Q2 2026 Ion Beam Applications SA Earnings Call

August 27, 2026

Thomas Pevenage: Hello everyone, and welcome to the presentation of IBA's results for H1 2026. I am Thomas Pevenage from Investor Relations. As usual, you will find this presentation on the investor relations page on our websites. A question and answer session will follow the formal presentation. Today's speakers are Olivier Legrain, our Chief Executive Officer, Henri de Romrée, our Deputy Chief Executive Officer, and Catherine Vandenborre, our Chief Ventures and Corporate Officer. Here is the agenda for today's presentation. We will start with our highlights for the periods, followed by the business review, where we will discuss the strategic progress and the financials of each business unit. Finally, we will cover our financial performance in more detail and give you an update on our guidance and outlook before opening the Q&A session.

Speaker #1: Hello everyone, and welcome to the presentation of IBS results for the first half of 2026. I'm Thomas Pevenage from investor relations. As usual, you'll find this presentation on the investor relations page on our website.

Speaker #1: A question-and-answer session will follow the formal presentation. Today's speakers are Olivier Legrain, our Chief Executive Officer; Henri de Romree, our Deputy Chief Executive Officer; and Catherine Vandenborre, our Chief Ventures and Corporate Officer.

Speaker #1: He will be agenda for today's presentation. We will start with our highlights for the period, followed by the business preview where we will discuss the strategic progress and the financials of each business unit.

Speaker #1: Finally, we will cover our financial performance in more detail and give you an update on our guidance and outlook before opening the Q&A session.

Speaker #2: Thank you, Thomas. Good afternoon, everybody. Let me start by sharing our key messages for today. H1 2026 confirmed that IBS is on track with its improved profitability trajectory, progressing on the execution of our strategy.

Olivier Legrain: Thank you, Thomas. Good afternoon, everybody. Let me start by sharing our key messages for today. H1 2026 confirmed that IBA is on track with its improved profitability trajectory, progressing on the execution of our strategy. We deliver a solid H1 performance with growing revenue exceeding EUR 322, sorry, EUR 320 million, and a substantial improvement in profitability reflected by an adjusted EBIT of EUR 17.6 million and a positive net result of EUR 9.3 million. Commercial momentum was strong, with equipment order intake up 64% versus same period last year, keeping our backlog stable at EUR 1.6 billion despite sustained conversion. Combined with our expanding install base and service activities, this reinforces our long-term growth engine. To support further these goals, our leadership team and board have been strengthened.

Speaker #2: We deliver a solid first-half performance, with growing revenue exceeding 322—sorry, 320 million euros, and a substantial improvement in profitability, reflected by an adjusted EBIT of 17.6 million, and a positive net result of 9.3.

Speaker #2: Commercial momentum was strong, with equipment order intake up 64% versus the same period last year, keeping our backlog stable at €1.6 billion, despite sustained conversions.

Speaker #2: Combined with our expanding install base and service activities, this reinforces our long-term growth engine. To further support this growth, our leadership team and board have been strengthened.

Speaker #2: Finally, we reiterate our 2026 guidance of an adjusted EBIT of at least €32 million, and we remain on track with the 2024 to 2028 outlook.

Olivier Legrain: Finally, we reiterate our 2026 guidance of an adjusted EBIT of at least EUR 32 million, and we remain on track with the 2024 to 2028 outlook. Let us now have a closer look at the commercial dynamics behind these figures. On the equipment side, order intake reached EUR 176 million, thanks to IBA Clinical, which more than doubled, driven by sustained adoption momentum in proton therapy, with 5 rooms sold over the period. In IBA Technologies, 10 systems were sold, reflecting a slower start in industrial solutions, offset by a solid radiopharma demand. This kept our total backlog stable at EUR 1.6 billion, of which around half from services. The two-year rolling equipment book-to-bill stood at 0.9, down from 1 at year-end, given the sustained conversion into revenue as we progress into the different projects. On the financial side, the story is one of continued growth and improved profitability.

Olivier Legrain: Finally, we reiterate our 2026 guidance of an adjusted EBIT of at least EUR 32 million, and we remain on track with the 2024 to 2028 outlook. Let us now have a closer look at the commercial dynamics behind these figures. On the equipment side, order intake reached EUR 176 million, thanks to IBA Clinical, which more than doubled, driven by sustained adoption momentum in proton therapy, with 5 rooms sold over the period. In IBA Technologies, 10 systems were sold, reflecting a slower start in industrial solutions, offset by a solid radiopharma demand. This kept our total backlog stable at EUR 1.6 billion, of which around half from services. The two-year rolling equipment book-to-bill stood at 0.9, down from one at year-end, given the sustained conversion into revenue as we progress into the different projects. On the financial side, the story is one of continued growth and improved profitability.

Speaker #2: Let us now take a closer look at the commercial dynamics behind these figures. On the equipment side, order intake reached €176 million, thanks to IBA Clinical, which more than doubled, driven by sustained adoption momentum in proton therapy, with five rooms sold over the period.

Speaker #2: At IBA Technologies, 10 systems were sold, reflecting a slower start in industrial solutions, offset by solid radiopharma demand. This kept our total backlog stable at €1.6 billion, of which around half is from services.

Speaker #2: A two-year rolling equipment book-to-bill stood at 0.9, down from 1.0 at year-end, given the sustained conversion into revenue as we progress into the different projects.

Speaker #2: On the financial side, the story is one of continued growth and improved profitability. Revenue increased to €324 million, thanks to well-executed backlog conversion across segments.

Olivier Legrain: Revenue increased to EUR 324 million, thanks to well-executed backlog conversion across segments. Adjusted EBIT amounted to EUR 16.6 million, a profitability improvement of EUR 7 million year on year. The adjusted EBIT margin increased to 5.4% thanks to a gross margin improvement. We moved from 29.5% in H1 2025 to 33.7% in H1 2026, driven by a better equipment profitability mix and execution improvement in proton therapy. Importantly, the net result turned positive at EUR 9.3 million. Net debt stood at EUR 81 million at the end of June, up EUR 23 million versus year-end, mainly reflecting working capital movement and timing effects. Our net leverage ratio closed at 1.14 times adjusted EBITDA, and the group retains ample access to its committed credit lines. Before moving into the business review, let me briefly comment on the evolution of our leadership and governance.

Speaker #2: Adjusted EBIT amounted to €17.6 million, a profitability improvement of €7 million year on year. The adjusted EBIT margin increased to 5.4%, thanks to a gross margin improvement.

Speaker #2: We moved from 29.5% in H1 25 to 33.7% in H1 26, driven by a better equipment profitability mix and execution improvement in proton therapy. Importantly, the net result turned positive at €9.3 million.

Speaker #2: Net debt stood at €81 million at the end of June, up €23 million versus year-end, mainly reflecting working capital movements and timing effects.

Speaker #2: Our net leverage ratio closed at 1.14 times adjusted EBITDA, and the growth retains ample access to its committed credit lines. Before moving into the business review, let me briefly comment on the evolution of our leadership and governance.

Speaker #2: As IBA grows in scale and expands its activities, we have strengthened both the leadership team and the Board to support execution of our strategy.

Olivier Legrain: As IBA grows in scale and expands its activities, we have strengthened both the leadership team and the board to support the execution of our strategy. Henri has now assumed strategic and operational responsibility across the group, including Clinical, while Catherine Vandenborre leads our strategic partnerships and innovations. For my part, I am increasingly focused on the strategic steering of the group and was appointed vice-chairman of the board. Lastly, we have also welcomed Joy Hansen and Dr. Stephen Hahn to the board, bringing extremely valuable expertise in sterilization, oncology, regulatory affairs, and radiopharmaceuticals. Let us now move to the business review. I will hand over to Henri de Romrée, who will take you through both IBA Clinical and IBA Technologies.

Speaker #2: Henri has now assumed strategic and operational responsibility across the group, including Clinical, while Catherine leads our strategic partnerships and innovation. For my part, I'm increasingly focused on the strategic steering of the group and was appointed Vice Chairman of the board.

Speaker #2: Lastly, we have also welcomed Joyce Hansen and Dr. Stephen Hahn to the board, bringing extremely valuable expertise in sterilization, oncology, regulatory affairs, and radiopharmaceuticals.

Speaker #2: Let us now move to the business review. I will hand over to Henri. He will take you through both IBA Clinical and IBA Technologies.

Speaker #1: Thank you, Olivier. In the first half of 2026, IBA Clinical combined strong commercial momentum, continued technological innovation, and further operational improvements. On innovation, conformal FLASH obtained investigational device exemption approval from the FDA in June, opening the way for a first-in-human trial at the University of Pennsylvania.

