Good evening. This is the Chorus Call Conference operator. Welcome, and thank you for joining the Avio Full- Year 2025 Results P resentation. All participants are in listen-only mode, and after the presentation, there will be a Q&A session. At this time, I would like to turn the conference over to Mr. Nevio Quattrin, Head of Investor Relations. Please go ahead, sir. Good afternoon, everyone, and welcome to 2025 results conference call of Avio. I'm here with Mr. Giulio Ranzo, CEO of Avio, and Mr. Roberto Carassai, Chief Financial Officer of the company. In a moment, we will go through the presentation we just released on our website, and at the end, as usual, we will welcome your questions. Thank you for your attention, and I hand the conversation over to Giulio. Thank you, Nevio. Good afternoon, and thank you for joining the fiscal year 2025 results. In the interest of time, I will go to the agenda. We will go quickly over the highlights and then we'll have some overview of the financial results with our CFO and then go back to describe the outlook for 2026. 2025 was a very important year for the company. We recorded the highest economic and financial performance ever. I remind everyone that we had recently upgraded our guidance for backlog and revenues. We have exceeded EUR 2 billion worth of backlog, never happened in the company, and also revenues over EUR 540 million, never happened before. And net income, EBITDA. Net income above guidance and EBITDA well within the guidance on the upper part. I would say overall, an extremely positive 2025. On the operational front, you know, the flight activity of Vega was very successful. We completed our last flight in December for Vega-C. With that, we achieved four missions within 12 months, which was a target we had for ourselves, and we're very glad we reached that. We also demonstrated acceleration on the Ariane 6 programs, which for us is extremely important, as you know, as we deliver many, many motors to them and growing. The success of 2025 was quite relevant also more recently with the introduction of Ariane 64, the four booster version, which is even more relevant for us in terms of the delivery of the motors. That paves the way for further growth in 2026, in particular for the launches for Project Kuiper that is currently underway. Towards the end of the year, as you know, we also achieved a good result of the European Space Agency Ministerial Council with over EUR 600 million worth of subscriptions for contracts to be awarded to Avio. That will unfold in the course of 2026 and partly 2027, meaning that they will materialize in form of net order backlog within this time frame. Most importantly, in 2025, we achieved over EUR 250 million worth of order intake in the defense propulsion. We had anticipated, we were expecting growth in the defense business. I think this big accumulation of backlog was a testimony of the right strategy being pursued over the course of 2025. Now the defense propulsion backlog stands at over EUR 600 million. It's never been that high. It represents almost a third of our backlog. It's never represented a third of our backlog. A very relevant testimony to the transformation of the company. As you also know, we achieved a successful capital increase towards the end of the year for EUR 400 million, which is extremely important if you think about it now. We are in a completely new scenario in 2026 with an active massive conflict in Iran, with equity markets are extremely volatile. I'm quite frankly very glad we achieved this process before the end of the year. Now we have cash in hand ready to be invested in our projects, which seem to be at the very core of where demand is going to be in the future. Now, we also of course, prepared a dividend proposal, for the shareholder meeting of 2026 in line with our payout. I think there's been quite a lot of, shareholder return on the stock. Nonetheless, we proposed the shareholder meeting to also vote for a dividend in line with our traditional payout ratio. Now, one important word, we will come back to that on the guidance of 2026. As we had anticipated in our long-term plan, we do see continued growth in 2026, but I have to anticipate to you that there may be potential upside with respect to that. Now, the question is, we are in the middle of an active, massive, unprecedented conflict in Iran with a huge consumption of missiles. Everywhere in Europe and in the U.S., there is a concrete expectation for far more demand than we had anticipated, probably 2x or 3x more. Yet, you know, this conflict only started 12 days ago. We need to wait for the dust to settle before we can correctly plan for the future and guide you through, if possible, updated targets. So far, we have projected a guidance that we feel comfortable with. Also, remind that converting ideas and expectations and forecasts into firm order backlog under contract is something that takes time. Everywhere we go in our business, we see far more demand than we had anticipated. This we wanted to report to you. As soon as we will have more concrete information, if needed, we will come back to you and update, if needed, any information on the future. On the following page, reviewing a little bit the numbers in detail, we put here a summary of what we did in 2023, 2024, and 2025. Why did we do that? Because it's important you note how fast the backlog grew over the last three years, quite consistently, from EUR 1.3 billion to almost EUR 2.2 billion. This represents a compound annual growth rate of 26%, which, as you can see, is consistent across the backlog, the revenues, the EBITDA, and so on. Now, why is that relevant in my mind? Because the backlog demonstrates that the commercial capability we have in the markets we address is actually effective. We are getting orders as we expect. Converting that into revenues is a complete different story. It tells you that we are capable of converting our commercial capabilities into our industries and turning that into deliveries. Maybe not yet in profits, but definitely in deliveries. Now, when it comes to profit, you see that also the profit has been growing at a 25% compound annual growth rate. Now, starting from 2026, we will report the split between the EBITDA we generate, so to speak, in Europe, and the costs that we have incurred in the U.S. for the setup of the U.S. operations. Why that? Because as we reported to you in our plan, we have a growing EBITDA in Europe, we have a growing set of costs in the U.S. before we are fully functional with our new plan. The result of these two things in our plan would likely be a flattish EBITDA over the next two to three years. But we have a growing EBITDA in Europe and a set of costs in the US and no revenues for the moment, right? Things may change in the future for the better, but that's pretty much what we have had so far. Let me also highlight to you that the numbers in terms of backlog and revenues were far more than the guidance we had given to you back then in March last