IBAB.BR(IBAB.BR)
IBAB.BR
Thomas Pevenage: Hello, everyone, and welcome to the presentation of IBA's 2025 Full Year Results. I'm Thomas Pevenage from Investor Relations. As usual, you will find this presentation on the Investor Relations page of our website. A Q&A session will follow the formal presentation. Moving to next page. Let me draw your attention to the company's disclaimer for forward-looking statements, which, as you know, are based on our current assumptions and beliefs and subject to risks and uncertainties. Today's speakers are Olivier Legrain, our Chief Executive Officer and IBA Clinical Lead; Henri de Romree, our Deputy Chief Executive Officer and IBA Technologies Lead; and Catherine Vandenborre, our Chief Financial Officer and IBA Corporate Lead. Here is the agenda for today's presentation. We will start with our highlights for the period, followed by a 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.
Olivier Legrain: Thank you, Thomas. I'm Olivier. Good afternoon, everybody. Let me start by sharing our key messages for today. Full year '25 was a strong year for IBA. We delivered on our commitments. Our guidance has been met and we progressed as planned on the execution of our strategy while the group continues its transformation. This dynamic is reflected in our full year '25 performance, record revenue exceeding EUR 620 million; adjusted EBIT, formerly known as REBIT of EUR 27.4 million and a return to profitability in Proton Therapy. Our growth engine has also strengthened with a record backlog of EUR 1.6 billion, supported in particular by the scaling of service in Nuclear Medicine and a strong Proton Therapy order intake. Beyond this annual performance, 2025 marks the inflection point from a historically cyclical project-driven model towards a more consistently profitable platform. The '24-'28 financial outlook is confirmed, and we are providing a full year '26 guidance being an adjusted EBIT of at least EUR 32 million. Let me now have a closer look at our commercial momentum. In full year '25, IBA recorded a very strong growth in order intake, bringing our backlog at an all-time high of EUR 1.6 billion and providing increased visibility for the future. Service backlog grew particularly strong, up 16% year-on-year, reflecting the continued expansion of our Proton Therapy installed base, but also a strong contribution of Technologies. On the equipment side, we posted an historic equipment order intake of EUR 452 million, representing an increase of around 40%. Looking at our business unit, in Proton Therapy, we sold 12 rooms during the year, our second best year ever, reflecting strong commercial traction, particularly in the U.S. and in Asia. In IBA Technologies, 37 systems were sold compared with 33 driven by strong demand in RadioPharma, while Industrial Solutions normalized following record high years. As a result, the 2-year rolling book-to-bill ratio reached 1.0 as Equipment order intake grew broadly in line with revenue recognized over the period at group level. I will now move to our key financial metrics. In full year '25, group revenue reached a record level of EUR 620 million, an increase of EUR 122 million compared with full year '24, thanks to well-executed backlog conversion and the growth in service activities. Adjusted EBIT amounted to EUR 27.4 million, exceeding our guidance, a profitability improvement of EUR 10 million year-on-year. The adjusted EBIT margin increased to 4.4% compared with 3.5% in '24 despite a decrease in gross margin driven by a temporarily less favorable equipment profitability mix. Net debt stood at EUR 58 million as of December 31 as working capital continued to be impacted by the delivery of large Proton Therapy projects. On a like-for-like basis, excluding the ORA acquisition, net debt would have been EUR 41 million. Our net leverage ratio at 0.83x adjusted EBITDA remains healthy. Building on strong execution delivered in '25 and the momentum across our businesses, we are setting full year '26 guidance at a group adjusted EBIT of at least EUR 32 million. Let's now move on to the review of our business performance. I will start with the progress of IBA Clinical. In '25, our clinical entity benefited from a strong commercial momentum, continued technological innovation and a very significant improvement in Proton Therapy profitability. The year marks a clear turnaround for the business supported by disciplined execution and a more favorable project mix. The year was marked by several important milestones in Proton Therapy. MD Anderson published the first ever Level 1 clinical evidence from a Phase III randomized trial confirming proton therapy as a standard of care. We also launched a minimum viable product of DynamicARC and obtained the Medical Device Regulation certificate