Materialise NV Sponsored ADR Aktie

Good day, and welcome to the Second Quarter and Half Year 2026 Materialise NV Financial Results Conference Call. [Operator Instructions] Please note, this call may be recorded.

I would now like to turn the call over to Jody Burfening, Alliance Advisors Investor Relations. Please go ahead.

Thank you, Michelle, and thank you, everyone, for joining us today for Materialise's quarterly conference call. With us on the call are Brigitte de Vet-Veithen, Chief Executive Officer; and Koen Berges, Chief Financial Officer.

Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic financial and operational performance for the second quarter and first half of 2026. To access the slides, if you have not already done so, please go to the Investor Relations section of the company's website at www.materialise.com. The earnings press release that was issued earlier today can also be found on that page.

Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent day.

Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent report on Form 20-F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings release and at the end of the slide presentation.

With that, I would now like to turn the call over to Brigitte. Good morning, Brigitte.

Good morning, and good afternoon. Thank you, everyone, for joining us today. You can find the agenda for our call on Slide 3. First, I will summarize the business highlights for the second quarter of 2026. Then I will pass the floor to Koen, who will take you through the second quarter and half year financials. Finally, I will come back and explain what we expect the remaining months of 2026 to bring. When we've completed our prepared remarks, we'll be happy to respond to questions.

Moving to Slide 4 for the highlights of the second quarter 2026. I'd like to open by drawing your attention to our first half year report now available on our Investor Relations website. This report reflects our compliance with the European reporting requirements, requirements that, as announced in our first quarter earnings call, led us to deliberately schedule this second quarter earnings release later in the quarter.

I'm also pleased to announce some changes in our Executive Committee, taking place as of early September. Those changes will further strengthen our leadership team and strategy execution. Annelies Missotten will join us as Chief Human Resource Officer to further strengthen our human resource agenda. Annelies brings more than 30 years of international HR leadership experience with a strong record in shaping people and organization strategies that support business growth, transformation and employee engagement.

Throughout her career, she has worked primarily in the life science sector as well as in telecom and fast-moving consumer goods in both Belgium and international environments. Most recently, Annelies served as CHRO of Galapagos, now Lakefront Biotherapeutics, where she acted as a strategic adviser to the CEO and Executive Committee and led the HR function across all disciplines in an international sector. She plays an important role in supporting the company through periods of growth, transformation and organizational change while also strengthening HR as a strategic partner to the business.

She brings a wealth of experience, strong energy and a people-centered leadership style that will help us further our people agenda across the organization.

Second, Philippe Verlinde will join us in the newly created role as Chief Digital and Information Officer. This new role reflects the strategic importance of digital capabilities to simplify, scale and execute more effectively. Philippe brings more than 35 years of experience in technology, digital and transformation leadership. He spent 26 years at Philips and most recently, he served as the Chief Digital and Information Officer at Barco, where he led IT and software across the global footprint.

Throughout his career, he led large-scale technology, product and digital transformation initiatives across engineering, consumer electronics and health care technology. He brings deep experience in cloud and connected platform capabilities as well as AI to further drive our digital agenda across our units and markets.

We are also making a leadership change in medical. Our medical unit is delivering strong results as evidenced by the strong growth this quarter. In addition, we see significant opportunities ahead. To fully capitalize on these opportunities, we have decided to look for a new leader for the Medical segment, and Koen Peters will leave the company in September.

The second quarter also marked the 30th anniversary of Materialise in the United States, a market that has been central to our growth strategy from the beginning. Over the years, we made several strategic acquisitions in the U.S., including OrthoView, the market leader in orthopedic digital preoperative planning software, Link3D, an additive workflow and digital manufacturing software company; and Identify3D, a company that develops software to interact, distribute and trace the flow of digital parts across complex supply chains. Today, we are one of the leading players globally, and our U.S. office and team have been very instrumental in our global success.

Looking now further at our business segment highlights at the second quarter on Slide 5, starting with Medical. In the second quarter, we saw further evidence of the growing maturity of personalized care and 3D printing during the eighth edition of our 3D Planning and Printing Hospital Forum in Leuven. Where we welcomed around 200 surgeons, radiologists, clinical engineers from hospitals across Europe and beyond to discuss the use of 3D printing in the hospital.

What stood out in this year's discussion was the clear shift from what is the value of personalized 3D solutions to how can we scale this in clinical practice. The continued rise of in-house hospital 3D labs is evidence that 3D printing is becoming more established and operational. Now the discussions also confirmed that Materialise is at the center of this trend, not only as a software and service provider, but as a long-term partner, helping hospitals integrate personalized care more broadly into daily practice.

In the second quarter, we also announced an investment in Replasia, a Belgian med tech start-up developing personalized 3D printing solutions and anatomical analysis software for hip preservation. Our goal is more personalized, less invasive orthopedic treatments that help patients maintain their natural anatomy and their quality of life for as long as possible. Our current hip portfolio is focused on replacement. Strategically, the investment in Replasia strengthens our position across the full spectrum of personalized hip care and complements our existing portfolio to hip preservation solutions.

Preservation will play an important role as the market shifts towards less invasive approaches. A similar shift to less invasive approaches is happening in markets outside of orthopedics. One example in CMF, cranio-maxillofacial is Minimally Invasive Orthognathic Surgery or MIOS, a technique that allows surgeons to perform jaw surgery through smaller incisions. Smaller incisions mean that more patients will opt for surgery. At the same time, smaller incisions require a high level of precision during the surgery, and that is an area where Materialise is well positioned with our software and device portfolio.

A strong proof point of our position was the International MIOS meeting in Brazil in June, which brought together more than 200 maxillofacial experts from 13 countries and where we train surgeons in hands-on cadaver labs to perform the surgery in a safe and effective way.

Turning now to Software. In the second quarter, we officially released CO-AM Pro to the market on May 15, 1 month ahead of schedule. CO-AM Pro is our cloud-based solution integrated with Magics that brings AM data management and build preparation together in one workflow, making it easier for teams to collaborate, standardize processes and automate recurring tasks. It centralizes AM data, giving users one source of the truth of the data across teams.

We also formally released the CO-AM Bricks offering, our automation platform that helps users reduce manual work, for example, in the new product introduction process and helps embed AM know-how more easily into their daily operations. Early customer onboarding since launch gives us encouraging initial validation of the offering. In addition, we have started the early adopter programs of CO-AM NPI and CO-AM Enterprise. Together, these steps mark the structural expansion of our Magics installed base into a connected platform that grows with customers over time.

Turning to Manufacturing now. Following the agreements we announced at the end of the first quarter, we completed the transfer of our RapidFit business to its management team on April 30 and the transfer of our Eyewear business on July 1. With these closings, both businesses now continue independently under the existing leadership with greater focus and flexibility to pursue the next phase of growth.

For Materialise, these completed transactions are an important step in sharpening our portfolio and concentrating capital, resources and leadership attention on the business lines with the strongest long-term scaling potential. In the case of Eyewear, we retain a 20% minority stake, reflecting our continued confidence in the business.

Looking at the second quarter results in Manufacturing, Aerospace remains a strong growth area for us with 40% revenue growth realized in the second quarter. This reflects our strong position in this space. A good example of our capabilities is a recent project with Lufthansa Technik. The project involved a small part in an aircraft cabin component that repeatedly failed in service and could not be sourced individually, meaning the entire assembly had to be replaced each time.

By redesigning that part for additive manufacturing and producing it as a certified stand-alone component, Lufthansa Technik was able to turn a costly recurring replacement into a faster and significantly more cost-effective repair. Following this project, Materialise was named an official workbench for Lufthansa Technik metal parts, an important proof point of the trust we have built in certified aerospace production.

Also in the second quarter, we continued to build momentum in the defense market. Additive manufacturing can provide real value in defense by enabling spare parts and critical components to be produced closer to where they are needed, reducing dependence on vulnerable supply chains. With our combination of software and manufacturing capabilities, Materialise is well positioned to support that shift.

In the second quarter, the Belgian Cyber Force and the Royal Higher Institute for Defense selected Materialise to lead a research consortium with Sirus and Innocom called Strike IP. The project focuses on secure and reliable digital manufacturing of spare parts, ensuring that digital files remain protected throughout the production process. Our Identify3D and CO-AM technology will be instrumental in this project to build trust in additive manufacturing for mission-critical environments like defense and help make digital supply chains more resilient.

Turning over to Koen now, who will present the financial results.

Thank you, Brigitte. Good morning or good afternoon to all of you on this call. I will begin with a brief overview of our key financial results for Q2 of 2026, shown on Slide 6. In the second quarter, we delivered broad-based growth across the business with consolidated revenue growing by more than 8% year-on-year to EUR 70.1 million. Gross profit increased to EUR 39.8 million, resulting in a gross margin of 56.8%. Importantly, profitability continued to scale faster than revenue with adjusted EBIT reaching now EUR 3.9 million and our adjusted EBIT margin expanding to 5.5%, reflecting stronger operating leverage across our business.

Net profit for the quarter amounted to EUR 3.3 million or EUR 0.06 per share. Our balance sheet and cash generation remain key strategic strengths, giving us the flexibility to invest for future growth. Supported by strong operating cash flow and continued debt reduction, we increased our net cash position to EUR 74.2 million, up EUR 3.4 million compared to the start of the year. We also continued our share buyback program, investing EUR 5.2 million during the first half of 2026.

I will now walk you through these results in more detail. As a reminder, all comparisons are versus the second quarter and the first 6 months of 2025. Slide 7 provides an overview of our consolidated revenue. In Q2 2026, consolidated revenue reached EUR 70.1 million, up by 8% compared to the same period of last year. Growth continued to be led by Medical with revenue increasing by more than 12% in another quarter of double-digit expansion, reinforcing its position as our primary growth engine.

Also, Manufacturing grew by nearly 7% year-over-year, reflecting the benefits of our strategic repositioning towards higher-value series manufacturing. Software, on the other hand, declined by 3%, reflecting cautious customer spending and extended sales cycles in the current industrial environment, although the high level of recurring revenue continues to support resilience of our business model. As shown on the right-hand side, Medical represented 53% of total revenue in Q2 with Manufacturing at 34% and Software at 14%.

For the half year 2026, our revenue totaled EUR 136.3 million, up by nearly 4% compared to the same period last year. Our deferred revenue balance for software maintenance and license fees coming from both Medical and Software decreased in Q2 to EUR 46.5 million, but in line with normal seasonal renewal patterns. The total deferred revenue reported on our balance sheet stood at EUR 63 million at the end of the second quarter.

Turning now to Slide 8. I'd like to highlight the progress we continue to make on profitability. In the second quarter, adjusted EBITDA reached EUR 9.6 million, an increase of almost 16% year-on-year, resulting in an adjusted EBITDA margin of 13.7%. Adjusted EBIT improved to EUR 3.9 million compared to EUR 3.1 million in the prior year quarter, resulting in a 5.5% adjusted EBIT margin. For the half year, adjusted EBITDA rose to EUR 17.6 million, representing a margin of 12.9%, while adjusted EBIT increased sharply to EUR 6.4 million, representing a margin of 4.7%.

This clear margin expansion reflects revenue growth, disciplined cost management, operational efficiencies and a sharper focus on our core growth segments as we execute our strategy across our various business units. These results once more demonstrate the resilience of our business model and our ability to improve profitability despite the still challenging macroeconomic environment.

Let me now turn to our business segments, starting with Materialise Medical as shown on Slide 9. Medical revenue increased by more than 12% year-on-year, and that growth was primarily driven by Medical Devices, which grew 19% across our partner and direct sales channels, partly offset by a minus 4% realized in our Medical Software segment. Adjusted EBITDA increased to EUR 11.6 million, representing a strong 31% EBITDA margin, while we continued to increase targeted R&D investments to support future growth opportunities. For the half year, Medical segment revenue increased by nearly 10% to EUR 70 million, with adjusted EBITDA reaching EUR 20.8 million at a consistent margin of 30%.