year, which we had upgraded early in January this year. We went far beyond that expectation. Last and not least, also the net income surprised positively, a little bit above what we had put in guidance. We put the guidance between EUR 7 million and EUR 10 million. We are at EUR 11.6 million. Not a huge value, still healthy situation. Another last important point is on the NFP. The cash position stands right now at EUR 592 million. We will see that with Roberto later. A good chunk of that, of course, comes from the capital increase. As you may appreciate, there's more than EUR 200 million worth of cash coming from the business, which is a huge amount of money, okay? Once again, that is a testimony of how well we can do commercially by drawing advances on the new contracts, okay? Which is important, and it's a terribly important situation to plan for the business, for the future, make sure that we flow down our activities to suppliers and that we execute. Otherwise, converting those orders into future revenues becomes impossible. If you do have the cash, you have many more levers to play for revenue conversion. Next, let's review a little bit what happened in the course of the last few months. As we said, a very successful flight on Vega-C mission VV28 with a Korean satellite. I think that this Korean customer is very important, is a very important success. It's an export customer, we had the pleasure to win and, you know, make happy. We launched a very heavy relevant satellite for Earth observation of the Korean Peninsula. We will do more this year. We'll launch a second Korean satellite. As you know, we've been successful again in the Far East with Taiwan selling another launch. That consolidates a little bit our ability, not only to deliver in Europe, but also in the export markets. On Ariane, I said it before, I am very proud of how ArianeGroup ramped up on Ariane 6. They did a very good job at ramping up Ariane 62 missions for Copernicus and for Galileo, but more recently also for Pléiades Neo with the Ariane 64 version. What we had designed together with ArianeGroup as a European industrial setup to deliver two complementary launch services between Ariane 6 and Vega-C is now shaping up, and you can see that almost at full steam. Not yet, but almost at full steam. You see how rapidly we are upgrading our launch frequencies. More contracts for the future achieved just in the last few weeks. A very important one towards the end of the year, the new contract signed with ArianeGroup to deliver boosters for the next so many launches, probably 100 boosters or so. A very massive contract. It's important you appreciate that this type of deliveries for ArianeGroup, for Ariane 6, we get in batches, right? You get an order every now and so often that lasts 2-3 years, then you get another one, and so on. We're not gonna get, unfortunately, an order for EUR 200 million every year, but you know, this covers pretty much the next three years, and we're very proud of it. Probably it would be less than three years because they are likely to consume boosters far more rapidly than we had anticipated. As I said before, I was very happy also with the new launches sold for Vega-C. Very happy to have signed with Airbus for Pléiades Neo Next version. We had launched Pléiades Neo before. Now we have Pléiades Neo Next. For us, Airbus is a very relevant customer, I would say, also for their commercial applications, not only for institutional projects. We are very, very happy to have this customer and very happy to have recently signed a new contract. One other important aspect many of you had asked, we are working effectively to increase the launch rate at the launch site, but to do that, we need more infrastructure. At some point during this year, we were transferred the so-called integration facility for the launcher, the so-called BIL. It's a building that was formerly used for Ariane 5, where we will be able to integrate the Vega rocket while another one is being launched on the pad, which is fundamental for us to make sure we can reach a stable flight cadence of six per year without any issues of logistics and other complexities. Okay. The building was transferred recently. We are working heavily now on repurposing this site, but this will help in the next few years to grow the cadence without doing any particular other effort. The P160 booster for Ariane 6 and Vega-C will debut very soon on Ariane 6 core. It's the larger version of P160. As you may recall, this was developed recently as a stretched version of P120. On this, we will accelerate deliveries. This year, we will manufacture as many as 22 as compared to 14, which we manufactured last year. We are ramping up production and filling up the factories here as per the plan. Very proud about this motor, which ends up being the world's largest monolithic carbon fiber solid rocket motor. Also progress on Vega E, complex project, as you know, to upgrade at some point Vega-C with a cryogenic upper stage with liquid oxygen methane. We are continuing to carry out subsystem level testing for all of the liquid propulsion management system. We have tested a number of subsystems. You may recall in previous years, we have developed the engine itself, M10. Now we are preparing all other surrounding subsystems to make sure that at some point we will be able to field the upgraded Vega-C to Vega E with a cryogenic upper stage. Good progress on that as well. Space Rider, another project we oftentimes talk about, our launch and re-entry spaceship, small spaceship that will orbit around Earth, stay there for a few months and come back on ground and then potentially be reused. As you can see, we are building up effectively the first flight items together with Thales Alenia Space. We work on the power module and the solar panels and all of that while Thales Alenia Space works on the aircraft itself. We provide, in addition to that, all of the propulsion systems and the guidance and navigation systems. We are prepping for a flight sometime between 2028, 2029. It's a very sophisticated product. May open up new opportunities for business that doesn't yet exist, but it's a very forefront application that we are very happy to be now at a very advanced stage of development. More innovation for the European Space Agency and the Italian Space Agency is being done with our liquid oxygen engine flight demonstrator on the left of the page. We are preparing for flight, our first flight item, which will fly sometime in 2027. We will begin testing this year on ground and then fly next year. It's a small prototype of a launcher using liquid oxygen methane technology. Very complex project, I have to say, but very rewarding because there's a lot of new technology on that that we are finally converging towards demonstrating in flight. We are also preparing what we call the I-Thrust engine, which is a larger, far larger liquid oxygen methane engine, that we may want to use, for the future. Last and absolutely not least, we have very successfully