Dürr AG — Call Transcript 2025

Welcome to the Dürr conference call for the third quarter of 2025, followed by a Q&A session. Let me now turn the floor over to your host, Mathias Christen. Thank you very much, and welcome to today's call, ladies and gentlemen. The corresponding presentation is available on our website, and I assume you have it in front of you. Our CEO, Jochen Weyrauch, will start on page five before Dietmar Heinrich, as CFO, will take you through the financials. Jochen, please go ahead. Thank you, Mathias, and good afternoon to all participants on the call. As our main focus is on profitability, I would like to start with pointing out the high earnings level in Q3. The EBIT margin before extraordinaries increased to 6.6%, which is almost two percentage points more than last year based on earnings growth in all of our three divisions. In the year-to-date, the margin amounted to 4.9%, which means that after three quarters, we're almost at the midpoint of the full-year guidance. Order intake continued to be impacted by heightened macro uncertainty caused by geopolitical and trade conflicts. However, we expect Q4 to be much better. Sales accelerated in Q3 after the moderate first half and should gain more traction in Q4. Free cash flow continued to be strong in Q3, bringing the year-to-date figure to a high level of EUR 85 million. The recent months were also marked by pushing ahead with our sustainable automation strategy. We successfully closed the sale of Environmental Technology and thus completed the process of turning Dürr into a lean company with only three instead of five divisions. At the same time, we began to streamline our administration, aiming at cost savings of EUR 50 million. The guidance given in March and partly revised in July is being conferred. Let's turn to page six. Regarding the 29% drop in order intake in the first nine months, please keep in mind that last year's figure was extremely high due to a unique EUR 500 million contract and further large orders. Sales were slightly lower than last year. We saw sequential improvements in industrial automation and woodworking in Q3. Automotive should benefit from an accelerated execution of large projects in Q4. I already touched the positive trend in operating EBIT. With regards to earnings after tax, please note that this position is burdened by the EUR 120 million goodwill impairment in Q2, whereas last year's figure included a EUR 19 million book gain from the sale of Argamco. Adjusted for both special effects, net income was up a good 50% this year. Slide seven shows the same key figures for the group as a whole, still including the discontinued environmental technology business. Page eight shows our quarterly order intake. After a decent start to the year, the effects from the high level of investment uncertainty in Q2 and Q3 are plain to see. However, there were some positive aspects in Q3. Industrial automation recorded appreciably higher order intake than in Q2, and in general, I would like to emphasize that despite the macro turmoil, customers are not paralyzed. Many of them are pushing ahead with large investment projects, and the pipeline looks solid. This is true, for example, for strategic projects in the automotive industry, but also for Homag's timber house construction business. Q4 has the potential for several large orders if our customers stick to their time. Let's move to regional order intake on page nine. New orders in Germany dropped sharply as last year's figure was boosted by the huge EUR 500 million contract. The increase in Asia without China was driven by India and Saudi Arabia, which has become a very attractive market for Dürr. Next one is the automotive division on page 11. Q3 order intake was marked by the absence of large orders, but this does not mean that there are no such projects being planned. It's rather a characteristic timing issue of our plant engineering business. There are quarters with no large orders, and there are quarters with several big-ticket orders placed all at once. The EBIT margin before extraordinaries exceeded last year's high levels in Q3 and in the year-to-date, based on the good margin quality of the order backlog. Revenues were up sequentially in Q3 and should further accelerate in Q4 as the execution of large orders is speeding up after customer-induced delays in the first half. Page 12, please. Industrial automation saw good Q3 with order intake and sales clearly exceeding low Q2 levels and returning to the encouraging Q1 levels. BBS automation picked up with continued strong medtech business and improvements in the auto business. The EBIT margin before extraordinaries almost doubled year-over-year and clearly exceeded the poor Q2 level, spurred by volume effects and a recovery in service business. Please note that for nine months' figures, there is limited comparability as last year's figures still included the Argamco group that was sold on July 1st, 2024. Reported EBIT was burdened by the EUR 120 million impairment in Q2. As the battery business has been suffering from poor market conditions, we initiated restructuring in Q3 to lower fixed costs. Slide 13 is on woodworking. The division has implemented a number of self-help measures and thus successfully strengthened earnings resilience. This is testified by the fact that the operating EBIT margin increased by almost 2 percentage points on slightly declining sales in the year-to-date. Order intake was impacted by the tariff uncertainties causing additional investment restraint in the furniture industry. As of now, the exact timing for market recovery is hard to predict. This is why Homag's improved earnings resilience is so important. Looking at the timber house construction business, the outlook is brighter as we see an increase in demand and good opportunities for large orders, in part already in Q4. Slide 14 gives an overview on environmental technology. As this business was effectively sold two weeks ago, there is no need to comment on the figures. Next one is slide 15. Service sales recovered in Q3, beating the Q2 level by 14%. Under the impression of the tariff chaos, many customers immediately cut service spending in Q2. It is good news that there was sort of normalization already in Q3. Now it is time to hand over to my colleague Dietmar Heinrich, who will explain the financials. Thank you, Jochen, and a warm welcome to everybody also from my side. Let me start with slide 17 and our key financial indicators. As Jochen has already touched a couple of them, I will limit myself to gross profit and net income. We managed to increase gross profit by 5% despite slightly lower sales. This was mainly an effect of rising margins in the equipment business due to the value before volume strategy, as well as capacity adjustments and lower extraordinary expenses. Net loss in the nine-month period was marked by the goodwill impairment in Q2. In Q3, net income stood at EUR 26 million versus EUR 21 million one year ago. However, last year's figure included a EUR 19 million extraordinary book gain from the Argamco sale. Adjusted for this, net income was up by almost 50% in Q3 2025. Slide 18 is on sales. In Q3, we came close to the prior year figure and exceeded this year's low Q2 level. The latter was mainly based on sequential improvements in industrial automation and woodworking. Automotive is expected to speed up revenue recognition in Q4, which in terms of sales is usually the strongest quarter. On slide 19, you can see the strong margin performance in Q3, which was supported by all divisions, with automotive achieving an outstanding figure of 8.7%. The EBIT margin before extraordinaries for the first nine months increased to 4.9% and clearly reached the full-year target corridor of 4.5%-5.5%. In terms of absolute EBIT before extraordinaries, Q3 was by far the strongest quarter, not only in 2025 but also compared to last year. In the first nine months of 2025, we saw an increase of 9% based on the higher gross profit. Overhead costs were up 2.6%, mainly due to higher R&D costs. Slide 20 shows that after a strong second quarter, free cash flow was clearly positive also in Q3 and climbed to EUR 85 million in the year-to-date. The main driver for this was lower CapEx spending. Please note that EBIT and DA were marked by the impairment in Q2. Our guidance for free cash flow is EUR 0-EUR 50 million. This implies a negative figure actually in Q4. If you ask me if this will really happen, my answer is we stay on the conservative side as free cash flow is difficult to predict in our business, but I can't rule out the possibility that free cash flow might develop a bit better than guided. Slide 21 is on net working capital. Compared to the end of 2024, there was a 16% decline and an improvement to 31 days working capital. Positive effects resulted from well-managed contract assets and considerable prepayments that are reflected in higher trade liabilities. These two effects overcompensated the temporary rise in trade receivables. Net debt shown on page 22 was stable at a level of EUR 480 million in 2025. In Q1, liquidity was reduced by EUR 97 million payment for the acquisition of 2.5 million Homag shares after our cash settlement offer had ended due to a final court decision. Net debt will strongly decline as of December 31 as a consequence of the gross proceeds of EUR 290 million-EUR 310 million from the environmental technology transaction that was closed on October 31. Let's look to page 23 and our funding situation. The funding situation is comfortable, and it will additionally benefit from the environmental technology proceeds, which are not yet reflected on the chart. The maturity profile is also favorable. We repaid Schuldschein tranches of EUR 55 million this year. The next maturity will be the EUR 150 million convertible in January 2026. So far from my side, I'm now passing back the word to Jochen, who will continue on page 25. Thank you, Dietmar. I would like to briefly comment on the sale of our environmental technology business. My personal judgment is that we were able to conclude a very good deal for Dürr and its investors, but also for the environmental business that will benefit from better growth perspectives. Enterprise value and proceeds clearly met our targets. We will use the proceeds to further strengthen the balance sheet and bring down net debt to presumably less than half of the pre-deal level. Please note that the EUR 290 million-EUR 310 million are gross proceeds after having acquired the 25% reinvestment share and before tax payments that will be mainly due in 2026. We anticipate a book gain of EUR 160 million-EUR 190 million after taxes, which is at the higher end of expectations. Moreover, the transaction was a major strategic step to finish Dürr's transformation into a lean group with a clear focus on highly automated and sustainable production processes for our customers. Slide 26 visualizes our transformation. Within not more than one and a half years, we divested the non-core businesses of Argamco and environmental technology, consolidated our automotive business in one powerful division, integrated the automation business under the BBS brand, and reduced the number of divisions from five to three. The new Dürr Group acts under the motto of sustainable automation, with automation as a joint technology platform and further synergies, for example, bundled purchasing, cross-selling in the auto sector, shared services, and business locations, as well as best practice processes in order execution. On top, we are more focused and easier to understand for our investors and analysts with only three divisions. Page 27 shows the result of our transformation process. This structure is the right setup for the coming years. We are not planning any larger M&A transactions, but we'll put the main focus on further improving efficiency. Our target is an EBIT margin before extraordinaries of 8%. Even though we are not yet there, we have already done a lot of homework. The automotive division reached its mid-cycle margin target of 8% last year and is set to repeat this in 2025. Woodworking has strengthened its earning resilience and will return to an 8%+ margin under normal market conditions. In 2026 and beyond, we will put special attention on improving the margin of industrial automation. There's still work to do. Nonetheless, I'm fully convinced of the potential of our automation business, especially as we continue to expand the well-performing activities in the medtech sector. Slide 28, please. A consequence of our lean group structure is the planned resizing of the administrative sector. As outlined in July, we are planning to cut 500 jobs to make admin structures leaner and more efficient. This goes in line with empowering the three divisions and giving them more entrepreneurial leeway. We are targeting for cost savings of EUR 50 million, which requires provisions of EUR 40 million-EUR 50 million in Q4. We have already started to reduce the admin workforce abroad and entered into negotiations with the Works Council in Germany. Page 30 brings us to the outlook. We are confirming the target set in March and partly revised end of July. The order intake guidance requires a strong Q4. There is still work ahead of us, but I'm very confident that we will be successful as there is a good level of investment activity on our customer side. Regarding sales, we are confident to reach the lower end of the EUR 4.2 billion-EUR 4.6 billion target corridor, backed by a strong Q4, especially in automotive. The EBIT margin before extraordinaries almost reached the guidance midpoint after nine months, so it's fair to assume that last year's level should be exceeded. Regarding free cash flow, Dietmar found the right words before. We maintain a conservative approach, even though there is an opportunity to beat the upper end of the guidance. Given the book profit from the environmental technology sale and the good earnings performance since Q3, we are confident regarding the net income guidance of EUR 120 million-EUR 170 million. The target for net financial debt is absolutely realistic given the environmental technology proceeds. Slide 31 is a rather technical one, designed to help you to follow the guidance. Especially the information on the influencing factors for net income may be helpful. The divisional guidance on page 32 is unchanged compared to August 7th, when we made some adjustments marked in blue. We are confirming the divisional targets, especially the improved earnings performance in Q3 is a sound argument to be confident. Slide 34 brings me to the summary. The sale of the environmental technology business was a milestone, not only because it was a financial success, but also because it represents the final element of our transformation. Dürr has become a lean engineering group. Our leading competence for highly automated and sustainable production processes is the distinguishing feature that sets us apart from the competition. We are confirming our guidance and expect a high order intake in Q4, provided that there will be no customer-induced delays in order placement. The good performance in Q3 underscores our earnings resilience and our ability to improve margins even in a challenging environment. Free cash flow and net financial debt should meet the targets set in our guidance, maybe even more. We continue to improve earnings resilience and margins with the planned adjustments in administration, targeting for annual cost savings of EUR 50 million. After having reshaped the group, we will direct our focus even more on improving efficiency in 2026. Ladies and gentlemen, thank you for listening. Dietmar and I will now be happy to answer your questions. Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to withdraw a question, press three and star on your telephone keypad. The first question is from Sven Weier, UBS. Please go ahead with your question. Yep, good afternoon, gentlemen. Thanks for taking my question. I just have one regarding the order intake and what you said on Q4. I mean, with a view to the group guidance, is it also fair to assume that it's more likely that you will end up at the lower end of the range? I was also curious how you see that on an individual divisional level. Thank you. Thank you, Sven, for asking the question. Yep, that's fair to assume in terms of rather the lower range of the guidance. And from a divisional perspective, we see some momentum in Homag, but the bigger part at this point is assumed to come from automotive. Homag is also going to be more towards the EUR 1.3 billion level, I guess. Let's see. Or slightly more? I would guess rather somewhat above, but let's see. Okay, understood. Thank you. Thank you. The next question is from Nikita Gupta at Deutsche Bank. Please go ahead with your question. Hi, good afternoon. Thank you for taking my questions. First, congratulations on the strong profitability we saw in this quarter. Is this a run rate we can expect for the next quarters, or what is it dependent on? My second question is on any comments on dividend already. Should we expect a payout ratio of roughly 40%? The third one, when we think about 2026, do you see any improving KPIs for Homag? Thank you. Thank you, Nikita, for your questions. Let me start with the run rate for the remainder of the year. If you make the math with the midpoint of the guidance, which we've now reached, we would expect Q4 probably not to be exactly at the Q3 levels, but at least to a point that it, I shouldn't say easily, but that it well confirms what we've guided. On the dividend, no, we have not yet discussed anything, but I would say we are probably known for some sort of continuity, whatever that means at the end of the day. And then your last question was on Homag, I think, for next year. Let's see how things develop. Homag has made good steps this year, and you can clearly see, I mean, Homag is up almost 2% compared to last year, that we've made our homework in terms of efficiency and the effect of our restructuring program kicks in. Next year, to some extent, really depends on the outcome for the remainder of the year. Being at this year's level would already, I would say, would be a good starting point, and let's see what's possible. Okay, thank you. Thank you. The next question is from Adrian Pehl, ODDO BHF. Please go ahead with your question. Yes, hi gentlemen. Good afternoon, actually. A couple of questions. First of all, on Homag again, actually phrasing it a little bit differently, since in the past we have been talking a little bit about the quality of discussions that you had with your clients, and I was just wondering if there was some sort of incremental change on that, hopefully towards improvement, but happy to take any color you might share. The second one is on, as you were referring in your presentation to probably not pursuing bigger M&A transactions, nevertheless wanted to hear thoughts on the proceeds that you will be collecting from the sale of the environmental business. Will you pay down debt with the money, or how should we think of the respective capital allocation here? Thirdly, before I might have a follow-up on the phasing of the cash out on the restructuring, maybe you could remind us how this will unfold starting Q4 going into 2026. That would be helpful. Okay, thank you for your questions. I will answer on Homag, and Dietmar will probably take over for M&A proceeds and the phase-out of the restructuring. On Homag, yeah, obviously I've been burning my tongue a few times on this topic, always looking at when things would become better. It's twofold. It's very difficult to guess action from the discussions I have with customers, so we're careful when it comes to furniture at the moment. Yeah, I don't think there is more room to go down, but still, you don't see any real recovery in the numbers. I think there is with some customers in Europe, maybe discussions become a bit more positive. On the other hand, we see some uncertainty in the U.S. from customers who now, of course, have to suffer from tariffs. How this will play out in the end and when really there will be momentum upwards, downwards, I do not expect any. Hard to say. Where we see definitely activity is around wooden houses and timber processing. There we really are discussing with a number of customers on significant projects, and there I am quite optimistic. Okay, Adrian, so I will pick up as Jochen already mentioned the other two questions in regard to the use of the proceeds of the environmental technology sale. We are going to use it for debt reduction. We have the maturity of the convertible bond coming up in January of next year, and we have another Schuldschein then coming up in April of next year, and we are targeting actually to repay these two debts. In regard to the cash out for the restructuring, then in the administration area that Jochen explained, we are targeting to build up the provisions in the fourth quarter of this year. We are already getting closer to the negotiation results with the Works Council, and so I'm confident that we will build up the related provisions in Germany, but also outside of Germany until the end of this year. In regard to the cash out, I do not expect the real cash out to happen within this year. The majority will for sure be done in 2026, but depending on the individual agreements and the impacts that we are having in there, it can also be that some portion of the payout still will be done in 2027. We can provide more information in regard to this when we are really having the progress in conjunction with getting the agreements with the individual employees who are targeted to leave the company. Right, that's been helpful. Last question from my side again on automotive, just also probably a bit more color just to what you said already. I mean, I took obviously and the order intake in Q3 was pretty low, but I want to hear thoughts. Is that just a function of shifts in projects that on the other hand are very likely to materialize anytime soon? Because I'm actually asking you, referred in the press release to, I think that was a half sentence saying that if these products are then finally being signed, so there's still a high level of uncertainty obviously, and there might be some shift into 2026, but anything on color, clients, regions, investment behavior would be helpful. Thank you. Yeah, thanks for the add-on question. We have a few, a bit more, yeah, some large orders that are very much progressed in terms of the negotiations. Still not signed, but it gives us the confidence that we have expressed in our comments before. On the regions, I ask for your understanding that it's also from a confidentiality point of view and that the market is quite sensitive at the moment. I would rather comment on that we have booked the orders. All right, thank you. Thank you. The next question is from Philippe Lorrain, Bernstein. Please go ahead with your question. Yes, thank you very much for taking my question. I wanted to bounce back a little bit on automotive. From today's point of view, would that be fair to assume that the kind of order intake level that we could expect for Q4 kind of matches the one that we've seen in Q1? It very much would match, yes, what we had in Q1. Okay, perfect. Then a second question to specify a little bit more what you were saying on the adjusted EBIT margin guidance. I take it that you were saying, okay, you are very confident with the midpoint of the range, but the midpoint of the range at 5% would imply actually like another 5% or so in Q4, if I'm not mistaken. To circle back with your comment, like saying, okay, if we look at Q3 and maybe we assume that it's not exactly the same level of margin that we can generate for Q4, that would imply actually that we land well within, let's say, the upper half of the margin range. Is that fair to see it that way? Yeah, maybe Philippe, I take this question in that regard. As you know, we are always a bit conservative, and projects have sometimes their own dynamics. So we stay on the conservative side, and then we stay with what Jochen explained before, staying at a very obvious stick to staying with the guidance. We are in the midrange of the guidance. We feel comfortable in that regard. In case we perform better, of course, that will be the case, but I do not want to raise the bar right now. That would not be reasonable. Yeah, okay, perfect. My last question again on, it's probably a bit more on automotive and to some extent also on Homag, but now with the trend that we've seen that Q2 and Q3 were slightly weaker in terms of order intake, how should we expect actually sales to evolve in the coming quarters? I'm trying to extrapolate a little bit further than just Q4. Yeah, especially on automotive, we still have a very good backlog. The orders we're now fighting for are rather further down in 2026. There we have a nice buffer independent of whether we get one of the bigger orders a quarter earlier or later. Homag, we'll have to see. I mean, you can see it in the numbers. The order backlog has somewhat come down. This is even more visible on the furniture side. We will have some measures in place already for Q1, which should help. I mean, we've seen a similar thing this year. We're working, I mean, we're working from, how would we say, hand to mouth. That's why I said expecting something similar to start with for next year compared to this year, I think is a fair assumption. Okay, but on a full year basis, probably still continue on an improvement trend margin-wise, no? That would be our aim, definitely, but let's see how the market helps us or doesn't help us. Okay, perfect. Thank you very much. Thank you, Philippe. At the moment, there seem to be no further questions. If you would like to ask a question, please press nine and star on your telephone keypad. The next question is from Holger Schmidt, DZ Bank. Please go ahead with your question. Yeah, hi everyone. Good afternoon. I have just one question on the battery side. Could you give us an update on your battery business? I mean, you are making some capacity adjustments at the moment. Do you see any kind of improvement or potentially deterioration of the business? Yeah, thank you. Good question, Holger. No, it's tough to be quite fair at the moment. That's why we're restructuring. We see a challenging market. We still believe that there will be some activities coming back. There's a few smaller orders, but nowhere near to what we've been planning for. This is why we make significant capacity adjustments, and this is where we obviously see some earning issues at the moment. We are adapting the team. It's not too huge anyways, and then see what we can get out of it. It definitely is an issue at the moment, and that's why we already announced significant restructuring. Let's see how it goes forward. Fortunately, it's not big tickets in total. Okay, thank you. Let's assume the market would remain weak at the current level. Would you also consider to step out of this business? We don't do that right now. Let's see how things develop. If you listen to what is said in public, there is the confirmation that especially in Europe, we need some sort of a supply chain in the battery business. There are some projects, and actually we are hopeful also to collect a few orders, at least one or two double-digit. We will, in a way, deal with what we have. Hard to rule anything out, but at the moment, that's not our plan. Okay, understood. Thank you very much. Thank you. The next question is from Elisabeth Weisenhorn, Porteous Investment. Please go with your question. Hello. Mr. Weyrauch, you very often go to China, as I noticed, and I would like to know what you think about the competition there. I read and see pictures about the automation degree that is going on there and how competitive it is. Yeah, thank you for the question. Yeah, indeed, I go to China quite often because it's important business for us. China is very competitive in any industry. In automation, definitely, there is a number of very strong players, obviously including us, because the majority of our employees in production automation are sitting in China, mainly in Suzhou and Kunshan, and we're playing a significant role. That is why it is important to play in China to learn what's happening there, but the dynamics are incredible. I can really only say. That is why, again, it is important to be there, to be successful, and we are successful in our automation business with our strong local team. You have to continuously develop, be efficient, be cost-driven. This is why the business that we run and the competition we play with in China makes us also quite strong for the business outside of China. I hope that helps a little bit. That is all I can say at this point, and I am always impressed. Okay, then we come to the last question. It's a follow-up from Philippe Lorraine, Bernstein. Please go with your question. Yes, thanks. Just wanted to follow up with two little more questions on automotive. The first one was just to make sure I understood you saying your, let's say, confidence with regard to the statement speaking about an improvement in Q4 or intake trends is based more on the fact that you see orders being nearly assigned. How about orders that you've signed maybe at the beginning of Q4? How has been current trading, so to say? The second question would be, and perhaps it ties also together a little bit with all of that generally, but I remember you were speaking about a bit of a slowdown in execution this year. However, it seems to pick up, especially with regard to Q4. Would you say that all these issues are now behind us, or has there been a structural shift somewhere? Thanks, Philippe. Yeah, on auto and bookings in Q4, in general, our pipeline overall does not look very bad, I must say. Actually, let me turn my words around. It looks quite solid. That is not only Q4. We are always watching the next 12, 18 months, and this is where I can say it is solid. Is it fantastic? Probably not, but it is very solid, and there are enough projects out there to feed the organization at this point. When it comes now to Q4, there are two to three larger orders that would turn the needle. On most of them, negotiations have progressed quite well. Based on that, let us see how things turn out. Does that help a bit, Philippe? Yes, perfect. I understand it's really, yeah, something that needs to be signed. With regard to the question on the pace of execution on sales? Sorry, yeah, I missed that one. I would say we are running a relatively normal pace at this point. There were a few orders or a few projects where there were some modifications at customer ends. There were a few delays on progress of buildings, which, by the way, can happen always in that business. What we are currently seeing is, I would say, normal project execution. Okay, perfect. Thank you very much. Thank you. As we have no further questions from the audience, I would like to hand the floor back over for closing remarks. Thank you, Heike. Thank you, ladies and gentlemen, for your questions and the discussion in today's call. If there are follow-ups, please don't hesitate to contact me. We are looking forward to meeting some of you on the investor conferences during the next few weeks. Take care and have a wonderful end of the year season. Bye-bye from our side. The recording has been stopped. Your conference call has come to an end. Thank you for attending. Goodbye.