for Proteus 235 reinforcing the robustness and the regulatory maturity of our Proteus platform. In Dosimetry, we continue to innovate with the launch of the QUASAR Phantom for MR Simulation in the radiotherapy market and the release of myQA Blue Phantom. We further strengthened our product portfolio positioning through the acquisition of PhantomX, enabling AI-based quality assurance. Turning now to our global footprint in proton therapy. At the end of the year, IBA had 45 operational sites, well distributed across regions with strong visibility on future expansion as 43 systems are in production and installation. At year-end, we had 8 sites under installation and reached a peak of 10 installations running simultaneously in '25, a new high that demonstrates our execution capability. This include the ongoing installation of the first Proteus ONE in Spain as part of the 10 system order. The installation of 3 additional projects is expected to start in '26, subject to building construction time lines. In China, we made strong progress on major Proteus PLUS installations with the first live treatment rooms in Chengdu and Shenzhen and final acceptance expected by year-end '26. '25 also allowed us to further consolidate our market leadership in proton therapy. Thanks to the 12 rooms sold, we accounted for 63% of the total sold globally during the year. IBA continues to have the largest installed base in the market, which provides significant operational leverage and represents a robust platform to further promote proton therapy in close collaboration with our clinical partners. Increasing clinical evidence continues to be a key driver of Proton Therapy sustained momentum. In December '25, the Lancet published the first ever Level 1 clinical evidence, the most robust level of clinical data for a Phase III randomized trial led by MD Anderson. This study establishes Proton therapy as a new standard of care in head and neck cancer, demonstrating superior overall survival rates and significantly reduced side effect compared with conventional radiation therapy. In addition, early results from the RadCom Phase III Breast Cancer Trial presented at ASCO showed significantly improved patient reported quality of life with proton therapy in breast cancer, one of the most prevalent cancer types. Lastly, new studies have been recently added to pipeline of upcoming clinical evidence. We will continue to report on results. Despite an accelerated conversion into revenue, IBA Clinical continued to build backlog solidly in '25. Equipment backlog reached EUR 564 million, while the 2-year equipment book-to-bill ratio stood at 1.1, providing a sound platform for the future. Service backlog grew even faster now exceeding EUR 800 million. Zooming in on Proton Therapy Services, the increase in service backlog was supported by new orders and 7 renewed contracts while with existing customers. These contracts more than offset the amount of service revenue converted into P&L during '25. As a result, Proton Therapy Services continue to strengthen visibility, recurrence and long-term value creation within IBA Clinical. Let me now focus on Proton Therapy's performance and profitability turnaround. In '25, Proton Therapy returned to profitability, delivering a positive adjusted EBIT contribution of EUR 10.2 million compared with a negative contribution of EUR 12 million in '24. This improvement was driven by, firstly, top line growth as equipment sales more than doubled and service expanded. Secondly, profitability improvement with the scaling of our installed base. At adjusted EBIT level, this improvement was partially offset by continued investment in critical product innovations, including DynamicARC and FLASH and by the prudent application of our internal credit risk management policy with a recognition of EUR 8.7 million in bad debt within G&A. These are isolated problematic situations that we were willing to reflect while the overall quality of our credit exposure remains sound. Turning to Dosimetry in '25. Dosimetry delivered a stable top line in a challenging environment as already communicated throughout our trading updates. However, profitability continued to be negatively impacted by this competitive and regional dynamics in the U.S. and China. This effect was further amplified by the absence of last year's one-off subsidy grant of EUR 800,000, which overall contributed to a decrease in adjusted EBIT. These market dynamics also impacted commercial activity with order intake decreasing by 9%. As a result, cost optimization measures have been defined and will be rolled out in '26, ensuring a sharper focus on core activities and a realignment of the cost base with current market condition. I will now hand over to Henri to comment on the performance of IBA Technologies.
