MTLS

Hello, and Welcome to the Q1 2026 Materialise NV Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question there in the session you need to press star one one on your telephone, you'll then hear a mini-message advising your hand has been raised to enter your question please press star one one again . 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. 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. 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 three. First, I will summarize the business highlights for the first quarter of 2026. I will pass the floor to Koen, who will take you through the first quarter 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 four 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 31st, 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 setup enables RapidFit to make decisions closer to its customers and markets while allowing Materialise to concentrate investments 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 CMF 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 metal implants do, enabling clearer post-operative 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. 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. 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're 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.

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 its 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 three 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 Magics 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 pre-sales program for Magics customers approaching their renewal cycles. We now have seven customers actively onboarding CO-AM Pro in May, with full global availability expected for 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, hence 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 ad hoc 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 their 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 one 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 EUR 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 two 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 target for greenhouse gas emissions, achieving a total reduction of over 1,500 tons of CO2 across our operations over a rolling two-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 saving 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 three 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 six. In the first quarter, revenue was EUR 66.3 million, stable year-over-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, corresponding to a 3.7% margin, demonstrating our ability to convert the 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 seven provides an overview of our consolidated revenue. In Q1 of 2026, asset revenue remained stable at EUR 66.3 million, despite an 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 15% of 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 eight, I'd like to highlight the progress we've made on 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 nine. 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 USD. On a constant currency basis, asset medical revenue as a whole grew 10%.

Adjusted EBITDA increased to EUR 9.2 million, representing a 20% margin while we continued 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 Forex. 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. 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 three quarters, reflecting growth in our strategic focus areas, aerospace, defense, and semiconductor. 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 of 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 a positive net result in the first quarter of this year, amounting to EUR 1.8 million, representing EUR 0.03 per share.

Now, 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 non-recurring investments in this quarter. As a result, free cash flow after investing activities was EUR 5.7 million. 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 divestment of RapidFit and Eyewear, we reaffirm our full year revenue guidance of fiscal year 2026 in the range of EUR 273 million-EUR 283 million. In addition, we are also maintaining our adjusted EBIT guidance for fiscal year 2026 of EUR 10 million-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 three 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 are now ready to open the call to questions.

Certainly. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment, please. Our first question comes from the line of Alexander Craeymeersch with Kepler.

Good morning. Can you hear me well?

Yes, we can hear you. Good afternoon, Alexander.

Good afternoon. Alexander from Kepler Cheuvreux here. Thank you for taking my questions. I have three. I think the first one is rather giving 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. The second question would be on the medical segment. Last time we discussed, I think you were quite confident that the margins in medical would continue to grow or at least stay stable. I'm a little bit surprised that the margins in medical decreased 200 basis points now. Could you maybe give a rational explanation for this?

Maybe a question that is somewhat related to this. Considering the high margins in medical, do you see already some increased competition? The last question I had for the current guidance. Of course, you now divested two minor assets, but I'm just wondering whether the EUR 10 million-EUR 12 million in EBIT guidance, if that is based on the assumption that manufacturing is running at a negative EBITDA, or is it at a positive EBITDA for the full year 2026? Thank you.

Thanks, Alexander. I'll make an attempt at answering your first question, and the second, I'll point to Koen for your third question. Your question is on the end markets. The picture on the end markets really varies. 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. In Europe, the environment remains rather soft when it comes to our end markets. That is also particularly for the automotive industry that, you know, we still, you know, are highly active in. 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. In our aerospace market, we see further investments in our end markets that also benefits the additive industry, including us. Defense is another industry whereas, you know, our budgets are being freed up now and where we see positive dynamics. It's a very diverse picture where the U.S. markets are showing a more positive trend than the European markets, and where in end markets, we see a big difference from the You know, on the one hand of the spectrum, you see the positive side, the aerospace on the lower and softer dynamic.

On the other hand of the spectrum, you see the automotive industry. The healthcare 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, you know, funding cuts that have been issued already last year, and they're continuing this year. Does that answer your first question?

Yes, that does answer the first question.

Let me.

Maybe-

Yeah. Go ahead.

Yeah. 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, you know, in terms of the percentage of the total revenue. What I can say is that, in the aerospace dynamics, we've previously communicated in the last couple of quarters that our growth was higher at 20%, and we see that confirmed this quarter as well. Maybe shift to the medical segment and your question on the margins.

Maybe on the medical segment at large, what we have previously communicated, throughout, you know, throughout 2025, for medical, was that what we see structurally as a healthy and sustainable growth rate and margin rate, would be so 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, you know, just under 30%. So the 28% margin that we show this quarter, are more or less according to that expectation.

Obviously, you know, with the price 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, you know, has a very different profile from the fourth quarter typically. That's on your margin question. 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, you know, in a number of our medical segments for, you know, a while. I don't see any dramatic changes in that competitive field.

Obviously, we had and we still have a head start, you know, in those markets as we built many of these markets. It's a healthy and 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 markets. Now that's a smaller part of, you know, our business, but that's potentially the shift in market dynamics that is observably high. Does that answer your question?

Yes. Thank you.

Maybe turning to the last one on the guidance.

I will take that one, Alexander Craeymeersch. 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 divestment will put some pressure on our top line because we're losing that revenue. At this stage, we believe that we will be able to absorb that gap in, and that's why we keep the guidance unchanged. On the other hand, there is of course also an impact on our bottom line EBIT, EBITDA, where we believe that impact will be positive, of course, over the longer, over the longer term.

Where you ask 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.

Okay, very clear. Thank you very much. Thank you. As a reminder, to ask a question, please press star one one on your telephone. I'm showing no further questions. 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. 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. 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.