Materialise N.V. Q4 FY2025 earnings call

• On November 20, 2025, Materialise completed its dual listing on Euronext Brussels, complementing its NASDAQ listing. A share buyback program of up to EUR 30 million started on January 26, 2026, with 187,500 shares acquired for just below USD 1 million. - In Medical, surpassed 700,000 patients treated with personalized solutions and released new version of Mimics Flow with enhanced functionality, new licensing system, and new pricing structure. - In Software, introduced 3 tailored CO - AM solutions and CO - AM Brix, which has shown significant impact in automating processes. - In Manufacturing, merged iMaterialise and Materialise Onsite, made progress in key verticals like aerospace and defense, with awards in SONRISA project and Eurodrone project.

In the fourth quarter of 2025, consolidated revenue grew by 6.8% year - on - year to EUR 70.2 million. Materialise Medical saw revenue grow by over 16% to EUR 37 million, with adjusted EBITDA rising to EUR 13 million and a margin of 35%. Software revenue was around EUR 11 million, with recurring revenue from software maintenance and license sales growing by 4% year - on - year, and adjusted EBITDA at EUR 1.7 million with a margin of 15.5%. Manufacturing revenue declined 2% year - on - year to EUR 22.2 million, with adjusted EBITDA negative at minus EUR 2.2 million. For the full year 2025, revenue totaled EUR 268 million, with Medical representing 50% of total annual revenue, manufacturing 35% and software 15%. Medical segment revenue increased by 15% to EUR 134 million, software segment revenue was EUR 41 million (down 7% from 2024), and manufacturing revenue declined by 13% to EUR 92.5 million.

• Anticipate 2026 revenue to be in the range of EUR 273 million to EUR 283 million. - Expect adjusted EBIT to reach EUR 10 million to EUR 12 million for fiscal year 2026. - Continue to actively pursue strategic M&A opportunities with strong financial position.

• Macroeconomic headwinds in the industrial market segment may persist, impacting Manufacturing segment. - Competitive dynamics and industry change could cause actual results to differ from expectations. - Unfavorable foreign exchange effects can weigh on top line.

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

A: Yes, that's a correct assumption. The current trends driven by the weaker industrial climate, in particular in Europe, will continue to weigh on the manufacturing results, in particular on the prototyping segment. At the same time, opportunities in focus segments like aerospace and defense are being developed but will not show full results yet.

Q: Any estimate on what percentage of manufacturing is for prototyping applications for you guys?

A: That's a percentage we haven't disclosed yet. We're looking into it, but the decline in prototyping indicates it's still a significant part of our business.

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

A: The strategy is to focus on segments where we can differentiate and see longer - term growth in additive. We will also continue to work on cost optimization in the manufacturing segment and overhead across the company.

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

A: Q4 is distorted by nonrecurring costs related to the Euronext listing, around EUR 750,000. You should take that out of the baseline. Typically, general operating costs are a bit higher in the fourth quarter, so don't base entirely on the fourth quarter when making a full year projection.