Henri Romree: Thank you, Olivier, and hello, everyone. Let me walk you through the strategic progress achieved in IBA Technologies, starting with Industrial and then going to RadioPharma solutions. Industrial Solutions continued to progress along its road map, advancing accelerator-based sterilization and advanced irradiation solution. Ongoing market dynamics continue to support the long-term shift towards, X-Ray and E-Beam technologies as regulatory and environmental pressure on ethylene oxide increases. At the same time, the sterilization market is somewhat digesting temporary overcapacity after a peak in order intake in early 2020, partly linked to the COVID-driven investments. We remain very confident in the underlying market that is growing steadily and expect industrial order intake to normalize as utilization catches up with the installed capacity. In China, despite slower pipeline conversion with some project shifting in the coming years, we made substantial headway last year signing 2 additional high-power [ x-ray ] contracts, tripling the current local capacity. In terms of new application, we advanced our PFAS project progressing through technical trials and studies. And in polymers, another area with promising long-term potential, research continues to show potential with pilot progress remaining on track. Turning to RadioPharma solutions. We saw solid commercial traction with the highest order intake to date, supported by deeper penetration in our core markets and an expansion into high potential geographies. This was illustrated by the sale of a high-energy Cyclone IKON contract to PET Pharm Bio to install a PET and SPECT isotope production center in Taiwan. More recently, post period close, we also signed 2 strategic multisite contracts in the U.S., one with SpectronRX and another one with RLS/Telix. Finally, we continued significant efforts to expand our position in the radiopharmaceutical value chain, which I will detail on the next slide. As you know, IBA strategy in nuclear medicine is leveraging on our accelerator technology leadership to expand along the value chain and build a next-generation oncology platform. A key building block of this platform is ORA, a recognized trailblazer in radiochemistry, which we acquired in December. Another element in Theranostics, where we are making good progress. I will now cover these strategic initiatives in more detail. Let me first come back to the ORA acquisition, which represents an important strategic step for IBA in nuclear medicine. Completed at the end of 2025, the acquisition of ORA brings into IBA, a Belgium-based radiochemistry company with a highly skilled team of around 15 employees, including senior radiochemists, a strong record in automated PET radiopharmaceutical synthetizers and established relationship with leading pharmaceutical partners. By combining IBA's leadership in cytotron technologies with our cutting-edge expertise in radiopharmaceutical synthetizers, we are creating one of the most competitive integrated solution available for hospital and global radiopharmacy networks. This new integrated offering addresses the full radiopharmacy workflow from isotope production to purification, labeling and delivery and is designed to support customers seeking higher productivity and access to advanced radio isotopes. Importantly, the ORA acquisition is immediately accepted to IBA Technologies revenues and profits. And now moving to Theranostics, which is, as you know, a strategic pillar for RadioPharma solutions. It is indeed a fast-growing segment with a nuclear medicine [ serving ] with a projected market size of USD 20 billion by 2030 based on a 35% growth rate on a yearly basis as presented in our last Capital Markets Day. As you can read on the slide, several isotopes are emerging in this field out of which we are highlighting the most mature ones. Within this landscape, IBA decided to focus on actinium-225 and astatine-211 as strategic place based on clinical development as well as our technological and industrial edge. You already know our subsidiary, PanTera, paving the way to making actinium-225 treatment widely accessible. Catherine will update you on their progress in the corporate section of this presentation. Besides, we are increasing momentum for astatine-211. We are positioning ourselves on this emerging market. Firstly, on the technology front, we are developing a dedicated high-throughput cyclotron. Secondly, on the clinical side, we are one of the co-leader of the accelerate.eu program funded by the European Union. This ambitious platform combines industrial clinical and pharma players around a bench-to-bedside ecosystem to accelerate astatine-211 translation into a clinical setting. Lastly, with respect to production infrastructure, we continue to make good progress with a partner, Framatome, on our joint ambition to enable the astatine-211 market through the deployment of a full-fledged production network across Europe and the U.S. Turning now to the technologies backlog, you will notice a decrease over the period, reflecting stronger conversion into revenues. Industrial Solutions order intake has not yet picked up as market absorbs the temporary overcapacity as this was not fully compensated by the strong market momentum in RadioPharma. It led to a 2-year equipment book-to-bill ratio of 0.8 below reconstitution level. As far as service are concerned, backlog now includes upgrades. Nevertheless, IBA Technologies' contribution remains limited as our scope mostly relates to short-term 1-year maintenance contract with no permanent presence of an IBA [indiscernible]. Finally, looking at the financial results, net sales remained stable at EUR 225 million, representing more than 35% of total group sales. This is a solid achievement following 2024 strong growth. Adjusted EBIT contribution eased compared to prior record year. This is driven by 2 elements: first, a less favorable project mix, most notably a higher share of RadioPharma integrated projects where we collect lower margin on our third-party equipment; and two, intensified R&D investment in the radiochemistry and radioligand therapies within RadioPharma as well as in PFAS and polymers within Industrial. Nevertheless, EBIT margin landed at 8.9%. Let's move onto IBA gross profit. I will now give the floor to Catherine who will walk us through the corporate activities besides our group CFO.