Thomas Pevenage: Thank you, Olivier Legrain. In H1 2026, IBA Clinical combined strong commercial momentum, continued technological innovation, and further operational improvements. On innovation, Conformal FLASH obtained investigational device exemption approval from the FDA in June, opening the way for first-in-human trial at the University of Pennsylvania. We also launched adaPT Insight XR, an imaging upgrade for the Proteus platform available for both installed and future systems. In China, all three IBA-sponsored studies met their primary endpoint and are progressing towards an NDA submission. We also continue to improve operational efficiency across our growing installed base. System availability remained close to 97%, despite increasing workload reflecting the benefits of standardization, AI-enabled troubleshooting, and our investment in remote support.

Henri de Romrée: Thank you, Olivier Legrain. In H1 2026, IBA Clinical combined strong commercial momentum, continued technological innovation, and further operational improvements. On innovation, Conformal FLASH obtained investigational device exemption approval from the FDA in June, opening the way for first-in-human trial at the University of Pennsylvania. We also launched adaPT Insight XR, an imaging upgrade for the Proteus platform available for both installed and future systems. In China, all three IBA-sponsored studies met their primary endpoint and are progressing towards an NDA submission. We also continue to improve operational efficiency across our growing installed base. System availability remained close to 97%, despite increasing workload reflecting the benefits of standardization, AI-enabled troubleshooting, and our investment in remote support.

Speaker #1: We also launched ADAPT Insight XR, an emerging upgrade for the Proteus platform, available for both installed and future systems. And in China, all three IBA-sponsored studies met their primary endpoints and are progressing toward an MPA submission.

Speaker #1: We also continue to improve operational efficiency across our growing install base. Sustainability remains close to 97%, despite increasing workload, reflecting the benefits of standardization, AI-enabled troubleshooting, and our investment in remote support.

Henri de Romrée: In Dosimetry, market conditions remain challenging, particularly in the US, weighing on the revenue and profitability. Nevertheless, order intake remains solid, supported by recent portfolio launches such as myQA StarCheck and continued momentum in proton therapy quality assurance. Our global footprint in proton therapy will now expand towards 93 sites after completion of all installations, an 11% increase year-on-year. At the end of June, IBA had 47 operational sites well distributed across regions with strong visibility on future expansions as 46 additional systems are in production and installation. Eleven installations were running simultaneously at period end or highest level to date. In Spain, two systems are currently under installation and two additional projects are expected to start installation later in 2026. In China, we progressed further on major participants projects with installation activities now completed both in Shenzhen and in Shanghai.

Speaker #1: In dosimetry, market conditions remain challenging, particularly in the US, weighing on revenue and profitability. Nevertheless, order intake remains solid, supported by recent portfolio launches such as Might, US Star Trek, and continued momentum in proton therapy policy assurance.

Speaker #1: Our global footprint in proton therapy will now expand to 93 sites after completion of all installations, an 11% increase year on year. At the end of June, IBA had 47 operational sites, well distributed across regions with strong visibility on future expansions, as 46 additional systems are in production and installation.

Speaker #1: Eleven installations were running simultaneously at period end, which is the highest level to date. In Spain, two systems are currently under installation, and two additional projects are expected to start installation later in 2026.

Speaker #1: In China, we progressed further on major Proteus projects, with installation activities now completed in both Chengdu and Shenzhen. Proton therapy adoption showed strong momentum in the first half, with 16 rooms sold globally compared to 2 in the same period last year.

Henri de Romrée: The proton therapy adoption showed strong momentum in H1, with 16 rooms sold globally compared to two in the same period last year. Together with our partner China General Nuclear Power Group in China, IBA secured a 50% market share in this expanding market. More specifically, the five rooms sold by IBA, including two national first projects, one in Brazil and one in Portugal, as well as two-room projects with Duke University Health System, one of the leading academic healthcare systems in the US. We continue to have the largest install base in the market. This provides significant operational leverage and supports our efforts to further promote proton therapy in collaboration with our clinical partners. Increasing clinical evidence continues to be a key long-term growth driver for proton therapy. The pipeline keeps growing with 35 major phase III trials now covering more than 10,000 patients across a broad range of indications.

Speaker #1: Together with our partner CGN in China, IBA secured a 50% market share in this expanding market—more specifically, the five rooms sold by IBA, including two national-first projects: one in Brazil and one in Portugal, as well as two-room projects with Duke University Health Systems, one of the leading academic healthcare systems.

Speaker #1: In the US, we continue to have the largest installed base in the market. This provides significant operational leverage and supports our efforts to further promote proton therapy in collaboration with our clinical partners.

Speaker #1: Increasing clinical evidence continues to be a key long-term growth driver for proton therapy. The pipeline keeps growing, with 35 major phase 3 trials now covering more than 10,000 patients across a broad range of indications.

Speaker #1: In parallel, we signed a sponsored research agreement with NB Enterprise in Texas on the health economics of proton therapy to strengthen the evidence base.

Henri de Romrée: In parallel, we signed a sponsored research agreement with The University of Texas MD Anderson Cancer Center in Texas on the health economics of proton therapy to strengthen the evidence base that supports reimbursement discussions and patients access. Besides the continued conversion into revenue, IBA Clinical backlog was stable at EUR 37 billion. This was supported by the strong proton therapy order intake with a two-year equipment book-to-bill ratio of 1.2. Service represented more than EUR 800 million of this total, not yet including the service contract related to the 10 Spanish PT project and two of three systems sold to The University of Texas MD Anderson Cancer Center. Let me now focus on Proton Therapy continued profitability turnaround. Adjusted EBIT reached EUR 12.3 million in growth, compared with a loss of EUR 2 million in the H1 last year. This reflects sustained revenue growth, improved execution, and the increased scale of our installed base.

Speaker #1: That supports reinforcement discussions and patients' access. Despite the continued conversion into revenue, IBA Clinical backlog was stable at €1.37 billion. This was supported by the strong proton therapy order intake, with a two-year equipment book-to-build ratio of 1.2.

Speaker #1: Service represented more than €800 million of this total, not yet including the service contracts related to the ten Spanish PT projects and to the three systems sold to NB Enterprise.

Speaker #1: Let me now focus on proton therapy's continued profitability turnaround. Adjusted EBIT reached €12.3 million, compared with a loss of €2 million in the first half last year.

Speaker #1: This reflects sustained revenue growth, improved execution, and increased scale of our installed base, while we continue to invest in key product innovation—such as Flash and Dynamic Arc.

Henri de Romrée: While we continue to invest in key product innovation such as FLASH and DynamicARC. Commercial momentum was equally encouraging with equipment order intake increasing EUR 312 million. Coming now to Dosimetry. The H1 remained challenging with an adjusted EBIT of EUR -0.5 million. This reflects persistent pressure in conventional radiotherapy and medical imaging, particularly in the US, which weighted on the top line with net sales down 11%, combined with a slower backup conversion. Encouragingly, order intake increased to EUR 36 million, supported by recent portfolio launches and continued momentum in proton therapy. Revenue generations from these orders is, however, more backloaded, therefore does not immediately offset the current revenue pressure. In parallel, the cost reduction measures announced earlier this year started to be implemented and are expected to progressively support profitability during the H2. Let me now comment IBA Technologies.

Speaker #1: Commercial momentum was equally encouraging, with equipment order intake increasing to 112 million. Turning now to dosimetry, the first half remained challenging. With an adjusted EBIT of minus 0.5 million euros, this reflects persistent pressure in conventional radiotherapy and medical imaging, particularly in the US.

Speaker #1: This weighed on the top line, with net sales down 11%, combined with a slower backlog conversion. Encouragingly, order intake increased to €36 million, supported by recent portfolio launches and continued momentum in proton therapy QA. Revenue generation from these orders is, however, more backloaded and therefore does not immediately offset the current revenue pressure.

Speaker #1: In parallel, the cost reduction measures announced earlier this year have started to be implemented and are expected to progressively support profitability during the second half.

Speaker #1: Let me now comment on IBA technologies. I will start with the strategic progress over the period, covering Industrial first and then Radiopharma Solutions. Industrial Solutions continues to progress along its roadmap, advancing accelerator-based realization and advanced irradiation solutions.

Henri de Romrée: I will start with the strategic progress over the period, covering industrial first and then RadioPharma Solutions. Industrial solutions continue to progress along its roadmap, advancing accelerator-based sterilization and advanced irradiation solutions. Order intake has a slower start as the market continues to digest the overcapacity created by the post-COVID investment cycle. Nevertheless, the commercial pipeline remains active with encouraging signs of conversion of EtO and gamma volumes into e-beam and X-ray. On execution, two important milestones were reached: the start of operations of our large-scale X-ray installation and the acceptance of the world's largest EB installation. We also launched Rhodotron LITE, which extends our X-ray portfolio into the lower capacity segment. In new applications, PolyMed development is progressing with the first installation at customer site expected to start by the end. And on PFAS, we continued testing on IV concentrated matrices. Turning now to RadioPharma Solutions.

Speaker #1: Order intake had a slower start, as the market continues to digest the overcapacity created by the post-COVID investment cycle. Nevertheless, the commercial pipeline remains active, with encouraging signs of conversion of ETO and gamma volumes into EBM and X-ray.