Slide 10 summarizes the results of our Materialise Software segment. In Q2 2026, Software revenue decreased, as said, by 3% to EUR 9.6 million, reflecting the cautious customer spending and extended sales cycles we continue to see in the current industrial environment. During the quarter, 86% of our software revenue can now be considered to be recurring, while we are approaching the final stages of our transition from perpetual licenses to recurring subscription model.

Adjusted EBITDA in Q2 showed a decline to EUR 1 million, reflecting the impact of lower revenue combined with ongoing investments in our new product functionality. As already mentioned by Brigitte, in Q2, we fully launched CO-AM Pro ahead of plan, and this release marks an important strategic milestone for our future growth. For the half year, Software segment revenue totaled EUR 19.2 million, 2% below 2025. Despite softer revenue, profitability improved with adjusted EBITDA for the first half reaching EUR 2.1 million, representing a margin of 10.9%.

Turning now to Slide 11. This slide covers our Manufacturing segment. Manufacturing revenue increased nearly 7% to EUR 23.6 million despite the unfavorable revenue impact of the RapidFit divestment. The return to growth reflects continued traction in our strategic focus segments, particularly Aerospace and Defense. This growth in series manufacturing was still partly offset by continued weakness in prototyping demand in Q2.

Alongside top line growth, disciplined cost control drove an improved adjusted EBITDA, landing now at minus EUR 0.3 million compared to minus EUR 0.8 million in the prior year period. This improvement demonstrates that our cost actions and portfolio optimization efforts are beginning to translate into improved operating performance. For the half year, the Manufacturing revenue remained fairly stable, declining only slightly to EUR 47.1 million with an adjusted EBITDA margin -- sorry, adjusted EBITDA improving to breakeven.

During the quarter, we successfully completed the divestment of RapidFit and announced also the sale of our Eyewear business, which in the meantime was successfully closed on July 1. The latter was recorded as an asset held for sale in our consolidated Q2 financials with EUR 0.7 million of asset impairments impacting that we adjusted for. These actions sharpen the strategic focus of our Manufacturing segment and allow us to allocate our capital and resources towards core growth priorities.

With the segment results now covered, Slide 12 outlines our consolidated income statement, showing the drivers behind our improved profitability. Gross profit increased to EUR 39.8 million with the gross margin remaining fairly stable at 56.8%. Operating expenses in the quarter increased by 3.9%, reflecting targeted growth investments while maintaining our overall cost discipline. We continue to invest in innovation with total R&D spending exceeding EUR 12 million for the quarter, which reflects an increase of 11% year-on-year.

For the half year, total operating expenses increased by only 2% compared to the prior year period, with the increase again driven by higher R&D investments, while G&A and S&M remained stable. Other operating income decreased in the quarter to EUR 0.8 million compared to EUR 1.3 million last year. The Q2 2026 figure includes nonrecurring charges of EUR 0.7 million related to an asset impairment on the transfer of eyewear.

As a result of all this, operating profit reached EUR 2.8 million for the quarter. For the half year, this figure stood at EUR 4.9 million versus EUR 3.3 million in the first half of 2025. This improvement reflects the combined impact of revenue growth, stronger operational execution and disciplined cost management. The net financial income for the quarter was limited to EUR 0.2 million, driven by interest income on cash balances and interest expense on debt. The impact from currency fluctuations remained limited in Q2 of this year.

Income tax benefit amounted to EUR 0.3 million. Overall, this resulted in an increased net profit of EUR 3.3 million or EUR 0.06 per share. For the half year, net profit totals EUR 5.1 million or EUR 0.09 per share.

Finally, let's review now our balance sheet and cash flow position, which remains a key strength for Materialise on Slide 13. Our cash reserve at the end of the quarter amounted to EUR 133.7 million, while our gross debt was further reduced to EUR 59.5 million. Our resulting net cash position increased to EUR 74.2 million, up by more than EUR 3.4 million compared to the beginning of this year, primarily driven by strong operating cash flow generation. At the same time, we invested EUR 5.2 million over the first 6 months of this year through our share buyback program on NASDAQ, acquiring close to 1.1 million ADSs, representing 1.8% of our total share base by June 30, 2026.

Compared to the balance sheet at year-end 2025, net working capital components increased by EUR 3.9 million, driven by higher inventory levels of finished products and work in progress, higher receivables and lower outstanding payables. Deferred income increased to EUR 62.6 million, including EUR 46.5 million related to software licenses and maintenance. As you can see from the graph on the right side of the page, the operating cash flow in the second quarter amounted to more than EUR 8 million.

Capital expenditures totaled EUR 2 million, almost all of which is recurring. Even with continued investments in growth initiatives, we again delivered solid free cash flow generation in this quarter, with cash flow after investing activities amounting to EUR 5.6 million. For the half year, operational cash flow was EUR 50 million, significantly up from the same period in 2025. Combined with lower CapEx, this resulted in a free cash flow of more than EUR 11.4 million, almost double of last year.

For the first half of 2026, CapEx totaled EUR 3.4 million and remained well below prior year levels. Recurring CapEx of EUR 2.7 million was primarily focused on machinery, while nonrecurring CapEx fell to EUR 0.1 million -- EUR 0.8 million, primarily reflecting investments in our internal digital transformation programs.

With that, I'd like to hand the call back to Brigitte.

Thank you, Koen. Let's now turn to Page 14. I'll open my remarks with a discussion of our full year 2026 guidance. Our solid first half year performance reinforces our confidence in delivering on our financial targets. The strategic actions we are taking to sharpen our portfolio and to focus on strategic growth segments, combined with the targeted investments we are making across our 3 segments are enhancing operational performance and positioning Materialise for profitable growth.

Accordingly, we are reaffirming our full year 2026 revenue guidance of EUR 273 million to EUR 283 million, fully absorbing the expected unfavorable revenue impact of the RapidFit and Eyewear divestments. At the same time, we are increasing our full year adjusted EBIT guidance to EUR 12 million to EUR 14 million from the earlier communicated range of EUR 10 million to EUR 12 million, reflecting the strength of our execution and our continued discipline in managing costs and capital. This concludes our prepared remarks.

Operator, we are now ready to open the call to questions.

[Operator Instructions] Our first question comes from Alexander Craeymeersch with Kepler Cheuvreux.

So the first one would be on Medical. We saw a reacceleration to 12% year-on-year growth in Q2, and that came after that softer Q1. So I'm wondering what changed sequentially? Can we hold up this double-digit growth? I know that's the target, but how -- like can we expect it to be sustained in H2 and also in 2027, perhaps? Then maybe a related question on this would be, if I look at the underlying drivers, we see medical software down 5% and then devices and services increasing 19%.

So the question on this is, how do we need to look at this? Is this basically less customers trying to make the design themselves and opting to outsource the design service to you and hence, there is less need for software? So that's the question on Medical.

Then the second question I have would be on basically 2026 EBIT guidance. You guide for EUR 12 million to EUR 14 million in EBIT. Of course, you already delivered EUR 6.4 million in the first half. In the past, the budget cycles always gave you a stronger Q4, especially in Software. Is it safe to assume that you don't expect the same budget cycle to happen this year given your guidance? I will stick to these 2.

Thanks for your questions. I'll kick us off with the question on Medical. I have previously always said that the structural growth rate for Medical is double digit, but low double digits. Reasonably, a sustainable growth number that I would expect for Medical is around the 10%, which is essentially what you see for the first half of this year. That is absolutely sustainable. Of course, there can be quarter-over-quarter differences, which, again, you see what you see in Q1 and Q2 numbers, and that purely has to do with a couple of timing impacts.

Now your question on the underlying drivers. We do indeed see softer software revenue and stronger device and service revenue. There's a couple of elements that explain that. One of the primary elements is on the software side, we have an academic segment that we serve and in particular, in the U.S. So those are academic centers that use our software to train their students, but also to do research based on our product. In the U.S., in particular, research grants have been reduced for the last year, and we see the impact of that in our software sales.

That's a segment that we serve with our software portfolio, but not with our device and service portfolio. That's a structural difference between those 2 segments.

The second aspect that we need to take into account is the domains in which we are playing and in which our software is used, which are slightly different from the market segments in which the device and services are positioned and are used. Of course, these different market segments and then I talk about anatomical areas, they are subject to different trends in reimbursement hence also affordability.

Our software products historically have been positioned a little more very strongly on the orthopedic side, which is, again, particularly in the U.S., a segment where reimbursement changes have led to a bit more cautiousness from our customers' side, and that's what we feel in our software revenue. Those are the underlying drivers that differentiate our Software segment from our Device and Services segment.

And I'll hand it over for Koen to tackle your second question on the 2026 EBIT guidance and the fact that you mentioned that we already delivered EUR 6.4 million in the first half of the year.

Alexander to add to that -- to answer that question, I think indeed, what we've been able to demonstrate in the first half of this year, I think that we have been able to improve our profitability and expressed EBIT or EBITDA percentage. We believe that is also largely driven by the fact that we have been able to reduce our cost structure. You have to fill in that, that is also structural cost savings that we're doing there. We are counting to continue them as well going forward. If you, of course, do an extrapolation of the current realized EBIT in the first half of the year, you would indeed end in somewhere in the middle of the guidance range that we put forward now.

There is, of course, some seasonality in the quarters. The fourth quarter is typically a stronger quarter. We hope to have that as well this year, of course. But on the other hand, the summer quarter in the third quarter typically is then maybe a bit of a softer quarter typically, if you look over the trend over the past years. Probably those will compensate each other to a certain extent. That's why we see for ourselves as landing in the range between EUR 12 million to EUR 14 million of EBIT over the full year.

Does that answer your question, Alexander?

Yes.

Our next question comes from Guy Sips with KBC Securities.

Yes. First of all, congratulations with the very good results. You highlighted encouraging early adoption of CO-AM Professional and launched early adopter programs for CO-AM NPI and Enterprise and expanded your partnership with HP. Could you share how you see these initiatives contributing to software growth and recurring revenues over the next few years?

Yes. Thank you for your question, Sips. It's a very valid question because the whole CO-AM program is a strategic move, as you know, that we made a couple of years ago and that we are driving as we speak with those 3 offerings, the CO-AM Pro, CO-AM NPI and CO-AM Enterprise offering. Now the way you need to look at this program and the shift that we are making is really on the basis of our installed base of Magics, we bring additional capabilities to the market that are packaged in those 3 offerings, Pro, NPI and Enterprise.

Now in particular, NPI and Enterprise for us will be growth drivers. Why? Because we position in those segments where companies have understood the value of additive manufacturing and are now in a need for capabilities to help them scale. That is exactly what NPI and Enterprise are trying to do. As an example, in the Aerospace or Defense segment, where the value of additive is well established, users already have a base of additive manufacturing. They now want to get to the next level, scale, do more and more parts with it. That's where the NPI and the Enterprise capability come in.

Those will be driving our growth going forward. The Pro offering is a step into the CO-AM offering as a first step which is a critical one because we want to get customers onto our cloud platform, but the major growth drivers will come from NPI and Enterprise. Does that answer your question?

I'm showing no further questions. I'd like to turn the call back over to Brigitte de Vet for closing remarks.

Thanks again for joining us today. We look forward to continuing our dialogue with you through investor conference or in one-on-one virtual meetings and calls. In the meantime, please reach out if you have any questions. Thank you, and goodbye for now.

Thank you for your participation. You may now disconnect. Good day.

Welcome, everybody, to the Annual General Meeting of Materialise.

I want to mention that the safe harbor statements apply to this meeting.

And then I would like to introduce you to the agenda. We will start with the Full Year 2025 and Q1 2026 Business Highlights by Brigitte de Vet-Veithen, our CEO. We will then go to the financial numbers covering the full year of 2025 and the statutory accounts of 2025, closing with the 2026 consolidated financial guidance by Koen Berges. And at the end, Emma Heijmans will take us -- our legal counsel will take us through the voting procedure to end with Q&A.

