strong as evidenced by four financial investment decisions already taken.

Another key point is that we’ve acquired Danelec in May. Also, and we are going to talk about it, we are restructuring of Elogen, and it’s largely done. Our revenue have increased by 32% compared to the first six months of GTT last year, and our EBITDA has increased by 49%. And we have an EBITDA margin of 68%. That shows that we did not lose our lean and fit approach to costs and management.

The order book is very strong and is supporting a long term visibility. We have two eighty LNG carriers to deliver and we have 54 LNG as a fuel tanks to deliver, which is more important than one we had in December 2024. I will leave the floor now to Thierry Vallo, who is VP Innovation Group VP Innovation.

Thierry Vallo, VP Innovation Group, GTT: Thank you, Philippe. As highlighted earlier this year in our innovation road map, we remain committed to driving innovation across all fronts, enhancing our core technologies, developing maritime digitalization, enabling energy transition and preparing the solutions for the future. But let me give you a few tangible results from this first half. We obtained three approval in principles from leading classification societies, each reinforcing our leadership in our strategic markets. First, Bureau Veritas approved our ethane slim version of our Mark III and NO96 technologies.

This creates a specific version of our membrane technologies for the ethane carriers with additional benefits in terms of cost, in terms of volume and also in terms of timeline. Then we got the approval from DNV from our one bar gauge membrane design. This is for LNG as a fuel technology. It enables it gives a higher flexibility for ship owners and ship operators, giving them some flexibility and preparing them for the future cold ironing regulations and also giving them more flexibility for warm bunkering. Finally, Lloyd’s registered, approved our Ammonia Ready Mark III technology for both LNG as a fuel, LNG carriers ethane carriers and bunkering vessels.

This gives additional flexibility for ship owners and preparing the energy transition. Each of these improvements reflect our ability to use our technological expertise to create practical value for ship owners. But our innovation efforts go beyond our internal R and D. Through GTT’s strategic venture, we support the development of disruptive technology with a strong potential for energy transition. Our most recent investment in Core Power Ocean.

Core Power Ocean is a Swedish pioneer in wave energy transition. You can see on the picture, the first scale one prototype of this buoy. This technology proved its capacity to generate consistent power in normal condition and at the same time, to resist the harshest weather conditions up to waves over 18 meters high. Following this so this has qualified this technology for the future. By backing Core Power and the eight other ventures in which we have invested since the creation of our venture capital body, we are actively contributing to the emergence of alternative sustainable energy sources.

These partnerships enable us to explore adjacent technologies to our core technologies. They give us strategic insights, and they also give us some potential access to potential additional capabilities for our long term roadmap. To sum up, our approach is both focused on open, enhancing our core technologies, preparing the solution for the future and broadening our reach through strategic venture. With that, I leave it back to Philippe.

Philippe, Presenter/Executive, GTT: Thank you, Thierry. So let’s look at our strategy and activity. And first of all, let’s look at the situation of the market of the LNG market. We can see supportive trends in a complex geopolitical context. We have very strong tailwinds supporting the industry.

There is a new S. LNG momentum, which is strengthening the perspectives. And the new American administration has stopped the pause put on LNG projects as soon as the January 20. And we saw several FIDs in The U. S.

Representing tens of million tons of LNG per annum. There are also some headwinds in the near term. First, the geopolitical tensions that we know in The Middle East and also in Asia and in Europe. And there are also tariffs and taxes. And new American administration has installed a tax on Chinese built ships whenever they are calling American harbors.

In this situation, the owners are a little bit perplexed on where they should buy ships. Chinese ships are taxed. They are driven to buy American built ships, which is not really in the competencies of American shipyards. And current ships are enjoying a very strong position in this situation and are not particularly accommodating low or lower prices than those they were offering. So ship owners that we are meeting on a very regular basis are assessing timing of ordering I mean, these strong long term fundamentals, we could add the European U.

S. Agreement past weekend on that. But we could add many things, But for exporting energy, you need ships. So let’s see what it means for us. Another way to look at this strong tailwind is to see the expectations from LNG companies or agencies or consultants on the LNG demand.