Speaker #1: On execution, two important milestones were reached: the start of operations of our large-scale X-ray installation, and the acceptance of the world's largest EBM installation.

Speaker #1: We also launched Rhodotron Light, which extends our X-ray portfolio into the lower-capacity segment. In new applications, polymer development is progressing, with the first installation at a customer site expected to start by the weekend.

Speaker #1: And on PFAS, we continued testing on ID concentrated matrices. Turning now to radiopharma solutions, commercial traction remains solid, supported by deeper penetration in core markets and expansion into high-potential geographies.

Henri de Romrée: Commercial traction remains solid, supported by deeper penetration in core markets and expansion into high-potential geographies. This was illustrated by four Cyclone contracts with Fridri- in India to expand their PET radiopharmaceutical production. More generally, thanks to the strong demand for Cyclone, our cyclotron installed base has grown by an amazing 75% since 2016. RPS also continues to extend its position along the radiopharmaceutical value chain. Following the ORA acquisition, interfaces between our Cyclone and ORA synthesizers are now aligned and available to our customers, giving us an integrated offering from isotope production through labeling. We are now accelerating the next phase of integration, including portfolio optimization and scale-up. Finally, RPS launched Cyclone iKure for industrial-scale astatine-211 production, which I will discuss on the next slide. Let me maybe say a few words about Rhodotron Line. This launch extends our established Rhodotron X-ray platform into lower capacity segments.

Speaker #1: This was illustrated by 4 cyclotrons contract with Frigelit, in India, to expand their PET radiopharmaceutical production. More generally, thanks to the strong demand for our cyclone tube, our cyclotron installed base has grown by an amazing 75% since 2016.

Speaker #1: RPS also continued to extend its position along the radiopharmaceutical value chain, following the OHA acquisition interfaces between our cyclotron and OHA synthesizers are now aligned, and available to our customers.

Speaker #1: Giving us an integrated offering from isotope production through labeling. We are now accelerating the next phase of integration, including portfolio optimization and scale-up. Finally, RPS launched Cyclone IQ, for industrial-scale acetine to 11 production, which I will discuss on the next slide.

Speaker #1: Let me maybe say a few words about Rhodotron Light. This launch extends our established Rhodotron X-ray platform into lower-capacity segments. It is designed for customers that do not need the larger system.

Henri de Romrée: It is designed for customers that do not need the larger system. It provides a reliable alternative to gamma irradiation. The product addresses both medical device sterilization and food irradiation application, targeting either existing gamma operators, new entrants, or manufacturers considering in-house sterilization. Early market interest since launch confirms the attractiveness of this segment, notably in Asia and Latin America. Before going further, I would like to spend a few minutes on what we mean by overcapacity in the sterilization market. This chart is based on our internal estimates and is shown for illustration purpose only. As presented at our Capital Markets Day, the underlying demand for accelerator-based sterilization is broadly steady and predictable, growing at 6% to 8% per year, driven by GDP growth and rising medical care needs and standards. The COVID period created an unusual demand spike.

Speaker #1: It provides a reliable alternative to gamma irradiation. The product addresses both medical device sterilization and food irradiation applications, targeting either existing gamma operators, new entrants, or manufacturers considering in-house sterilization.

Speaker #1: Early market interest since launch confirms the attractiveness of the segment, notably in Asia and Latin America. Before going further, I'd like to spend a few minutes on what we mean by overcapacity in the sterilization market.

Speaker #1: This chart is based on our internal estimate and is shown for illustration purposes only. As presented at our capital markets day, the underlying demand for accelerator-based sterilization is broadly steady and predictable.

Speaker #1: Growing at 6% to 8% per year, driven by GDP growth and rising medical care needs and standards. But the COVID period created an unusual demand spike, given that conventional ETO and gamma capacity could not be expanded quickly enough to absorb customer turn-in to then our technology.

Henri de Romrée: Given that conventional EtO and gamma capacity could not be expanded quickly enough to absorb it, customers turned into advance of technology. That led customers to invest ahead of the underlying trends. Because a system order today takes around three years to reach the market, that capacity is still being absorbed. This explains the slower order intake we currently experience. Our view remains that this reflects a temporary imbalance between capacity and demand rather than a structural change in market fundamentals. A more balanced situation is expected around 2028 to 2029 as utilization catches up with installed capacity, driving the normalization of orders. Turning to RadioPharma Solutions, we launched Cyclone iKure at the SNMMI annual meeting in June, a cyclotron dedicated to industrial-scale astatine-211 production.

Speaker #1: That led customers to invest ahead of the underlying trends, and because the system ordered today takes around three years to reach the market, their capacity is still being absorbed.

Speaker #1: This explains the slower order intake we currently experience. Our view remains that this reflects a temporary imbalance between capacity and demand, rather than a structural change in market fundamentals.

Speaker #1: A more balanced situation is expected around 2028 to 2029, as utilization catches up with installed capacity, driving a normalization of orders. Turning to Radiopharma Solutions, we launched Cyclone IQ at the SNMMI annual meeting in June, a cyclotron dedicated to industrial-scale acetine to 11 production, as you can see on this slide.

Henri de Romrée: As you can see on this slide, it complements the cyclotron portfolio that we have built over time, expanding to diagnostic application to therapeutic alpha isotope production. Astatine-211 is one of the two alpha-emitting isotope we selected as strategic plays alongside actinium-225. With iKure, we are reinforcing our commitment to accelerate the bench-to-bedside adoption of astatine-211 labor drops. The IBA Technologies backlog decreased over the period, reflecting sustained conversion into revenues while industry orders intake are not yet picked up this year. As discussed earlier, this reflects the expected temporary overcapacity in sterilization markets, which was not fully compensated by the great commercial momentum in RadioPharma. The two-year equipments book-to-bill ratio therefore closed at 0.7. Finally, looking at the financial results, net sales increased to EUR 127 million, representing close to 40% of the total book sales, thanks to well-executed equipment backlog conversion and growing installed base supporting services.

Speaker #1: It complements the cyclotron portfolio that we have built over time, expanding from diagnostic applications to therapeutics, alpha, and isotope production. Actinium-211 is one of the two alpha-emitting isotopes we selected as a strategic play alongside Actinium-225.

Speaker #1: With IQ, we are reinforcing our commitment to accelerate the bench-to-bench size—the bench-to-bench size, sorry—adoption of acetine to 11 labor jobs. The IBA Technologies backlog decreased over the period, reflecting sustained conversion into revenues, while industrial order intake has not yet picked up this year. As discussed earlier, this reflects the expected temporary overcapacity in sterilization markets, which was not fully compensated by the great commercial momentum in radiopharma.

Speaker #1: The 2-year equipment book-to-build ratio therefore closed at 0.7. Finally, looking at the financial results, net sales increased to €127 million, representing close to 40% of total group sales, thanks to well-executed equipment backlog conversion.

Speaker #1: And growing installed base supporting services. Adjusted EBIT contribution is, compared to last year, driven by a less favorable product mix during the period, continues to hand the investment in radiochemistry and radioligand therapies within RPS, as well as in PFAS and polymer projects, within industrial.

Henri de Romrée: Adjusted EBIT contribution missed compared to last year, driven by a less favorable product mix during the period, continuous R&D investment in radiochemistry and radioligand therapies within RadioPharma Solutions as well as in PFAS and PolyMed projects within Industrial. Nevertheless, EBIT margin landed at 6.5%. I now hand over to Catherine for the corporate section and the group financial review.

Speaker #1: Nevertheless, EBIT margin landed at 6.5%. I know handover to Catherine for the corporate section and the group financial review.

Speaker #2: Thank you, Maurice. And let's start with an update on our new ventures, beginning with Pentera, which continues to make strong progress. The company obtained recognition as a CGMP producer of Actinium-225, following audits by its largest clients.

Catherine Vandenborre: Thank you, Henri. Let's start with an update of our New Ventures, beginning with PanTera, which continues to make strong progress. The company obtains recognition as a cGMP producer of Actinium-225 following an audit by its largest client. This is important because it supports the use of PanTera supply for clinical trials. PanTera's regulatory documentation is already being referenced in clinical trial applications across the US and Europe, demonstrating early adoption of its supply platform and facilitating the integration of its isotopes into multiple development programs. In parallel, PanTera announced in May this year an extension of its collaboration with TerraPower Isotopes supported by the Institut National des Radioéléments. TPI will provide additional raw material, while IRE will host and operate a new production line expected to be fully operational by end of 2027.

Speaker #2: This is important because it supports the use of Pentera supply for clinical trials. Pentera's regulatory documentation is already being referenced in clinical trial applications across the US and Europe.

Speaker #2: Demonstrating early adoption of its supply platform and facilitating the integration of its isotopes into multiple development programs. In parallel, Pentera announced in May this year an expansion of its collaboration with TerraPower Isotopes, supported by the Institut des Radioéléments.