conducted an extensive number of tests on our new so-called Multi-Purpose Green Engine, which is an improved propulsion system for our Vega-C upper stage that uses hydrogen peroxide, a clean propellant, essentially. A lot of new technology that, as you know, we deliver for the agencies as a customer-funded research effort. Now, on the defense side, as I anticipated to you in my highlights. There is definitely a continued momentum in defense. I would call it more than a momentum. This is probably the highest surge I have ever seen in my professional lifetime. The order book already speaks for itself. We are getting more demand from MBDA for Europe. I have been reached by Italian Armed Forces, by European institutions, all asking how we can improve, increase the production rates, the deliveries and so on. We are all working collectively between prime contractors, tier one suppliers, tier two suppliers, to see how we can grow production capacity. In Europe, even there is a great expectation for a completely new expectation for demand. In the U.S., I don't need to say much. We have achieved quite some results in 2025 with the new contracts for Raytheon from US Army and very, very recently, a second contract for a second product for the US Army, both for development and subsequent production. In addition to that, we have been supported in the U.S. by the State of Virginia for the setup of our production plant, which will be instrumental to serve these U.S. customers for the future. As I said before in US defense for solid rocket motors, given what is happening even over the last few weeks, but not only over the last few weeks, the demand may be 2x, 3 x more than we anticipate. At this time, you know, my guess is as good as anybody else's. We can only count how many missiles have been launched lately. You guys, this you can do yourself. It's massive. Consumption is definitely at a peak surge. I have to say, if we were to consider how much it would take to replenish this stock and so on, it feels like it will be very many years unless we significantly grow the annual production rates. We are debating with the customers how to make this happen, how to deploy investment, and I think we are in the exact sweet spot of having the cash available to invest towards this effort and to go exactly along the plan that we have projected. It's on one side very sad. On the other side is a business opportunity. We are here to serve, and I think this is a great potential. I would leave it now to Roberto to go a little bit deeper, although rapidly across the financials, and then we'll come back to some considerations on the outlook. Thank you, Giulio. Good afternoon, everybody. Okay, going through the slide on the backlog, we have already commented that we have achieved our record backlog of EUR 2.2 billion. Let's analyze a bit the composition of this backlog. The defense side has reached 28% of the backlog for a total amount of EUR 600 million orders we have enhanced. During 2025, we have booked orders for almost EUR 1 billion, and out of which the launch system business contributed for more than EUR 400 million. This is related also to the fact that Avio has become the launch service provider. The space propulsion as well contributed for more than EUR 300 million. We have already commented the big order we received from Ariane 6 for the boosters for the years to come. The defense side contributed for almost EUR 300 million, receiving order from both European customer and U.S. customer. In terms of the split, our backlog still is made by 70% of production orders and 30% by development orders. If we move to the next slide, we comment a bit the revenue performance. I think you can appreciate the good result we achieved, EUR 542 million of revenues with an increase of 23% compared to last year. This revenue growth was mainly driven by the space launch, but also the space propulsion contributed quite significantly, and also the defense segment increased and contributed to this outstanding result. In terms of breakdown by activity, you can see that in 2025, the production activity has achieved 58% of the total revenue, with the 42% coming from the technical development projects. If we move to the next slide and we comment the profit and loss. First of all, the initial comment is that along the various lines we have recorded double-digit growth compared to 2024. We have already commented the net revenues. We have achieved an EBITDA reported of EUR 42 million with a percentage margin of 6%, growing from the 5.8% of last year. This EBITDA result has been possible, has mostly been driven by the growth on the revenue, on the revenue side. We have also achieved a good EBIT reported amounting at EUR 12 million, increasing by 43% compared to last year, despite the higher depreciation costs related to the increased flight cadence for Vega C and the IT improvement projects. It is worth highlighting the good result on the net income. We achieved EUR 11.6 million, with a huge growth compared to last year. This is the result of the good operating performance, but also by some financial income we generated from the average cash on hand. Speaking about cash, we move to the next slide, and we comment a bit on the net financial position performance. As anticipated, we achieved this record positive net financial position of almost EUR 600 million. If we take away for a while the contribution coming from the net proceeds from the share capital increase, it is worth highlighting that what we call the notional net financial position, the net financial position generated by the business, has improved quite significantly from the EUR 90 million of last year to almost EUR 220 million this year. This also has been possible because we have collected a significant amount of advance payment related to the orders booked, particularly in the fourth quarter of last year. Moving to the next slide, here we can comment a bit on the balance sheet. I think it's worth highlighting that our working capital that, as you know very well, is structurally negative, has increased along this line by EUR 142 million. In terms of our net fixed assets, they have increased as a result of the CapEx. We are keeping investing to support our business and to support the growth of our business. It's worth mentioning also an initial spending in the Avio USA Related to the Avio US project that we have presented to you in other occasion. At the end, it's worth mentioning that the equity of the company as a result, mostly, of the net, the share capital increase, has achieved more than EUR 700 million. Moving to the next slide, you can appreciate the quarterly performance of the company. The EBITDA has consistently grown throughout the year, achieving EUR 42 million at the year-end, with the typical, the usual seasonality of our company, of our business in the fourth quarter. The net financial position has been consistently positive and much higher compared to last year, until the fourth quarter, for the reason that I