So with this, I want to pass the word to Brigitte.

Thank you, Fried, and welcome, everybody, to the Annual General Assembly.

Over the last 36 years, we've been on a journey to bringing 3D printing to more customers, more solutions and more valuable applications. We call that the 4 decades of 3D printing. The first decade was all about finding out how the technology works and making it work, bringing parts out of the machine.

The second decade, then was all about making it meaningful, finding applications where the value add of those solutions is significant.

Now the third decade was to not only realize the value of those applications internally within Materialise by making customers understand that it's a valuable technology in the applications that we provide to them.

We are now, as we speak, in the fourth decade of 3D printing, which is all about scaling and bringing these solutions to more patients, more customers around the world.

Our Medical division is 1 of the best examples where we can see the journey that we've been through, starting 35, 36 years ago. In medical, we make patient-specific implants or we enable customers to make patient-specific implants. On this slide, you see a hip implant, which when applied to patients that have come to a re-intervention a couple of times, avoids that these patients come back again and -- or even stay in a wheelchair for the next couple of years. We provide patient-specific implants to a number of patients. And in 2025, specifically, we've grown that number of patients that we serve directly to more than 70,000 patients, clearly showing the impact that we have.

Now that also translates into our numbers. Going back in history, you can see the numbers here on the slide. In revenue, we've shown a consistent growth, double-digit growth on the revenue line. Just as much as over the last 10 years, we've shown a healthy EBITDA from those activities, giving us proof points that the value of the solutions is absolutely seen by our customers.

In 2025, specifically, we've made significant progress on that journey. We are conquering new markets, whether that's the cardiovascular market with our AI-enabled planning solutions or the respiratory market, where we closed a new partnership in EMEA to bring the solution to the market. We also made significant progress in our existing markets with the releases of new products that we've talked about throughout the year.

But last but not least, we also need to remember that we have a very powerful software platform to enable others to make these patient-specific implants and bring those solutions to customers. And again, there, we've extended our platform, our Mimics platform to bring -- to cater to more case-based pricing models, to cater to the needs of those customers, but also bring significant AI-enabled segmentation capabilities in this solution.

That scaling journey is what we also want to see and are driving in our manufacturing segment. We've been stepping back over the last year or 2 to reflect on what are the segments and the applications in which we can scale. We have clearly focused our attention on the segments where we see that our value add is significant. The Aerospace segment is 1 of the best examples we can show.

In 2025, throughout the different quarters, we've grown more than 20% and customers start to really appreciate the capabilities that we have, such as Boeing joining us in a consortium to prove metal 3D printing capabilities in flying parts and structural parts. We've also made the decision in 2025 to step into the defense industry. We got up of really nice highlights from 2025 on that side, is that we were invited to produce parts for the Eurodrone. And we're supporting the Belgian arm forces with our capabilities to secure digital manufacturing in crisis times.

We've radically taken decisions to where we want to focus. Beginning of this year, we have, therefore, divested some of the business lines that we were active in, RapidFit and Eyewear in particular. We do believe in the potential of these solutions, but we also believe that RapidFit and Eyewear can continue their journey in a better and easier way outside of the Materialise family.

We scale internally in our medical and manufacturing units, and our customers are seeing the same -- or going through the same journey. Our customers that we enable with our software capabilities, scale in those segments that we address with the solutions that we bring. And that is what CO-AM in our software unit is all about. It's an end-to-end platform that caters to the needs of customers that do want to scale and that need pre-print functionality, which is the core of what we traditionally did. And added functionality that these customers need to run their end-to-end operations in an efficient way while keeping the quality standards.

In 2025, specifically, we brought new capabilities onto the software ecosystem. First of all, partnerships. We partnered with more customers, more companies to expand the solutions we can bring. But second, we also launched a couple of new capabilities. I want to cite 1 example, CO-AMX Brix that we launched at Formnext 2025, and which was quoted by 1 of the 3D printing journals as the favorite thing that was to be seen at Formnext. CO-AM specifically gives customers an easy, intuitive way to automate their workflows. Automation is key for scaling as we all know.

Stepping back on the year 2025, a couple of other highlights. We listed Materialise at the Euronext in Brussels in the month of November, a decision that we took in addition to our NASDAQ listing. To expand our investor base, reflecting our commitment to both the U.S. and European investors, but also to enhance our operational flexibility. And as you all know, we announced as part of that operational flexibility, a share buyback program up to EUR 30 million, which we have now to date completed to be at the level of EUR 4.5 million.

Beginning of this year, we have published our CSRD sustainability report. And also on that side, we can see significant progress. As just 1 example, we have halved our emissions from -- on the CO2 side from 122 tonnes of CO2 per million euro to 62 tonnes of CO2 per million euro. Our solar panels a year at HQ significantly contribute to that reduction providing now 40% of our site's electricity needs.

With that, I want to hand the word to Koen to take us through our financial highlights.

Thank you, Brigitte. And as 2025 marked a year of increased geopolitical and macroeconomic instability and uncertainty, our business model once more proved its resilience. Over 2025, we were able to slightly grow our revenue to EUR 268 million despite this uncertain market environment.

At the same time and helped by tight cost control, we managed to improve our operational profitability, expressed in our adjusted EBITDA or EBIT which amounted on an EBIT level to EUR 11 million over 2025.

At the same time, we also, results -- we also ended with a positive net results.

At the same time, we also reinforced our balance sheet. We ended the year with a cash reserve of EUR 134 million and a financial debt of EUR 63 million, which together result in a net cash position of more than EUR 70 million. That is cash that we can use for strategic investments and further M&A opportunities. Because if you look at our operational and free cash flow, you'll see that we were both positive on both KPIs. Our free cash flow over 2025 amounted to EUR 16 million.

At the same time, we reinvested EUR 16 million of CapEx, slightly down from the year before as we always indicated that our nonrecurring CapEx has significantly dropped as we finished some important investment programs in prior years.

Now if you put these numbers of 2025 into comparison with the trend over the last couple of years, you will see that we continue to grow our top line with a high single-digit growth number of about 7% over the last 5 years. At the same time, our profitability remained stable with an adjusted EBITDA margin of around 12% over the period.

Now behind these consolidated numbers, there is, of course, our 3 business units. And as Brigitte already mentioned, they all have a different dynamic. Medical, of course, continues to grow at a solid double-digit CAGR of more than 15% with a very healthy profitability with an EBITDA margin more than 30%.

On the right side, you'll see our Manufacturing business, which is much more prone to the macroeconomic environment that we operate in. And in the difficult market environment of 2025, that resulted in a reduced top line to EUR 92 million, which also is reflected in the profitability with a negative EBITDA.

Now in the middle, you'll see our Software results. And by analyzing these, you need to take into account 2 elements. The top line is quite stable over the period and even slightly declined in 2025, which is partly due to a weaker ForEx results. But on the other hand, we're also still converting our business model into a recurring license model, which weighs on our top line. And at the same time, we continued to invest heavily in our new software solutions such as CO-AM as Brigitte mentioned, would weigh on our bottom line and our profitability. Nevertheless, we stayed quite stable there with an EBITDA margin of around 13%.

Now if we then make the switch to the statutory accounts. So these are the financial results of our mother company the Belgium-based entity Materialise NV, you see a similar trend. The turnover, which is a large chunk of the total consolidated revenue slightly increased. But on the other hand, we kept costs very well under control. Our remuneration expenses increased, driven by automatic indexation in Belgium, but we offset that increase by reduced third-party spending on services and goods and on raw materials, and that resulted into a significantly improved operating profit, which amounted to close to EUR 8 million and eventually also results in net profit of around EUR 11 million.

Also, the balance sheet of the mother company is quite healthy, and we further reinforced that over 2025 with an increased cash position and also an improved equity position resulting from the profits generated in 2025.

Now making a step over to 2026. You might recall the guidance we have given in our quarterly earnings calls, both in February and then a reconfirmation in our Q1 earnings call in beginning of May, where despite still some uncertainty that we see in 2026, we believe we will be able to further grow our revenue into a range of EUR 273 million to EUR 283 million, with also increased profitability, where we've indicated the adjusted EBIT to land within the range between EUR 10 million to EUR 12 million over 2026.

And with that, I'd like to hand over the call to our colleague Emma, for the more formal parts.

Thank you, Koen. So we will now head to the voting part this AGM, in which we will discuss 11 resolutions, 11 agenda points. The first 1 being the annual reports and the consolidated annual accounts. Then we will head over to the statutory annual accounts. The appropriation of results. The acknowledgment and approval of the remuneration report. The discharge of the directors. The discharge of the statutory auditor. The reappointment of the statutory auditor for the financial years 2026, '27 and '28 and the remuneration. The appointment of the directors. The director remuneration. And finally, the powers of attorney.

We will now head to the voting. So the first 2 resolutions were non votable. These include the receipt and discussion of the annual report, including the corporate governance statement and sustainability reporting of the Board of Directors on the statutory annual accounts of the company and the consolidated annual accounts of the Materialise group for the financial year ended 31 December 2025, as well as the auditor reports on the company and consolidated financial statements.

The second resolution being the receipt of the consolidated annual accounts of the Materialise Group for the financial year ended 31 December 2025.

We will now head to the third resolution. The general meeting approves the statutory annual accounts of Materialise NV for the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The fourth resolution is the general meeting resolves to carry forward the profit available for appropriation for the financial year 2025 for an amount of EUR 11,232,308.80, combined with the profit carried forward from prior financial years for an amount of EUR 3,653,734.77. The amount held above the required statutory reserves is withdrawn from the statutory reserves and likewise carried forward. These are the results. This resolution passed, and we will now head to the next one.

The fifth resolution, the general meeting resolves to approve the remuneration report as included in the annual reports of the Board of Directors for the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now pass to the next one.

The sixth resolution, the general meeting resolves to grant discharge to Wilfried Vancraen and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Peter Leys and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Hilde Ingelaere and, where applicable, her permanent representative for the performance of her mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Sander Vancraen and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Jozef Vander Sloten and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to A TRE C BV, permanently represented by Johan De Lille and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Jurgen Ingels and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Marleen Mannekens and, where applicable, her permanent representative for the performance of her mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Godelieve Verplancke and, where applicable, her permanent representative for the performance of her mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolved to grant discharge to Bart Luyten and, where applicable, to his permanent representative for the performance of its mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to grant discharge to Volker Hammes and, where applicable, his permanent representative for the performance of his mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolved to grant discharge to the statutory auditor, being KPMG Bedrijfsrevisoren BV, represented by Tim Vermeiren, for the performance of its mandate during the financial year ended 31 December 2025. These are the results. This resolution passed, and we will now head to the next one.

The general meeting appoints KPMG Bedrijfsrevisoren BV, for the audit of the statutory and consolidated annual accounts of the company, and for as long as legally required to provide the assurance opinion relating to the sustainability reporting for the financial years ending 31 December 2026, '27 and 2028. The general meeting also resolves that the annual remuneration of KPMG Bedrijfsrevisoren BV for its mandate will amount to an amount of EUR 974,208 on an annual basis and subject to indexation. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of Mr. Wilfried Vancraen as Director for a period of 1 year, expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of Mr. Peter Leys as Director for a period of 1 year, expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of Mrs. Hilde Ingelaere as Director for a period of 1 year, expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of Mr. Sander Vancraen as Director for a period of 1 year, expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of A TRE C BV, with Mr. Johan De Lille as permanent representative as Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passes, and we will now head to the next one.

On the proposal of the family shareholders and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to renew the mandate of Mr. Jurgen Ingels as Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to appoint Mrs. Marleen Mannekens as Independent Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to appoint Mrs. Godelieve Verplancke as Independent Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to appoint Mr. Bart Luyten as Independent Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

The general meeting resolves to appoint Mr. Volker Hammes as Independent Director for a period of 1 year expiring after the general meeting to be convened to approve the annual accounts for the financial year 2026. These are the results. This resolution passed, and we will now head to the next one.

