MTLS

• Leadership Changes: Annelies Misothen joined as Chief Human Resource Officer. Filip Verlinde was appointed as the newly created Chief Digital and Information Officer to drive digital transformation. Koen Peters is leaving the Medical segment leadership role.
• Strategic Investments & Partnerships: Materialise invested in Replasia, a medtech startup focusing on personalized 3D printed solutions for hip preservation, expanding beyond current replacement-focused offerings. The company also strengthened its position in minimally invasive orthognathic surgery (MIOT) through training and software support.
• Product Launches: Officially released CoEM Pro, a cloud-based solution integrating EM data management and build preparation, one month ahead of schedule. Launched GoEM Bricks automation platform. Started early adopter programs for CoEM NPI and CoEM Enterprise to expand the connected platform ecosystem.
• Portfolio Optimization: Completed the divestment of RapidFed (transferred to management) and iWare (sold), allowing focus on core high-growth areas. Retained a 20% minority stake in the eyewear business. These moves sharpen the portfolio and concentrate resources on additive manufacturing scaling potential.
• Market Expansion: Strong momentum in aerospace with projects like Lufthansa Technik, leading to an official workbench designation. Increased defense sector presence through a consortium led by Materialise for secure digital manufacturing of spare parts for the Belgian Cyber Force.

• Full Year 2026 Revenue Guidance: Reaffirmed at €273 to €283 million, fully absorbing the expected unfavorable revenue impact from the RapidFit and eyewear divestments.
• Full Year 2026 Adjusted EBIT Guidance: Increased upward from the previous range of €10–12 million to a new range of €12–14 million, reflecting strong execution, cost discipline, and operational leverage.
• Half-Year Performance Context: First-half adjusted EBIT was €6.4 million, supporting confidence in achieving the upper end of the revised annual guidance.

Medical: Revenue increased by more than 12% year-on-year in Q2, reaching a significant portion of the total. For the half-year, revenue grew nearly 10% to €70 million. This segment represented approximately 53% of total consolidated revenue in Q2. Adjusted EBITDA for Medical reached €11.6 million in Q2 (31% margin) and €20.8 million for the half-year (30% margin).

Manufacturing: Revenue grew nearly 7% year-on-year in Q2 to €23.6 million, despite unfavorable impacts from divestments. Aerospace saw 40% revenue growth. Manufacturing accounted for 34% of total Q2 revenue. Adjusted EBITDA improved to -€0.3 million in Q2 (from -€0.8 million previously) and reached break-even for the half-year.

Software: Revenue declined by 3% in Q2 to €9.6 million due to cautious customer spending and extended sales cycles. Software contributed 14% to total Q2 revenue. Adjusted EBITDA decreased to €1 million in Q2 but improved to €2.1 million for the half-year (10.9% margin). Recurring revenue now constitutes 86% of software revenue.

• Macroeconomic Headwinds: Cautious customer spending and extended sales cycles in industrial environments are impacting Software segment revenue.
• Reimbursement Changes: Shifts in reimbursement policies, particularly in the US orthopedic market, have led to increased caution among customers regarding affordability, negatively affecting software sales.
• Grant Dependency: Academic centers in the US rely on research grants which have been reduced/reused over the last year, creating structural headwinds for specific software segments not supported by device/service portfolios.
• Divestment Impacts: Asset impairments related to the transfer of businesses (e.g., eyewear) caused non-recurring charges, though these are being managed strategically.

Q: Analyst asked about the sustainability of double-digit medical growth (12% in Q2) and the divergence between falling software revenue (-5%) and rising devices/services (+19%).

A: CEO Brigitte de Vet-Veithen stated that sustainable structural growth for Medical is low-double digits (~10%), as seen in H1. The divergence is driven by two factors: 1) US academic centers face reduced research grants, impacting software sales specifically, while devices/services are unaffected. 2) Different market segments face varying reimbursement trends; orthopedic software faces caution due to reimbursement changes, whereas device/service markets operate differently. She expects ~10% growth to be sustainable.

Q: Analyst asked how the new CoEM product suite (Pro, NPI, Enterprise) will contribute to software growth and recurring revenues.

A: CEO explained that the strategy leverages the existing MagiX installed base. While CoEM Pro serves as an entry point to the cloud platform, the major long-term growth drivers will be CoEM NPI and CoEM Enterprise. These offerings target customers in sectors like aerospace and defense who have already established value in additive manufacturing and now seek capabilities to scale production and embed AM know-how into daily operations.

Q: Analyst questioned the rationale behind increasing the full-year EBIT guidance to €12–14 million given H1 results of €6.4 million.

A: CFO Koen Berges noted that profitability improvement is driven by reducing the cost structure, which is expected to continue. Extrapolating H1 performance lands in the middle of the new range. He cited typical seasonality where Q4 is stronger and Q3 is softer, expecting these to balance out, thus justifying the confident placement within the €12–14 million range.