explained above, it jumped to almost EUR 600 million net financial position. Now I leave the floor again to Giulio to conclude the presentation. In terms of the outlook, let's have a look at what we plan on doing in 2026, in particular on our U.S. projects. You may recall, we have identified the site where to erect our new plant to work on our main customers. Now, I think we have penciled pretty well what we need to do, in particular with the U.S. Army, which we will start doing in Italy and subsequently move to the U.S. as well. With Raytheon and Lockheed, with Raytheon, we have started on the Mk 104 project. Let me highlight to you, by the way, that Mk 104 is the motor that powers all the Standard Missiles which are on board U.S. Navy ships. You have as many as nine or 10 destroyers in the Gulf presently, each of which has almost 100 missiles on board, and you can see them flying almost every day. That's where there is most of the missile consumption over these very hours right now. Additionally, we had signed, as you recall, a non-binding term sheet with Lockheed Martin, which serves mostly ground-based systems, largely for the Army. We will work on these customers and on the erection of the plant. Let's see in more detail what we will do in 2026. Starting from what we have already signed with Raytheon and Lockheed Martin, we will have to work to be more precise on the volume forecast. Our expectation guidance is not clearly based on the latest forecast expectation, which may exceed what we see by a factor of two or three, as I told. Yet we need to be careful on setting the expectation on the number, especially when we talk about firm order backlog. Anyways, we need to move from these non-binding agreements to binding contracts as quickly as we can, as much as we have done with the U.S. Army, leverage the incentive package we have in Virginia to get going with our investment alongside the proceeds from our capital raise. In addition to that, we will see whether there is any more attractive financing opportunity to close the loop on what we need to expense. As we progress in the plant design, we have lots of expenses for the engineering effort around the finishing of the design of the plant. We are about to place the long lead time orders on the machinery for the equipment to be installed in the plant. At some point, we will kick off work with the general contractor by breaking ground and moving along with the construction of the factory itself. The size of this plant, we had designed from the beginning to be scalable because we had anticipated that it may be a certain size or even twice that size. I'm afraid we will have to think about making a larger one than we had expected. This year we will also work a lot on staffing Avio USA with people that we need to train in time for them to be ready as soon as these programs actually hit the road. Launches in 2026. We will have many more launches of Ariane 6, probably as many as eight we will see, more or less, but a very rapid ramp-up. Lots of activities across mega constellations, Amazon LEO, Galileo, and other military satellites. In Vega-C, we will have probably three launches. Problem is with the scheduling of the launches, some satellites were late, so we are likely to have something like five flights in 2027, and three this year, or something like that. I think it'll be, anyway, a busy, interesting year, with a new Korean satellite, with more, another launch for the European Space Agency. A lot of interesting activity. Now, coming to the dividend, as I said before, this is a little bit a history of what we distributed as dividend. Maybe not the most important of your worries at the moment. Nonetheless, as the board of directors, we have proposed to the shareholder that the shareholder be needing a distribution of EUR 6.8 million, which represents a payout ratio of 58.6%, which is definitely in the upper part of our dividend policy, which is between 30% and 60% payouts. Now, guidance. Let's be careful on this one. Backlog. Backlog, for the time being, based on the estimates we have for firm contracts to be signed within the year, we see the backlog being in the range between EUR 2 billion and EUR 2.1 billion. This does not incorporate the potential upside we are actually seeing in these very weeks, okay? This number may be higher. What we don't know yet, we will probably consolidate over the next few weeks, is how quickly the customers can convert demand growth expectation into firm orders. I remind everyone that what we put in backlog is firm orders for signed contracts, not soft agreements and shake hands. That's the reason why we're being cautious on forecasting the backlog. Keep also in mind that in the meantime, we are growing the revenues, so what goes down from the backlog is increased revenues. On the revenues, I think we feel comfortable that we would likely be in the upper part of the range we have outlined here. We had explained in our plan that we would expect growth sort of 10% annually across the decade. I think we will target to do the same, so we will likely be in the upper part of this revenue range. You have seen that also this year, we beat our own expectation on revenue growth, so we are quite confident on that. Relative to the profit, here you see quite an ample range. First of all, in the plan, we said the EBITDA of the next three years will be flat because it will be the result of a growing European EBITDA and a growing cost on the U.S. side, meaning a negative EBITDA, the consolidation of which leads pretty much to a flat scenario in the short term, before the U.S. operations are at full fruition. We will stay within such plan. The costs of running Avio USA in 2026 will be higher than in 2025. We had about $4.5 million in 2025. We will have between $7 million and $9 million in 2026 as we grow the team, train the team, and so on, build the factory and whatever. Moreover, one warning for the time being is on the risk for potentially high energy costs. Again, we cannot speculate on that. The price of gas has more than doubled over the last two weeks. This may stay or may go away, we don't know. We gotta be careful with that, and that is the reason why we have left a bit of an ample range on EBITDA reported. Of course, we will do the best we can to be in the upper part of this range, as one may expect. The net income will largely be driven by both operating performance and financial performance on whatever cash will remain available. The proceeds of the capital increase will be used to start investing in the U.S. factory. The remaining part will be leveraged for financial income. We will see what type of financial income we can generate. We've been successful so far. If the interest rates stay the same, that will also contribute to net income. This guidance is good as long as we can potentially update it if we have more accurate information. We expect to see continued growth in the course of 2026 and of course, the years to come. Thank you. I'll give it back to Nevio