And since we gathered together last February, their expectations have increased. And for example, the central scenario for demand of energy up to 2040 is at an average growth of 6% per year. Shell as the largest energy industrial company in the world, has increased its long term perspectives. We can see that also through the sale and purchase agreement of LNG, sales and purchase agreements, that the agreements buyers are passing with LNG providers. And we can see that in the 2025, there was a very strong activity both for pre FID projects in The U.

S, for pre FID projects elsewhere and for post FID projects. We can see that this activity has never been so high in the past, which is clearly highlighting that something is going on in the LNG business. And that should build our confidence for the future, and in particular, for future FID announcements when we see all the pre FID contracts. Talking about the FID, we can see that this first part of this year has been very, very strong. You can see on this graph that 2023 was very strong with 56,000,000 tonnes per annum decided.

And in this first part of this year, we are already at 38,000,000 tonnes per annum. So well on our way to possibly beat year 2023. It’s mainly U. S. Projects, which are there, and there is another one in The Americas, in Argentina, to be specific.

Well, the list of the projects. On top of the list, you can see the projects which have been decided since the beginning of this year. And below, you can see the projects which are in the offings, and we analyze them. For us, some should be decided by the end of this year or next year. But there is a lot of activity for new LNG projects.

Another strong factor, and we keep on talking to you about that, it’s regulations. The International My Time Organization has passed a new regulation which creates a strong renewal incentive. In fact, it’s a regulation which is largely mimicking the European regulations about taxing the emissions of ships and on incentivizing owners to switch to biofuel, bio LNG or e fuel, e LNG. And you can see that on this graph that ships are going to be significantly taxed. And compared to what was in place before, there is a category of ships, the DFD ships built a bit before 2010, a bit after, but which are not that old, which are going to be significantly taxed as they have important emissions.

On the right hand side of the slide, you can see the scrapping and conversions which have which are taking place. And you can see that in this first half of this year, the number of scrapping and conversions has been almost equal to what has happened last year. So definitely, this renewal is on the move, is coming, and all the indicators are confirming that. This new regulation, we consider that it should impact as soon as 2028, three fifty ships. So of course, owners going to pay the taxes, are not going to stop operating these three fifty ships.

These taxes will keep on growing and the incentive for renewing ships will be increasing. So, once a year in February, we publish our long term estimates. We don’t modify them, so we are not going to modify them, but we are maintaining our long term estimate for four fifty units over the next ten years as far as the LNG carriers are concerned. Well, I would like to talk to you about LNG as a fuel. As we are saying for many years, LNG is more and more the fuel of choice for shipping.

And many ships are ordered currently with energy as a fuel. We are receiving some. We’ve receiving we received 18 orders since the beginning of this year. We have a market share of about 25%. We are trying, we are fighting, we are struggling to enlarge this market share, both through commercial efforts and also through technological efforts.

And Thierry Vallo explained to you a bit earlier the one bargauge interest for the ship owners. Now I will give the floor I will pass the floor to Anwar Casey, VP Digital, who is going to present to you our Digital Solutions.

Anwar Casey, VP Digital, GTT: Thank you, Philippe. Good morning, ladies and gentlemen. So for the H1 twenty twenty five, we have achieved revenue of EUR 9,300,000.0 representing a steady growth year over year of 36% compared to last year, which was EUR 6,100,000.0. And most importantly, our gross margin has significantly improved from 48% to 57%, which is an improvement of nine points. So in order to illustrate the dense digital activity we have witnessed during the first part of the year, we selected three key events.

Please keep in mind that we don’t communicate all the contracts and the events that happen in this activity because our customers are shy in communication. But of course, there’s more than that to achieve the revenue we announced today. So going back to this key event, we expanded our fleet center or real time fleet performance monitoring center in Vancouver to offer a twenty four seven service to our customers. The second event is the it’s a very important signature with TMS, which is a very important Greek ship owner with a fleet of over 130 ships of all kinds. That is also a testimony of the value proposition that GTT offers through the combination of ASCEN’s Morocco and VPS that is very well welcomed by the the market.