Speaker #2: TPI will provide additional raw material, while AIRI will host and operate a new production line expected to be fully operational by the end of 2027.

Speaker #2: Together with a 30% increase in weekly outputs at the existing facility in Mol, this initiative will triple Pentera's total Actinium-225 capacity, while distributing production across two Belgian sites to strengthen supply resilience.

Catherine Vandenborre: Together with a 30% increase in weekly outputs at the existing facility in Mol, these initiatives will triple PanTera's total Actinium-225 capacity while distributing production across two Belgian sites to strengthen supply resilience. The company also continues to build strong commercial traction with more than 25 active customers across the value chain, with several master supply agreements. From a financial standpoint, PanTera generated in the H1 of this year, EUR 13.7 million of revenue and EUR 6.7 million of EBITDA. The fourth and final tranche of the Series A is now expected in the H2 of 2026, which will further dilute IBA's ownership to 31% and generate an expected revaluation gain of EUR 5.5 million. Zooming in on the demand behind these figures, the Actinium-225 pipeline continues to extend, with more than 40 active clinical trials currently ongoing across several indications, including prostate and neuroendocrine cancers.

Speaker #2: The company also continues to build strong commercial traction, with more than 25 active customers across the value chain and several master supply agreements. From a financial standpoint, Pentera generated, in the first half of this year, €13.7 million of revenue and €6.7 million of EBITDA.

Speaker #2: The fourth and final tranche of the Series A is now expected in the second half of 2026, which will further dilute IBA's ownership to 31% and generate an expected revaluation gain of €5.5 million.

Speaker #2: Zooming in on the demand behind these figures, the Actinium-225 pipeline continues to expand, with more than 40 active clinical trials currently ongoing across several indications, including prostate and neuroendocrine cancers.

Catherine Vandenborre: Three of these have now reached phase III, with first results expected as from 2028. Obviously, the outcome of these trials will be a key driver of future demand for Actinium-225, depending on what they show in terms of efficacy, toxicity profile, and the range of tumors that can be targeted. For PanTera, this is precisely why reliable regulatory grade supply matters as these programs progress. Let's now have a look at the other ventures, starting with mi2-factory GmbH. Following the equipment contract executed with IBA, development of the demo machine is progressing, a key milestone as it will enable the system for semiconductor applications. The project is also supported by favorable market trends in silicon carbide power devices, particularly for electric vehicle and AI data center applications. Second, NHC received positive feedback from the particle therapy community following its presentation at PTCOG in June.

Speaker #2: Three of these have no rich Phase 3, with first results expected from 2028 onwards. Obviously, the outcome of these trials will be a key driver of future demand for Actinium-225, depending on what they show in terms of efficacy, toxicity profile, and the range of tumors that can be targeted.

Speaker #2: For Pentera, this is precisely why supply matters, as these programs progress. Let's now have a look at the other ventures, starting with MI2 Factory.

Speaker #2: Following the equipment contract executed with IBA, development of the demo machine is progressing, a key milestone as it will enable the system for semiconductor applications.

Speaker #2: The project is also supported by favorable market trends in physical carbide power devices, particularly for electric vehicles and AI data center applications. Second, Energy received positive feedback from the particle therapy community following its presentation at PTCOG in June. In parallel, it secured an €8 million loan from its first customer, Cyclades, as part of first-time refinancing efforts, while technical development remains ongoing.

Catherine Vandenborre: In parallel, it secured an EUR 8 million loan from its first customer, CIGLad, as part of first-term refinancing efforts while technical development remains ongoing. Finally, on Astatine-211, discussions with Framatome are progressing regarding the joint development of production infrastructure in New Hope in the US, and Framatome has applied for the permit related to the construction of the first site in Nantes. Let's now close the business review section and move to the financials in more detail, starting with the improvement in profitability. The step-up in gross margin was the main driver of the profitability improvement, increasing from 29.5% to 33.7% year-on-year. Combined with top-line growth, this resulted in additional EUR 18.9 million in gross margins. Operating expenses increased in nominal terms while remaining at 28.7% of sales.

Speaker #2: Finally, on acetine to 11, discussions with Framatome are progressing regarding the joint development of production infrastructure in Europe and the US, and Framatome has applied for the permit related to the construction of the first site in Nantes.

Speaker #2: Let's now close the business review section and move to the financials in more detail, starting with the improvements in profitability. A step-up in gross margin was the main driver of the profitability improvement, increasing from 29.5% to 33.7% year on year.

Speaker #2: Combined with top-line growth, these resulted in an additional €18.9 million in gross margin. Operating expenses increased in nominal terms while remaining at 28.7% of sales.

Speaker #2: This reflects a late investment to support IBA's growth, including key R&D projects—which we haven't capitalized—and the reinforcement of communication and digital functions with GMA, as well as recognition of €2 million in applied debts following a prudent application of our risk policy.

Catherine Vandenborre: This reflects select investment to support IBA's growth, including key R&D projects, which we haven't capitalized, and the reinforcement of communication and digital functions with G&A, as well as recognition of EUR 2 million bad debts following a prudent application of our risk policy. This semester was also marked by a one-off, EUR 1.5 million gain related to the resolution of two specific business claims in IBA Clinical. Below adjusted EBIT, lower financial expenses and PanTera's positive contribution through the equity method further supported the improvements, which I will detail on the next slide. Starting with PanTera's positive contribution to IBA Group earnings, the equity method result amounted to EUR 2.1 million based on IBA's 35.8% ownership. Other operating expenses were mainly impacted by the ERP implementation project that went live in April and by Dosimetry's organization.

Speaker #2: This semester was also marked by a one-off €1.5 million gain, related to the resolution of two specific business claims in IBA Clinicals. Below adjusted EBIT, lower financial expenses and Pentera's positive contribution to the equity made up further supported the improvements, which I will detail on the next slide.

Speaker #2: Starting with Pentera's positive contribution to IBA Group earnings, the equity-made-up result amounted to €2.1 million based on IBA's 35.8% ownership. Other operating expenses were mainly impacted by the ERP implementation project that went live in April, and by the dosimetry reorganization.

Speaker #2: This was partially offset by lower financing expenses, which narrowed to €2.6 million, as the adverse foreign exchange loss reduced to €1 million from €4 million last year, and the impact of hyperinflation in Argentina also eased.

Catherine Vandenborre: This was partially offset by lower financing expenses, which narrowed to EUR 2.6 million, as the adverse foreign exchange loss reduced to EUR 1 million from EUR 4 million last year, and the impact of hyperinflation in Argentina also eased. Tax was slightly lower than last year, mainly due to the absence of withholding taxes on Intra-group dividends recorded in the H1 2025. If we turn to the cash evolution, you will note that we generated EUR 18 million of positive operating cash flows before working capital over H1, in line with the profitability of our activities. However, the reversal of the working capital cycle continued to impact our cash position, and I will come back to the working capital dynamics and prospects in more details over the next slide.

Speaker #2: Tax was slightly lower than last year, mainly due to the absence of withholding taxes on intact group dividends recorded in the first semester of 2025.

Speaker #2: If we turn to the cash evolution, you will note that we generated €18 million of positive operating cash flows before working capital over each one, in line with the profitability of all activities.

Speaker #2: However, the reversal of the working capital cycle continued to impact our cash position, and I will come back to the working capital dynamics and prospects in more detail over the next slides.

Speaker #2: Investing cash flow mainly reflects capital expenditure and the price adjustment paid on the ORA acquisition, based on their actual December 2025 cash and working capital positions.

Catherine Vandenborre: Investing cash flow mainly reflects capital expenditure and the price adjustment paid on New Hope acquisition based on their actual December 2025 cash and working capital positions. New borrowings reflect the draw down in May on the remaining tranche of our term loan, bringing the total to EUR 50 million plus a EUR 50 million acquisition term loan. Repayments are related to movements in revolving credit facility and leasing reimbursements. The movement in treasury shares includes our 400,000 shares buyback program over H1, partially compensated by exercises of stock options. All in all, our group cash position decreased to EUR 44 million. Before detailing the working capital evolution, let me briefly explain the accounting impact linked to the ERP migration. The move to SAP S/4HANA changes the timing of how certain balance sheet items are recognized during project execution.

Speaker #2: New borrowings reflect the drawdown in May on the remaining tranche of our term loan, bringing the total to €50 million, plus a €50 million acquisition term loan.

Speaker #2: Repayments are related to movements in revolving credit facilities and leasing reimbursements. The movement in treasury shares includes our foreign returns and share buyback program over each one, partially compensated by exercises of stock options. All in all, the group cash position decreased to €44 million.

Speaker #2: Before detailing the working capital evolution, let me briefly explain the accounting impact linked to the ERP migration. The move to SAP S/4HANA changes the timing of when certain balance sheet items are recognized during project execution.