to conclude. Thank you, Giulio. Thank you, Roberto, for such a complete explanation. We can open now the Q&A session. Thank you. This is the Chorus Call conference operator. We will now begin the question-and-answer session. To enter the queue for questions, please click on the Q&A icon on the left side of your screen. When announced, please click Continue on the pop-up window. If you are connected in audio only, please press star one on your telephone. The first question is from Chloé Lemarié of Jefferies. Please go ahead. Hi. Sorry, can you hear me? Yes. Okay, perfect. Thank you for taking my question. I have three, if I may. The first one would be just on the order backlog guidance. At the low end, it would imply, roughly, EUR 500 million of order intake in 2026, when obviously you mentioned the ESA order potential over 2026 and 2027 should already be around EUR 600 million. Could you maybe talk to what led you to settle on this guide, how we should think about the order phasing prior to obviously the big increase in demand from defense? The second question is on your comments on missile demand in the U.S. increasing by a factor of two to three compared to your prior view. Can we maybe talk about the timeframe before that incremental demand could materialize and how it affects your footprint planning in the U.S.? Last one. On the energy cost, could you maybe share the sensitivity of your cost base to energy prices, please? Thank you. Thank you very much, Chloé. First and foremost, what I call backlog rollout, okay? Now, we have to keep in mind that our backlog contains a couple of things, backlog from space and backlog from defense. Let's talk about that from space first and then defense. The backlog from space is composed of things that roll out pretty much linearly as a function of time, okay? We have backlog from launches for Vega. We have backlog for research activities that will come as a result of the European Space Agency ministerial conference and such. This will roll out in the course of 2026, and it's somewhat predictable, allow me to say. We may be off, you know, by one month, two months. It's predictable, okay? The number is well known and so on. If we rush to sign the contracts, we can be a little bit faster, but we know what is the total amount, right? For example, for the development activities, the EUR 600 million need to come. If we can force everything to happen to sign the contracts in 2026, we will get EUR 600 million worth of contracts, which is far more than you see now in our expectation for backlog. Typically, what we see is that it takes us a little bit more than a year to convert a European Space Agency Ministerial Council subscription into contracts. That's why we've been a little bit cautious on that. On the defense side, for us, it's far less predictable how fast we can convert demand into firm orders. Why that? First of all, in defense, as you know, we are a supplier. We are not a prime contractor. We do not have a dialogue most times with end users, right? Except for our relationship with the U.S. Army. As you have seen, the U.S. Army, which is an end user, went very rapidly from idea to firm contracts. For the rest of the work we do with prime contractors, Lockheed Martin and Raytheon, the conversion from watching the TV news, seeing the missiles fly and getting an order, the roadmap is a little bit longer because they need to get money from their end customers. Their end customers, by the way, need to get money from U.S. Congress, then they need to get an order from the government, then they flow it down to us. That's why this is being longer, okay? There is no doubt whatsoever that the demand is more than what we put in our backlog guidance. There is no doubt on that. My visibility of that becoming a firm net order backlog within the year is fairly minimal at the moment. That's the reason. I have no worries whatsoever on the fact that the backlog will ultimately grow, but on the timing on that, the situation may be that we are at EUR 2 billion this year and at EUR 3.5 billion next year. Something like that, okay? I would love it to be linear, but actually is not, okay? It's difficult to predict. The third point, the story of the energy costs. We have seen this surge in prices before when the war in Ukraine started a few years ago. This is another peak, unprecedented peak, okay? You know, until a few weeks ago, we were thinking about a price for gas, which was EUR 36 MWh. Now, you know, we may be somewhere between EUR 50 and EUR 60, or even EUR 70. It may be a spike, and then we go down. Quite frankly, I wouldn't do planning in the very middle of what is happening right now. We need to, as I said before, wait until the dust settles and watch what is happening. What is the maximum impact that this may be? It's relatively modest. It's between maybe EUR 2 million and EUR 2.5 million, something like that. Something that we can probably offset with some other opportunities to have more profit than anticipated. We are not too worried about it. It's important that we flag it as one of the key issues, and that's pretty much all I can say at the moment. Very good. Can I just ask maybe on the footprint planning in the U.S., would you have to expand further on what you're already planning to meet that higher demand? Or can your facility essentially extend quite significantly? The plant is designed to start from a capacity of 700 tons of propellant per year. Now, it can be upgraded to twice this capacity or even three times with a relatively low investment compared to the initial one. Because, of course, most of the initial investment is for the infrastructure, the land, and most of the civil works and so on. Putting more equipment at work will not be as expensive. In the meantime, as you have seen, we are also collecting attractive financial incentive packages to support further growth in the plant size. In fact, the package that we have been awarded, for example, from Virginia, already is stretched towards the possibility of reaching an even larger plant than we had anticipated. We're not very worried on the possibility that this plant may be larger because should this be the case, then there will be more funding, more cheap funding available to support it. Okay? Alongside the procedure we already have from the capital increase, I think we're pretty well covered. Very clear. Thank you. The next question is from Martino de Ambroggi of Equita. Please go ahead. Yeah, thank you. Good evening, everybody, and sorry if I repeat some questions because the connection is very bad for me. Sorry. So on this order intake again, could you split in your full-year guidance what is the split between R&D, military business? Specifically, how much of the EUR 600 million presumably is more reasonable to be included in 2026 rather than in 2027 regarding the European Space Agency orders? On the energy costs, if I remember correctly, during the previous crisis, you hadn't any automatic adjustment in the new contracts, or this has