Materialise N.V. Q1 FY2026 earnings call

• Business highlights: Transferred Rapid Fit and eyewear businesses. In medical segment, expanded cranio-maxillofacial portfolio with custom-made PEEG implants and launched OptoView 3D HIP. In software, introduced CoEM solutions, ran early access program, expanded partnerships with HP. Published annual report and completed CSRD sustainability reporting. - Financials: Revenue 66.3 million euro stable year on year. Gross profit 37.9 million euro, gross margin over 57%. Adjusted EBIT 2.5 million euro, margin 3.7%. Medical revenue grew 7%, software revenue slightly down 1%, manufacturing revenue down 8%. Adjusted EBITDA improved in medical and software, manufacturing adjusted EBITDA turned positive.

Medical revenue increased 7% year on year to 33.2 million euro, accounting for 50% of total revenue. Software revenues decreased slightly by 1% to 9.6 million euro, accounting for 15% of total revenue. Manufacturing revenue declined 8% to 23.5 million euro, accounting for 35% of total revenue. Medical devices grew 11%, medical software declined 3% (largely due to unfavorable Forex). Software revenues decreased slightly by 1% (largely due to foreign exchange, but 83% of software revenue was recurring). Manufacturing revenue declined 8% but adjusted EBITDA turned positive again.

• Reaffirmed full year 2026 revenue guidance in the range of 273 million to 283 million euro. - Maintained adjusted EBIT guidance for fiscal year 2026 of 10 to 12 million euro. - Anticipated macroeconomic and geopolitical uncertainty to persist but continue to have confidence in underlying business fundamentals with strategic initiatives supporting improved performance.

• Competitive dynamics and industry change could cause actual results to differ materially from expectations. - Foreign exchange movements may impact financial results. - Funding cuts in US academic markets (small part of business) could affect performance.

Q: How are end markets moving with current market turmoil and glimpse of aerospace and defense in total portfolio?

A: End markets vary with US markets showing more positive trend than European. Aerospace growth higher than 20% previously.

Q: Explanation for medical segment margin decrease and competition?

A: Margin decrease consistent with expectations due to seasonality and Forex. No dramatic changes in medical competition.

Q: Guidance regarding divestments and manufacturing EBITDA?

A: Divestments put pressure on top line but guidance unchanged. Manufacturing EBITDA will be positive again this year