On the proposal of the Board of Directors, and in accordance with the recommendation and advice of the Remuneration and Nomination Committee, the general meeting resolves to approve the following remuneration with effect as from the first of January 2026. All directorships will be remunerated with a fixed fee of EUR 2,900 per quarter. Directors who are members of the Audit Committee will receive an additional remuneration of EUR 1,450 per attended meeting. The Chairman of the Audit Committee shall receive an additional quarterly amount of EUR 2,170. Directors who are members of the Remuneration and Nomination Committee will receive an additional remuneration of EUR 1,450 per attended meeting. The Chairman of the Remuneration and Nomination Committee will receive an additional quarterly amount of EUR 720. These are the results. This resolution passed, and we will now head to the next one.

Finally, the general meeting resolves to grant powers of attorney to Felix Theus, Emma Heijmans and Maja Frederix, each with authority to act alone and with right of substitution and without prejudice to any other authorizations applicable for any filing and publication formalities required in connection with the foregoing resolutions. These are the results. This resolution passed. And with this, we have ended the voting.

There were no questions sent in. There are also no questions from the audience. So I will now hand over to Fried.

Thank you all for attending this meeting. We are very proud with the results achieved from all our employees all over 2025 in a difficult economic and political climate worldwide. We want to thank our leadership teams at all levels of the company to take our business decisions to practicalities and to achieve such good results in a consistent way.

We want to mention that our website gives more details about all the numbers that have been presented today and is also a means to keep you updated about our quarterly progress at the [email protected] website.

We are looking forward to engage with you during 1 of the investor conferences or during our quarterly calls. Thank you very much, and see you next year. Bye.

Hello, and welcome to the Q1 2026 Materialise NV Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

It is now my pleasure to introduce Managing Director at Alliance Advisors, Jody Burfening.

Good morning, and thank you for joining us today for Materialise's quarterly conference call. With us on the call are Brigitte de Vet, Chief Executive Officer; and Koen Berges, Chief Financial Officer.

Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic, financial and operational performance for the first quarter of 2026. To access the slides, if you have not done so already, please go to the Investor Relations section of the company's website at www.materialise.com. The earnings press release that was issued earlier today can also be found on that page.

Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied on as representing their estimates as of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F filed with the SEC.

Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings press release and at the end of the slide presentation.

And now I would like to turn the call over to Brigitte de Vet. Brigitte?

Good morning, and good afternoon. Thank you, everyone, for joining us today. You can find the agenda for our call on Slide 3. First, I will summarize the business highlights for the first quarter of 2026. Then I will pass the floor to Koen, who will take you through the first quarter financials. And finally, I will come back and explain what we expect the remaining months of 2026 to bring. When we've completed our prepared remarks, we'll be happy to respond to questions.

Moving to Slide 4 for the highlights of the first quarter 2026. As part of our growth strategy, we made decisive portfolio choices in the last quarter that strengthened both Materialise and the businesses involved. On March 31, we announced an agreement to transfer our RapidFit business to its management team. RapidFit is a specialized business that delivers custom 3D printed jigs, fixtures and quality control solutions, primarily for the automotive industry. RapidFit will continue as an independent company under the same leadership and under the RapidFit name, allowing the business to operate with greater focus and flexibility as it enters its next phase of growth. This step-up enables RapidFit to make decisions closer to its customers and markets while allowing Materialise to concentrate investment and leadership attention on our focus segments.

Today, we are announcing a similar step for our eyewear activities. We have reached an agreement to transfer our eyewear business to its management team, allowing it to continue as an independent company. Eyewear is a highly specialized product-driven business serving as a distinct consumer market. The transfer will allow the new company to operate with greater focus and agility. Materialise will retain a minority stake in the newly formed eyewear company. For Materialise, this decision reflects the same strategic rationale, ensuring that the eyewear business operates in the environment where it can succeed best while we concentrate our capital and resources on our focus areas. All employees currently supporting the RapidFit and eyewear business will transition to the new companies. Both businesses were part of our Manufacturing segment. Financial terms will not be publicly disclosed.

Turning now to the highlights in the Medical segment. Starting with our CMS market. In February, we expanded our cranio-maxillofacial portfolio with the addition of custom-made PEEK implants. PEEK is often favored by surgeons because its radiolucent nature means it does not appear on imaging the way medical implants do, enabling clearer postoperative scans. Until now, surgeons working with Materialise had Titanium as their patient-specific option. With this launch, they have an additional choice. The new offering integrates seamlessly into our existing digital workflow and completes our offering. Surgeons don't adopt a new process, a new platform or a new partner to access PEEK. And this demonstrates the power of Materialise's integrated digital ecosystem. It absorbs new clinical capabilities without adding complexity for the surgeon or the hospital. The custom-made PEEK implants are now available to surgeons across most European countries.

Also in our orthopedics market, we launched OrthoView 3D Hip, completing our templating and planning portfolio to serve patients along the full patient continuum of hip surgery from standard primary hip interventions to more complex surgeries. OrthoView has long been helping surgeons plan procedures with precision based on X-ray imaging. With OrthoView 3D Hip, we are taking that platform beyond X-rays, moving from 2D to CT scan-based planning, enabling a far richer picture of the patient's anatomy before they even enter the operating room. Also in this case, surgeons do not need to adopt a different process, tool or a different partner and can serve all patients from the same Materialise ecosystem.

What makes this launch particularly significant is that it reflects Materialise's unique ability to bring together capabilities from across our portfolio. OrthoView 3D Hip combines the deep orthopedic domain knowledge of OrthoView with the proven segmentation and anatomical modeling power of our Mimics technology. The result is a guided workflow that gives surgeons the confidence to plan every case with accuracy and precision. Both product launches showcase our innovative strength in mature market segments and underscore the position of our ecosystem in the medtech market.

Turning to software now. Back in November, Materialise introduced 3 tailored CO-AM solutions to address the industry's growing need for workflow automation and interoperability, CO-AM Professional, CO-AM NPI and CO-AM Enterprise. Alongside these offerings, we also announced CO-AM Brix. CO-AM Brix puts our extensive software expertise in the hands of every user by making it easy to automate complex recurring processes and eliminate repetitive manual work without requiring advanced programming skills. In the first quarter, we ran an early access program with selected Magic customers, giving them hands-on experience with the CO-AM Professional offering of the CO-AM platform.

At the start of the second quarter, we started a presales program for Magics customers approaching their renewal cycles. We now have 7 customers actively onboarding CO-AM Pro in May with full global availability expected from mid-June this year. CO-AM Professional is our cloud-based software for managing day-to-day 3D printing operations more efficiently. The Pro version is built for teams with multiple users running several machines across different production sites. It gives teams access to centralized AM data and share one source of truth across teams. It also enables easier collaboration across departments and allows users to run repeatable machine-agnostic operations, thereby helping customers grow their AM operations from a top use to repeatable production with less manual work.

Also, in the first quarter, we continued to expand our partnerships. As a particular highlight, I would like to mention the collaboration with HP. At the recent RAPID + TCT Forum, HP unveiled the MJF 1200 3D printer. As part of this offering, Materialise Magics Print for HP will be included with every machine, ensuring users have access to professional build preparation and workflow capabilities from the start. The Magics Print for HP is a dedicated build preparation software that provides professional-grade tools for nesting, part orientation and build layout, enabling customers to prepare builds quickly and efficiently from day 1 and simplify the path from design to printed parts. Built on Materialise's proven software foundation, the solution is designed to grow with customers as their production needs evolve.

The collaboration on the MJF 1200 continues the long-standing collaboration between HP and Materialise. At the same time, it gives Materialise broader access to the lower to mid-range market segments at which the MJF 1200 is targeted with its system price below $60,000. This aligns with the broader market shift where additive manufacturing is moving from specialized applications into more mainstream manufacturing workflows. The full solution will be available starting in early 2027.

Before we move to the first quarter financials, I want to mention 2 other recent highlights. First, we published our first annual report following our listing on Euronext back in November. The annual report is a European reporting requirement and is now available on our investor website. Secondly, we completed our CSRD sustainability reporting, demonstrating strong progress on our sustainability commitments. I am proud to say that we exceeded our reduction targets for greenhouse gas emissions, achieving a total reduction of over 1,500 tons of CO2 across our operations over a rolling 2-year cycle. A couple of drivers contributed to this. We switched our standard PA 12 material used in selective laser sintering to a carbon-reduced version. This change became operational in the first quarter of 2025 and translated into an annual savings of over 450 tons of CO2. At our headquarters, the solar park built in 2025 now generates over 40% of the site's electricity needs, significantly reducing reliance on external energy sources and lowering Scope 3 emissions.

Turning over to Koen now, who will present the financial results.

Thank you, Brigitte. Good morning or good afternoon to all of you on this call. I'll begin with a brief overview of our key financial results shown on Slide 6.

In the first quarter, revenue was EUR 66.3 million, stable year-on-year despite significant foreign exchange headwinds. Gross profit increased to EUR 37.9 million, resulting in a gross margin of more than 57%, meaningfully up versus last year. We delivered strong improvement in profitability with an adjusted EBIT reaching EUR 2.5 million and corresponding to a 3.7% margin, demonstrating our ability to convert a stable revenue into a higher operating leverage. Net profit for the quarter was at EUR 1.8 million or EUR 0.03 per share. We also further strengthened our balance sheet. Free cash flow was positive, increasing our net cash position to EUR 72.8 million, up by EUR 2 million compared to the start of this quarter.

I will now walk you through the results in more detail. As a reminder, unless stated otherwise, all comparisons are versus the first quarter of 2025. Slide 7 provides an overview of our consolidated revenue. In Q1 of 2026, said revenue remained stable at EUR 66.3 million despite the elevated geopolitical uncertainty and unfavorable foreign exchange movements, primarily driven by a weaker U.S. dollar versus last year. These ForEx impacts mainly affected our Medical and Software segments. Despite this, Materialise Medical revenue grew by 7% to EUR 33.2 million, while software revenues declined slightly by 1%. On a constant currency basis, Medical would have delivered double-digit growth again and Software would also have grown year-on-year. Manufacturing revenue declined by 8%, reflecting continued macroeconomic headwinds.

As shown on the right-hand side, Medical represented 50%, our total revenue with Manufacturing at 35% and Software at 15%. Our deferred revenue balance for software maintenance and license fees coming from both medical and software further increased in Q1 to EUR 49 million. The total deferred revenue reported on the balance sheet stood at EUR 61 million at the end of the quarter.

Turning to Slide 8. I'd like to highlight the progress we've made in profitability. In the first quarter of this year, adjusted EBITDA reached EUR 8 million, an increase of more than 30% year-on-year, resulting in an adjusted EBITDA margin of 12.1%. Adjusted EBIT improved sharply to EUR 2.5 million compared to EUR 0.6 million in the prior year quarter, resulting in a 3.7% adjusted EBITDA margin. With revenue stable, this margin expansion reflects disciplined cost management, operational efficiencies and a sharper focus on our core growth segments.

Let me now turn to our business segments, starting with Materialise Medical shown on Slide 9. Medical revenue increased 7% year-on-year. Growth was driven primarily by Medical Devices, which grew 11%, supported by both direct and partner sales. Medical Software declined 3%, but was mainly due to unfavorable ForEx as a significant part of this revenue is invoiced in U.S. dollars. On a constant currency basis, a set Medical revenue as a whole grew 10%. Adjusted EBITDA increased to EUR 9.2 million, representing a 20% margin, while we continue to scale our R&D investments in our Medical segment, reflecting our commitment to driving future growth.

Slide 10 summarizes the results of our Materialise Software segment. Software revenue decreased slightly by 1% to EUR 9.6 million, largely due again to foreign exchange. On a constant currency basis, revenue increased by 5%. We continued our transition towards a cloud-based subscription model. During the quarter, 83% of our software revenue was recurring compared to 81% a year ago. Despite the modest revenue decline, adjusted EBITDA increased significantly by 88% year-on-year to EUR 1.1 million, reflecting also here effective cost management and improved operating leverage.