Speaker 7: Welcome to the Dürr conference call for the third quarter of 2025, followed by a Q&A session. Let me now turn the floor over to your host, Mathias Christen. Welcome to the Dürr conference call for the third quarter of 2025, followed by a Q&A session. welcome to the dürr conference call for the third quarter of 2025 followed by a q&a session Let me now turn the floor over to your host, Mathias Christen. let me now turn the floor over to your host mathias christen

Speaker 6: Thank you very much, and welcome to today's call, ladies and gentlemen. The corresponding presentation is available on our website, and I assume you have it in front of you. Our CEO, Jochen Weyrauch, will start on page five before Dietmar Heinrich, as CFO, will take you through the financials. Jochen, please go ahead. Thank you very much, and welcome to today's call, ladies and gentlemen. thank you very much and welcome to today's call ladies and gentlemen The corresponding presentation is available on our website, and I assume you have it in front of you. the corresponding presentation is available on our website and i assume you have it in front of you Our CEO, Jochen Weyrauch, will start on page five before Dietmar Heinrich, as CFO, will take you through the financials. our ceo jochen weyrauch will start on page five before dietmar heinrich as cfo will take you through the financials Jochen, please go ahead. jochen please go ahead

Speaker 8: Thank you, Mathias, and good afternoon to all participants on the call. As our main focus is on profitability, I would like to start with pointing out the high earnings level in Q3. The EBIT margin before extraordinaries increased to 6.6%, which is almost two percentage points more than last year based on earnings growth in all of our three divisions. In the year-to-date, the margin amounted to 4.9%, which means that after three quarters, we're almost at the midpoint of the full-year guidance. Order intake continued to be impacted by heightened macro uncertainty caused by geopolitical and trade conflicts. However, we expect Q4 to be much better. Sales accelerated in Q3 after the moderate first half and should gain more traction in Q4. Free cash flow continued to be strong in Q3, bringing the year-to-date figure to a high level of EUR 85 million. Thank you, Mathias, and good afternoon to all participants on the call. thank you mathias and good afternoon to all participants on the call As our main focus is on profitability, I would like to start with pointing out the high earnings level in Q3. as our main focus is on profitability i would like to start with pointing out the high earnings level in q3 The EBIT margin before extraordinaries increased to 6.6%, which is almost two percentage points more than last year based on earnings growth in all of our three divisions. the ebit margin before extraordinaries increased to 6.6% which is almost two percentage points more than last year based on earnings growth in all of our three divisions In the year- to- date, the margin amounted to 4.9%, which means that after three quarters, we're almost at the midpoint of the full-year guidance. in the year- to- date the margin amounted to 4.9% which means that after three quarters we're almost at the midpoint of the full-year guidance Order intake continued to be impacted by heightened macro uncertainty caused by geopolitical and trade conflicts. order intake continued to be impacted by heightened macro uncertainty caused by geopolitical and trade conflicts However, we expect Q4 to be much better. however we expect q4 to be much better Sales accelerated in Q3 after the moderate first half and should gain more traction in Q4. sales accelerated in q3 after the moderate first half and should gain more traction in q4 Free cash flow continued to be strong in Q3, bringing the year-to-date figure to a high level of EUR 85 million. free cash flow continued to be strong in q3 bringing the year-to-date figure to a high level of eur 85 million The recent months were also marked by pushing ahead with our sustainable automation strategy. We successfully closed the sale of Environmental Technology and thus completed the process of turning Dürr into a lean company with only three instead of five divisions. At the same time, we began to streamline our administration, aiming at cost savings of EUR 50 million. The guidance given in March and partly revised in July is being conferred. Let's turn to page six. Regarding the 29% drop in order intake in the first nine months, please keep in mind that last year's figure was extremely high due to a unique EUR 500 million contract and further large orders. Sales were slightly lower than last year. We saw sequential improvements in industrial automation and woodworking in Q3. Automotive should benefit from an accelerated execution of large projects in Q4. I already touched the positive trend in operating EBIT. The recent months were also marked by pushing ahead with our sustainable automation strategy. the recent months were also marked by pushing ahead with our sustainable automation strategy We successfully closed the sale of Environmental Technology and thus completed the process of turning Dürr into a lean company with only three instead of five divisions. we successfully closed the sale of environmental technology and thus completed the process of turning dürr into a lean company with only three instead of five divisions At the same time, we began to streamline our administration, aiming at cost savings of EUR 50 million. at the same time we began to streamline our administration aiming at cost savings of eur 50 million The guidance given in March and partly revised in July is being conferred. the guidance given in march and partly revised in july is being conferred Let's turn to page six. let's turn to page six Regarding the 29% drop in order intake in the first nine months, please keep in mind that last year's figure was extremely high due to a unique EUR 500 million contract and further large orders. regarding the 29% drop in order intake in the first nine months please keep in mind that last year's figure was extremely high due to a unique eur 500 million contract and further large orders Sales were slightly lower than last year. sales were slightly lower than last year We saw sequential improvements in industrial automation and woodworking in Q3. we saw sequential improvements in industrial automation and woodworking in q3 Automotive should benefit from an accelerated execution of large projects in Q4. automotive should benefit from an accelerated execution of large projects in q4 I already touched the positive trend in operating EBIT. i already touched the positive trend in operating ebit With regards to earnings after tax, please note that this position is burdened by the EUR 120 million goodwill impairment in Q2, whereas last year's figure included a EUR 19 million book gain from the sale of Argamco. Adjusted for both special effects, net income was up a good 50% this year. Slide seven shows the same key figures for the group as a whole, still including the discontinued environmental technology business. Page eight shows our quarterly order intake. After a decent start to the year, the effects from the high level of investment uncertainty in Q2 and Q3 are plain to see. However, there were some positive aspects in Q3. Industrial automation recorded appreciably higher order intake than in Q2, and in general, I would like to emphasize that despite the macro turmoil, customers are not paralyzed. With regards to earnings after tax, please note that this position is burdened by the EUR 120 million goodwill impairment in Q2, whereas last year's figure included a EUR 19 million book gain from the sale of Argamco. with regards to earnings after tax please note that this position is burdened by the eur 120 million goodwill impairment in q2 whereas last year's figure included a eur 19 million book gain from the sale of argamco Adjusted for both special effects, net income was up a good 50% this year. adjusted for both special effects net income was up a good 50% this year Slide seven shows the same key figures for the group as a whole, still including the discontinued environmental technology business. slide seven shows the same key figures for the group as a whole still including the discontinued environmental technology business Page eight shows our quarterly order intake. page eight shows our quarterly order intake After a decent start to the year, the effects from the high level of investment uncertainty in Q2 and Q3 are plain to see. after a decent start to the year the effects from the high level of investment uncertainty in q2 and q3 are plain to see However, there were some positive aspects in Q3. however there were some positive aspects in q3 Industrial automation recorded appreciably higher order intake than in Q2, and in general, I would like to emphasize that despite the macro turmoil, customers are not paralyzed. industrial automation recorded appreciably higher order intake than in q2 and in general i would like to emphasize that despite the macro turmoil customers are not paralyzed Many of them are pushing ahead with large investment projects, and the pipeline looks solid. This is true, for example, for strategic projects in the automotive industry, but also for Homag's timber house construction business. Q4 has the potential for several large orders if our customers stick to their time. Let's move to regional order intake on page nine. New orders in Germany dropped sharply as last year's figure was boosted by the huge EUR 500 million contract. The increase in Asia without China was driven by India and Saudi Arabia, which has become a very attractive market for Dürr. Next one is the automotive division on page 11. Q3 order intake was marked by the absence of large orders, but this does not mean that there are no such projects being planned. It's rather a characteristic timing issue of our plant engineering business. Many of them are pushing ahead with large investment projects, and the pipeline looks solid. many of them are pushing ahead with large investment projects and the pipeline looks solid This is true, for example, for strategic projects in the automotive industry, but also for Homag's timber house construction business. this is true for example for strategic projects in the automotive industry but also for homag's timber house construction business Q4 has the potential for several large orders if our customers stick to their time. q4 has the potential for several large orders if our customers stick to their time Let's move to regional order intake on page nine. let's move to regional order intake on page nine New orders in Germany dropped sharply as last year's figure was boosted by the huge EUR 500 million contract. new orders in germany dropped sharply as last year's figure was boosted by the huge eur 500 million contract The increase in Asia without China was driven by India and Saudi Arabia, which has become a very attractive market for Dürr. the increase in asia without china was driven by india and saudi arabia which has become a very attractive market for dürr Next one is the automotive division on page 11. next one is the automotive division on page 11 Q3 order intake was marked by the absence of large orders, but this does not mean that there are no such projects being planned. q3 order intake was marked by the absence of large orders but this does not mean that there are no such projects being planned It's rather a characteristic timing issue of our plant engineering business. it's rather a characteristic timing issue of our plant engineering business There are quarters with no large orders, and there are quarters with several big-ticket orders placed all at once. The EBIT margin before extraordinaries exceeded last year's high levels in Q3 and in the year-to-date, based on the good margin quality of the order backlog. Revenues were up sequentially in Q3 and should further accelerate in Q4 as the execution of large orders is speeding up after customer-induced delays in the first half. Page 12, please. Industrial automation saw good Q3 with order intake and sales clearly exceeding low Q2 levels and returning to the encouraging Q1 levels. BBS automation picked up with continued strong medtech business and improvements in the auto business. The EBIT margin before extraordinaries almost doubled year-over-year and clearly exceeded the poor Q2 level, spurred by volume effects and a recovery in service business. There are quarters with no large orders, and there are quarters with several big-ticket orders placed all at once. there are quarters with no large orders and there are quarters with several big-ticket orders placed all at once The EBIT margin before extraordinaries exceeded last year's high levels in Q3 and in the year- to- date, based on the good margin quality of the order backlog. the ebit margin before extraordinaries exceeded last year's high levels in q3 and in the year- to- date based on the good margin quality of the order backlog Revenues were up sequentially in Q3 and should further accelerate in Q4 as the execution of large orders is speeding up after customer-induced delays in the first half. revenues were up sequentially in q3 and should further accelerate in q4 as the execution of large orders is speeding up after customer-induced delays in the first half Page 12, please. page 12 please Industrial automation saw good Q3 with order intake and sales clearly exceeding low Q2 levels and returning to the encouraging Q1 levels. industrial automation saw good q3 with order intake and sales clearly exceeding low q2 levels and returning to the encouraging q1 levels BBS automation picked up with continued strong medtech business and improvements in the auto business. bbs automation picked up with continued strong medtech business and improvements in the auto business The EBIT margin before extraordinaries almost doubled year- over- year and clearly exceeded the poor Q2 level, spurred by volume effects and a recovery in service business. the ebit margin before extraordinaries almost doubled year- over- year and clearly exceeded the poor q2 level spurred by volume effects and a recovery in service business Please note that for nine months' figures, there is limited comparability as last year's figures still included the Argamco group that was sold on July 1st, 2024. Reported EBIT was burdened by the EUR 120 million impairment in Q2. As the battery business has been suffering from poor market conditions, we initiated restructuring in Q3 to lower fixed costs. Slide 13 is on woodworking. The division has implemented a number of self-help measures and thus successfully strengthened earnings resilience. This is testified by the fact that the operating EBIT margin increased by almost 2 percentage points on slightly declining sales in the year-to-date. Order intake was impacted by the tariff uncertainties causing additional investment restraint in the furniture industry. As of now, the exact timing for market recovery is hard to predict. This is why Homag's improved earnings resilience is so important. Please note that for nine months' figures, there is limited comparability as last year's figures still included the Argamco group that was sold on July 1st, 2024. please note that for nine months' figures there is limited comparability as last year's figures still included the argamco group that was sold on july 1st 2024 Reported EBIT was burdened by the EUR 120 million impairment in Q2. reported ebit was burdened by the eur 120 million impairment in q2 As the battery business has been suffering from poor market conditions, we initiated restructuring in Q3 to lower fixed costs. as the battery business has been suffering from poor market conditions we initiated restructuring in q3 to lower fixed costs Slide 13 is on woodworking. slide 13 is on woodworking The division has implemented a number of self-help measures and thus successfully strengthened earnings resilience. the division has implemented a number of self-help measures and thus successfully strengthened earnings resilience This is testified by the fact that the operating EBIT margin increased by almost 2 percentage points on slightly declining sales in the year- to- date. this is testified by the fact that the operating ebit margin increased by almost 2 percentage points on slightly declining sales in the year- to- date Order intake was impacted by the tariff uncertainties causing additional investment restraint in the furniture industry. order intake was impacted by the tariff uncertainties causing additional investment restraint in the furniture industry As of now, the exact timing for market recovery is hard to predict. as of now the exact timing for market recovery is hard to predict This is why Homag's improved earnings resilience is so important. this is why homag's improved earnings resilience is so important Looking at the timber house construction business, the outlook is brighter as we see an increase in demand and good opportunities for large orders, in part already in Q4. Slide 14 gives an overview on environmental technology. As this business was effectively sold two weeks ago, there is no need to comment on the figures. Next one is slide 15. Service sales recovered in Q3, beating the Q2 level by 14%. Under the impression of the tariff chaos, many customers immediately cut service spending in Q2. It is good news that there was sort of normalization already in Q3. Now it is time to hand over to my colleague Dietmar Heinrich, who will explain the financials. Looking at the timber house construction business, the outlook is brighter as we see an increase in demand and good opportunities for large orders, in part already in Q4. looking at the timber house construction business the outlook is brighter as we see an increase in demand and good opportunities for large orders in part already in q4 Slide 14 gives an overview on environmental technology. slide 14 gives an overview on environmental technology As this business was effectively sold two weeks ago, there is no need to comment on the figures. as this business was effectively sold two weeks ago there is no need to comment on the figures Next one is slide 15. next one is slide 15 Service sales recovered in Q3, beating the Q2 level by 14%. service sales recovered in q3 beating the q2 level by 14% Under the impression of the tariff chaos, many customers immediately cut service spending in Q2. under the impression of the tariff chaos many customers immediately cut service spending in q2 It is good news that there was sort of normalization already in Q3. it is good news that there was sort of normalization already in q3 Now it is time to hand over to my colleague Dietmar Heinrich, who will explain the financials. now it is time to hand over to my colleague dietmar heinrich who will explain the financials