Catherine Vandenborre: Thank you, Henri. And let's start with an update of our new ventures beginning with PanTera, our joint venture launched with the Belgium Nuclear Research Center. In June, PanTera started the production and the supply of actinium-225 for clinical trials and compassionate use reaching full-scale weekly production in October. The year 2025 also saw the start of the construction of a large production plant located in Northern Belgium. Of course, all required permits were obtained ahead of the start of the construction. Operations are expected to start in '28 with first commercial scale supply targeted for '29. Finally, it is worth noting that PanTera continues to build strong commercial traction with more than 20 active customers across the value chain, including pharma and biotech players as well as key reference hospitals and research institutes. Multiple clinical trials are ongoing spread across different phases with first results expected from 2028. We will keep you posted on further developments. From a financial standpoint, PanTera generated EUR 13 million of revenues in '25 and became EBIT positive in Q4. In terms of funding, PanTera called the third tranche of its Series A for IBA. This resulted in a EUR 7.2 million revaluation gain and dilution to around 35%. A fourth and final capital increase tranche is expected in the first semester 2026, which will further dilute IBA shareholding to 31% while generating an expected revaluation gain of EUR 5.5 million. We remind you that PanTera was valued at about EUR 290 million post money in September '24. Let's now have a look at our other new ventures. First mi2-factory in the field of semiconductors achieved a very important milestone with the finalization of the demo system specifications for its first machine based on updated market requirements. Post period, an equipment development and purchase contract was executed with IBA for a value of EUR 15 million covering the accelerator component of mi-2's end-to-end solution. Second, NHa, our HadronTherapy project launched in collaboration with Normandy region, reached an important derisking milestone with the installation of the [ superconducting coil ] on site. Cooling activities are in progress and generation of the first magnetic field is expected over the summer. In parallel, efforts are ongoing to secure short-term and long-term financing. Post closing, NHa secured the first tranches of the anticipated bridge funding from its funders and other reference shareholders. Turning to our sustainability agenda, '25 delivered concrete progress that reinforces our ability to deliver sustainable growth and long-term value creation. We maintained strong momentum on decarbonization, remaining on track towards our Scope 1 and 2 reduction targets. More than 90% of our electricity now comes from renewable sources, supported by the continued rollout of our low-impact mobility policy. We also advanced the sustainability of our installed base. In the U.S., the full system restoration at MGH is underway, upgrading the proton therapy system to modern standards while avoiding a carbon-intensive decommissioning and rebuild. Beyond environmental actions, we expanded our contribution to patient support. Through the Oncia community, patients across Belgium, Spain and France benefited from human-centered supportive care. Governance and value chain initiatives also progress. We are proud to see our B Corp score increasing to 118 from 114 in 2024 and we published our first CSRD report. Let's now close the business review section and move to the financials in more detail, and let's start with the commercial traction behind our performance in '25. As mentioned earlier, we saw strong growth in equipment order intake, mainly driven by Proton Therapy with order intake up 137%, achieving the second best year ever in terms of rooms sold. From a regional perspective, overall commercial traction in '25 was mainly driven by the APAC region, including 7 out of the 12 PT rooms sold over the year. This contrasts with '22, where growth was mainly driven by EMEA, boosted by the Spanish PT project. The Americas have remained a solid core market for IBA across the years. Turning now to profitability. '25 is driven by a record high top line, up 44% year-on-year, partially offset by a reduction in gross margin down to 32.2%, mainly due product and project mix. This resulted in a combined effect of additional EUR 31.5 million in gross margin. Operating expenses increased in nominal terms, but progressed less than proportionately to revenue at 28% of sales compared with 30% in '24. Within OpEx, the increase in G&A reflects selected investments to support business growth, including digital and organizational initiatives, but also the one-off impact of higher bad debt in IBA Clinical at around EUR 9 million, following a prudent application of our risk policy. Finally, R&D increased as we progress on key projects, strengthening IBA's growth platform, including Proton Therapy imaging, DynamicARC, radiochemistry and [indiscernible] PFAS destruction. Let me now comment on the main items below adjusted EBIT. They were mainly impacted by a project to migrate to [ S/4HANA ], which is expected to be completed in the first semester of '26 and by a foreign exchange loss due to unfavorable currency fluctuations, in particular, the U.S. dollar, which is