to be managed in a different way? I didn't quite get the last question. Sorry, can you repeat it? Yeah. For the energy cost, if I remember correctly, in the previous Ukraine crisis, you were not able to automatically adjust the price for your customers for the higher cost of the energy. Is it changed the situation now, or you are still working on? Okay. Let me start answering from the first question. A couple of important points on the order backlog. In 2026, the mix between the expected intake between space and defense will continue, in my opinion, if nothing changes, to be between 65% space and 35% defense. Okay? This may be slightly different if the accelerated programs that they have in the U.S. will actually lead to signing first contracts very quickly. Which, as I said, it's a question mark because so far the process has been lengthy. Okay? Reliable, but lengthy. On the space side, you have to take into account that last year, we just signed in December the Ariane 6 P120 contract, and that we can't sign every year. We sign every two to three years, more or less. It's a batch, right? That one we will for sure not have another order to top that up. Again, as I said before, the intake for 2026 may be significantly more than we expected if the defense side accelerates turning into firm orders. Now, keep also in mind on the net order backlog side, in the meantime, the revenues will go towards EUR 600 million. You subtract from EUR 2.2 billion the EUR 600 million, then you need to add another, you know, EUR 500 million, EUR 600 million, hopefully EUR 700 million or EUR 800 million, and that's where you get with the order backlog at the end of 2026. Now, regarding the energy costs, you know, we don't have a formula that can anyway adapt to such unprecedented changes in the price of energy. No one price adjustment formula would account for a doubling in the cost of gas. There's no way. Typically, contracts say that beyond a certain point, you can sit down and renegotiate if you want, but it's unlikely that you can automatically adapt to twice the cost. However, with respect to what we had four years ago, you made a call that we had a different energy generation infrastructure here in Colleferro. Since then, we have significantly changed our energy production assets in partnership with Enel X. Now we have far more efficient steam generation capacity than we used to have, which is what burns most of our gas. Therefore, we. That's why we expect that even if we have to have something like a doubling in the gas costs, we will not suffer all that much because we have a far more efficient energy generation capability today than we had four years ago. The next question is from Andrea Bonfà of Banca Akros. Please go ahead. Hello. Good afternoon to everybody. I have the following question. First of all, in the light of the sense of urgency coming from the surge in the stock buys in defense, can you accelerate the timeframe of the U.S. factory in terms of construction activities and then initial operating phase. The second one, if again in the light of the urgency of production requirement, some of your U.S. clients can decide to produce locally in Italy. The third one is a detail, but in the fourth quarter of 2025, your defense sales were flattish, slightly negative. How can we project defense sales to grow this year? Just to have an idea. In case I will come back for other question. Thank you. I will start with the second question. Defense sales are set to grow the most in 2026. What we expect to see out of our growth between 2025 and 2026 will largely be growth in defense deliveries. Okay. I think that will be driven largely by the volumes of Aster 30, CAMM-ER, and now also with the U.S. Army programs that will start to ramp up this year in production already. Okay. Now, in fact, US Army has used with us an approach that the other customers have not. They very much like you said, they realized that the matter was urgent. They didn't even bother to wait for the US factory to be ready. They said, "Okay, you manufacture that in Italy." Now, interestingly enough, in these last few days, I'm getting pretty much the same message also from the other U.S. customers who are saying, "Okay, it's good that you do the factory in the U.S., but in the meantime, if you can, and even for the future, we would like to keep some of the production in Italy as well." I think the opportunity is larger than before because I don't think they find many other providers who can have a new factory in the U.S., plus an existing factory here. Here we have the capability of upgrading our capacity much faster than anywhere else, because of course, the plant is already up and running. As you have seen, we have been growing defense deliveries quite consistently over the last few years. We can continue to do that. I think what we will see in the future, what I hope we will see is that also other customers will start leveraging our Italian capabilities more quickly, and then later we will transfer in the U.S. That's what leads me to your first question. We will try to accelerate the U.S. factory construction as much as we can, but there are no factories that can be erected overnight, and therefore it will take time to finish up with the plant. That will not undermine our ability to deliver to customers for what I just said. The next question is from Gabriele Gambarova of Intesa Sanpaolo. Please go ahead. Yes, thank you. The line is very bad. Sorry, from my side. The first question regards the sales guidance, because on average you are, let's say, forecasting a 6% growth when you are telling us that the ramp up in tactical propulsion is ongoing. I guess that growth will be pretty sizable. Then you have, let's say, the doubling in the number of Ariane missions for space, while Vega is expected to remain almost flat. It seems to me that this revenue guidance is very cautious. I don't know if you can comment on this. Regarding margins on EBITDA specifically, if you have a, let's say, a bigger component of Ariane, in theory the mix should improve, so margins in theory should improve. Even on this, any comment would be appreciated. Lastly, if you could quantify the factor of the U.S. plant costs embedded in your 2026 EBITDA guidance. Thank you. Thank you. Let's start from the first point. I agree with you, Gabriele, the revenue guidance is cautious. Okay? I think, as I said before, when I illustrated the guidance, we will be in the upper part of the guidance range, possibly exceeding that, as we typically do, right? Sometimes that surprises me too, that we exceed the revenue guidance. This year, we overachieved guidance by a lot. I think our upper range was EUR 480 million back in March last year, we ended up at EUR 540 million. There is a possibility, quite frankly, that we go beyond EUR 600 million of revenues. I do not deny that. It's a possibility. We're being cautious because the rate of increase in each of these products is very high, so we want to be diligent and deliver good quality