The last example we have here is the signature of this contract with China merchant energy shipping for eight LNG carriers. And that is also an example of the trust that these players place in GTT and its LNG expertise in LNG and that Essence Morocco conveys through our digital solutions. We have announced the acquisition of Dynelec earlier this year, and it is a very important, I would say, even transformational acquisition as it will put us in a leading position in two segments, safety and performance management, and I’ll come back to that in more details. But first, Danilec is a Danish company based in Farum with an installed base of 15,500 ships and 168 employees. It has delivered €44,000,000 between June or July 23 and June 24.

And with a service network of 700 certified technicians, external partners, these are not employees, around the globe and positioned in the main operations hub of operations around the world, we are really getting a global footprint, getting very closer to our customers to serve them in the best way possible. So Danilec operates in two segments. Safety representing 64% of the revenues that is represented mainly by this very important device, a critical device that is mandatory on the large portion of the ships that records the, say, safety information, especially in case of an incident. And Danilec has a leading position, especially in the retrofit segment. That goes with or comes with an annual service that we call recurrent because it is recurrent actually as it is mandatory again.

That is actually a test performance, a yearly test performance for each device. The second segment is performance representing 31% of the revenue of this activity, represented mainly by another key device, short power meter, which is very important for the performance management of a ship and software that is a growing activity within Danelig and that we complement very well with ASCEN’s Morocco solutions. And the recurrent revenue represent 30% as of today. With this acquisition, we also believe strongly that the combination of Essence Morocco, VPS and Danonec will unlock significant synergies. And here we try in this chart to highlight a few of them, especially the revenue synergies.

So if we take them one by one in shift performance, we believe that the solution that we have developed through the years under the leadership of GTT and the support with of GTT will fit very well Danilec customer base. That, if you remember, represents 15,500 ships. Same goes with our voyage optimization solution that is gaining momentum in the market, and that will be a very good complement to the portfolio we can deploy over Dynalic customer base. Regarding the sensors, VRS, which is a data collection system and the shut power meter that collects data that is very important and relevant for ship performance management. This will fit very well in our solutions, giving us an opportunity to upsell our solutions within our customer base.

Last but not least, the VDR, which is a key component and a solution within Danelux ecosystem, give us a very close relation with thousands of customers to build a trustworthy or trust relationship with them and again upsell or cross sell our solutions within the customer base. I’ll leave the floor to Thierry, who will talk to you about the strategy

Thierry, Financial Executive, GTT: on Elogen. Thank you, Anwar. Good morning, everyone. Now let’s focus on halogen. You know that we announced at the beginning of this year a strategic review for sorry, a strategic review for the activity of halogen to consider the market lag and to consider the absence of significant orders for Elogen in 2024.

This strategic review confirm the need to reshape Allogene’s business model to limit cash burn and focus on what makes the company truly competitive, its R and D capabilities and proprietary technology. As part of this refocus of this refocus, Elogen is concentrating on the production of high power stacks using the existing capacity at Les Ugliese, close to Paris. So regarding the measures or the status of measures announced at the beginning of this year, First, information and consultations procedures with employee representative bodies were completed early July. It means that we can start the workforce reduction by 110 positions. The second element is the Gigafactory in Vendome.

The construction of Gigafactory has been definitely stopped. And regarding subsidies, discussion with French authorities are in progress, and we expect a favorable outcome in the coming weeks. As a consequence, at the June 2025, we booked €45,000,000 for the restructuring of Helogen for mainly asset write off of Gigafactory as well as cost linked to the decommissioning of the building and indemnities granted to construction companies. And you have as well a provision for the workforce reduction plan. Regarding the figures for the business, you can see that on screen for the turnover, the revenues for the H1 twenty twenty five is to amounted to €2,500,000 and the EBITDA at minus €9,200,000 Now let’s move to the financial part of the presentation.

As you can see, our core business order book reached three zero eight units at the June 2025 for a value at €1,700,000,000 of revenues. This order book means strong visibility for GTT in the coming years, as mentioned in the graph at the bottom right, where you can see the consumption and flows of our backlog in the years to come in terms of revenue. Now moving on to more details on revenues per activity at the end of the 2025. Total revenues at €389,000,000 are up 32% compared to H1 twenty twenty four, driven by new bills standing at €365,000,000 meaning plus 35% and benefiting from a higher number of LNG carriers under construction in H1 twenty twenty five. Driven by electrolyzer’s revenues are down and stands at €2,500,000 as mentioned just before, as Elogen is continuing its transition and repositioning.

