MATERIALISE NV — Call Transcript 2026

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.

Speaker 5: 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. Hello, and Welcome to the Q1 2026 Materialise NV Financial Results Conference Call. hello and welcome to the q1 2026 materialise nv financial results conference call At this time, all participants are in a listen-only mode. 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 . 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. please be advised that today's conference is being recorded It is now my pleasure to introduce Managing Director at Alliance Advisors, Jody Burfening. it is now my pleasure to introduce managing director at alliance advisors jody burfening

Speaker 3: 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. Good morning. good morning Thank you for joining us today for Materialise's quarterly conference call. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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? A reconciliation table is contained in the earnings press release and at the end of the slide presentation. 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. now i would like to turn the call over to brigitte de vet Brigitte? brigitte

Speaker 2: 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. Good morning and good afternoon. good morning and good afternoon Thank you everyone for joining us today. thank you everyone for joining us today You can find the agenda for our call on slide three. you can find the agenda for our call on slide three First, I will summarize the business highlights for the first quarter of 2026. 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. 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. 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. 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. 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. 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. 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. RapidFit is a specialized business that delivers custom 3D-printed jigs, fixtures, and quality control solutions primarily for the automotive industry. 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. 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. 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. 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. 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. 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. 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. Materialise will retain a minority stake in the newly formed Eyewear company. 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. 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. all employees currently supporting the rapidfit and eyewear business will transition to the new companies Both businesses were part of our manufacturing segment. both businesses were part of our manufacturing segment Financial terms will not be publicly disclosed. financial terms will not be publicly disclosed Turning now to the highlights in the medical segment. turning now to the highlights in the medical segment Starting with our CMF market. starting with our cmf market In February, we expanded our cranio-maxillofacial portfolio with the addition of custom-made PEEK implants. 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. 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. until now surgeons working with materialise had titanium as their patient-specific option With this launch, they have an additional choice. 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. The new offering integrates seamlessly into our existing digital workflow and completes our offering. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Alongside these offerings, we also announced CO-AM Brix. 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. 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. 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. 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. 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. 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. 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. It gives teams access to centralized AM data, hence share one source of truth across teams. 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. 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. also in the first quarter we continued to expand our partnerships As a particular highlight, I would like to mention the collaboration with HP. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Before we move to the first quarter financials, I want to mention two other recent highlights. 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. 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. 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. 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. 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. a couple of drivers contributed to this We switched our standard PA 12 material used in selective laser sintering to a carbon-reduced version. 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. 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. 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. turning over to koen now who will present the financial results

Speaker 4: 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. Thank you, Brigitte. thank you brigitte Good morning or good afternoon to all of you on this call. 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. 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. 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. 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. 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. net profit for the quarter was at eur 1.8 million or eur 0.03 per share We also further strengthened our balance sheet. 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%. 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. 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. 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. as a reminder unless stated otherwise all comparisons are versus the first quarter of 2025 Slide seven provides an overview of our consolidated revenue. 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. 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. 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%. 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%. On a constant currency basis, Medical would have delivered double-digit growth again, and Software would also have grown year-on-year. 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. 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%. 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. 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. 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. 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%. 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 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. 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. 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. let me now turn to our business segments starting with materialise medical shown on slide nine Medical revenue increased 7% year-on-year. medical revenue increased 7% year-on-year Growth was driven primarily by medical devices, which grew 11%, supported by both direct and partner sales. 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. 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%. 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. 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. 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. 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. 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%. on a constant currency basis revenue increased by 5% We continued our transition towards a cloud-based subscription model. 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. 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. 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. 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. Manufacturing revenue declined 8% to EUR 23.5 million. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Now, finally, let's review our balance sheet and cash flow position, which remains a key strength for Materialise on slide 13. 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. 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. 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. 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. 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. 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 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. 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. with that i'd like to hand the call back to brigitte