largely noncash. In addition, hyperinflation in Argentina continued to negatively impact our Proton Therapy project in Buenos Aires for EUR 1.9 million in '25. Impact was, however, reduced versus '24 and will wane in '26 as the project nears completion. Turning to PanTera. You will note a negative contribution under the equity method linked to negative result and a EUR 7.2 million revaluation gain, as already mentioned. If we turn to cash evolution, you can see that operating cash flows were negative over '25 due to cyclical working capital movements. While inventories decreased compared to '24, contract in progress increased substantially, reflecting the high volume of project activity in '25 with cost and revenue recognition progressing ahead of invoicing and cash collection. This trend is expected to start improving over the second semester of '26, partly thanks to the delivery of proton therapy projects in Spain and China as outlines by Olivier before accelerating in '27. Investing cash flows include the ORA acquisition. As already announced in our Q3 '25 trading update, we closed EUR 135 million refinancing package in November to strengthen our balance sheet structure and capture strategic opportunities. We have indeed, in December, partially financed the [indiscernible] ORA acquisition by drawing entirely of EUR 50 million acquisition term loan. Building on the strong execution in '25, we provide 1-year guidance for '26 of at least EUR 32 million of group adjusted EBIT. With backlog at an all-time high and services contributing to growing recurring income, we reiterate our confidence in IBS profitability trajectory while being mindful of the current macro and geopolitical environment. As a result, we reiterate the '24-'28 outlook announced at last year's Capital Market Day. I will now hand over to Olivier for his concluding remarks.
Olivier Legrain: Thank you very much, Catherine. To conclude, I would say that '25 represents a key milestone for IBA. We delivered record high revenue and strong order intake, clearly reflecting the robustness of our commercial momentum across our businesses. Profitability improved meaningfully, supported in particular by the scale-up of Proton Therapy, driving the turnaround of our largest business unit back to profitability. At the same time, we continue to make disciplined and targeted strategic investments to support IBA's long-term growth. Throughout the year, we also actively managed our financial position and funding, strengthening the group resilience in a volatile environment. Finally, full year '25 guidance has been delivered, confirming the execution capabilities of our teams and the solid foundation of our transformation. With a strong backlog, clear growth drivers and improved visibility, we enter '26 with confidence and a clear trajectory ahead.
Thomas Pevenage: Thank you very much to the audience for listening to our results presentation. For information, you will find on this presentation the key dates from our financial calendar. We will now move on to the Q&A session. [Operator Instructions]. We will start with Frank Claassen. So you should be able to speak, Frank. Frank, we cannot hear you, or maybe we can start with David. He was the second in line.
Frank Claassen: Hello, this is Frank Claassen speaking. Can you hear me?
Thomas Pevenage: Yes, we can.
Frank Claassen: Okay. I had a bit of trouble here. This is Frank Claassen of Degroof Petercam. I have 2 questions. First of all, on your gross margin, it declined in '25 because of the low-margin legacy contracts. What can we expect in '26? Is that -- the legacy contracts, will that roll off? And hence, can we expect some gross margin improvement in '26? That's my first question. And then secondly, on the symmetry, you're taking cost measures here. Can you elaborate what kind of cost measures? And will we already see the benefits in '26? Hence, can we see margin improvement in '26 already?
Catherine Vandenborre: So I will take your first question and leave for Olivier, the second question that you raised. So maybe to give a little bit more of color on the '25 gross margin. I would start by saying that indeed, it was impacted, like we said in the past by project in Proton Therapy where margins were lower than the typically targeted margin. But it was also impacted by an unfavorable project mix in RadioPharma. And so compared to, let's say, other years, we had those 2 effects. Dosimetry declined a little bit as well, but Industrial Solution improved. And Proton Therapy, and that's quite interesting, even if it's still impacted by those contracts that we signed with low margin, Proton Therapy improved compared to 2024. And that's also a way to signal the trends over 2026. We expect indeed an improvement of gross margin in '26 compared to 2025. And this is led by 3 major trends. The first one is a kind of more healthy competitive dynamics in the proton therapy market. And of course, it will take time before those contracts signed, especially in '22 will be fully realized, but the more we progress, the less important is the relative share of those contracts. Second element that we already mentioned is the scaling effect in Proton Therapy services where we really improve general margin, thanks to different efficiency measures that we implement. And the last one is a more favorable mix in RadioPharma with high-end applications.