products to our customers. We got to be careful that we maintain the same level of quality while growing the volume so fast. Okay. That's very important. I prefer to go, you know, one step at a time, be safe on what we do, and that's the reason why we projected a cautious guidance. I agree with you, it is cautious. On the EBITDA, yes, indeed. The EBITDA is improving because if you look at the midpoint of the EBITDA guidance and you add up to that something like $8 million worth of costs from the US, okay. You would end up with an EBITDA 2026 from Europe, which is nearly EUR 43 million. Which is significantly higher than what we have today. If I were to project just the growth of the European side of the EBITDA, it would be a 20% EBITDA growth. Okay. At the same time, we are investing in the U.S., and not everything we do in the U.S. we can capitalize, such as the cost of people. That's why the cost of people in the U.S. were $4 million in 2025, will be $8 million in 2026. That's it. What we said from the beginning when we presented our plan is that we will finance part of the startup of the U.S. activity through the growth of the European EBITDA. Okay. That's pretty much what we'll do. Okay. Thank you very much. If I can follow up on pricing and space. I mean, do you see any Sorry, we could not hear you. Gabriele? Gabriele, the line dropped. The next question is from Alessandro Ciarnelli of S. Muoio & Co. LLC. Please go ahead. Yes. Good morning. Most of my questions actually have been asked and answered. You touched upon them already, but I'll just ask again. $600 million of cash, and I think you have $100 million from possible incentives. I think you were talking about there would be possible additional needs depending how fast you go on the scale up the infrastructure. Can you comment on that? You know, do you really need something more at this time, or you think that now you're set with the cash you have? That'll be the first one. The second one, just tying up with the other questions that were asked. Assuming that your suppliers are able to deliver what you need, would you be able, the infrastructure you have today, to provide the number of rockets that, you know, the demand is there? That's it. Thanks. Okay. First of all, in terms of cash, keep in mind that we have EUR 600 million of cash total, 200 which are working capital. Give or take, you know, maybe it will be 150 will be working capital. Which means that this money we need to transfer to the suppliers as quickly as we can. We will consume that cash by just putting that back into the suppliers and allowing them to do what they need to do for us to be able to accrue revenues. Because the way we accrue revenues is by moving money to the suppliers, letting them invoice to us, let us invoice to customers, and that's the way we generate revenues, right? What we have in terms of cash for the investment is sufficient for what we have to do today. If we need more cash, we will source more cash. I'm not worried about that, as I said before. By the way, we will not need that tomorrow morning, right? It's not an urgent need at all, okay? That said, we will look for as many possible sources of cash that are available at a cheap rate, because what we need to do for investors is to make sure we have the cheapest possible cost of capital. We will anyway continue to look for sources of capital, because if we end up in the demand scenario that I just portrayed to you, and we will have potentially to invest another EUR 200 million, then we need to make sure that this EUR 200 million comes at the cheapest possible rate. That's why we will keep on being very careful on the possibility of cheap sources of capital. Now, in terms of ability to deliver with our supply chain, that's a very good question. You know, so far, we have been growing steadily our delivery rates, both on the defense side and on the space side. On the defense side, in the past, we have done far more than what we have done today, so we are confident that we can do that. The infrastructure we have in Colleferro has not been built in a day, but in 100 years. We have deposits and buildings and things that are available. They were used in the past. They were temporarily kept on hold over the past few years. We can quickly revamp a lot of them and dedicate them to production if we need. Just to give you a measure, here in Colleferro, we have as many as 300 operating buildings. But we have more buildings, maybe another 100 buildings available that are not operational anymore, but that we can quite quickly revamp for our purposes with relatively modest capital expenditure. Again, you pointed out one important element, which is, are the other suppliers, are our suppliers ready to deliver? That's a very good question. You made a call that when we raised the capital, we said to ourselves, "Okay, the largest part of this money will be used for the plant in the U.S. True. A portion of that, we said we may want to invest in vertical integration with our suppliers. We may want to do a few selected investments in the supply chain to make sure that we secure the sources of supply we really need. Okay? We don't need to do big investments in M&A or anything like that, but we need to make sure that we do a few selected investments to make sure we round off our ability not to be under the limit of one point of supply that falls below the expected ability to supply. Thank you. The next question is from Tulu Yunus of Lord Abbett. Please go ahead. We cannot hear you, Tulu. Please click on Continue on the pop-up window. Mr. Yunus, click on the Continue button on the pop-up window that should be appeared. The next question is from Carlo Maritano of Intermonte. Please go ahead. Good evening, everyone. I just have three questions. The first one is related to investments. Could you give us an indication of the level of investment plan for 2026? And in particular, should we expect them to be mainly related to the new U.S. facility or rather to unlocking additional production capacity in Italy? The second one is related to the incentives from Virginia. Could you clarify the form they will take? For example, they will be tax credit, direct grants, or a combination of both. The final question is regarding potential federal incentives, what kind of timeline should we expect? In previous calls, it seemed that the process might take longer due to the changes in the counterparts you were interfacing with. Are these things moving any faster now? Thank you. Okay. Carlo, let me start from the first question. On the CapEx. The second one is on the incentives for Virginia. Let me start from the incentives of Virginia. The incentives for Virginia is a very articulated package which comprises some tax cuts on different things, on the purchase of equipment, on the income tax, on many other dimensions. Then there are some funds available for the training of the personnel, which is extremely important in my view, because it's what will drive our ability to actually find