Speaker 3: Thank you, Jochen, and a warm welcome to everybody also from my side. Let me start with slide 17 and our key financial indicators. As Jochen has already touched a couple of them, I will limit myself to gross profit and net income. We managed to increase gross profit by 5% despite slightly lower sales. This was mainly an effect of rising margins in the equipment business due to the value before volume strategy, as well as capacity adjustments and lower extraordinary expenses. Net loss in the nine-month period was marked by the goodwill impairment in Q2. In Q3, net income stood at EUR 26 million versus EUR 21 million one year ago. However, last year's figure included a EUR 19 million extraordinary book gain from the Argamco sale. Adjusted for this, net income was up by almost 50% in Q3 2025. Slide 18 is on sales. Thank you, Jochen, and a warm welcome to everybody also from my side. thank you jochen and a warm welcome to everybody also from my side Let me start with slide 17 and our key financial indicators. let me start with slide 17 and our key financial indicators As Jochen has already touched a couple of them, I will limit myself to gross profit and net income. as jochen has already touched a couple of them i will limit myself to gross profit and net income We managed to increase gross profit by 5% despite slightly lower sales. we managed to increase gross profit by 5% despite slightly lower sales This was mainly an effect of rising margins in the equipment business due to the value before volume strategy, as well as capacity adjustments and lower extraordinary expenses. this was mainly an effect of rising margins in the equipment business due to the value before volume strategy as well as capacity adjustments and lower extraordinary expenses Net loss in the nine-month period was marked by the goodwill impairment in Q2. net loss in the nine-month period was marked by the goodwill impairment in q2 In Q3, net income stood at EUR 26 million versus EUR 21 million one year ago. in q3 net income stood at eur 26 million versus eur 21 million one year ago However, last year's figure included a EUR 19 million extraordinary book gain from the Argamco sale. however last year's figure included a eur 19 million extraordinary book gain from the argamco sale Adjusted for this, net income was up by almost 50% in Q3 2025. adjusted for this net income was up by almost 50% in q3 2025 Slide 18 is on sales. slide 18 is on sales In Q3, we came close to the prior year figure and exceeded this year's low Q2 level. The latter was mainly based on sequential improvements in industrial automation and woodworking. Automotive is expected to speed up revenue recognition in Q4, which in terms of sales is usually the strongest quarter. On slide 19, you can see the strong margin performance in Q3, which was supported by all divisions, with automotive achieving an outstanding figure of 8.7%. The EBIT margin before extraordinaries for the first nine months increased to 4.9% and clearly reached the full-year target corridor of 4.5%-5.5%. In terms of absolute EBIT before extraordinaries, Q3 was by far the strongest quarter, not only in 2025 but also compared to last year. In the first nine months of 2025, we saw an increase of 9% based on the higher gross profit. In Q3, we came close to the prior year figure and exceeded this year's low Q2 level. in q3 we came close to the prior year figure and exceeded this year's low q2 level The latter was mainly based on sequential improvements in industrial automation and woodworking. the latter was mainly based on sequential improvements in industrial automation and woodworking Automotive is expected to speed up revenue recognition in Q4, which in terms of sales is usually the strongest quarter. automotive is expected to speed up revenue recognition in q4 which in terms of sales is usually the strongest quarter On slide 19, you can see the strong margin performance in Q3, which was supported by all divisions, with automotive achieving an outstanding figure of 8.7%. on slide 19 you can see the strong margin performance in q3 which was supported by all divisions with automotive achieving an outstanding figure of 8.7% The EBIT margin before extraordinaries for the first nine months increased to 4.9% and clearly reached the full-year target corridor of 4.5%-5.5%. the ebit margin before extraordinaries for the first nine months increased to 4.9% and clearly reached the full-year target corridor of 4.5%-5.5% In terms of absolute EBIT before extraordinaries, Q3 was by far the strongest quarter, not only in 2025 but also compared to last year. in terms of absolute ebit before extraordinaries q3 was by far the strongest quarter not only in 2025 but also compared to last year In the first nine months of 2025, we saw an increase of 9% based on the higher gross profit. in the first nine months of 2025 we saw an increase of 9% based on the higher gross profit Overhead costs were up 2.6%, mainly due to higher R&D costs. Slide 20 shows that after a strong second quarter, free cash flow was clearly positive also in Q3 and climbed to EUR 85 million in the year-to-date. The main driver for this was lower CapEx spending. Please note that EBIT and DA were marked by the impairment in Q2. Our guidance for free cash flow is EUR 0-EUR 50 million. This implies a negative figure actually in Q4. If you ask me if this will really happen, my answer is we stay on the conservative side as free cash flow is difficult to predict in our business, but I can't rule out the possibility that free cash flow might develop a bit better than guided. Slide 21 is on net working capital. Overhead costs were up 2.6%, mainly due to higher R&D costs. overhead costs were up 2.6% mainly due to higher r&d costs Slide 20 shows that after a strong second quarter, free cash flow was clearly positive also in Q3 and climbed to EUR 85 million in the year- to- date. slide 20 shows that after a strong second quarter free cash flow was clearly positive also in q3 and climbed to eur 85 million in the year- to- date The main driver for this was lower CapEx spending. the main driver for this was lower capex spending Please note that EBIT and DA were marked by the impairment in Q2. please note that ebit and da were marked by the impairment in q2 Our guidance for free cash flow is EUR 0-EUR 50 million. our guidance for free cash flow is eur 0-eur 50 million This implies a negative figure actually in Q4. this implies a negative figure actually in q4 If you ask me if this will really happen, my answer is we stay on the conservative side as free cash flow is difficult to predict in our business, but I can't rule out the possibility that free cash flow might develop a bit better than guided. if you ask me if this will really happen my answer is we stay on the conservative side as free cash flow is difficult to predict in our business but i can't rule out the possibility that free cash flow might develop a bit better than guided Slide 21 is on net working capital. slide 21 is on net working capital Compared to the end of 2024, there was a 16% decline and an improvement to 31 days working capital. Positive effects resulted from well-managed contract assets and considerable prepayments that are reflected in higher trade liabilities. These two effects overcompensated the temporary rise in trade receivables. Net debt shown on page 22 was stable at a level of EUR 480 million in 2025. In Q1, liquidity was reduced by EUR 97 million payment for the acquisition of 2.5 million Homag shares after our cash settlement offer had ended due to a final court decision. Net debt will strongly decline as of December 31 as a consequence of the gross proceeds of EUR 290 million-EUR 310 million from the environmental technology transaction that was closed on October 31. Let's look to page 23 and our funding situation. The funding situation is comfortable, and it will additionally benefit from the environmental technology proceeds, which are not yet reflected on the chart. The maturity profile is also favorable. We repaid Schuldschein tranches of EUR 55 million this year. The next maturity will be the EUR 150 million convertible in January 2026. So far from my side, I'm now passing back the word to Jochen, who will continue on page 25. Compared to the end of 2024, there was a 16% decline and an improvement to 31 days working capital. compared to the end of 2024 there was a 16% decline and an improvement to 31 days working capital Positive effects resulted from well-managed contract assets and considerable prepayments that are reflected in higher trade liabilities. positive effects resulted from well-managed contract assets and considerable prepayments that are reflected in higher trade liabilities These two effects overcompensated the temporary rise in trade receivables. these two effects overcompensated the temporary rise in trade receivables Net debt shown on page 22 was stable at a level of EUR 480 million in 2025. net debt shown on page 22 was stable at a level of eur 480 million in 2025 In Q1, liquidity was reduced by EUR 97 million payment for the acquisition of 2.5 million Homag shares after our cash settlement offer had ended due to a final court decision. in q1 liquidity was reduced by eur 97 million payment for the acquisition of 2.5 million homag shares after our cash settlement offer had ended due to a final court decision Net debt will strongly decline as of December 31 as a consequence of the gross proceeds of EUR 290 million-EUR 310 million from the environmental technology transaction that was closed on October 31. net debt will strongly decline as of december 31 as a consequence of the gross proceeds of eur 290 million-eur 310 million from the environmental technology transaction that was closed on october 31 Let's look to page 23 and our funding situation. let's look to page 23 and our funding situation The funding situation is comfortable, and it will additionally benefit from the environmental technology proceeds, which are not yet reflected on the chart. the funding situation is comfortable and it will additionally benefit from the environmental technology proceeds which are not yet reflected on the chart The maturity profile is also favorable. the maturity profile is also favorable We repaid Schuldschein tranches of EUR 55 million this year. we repaid schuldschein tranches of eur 55 million this year The next maturity will be the EUR 150 million convertible in January 2026. the next maturity will be the eur 150 million convertible in january 2026 So far from my side, I'm now passing back the word to Jochen, who will continue on page 25. so far from my side i'm now passing back the word to jochen who will continue on page 25