Digital activities through our ASCEN Smart Car affiliate, which increased its revenue by 36% at €9,400,000 at the June 2025. Please note that here, you do not have any figures from Danilec because the closing has not yet done as of today. And finally, revenues from services increased by 11% at €12,000,000 thanks to development of certifications and services to vessels in operations. Let’s continue with the other main aggregates of the P and L and in particularly EBITDA and EBIT. You can see the impressive increase by plus 49% for both compared to H1 twenty twenty four.

This is mainly explained by the increase of revenues from GTT’s main activity, mainly explained by the absence of significant delays in ships construction schedules and mainly explained by a close monitoring of our costs. As consequence, the EBITDA margin amounts to 68% in H1 twenty twenty five compared to 60% in H1 twenty twenty four. One or two additional comments regarding our CapEx investments and the free cash flow. Our CapEx investments at €25,000,000 include the rehabilitation of our buildings of our headquarters, R and D program as well and the new minority stakes within the framework of our GTT venture capital with Novomov. And regarding our free cash flow at $2.00 €8,000,000 which significantly increased by plus 64% compared to last year.

I think that this is a solid first half of GTT. I now hand the floor back to Philippe for the outlook.

Philippe, Presenter/Executive, GTT: Thank you very much, Thierry. So our outlook for 2025, we maintain our revenue guidance with consolidated revenue estimated in the range of $750,000,000 to €800,000,000 For our EBITDA, our EBITDA for 2025 should be in the range of €490,000,000 to €540,000,000 And for our dividend, we maintain our payout ratio of at least 80%. Of course, all these figures are subject to shareholders meeting approval and are before the acquisition of Danilec. Now we are available to answer to your questions.

Jean Louis Lucromat, Analyst, CIC Market Solutions: Jean JEAN LOUIS Lucromat, CIC Market Solutions. Two questions. You mentioned the LNG industry is puzzled by the willingness of The United States to have LNG carriers built domestically. Do you see any shipyards that could be able with maybe lots of assistance to do this? That’s the first question.

And second question is on EloGen. What kind of power for you mentioned increased power for your stocks in a less competitive area. What kind of power are you in this earning for the future LNG contracts?

Philippe, Presenter/Executive, GTT: Well, for The U. S. Built contracts, this is something that the shipyards current shipyards are looking. Probably they are going to be able to obtain a progressive way where their ships will be at the beginning largely built in The U. S.

And progressively more and more built in The U. S. So it’s something which is currently discussed. Obviously, The US are the Americans are very pragmatic people. They do know that in order to export energy from the facilities, they need ships.

They would like to revive the American shipbuilding industry. That cannot be done overnight, so that will be done progressively. So let’s see that. We are discussing with the various parties in order to provide our support in this effort. In your second question, once you pass the five megawatts, 10 megawatts threshold, the number of companies which are able to provide electrolyzers with such power are much more limited.

We think we have always thought that the technology we had was a very attractive one. We can now offer these powerful stacks, and what we aim at is selling these electrolyzers without generating losses. We think that it’s something which is achievable, and we are going to pay a lot of attention to the execution of these contracts.

Celine Roger, Analyst, Kepler Cheuvreux: Good morning. Celine Roger from Kepler Cheuvreux. Two questions, if I may. The first one is on the commercial dynamic on the LNG cargo side. H1 order intake has been relatively muted, but you mentioned that the level of FID on the LNG market has been quite high with 38,000,000 tons, etcetera, of project being sanctioned.

So when do you expect those orders to come? And broadly speaking, what are your maybe expectation for the H2 commercial dynamic on the LNG cargo side? And the second question is on the full year guidance. You confirm the guidance, but making it stupid in a way, Matt’s taking the H1 EBITDA and replicating it in H2, you are already in the high end of the range, close to €530,000,000 So just trying to understand what, in a way, pushed you to keep the low end of the guidance on the EBITDA side, please?

