Envipco Holding N.V. (ENVHF) Q2 2026 Earnings Call Transcript

With EUR 26.1 million top line, we have shown top line growth. That's very positive, but it has been below what we had expected. We had expected a faster growth, and we had invested for that faster growth. That investment sits predominantly in service teams and in assembly capacity, where we now see under-absorption and that puts pressure on our margin and our bottom line. We need to improve that. Throughout the presentation, though, you will see that investment in growth and delivery on growth is a balancing act that affects the quarter. It doesn't impact the long-term outlook. We are growing in many European markets, and we have built a solid backlog in the U.K. with confirmed orders, and we need capacity to produce that. So investing for growth remains very important. Over the past quarter, we have been converting cash into inventory, and we expect in the next quarters that, that will be turned around again.

Some operational highlights. I have started at the company. We have continued to deliver wins in the markets that started rolling out DRS recently like Poland and Portugal. We've announced a number of major wins in the U.K., going well over 5,000 machines now. We have a record quantum development deployment in the Netherlands. And at the end of this quarter, we ended our growth with just shy of 650 employees. That's the short growth story of Envipco.