Speaker 8: Thank you, Dietmar. I would like to briefly comment on the sale of our environmental technology business. My personal judgment is that we were able to conclude a very good deal for Dürr and its investors, but also for the environmental business that will benefit from better growth perspectives. Enterprise value and proceeds clearly met our targets. We will use the proceeds to further strengthen the balance sheet and bring down net debt to presumably less than half of the pre-deal level. Please note that the EUR 290 million-EUR 310 million are gross proceeds after having acquired the 25% reinvestment share and before tax payments that will be mainly due in 2026. We anticipate a book gain of EUR 160 million-EUR 190 million after taxes, which is at the higher end of expectations. Thank you, Dietmar. thank you dietmar I would like to briefly comment on the sale of our environmental technology business. i would like to briefly comment on the sale of our environmental technology business My personal judgment is that we were able to conclude a very good deal for Dürr and its investors, but also for the environmental business that will benefit from better growth perspectives. my personal judgment is that we were able to conclude a very good deal for dürr and its investors but also for the environmental business that will benefit from better growth perspectives Enterprise value and proceeds clearly met our targets. enterprise value and proceeds clearly met our targets We will use the proceeds to further strengthen the balance sheet and bring down net debt to presumably less than half of the pre-deal level. we will use the proceeds to further strengthen the balance sheet and bring down net debt to presumably less than half of the pre-deal level Please note that the EUR 290 million-EUR 310 million are gross proceeds after having acquired the 25% reinvestment share and before tax payments that will be mainly due in 2026. please note that the eur 290 million-eur 310 million are gross proceeds after having acquired the 25% reinvestment share and before tax payments that will be mainly due in 2026 We anticipate a book gain of EUR 160 million-EUR 190 million after taxes, which is at the higher end of expectations. we anticipate a book gain of eur 160 million-eur 190 million after taxes which is at the higher end of expectations Moreover, the transaction was a major strategic step to finish Dürr's transformation into a lean group with a clear focus on highly automated and sustainable production processes for our customers. Slide 26 visualizes our transformation. Within not more than one and a half years, we divested the non-core businesses of Argamco and environmental technology, consolidated our automotive business in one powerful division, integrated the automation business under the BBS brand, and reduced the number of divisions from five to three. The new Dürr Group acts under the motto of sustainable automation, with automation as a joint technology platform and further synergies, for example, bundled purchasing, cross-selling in the auto sector, shared services, and business locations, as well as best practice processes in order execution. On top, we are more focused and easier to understand for our investors and analysts with only three divisions. Moreover, the transaction was a major strategic step to finish Dürr's transformation into a lean group with a clear focus on highly automated and sustainable production processes for our customers. moreover the transaction was a major strategic step to finish dürr's transformation into a lean group with a clear focus on highly automated and sustainable production processes for our customers Slide 26 visualizes our transformation. slide 26 visualizes our transformation Within not more than one and a half years, we divested the non-core businesses of Argamco and environmental technology, consolidated our automotive business in one powerful division, integrated the automation business under the BBS brand, and reduced the number of divisions from five to three. within not more than one and a half years we divested the non-core businesses of argamco and environmental technology consolidated our automotive business in one powerful division integrated the automation business under the bbs brand and reduced the number of divisions from five to three The new Dürr Group acts under the motto of sustainable automation, with automation as a joint technology platform and further synergies, for example, bundled purchasing, cross-selling in the auto sector, shared services, and business locations, as well as best practice processes in order execution. the new dürr group acts under the motto of sustainable automation with automation as a joint technology platform and further synergies for example bundled purchasing cross-selling in the auto sector shared services and business locations as well as best practice processes in order execution On top, we are more focused and easier to understand for our investors and analysts with only three divisions. on top we are more focused and easier to understand for our investors and analysts with only three divisions Page 27 shows the result of our transformation process. This structure is the right setup for the coming years. We are not planning any larger M&A transactions, but we'll put the main focus on further improving efficiency. Our target is an EBIT margin before extraordinaries of 8%. Even though we are not yet there, we have already done a lot of homework. The automotive division reached its mid-cycle margin target of 8% last year and is set to repeat this in 2025. Woodworking has strengthened its earning resilience and will return to an 8%+ margin under normal market conditions. In 2026 and beyond, we will put special attention on improving the margin of industrial automation. There's still work to do. Nonetheless, I'm fully convinced of the potential of our automation business, especially as we continue to expand the well-performing activities in the medtech sector. Slide 28, please. Page 27 shows the result of our transformation process. page 27 shows the result of our transformation process This structure is the right setup for the coming years. this structure is the right setup for the coming years We are not planning any larger M&A transactions, but we'll put the main focus on further improving efficiency. we are not planning any larger m&a transactions but we'll put the main focus on further improving efficiency Our target is an EBIT margin before extraordinaries of 8%. our target is an ebit margin before extraordinaries of 8% Even though we are not yet there, we have already done a lot of homework. even though we are not yet there we have already done a lot of homework The automotive division reached its mid-cycle margin target of 8% last year and is set to repeat this in 2025. the automotive division reached its mid-cycle margin target of 8% last year and is set to repeat this in 2025 Woodworking has strengthened its earning resilience and will return to an 8%+ margin under normal market conditions. woodworking has strengthened its earning resilience and will return to an 8%+ margin under normal market conditions In 2026 and beyond, we will put special attention on improving the margin of industrial automation. in 2026 and beyond we will put special attention on improving the margin of industrial automation There's still work to do. there's still work to do Nonetheless, I'm fully convinced of the potential of our automation business, especially as we continue to expand the well-performing activities in the medtech sector. nonetheless i'm fully convinced of the potential of our automation business especially as we continue to expand the well-performing activities in the medtech sector Slide 28, please. slide 28 please A consequence of our lean group structure is the planned resizing of the administrative sector. As outlined in July, we are planning to cut 500 jobs to make admin structures leaner and more efficient. This goes in line with empowering the three divisions and giving them more entrepreneurial leeway. We are targeting for cost savings of EUR 50 million, which requires provisions of EUR 40 million-EUR 50 million in Q4. We have already started to reduce the admin workforce abroad and entered into negotiations with the Works Council in Germany. Page 30 brings us to the outlook. We are confirming the target set in March and partly revised end of July. The order intake guidance requires a strong Q4. There is still work ahead of us, but I'm very confident that we will be successful as there is a good level of investment activity on our customer side. A consequence of our lean group structure is the planned resizing of the administrative sector. a consequence of our lean group structure is the planned resizing of the administrative sector As outlined in July, we are planning to cut 500 jobs to make admin structures leaner and more efficient. as outlined in july we are planning to cut 500 jobs to make admin structures leaner and more efficient This goes in line with empowering the three divisions and giving them more entrepreneurial leeway. this goes in line with empowering the three divisions and giving them more entrepreneurial leeway We are targeting for cost savings of EUR 50 million, which requires provisions of EUR 40 million-EUR 50 million in Q4. we are targeting for cost savings of eur 50 million which requires provisions of eur 40 million-eur 50 million in q4 We have already started to reduce the admin workforce abroad and entered into negotiations with the Works Council in Germany. we have already started to reduce the admin workforce abroad and entered into negotiations with the works council in germany Page 30 brings us to the outlook. page 30 brings us to the outlook We are confirming the target set in March and partly revised end of July. we are confirming the target set in march and partly revised end of july The order intake guidance requires a strong Q4. the order intake guidance requires a strong q4 There is still work ahead of us, but I'm very confident that we will be successful as there is a good level of investment activity on our customer side. there is still work ahead of us but i'm very confident that we will be successful as there is a good level of investment activity on our customer side Regarding sales, we are confident to reach the lower end of the EUR 4.2 billion-EUR 4.6 billion target corridor, backed by a strong Q4, especially in automotive. The EBIT margin before extraordinaries almost reached the guidance midpoint after nine months, so it's fair to assume that last year's level should be exceeded. Regarding free cash flow, Dietmar found the right words before. We maintain a conservative approach, even though there is an opportunity to beat the upper end of the guidance. Given the book profit from the environmental technology sale and the good earnings performance since Q3, we are confident regarding the net income guidance of EUR 120 million-EUR 170 million. The target for net financial debt is absolutely realistic given the environmental technology proceeds. Slide 31 is a rather technical one, designed to help you to follow the guidance. Regarding sales, we are confident to reach the lower end of the EUR 4.2 billion-EUR 4.6 billion target corridor, backed by a strong Q4, especially in automotive. regarding sales we are confident to reach the lower end of the eur 4.2 billion-eur 4.6 billion target corridor backed by a strong q4 especially in automotive The EBIT margin before extraordinaries almost reached the guidance midpoint after nine months, so it's fair to assume that last year's level should be exceeded. the ebit margin before extraordinaries almost reached the guidance midpoint after nine months so it's fair to assume that last year's level should be exceeded Regarding free cash flow, Dietmar found the right words before. regarding free cash flow dietmar found the right words before We maintain a conservative approach, even though there is an opportunity to beat the upper end of the guidance. we maintain a conservative approach even though there is an opportunity to beat the upper end of the guidance Given the book profit from the environmental technology sale and the good earnings performance since Q3, we are confident regarding the net income guidance of EUR 120 million-EUR 170 million. given the book profit from the environmental technology sale and the good earnings performance since q3 we are confident regarding the net income guidance of eur 120 million-eur 170 million The target for net financial debt is absolutely realistic given the environmental technology proceeds. the target for net financial debt is absolutely realistic given the environmental technology proceeds Slide 31 is a rather technical one, designed to help you to follow the guidance. slide 31 is a rather technical one designed to help you to follow the guidance Especially the information on the influencing factors for net income may be helpful. The divisional guidance on page 32 is unchanged compared to August 7th, when we made some adjustments marked in blue. We are confirming the divisional targets, especially the improved earnings performance in Q3 is a sound argument to be confident. Slide 34 brings me to the summary. The sale of the environmental technology business was a milestone, not only because it was a financial success, but also because it represents the final element of our transformation. Dürr has become a lean engineering group. Our leading competence for highly automated and sustainable production processes is the distinguishing feature that sets us apart from the competition. We are confirming our guidance and expect a high order intake in Q4, provided that there will be no customer-induced delays in order placement. Especially the information on the influencing factors for net income may be helpful. especially the information on the influencing factors for net income may be helpful The divisional guidance on page 32 is unchanged compared to August 7th, when we made some adjustments marked in blue. the divisional guidance on page 32 is unchanged compared to august 7th when we made some adjustments marked in blue We are confirming the divisional targets, especially the improved earnings performance in Q3 is a sound argument to be confident. we are confirming the divisional targets especially the improved earnings performance in q3 is a sound argument to be confident Slide 34 brings me to the summary. slide 34 brings me to the summary The sale of the environmental technology business was a milestone, not only because it was a financial success, but also because it represents the final element of our transformation. the sale of the environmental technology business was a milestone not only because it was a financial success but also because it represents the final element of our transformation Dürr has become a lean engineering group. dürr has become a lean engineering group Our leading competence for highly automated and sustainable production processes is the distinguishing feature that sets us apart from the competition. our leading competence for highly automated and sustainable production processes is the distinguishing feature that sets us apart from the competition We are confirming our guidance and expect a high order intake in Q4, provided that there will be no customer-induced delays in order placement. we are confirming our guidance and expect a high order intake in q4 provided that there will be no customer-induced delays in order placement The good performance in Q3 underscores our earnings resilience and our ability to improve margins even in a challenging environment. Free cash flow and net financial debt should meet the targets set in our guidance, maybe even more. We continue to improve earnings resilience and margins with the planned adjustments in administration, targeting for annual cost savings of EUR 50 million. After having reshaped the group, we will direct our focus even more on improving efficiency in 2026. Ladies and gentlemen, thank you for listening. Dietmar and I will now be happy to answer your questions. The good performance in Q3 underscores our earnings resilience and our ability to improve margins even in a challenging environment. the good performance in q3 underscores our earnings resilience and our ability to improve margins even in a challenging environment Free cash flow and net financial debt should meet the targets set in our guidance, maybe even more. free cash flow and net financial debt should meet the targets set in our guidance maybe even more We continue to improve earnings resilience and margins with the planned adjustments in administration, targeting for annual cost savings of EUR 50 million. we continue to improve earnings resilience and margins with the planned adjustments in administration targeting for annual cost savings of eur 50 million After having reshaped the group, we will direct our focus even more on improving efficiency in 2026. after having reshaped the group we will direct our focus even more on improving efficiency in 2026 Ladies and gentlemen, thank you for listening. ladies and gentlemen thank you for listening Dietmar and I will now be happy to answer your questions. dietmar and i will now be happy to answer your questions