Catherine Vandenborre: This updated approach does not impact the underlying economics of our project, as project profitability and cash generation remain unchanged. Two effects on working capital are worth highlighting. First, equipment now remains in stock for longer, and is transferred later in the project life cycle, which mechanically increases reported inventory. Second, the related project accruals are recognized earlier, which increases trades payables during project execution. Overall, those are temporary differences, and both approach reconcile as project progress towards shipments. Turning now to working capital with this new approach in mind. Overall, the working capital requirement has, over the last three years, sharply reversed from a strongly negative position to a slightly positive one at EUR 6 million, resulting in a negative impact on our financial position.

Speaker #2: This updated approach does not impact the underlying economics of our project, as project profitability and cash generation remain unchanged. Two effects on working capital are worth highlighting.

Speaker #2: First, equipment now remains in stock for longer and is transferred later in the project lifecycle, which mechanically increases reported inventories. Second, the related project accruals are recognized earlier, which increases trade payables during project execution.

Speaker #2: Overall, those are temporary differences, and both approaches reconcile as projects progress towards shipments. Turning now to working capital, with this new approach in mind.

Speaker #2: Overall, the working capital requirements over the last three years sharply reversed from a strongly negative position to a slightly positive one at €6 million, resulting in a negative impact on our financial position.

Speaker #2: The main drivers for this trend are our contract assets and liabilities, contracting progress, and advanced billing, which increased by €52 million on a net basis.

Catherine Vandenborre: The main drivers for this trend are our contract assets and liabilities, contract in progress and advance billing, that increased by EUR 52 million on a net basis. They continue to be impacted mostly by two elements. First, a few large contracts with unusually back-ended payment terms, most notably our Proton Therapy project with Spain. Those alone accounted for a EUR 19 million impact over H1, and a cumulative EUR 54 million over time. Second, the currently slower order intake in Industrial, which used to be a meaningful positive contributor to the working capital cycle. On a like for like basis, excluding the impact from the updated ERP-driven approach, inventories have decreased by EUR 18 million, driven by backlog execution. Payables have increased by EUR 23 million, again, on a comparable basis, and note that the ERP migration disrupted processing of payments, but also customer invoicing during the April/June transition period.

Speaker #2: They continue to be impacted mostly by two elements. First, a few large contracts with unusually back-ended payment terms, most notably our Prompt-On-Therapy project in Spain, though the loan accounted for a €19 million impact over each one, and accumulated €54 million over time.

Speaker #2: Second, the currently slow order intake in Industrial, which used to be a meaningful positive contributor to the working capital cycle. Then, on the like-for-like basis.

Speaker #2: Excluding the impact from the updated ERP-driven approach, inventories have decreased by €18 million, driven by backlog execution. Payables have increased by €23 million, again on a comparable basis. And note that the ERP migration disrupted processing of payments, but also customer invoicing during the April to June transition period.

Speaker #2: Now, in terms of prospects, as previously indicated, we expect the working capital situation to normalize as invoicing and cash collection catch up with project execution and order intake.

Catherine Vandenborre: Now, in terms of prospects, as previously indicated, we expect the working capital situation to normalize as invoicing and cash collection catch up with project execution and order intake, pointing to an improvement of our cash and net financial position over 2027. So we confirm this positive strength. We can nonetheless still expect volatility in the meantime, given the sensitivity of our operating model to a relatively limited number of large milestone collections. H2 2027 remains on target for marked improvement and stabilization as six out of the 10 Spanish Proton Therapy projects will have been delivered by then. We remind that each delivery triggers a EUR 10 million payment, followed by a EUR 8 million payment after final acceptance. In view of the first half performance and the momentum across businesses, we reiterate our 2026 guidance of at least EUR 32 million of group-adjusted EBIT, supporting our long-term profitability trajectory.

Speaker #2: Pointing to an improvement of our cash and net financial position over 27 months. So, we confirm this positive trend. You can, nonetheless, still expect volatility in the meantime, given the sensitivity of our operating model to a relatively limited number of large milestone collections.

Speaker #2: H2 2027 remains our target for a marked improvement and stabilization, as 6 out of the 10 Spanish prompt-on-therapy projects will have been delivered by then.

Speaker #2: We remind that each delivery triggers a €10 million payment, followed by an €8 million payment after final acceptance. In view of the first half performance and the momentum across businesses, we reiterate our 2026 guidance of at least €32 million of group-adjusted EBIT, supporting our long-term profitability trajectory.

Catherine Vandenborre: Lastly, as you know, IFRS 18 will become applicable as from 2027, introducing changes to the presentation of certain financial performance measures. We will provide further details in future financial publication, and I will now hand over to Olivier for his concluding remarks.

Speaker #2: Lastly, as you know, IFRS 18 will become applicable as from 27, introducing change years to the presentation of certain financial performance measures. We will provide further details in future financial publication, and I will now over I will now hand over to Olivier for his concluding remarks.

Speaker #1: Thank you, Catherine. Thank you, Henri. During the first half of the year, we continued to execute with discipline, converting backlog, capturing new commercial opportunities, and advancing our strategic priorities to further strengthen the Group's positioning.

Olivier Legrain: Thank you, Catherine. Thank you, Henri. During the first half of the year, we continued to execute with discipline, converting backlog, capturing new commercial opportunities, and advancing our strategic priorities to further strengthen the group's positioning. A few highlights stand out. Proton Therapy confirmed its return to sustainable profitability, building on a strong 2025 and positive market dynamics. Technologies reinforced its competitive position through the launch of new products in strategic market segments and applications, as innovation remains at the core of IBA. We are also particularly pleased with the progress of PanTera, one of the most promising assets within our venture portfolio. As a leader in the rapidly emerging theranostics market, PanTera is expanding access to innovative cancer treatments while creating significant long-term value potential, fully aligned with IBA's mission.

Speaker #1: A few highlights stand out. Proton Therapy confirmed its return to sustainable profitability, building on a strong 2025 and positive market dynamics. Technology has reinforced its competitive position through the launch of new products in strategic market segments and applications, as innovation remains at the core of IBA.

Speaker #1: We're also particularly pleased with the progress of Pantera, one of the most promising assets within our venture portfolio. As a leader in the rapidly emerging theranostic market, Pantera is expanding access to innovative cancer treatments while creating significant long-term value potential, fully aligned with IBA's mission.

Speaker #1: At the same time, we stay focused on navigating a challenging market environment in dosimetry and managing the current phase of our working capital cycle.

Olivier Legrain: At the same time, we stay focused on navigating a challenging market environment in Dosimetry and managing the current phase of our working capital cycle. Overall, these results reinforce our conviction in strength and resilience of IBA's business model. The diversity of our equipment and services portfolio, our leadership in attractive growth markets, and the strategic optionalities provided by new applications and ventures position us well for the head of the year ahead.

Speaker #1: Overall, these results reinforce our conviction in strength and resilience of IBA's business model. The diversity of our equipment and services portfolio, our leadership in attractive growth markets, and the strategic optionalities provided by new applications and venture's position.

Speaker #1: As well for the head, for the year ahead.

Speaker #2: Thank you, Olivier. Before moving to Q&A, let me remind you of the key upcoming dates in our financial calendar. Let me also remind you that this presentation contains forward-looking statements.

Thomas Pevenage: Thank you, Olivier. Before moving to Q&A, let me remind you of the key upcoming dates in our financial calendar. Let me also remind you that this presentation contains forward-looking statements. These statements are based on IBA's current assumptions and beliefs and are subject to risks and uncertainties as described in this disclaimer. We will now move to the Q&A session. If you are joining by phone and would like to ask a question, please press star 9 to raise your hand. You will hear a message when it is your turn to speak, and you can then press star 6 to unmute. If you are joining via the webcast, please raise your virtual hand using the button in the toolbar. Once we invite you to speak, please unmute yourself and briefly introduce you before asking your question.

Speaker #2: These statements are based on IBA's current assumptions and beliefs and are subject to risks and uncertainties, as described in this disclaimer. We will now move to the Q&A session.

Speaker #2: If you are joining by phone and would like to ask a question, please press star 9 to raise your hand. You will hear a message when it is your turn to speak, and you can then press star 6 to unmute.

Speaker #2: If you are joining via the webcast, please raise your virtual hand using the button in the toolbar. Once we invite you to speak, please unmute yourself and briefly introduce yourself before asking your question.

Speaker #2: You can also use the Q&A panel to submit a written question. Thank you very much for listening to our results presentation. We will now open the Q&A session.

Thomas Pevenage: You can also use the Q&A panel to submit a written question. Thank you very much for listening to our results presentation. We now open the Q&A session. I see a few hands already raised, so we will let you, David, start by asking your questions. I think you are-

Speaker #2: And I see a few hands already raised, so we will let you devi—start by asking your questions. I think you are.

David Vagman: Hello. Good afternoon, everyone. Can you hear me?

Speaker #3: Hello. Good afternoon, everyone. Can you hear me?

Speaker #1: Yes.

Thomas Pevenage: Yes, we do.

Speaker #2: We do.

