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…

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…

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.