Now turning to Slide 11. We can see the Manufacturing segment. Manufacturing revenue declined 8% to EUR 23.5 million. However, revenue increased sequentially versus the prior 3 quarters, reflecting growth in our strategic focus areas, aerospace, defense and semicon. This further growth in series Manufacturing was offset by continued weakness in prototyping demand. Through disciplined cost control, adjusted EBITDA turned positive again, reaching now EUR 0.3 million despite the lower year-on-year revenue.

With the segment results covered, Slide 12 outlines our consolidated income statement, showing the drivers behind our improved profitability. Gross profit increased to EUR 37.9 million with gross margin expanding to 57.2%, up from the 55.3% of last year. Operating expenses increased by just EUR 0.2 million or less than 1% year-on-year. R&D and sales and marketing expenses increased 4% and 2%, respectively, reflecting targeted investments, while at the same time, G&A declined by more than 6% due to ongoing cost discipline. Total R&D spending exceeded more than EUR 11 million for the quarter, with the majority being allocated to medical. Other operating income increased to EUR 0.9 million compared to EUR 0.4 million last year. As a result, operating profit reached EUR 2 million for the quarter. Net financial income was also positive by EUR 0.4 million, driven by currency effects, interest income on cash balances and interest expense on debt. Income tax expense was EUR 0.7 million. Altogether, we generated positive net results in the first quarter of this year, amounting to EUR 1.8 million, representing EUR 0.03 per share.

And finally, let's review our balance sheet and cash flow position, which remains a key strength for Materialise on Slide 13. Our cash reserve at the end of the quarter amounted to EUR 133 million, while our gross debt was further reduced to EUR 60.1 million. The net resulting cash position increased to EUR 72.8 million, up by almost EUR 2 million compared to the beginning of this year, mainly driven by strong free cash flow. Compared to the balance sheet at year-end 2025, net working capital components increased by EUR 2.7 million, mainly driven by higher inventory levels of finished products and work in progress. Deferred income increased to EUR 61 million, including the EUR 49 million coming from software licenses and maintenance. As you can see from the graph on the right side of the page, the operating cash flow in the first quarter amounted to almost EUR 7 million and capital expenditures totaled EUR 1.5 million, reflecting limited nonrecurring investments in this quarter. As a result, free cash flow after investing activities was EUR 5.7 million.

And with that, I'd like to hand the call back to Brigitte.

Thank you, Koen. Let's now turn to Page 14. I'll conclude my remarks with a discussion of our full year 2026 guidance. Notwithstanding the anticipated impact of the divestments of RapidFit and Eyewear, we reaffirm our full year revenue guidance for fiscal year 2026 in the range of EUR 273 million to EUR 283 million.

In addition, we are also maintaining our adjusted EBIT guidance for fiscal year 2026 of EUR 10 million to EUR 12 million, reflecting our continued focus on execution discipline, cost management and capital allocation. As already mentioned during our previous earnings call in February, we expect macroeconomic and geopolitical uncertainty to persist throughout 2026. Nevertheless, we continue to have confidence in the strength and resilience of our underlying business fundamentals as the results of the first quarter of this year have demonstrated. The strategic repositioning initiatives, targeted investments and cost optimizations across our 3 business segments and our supporting staff departments are expected to progressively support improved operational performance and profitable growth.

This concludes our prepared remarks. Operator, we're now ready to open the call to questions.

[Operator Instructions] Our first question comes from the line of Alexander Craeymeersch with Kepler.

Alexander from Kepler Cheuvreux. I have 3. I think the first one is rather getting a sort of big glimpse of how the end markets are moving with the current market turmoil, so we get a bit of a feeling of what to expect towards H2?

And the second question would be on the Medical segment. Last time we discussed, I think you are quite confident that the margins in Medical would continue to grow or at least stay stable. So I'm a little bit surprised that the margins in Medical decreased 200 bps now. So could you maybe give a rational explanation for this? And then maybe a question that is somewhat related to this. Considering the high margins in Medical, do you see already some increased competition? And then the last question I had for the current guidance. Of course, you now divested 2 minor assets. But I'm just wondering whether the EUR 10 million to EUR 12 million in EBIT guidance, if that is based on the assumption that manufacturing is running at a negative EBITDA? Or is that at a positive EBITDA for the full year 2026?

Thanks, Alexander. I'll make an attempt at answering your first question and the second, and I'll point to Koen for your third question. So your question is on the end markets. So the picture on the end markets really varies. So there's a difference in the regional dynamics that we see. While we see some recovery in the U.S. markets at large, Europe is in a different place. So in Europe, the environment remains rather soft when it comes to our end markets.

Now that is also particularly for the automotive industry that we still are highly active in. So the automotive industry in terms of end market remains soft, in particular in Europe, whereas we see other end markets that we are very exposed to improving sharply and continuing actually the positive dynamics that we've seen over the last couple of quarters. Think about aerospace. So in our aerospace market, we see further investments in our end markets that also benefit the additive industry, including us. Obviously, defense is another industry where budgets are being freed up now and where we see positive dynamics. So it's a very diverse picture where the U.S. market is showing a more positive trend than the European markets and where in end markets, we see a big difference on the one end of the spectrum, you see the positive side, the aerospace on the lower and softer dynamic. On the other end of the spectrum, you see the automotive industry. The health care market at large globally remains a healthy environment. The exception would be academic markets where we see primarily in the U.S., the impact of funding cuts that have been issued already last year and they continue in this year.

Does that answer your first question?

Yes, that does answer the first question. Maybe a small follow-up on the first question. Just could you give us a reminder on how big aerospace and defense is in the total portfolio?

I don't think we've disclosed the number in terms of the percentage of the total revenue. What I can say is that in the [indiscernible] dynamics, we've previously communicated in the last couple of quarters that our growth was higher than 20%, and we see that confirmed this quarter as well.

Maybe then to shift to the Medical segment and your question on the margins. Maybe on the Medical segment at large, what we have previously communicated throughout 2025 for Medical was that what we see structurally as a healthy and sustainable growth rate and margin rate would be from a top line perspective, a low double-digit, high single-digit growth as a sustainable growth rate when we look over a couple of quarters. whereas we see the margins kind of hovering just under 30%. So the 28% margin that we showed this quarter are more or less according to that expectation. Obviously, with the ForEx impact, you never know exactly where you end. But it is consistent with what we thought for a first quarter previously. Remember that there's some seasonality in our Medical business, where the first quarter has a very different profile from the fourth quarter typically. So that's on your margin question.

And then I mean, in the medical market, you pointed towards competitive trends and whether we see increased competition, there's always competition. We've had competition in a number of our Medical segments for a while. I don't see any dramatic changes in that competitive field. Obviously, we had and we still have a head start in those markets as we build many of these markets. But it's a competitive environment. And I don't see in the first quarter specifically any changes on that. As I said, in terms of the market environment, I think the change that we observed last year and continue to observe this year in the first quarter in an increased way is the funding cuts in the U.S. academic market. Now that's a smaller part of our business, but that's potentially the shift in market dynamics that is observably high. Does that answer your question?

And then maybe turning to the last one on the guidance.

I will take that one, Alexander. You're correct in stating that both divestments that we did in our Manufacturing segment are on a consolidated level from a number point of view, not material. Nevertheless, that means that the divestments will put some pressure on our top line because we're losing that revenue. Now at this stage, we believe that we will be able to absorb that gap, and that's why we keep the guidance unchanged.

On the other hand, there is, of course, also an impact on our bottom line, EBITDA, where we believe that impact will be positive, of course, over the longer term. Now where you asked on our projections for Manufacturing over 2026, we do believe indeed that the contribution of our Manufacturing EBITDA will become again positive in this year.

As we see now in the first quarter as well.

[Operator Instructions] And I'm showing no further questions. So with that, I'll hand the call back over to management for any closing remarks.

Thanks again for joining us today. We look forward to continuing our dialogue with you through investor conferences or in one-on-one virtual meetings or calls.

Now we would like to remind you that our second quarter earnings call will be shifted to the end of August, as is also mentioned on our financial calendar published on our investor website. This is mainly due to our dual listing status, whereby we want to align our second quarter earnings update with the more extensive half year reporting that is required from a European point of view. Now in the meantime, please reach out if you have any questions. Thank you, and goodbye for now.

Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.

Hello, and thank you for standing by. Welcome to Materialise Fourth Quarter 2025 Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to Harriet Fried of Alliance Advisors. You may begin.

Thank you for joining us today for Materialise's quarterly conference call. With us on the call are Brigitte de Vet, Chief Executive Officer; and Koen Berges, Chief Financial Officer. Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic, financial and operational performance for the fourth quarter of 2025 as well as the year 2025 as a whole.

To access the slides, if you have not done so already, please go to the Investor Relations section of the company's website at www.materialise.com. The earnings press release issued earlier today can also be found on that page. Before we get started, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change.

Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent date. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F filed with the SEC.

Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings release and at the end of the slide presentation. And with that, I'd like to turn the call over to Brigitte de Vet. Brigitte, can you go ahead, please?

Good morning, and good afternoon. Thank you for joining us today. We're very pleased to present our fourth quarter and full year 2025 results to you today. You can find the agenda for our call on Slide 3. First, I will summarize the business highlights for the fourth quarter of 2025. Then I will pass the floor to Koen, who will take you through the fourth quarter financials. And finally, I will come back and explain what we expect 2026 to bring. When we've completed our prepared remarks, we'll be happy to respond to questions.

On November 20, 2025, we rang the bell at Euronext Brussels. With this step, we completed our -- we complement our existing listing on NASDAQ with an additional European listing. The dual listing provides us with access to broader investor audience in Europe and increases the company's operational flexibility, including the option to initiate ADS and/or share buyback programs. Our NASDAQ listing remains integral to our global strategy. As a reminder, no shares were offered and no capital was raised in connection with the listing of shares on Euronext Brussels. We will trade under the same ticker symbol, MTLS as on NASDAQ. We have also announced a share buyback program of up to EUR 30 million. This program has started from January 26, 2026. And to date, we have acquired a total of 187,500 shares for a total amount just below USD 1 million.

Looking at other business highlights of the fourth quarter. In Medical, as you know, our aim is to bring personalized solutions to as many patients as possible. In the fourth quarter, we surpassed the historical milestone of 700,000 patients treated with Materialise personalized solutions. More than 17,000 patients have been treated in 2025 alone. This represents a significant milestone in our journey towards mass personalization. Also, we released the new version of Mimics Flow, our Mimics platform that is a work of software solution for companies that want to develop their own personalized solution.

With this new release, users benefit from enhanced functionality, a new licensing system and the new pricing structure. Let me briefly elaborate on all 3. First, as far as functionality is concerned, the users will now be able to fast track their work for high-volume applications, thanks to additional AI algorithms on the platform. They will also benefit from improvements that will make 3D planning easier and that will make case discussions with colleagues efficient in one unified platform. Second, the new licensing system gives the users more control and will reduce licensing overhead, thanks to the new end user portal where users can easily rehost, activate and deactivate licenses as needed and get uninterrupted access with little administrative burden.

Third, this Mimics release enables true subscription pricing models, more closely aligning our success with that of our customers. We will gradually introduce the new models in specific markets and applications. We're convinced that the new functionality, the future-proof licensing model and the new pricing models will enable our customers to achieve our common goal, giving more patients access to personalized approaches. In Software, we have taken the next step in our open and secure software strategy, introducing 3 tailored CO-AM solutions and new enabling technologies to address the industry's growing need for workflow automation and interoperability.

As you know, we have been investing in additional software capabilities beyond preprint to cover the end-to-end additive manufacturing workflows of our customers. The 3 new CO-AM offerings will address specific market segments. CO-AM Professional will deliver workflow automation and building traceability for high mix, low-volume additive manufacturing. CO-AM NPI accelerates new product introductions and qualification for series additive manufacturing parts. CO-AM Enterprise combines CO-AM Professional's expert AM preparation with full production execution and order management, also called manufacturing execution systems, delivering end-to-end workflow management for advanced users.