Olivier Legrain: When it comes to Dosimetry, we took -- we have implemented actually a number of cost reduction measures, productivity measure to adjust to the vision we had on the market development while preserving the sustainability through continued R&D investment. And the short answer to your question is yes, we can expect to see profitability improvement in Dosimetry already in 2026.
Thomas Pevenage: We can move to David.
David Vagman: First, a little bit on the question of Frank. So -- but on the 2026 guidance, so I heard you comment on the gross margin. Can you also comment on the top line and the OpEx growth or additional OpEx investments that you're planning for 2026? And then also related to 2026, could you explain us what could be the impact of FX moves on the top line and also the gross margin, if that plays a role? Then my third question on the bad debt. So you've mentioned in the press release that risk management played a role. So could you explain how you've changed your credit risk analysis?
Catherine Vandenborre: Okay. So I will take your question on the evolution of the top line, OpEx and I think guidance overall in 2026. So first, in terms of top line, you might remember that we realized a growth of the top line of 7% in '24. We have now 24% in '25. And we mentioned in the Capital Market Day last year that we expected front-loaded growth. In total on '24-'28 trajectory that was announced with the range, 5% to 7% growth per annum overall. And what we can say is that we confirm the range, but we expect also to land at the high end of this range. We need to have in mind that '25 was particularly strong in terms of revenue. So each year over the period may not be as solid top line-wise. But of course, what we will focus on is to improve the profitability overall versus a very aggressive top line growth. And so it brings me to your question more generally on the guidance, gross margin and OpEx. So like already stated, we can expect an improvement of the gross margin in '26 versus '25. OpEx are expected to grow a little bit as well, but quite reasonably. You might remember that in terms of OpEx, we took the commitment to maintain them at maximum 30% of the sales. And that's the reason why if you have in mind the 28% of this year, it will remain relatively moderate as a growth. In terms of overall guidance, I think that we can say that we have been at this stage relatively cautious for 2026. The guidance that we gave is like in 2025, when to beat and not necessarily to meet. I think we need to have in mind that the macroeconomic environment is uncertain. And in this context, we remain cautious at this stage and give a guidance that underwrites those uncertainties. But as we continue to progress in execution over the year, we might update the guidance. And all in all, '26 guidance is on track to achieve an EBIT margin of around 10% in 2028. Regarding the bad debt, which was your other question. So in terms of management of the bad debt, the first element I would like to stress is that we -- of course, we have a policy based on which we try to secure payment through a number of elements like letters of credit, credit risk insurance, bank payments, guarantees and other instruments. But in 2025, we booked close to EUR 9 million, EUR 8.7 million, a little bit in an exceptional way. It's primarily linked to 2 PT customers in China or in the U.S. We are still in discussion with those customers. So we don't exclude to recover part of the amount later. But we believe at this stage, it was more cautious to book those bad debts.
David Vagman: And a follow-up on my question on FX or it could be [indiscernible] in gross margin?
Catherine Vandenborre: Yes. FX is, of course, quite difficult to predict the evolution. So we have -- you know that we have a hedging policy, which tends to hedge the cash exposure and not the P&L exposure. So we might remain exposed to fluctuation, especially versus the dollar, which are, of course, quite difficult to predict.
David Vagman: Is it more of a negative with your cost in euro and your revenues in dollar? Or is it?
Catherine Vandenborre: So it depends on the type of activities we have. If you look at the services taking into account that the vast majority of the activities are local, there we have a kind of natural hedge between the cost and the revenues. For equipment there, we still have a base of supplier, which is in Europe and in Belgium. So we tend to do our acquisition or purchase in euro. And then we sell in different currencies. In our negotiation with the customers, we always try to sell in euros, but you can imagine that sometimes it's not accepted by the customer and there, we hedge the position from a cash perspective.
Thomas Pevenage: There are currently no more questions. No one else raising his hands.
David Vagman: Otherwise, I have another question. On the net debt evolution, so if you could comment and also -- okay, on 2026, but also maybe give us some perspective on 2028?
Catherine Vandenborre: Yes. So on the net debt evolution, so first, you saw the figures on '25. I will repeat them for the sake of clarity. So we ended at financial net debt position of EUR 58 million, but like-for-like, it would have been EUR 41 million if we don't take into account the acquisition of ORA, which was, of course, executed at the end of '25 and fully funded with debt. Now going forward, that was your question. '26 will still be impacted by the low-margin contract that we have signed mainly in '22. What we expect is that as from the second semester of '26, mainly the second semester with more devices shipped and expected payments linked to the shipment of those device, the cash situation is expected to improve over the second semester compared to the situation at the end of 2025, but still remaining negative in the sense of net financial debt position at the end of 2026. We will need to wait '27 to see an improvement with, let's say, reversal in our working capital cycle and end the year on a positive situation rather than a net financial debt. And the trend -- this positive trend is expected to continue in 2028. Of course, all this is based on the assumption that we have payment from the customers like we had in the past, so based on historical type of payments.