Speaker #3: Fantastic. Can you two systems, or was a bit confused? So thanks for taking my question. Maybe on the coming back on the margin evolution for Proton Therapy and technologies, yeah, if you can explain a little bit more the sort of evolution for H1, and what let's say the reiteration of the 2026 guidance implies basically, and let's say as a follow-up direct follow-up to that.

David Vagman: Fantastic. The new queue system, I was a bit confused. Thanks for taking my question. Maybe coming back on the margin evolution for proton therapy and Technologies. If you can explain a little bit more the evolution for H1 and what, let's say, the reiteration of the 2026 guidance implies, basically, and let's say as a direct follow-up to that. How structural are the improvement that we've seen in PT, so that we've seen, how structural are they? The current profit margin, should it be seen as a floor going forward, moving to 2028? A bit same question, but let's say for the lower profitability in Technologies. Given your comments on the overcapacity issues in industrial, you expect it to, let's say, a rebasing a bit of the profitability there. Then as a fourth question on the net debt evolution.

Speaker #3: So our structural—is the improvement that we've seen in DT, so that we've seen in our structural R&D, so the current profit margin—should it be seen as a floor going forward, moving to 2028?

Speaker #3: And a bit the same question, but let's say for the lower profitability in Technologies. So, given your comments on the overcapacity issues in Industrial, do you expect to see, let's say, a rebasing a bit of the profitability there?

Speaker #3: And then, as a third question, on the net debt evolution—so I think, Catherine, you provided us with some guidance. If you can clarify a bit what you expect for H2 and then for 2027. And if you can please repeat by when you expect to have these six Spanish contracts, let's say, delivered and installed—was it in 2027?

David Vagman: I think, Catherine, you provided us with some guidance. If you can clarify a bit what you expect for H2 and then for 2027, and if you can please repeat by when you expect to have the six Spanish contract, let's say, delivered and installed. Was it in 2027? Should we kind of expect this inflow of six times, let's say roughly EUR 18 million coming in? If you can give us some color on the net debt evolution. Thank you.

Speaker #3: And so should we kind of expect this inflow of sick times—let's say roughly €18 million—coming in? So yeah, if you can give us some color on the net debt evolution.

Speaker #3: Thank you.

Catherine Vandenborre: Okay. I will start with your last question on the Spanish contract. It's a very straightforward one, question. We expect this year, in 2026, still to ship two machine, then two other machine in 2027, and then the four remaining machine in 2028. Like you mentioned, each time that there is a shipment, there is a down payment of EUR 10 million. Then on the question regarding the margin and the guidance that we gave for 2026. First, in terms of improvement of the margin, it's, let's say, mainly driven by a more favorable equipment mix in proton therapy. It's linked to the fact that the legacy contracts are slightly decreasing the total portfolio that we have. We, like you have seen with the orders intake, we have a new contract in the portfolio in total.

Speaker #4: Okay, I will start with your last question on the Spanish contract. It's a very straightforward question. So, we expect this year and in 2026 to still ship two machines.

Speaker #4: Then two other machines in 2027, and the four remaining machines in 2028. And like you mentioned, each time that there is a shipment, there is a down payment of €10 million.

Speaker #4: Then, on the question regarding the margin and the guidance that we gave for 2026: First, the improvement is mainly driven by a more favorable equipment mix in Proton Therapy.

Speaker #4: It's linked to the fact that the legacy contracts are slightly decreasing in the total portfolio that we have. And, as you have seen with the order intake, we have new contracts in the portfolio in total.

Speaker #4: We have also improved project execution, and we see our services—and especially the services in Proton Therapy, but not only—contributing also to the improvement in gross margin that we have mentioned.

Catherine Vandenborre: We have also improved the project execution, and we see our deficit, and especially the deficit in proton therapy, but not only, contributing also to the improvement in gross margin that we have mentioned. In total, for the guidance that we gave for 2026, we did not revisit the guidance, so we confirm at least EUR 32 million. That is the first answer to your question. It is at least, it is a kind of floor to the guidance. At this stage, we believe that it is not appropriate to be more precise than that. If there are a number of elements to be rather positive, namely the improvement, the turnaround that we have seen in proton therapy, especially at the level of the margin, the very good commercial momentum we have in RadioPharma Solutions.

Speaker #4: In total, for the guidance that we gave for 2026, we didn't revisit the guidance, so we confirm at least €32 billion. So that's the first answer to your question.

Speaker #4: It's at least—it's a kind of floor to the guidance. At this stage, we believe it's not appropriate to be more precise than that.

Speaker #4: And if there are a number of elements to be rather positive—namely, the improvement, the turnaround that we have seen in Proton Therapy, especially at the level of the margin, and the very good commercial momentum we have in RPS, radio pharma—at the same time, we see that dosimetry is a little bit lagging behind, and that the order intake in Industrial Solutions, especially, has been a little bit lower than initially expected.

Catherine Vandenborre: At the same time, we see that dosimetry is a little bit lagging behind, and that the orders intake in industrial solution especially, has been a little bit lower than initially expected. For the H2 of the year, we expect, however, to have, let us say, more balanced H2 versus H1 than we had in 2025. What does it mean? It means that especially on industrial solutions, so part of technology, we expect the orders intake to be better than what we had in the H1 of the year. Of course, you know that all the projects, and especially the projects that we have in proton therapy, they are negotiated over a very long period of time, and we might have some volatility on the precise months during which we finally close the contract with the customers. Does it answer your question on the margin and guidance?

Speaker #4: For the second half of the year, we expect, however, to have, let's say, a more balanced H2 versus H1 than we had in 2025. And what does it mean?

Speaker #4: It means that, especially on industrial solutions—so, part of Technologies—we expect the order intake to be better than what we had in the first half of the year.

Speaker #4: Of course, you know that all the projects, and especially the projects we have in Proton Therapy, are negotiated over a very long period of time, and we might have some volatility.

Speaker #4: On the precise months during which we finally close the contract with the customers—does that answer your question on the margin and guidance? And then I am left with a question over net debt.

Catherine Vandenborre: I am left with a question on the net debt, but I will pause, Jean.

Speaker #4: But I will pause here.

Speaker #3: Yeah. Maybe very quickly on the margin evolution. So, because you discussed overcapacity, should we think now that, because of this overcapacity, there is significant pricing pressure in industrial, which will, you know, last for a couple of years before it improves?

David Vagman: Well, maybe very quickly on the margin evolution. Because you discussed overcapacity, should we think now that because of this overcapacity, there is significant pricing pressure in industrial, which will last for a couple of years before it improves?

Catherine Vandenborre: No, but maybe I will let Henri go.

Speaker #4: No, but maybe I will let Henri.

Henri de Romrée: No. David, first, you know that for us it is becoming a bit of a religion, 40%, 30%, 10%. You know that in our plan, DT was supposed to catch up and IBA Technologies was already at that level. The first semester on the low side in terms of overall margin contribution, because we had an unusually unfavorable product mix. You should not take the first semester of 2026 as the benchmark for the margin going forward.

Speaker #2: No, so David, first, you know that for us, it's becoming a bit of a religion: 40%, 30%, 10%. You know that in our plan, PT was supposed to catch up.

Speaker #2: And technologies were already at that level. The first semester is rather on the low side in terms of overall margin contribution because we had an unusually unfavorable product mix.

Speaker #2: So you should not take the first semester of '26 as the benchmark for the margins going forward. We stick to what we see as the overall margin plan for Technology, and there is no reason to deviate.

David Vagman: Okay.

Henri de Romrée: We stick to what we see, is the overall margin plan for IBA Technologies, and there is no reason to deviate. The capacity question for me, does not put pressure necessarily on pricing because you know that in our technology, we are clear leaders. But I think simply that the single unit events in terms of orders, there are probably fewer opportunities this year to convert than what it was two or three years ago or what it will be in two or three years. But that does not change our pricing dynamic nor our margin dynamic.

Speaker #2: The capacity question for me does not put pressure necessarily on pricing, because you know that in our technology, we are clear leaders. But that means simply that, you know, the single unit events in terms of orders, there are probably fewer opportunities this year to convert than what there were two or three years ago, or what there will be in two or three years.

Speaker #2: But that does not change our pricing dynamic, nor our margin dynamic.

Speaker #3: Okay. Thanks, Henri. Thanks, Catherine.

David Vagman: Okay. Thanks, Henri. Thanks, Catherine.

Catherine Vandenborre: On the net debt, what we expect is a relative stability over 2026 and then start of improvements, but light improvements in the beginning of 2027 with the marked improvements in the H2 2027. That is how we see the evolution of the net debt over the next months.

Speaker #4: And then on the net debt, so what we expect is let's say a relative stability over 2026. And then start of improvements, but let's say light improvements in the beginning of 2027 with the marked improvements in the second half of 2027.

Speaker #4: So that's how we see the evolution of the net debt over the next few months.

Speaker #3: Okay, thanks very much. I'll move back to the queue.

David Vagman: Okay. Thanks very much. I will move back to the queue.

