Materialise NV 2026 Q3 Earnings Call

Please proceed. Thank you, Carmen, and thank you for joining us today for Materialise's quarterly conference call.

With us on the call are Brigitte de Vet-Veithen, 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 third quarter of 2026. To access the slides, if you have not already done so, 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 be found on that page. Before we get started, I would like to remind you that management may make forward-looking statements regarding the company's plans, expectations, and growth prospects, among other things.

These forward-looking statements are subject to known and unknown uncertainties and risks that could cause actual results to differ materially from the expectations expressed, including competitive dynamics and industry change. Any forward-looking statements, including those related to the company's future results and activities, represent management's estimates as of today and should not be relied upon as representing their estimates as of any subsequent day. Management disclaims any duty to update or revise any forward-looking statements to reflect future changes or events in expectations. A more detailed description of the risks and uncertainties and other factors that may impact the company's future business or financial results can be found in the company's most recent annual report on Form 20-F filed with the SEC. Finally, management will discuss certain non-IFRS measures on today's conference call. A reconciliation table is contained in the earnings release and at the end of the slide presentation.

With that, I would now like to turn the call over to Brigitte de Vet-Veithen.

Brigitte? Good morning and good afternoon, and thank you all for joining us today.

You can find the agenda for our call on slide 3. First, I will summarize the business highlights for the third quarter of 2026. Then I will pass the floor to Koen, who will take you through the third quarter financials. Finally, I will come back and explain what we expect the remaining months of 2026 to bring. When we have completed our prepared remarks, we will be happy to respond to questions. Moving to slide 4 for the highlights of the third quarter 2026. In the third quarter, we continued to execute on our strategic priorities across all business segments. In medical, we see real momentum in the demand for personalized solutions in various clinical fields, and we have accelerated our investments to scale the adoption of personalization.

In the third quarter in particular, we have made progress in our current focus segments. First, in our medical CMF business, we signed an agreement with the Superhumans Center in Ukraine to support the growing need for craniomaxillofacial reconstructive surgery resulting from the ongoing war. The agreement will enable us to support the treatment of hundreds of patients and war victims with patient-specific solutions and standard plates. Beyond providing surgical solutions, we will support the development of local medical expertise by providing access to our software ecosystem and by providing specialist training at medical universities in Kiev and Lviv, focusing on 3D visualization and patient-specific surgical planning. For Materialise, this partnership demonstrates how we can combine our technology and clinical expertise to address complex reconstructive needs while helping build local capabilities for more personalized care.

In the third quarter, we also launched several new products in our CMF segment, demonstrating our continued focus on making personalized surgical solutions more accessible and easier to integrate into routine clinical practice. As an example, we introduced ready-to-use sterile packaging. These solutions help hospitals reducing operating room preparation steps and enhance compliance with regulatory requirements. We also introduced the next version of Mimics Enlight CMF, which gives clinical teams greater autonomy in 3D surgical planning. Surgeons can now prepare and review their own 3D plans or rely on our clinical engineers to plan their cases when needed. All of this in an integrated workflow. These innovations reflect our strategy to improve efficiency for healthcare providers and support the broader scaling of our CMF solutions.

Second, in our medical cardiac business, we expanded our AI-powered Mimics planning solutions for cardiac interventions with a new workflow for transcatheter aortic valve-in-valve replacement procedures. These procedures involve replacing a previously implanted aortic valve that is no longer functioning properly. This is a more complex intervention than an initial valve replacement, and the procedure requires careful navigation and planning. The 3D modeling and simulation functionalities of Mimics Cardiac are a powerful tool to reduce the risk of such procedures. The new AI-powered workflow automates several critical planning steps, helping clinicians assess potential risks and reduce manual effort while maintaining full control over clinical decisions. The introduction of this functionality reflects our continued focus on making complex interventions more predictable and efficient through advanced 3D planning and AI-powered automation.

Third, in our Medical Soft Tissue business, we expanded Materialise Mimics for thoracic surgery and now offer a dedicated workflow for liver resection planning and intraoperative support. Liver resections, primarily performed to remove tumors, present significant clinical challenges. Surgeons must meticulously balance adequate tumor margins while preserving enough healthy tissue to prevent postoperative liver failure. Our new workflow assists surgeons in critical clinical decision-making, allowing them to identify anatomical risks and confidently plan the procedure. This strategic expansion directly addresses the growing demand for advanced 3D planning and intraoperative support in minimally invasive surgeries, and it is a next step to build out our comprehensive portfolio of 3D planning solutions for soft tissue cancer resections. Turning to our software segment now. In the third quarter, we continued to see encouraging commercial momentum for our CO-AM platform.

First, we closed strategic deals for CO-AM NPI with leading customers in our focus segments and in particular, the aerospace industry. CO-AM NPI is one of our three CO-AM offerings designed to accelerate new product introductions and qualification processes for series additive manufacturing. By streamlining critical steps, we help customers move more efficiently from product development to qualified series production. Second, we further strengthened our CO-AM platform by integrating CO-AM Brix with Identify3D, our technology for securing and tracing digital part files throughout the manufacturing process. While security controls previously applied to an entire 3D printing build, we can now manage protection traceability and users' rights at the level of each individual part, even when multiple parts from different owners are produced in the same build.

For customers in industries with complex supply chains and strict compliance requirements, including defense, this enables secure on-demand production across multiple locations with full control over intellectual property and production rights. Third, we are gearing up for Formnext, the world's leading additive manufacturing trade show, where we will showcase the power of an open ecosystem approach and will demonstrate how the Materialise CO-AM ecosystem helps manufacturers build connected, scalable AM operations. The day before Formnext, we will also play a leading role at the AM Innovation and Standards Summit, advocating for common frameworks to scale additive manufacturing as a strategic capability. In addition, at the Formnext European Defense event, we will demonstrate how we can play a distinctive role providing manufacturing capacity and the digital infrastructure needed to connect and manage production across secure distributed production environments. Moving on to manufacturing. In the third quarter, we continued to see strong momentum in core manufacturing, with revenues for series production growing by more than 30% year-over-year in the quarter, driven by demand from the aerospace, semiconductor, and defense industries.

In the third quarter, we also invested in additional metal additive manufacturing capabilities in order to enable faster production of larger metal components, particularly for demanding defense applications. The investment will also support our research into software-based quality assurance by providing valuable production data to develop and validate more reliable methods for assessing the quality of aerospace parts. This will be a critical contribution to the European SOMUSA project. As you might recall, we are a leading partner in this European research initiative, focusing on improving and standardizing quality assurance for metal 3D-printed aerospace components.