Speaker 2: 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. Thank you, Koen. thank you koen Let's now turn to page 14. let's now turn to page 14 I'll conclude my remarks with a discussion of our full year 2026 guidance. 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. 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. 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. 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. 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. 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. 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. this concludes our prepared remarks Operator, we are now ready to open the call to questions. operator we are now ready to open the call to questions

Speaker 5: 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. Certainly. certainly As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. 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. to withdraw your question please press star one one again One moment, please. one moment please Our first question comes from the line of Alexander Craeymeersch with Kepler. our first question comes from the line of alexander craeymeersch with kepler

Speaker 1: Good morning. Can you hear me well? Good morning. good morning Can you hear me well? can you hear me well

Speaker 2: Yes, we can hear you. Good afternoon, Alexander. Yes, we can hear you. yes we can hear you Good afternoon, Alexander. good afternoon alexander

Speaker 1: 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? Good afternoon. good afternoon Alexander from Kepler Cheuvreux here. alexander from kepler cheuvreux here Thank you for taking my questions. thank you for taking my questions I have three. 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. 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. 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. 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. 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? 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. Maybe a question that is somewhat related to this. Considering the high margins in medical, do you see already some increased competition? 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. 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? 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. thank you

Speaker 2: 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. Thanks, Alexander. thanks alexander I'll make an attempt at answering your first question, and the second, I'll point to Koen for your third question. 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. your question is on the end markets The picture on the end markets really varies. the picture on the end markets really varies There's a difference in the regional dynamics that we see. 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. 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. 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. 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. 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. 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. 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. think about aerospace In our aerospace market, we see further investments in our end markets that also benefits the additive industry, including us. 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. 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. 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? On the other hand of the spectrum, you see the automotive industry. on the other hand of the spectrum you see the automotive industry The healthcare market at large globally remains a healthy environment. 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. 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? does that answer your first question

Speaker 1: Yes, that does answer the first question. Yes, that does answer the first question. yes that does answer the first question

Speaker 2: Let me. Let me. let me

Speaker 1: Maybe- Maybe- maybe-

Speaker 2: Yeah. Go ahead. Yeah. yeah Go ahead. go ahead

Speaker 1: 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? Yeah. yeah Maybe a small follow-up on 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? just could you give us a reminder on how big aerospace and defense is in the total portfolio

Speaker 2: 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. I don't think we've disclosed the number, you know, in terms of the percentage of the total revenue. 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. 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 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. 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. 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%. 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. 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, 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. 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. 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. that's on your margin question I mean, in the medical market, you pointed towards competitive trends and whether we see increased competition. i mean in the medical market you pointed towards competitive trends and whether we see increased competition There's always competition. there's always competition We've had competition, you know, in a number of our medical segments for, you know, a while. 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. 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? Obviously, we had and we still have a head start, you know, in those markets as we built many of these markets. 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. 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. 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? 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

Speaker 1: Yes. Thank you. Yes. yes Thank you. thank you

Speaker 2: Maybe turning to the last one on the guidance. Maybe turning to the last one on the guidance. maybe turning to the last one on the guidance

Speaker 4: 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. I will take that one, Alexander Craeymeersch. 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. 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. 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. 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. 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. 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. 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

Speaker 2: As we see now in the first quarter as well. As we see now in the first quarter as well. as we see now in the first quarter as well

Speaker 1: Okay, very clear. Thank you very much. Okay, very clear. okay very clear Thank you very much. thank you very much

Speaker 5: 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. Thank you. thank you As a reminder, to ask a question, please press star one one on your telephone. as a reminder to ask a question please press star one one on your telephone I'm showing no further questions. i'm showing no further questions With that, I'll hand the call back over to management for any closing remarks. with that i'll hand the call back over to management for any closing remarks

Speaker 2: 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. Thanks again for joining us today. 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 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. 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. 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. in the meantime please reach out if you have any questions Thank you and goodbye for now. thank you and goodbye for now

Speaker 5: Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect. Ladies and gentlemen, thank you for participating. ladies and gentlemen thank you for participating This does conclude today's program, and you may now disconnect. this does conclude today's program and you may now disconnect