As discussed in our Q3 earnings call, we also introduced CO-AM Brix at Formnext. CO-AM Brix is a new low-code node-based automation technology, integrating over 1,000 proven algorithms from Materialise and SDK suite and providing the possibility to incorporate external tools and libraries. Brix is part of the CO-AM platform and puts our extensive software expertise in the hands of every user. It makes it easy to automate complex recurring processes and eliminate repetitive manual work without requiring advanced programming skills. By combining real-time visualization with powerful automation, even nonprogrammers can easily build custom workloads, instantly see the impact of the design and production decisions and act on them immediately. The result is higher productivity, faster response times and ultimately, broader adoption of AM technologies.

We've seen the impact of CO-AM Brix firsthand in our own production of fixed insoles, our custom 3D printed robotics. In producing these insoles, CO-AM Brix enabled us to automate almost the entire process from order to print. Nesting time dropped from 45 minutes to just 1 minute. Bill processing became 20x faster. Total build time fell by 15% and error rates fell from 10% to under 0.1%. CO-AM Brix was referred to by US build, the [ 3Dprint.com editor ] as its favorite thing at Formnext 2025.

Turning to manufacturing. We continue to face headwinds in Q4. At the same time, we made progress in expanding our position in high-growth certified industries. We merged our 2 online platforms, iMaterialise and Materialise Onsite and consolidated both into a single streamlined platform. This step reflects our strategic focus on the professional 3D printing market. iMaterialise has been an important part of our history, helping to democratize 3D printing and empower designers, makers and small businesses. But as the market evolves, consolidating under Materialise on site is a natural next step to focus on our core segments and to align with the needs of professionals in the industry driving additive manufacturing forward. We have also made progress in key strategic verticals such as aerospace and defense.

Today, I want to highlight 2 key projects we have been awarded in the fourth quarter. First, Materialise has been invited to join the SONRISA project as a key enabler of this funded aviation initiative led by Liebherr-Aerospace. The project aims to make quality assurance with metal 3D printed aircraft parts more reliable, repeatable and easier to certify. The consortium brings together leading aerospace and technology players, including Boeing, alongside industrial and research partners. Materialise's role is to develop data-driven quality assessment concepts that merge production and inspection data, such as images, temperature data and CT scans to support automated acceptance decisions as well as virtual testing tools that help assess manufacturability early in the design phase.

Second, the Defense and Space division of Airbus awarded us the production of the Environmental Control Systems for the Eurodrone project. The Eurodrone is the first remotely piloted aircraft system natively designed for safe and reliable flights in nonsegregated airspace, giving Europe its own sovereign capability in this field. Production of the first aircraft will be in 2027 with a go-live of the parts requested from Materialise end of 2026. This order represents a significant step forward for us in this key vertical.

I will now hand over to Koen for an overview of the financial results.

Thank you, Brigitte. Good morning or good afternoon to all of you on this call. I'll begin with a brief overview of our key financial results as shown on Slide 6. I'm pleased to share that in the fourth quarter, our consolidated revenue grew by 6.8% year-on-year, reaching EUR 70.2 million. Our gross profit margin increased further to EUR 40.8 million, representing 58.1% of our revenue.

At the same time, we delivered an adjusted EBIT of EUR 4 million, representing a high margin of 5.7% of revenue, demonstrating our ability to convert top line into strong operational results. Net profit came in at EUR 6.2 million for the quarter. Thanks to a positive free cash flow, we also strengthened our balance sheet, improving our net cash position to EUR 70.8 million, an increase of more than EUR 3 million compared to the prior quarter and EUR 10 million above the level at the end of 2024. In the following slides, I will elaborate further on these results.

As a reminder, please note that unless stated otherwise, all comparisons in this call are against our results for the fourth quarter and full year of 2024. Now moving on to the consolidated revenue on Slide 7. In the final quarter of the year, our revenue reached a EUR 70.2 million, up nearly 7% compared to the same period in 2024. Materialise Medical continued its strong double-digit growth trajectory, increasing revenue by more than 16% and setting once again a new quarterly revenue record. Revenues in Software and Manufacturing stabilized with a slight decline of respectively, 1% and 2% compared to prior year. At the same time, unfavorable foreign exchange effects, primarily from a weaker U.S. dollar continued to weigh on our top line.

As shown in the graph on the right, Materialise Medical accounted for 53% of our consolidated revenue in Q4, with manufacturing contributing 31% and software 16%. This further shift towards medical reflects the different growth rates across our segments. For the full year 2025, revenue totaled EUR 268 million, essentially flat compared to 2024. Medical represented 50% of total annual revenue, manufacturing 35% and software 15%. Our deferred revenue balance for software maintenance and license fees coming both from medical and software increased by EUR 3.5 million in Q4, consistent with the seasonal pattern, ending the quarter at EUR 48.8 million.

Over the full year, deferred revenue related to Software license and maintenance rose by EUR 1.9 million with the total deferred revenue reported on our balance sheet at EUR 60.9 million at year-end. Let me now move on to profitability, where our disciplined cost measures and operational efficiencies have delivered notable improvements. On Slide 8, you can see that our consolidated adjusted EBITDA and adjusted EBIT results for both the fourth quarter and the full year 2025. In Q4, consolidated adjusted EBITDA reached EUR 9.5 million, more than double the EUR 4.3 million recorded in the same period of last year, with an adjusted EBITDA margin now of 13.6%. Adjusted EBIT improved sharply to EUR 4 million compared to a loss of minus EUR 1.2 million in Q4 of 2024, delivering now a strong adjusted EBIT margin of 5.6% -- sorry, 5.7%. These improvements were driven by higher revenue, increased gross margin percentage and lower operating expenses when adjusted for nonrecurring costs.

For the full year, adjusted EBITDA rose to EUR 32.4 million, representing a margin of 12.1%, while adjusted EBIT increased to EUR 10.6 million with a margin of 4%. With revenue stable year-on-year, this enhanced operational profitability reflects the shift in focus towards key markets, disciplined cost control and the impact of targeted cost reduction measures implemented throughout the year. These results demonstrate our ability to strengthen profitability even in challenging macroeconomic environment. Let's now review the performance of our individual business segments, starting with Materialise Medical.

As shown on Slide 9, you will notice that revenue grew by 16% in the fourth quarter to EUR 37 million, another quarterly revenue record. The strong performance was driven by a 23% increase in Medical Devices and Services revenue, supported by growth in both our direct and partner channels. Medical Software revenue remained stable compared to a strong Q4 in 2024 and is further up from prior quarters of 2025. In line with the top line growth, adjusted EBITDA rose to EUR 13 million from EUR 9.5 million of last year, delivering a robust margin of 35%, fueled primarily by scaling effects. For the full year, Medical segment revenue increased by 15% to EUR 134 million, with adjusted EBITDA reaching EUR 43 million and an annual margin of 32%. Throughout 2025, we further intensified our R&D investments to support future growth of this business unit.

Slide 10 summarizes the results of our Materialise Software segment. In the fourth quarter, software revenue held steady at around EUR 11 million despite the impact of unfavorable ForEx effects and our ongoing transition to a cloud and subscription-based business model. Compared to earlier quarters, the segment continued its steady upward momentum, delivering successive quarterly revenue increases. Recurring revenue from software maintenance and license sales, including CO-AM, grew by 4% year-on-year in Q4, while nonrecurring revenue declined by 19%. Even with a stable top line, disciplined cost management enabled us to significantly improve adjusted EBITDA to EUR 1.7 million, resulting in an adjusted EBITDA margin of 15.5%. For the full year, the Software segment revenue totaled EUR 41 million, down 7% from 2024 with adjusted EBITDA at EUR 5.5 million and a margin of 13.4%.

Recurring revenue accounted for approximately 82% of total software revenue in 2025, up from 74% the year before, demonstrating the progress in our business model transformation, which we anticipate to complete in 2026. Lastly, for our segments, let's look at manufacturing on Slide 11, where macroeconomic headwinds continue to pose challenges, but strategic wins are paving the way for future growth. In the fourth quarter of 2025, the performance of our Manufacturing segment remained soft, with revenue declining 2% year-on-year to EUR 22.2 million. Persistent macroeconomic headwinds continue to weigh on demand, particularly in prototyping. We also experienced further growth in our strategic markets and in series manufacturing.

Notably, the successful closure of several major commercial contracts in aerospace and defense at year-end, as also mentioned already by Brigitte, will support our ongoing transition and will contribute to the results in coming periods. Given the lower top line, adjusted EBITDA for the quarter ended negatively at minus EUR 2.2 million. For the full year, manufacturing revenue declined by 13% to EUR 92.5 million with adjusted EBITDA of minus EUR 4.2 million, representing a negative margin of 4.6%. With the segment results covered, Slide 12 outlines our consolidated income statement, showing the drivers behind our improved quarterly profitability.

In Q4, gross profit reached EUR 40.8 million, representing a strong gross profit margin of 58.1%. For the full year, the gross margin was 57.1%, up from 56.5% in 2024. Operating expenses in the quarter were stable at around EUR 39 million, while 2025 included significant nonrecurring items, which were primarily related to our Euronext listing. These one-off costs amounted to around EUR 750,000 in Q4. For the full year, operating expenses increased by just 1.5% compared to 2024, with the main increase driven by higher R&D investments. Net operating income was with EUR 1.3 million in the quarter, consistent with EUR 1.4 million of last year. For the full year, this figure was EUR 3.8 million versus EUR 4.2 million in 2024.

As a result of these factors, our operating result in Q4 was also positive at EUR 3.1 million compared to a loss of minus EUR 1.3 million in the same period of last year. Full year operating results came in at EUR 8.9 million versus EUR 9.4 million in 2024. In Q4, our net financial income was EUR 2.4 million, reflecting currency exchange results, interest income from our cash reserves, offset by interest expenses on our debt. Income tax was also positive at EUR 0.7 million, in line with last year. Altogether, the net profit for the quarter was EUR 6.2 million or EUR 0.11 per share, more than double last year's EUR 2.9 million or EUR 0.05 per share. For the full year, net profit totaled EUR 7.7 million or EUR 0.13 per share.

Finally, let's review our balance sheet and cash flow position, which remains a key strength for Materialise. In Q4 of 2025, our balance sheet remains solid. Cash reserves at year-end increased to EUR 134 million, while gross debt amounted to EUR 63.1 million. This resulted in a net cash position of EUR 17.8 million, an improvement of nearly EUR 10 million since the start of the year, driven primarily by strong free cash flow. Compared to the balance sheet at year-end 2024, net working capital components increased by EUR 3 million. Total deferred revenue income stood at EUR 60.9 million, of which EUR 48.8 million was related to deferred revenue from Software license and maintenance contracts, as mentioned earlier.

In Q4, cash flow from operating activities was positive at EUR 5.3 million, slightly below the prior year's quarter as higher P&L contributions were offset by negative working capital movements. Capital expenditures totaled EUR 4.4 million, including EUR 2.1 million in nonrecurring investments. Repayment of a convertible loan by Fluidda, together with received government grants for investments contributed further to a positive free cash flow of EUR 4.5 million in the quarter. For the full year, our operational cash flow was more than EUR 25 million with the variance versus last year mainly driven by working capital movements. Lower investment levels improved free cash flow significantly to over EUR 15 million in 2025.

Over that same year, CapEx totaled EUR 16 million, around 6% of our revenue, split between recurring and nonrecurring investments. Nonrecurring CapEx fell to EUR 9 million in 2025 and included investments in ACTech's new facility and additional solar panel installations at various production sites. The recurring CapEx of EUR 7 million was primarily focused on machinery, printers and upgrades of our IT landscape.

And with that, I'd like to hand the call back to Brigitte.

