[Management View]
Materialise reported a mixed quarter with revenue contraction in Non-Medical segments, offset by record growth in the Medical segment. The company is focusing on strategic expansion in emerging clinical and industrial markets, particularly in cardiac and defense sectors.

[Outlook]
Management maintained its full-year revenue guidance of EUR 265 million to EUR 280 million and adjusted EBIT of EUR 6 million to EUR 10 million for FY2025. They highlighted ongoing macroeconomic pressures in Software and Manufacturing segments but expressed confidence in capturing growth opportunities once market conditions improve.

[Financial Performance]
Consolidated revenue was EUR 66.3 million, down 3.5% compared to Q3 2024. Materialise Medical achieved an all-time revenue record of EUR 33.3 million, while Software and Manufacturing segments saw declines of 7% and 17%, respectively. Gross profit margin was 56.8%, slightly below last year's 57.2%. Adjusted EBIT was EUR 2.9 million, down from EUR 4.4 million in Q3 2024.

[Q&A Highlights]
Question 1: Congrats on the nice results. Could you give us an update on Medical exposure, particularly CMF and HIPS, and the potential growth of cardiac and other new markets next year?
Answer: CMF, orthopedics, and research and engineering are mature markets, while cardiac and respiratory are newer and expected to grow faster. Majority of revenue comes from existing markets, but new markets hold future growth potential.

Question 2: Regarding manufacturing, what are your hopes for recovery, and how significant are aerospace and defense as revenue segments?
Answer: Aerospace has shown continuous growth and remains a focus. Defense is newer but has potential, leveraging capabilities built for aerospace. Defense involves both polymer and metal applications.

Question 3: Can you discuss manufacturing profitability and potential recovery in European industrial markets or cost-cutting measures?
Answer: Cost reduction measures have been implemented, impacting financials positively despite revenue weakness. Recovery in European markets and the automotive sector are key drivers for revenue normalization.

[Sentiment Analysis]
Analysts expressed interest in the Medical segment's growth potential and manufacturing recovery. Management maintained a confident tone regarding strategic initiatives and cost management despite macroeconomic challenges.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 | Change |
|-------------------------|---------|---------|----------|
| Consolidated Revenue | EUR 66.3M | EUR 68.7M | -3.5% |
| Medical Revenue | EUR 33.3M | EUR 30.3M | +10% |
| Software Revenue | EUR 10.3M | EUR 11.1M | -7% |
| Manufacturing Revenue | EUR 22.7M | EUR 27.3M | -17% |
| Gross Profit Margin | 56.8% | 57.2% | -0.4% |
| Adjusted EBIT | EUR 2.9M | EUR 4.4M | -34% |

[Risks and Concerns]
Materialise faces macroeconomic headwinds impacting Software and Manufacturing segments, particularly in automotive and European markets. Continued geopolitical uncertainty and currency fluctuations pose additional risks.

[Final Takeaway]
Materialise's Q3 2025 results highlight the strength of its Medical segment amidst broader revenue pressures. Strategic expansion into cardiac and defense markets, coupled with disciplined cost management, positions the company for future growth. Investors should monitor the evolving revenue composition and macroeconomic impacts on Non-Medical segments.