Speaker 7: Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. In case you wish to withdraw a question, press three and star on your telephone keypad. The first question is from Sven Weier, UBS. Please go ahead with your question. Ladies and gentlemen, if you would like to ask a question, please press nine and star on your telephone keypad. ladies and gentlemen if you would like to ask a question please press nine and star on your telephone keypad In case you wish to withdraw a question, press three and star on your telephone keypad. in case you wish to withdraw a question press three and star on your telephone keypad The first question is from Sven Weier, UBS. the first question is from sven weier ubs Please go ahead with your question. please go ahead with your question

Speaker 1: Yep, good afternoon, gentlemen. Thanks for taking my question. I just have one regarding the order intake and what you said on Q4. I mean, with a view to the group guidance, is it also fair to assume that it's more likely that you will end up at the lower end of the range? I was also curious how you see that on an individual divisional level. Thank you. Yep, good afternoon, gentlemen. yep good afternoon gentlemen Thanks for taking my question. thanks for taking my question I just have one regarding the order intake and what you said on Q4. i just have one regarding the order intake and what you said on q4 I mean, with a view to the group guidance, is it also fair to assume that it's more likely that you will end up at the lower end of the range? i mean with a view to the group guidance is it also fair to assume that it's more likely that you will end up at the lower end of the range I was also curious how you see that on an individual divisional level. i was also curious how you see that on an individual divisional level Thank you. thank you

Speaker 8: Thank you, Sven, for asking the question. Yep, that's fair to assume in terms of rather the lower range of the guidance. And from a divisional perspective, we see some momentum in Homag, but the bigger part at this point is assumed to come from automotive. Thank you, Sven, for asking the question. thank you sven for asking the question Yep, that's fair to assume in terms of rather the lower range of the guidance. yep that's fair to assume in terms of rather the lower range of the guidance And from a divisional perspective, we see some momentum in Homag, but the bigger part at this point is assumed to come from automotive. and from a divisional perspective we see some momentum in homag but the bigger part at this point is assumed to come from automotive

Speaker 1: Homag is also going to be more towards the EUR 1.3 billion level, I guess. Homag is also going to be more towards the EUR 1.3 billion level, I guess. homag is also going to be more towards the eur 1.3 billion level i guess

Speaker 8: Let's see. Let's see. let's see

Speaker 1: Or slightly more? Or slightly more? or slightly more

Speaker 8: I would guess rather somewhat above, but let's see. I would guess rather somewhat above, but let's see. i would guess rather somewhat above but let's see

Speaker 1: Okay, understood. Thank you. Okay, understood. okay understood Thank you. thank you

Speaker 8: Thank you. Thank you. thank you

Speaker 7: The next question is from Nikita Gupta at Deutsche Bank. Please go ahead with your question. The next question is from Nikita Gupta at Deutsche Bank. the next question is from nikita gupta at deutsche bank Please go ahead with your question. please go ahead with your question

Speaker 9: Hi, good afternoon. Thank you for taking my questions. First, congratulations on the strong profitability we saw in this quarter. Is this a run rate we can expect for the next quarters, or what is it dependent on? My second question is on any comments on dividend already. Should we expect a payout ratio of roughly 40%? The third one, when we think about 2026, do you see any improving KPIs for Homag? Thank you. Hi, good afternoon. hi good afternoon Thank you for taking my questions. thank you for taking my questions First, congratulations on the strong profitability we saw in this quarter. first congratulations on the strong profitability we saw in this quarter Is this a run rate we can expect for the next quarters, or what is it dependent on? is this a run rate we can expect for the next quarters or what is it dependent on My second question is on any comments on dividend already. my second question is on any comments on dividend already Should we expect a payout ratio of roughly 40%? should we expect a payout ratio of roughly 40% The third one, when we think about 2026, do you see any improving KPIs for Homag? the third one when we think about 2026 do you see any improving kpis for homag Thank you. thank you

Speaker 8: Thank you, Nikita, for your questions. Let me start with the run rate for the remainder of the year. If you make the math with the midpoint of the guidance, which we've now reached, we would expect Q4 probably not to be exactly at the Q3 levels, but at least to a point that it, I shouldn't say easily, but that it well confirms what we've guided. On the dividend, no, we have not yet discussed anything, but I would say we are probably known for some sort of continuity, whatever that means at the end of the day. And then your last question was on Homag, I think, for next year. Let's see how things develop. Homag has made good steps this year, and you can clearly see, I mean, Homag is up almost 2% compared to last year, that we've made our homework in terms of efficiency and the effect of our restructuring program kicks in. Next year, to some extent, really depends on the outcome for the remainder of the year. Being at this year's level would already, I would say, would be a good starting point, and let's see what's possible. Thank you, Nikita, for your questions. thank you nikita for your questions Let me start with the run rate for the remainder of the year. let me start with the run rate for the remainder of the year If you make the math with the midpoint of the guidance, which we've now reached, we would expect Q4 probably not to be exactly at the Q3 levels, but at least to a point that it, I shouldn't say easily, but that it well confirms what we've guided. if you make the math with the midpoint of the guidance which we've now reached we would expect q4 probably not to be exactly at the q3 levels but at least to a point that it, i shouldn't say easily but that it well confirms what we've guided On the dividend, no, we have not yet discussed anything, but I would say we are probably known for some sort of continuity, whatever that means at the end of the day. on the dividend no we have not yet discussed anything but i would say we are probably known for some sort of continuity whatever that means at the end of the day And then your last question was on Homag, I think, for next year. and then your last question was on homag i think for next year Let's see how things develop. let's see how things develop Homag has made good steps this year, and you can clearly see, I mean, Homag is up almost 2% compared to last year, that we've made our homework in terms of efficiency and the effect of our restructuring program kicks in. homag has made good steps this year and you can clearly see i mean homag is up almost 2% compared to last year that we've made our homework in terms of efficiency and the effect of our restructuring program kicks in Next year, to some extent, really depends on the outcome for the remainder of the year. next year to some extent really depends on the outcome for the remainder of the year Being at this year's level would already, I would say, would be a good starting point, and let's see what's possible. being at this year's level would already i would say would be a good starting point and let's see what's possible

Speaker 9: Okay, thank you. Okay, thank you. okay thank you

Speaker 8: Thank you. Thank you. thank you

Speaker 7: The next question is from Adrian Pehl, ODDO BHF. Please go ahead with your question. The next question is from Adrian Pehl, ODDO BHF. the next question is from adrian pehl oddo bhf Please go ahead with your question. please go ahead with your question

Speaker 10: Yes, hi gentlemen. Good afternoon, actually. A couple of questions. First of all, on Homag again, actually phrasing it a little bit differently, since in the past we have been talking a little bit about the quality of discussions that you had with your clients, and I was just wondering if there was some sort of incremental change on that, hopefully towards improvement, but happy to take any color you might share. The second one is on, as you were referring in your presentation to probably not pursuing bigger M&A transactions, nevertheless wanted to hear thoughts on the proceeds that you will be collecting from the sale of the environmental business. Will you pay down debt with the money, or how should we think of the respective capital allocation here? Thirdly, before I might have a follow-up on the phasing of the cash out on the restructuring, maybe you could remind us how this will unfold starting Q4 going into 2026. That would be helpful. Yes, hi gentlemen. yes hi gentlemen Good afternoon, actually. good afternoon actually A couple of questions. a couple of questions First of all, on Homag again, actually phrasing it a little bit differently, since in the past we have been talking a little bit about the quality of discussions that you had with your clients, and I was just wondering if there was some sort of incremental change on that, hopefully towards improvement, but happy to take any color you might share. first of all on homag again actually phrasing it a little bit differently since in the past we have been talking a little bit about the quality of discussions that you had with your clients and i was just wondering if there was some sort of incremental change on that hopefully towards improvement but happy to take any color you might share The second one is on, as you were referring in your presentation to probably not pursuing bigger M&A transactions, nevertheless wanted to hear thoughts on the proceeds that you will be collecting from the sale of the environmental business. the second one is on as you were referring in your presentation to probably not pursuing bigger m&a transactions nevertheless wanted to hear thoughts on the proceeds that you will be collecting from the sale of the environmental business W ill you pay down debt with the money, or how should we think of the respective capital allocation here? w ill you pay down debt with the money or how should we think of the respective capital allocation here Thirdly, before I might have a follow-up on the phasing of the cash out on the restructuring, maybe you could remind us how this will unfold starting Q4 going into 2026. thirdly before i might have a follow-up on the phasing of the cash out on the restructuring maybe you could remind us how this will unfold starting q4 going into 2026 That would be helpful. that would be helpful

Speaker 8: Okay, thank you for your questions. I will answer on Homag, and Dietmar will probably take over for M&A proceeds and the phase-out of the restructuring. On Homag, yeah, obviously I've been burning my tongue a few times on this topic, always looking at when things would become better. It's twofold. It's very difficult to guess action from the discussions I have with customers, so we're careful when it comes to furniture at the moment. Yeah, I don't think there is more room to go down, but still, you don't see any real recovery in the numbers. I think there is with some customers in Europe, maybe discussions become a bit more positive. On the other hand, we see some uncertainty in the U.S. from customers who now, of course, have to suffer from tariffs. How this will play out in the end and when really there will be momentum upwards, downwards, I do not expect any. Hard to say. Where we see definitely activity is around wooden houses and timber processing. There we really are discussing with a number of customers on significant projects, and there I am quite optimistic. Okay, thank you for your questions. okay thank you for your questions I will answer on Homag, and Dietmar will probably take over for M&A proceeds and the phase-out of the restructuring. i will answer on homag and dietmar will probably take over for m&a proceeds and the phase-out of the restructuring On Homag, yeah, obviously I've been burning my tongue a few times on this topic, always looking at when things would become better. on homag yeah obviously i've been burning my tongue a few times on this topic always looking at when things would become better It's twofold. it's twofold It's very difficult to guess action from the discussions I have with customers, so we're careful when it comes to furniture at the moment. it's very difficult to guess action from the discussions i have with customers so we're careful when it comes to furniture at the moment Yeah, I don't think there is more room to go down, but still, you don't see any real recovery in the numbers. yeah i don't think there is more room to go down but still you don't see any real recovery in the numbers I think there is with some customers in Europe, maybe discussions become a bit more positive. i think there is with some customers in europe maybe discussions become a bit more positive On the other hand, we see some uncertainty in the U.S. from customers who now, of course, have to suffer from tariffs. on the other hand we see some uncertainty in the u.s from customers who now of course have to suffer from tariffs How this will play out in the end and when really there will be momentum upwards, downwards, I do not expect any. how this will play out in the end and when really there will be momentum upwards downwards i do not expect any Hard to say. hard to say Where we see definitely activity is around wooden houses and timber processing. where we see definitely activity is around wooden houses and timber processing There we really are discussing with a number of customers on significant projects, and there I am quite optimistic. there we really are discussing with a number of customers on significant projects and there i am quite optimistic