Thank you, Koen. Let's turn to Page 14 for a quick review of our financial guidance. Looking forward at 2026, we see our 3 segments evolving at a different pace. We remain confident that our Materialise Medical segment will continue growing at a double-digit pace. Our Materialise Software segment will complete the transition towards a cloud-based subscription business model in 2026 and will continue its investments in a broader AM software ecosystem.

Our Materialise Manufacturing segment will intensify its ongoing shift towards series manufacturing and dedicated focus sectors. But we expect macroeconomic headwinds in the industrial market segment to persist throughout 2026. As a result, we expect revenue for 2026 to land in the range of EUR 273 million to EUR 283 million. We will continue investing in our Materialise Medical and Software segment while maintaining disciplined cost control and optimization, in particular in our Materialise Manufacturing segment and in our overhead.

As a result, we expect our adjusted EBIT to reach EUR 10 million to EUR 12 million for fiscal year 2026. At the same time, we will continue to actively pursue strategic M&A opportunities with EUR 134 million of cash and cash equivalents on our balance sheet, an improved net cash position and consistently positive operating and free cash flow, we are financially strong and well positioned to further drive innovation and capture emerging market opportunities.

This concludes our prepared remarks. Operator, we're now ready to open the call to questions.

[Operator Instructions]

Our first question comes from the line of Troy Jensen with Cantor Fitzgerald.

Congrats on the nice results. I guess I want to focus on the Manufacturing business. I think the math implies this, but are you assuming that Manufacturing is going to be down this year on a year-over-year basis?

Can you repeat the question because the line was not very clear.

Yes. I guess the math kind of implies if Medical is growing double digits, that Manufacturing is going to be flat to down, would you confirm that?

Yes, that's a correct assumption. So we assume that the current trends that we see driven by the weaker industrial climate, in particular in Europe, will continue to weigh on the manufacturing results, in particular on the prototyping segment.

Okay.

At the same time, we do expect the opportunities in those focus segments that we have been developing not only in the last quarter of 2025, but throughout the year, will continue to show growth. So aerospace and defense, in particular, are segments, as you know, that we're focusing on. Now 2026, we will not see full results of those investments in those focus segments yet because those sectors take a little bit of time to develop. So that's also why we remain a little cautious in our outlook for manufacturing in 2026.

Yes, that's fair. Any estimate on what percentage of manufacturing is for prototyping applications for you guys?

That's a percentage, Troy, that we haven't disclosed yet. We're looking into that if we can do that at some point. Nevertheless, I think numbers and the decline we show in prototyping indicate that it's still material part or a significant part of our business. It is going down quarter after quarter. We're picking that up in our new segments and strategic segments, but that transition is taking time. And for now, it still represents a fair share of our manufacturing business.

Okay. Understood. I guess then my question underneath all this is, I guess I know a lot of other 3D printing and CNC machine shops that are nicely EBITDA profitable at lower revenue levels. Is there more you guys can do to like take out costs and that EUR 90 million in annual sales, can you get to an EBITDA breakeven in the Manufacturing business?

So the strategy that we have is to focus on those segments where we see not only growth in the longer term in terms of additive. But at the same time, those are sectors where we believe we can differentiate and we have unique capabilities to offer. Now why do I mention this to your question? Well, that implies that we believe a stronger margin will be generated in those segments because we are just more uniquely positioned. So that's one. At the same time, undoubtedly, we will continue to work on cost optimization, I would call it, in our manufacturing segment and overhead across the company.

Okay. And then my last question is for Koen here. The OpEx, I want to ask about. In Q4, if you add all the 3 line items for OpEx, it was about EUR 39 million. In Q3, it was EUR 36 million. So we had like a EUR 3 million sequential increase in OpEx. Was there anything onetime-ish in Q4? Or is that the type of OpEx? Should we be modeling about EUR 39 million in OpEx in Q1?

No. Q4 is distorted to a certain effect with the -- mainly the nonrecurring costs related to the Euronext listing, and that is an amount of around EUR 750,000. So that is certainly an amount that you should take out of the baseline. And I think for the rest in general, we see typically our general operating costs a bit higher in the fourth quarter. So if you make a full year projection, I should not base entirely only on the fourth quarter, but level it out a bit across the multiple quarters of the year.

Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Brigitte for closing remarks.

Thank you, and thank you all for joining us today. We look forward to continuing our dialogue with you through investor conferences or in one-on-one meetings or calls. And I'm also looking forward to meeting some of you in person at the upcoming AMS conference and the AOS event in the U.S. In the meantime, please reach out if you have any questions. Thank you, and goodbye for now.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.

Good day, and welcome to the Q3 2025 Materialise Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Ms. Harriet Fried with Alliance Advisors.

Thank you, everyone, for joining us today for Materialise's quarterly conference call. With us on the call are Brigitte de Vet, Chief Executive Officer; and Koen Berges, Chief Financial Officer.

Today's call and webcast are being accompanied by a slide presentation that reviews Materialise's strategic, financial and operational performance for the third quarter of 2025. To access the slides, if you have not done so already, please go to the Investor Relations section of the company's website at www.materialise.com. The earnings release that was issued earlier today can also be found on that page.

Before we begin, I'd like to remind you that management may make forward-looking statements regarding the company's plans, expectations and growth prospects, among other things. These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change.

Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent date. Management disclaims any duty to update or revise any forward-looking statements to reflect future events or changes in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F filed with the SEC.

Finally, management will discuss certain non-IFRS measures on today's call. A reconciliation table is contained in the earnings release and at the end of the slide presentation.

With that introduction, I'd like to turn the call over to Brigitte de Vet. Go ahead, please, Brigitte.

Good morning and good afternoon and thank you all for joining us today. You can find the agenda for our call on Slide 3. First, I will summarize the business highlights for the third quarter of 2025. Then I will pass the floor to Koen, who will take you through the third quarter financials. Finally, I will come back and explain what we expect for the remaining months of 2025. When we've completed our prepared remarks, we'll be happy to respond to questions.

Moving to Slide 4 for the highlights of the third quarter 2025. While our overall revenue remained under pressure, I am very pleased with the continued strong growth of our medical unit, where we achieved double-digit growth again on the back of an exceptionally strong third quarter last year.

Today, I would like to highlight the progress that we are making in the cardiac segment, one of our newer markets. In 2025, we acquired FEops, a company specializing in AI-driven simulation technology for structural heart interventions. FEops' predictive simulation technology complemented our Mimics Planner, adding advanced simulations to its anatomical measurements.

We have now taken 2 important steps in this market. First, we recently released the next version of FEops' heart guide for transcatheter aortic valve replacement, adding important features to the planner. In addition to giving physicians insights into the right size and position of the device in the aortic route, this release helps them to manage the lifetime of the patient. Specifically, this new release includes a predictive simulation of the potential ways to treat the patient should he or she come back for reintervention a couple of years down the line.

Secondly, we generated additional clinical evidence to underline the benefits of our cardiac planners. As an example, in a prospective study with 126 patients, a leading cardiac center demonstrated time savings of up to 91% for patients undergoing transcatheter aortic valve replacement. This important time saving came with high accuracy combined -- compared to standard planning tools.

Also, the fact that the cardiac planner is a cloud-based system that can be accessed from anywhere by the heart team, which typically consists of several specialties, facilitated the discussions in the preparation of the intervention. This evidence shows that our AI-enabled automatic case planning could play a role in generating efficiencies in this type of procedures, thus potentially enabling the treatment of more patients with a personalized approach in the future. The improved features of our planners and the additional evidence will strengthen our position in this market and provide a great foundation to treat more patients in the cardiac space.

I would also like to highlight the progress we made in our existing markets. As an example, we released a new version of our Mimics Enlight CMF planner. You might remember that this software was one of the finalists for the TCT award in the healthcare category earlier this year.

In this new version, customers can now benefit from a range of AI algorithms that enable them to plan cases faster and more efficiently. And this is particularly important, for example, for trauma cases. Trauma patients come to the hospital after accidents, sometimes with complicated fractures and multiple fragments of the jaw that the surgeon needs to puzzle together. The trauma planner of Mimics Enlight CMF now gives the surgeons the ability to efficiently plan the procedures and piece those fragments together.

This planning also helps to gain time during the procedures because the surgeon knows how to treat the patient. In addition, the surgeon knows what type of device to use in the procedure. And in a world where more and more devices come in a sterile package, it saves a lot of cost if you only open what you need rather than trying multiple products and then having to resterilize and repackage or in some cases throw away what you don't need.

So in summary, this new release of Mimics Enlight CMF enables us to target the trauma segment, which is a significant part of the market and first feedback from customers is encouraging.

Turning now to our Materialise Software segment. We continue to make progress to establish CO-AM as the ecosystem for all AM operations. In the last 12 months, we launched our Magics SDKs and the next generation of our build processors. As a reminder, our Magics SDKs allow users to create custom preprint workflows by tapping into more than 800 algorithms built over 35 years. These SDKs enable customers to scale AM operations efficiently and print complex, high-performance geometries while avoiding field builds and improving part quality, all of this while protecting the intellectual property behind component designs.

Similarly, the advanced algorithms of the next-generation build processors significantly improve build time and quality, thanks to, for example, its advanced strategies for multi-lasers. And they enable a variety of collaboration models, including the possibility for customers to build their own build processors, thanks to the availability of our SDKs.

We are now going a step further by launching a low-code enabling technology on CO-AM, making these SDKs more accessible for customers without a deep engineering background. This facilitates new product introductions of our customers and enable easy workflow automation for large-scale applications. The new capabilities, therefore, have the potential to drive efficiencies and optimize the cost of additive parts. We are currently preparing for next month's Formnext, where you will hear more about this and our other capabilities on the CO-AM ecosystem.

Finally, in our Materialise Manufacturing segment, we continue to execute on our strategy while facing continued headwinds in some market segments, including the automotive sector. Specifically, at ACTech, we continue to invest in the huge and heavy segment by adding machines able to produce giga castings and other large and complex parts, often at a significant weight.

As a reminder, in the third quarter 2024, we celebrated the opening of our second ACTech plant and shipped first parts in the fourth quarter 2024. In segments beyond automotive, such as aquaculture, mining, maritime or energy, parts are typically not only larger and heavier, but also more complex, for example, to achieve better thermodynamic cycles in the large engines with maximum fuel efficiency.

The combination of high-precision sand printing, casting and complex post-treatment that we can now offer at ACTech is ideal for these parts. Also, the machines installed in 2025 enable the automation required to produce these complex parts not only for prototypes, but also in small series.

I would also like to highlight the progress we are making in the defense sector, where in light of the current geopolitical landscape and the breakdown of traditional global alliances, spending is increasing, in particular, in Europe in order to strengthen resilience and autonomy of the various regions.

After the announcement of our broad engagement in this sector, we attended DSEI, one of the world's largest defense and security trade exhibitions and attended a series of other events, engaging with major primes and showcasing our capabilities.

Additive manufacturing addresses the defense industry's challenges as additive manufacturing enables rapid, flexible and sustainable production of mission-critical components, reduces logistical constraints, fosters innovation and strengthens strategic autonomy in a complex and evolving security environment. The positive interactions with stakeholders in the industry confirmed that our additive production capabilities in Europe and our software capabilities globally are valuable assets to address the current challenges of the defense industry.

I will now turn over to Koen, who will present the financial results.

Thank you, Brigitte. Good morning or good afternoon to all of you on this call. I'll begin with a brief overview of our key financial results, as shown on Slide 5. Our consolidated revenue grew by 2% compared to Q2 of this year, but ended with EUR 66.3 million, 3.5% lower than last year's strong third quarter.

Our gross profit margin remained strong at 56.8% in the third quarter of this year, fully in line with the margin realized over the first 9 months of 2025. Adjusted EBIT for the third quarter of '25 amounted to EUR 2.9 million, representing an adjusted EBIT margin of 4.4% of revenue.