Speaker #2: Thank you. Thank you, David. So, we move then to Frank Clason from the Growth Account for the next set of questions.

Thomas Pevenage: Thank you, David. We move then to Frank Klassen from Degroof Petercam for the next set of questions.

Frank Klassen: Good afternoon, Frank Klassen from Degroof Petercam indeed. Can you hear me?

Frank Claassen: Good afternoon, Frank Klassen from Degroof Petercam indeed. Can you hear me?

Speaker #5: Good afternoon, Frank Clason here of Petercam. Indeed, can you hear me?

Speaker #2: Yes. Yes.

Thomas Pevenage: Yes.

Frank Klassen: All right. First of my question is on Dosimetry. You have implemented some cost savings there. Could you help us remind, could you quantify these cost savings and what do you expect for the H2? Do you expect to return to profitability there? That is my first question. The second question on the costs line, looking at your operational expenditures, they moved up quite a bit, 17% from EUR 79 million to EUR 93 million, driven, for instance, by the R&D. Is this EUR 93 million, is this a sort of new run rate also for the H2, or were there some temporary effects which inflated the cost line? Thank you.

Frank Claassen: All right. First of my question is on Dosimetry. You have implemented some cost savings there. Could you help us remind, could you quantify these cost savings and what do you expect for the H2? Do you expect to return to profitability there? That is my first question. The second question on the costs line, looking at your operational expenditures, they moved up quite a bit, 17% from EUR 79 million to EUR 93 million, driven, for instance, by the R&D. Is this EUR 93 million, is this a sort of new run rate also for the H2, or were there some temporary effects which inflated the cost line? Thank you.

Speaker #5: Nice. All right. First, my question is on the Symmetry. You've implemented some cost savings there. Could you help us—remind us—how, yeah, how could you quantify these cost savings?

Speaker #5: And what do you expect for the second half? Do you expect to return to profitability there? That's my first question. And then, also, the second question is on the costs line.

Speaker #5: So looking at your operational expenditures, they moved up quite a bit, 17%, from $79 million to $93 million, driven, for instance, by the R&D.

Speaker #5: Is this $93 million, is this sort of new run rate also for the second half? Or were there some temporary effects which inflated the cost line?

Speaker #5: Thank you.

Speaker #2: I think the first one? So, the effect of dosimetry—you understood that it's market-linked. I can further comment. To go directly to your question, we said 1.6.

Henri de Romrée: I take the first one. The effect of Dosimetry, you understood that it is market-linked. I can further comment. To go directly to your question, we said 1.6. It is mostly people-related restructuring savings. They will start to kick in in the second semester in terms of full impact, and we expect a return to profitability of Dosimetry in the second semester.

Speaker #2: It's mostly people-related restructuring savings. There is a start to kick in in the second semester in terms of full impact, and we expect a return to profitability of dosimetry in the second semester.

Speaker #5: That's clear. And the cost line?

Frank Klassen: That is clear. The cost line?

Frank Claassen: That is clear. The cost line?

Speaker #4: Yeah, so on the cost lines, like you pointed out, we have an increase in specific elements. And I would only name two because they are the biggest contributors.

Catherine Vandenborre: Yeah. On the cost lines, like you pointed out, we have an increase in specific elements, and I would only name two because they are the biggest contributors. R&D, like you mentioned yourself, and G&A. That increased a little bit due to IT cost licenses, but also some specific elements that I mentioned during the call. The way we look at it is, let us say more in terms of percentage towards the review. You mentioned the target that we have, and during the H1, the percentage was 28.7%, which was more or less the same as during the year 2025, so last year. Our target over the long run is like Henri mentioned, 40% gross margin, 30% OpEx, and 10% of EBIT.

Speaker #4: It's R&D, like you mentioned yourself, but also GMA—that increased a little bit due to IT costs, licenses, but also some specific elements that I mentioned during the call.

Speaker #4: The way we look at it is, let's say, more in terms of percentage towards the revenue. So you mentioned the target that we have.

Speaker #4: And during the first half of the year, the percentage was 28.7%, which was more or less the same as during the year 2025, so last year.

Speaker #4: So our targets over the long run are, like Henri mentioned, 40% gross margin, 30% OPEX, and then 10% of REBIT. Of course, during some years, you might have fluctuations.

Catherine Vandenborre: Of course, during some years, you might have a fluctuation, and more specifically for 2026, because we are not yet at the 40% gross margin, we expect not to be at the 30% OpEx and to remain closer of the percentage we had in H1 of this year.

Speaker #4: And more specifically for 2026, because we are not yet at the 40% gross margin, we expect indeed not to be at the 30% OPEX, and to remain closer to the percentage we had in H1 of this year.

Speaker #5: Okay, yeah, that's helpful. Thank you.

Frank Klassen: Okay. No, that's helpful. Thank you.

Frank Claassen: Okay. No, that's helpful. Thank you.

Speaker #2: Okay. Thank you very much, Frank, for the questions. I know we now move to Mikhail Declercq from KBC Securities. Hi, Mikhail. I think you are muted—Mikhail, I think you are muted.

Thomas Pevenage: Okay. Thank you very much, Frank, for the questions. Now we move to Michiel Declercq from KBC Securities. Hi, Michiel.

Henri de Romrée: I see you are You're muted, I think, Phil. Can you mute?

Speaker #2: Can you hear us?

Michiel Declercq: Can you hear me?

Speaker #4: Hear me?

Speaker #2: Yes, we do. Hello, Mikhail. Hello. I'm here.

Henri de Romrée: Yeah, we do.

Michiel Declercq: Hello.

Henri de Romrée: I can hear you.

Speaker #5: Okay, thank you. Mikhail Declercq from KBC Securities. I have a couple of questions still. The first one is maybe a bit of a technical one on the order accelerator or the IBA Technologies equipment revenue.

Michiel Declercq: Okay. Great. Thank you. Michiel Declercq from KBC Securities. I have a couple of questions. The first one is maybe a bit of a technical one on the other accelerator or the IBA Technologies equipment revenue. If we look a bit, the order intake for equipment was down a bit, so it was EUR 28 million. The backlog was also down about EUR 28 million, if I'm not mistaken. There is a bit of a big gap between the new order intake, the decrease in the backlog, and the revenues that were booked. I'm just trying to understand where the big delta is here. Was there maybe some upgrades or something that I'm missing here? That would be my first question. Secondly, I missed part of the earlier question of David on the overcapacity in industrial.

Speaker #5: So, if we look a bit at the order intake for equipment, it was down a bit. So, it was €28 million. The backlog was also down, about €28 million, if I'm not mistaken.

Speaker #5: So, there is a bit of a gap between the new order intake, the decrease in the backlog, and the revenues that were booked.

Speaker #5: So I'm just trying to understand where the big delta is here. Were there maybe some upgrades or something that I'm missing? That would be my first question.

Speaker #5: And then secondly, I missed part of the earlier question from David on the overcapacity in industrial. Can you tell us a bit about what you are seeing in the market today?

Michiel Declercq: Can you tell us a bit what you are seeing in the market today? Are customers or is interest coming back already, given that you mentioned that it takes about three years before this capacity is filled, or what have you been seeing here, and how are your, let's say, for new applications, are you seeing interest in that for PolyMed food irradiation? Any comment on that would be useful. Then lastly, also, if I look at the proton therapy systems that have been sold so far this year, I have seen two from China General Nuclear Power Group. Can you elaborate a bit on this, on which systems these are, and have you received or will you receive royalties on these that we should take into account in our forecast? Those will be my questions, please.

Speaker #5: Are customers, or is interest, coming back already, given that you mentioned that it takes about three years before this capacity is filled? Or what have you been seeing here?

Speaker #5: And how are your, let's say, your new applications—are you seeing interest in that for polymerous food irradiation? So any comment on that would be useful.

Speaker #5: And then lastly, also, if I look at the proton therapy systems that are being sold so far this year, I've seen two from CGN.

Speaker #5: Can you elaborate a bit on this—on which systems these are? And have you received, or will you receive, royalties on these that we should take into account in our forecast?

Speaker #5: That would be my questions, please.

Henri de Romrée: Michiel, on the relationship between order intake and revenues, you know that it has to do with the pace of backlog conversion. It is indeed ironic that we have been quite performing in terms of backlog conversion, generating top-line growth, whereas the order intake spot in the first semester was a bit on the low side. You know that it can quickly be turned around with a few projects being booked, and that in general, the order intake we would book in a given semester would be converted further down the road. So nothing specific to read in the numbers except that indeed the book-to-bill ratio decreases because we have been converting a lot, whereas we have not replenished in the first semester to the same extent that what we have been able to convert. If I look at your question, which is what do I see in the market?

Speaker #2: Mikhail, on the relationship between order intake and revenues, you know that it has to do with the pace of backlog conversion. So, it’s indeed ironic that we have been quite performing in terms of backlog conversion, generating top-line growth, whereas the order intake spot in the first semester was a bit on the low side.