Philippe, Presenter/Executive, GTT: Well, on the H1 orders, you may say that the orders have not been at level that you would have expected. I would say that it’s hard to analyze the evolution of the market on such short time period. And we many things are at work in this part of this year, but the relaunch of the FID, which is very positive for GTT in the midterm, but also this willingness of the new American administration to have LNG carriers built in The U. S. And also the implementation of taxes on Chinese built ships whenever they are calling American harbors.

Owners would like to better understand this overall context and how they can cope with that through partly American built ships, current built shapes, whether through the negotiations between The U. S. And China, there could be an accommodation to these tax regimes. So they just wait for clarifications on all these changes which have happened in the energy industry. The fact of the matter is that this beginning of this year has been absolutely decisive for new energy projects and once more insist on the decision this weekend on tariffs between Europe and The U.

S. So there is a very strong momentum. And once this very specific issue on energy carrier is addressed, I’m pretty sure that the flow of orders will restart.

Thierry, Financial Executive, GTT: Regarding your second part of your question and the guidance, you know that we factor every year in our guidance delays potential delays in ship construction schedules. And definitely, we do not expect any significant delays, but we are very cautious regarding our approach of our guidance. And we will keep this approach. And if we need to revise this guidance, we will do it perhaps in Q3 or in Q4, but not before, just that because we need to have time for that and to anticipate these delays in the future.

Moderator, GTT: I think we also have some questions over the phone.

Philippe, Presenter/Executive, GTT: There is still a question in the room here. Mr. Delebi would like to have a mic.

Analyst: No. I just would like to come back to the EU U. S. Agreement. So I guess you prepared this presentation last week.

So we all know the agreement which has been announced and the commitment by the EU to purchase up to €750,000,000,000 energy purchases over the next three years. So this may translate into 55,000,000 additional MTPA. So two questions. Is this possibly feasible over the next three years? And second, maybe qualitatively, if could you maybe tell us what is your feeling, I would say, today versus what could have been your feeling, I would say, Saturday night before this announcement?

So in other way, is your bullish view is even more bullish? And if yes, by how much in qualitative terms?

Philippe, Presenter/Executive, GTT: IGNACIO ARAMBARRI:] Well, the feasibility is something quite important effectively, but it depends what you mean in purchasing. We see the SPA, which have taken place in this first part of this year. And these SPAs are for projects which are going to be operational in 2029, 02/1930, 02/1931. So Europeans and European companies, because that’s not the union which is buying energy, that’s companies. European companies may buy $750,000,000,000 of LNG over the past over the next three years.

But this LNG most certainly will be delivered either by the very end of this decade or by the beginning of the next decade. And that means that other sources of gas will have to reduce their share. So, it may be Russian gas, it may be some other sources in The Middle East, in North Africa or in other places. And it does not particularly mean, in fact, that at the end of the day, this LNG will be burnt in Europe because thanks to very flexible ships, LNG can be delivered in Europe or in other places. So what we have to see there, it’s that it’s a very strong supportive factor for new investment decisions to be taken in The U.

S. And the feasibility of that depends very much on the timeframe. And in particular, the in the next three years, I think it’s signature of SPAs and deliveries will happen at the beginning of the next decade. So more we have always been bullish on LNG. We are we don’t want to appear unreasonable or overexcited.

We are reasonable people and cautious, but we have always been very bullish because this industry is existing. It’s delivering an energy which is cheaper than many other energy. When you look at the megawatt per hour prices in Europe, it’s hard to beat gas. And it also allows to reduce significantly the CO2 emissions compared to other energies. So it has a lot of merits.

So we have always been bullish. Now we can see a very aggressive policy put in place in The U. S. Maybe it’s compensating what has taken place, what has happened in The U. S.

In the last part of the previous American administration. Let’s look at the long term. We do think that energy will continue to grow and will continue to help the planet to work and to reduce its emissions. Next question?

Moderator, GTT: We also have questions coming from the phone line. Operator, can we please take the first question?

Call Operator: Sure. The first question is from Guillaire Melody of Morgan Stanley. Please go ahead.