Thomas Pevenage: Time to raise your hands if you want to ask the last questions. So [indiscernible], you should have the floor open. I think you have to click on unmute to make sure we can hear you. Okay, I think he was having a technical issue. [indiscernible].
Unknown Analyst: Just on Dosimetry, I thought -- I don't know if I heard from someone that you would be thinking about exiting this business again? Or was that the false rumor profitability there is really, really disappointing. What's the future of this division?
Olivier Legrain: So for Dosimetry, we confirm that we continue to see it as a valuable activities, well anchored into IBA's portfolio of activities and notably with a very strong connection to the proton therapy market. So yes, it was a fake news that you've heard.
Unknown Analyst: Maybe an additional question from my side. I saw that there were 3 PT contracts for which the services contract were discontinued. So 3 PT rooms for which the contracts were discontinued on the services side, do you see more of your portfolio of existing PT system at risk of where the maintenance could not be -- could be discontinued?
Olivier Legrain: So I think one of them is one in Russia. So we don't have any additional site in Russia. So we had to indeed discontinue service in Russia, even though the site is still operating. The other one was one of the first sites that we have installed. It was in China, and we proposed the customer to either upgrade the site like MGH did or we could not ensure regulatory compliance anymore, and we had to discontinue. So back to your question, no, I don't expect more of this kind of situation.
Catherine Vandenborre: And the third one to be very precise, is MGH. So we temporarily stopped because we are doing the refurbishment of the site there. But of course, we expect to renew the contract once the refurbishment is done.
Olivier Legrain: Exactly.
Thomas Pevenage: [indiscernible], I think you have another question?
Unknown Analyst: Yes. On proton therapy, since you have around 65% of new market share, can you comment on your pricing power? Do you use your strength to have, yes, better pricing and margins, et cetera, because there's still a long way to go, I guess.
Olivier Legrain: Well, I think on new contracts, we are where we want to be in terms of pricing. All of them remain competitive. So there is not one single deal where we are alone or so we need to remain within the industry benchmark. But in all new contracts, we are on industry benchmark. So we are back to where we want to be in terms of gross margin.
Unknown Analyst: Yes. Well, for us, it's a bit hard to understand if you have such a high market share, why you say that you have to remain within industry benchmark. That seems -- or that's hard to understand for me as an outsider, one would think that you would have stronger pricing power than -- if you have -- if the market is so competitive, then it means that you're not so unique or maybe I understand wrongly?
Olivier Legrain: I think it says it all. We have a dominant market share, but market is competitive. So I think we have a genuine competitive advantage that makes us win and not win on price, but there's a limit to that. And once again, it's not that we don't have competitors. We have competitors and they are credible enough, let's say, but we are more credible to win more deals with some kind of -- not on price, but on genuine value of our portfolio.
Unknown Analyst: Okay. Now I understand. Just one other -- another rumor I heard was that the PFAS project wasn't going that well, but Catherine explained it. It seems to be progressing. Perhaps could you say a little bit more on the prospects of the PFAS project?
Olivier Legrain: Maybe you should tell us where all these rumors are coming from.
Catherine Vandenborre: Well, it comes from a discussion I had. So in terms of PFAS, there are different applications or solutions that we were looking for in water, but also in, let's say, solid elements on solid elements. On solid elements, I think from a scientific point, we didn't see a solution that would lead to a satisfactory business case. On water, the tests are positive from a scientific point of view, and we are now working on the positive business case together with partner.
Unknown Analyst: That's why rumors are good. Now I understand this is precisely the right context.
Thomas Pevenage: Anyone else or follow-on questions? Okay. It seems we have answered all questions that were raised. So many thanks again for attending the call and supporting IBA throughout our journey. We wish you a good end of day or start of day depending on where you are, and happy to maintain the dialogue going forward. Many thanks.
Olivier Legrain: Thank you very much. Thank you. Bye-bye.
Catherine Vandenborre: Thank you.