Speaker 3: Okay, Adrian, so I will pick up as Jochen already mentioned the other two questions in regard to the use of the proceeds of the environmental technology sale. We are going to use it for debt reduction. We have the maturity of the convertible bond coming up in January of next year, and we have another Schuldschein then coming up in April of next year, and we are targeting actually to repay these two debts. In regard to the cash out for the restructuring, then in the administration area that Jochen explained, we are targeting to build up the provisions in the fourth quarter of this year. We are already getting closer to the negotiation results with the Works Council, and so I'm confident that we will build up the related provisions in Germany, but also outside of Germany until the end of this year. In regard to the cash out, I do not expect the real cash out to happen within this year. The majority will for sure be done in 2026, but depending on the individual agreements and the impacts that we are having in there, it can also be that some portion of the payout still will be done in 2027. We can provide more information in regard to this when we are really having the progress in conjunction with getting the agreements with the individual employees who are targeted to leave the company. Okay, Adrian, so I will pick up as Jochen already mentioned the other two questions in regard to the use of the proceeds of the environmental technology sale. okay adrian so i will pick up as jochen already mentioned the other two questions in regard to the use of the proceeds of the environmental technology sale We are going to use it for debt reduction. we are going to use it for debt reduction We have the maturity of the convertible bond coming up in January of next year, and we have another Schuldschein then coming up in April of next year, and we are targeting actually to repay these two debts. we have the maturity of the convertible bond coming up in january of next year and we have another schuldschein then coming up in april of next year and we are targeting actually to repay these two debts In regard to the cash out for the restructuring, then in the administration area that Jochen explained, we are targeting to build up the provisions in the fourth quarter of this year. in regard to the cash out for the restructuring then in the administration area that jochen explained we are targeting to build up the provisions in the fourth quarter of this year We are already getting closer to the negotiation results with the Works Council, and so I'm confident that we will build up the related provisions in Germany, but also outside of Germany until the end of this year. we are already getting closer to the negotiation results with the works council and so i'm confident that we will build up the related provisions in germany but also outside of germany until the end of this year In regard to the cash out, I do not expect the real cash out to happen within this year. in regard to the cash out i do not expect the real cash out to happen within this year The majority will for sure be done in 2026, but depending on the individual agreements and the impacts that we are having in there, it can also be that some portion of the payout still will be done in 2027. the majority will for sure be done in 2026 but depending on the individual agreements and the impacts that we are having in there it can also be that some portion of the payout still will be done in 2027 We can provide more information in regard to this when we are really having the progress in conjunction with getting the agreements with the individual employees who are targeted to leave the company. we can provide more information in regard to this when we are really having the progress in conjunction with getting the agreements with the individual employees who are targeted to leave the company

Speaker 10: Right, that's been helpful. Last question from my side again on automotive, just also probably a bit more color just to what you said already. I mean, I took obviously and the order intake in Q3 was pretty low, but I want to hear thoughts. Is that just a function of shifts in projects that on the other hand are very likely to materialize anytime soon? Because I'm actually asking you, referred in the press release to, I think that was a half sentence saying that if these products are then finally being signed, so there's still a high level of uncertainty obviously, and there might be some shift into 2026, but anything on color, clients, regions, investment behavior would be helpful. Thank you. Right, that's been helpful. right that's been helpful Last question from my side again on automotive, just also probably a bit more color just to what you said already. last question from my side again on automotive just also probably a bit more color just to what you said already I mean, I took obviously and the order intake in Q3 was pretty low, but I want to hear thoughts. i mean i took obviously and the order intake in q3 was pretty low but i want to hear thoughts Is that just a function of shifts in projects that on the other hand are very likely to materialize anytime soon? is that just a function of shifts in projects that on the other hand are very likely to materialize anytime soon Because I'm actually asking you, referred in the press release to, I think that was a half sentence saying that if these products are then finally being signed, so there's still a high level of uncertainty obviously, and there might be some shift into 2026, but anything on color, clients, regions, investment behavior would be helpful. because i'm actually asking you referred in the press release to i think that was a half sentence saying that if these products are then finally being signed so there's still a high level of uncertainty obviously and there might be some shift into 2026 but anything on color clients regions investment behavior would be helpful Thank you. thank you

Speaker 8: Yeah, thanks for the add-on question. We have a few, a bit more, yeah, some large orders that are very much progressed in terms of the negotiations. Still not signed, but it gives us the confidence that we have expressed in our comments before. On the regions, I ask for your understanding that it's also from a confidentiality point of view and that the market is quite sensitive at the moment. I would rather comment on that we have booked the orders. Yeah, thanks for the add-on question. yeah thanks for the add-on question We have a few, a bit more, yeah, some large orders that are very much progressed in terms of the negotiations. we have a few a bit more yeah some large orders that are very much progressed in terms of the negotiations Still not signed, but it gives us the confidence that we have expressed in our comments before. still not signed but it gives us the confidence that we have expressed in our comments before On the regions, I ask for your understanding that it's also from a confidentiality point of view and that the market is quite sensitive at the moment. on the regions i ask for your understanding that it's also from a confidentiality point of view and that the market is quite sensitive at the moment I would rather comment on that we have booked the orders. i would rather comment on that we have booked the orders

Speaker 10: All right, thank you. All right, thank you. all right thank you

Speaker 8: Thank you. Thank you. thank you

Speaker 7: The next question is from Philippe Lorrain, Bernstein. Please go ahead with your question. The next question is from Philippe Lorrain, Bernstein. the next question is from philippe lorrain bernstein Please go ahead with your question. please go ahead with your question

Speaker 5: Yes, thank you very much for taking my question. I wanted to bounce back a little bit on automotive. From today's point of view, would that be fair to assume that the kind of order intake level that we could expect for Q4 kind of matches the one that we've seen in Q1? Yes, thank you very much for taking my question. yes thank you very much for taking my question I wanted to bounce back a little bit on automotive. i wanted to bounce back a little bit on automotive From today's point of view, would that be fair to assume that the kind of order intake level that we could expect for Q4 kind of matches the one that we've seen in Q1? from today's point of view would that be fair to assume that the kind of order intake level that we could expect for q4 kind of matches the one that we've seen in q1

Speaker 8: It very much would match, yes, what we had in Q1. It very much would match, yes, what we had in Q1. it very much would match yes what we had in q1

Speaker 5: Okay, perfect. Then a second question to specify a little bit more what you were saying on the adjusted EBIT margin guidance. I take it that you were saying, okay, you are very confident with the midpoint of the range, but the midpoint of the range at 5% would imply actually like another 5% or so in Q4, if I'm not mistaken. To circle back with your comment, like saying, okay, if we look at Q3 and maybe we assume that it's not exactly the same level of margin that we can generate for Q4, that would imply actually that we land well within, let's say, the upper half of the margin range. Is that fair to see it that way? Okay, perfect. okay perfect Then a second question to specify a little bit more what you were saying on the adjusted EBIT margin guidance. then a second question to specify a little bit more what you were saying on the adjusted ebit margin guidance I take it that you were saying, okay, you are very confident with the midpoint of the range, but the midpoint of the range at 5% would imply actually like another 5% or so in Q4, if I'm not mistaken. i take it that you were saying okay you are very confident with the midpoint of the range but the midpoint of the range at 5% would imply actually like another 5% or so in q4 if i'm not mistaken To circle back with your comment, like saying, okay, if we look at Q3 and maybe we assume that it's not exactly the same level of margin that we can generate for Q4, that would imply actually that we land well within, let's say, the upper half of the margin range. to circle back with your comment like saying okay if we look at q3 and maybe we assume that it's not exactly the same level of margin that we can generate for q4 that would imply actually that we land well within let's say the upper half of the margin range Is that fair to see it that way? is that fair to see it that way

Speaker 3: Yeah, maybe Philippe, I take this question in that regard. As you know, we are always a bit conservative, and projects have sometimes their own dynamics. So we stay on the conservative side, and then we stay with what Jochen explained before, staying at a very obvious stick to staying with the guidance. We are in the midrange of the guidance. We feel comfortable in that regard. In case we perform better, of course, that will be the case, but I do not want to raise the bar right now. That would not be reasonable. Yeah, maybe Philippe, I take this question in that regard. yeah maybe philippe i take this question in that regard As you know, we are always a bit conservative, and projects have sometimes their own dynamics. as you know we are always a bit conservative and projects have sometimes their own dynamics So we stay on the conservative side, and then we stay with what Jochen explained before, staying at a very obvious stick to staying with the guidance. so we stay on the conservative side and then we stay with what jochen explained before staying at a very obvious stick to staying with the guidance We are in the midrange of the guidance. we are in the midrange of the guidance We feel comfortable in that regard. we feel comfortable in that regard In case we perform better, of course, that will be the case, but I do not want to raise the bar right now. in case we perform better of course that will be the case but i do not want to raise the bar right now That would not be reasonable. that would not be reasonable

Speaker 5: Yeah, okay, perfect. My last question again on, it's probably a bit more on automotive and to some extent also on Homag, but now with the trend that we've seen that Q2 and Q3 were slightly weaker in terms of order intake, how should we expect actually sales to evolve in the coming quarters? I'm trying to extrapolate a little bit further than just Q4. Yeah, okay, perfect. yeah okay perfect My last question again on, it's probably a bit more on automotive and to some extent also on Homag, but now with the trend that we've seen that Q2 and Q3 were slightly weaker in terms of order intake, how should we expect actually sales to evolve in the coming quarters? my last question again on it's probably a bit more on automotive and to some extent also on homag but now with the trend that we've seen that q2 and q3 were slightly weaker in terms of order intake how should we expect actually sales to evolve in the coming quarters I'm trying to extrapolate a little bit further than just Q4. i'm trying to extrapolate a little bit further than just q4

Speaker 8: Yeah, especially on automotive, we still have a very good backlog. The orders we're now fighting for are rather further down in 2026. There we have a nice buffer independent of whether we get one of the bigger orders a quarter earlier or later. Homag, we'll have to see. I mean, you can see it in the numbers. The order backlog has somewhat come down. This is even more visible on the furniture side. We will have some measures in place already for Q1, which should help. I mean, we've seen a similar thing this year. We're working, I mean, we're working from, how would we say, hand to mouth. That's why I said expecting something similar to start with for next year compared to this year, I think is a fair assumption. Yeah, especially on automotive, we still have a very good backlog. yeah especially on automotive we still have a very good backlog The orders we're now fighting for are rather further down in 2026. the orders we're now fighting for are rather further down in 2026 There we have a nice buffer independent of whether we get one of the bigger orders a quarter earlier or later. there we have a nice buffer independent of whether we get one of the bigger orders a quarter earlier or later Homag, we'll have to see. homag we'll have to see I mean, you can see it in the numbers. i mean you can see it in the numbers The order backlog has somewhat come down. the order backlog has somewhat come down This is even more visible on the furniture side. this is even more visible on the furniture side We will have some measures in place already for Q1, which should help. we will have some measures in place already for q1 which should help I mean, we've seen a similar thing this year. i mean we've seen a similar thing this year We're working, I mean, we're working from, how would we say, hand to mouth. we're working i mean we're working from how would we say hand to mouth That's why I said expecting something similar to start with for next year compared to this year, I think is a fair assumption. that's why i said expecting something similar to start with for next year compared to this year i think is a fair assumption

Speaker 5: Okay, but on a full year basis, probably still continue on an improvement trend margin-wise, no? Okay, but on a full year basis, probably still continue on an improvement trend margin-wise, no? okay but on a full year basis probably still continue on an improvement trend margin-wise no

Speaker 8: That would be our aim, definitely, but let's see how the market helps us or doesn't help us. That would be our aim, definitely, but let's see how the market helps us or doesn't help us. that would be our aim definitely but let's see how the market helps us or doesn't help us

Speaker 5: Okay, perfect. Thank you very much. Okay, perfect. okay perfect Thank you very much. thank you very much

Speaker 8: Thank you, Philippe. Thank you, Philippe. thank you philippe

Speaker 7: At the moment, there seem to be no further questions. If you would like to ask a question, please press nine and star on your telephone keypad. The next question is from Holger Schmidt, DZ Bank. Please go ahead with your question. At the moment, there seem to be no further questions. at the moment there seem to be no further questions If you would like to ask a question, please press nine and star on your telephone keypad. if you would like to ask a question please press nine and star on your telephone keypad The next question is from Holger Schmidt, DZ Bank. the next question is from holger schmidt dz bank Please go ahead with your question. please go ahead with your question

Speaker 4: Yeah, hi everyone. Good afternoon. I have just one question on the battery side. Could you give us an update on your battery business? I mean, you are making some capacity adjustments at the moment. Do you see any kind of improvement or potentially deterioration of the business? Yeah, hi everyone. yeah hi everyone Good afternoon. good afternoon I have just one question on the battery side. i have just one question on the battery side Could you give us an update on your battery business? could you give us an update on your battery business I mean, you are making some capacity adjustments at the moment. i mean you are making some capacity adjustments at the moment Do you see any kind of improvement or potentially deterioration of the business? do you see any kind of improvement or potentially deterioration of the business

