Saipem Spa (SAPMF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, this is the Coruscall Conference operator. Welcome and thank you for joining the SIPEM first half 2026 results. As a reminder, all participants are in listen-only mode and after the presentation there will be an opportunity At this time I would like to turn the conference over to Mr. Alessandro Puliti, CEO of Saipem. Please go ahead, sir. Thank you and good morning. Thank you for joining the presentation of Saipem first half 2026 results. I'm here in Milan today with our CFO Paolo Calcagnini and with the other members of the top management team. The agenda for this session is the following. I will start with an overview of the key operational and financial highlights of the quarter. Paolo will then deep dive on the financial performance and I will conclude the presentation with few closing remarks. We will then open the floor to your questions. Let me begin with the key highlights of the second quarter. Saipem reported revenue of 3.8 billion euro in Q2, representing a growth of 8% quarter on quarter and 3% year on year. Despite the conflict in the Gulf, we made strong progress on all our projects, recording 1.2 billion euro revenue in the Middle East. We list project execution was robust, we suffered extra cost of 70 million euro because of the conflict. This impacted our profitability, especially in the asset-based services. Adjusted EBITDA in the second quarter stood at 402 million euro, representing a margin of 10.5%. Without these extra costs, we would have posted the second highest EBITDA since 2022. We are currently discussing with our clients about these extra costs and we think we will be able to recover a good portion of them. Notwithstanding the disruption brought by the conflict, our cash flow conversion keeps on improving. In the second quar...