people, because they will be incentivized to be completely reskilled to do this job, and so on. A small portion of the Virginia investment will also be grants, okay? Straight grants. Now, regarding federal funds, the situation is more TBD because the policy for federal grants has largely changed in the course of 2025 since the new administration came. We are discussing with the federal government a potential support. They have very, very cheap sources of financing available. Okay? We will see how big a facility we can get and how quickly we can get one. Again, I think there will be money there for this purpose. I know for a fact that there is more money available than projects to use all of this money. We need to be consistent in pursuing this funding. I think this will add to the rate of return of our investment. Now, the size of what we can source, I'm not worried about right now, because as I said before, we are not in urgent need of cash. We just raised equity and so on. The reason why we are continuing to pursue these sources is that we want to stack capital in a way that the overall cost will be competitive relative to our cost of capital, right? Rather than rushing to get cash, we are rushing to get the right cost of capital. I would leave it to Roberto to answer to you on the CapEx for 2026. The range of magnitude of the CapEx we are planning to spend in 2026 is EUR 90 million, including something around EUR 50 million related to the U.S. plant. We need to start acquiring the land, and then we need to start ordering some long lead time items that take a while to be provided. The rest, the complement to that, is the usual capital spending we are incurring in the Avio Group related to both tangible and intangible activities that the group is expected to perform. Thank you. The next question is a follow-up from Chloé Lemarié of Jefferies. Please go ahead. Yes, thank you. Actually, I'm filling in for Tulu who kindly sent me his questions. The first one is on the order guidance in defense. Do you have anything baked in from Raytheon or Lockheed, or is it strictly what you see from the U.S. Army? The second one is could you give us an idea of how scalable the Italian factory is at this point? How is it able to potentially serve the U.S. Defense demand from there? Thank you. The order backlog currently incorporates. It's largely U.S. Army only. Okay. On the guidance for 2026 backlog at the end of 2026, I think the question was. Well, you know, there is definitely something from Lockheed Martin and Raytheon. Not much more from U.S. Army, considering that in U.S. Army, I mean, there is a portion that we just announced, right? That you know of, and we quantitatively indicated that. I don't think we will likely get other things near term from the U.S. Army. It may as well be, you know, surprises are possible. It incorporates largely Lockheed Martin and Raytheon. Okay? What else? Scalable Italian factory. Yeah. The Italian factory is scalable for the reasons we said before. We had anticipated already in previous requests that today we deliver between 200 and 300 defense motors per year. We can sort of comfortably reach 600. We are projecting already by the end of the decade to be close to 1,000. We can go beyond that. You have to keep in mind that what we process in terms of propellant every year for space is just like one order of magnitude or two orders of magnitude more than what we do for defense. Scaling up capacity for defense is not a question of capacity to cast propellant or anything like that. It relates more to the availability of tooling specific to each and every product. Because while in space, we do just a few motors every year of very large size, here, to get to large volumes in defense, you need to do very high volumes of very many different products from one another. It all stays on our ability to source the proper tooling and to equip the plants with the right set of tools specific to each and every project. Perfect. Thank you very much. For any further questions, please click on the Q&A icon on the left side of your screen or star one on your telephone. Gentlemen, there are no more questions registered at this time. Excuse me, there's one follow-up from Martino de Ambroggi of Equita. Please go ahead. Just a follow-up on the last question on the output capacity in Europe. If I remember correctly, you are adding EUR 50-100 million of CapEx for the European plant expansion. Yes. Correct. 50, 100. Yeah. With 50, 100 translates into how much higher production? Well, depends what we are going to do with that. As I said, the destination of these funds, we have not yet allocated, you know, million by million. Okay? We largely depend on what the customers ask and so on. We also anticipated when we presented the plan that you were focusing on, that a portion of this money may well be spent for vertical integration within the supply chain. Not necessarily within the Colleferro premise, but maybe in acquiring one, two, or three small, very small suppliers to make sure that some key supplies are completely under our control in terms of ability to deliver, et cetera. Keep in mind that most of the capacity upgrade for production rates on each product is typically directly paid by the customers. Even, for example, with MBDA, the increase in capacity is part of the pricing of the contract. It's not part of our CapEx. The CapEx we expense is a surrounding CapEx, allow me to say, that helps us with our infrastructure to make sure that we can actually deliver a higher rate and/or some investment in vertical integration within our supply chain. Just to mention to you a few things. If you want to make so many motors, we have need for several metallic parts that we source from suppliers, et cetera. Now, maybe one supplier is not sufficient, you need to have two or three and so on. At some point, we will be better off acquiring a small metallic part manufacturing shop and dedicating that 100% to what we do than trying to source from 4, 5, 6 suppliers here and there with the risk that they don't deliver, you know? It's not gonna be a massive M&A effort, but rather something, as I said before, to make sure that our vertical integration is robust and our connection with suppliers is robust. Gentlemen, this was the last question, so back to you for any closing remarks, if any. Thank you. Thank you very much for your attention. We can close the call at this time. Thank you. Thank you also from me, looking forward to update to you in the coming weeks. I think we will have the shareholder meeting towards the end of April, 28th of April. Following that, we will have our first board of directors. We are renewing the board of directors at the next shareholders meeting. Beginning of May, we will look at the results of the first quarter, which as you know, it's typically not very indicative of what is happening during the year, but that would be a good occasion maybe to review where we stand with our expectations for growth, for order backlog, et cetera.