Speaker 8: Yeah, thank you. Good question, Holger. No, it's tough to be quite fair at the moment. That's why we're restructuring. We see a challenging market. We still believe that there will be some activities coming back. There's a few smaller orders, but nowhere near to what we've been planning for. This is why we make significant capacity adjustments, and this is where we obviously see some earning issues at the moment. We are adapting the team. It's not too huge anyways, and then see what we can get out of it. It definitely is an issue at the moment, and that's why we already announced significant restructuring. Let's see how it goes forward. Fortunately, it's not big tickets in total. Yeah, thank you. yeah thank you Good question, Holger. good question holger No, it's tough to be quite fair at the moment. no it's tough to be quite fair at the moment That's why we're restructuring. that's why we're restructuring We see a challenging market. we see a challenging market We still believe that there will be some activities coming back. we still believe that there will be some activities coming back There's a few smaller orders, but nowhere near to what we've been planning for. there's a few smaller orders but nowhere near to what we've been planning for This is why we make significant capacity adjustments, and this is where we obviously see some earning issues at the moment. this is why we make significant capacity adjustments and this is where we obviously see some earning issues at the moment We are adapting the team. we are adapting the team It's not too huge anyways, and then see what we can get out of it. it's not too huge anyways and then see what we can get out of it It definitely is an issue at the moment, and that's why we already announced significant restructuring. it definitely is an issue at the moment and that's why we already announced significant restructuring Let's see how it goes forward. let's see how it goes forward Fortunately, it's not big tickets in total. fortunately it's not big tickets in total

Speaker 4: Okay, thank you. Let's assume the market would remain weak at the current level. Would you also consider to step out of this business? Okay, thank you. okay thank you Let's assume the market would remain weak at the current level. let's assume the market would remain weak at the current level Would you also consider to step out of this business? would you also consider to step out of this business

Speaker 8: We don't do that right now. Let's see how things develop. If you listen to what is said in public, there is the confirmation that especially in Europe, we need some sort of a supply chain in the battery business. There are some projects, and actually we are hopeful also to collect a few orders, at least one or two double-digit. We will, in a way, deal with what we have. Hard to rule anything out, but at the moment, that's not our plan. We don't do that right now. we don't do that right now Let's see how things develop. let's see how things develop If you listen to what is said in public, there is the confirmation that especially in Europe, we need some sort of a supply chain in the battery business. if you listen to what is said in public there is the confirmation that especially in europe we need some sort of a supply chain in the battery business There are some projects, and actually we are hopeful also to collect a few orders, at least one or two double-digit. there are some projects and actually we are hopeful also to collect a few orders at least one or two double-digit We will, in a way, deal with what we have. we will in a way deal with what we have Hard to rule anything out, but at the moment, that's not our plan. hard to rule anything out but at the moment that's not our plan

Speaker 4: Okay, understood. Thank you very much. Okay, understood. okay understood Thank you very much. thank you very much

Speaker 8: Thank you. Thank you. thank you

Speaker 7: The next question is from Elisabeth Weisenhorn, Porteous Investment. Please go with your question. The next question is from Elisabeth Weisenhorn, Porteous Investment. the next question is from elisabeth weisenhorn porteous investment Please go with your question. please go with your question

Speaker 2: Hello. Mr. Weyrauch, you very often go to China, as I noticed, and I would like to know what you think about the competition there. I read and see pictures about the automation degree that is going on there and how competitive it is. Hello. hello Mr. Weyrauch, you very often go to China, as I noticed, and I would like to know what you think about the competition there. mr weyrauch you very often go to china as i noticed and i would like to know what you think about the competition there I read and see pictures about the automation degree that is going on there and how competitive it is. i read and see pictures about the automation degree that is going on there and how competitive it is

Speaker 8: Yeah, thank you for the question. Yeah, indeed, I go to China quite often because it's important business for us. China is very competitive in any industry. In automation, definitely, there is a number of very strong players, obviously including us, because the majority of our employees in production automation are sitting in China, mainly in Suzhou and Kunshan, and we're playing a significant role. That is why it is important to play in China to learn what's happening there, but the dynamics are incredible. I can really only say. That is why, again, it is important to be there, to be successful, and we are successful in our automation business with our strong local team. You have to continuously develop, be efficient, be cost-driven. This is why the business that we run and the competition we play with in China makes us also quite strong for the business outside of China. I hope that helps a little bit. That is all I can say at this point, and I am always impressed. Yeah, thank you for the question. yeah thank you for the question Yeah, indeed, I go to China quite often because it's important business for us. yeah indeed i go to china quite often because it's important business for us China is very competitive in any industry. china is very competitive in any industry In automation, definitely, there is a number of very strong players, obviously including us, because the majority of our employees in production automation are sitting in China, mainly in Suzhou and Kunshan, and we're playing a significant role. That is why it is important to play in China to learn what's happening there, but the dynamics are incredible. in automation definitely there is a number of very strong players obviously including us because the majority of our employees in production automation are sitting in china mainly in suzhou and kunshan and we're playing a significant role. that is why it is important to play in china to learn what's happening there but the dynamics are incredible I can really only say. i can really only say That is why, again, it is important to be there, to be successful, and we are successful in our automation business with our strong local team. that is why again it is important to be there to be successful and we are successful in our automation business with our strong local team You have to continuously develop, be efficient, be cost-driven. you have to continuously develop be efficient be cost-driven This is why the business that we run and the competition we play with in China makes us also quite strong for the business outside of China. this is why the business that we run and the competition we play with in china makes us also quite strong for the business outside of china I hope that helps a little bit. That is all I can say at this point, and I am always impressed. i hope that helps a little bit. that is all i can say at this point and i am always impressed

Speaker 7: Okay, then we come to the last question. It's a follow-up from Philippe Lorraine, Bernstein. Please go with your question. Okay, then we come to the last question. okay then we come to the last question It's a follow-up from Philippe Lorraine, Bernstein. it's a follow-up from philippe lorraine bernstein Please go with your question. please go with your question

Speaker 5: Yes, thanks. Just wanted to follow up with two little more questions on automotive. The first one was just to make sure I understood you saying your, let's say, confidence with regard to the statement speaking about an improvement in Q4 or intake trends is based more on the fact that you see orders being nearly assigned. How about orders that you've signed maybe at the beginning of Q4? How has been current trading, so to say? The second question would be, and perhaps it ties also together a little bit with all of that generally, but I remember you were speaking about a bit of a slowdown in execution this year. However, it seems to pick up, especially with regard to Q4. Would you say that all these issues are now behind us, or has there been a structural shift somewhere? Yes, thanks. yes thanks Just wanted to follow up with two little more questions on automotive. just wanted to follow up with two little more questions on automotive The first one was just to make sure I understood you saying your, let's say, confidence with regard to the statement speaking about an improvement in Q4 or intake trends is based more on the fact that you see orders being nearly assigned. the first one was just to make sure i understood you saying your let's say confidence with regard to the statement speaking about an improvement in q4 or intake trends is based more on the fact that you see orders being nearly assigned How about orders that you've signed maybe at the beginning of Q4? how about orders that you've signed maybe at the beginning of q4 How has been current trading, so to say? how has been current trading so to say The second question would be, and perhaps it ties also together a little bit with all of that generally, but I remember you were speaking about a bit of a slowdown in execution this year. the second question would be and perhaps it ties also together a little bit with all of that generally but i remember you were speaking about a bit of a slowdown in execution this year However, it seems to pick up, especially with regard to Q4. however it seems to pick up especially with regard to q4 Would you say that all these issues are now behind us, or has there been a structural shift somewhere? would you say that all these issues are now behind us or has there been a structural shift somewhere

Speaker 8: Thanks, Philippe. Yeah, on auto and bookings in Q4, in general, our pipeline overall does not look very bad, I must say. Actually, let me turn my words around. It looks quite solid. That is not only Q4. We are always watching the next 12, 18 months, and this is where I can say it is solid. Is it fantastic? Probably not, but it is very solid, and there are enough projects out there to feed the organization at this point. When it comes now to Q4, there are two to three larger orders that would turn the needle. On most of them, negotiations have progressed quite well. Based on that, let us see how things turn out. Does that help a bit, Philippe? Thanks, Philippe. thanks philippe Yeah, on auto and bookings in Q4, in general, our pipeline overall does not look very bad, I must say. yeah on auto and bookings in q4 in general our pipeline overall does not look very bad i must say Actually, let me turn my words around. actually let me turn my words around It looks quite solid. it looks quite solid That is not only Q4. that is not only q4 We are always watching the next 12, 18 months, and this is where I can say it is solid. we are always watching the next 12 18 months and this is where i can say it is solid Is it fantastic? is it fantastic Probably not, but it is very solid, and there are enough projects out there to feed the organization at this point. probably not but it is very solid and there are enough projects out there to feed the organization at this point When it comes now to Q4, there are two to three larger orders that would turn the needle. when it comes now to q4 there are two to three larger orders that would turn the needle On most of them, negotiations have progressed quite well. on most of them negotiations have progressed quite well Based on that, let us see how things turn out. based on that let us see how things turn out Does that help a bit, Philippe? does that help a bit philippe

Speaker 5: Yes, perfect. I understand it's really, yeah, something that needs to be signed. With regard to the question on the pace of execution on sales? Yes, perfect. yes perfect I understand it's really, yeah, something that needs to be signed. i understand it's really yeah something that needs to be signed With regard to the question on the pace of execution on sales? with regard to the question on the pace of execution on sales

Speaker 8: Sorry, yeah, I missed that one. I would say we are running a relatively normal pace at this point. There were a few orders or a few projects where there were some modifications at customer ends. There were a few delays on progress of buildings, which, by the way, can happen always in that business. What we are currently seeing is, I would say, normal project execution. Sorry, yeah, I missed that one. sorry yeah i missed that one I would say we are running a relatively normal pace at this point. i would say we are running a relatively normal pace at this point There were a few orders or a few projects where there were some modifications at customer ends. there were a few orders or a few projects where there were some modifications at customer ends There were a few delays on progress of buildings, which, by the way, can happen always in that business. there were a few delays on progress of buildings which by the way can happen always in that business What we are currently seeing is, I would say, normal project execution. what we are currently seeing is i would say normal project execution

Speaker 5: Okay, perfect. Thank you very much. Okay, perfect. okay perfect Thank you very much. thank you very much

Speaker 8: Thank you. Thank you. thank you

Speaker 7: As we have no further questions from the audience, I would like to hand the floor back over for closing remarks. As we have no further questions from the audience, I would like to hand the floor back over for closing remarks. as we have no further questions from the audience i would like to hand the floor back over for closing remarks

Speaker 6: Thank you, Heike. Thank you, ladies and gentlemen, for your questions and the discussion in today's call. If there are follow-ups, please don't hesitate to contact me. We are looking forward to meeting some of you on the investor conferences during the next few weeks. Take care and have a wonderful end of the year season. Bye-bye from our side. Thank you, Heike. thank you heike Thank you, ladies and gentlemen, for your questions and the discussion in today's call. thank you ladies and gentlemen for your questions and the discussion in today's call If there are follow-ups, please don't hesitate to contact me. if there are follow-ups please don't hesitate to contact me We are looking forward to meeting some of you on the investor conferences during the next few weeks. we are looking forward to meeting some of you on the investor conferences during the next few weeks Take care and have a wonderful end of the year season. take care and have a wonderful end of the year season Bye-bye from our side. bye-bye from our side

Speaker 7: The recording has been stopped. Your conference call has come to an end. Thank you for attending. Goodbye. The recording has been stopped. the recording has been stopped Your conference call has come to an end. your conference call has come to an end thank you for attending goodbye Thank you for attending. your conference call has come to an end thank you for attending goodbye Goodbye. your conference call has come to an end thank you for attending goodbye