Speaker #2: You know that it can quickly be turned around with a few projects being booked, and that, in general, the order intake we would book in a given semester would be converted further down the road.

Speaker #2: So, nothing specific to read in the numbers, except that indeed the book-to-bill ratio decreases because we have been converting a lot, whereas we have not replenished in the first semester to the same extent as what we have been able to convert.

Speaker #2: If I look at your question, which is, what do I see in the market? So you understand that the volume that is being irradiated, or treated, or sterilized, I should say, moves in a quite linear way.

Henri de Romrée: You understand that the volume that is being irrigated or treated or sterilized, I should say, moves in a quite linear way for the purpose of the page that we have added in the document. Somehow, we are not concerned about the evolution of the underlying market for sterilization. To the contrary, we see medical equipment in very much presence, but we see new opportunities, as we have mentioned, in other applications. I can list a few. So we are completely at ease with the underlying market evolution. What we notice, though, is that with three available technologies in the market, ethylene oxide, gamma, and the accelerated or EB technologies, and with the COVID time, a lot of players have installed a lot of capacity.

Speaker #2: It was the purpose of the page that we have added in the document. So, somehow, we are not concerned about the evolution of the underlying market for sterilization.

Speaker #2: On the contrary, we see medical equipment being very much present, but we also see new opportunities, as you've mentioned, in other applications. And I can list a few.

Speaker #2: So, we are completely at ease with the underlying market evolution. What we notice, though, is that with three available technologies in the market—ethylene oxide, gamma, and accelerator-based technologies—and with the COVID time, a lot of players have installed a lot of capacity.

Speaker #2: So, similarly to what you could see in petrol refineries or in paper mills, there is a lot of capacity that has been installed. Therefore, we see that the conversations with clients regarding launching new projects have been on a slower track.

Henri de Romrée: Similarly to what you could see in petrol refineries or in paper mill, there is a lot of capacity that has been installed. Therefore, we see that the conversations with clients with regards to launching new projects have been slower tracked. That being said, we have a very active pipeline. As I mentioned, we have a very active pipeline with the Rhodotron LITE, which is our new product, which taps into new segments of plants that are looking for smaller volumes installations and facilities. As you see as well on the graph, in IBA time, which is always long cycles, we are completely convinced and reassured on the fact that the volume to be treated will catch up with the capacity, and it is going to fuel further demand for our equipment. The key underlying question was for me, how relevant is our value proposition compared to other technologies?

Speaker #2: That being said, we have a very active pipeline. As I mentioned, we have a very active pipeline with the Rodolite, which is our new product. It taps into a new segment of plants that are looking for smaller volume installations and facilities.

Speaker #2: And as you see as well on the graph, in IBA time, which is always long cycles, we are completely convinced and reassured of the fact that the volume to be treated will catch up with the capacity, and it's going to fuel—it's going to fuel further demand for our equipment.

Speaker #2: The key underlying question was, for me, you know, how relevant is our value proposition compared to other technologies? We continue to see clients who are now wanting to convert from ETO to 3D, and that's a first, because they see continued pressure from a regulatory point of view on ETO.

Henri de Romrée: We continue to see clients who are now wanting to convert from EtO to X-ray beam, that is a first because they see continued pressure from a regulatory point of view on EtO. We continue to have conversation with clients about Cobalt-60 supply that is being constrained in many regions of the world, again, creating an appeal for the IBA solutions.

Speaker #2: And we continue to have conversations with clients about gamma cobalt-60 supply that is being constrained in many regions of the world, again creating an appeal for the IBA solution.

Speaker #4: And then, on your question on CGN, the consequences of the agreement with CGN and the sales that they have made are already included in the guidance that we have given to the market.

Catherine Vandenborre: On your question on CGN, the consequences of the agreement with CGN and the sales that they have done is already included in the guidance that we have given to the market.

Speaker #5: Okay, I assume that the guidance excluded any potential sales in China—I mean, during the Capital Markets Day, or?

Michiel Declercq: Okay. I assume that the guidance excluded any potential sales in China during the capital markets day or?

Speaker #4: Sorry. It was in. It was in the guidance.

Catherine Vandenborre: Sorry, it was in-

Michiel Declercq: Okay

Catherine Vandenborre: it was in the guidance.

Speaker #5: Okay. Clear. Thank you.

Michiel Declercq: Okay, clear. Thank you.

Speaker #2: Thank you.

Catherine Vandenborre: Thank you.

Thomas Pevenage: Okay. For the time being, there are no other hands raised for asking questions. Maybe let 30 seconds to make sure. David, it is you back.

Speaker #5: Okay. For the time being, there are no other hands raised for asking questions. Give me about 30 seconds to make sure. David, are you back?

David Vagman: Yes. Can you hear me?

Speaker #3: Yes. Can you hear me? Yeah. Okay, perfect. Yes. An additional question on Panthera, and thanks very much for all the disclosure. So, is it today too early to ask you for, let's say, a rough three-to-five-year guidance on kind of this high-level business plan for Panthera?

Thomas Pevenage: Yeah.

David Vagman: Okay, perfect. Yes. An additional question on PanTera, and thanks very much for all the disclosure. Is it today too early to ask you for, let's say, a rough three to five years guidance on a kind of high-level business plan for PanTera, given you have started to give quite some color on the sales, on the EBITDA, on the net profit?

Speaker #3: Given that you've started to provide quite a bit of detail on the sales, the EBITDA, and the net profit,

Catherine Vandenborre: I think the answer is already in your question, David. You have to be

Speaker #4: I think the answer is already in your question, David. Yes, it is.

Speaker #3: Oh, sure.

David Vagman: Oh, sure.

Speaker #4: So, we give some information today because we see Panthera being quite active in the early supply. On the commercial traction, that might possibly come once the results of the clinical trials are known.

Catherine Vandenborre: we give some information today because we see PanTera being quite active in the early supply.

David Vagman: Yeah.

Catherine Vandenborre: On the commercial traction that might possibly come once the results of the clinical trials are known, it's a different world, and that's something on which we can't comment today.

Speaker #4: It's a different world, and that's something on which we can't comment today.

Speaker #3: Okay. Okay. No, thanks. And maybe a quick one on the €2 million of higher bad debts. I think you disclosed that in the Other Operating Costs, if I'm correct.

David Vagman: Okay. No, thanks. And maybe a quick one on the EUR 2 million of higher bad debts. I think you disclose on the other operating cost, if I'm correct.

David Vagman: Can you comment a little bit, you say higher bad debts,

Speaker #3: Can you comment a little bit? So you say higher bad debts. Could you be more specific?

Catherine Vandenborre: Yeah.

David Vagman: Is there anything specific?

Catherine Vandenborre: No, I think that the higher bad debts might be a little bit misleading.

Speaker #4: No, I think that the higher bad debts might be a little bit misleading. So the goal was just to give the amount of bad debts that we booked during the period.

David Vagman: Okay.

Catherine Vandenborre: The goal was just to give the amount of bad debts that we booked during the year.

David Vagman: Yeah, okay. That is what I thought. Yeah.

Speaker #3: Yeah. Okay, that's what I thought. Yeah.

Catherine Vandenborre: That is EUR 2 million.

Speaker #4: And that's two million. I think last year we had four million at the same period. So basically, there is nothing more than last year.

David Vagman: Okay.

Catherine Vandenborre: I think last year we had EUR 4 million at the same period.

David Vagman: Yeah.

Catherine Vandenborre: Basically, there is nothing more than last year, and that is the application of our bad debts policy. We saw that there is anything special behind.

Speaker #4: And that's the application of our bad debt policy. We thought that there wasn’t anything special behind it.

Speaker #3: Okay. So the right way to understand it is €2 million of bad debts.

David Vagman: Okay. The right way to understand it is, it is EUR 2 million of bad debt.

Speaker #4: Exactly.

Catherine Vandenborre: Exactly

David Vagman: And last year you had four.

Speaker #3: And last year, you had four.

Catherine Vandenborre: Exactly.

Speaker #4: Exactly.

Thomas Pevenage: In booking year, yeah.

Speaker #2: And CGN, okay.

David Vagman: Okay. That is clear. Thanks.

Speaker #3: Okay, okay, okay. No, that's clear. Thanks.

Thomas Pevenage: Okay. Thank you, David. At this point, we do not see any remaining questions. We would like to thank all of you for attending this call, and hope it was helpful to shed some more light on our business and financials. We wish you, all of you, a good afternoon or a good day, depending on where you are based and speak to you on the next opportunities.

Speaker #5: Okay, thank you, David. At this point, we do not see any remaining questions, so we would like to thank all of you for attending this call and hope it was helpful in shedding some more light on our business and financials.

Speaker #5: So we wish you all of you a good afternoon or a good day. Depending on where you are based and it's to you and the next opportunity.

Browse all earnings call transcripts

Q2 2026 Ion Beam Applications SA Earnings Call

Request TrialDemo

Ion Beam Applications

Earnings