Over the third quarter of this year, we generated a net profit of EUR 1.8 million. Driven by strong free cash flow in the third quarter of this year, we further increased our net cash position to EUR 67.7 million. In the following slides, I will elaborate further on these results. As a reminder, please note that unless stated otherwise, all comparisons are against our results for the third quarter of 2024.

Turning now to Slide 6. You will see an overview of our consolidated revenue. In the third quarter of this year, Materialise Medical posted an all-time revenue record of EUR 33.3 million, growing by more than 10% compared to a particularly strong third quarter of last year.

On the other hand, revenues from our Software and Manufacturing segments continue to be impacted by macroeconomic headwinds. As a result, revenue in both segments declined by 7% and 17%, respectively, leading to an overall decrease of 3.5% of our consolidated revenue compared to last year's period, while unfavorable ForEx effects, mainly due to a weaker U.S. dollar also impacted our top line this quarter.

As you can see in the graph on the right side of the slide, Materialise Medical accounted for 50%, Materialise Software for 16% and Materialise Manufacturing for 34% of our total revenue over the third quarter of 2025. Our deferred revenue balance related to software maintenance and license fees coming from both our Medical and Software segments decreased in the third quarter of this year, which is fully in line with our seasonal pattern. Over the last 12 months, however, the balance increased by EUR 4.2 million, bringing the total amount carried on our balance sheet at the end of the third quarter of 2025 to EUR 45.3 million.

On Slide 7, you will see our consolidated adjusted EBIT and EBITDA numbers for the third quarter of 2025. Consolidated adjusted EBIT totaled EUR 2.9 million compared to EUR 4.4 million for the same period of '24, representing an adjusted EBIT margin of 4.4%. Consolidated adjusted EBITDA for the third quarter amounted to EUR 8.4 million, decreasing from EUR 9.9 million in 2024, representing an adjusted EBITDA margin of 12.7%.

Given current market volatility, we believe that it's important to also compare our operational performance on a quarter-over-quarter basis. In this context, both adjusted EBIT and EBITDA remained roughly stable compared to the second quarter of this year and are significantly up from the beginning of 2025 as a result of disciplined cost control and of targeted cost reduction measures, we have taken to safeguard operational profitability. Year-to-date, we generated now EUR 6.6 million of adjusted EBIT and EUR 22.9 million of adjusted EBITDA.

Moving now to Slide 8. You will notice that the revenue in our Materialise Medical segment, as already mentioned, increased by 10% compared to the particularly strong third quarter of 2024. The growth was again generated by both medical software and by revenue from medical devices sales, which grew respectively, by 6% and 12%.

Within our Medical Devices and Services activity, we saw continued growth in both our direct and our partner sales. In line with the top line growth, adjusted EBITDA grew further to EUR 10.2 million, resulting in an adjusted EBITDA margin of more than 30%. We further increased our R&D investments in Medical and will continue to do so in coming months in order to drive future growth. Year-to-date, our Medical segment realized revenue of EUR 97.2 million, up by 15% from last year, with an adjusted EBITDA of EUR 30 million, which represents a 31% adjusted EBITDA margin.

Slide 9 summarizes the results of our Materialise Software segment. In the third quarter, software revenue decreased by 7% to EUR 10.3 million. This was partly due to unfavorable ForEx impacts, while macroeconomic and geopolitical uncertainty also continued to put pressure on our sales volumes, especially in the U.S. markets.

During the third quarter, we continued our transition to cloud subscription-based business model. Over the quarter, around 83% of the software revenue was of a recurring nature versus 74% in the same quarter of last year, demonstrating the progress we keep making here.

Despite the lower top line, effective cost management allowed us to keep the adjusted EBITDA margin stable at around 18% compared to the same period of last year, leading to an adjusted EBITDA of EUR 1.8 million. Year-to-date, our Software segment realized EUR 30 million of revenue and an adjusted EBITDA of EUR 3.8 million.

Now let's turn to Slide 10 for an overview of the performance of our Materialise Manufacturing segment. In the third quarter of this year, the performance of manufacturing remained weak, with revenue declining by 17% compared to last year's third quarter and ended at EUR 22.7 million.

Compared to Q2 of this year, however, revenue increased slightly. The macroeconomic headwinds we have been facing for some time continue to impact our operational results. Mainly as a result of the lower top line, the adjusted EBITDA of the Manufacturing segment ended negative this quarter at minus EUR 0.8 million, stable compared to this year's second quarter though. Year-to-date, our Manufacturing segment realized revenue of EUR 70.3 million with an adjusted EBITDA of minus EUR 2 million.

Slide 11 provides the highlights of our consolidated income statement for the third quarter of this year. And over the period, our gross profit amounted to EUR 37.7 million, representing a stable gross profit margin of 56.8% compared to the previous quarters of this year, but slightly below the 57.2% realized in a strong Q3 of 2024.

Our operating expenses in the quarter increased only by EUR 0.2 million or less than 1% in aggregate compared to the same period of last year, with R&D expenses increasing 4% year-over-year. During the quarter, we invested again over EUR 11 million in R&D, the majority of which was in our Medical segment.

Sales and marketing remained flat year-over-year, while G&A expenses decreased by almost 3%, reflecting the impact of continued cost control. Net operating income in the quarter was EUR 0.9 million, remaining stable compared to prior year. As a result of all of these elements, the Group's operating result in the quarter was EUR 2.5 million.

In Q3 2025, the net financial results amounted to a limited loss of EUR 0.1 million. Interest income on our cash reserves offset the interest expense on our financial debt and the negative impact from foreign exchange fluctuations. Last year's corresponding period, the net financial loss was minus EUR 1.1 million, mainly due to large unfavorable exchange rate effects at that time.

Income tax expense in the quarter amounted to EUR 0.6 million compared to a tax expense of EUR 0.1 million in the corresponding period of last year. And as a result, we once again generated a positive net result in the third quarter of this year, amounting to EUR 1.8 million, representing EUR 0.03 per share.

Now please turn to Slide 12 for a recap of balance sheet and cash flow highlights. And also for the third quarter of 2025, we can report a strong balance sheet. Our cash reserve further increased to EUR 132 million at the end of the quarter. At the same time, our gross debt also increased to EUR 64 million. Both changes were impacted by an additional EUR 50 million drawing we made during Q3 on an existing bank credit facility in line with contractually agreed drawing periods.

In the next 12 months, we will be drawing the remaining EUR 50 million of this facility. The net cash position at the end of the quarter, which is not impacted by these additional drawings, amounted to EUR 67.7 million, up by almost EUR 7 million compared to the beginning of this year, mainly driven by strong free cash flow.

Trade receivables, inventory and trade payable positions on our balance sheet all decreased compared to the position at the end of last year. The total deferred income position decreased to EUR 58 million, out of which EUR 45 million was related to deferred revenue from software license and maintenance contracts, as mentioned earlier, reflecting the seasonal pattern of deferred revenue evolutions.

As you can see from the graphs on the right side of the page, the operating cash flow in the third quarter amounted to EUR 10.4 million, significantly up from the EUR 6.9 million generated in the third quarter of 2024. Capital expenditures for the third quarter amounted to EUR 5.3 million, including EUR 3.1 million of non-recurring CapEx, mainly spent on remaining machinery for the new ACTech plant and on the installation of a solar panel park at HTU.

Year-to-date, total CapEx amounts to EUR 11.8 million, out of which 60% or close to EUR 7 million can be considered to be of a non-recurring nature. Over the first 9 months of this year, the operating cash flow amounted to EUR 20 million, while the year-to-date free cash flow is positive at around EUR 11 million.

And with that, I'd like to hand the call back to Brigitte.

Thank you, Koen. Let's now turn to Page 13. I'll conclude my remarks with a discussion of our full year 2025 guidance. As we approach the end [indiscernible] continue to impact the business environment in which we operate in our Manufacturing and Software segments.

For fiscal year 2025, we therefore maintained our guidance as previously communicated with revenues in the range of EUR 265 million to EUR 280 million and adjusted EBIT in the range of EUR 6 million to EUR 10 million. We remain confident that our business is solid and resilient and that Materialise is strongly positioned to capture growth opportunities once market conditions improve.

This concludes our prepared remarks. Operator, we're now ready to open the call for questions.

[Operator Instructions] And our first question will come from the line of Troy Jensen with Cantor Fitzgerald.

Congrats on the nice results. So, I'd just like to just unpack a little bit in Medical. Could you kind of give us an update on -- I guess I'm trying to figure out like relative exposure. I think of you guys as probably CMF and HIPS as the 2 biggest sections. I just would be curious if you could kind of rank order. And then this cardiac and some of these other things, how big and important can they be for next year here?

Yes. So I think in general, Troy, I mean, obviously, a very good question. I think what we've repeatedly communicated is that we have our existing markets and some new markets. So CMF, orthopedics and our research and engineering segments are the existing markets where we've already been active for quite a long time and that those markets are a little more mature than the others.

In our new markets, we address the cardiac and the respiratory space in particular is new markets. So of course, the majority of our revenue comes from our existing markets. The new markets are still small, but we expect them to grow faster than the existing markets in the future. That's kind of how you need to think about that. Now within the existing markets, all 3 markets remain very important for us.

Okay. All right. And how about just manufacturing here? I get a bunch of questions. I'll just rattle them off quick and see if you can hit them all. But you just hopes on a recovery, and I'm just kind of curious how big is aerospace and defense as a percentage of revenue?

So aerospace remain -- it has been a focus segment for us for quite a while. We see in the aerospace segment in general, we have seen continuous growth in that segment and we do believe that that's going to continue.

Now the defense industry is a newer industry for us, at least with the broad engagement that we have communicated about earlier this year. So, the defense area at this point in time is not a significant market for us yet. At the same time, with -- as I mentioned earlier in my remarks, I think with the interactions we had so far, I see potential in that defense segment as our capabilities that we have built for aerospace can particularly be leveraged in the defense industry going forward.

On the defense side, Brigitte, is it more on the metals front or is it polymers also?

It's actually a combination of polymer and metal. I'll give you an example on the aerospace segment, where our polymer offering is really important. There's 2 different applications on the polymer side that you can think about. One is interiors for the aerospace segment at large, in particular, for commercial aircraft as an example. The second is tooling where our polymer capabilities are helpful for aerospace companies, and in particular, the larger OEMs driving this. As an example, we were the first qualified supplier for Airbus in the polymer segment and that's a couple of years back.

Okay. If I could sneak one more in. Can you just talk about just the manufacturing profitability? I mean, obviously, it's been a drag on you guys, unfortunately, here at these revenue levels. Any thoughts on either a recovery in kind of European industrial markets to drive better profitability or are there other things you can do to kind of cut costs to try to prevent that from diluting kind of the profitability level?

Yes. So I'll give you a double answer. So the first part of the answer is that, as Koen highlighted in his review of the financials, we have taken measures to significantly reduce our cost end of last year, earlier this year. And we do see the impact on our financials in manufacturing already. They might not be super visible on the EBIT and EBITDA lines given the weakness -- the continued weakness we see on the revenue line, but they have been making a difference, as Koen highlighted. So that's the first one.

The second element to the answer I would give is there is 2 things really we need to see recovery on the revenue line. As you mentioned, the European environment is a really important one for us. So recovery in the European markets will certainly be a driver to bring our revenues to a more usual level.

The second element that is important to keep an eye on is the automotive sector as such, because admittedly, in manufacturing at large, we are still exposed to the automotive industry and that is in Europe and in the U.S. And the recovery of the automotive industry will help us to recover to a more normal level on the revenue side as well. So it's really those 2 drivers that we need to keep an eye on.

I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Ms. Brigitte de Vet for any closing remarks.

Thanks again for joining us today. We obviously look forward to continuing our dialogue with you through investor conference or in one-on-one virtual meetings or calls. And we are also looking forward to meeting some of you in person at the upcoming Formnext event in November. In the meantime, please reach out if you have any questions. Thank you, and goodbye for now.

This concludes today's program. Thank you all for participating. You may now disconnect.