Guillaire Melody, Analyst, Morgan Stanley: Hi, good morning everyone and thank you for taking my questions. I have two please. The first one just on your Allergan expense, how should we expect the disbursement of cash? Is that fully expected to be done this year? Or does part of it also sleeps into 2026?

And then perhaps if you can provide us an update on the Danelac acquisition, just if you have additional color in terms of timing for completion. And also when we start to think about synergies, how quickly do you expect them to play out? Thank you.

Thierry, Financial Executive, GTT: I will take the first one. Do you hear me? Yes, sorry. Will take the first one regarding Elogen. Yes, you have €45,000,000 cost impacting our P and L.

And you not all elements are cash because you have asset write off for €22,000,000 It’s not cash impact, but just a write off and P and L impact. And you will have some elements with cash impact, mainly the workforce cost workforce reduction plan and some penalties or indemnities that we need to pay to the construction companies for this stop or the height of the Gigafactory construction. That’s the main one. And we do not expect any additional cost significant cost at the end of this year.

Philippe, Presenter/Executive, GTT: The synergies, we have not yet closed the Danelec acquisition. And once it’s done, will work on the detail of the synergies we are expecting and we are going to communicate that to you as quickly as possible after closing.

Guillaire Melody, Analyst, Morgan Stanley: Okay. You.

Moderator, GTT: So we have our next question coming from the call. Operator, can you please announce the next question?

Call Operator: The next question is from Richard Dawson of Berenberg. Just a follow-up there on the Danonec acquisition. Do you have any clarity on how it will be financed? I think last time we spoke, it was still being decided whether it be cash or whether it would be some element of debt. And then on the Elagen strategy, when you look to the future and you look at the sort of high powered electrolyzers which you’re going to develop, when do you think that can potentially become profitable?

Is this more sort of a 2,030 story? Or can we start to see some profits maybe this side of 02/1930? You.

Thierry, Financial Executive, GTT: I will take the first one, Philippe. Yes, regarding the acquisition of Danonec, the price is 194,000,000 And we have a simple debt with a bank for €120,000,000 and the West €74,000,000 will be financed with our cash.

Philippe, Presenter/Executive, GTT: On Elogen and the timing of the recovery, we can see that there is a demand now for these large power full electrolyzers. And we think that this demand will keep on increasing over the next years as in particular, there is a need for e fuels. You can see that in the aviation industry, but you can begin to see that also through regulations in the maritime industry. So we think that it will increase. We want to really target this upper end of the market with, once more, at least balanced activity in this significantly reduced scope.

Next question?

Moderator, GTT: Operator, can you take the last question from the call?

Call Operator: The next question is from Jean Francois Grengan of ODDO. Please go ahead.

Thierry Vallo, VP Innovation Group, GTT0: Good morning. Jean Francois, Jean Francois speaking from ODDO BHF. Two questions. I just want to come back on the Danelac acquisition. So you have a view regarding the closing for the acquisitions.

And do you expect to include one part in Danelac during the second half or next year? The second question was on Elogein. So after the losses at minus EUR 9,000,000 EBITDA this for the first half, what do you expect do you expect to reduce this level during the second half of next year? Thank you.

Philippe, Presenter/Executive, GTT: On Danelec, yes, we expect a closing very soon. And we are going to obviously add the figures on the period since we’ve acquired Danilec to our figures. So that will be done most certainly in the second part and quite likely at the occasion of our communication for the third quarter of this year. On Elegant, I will leave Thierry to answer to you.

Thierry, Financial Executive, GTT: Yes. Jean Francois, you know that we do not provide any individual guidance per activity. But we can say that last year, the EBITDA level was minus EUR 33,000,000. We expect to reduce drastically these losses in 2025 and 2026, definitely.

Moderator, GTT: Do we have any last questions from the room? If not, then Philippe, I hand over back to you.

Philippe, Presenter/Executive, GTT: I would like to thank you very much to have joined us for this occasion. We are pretty happy and also proud to have delivered such results in this context, which is both complicated and complex and also quite promising. So let’s meet together very soon. Thank you very much. Have a good day.

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