Ion Beam Applications (IBAB) Q4 2025 Earnings Call Transcript

Hello everyone and welcome to the presentation of IBA's 2025 full-year results. I'm Thomas Pevnage 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 the 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 Legrin, our Chief Executive Officer and IBA Clinical Lead, Henri de Romeray, our Deputy Chief Executive Officer and IBA Technologies Lead, and Catherine Vandenborg, 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.

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 IVA. We deliver on our commitment. Our guidance has been met and with progress 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 620 million euros, adjusted EBIT, formerly known as REBIT, of 27.4 million euros, and a return to profitability in proton therapy. Our growth engine has also strengthened with a record backlog of 1.6 billion euros, supported in particular by the scaling of service and nuclear medicine and a strong proton therapy order intake. Beyond this annual performance, 2025 marks the inflection point from an 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 32 million euros. Let me now have a closer look at our commercial momentum. In full year 25, IDA recorded a very strong growth in order intake, bringing our backlog at an all-time high of 1.6 billion euros and providing increased visibility for the future. Service backlog grew particularly strong, up 16% year-on-year, effecting the continued expansion of our proton therapy install base, but also a sound contribution of technologies. On the equipment side, we posted an historic equipment order intake of 452 million euros, 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 idea technology, 37 systems were sold compared with 33, driven by strong demand in radiopharma, while industrial solution normalized following record high years. As a result, the two-year rolling book-to-bill ratio reached 1.0, and 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 €620 million, an increase of €122 million compared with full year 24, thanks to well-executed backlog conversion and the growth in service activities. Adjusted EBIT amounted to 27.4 million euros, exceeding our guidance, a profitability improvement of 10 million year-on-year. The adjusted EBIT margin increased to 4.4 percent compared with 3.5 percent in 2024, despite a decrease in gross margin driven by a temporarily less favorable equipment profitability mix. Net debt stood at 58 million euros as of December 31st. As working capital continued to be impacted by the delivery of large proton therapy project, on a light-for-light basis, excluding the AURA acquisition, net debt would have been 41 million euros. Our net leverage ratio at 0.83 times adjusted EBITDA remains healthy. Building on strong execution delivered in 2025 and the momentum across our businesses, we are setting full year 26 guidance at a group adjusted EBIT of at least 32 million euros. Let's now move on to the review of our business performance. I will start with the progress of IDA Clinical. In 2025, 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 3 randomized trial confirming proton therapy as a standard of care. We also launched a minimum viable product of Dynamic Arc and obtained a 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 Kazar Phantom for MR simulation in the radiotherapy market and the release of MyQA Blue Phantom. We further strengthen 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, idea at 45 operational sites well distributed across region with strong visibility on future expansion as 43 systems are in production and installation at urn we had eight sites under installation and reach a peak of 10 installations running systematically simultaneously in 25 a new high that demonstrates our execution capability these include the ongoing installation of the first Proteus 1 in Spain as part of the 10th system order. The installation of three additional projects is expected to start in 26, subject to building construction timelines. 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 URN26. 25 also allowed us to further consolidate our market leadership in proton therapy thanks to the 12 room sold we accounted for 63 percent of the total sold globally during the year idea continues to have the largest install 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 one clinical evidence, the most robust level of clinical data, a phase three 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 effects compared with conventional radiation therapy. In addition, early results from the RATCOM phase 3 breast cancer trial presented at Astro 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 backlogs solidly in 2025. Equipment backlogs reached 564 million euros, while the two-year equipment book-to-bill ratio stood at 1.1, providing a sound platform for the future. Service backlog grew even faster, now exceeding $800 million. Zooming in on proton therapy services, the increase in service backlog was supported by new orders and seven renewed contracts while with existing customers. This contract more than offset the amount of service revenue converted into P&L during 2025. As a result, proton therapy services continue to strengthen visibility, recurrence, and long-term value creation within IBA Clinica. Let me now focus on proton therapy's performance and profitability turnaround. In 2025, proton therapy returned to profitability, delivering a positive adjusted tidbit contribution of 10.2 million euros compared with a negative contribution of 12 million euros in 2024. 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 install base. At adjusted EBIT level, this improvement was partially offset by continued investment in critical product innovations, including dynamic ARC and FLASH, and by the prudent application of our internal credit risk management policy with a recognition of 8.7 million euros in back debt within GMA. 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 2025, 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 these 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 800,000 euros, which overall contributed to a decrease in adjusted EBIT. This market dynamics also impacted commercial activity, with order in paid decreasing by 9%. As a result, cost optimization measures have been defined and will be rolled out in 2026, ensuring a sharper focus on core activities and a realignment of the cost base with current market conditions. I will now hand over to Henry to comment on the performance of IBA technologies.

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 continue to progress along its roadmap, 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 ethyl 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 shiftings in the coming years, we made substantial headway last year signing two additional high-power X-ray contracts tripling the current local capacity. In terms of new application, we advanced our PFAS Blaster project. 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 a radiopharma solution, we saw solid commercial traction with the highest order intake today, 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 icon contract to a pet farm bio to install a pet and spect isotope production center in Taiwan. More recently, post-period close, we also signed two 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's strategy in nuclear medicine is leveraging on our accelerator technology leadership to expand along the value chain and build a next-generation oncology platform. The key building block of this platform is Aura, a recognized trailblazer in radiochemistry, which we acquired in December. Another element is Theranostic, where we are making good progress. I will now cover these strategic initiatives in more detail. Let me first come back to the Aura acquisition, which represents an important strategic step for IBA in nuclear medicine, completed at the end of 2025 the acquisition of Aura Brings into IBA, a Belgian-based radiochemistry company with a highly skilled team of around 15 employees, including senior radiochemists, a strong record in automated PET radiopharmaceutical synthesizers, and established relationships with leading pharmaceutical partners. By combining IBS leadership in cyclotron technologies with our cutting-edge expertise in radiopharmaceutical synthesizers, we are creating one of the most competitive integrated solutions 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 radioisotopes. Importantly, the ORA acquisition is immediately aggressive to IBS technologies, revenues, and profits. I'm now moving to TerraGnostics, which is, as you know, a strategic pillar for radiopharma solution. It is indeed a fast-growing segment with a nuclear medicine survey with a projected market size of US$20 billion by 2030 based on a 35% growth rate on a yearly basis, as presented in our last year's Capital Market Day. As you can read on the slide, several isotopes are emerging in this field, out of which we are highlighting the four most mature ones. Within this landscape, IBA decided to focus on actinium-225 and on astatin-211 as strategic plays based on clinical developments as well as our technological and industrial edge. You already know of 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 us cutting 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-leaders 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 ASTATIN-211 transition into a clinical setting. Lastly, with respect to production infrastructure, we continue to make good progress with our partner to be from Atom on our joint ambition to enable the ASTATIN-211 market through the deployment of a full-fledged production network across Europe and the US. Turning now to the technologies backlog, you will notice a decrease over the period reflecting stronger conversion into revenues. Industrial solution 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 Radio Pharma. It led to a two-year equipment book-to-bill ratio of 0.8 below pre-constitution level. As far as services are concerned, backlog now includes upgrades. Nevertheless, IBA Technologies' contributions remain limited, as our scope mostly relates to short-term one-year maintenance contracts, with no permanent presence of an IBA team outside. Finally, looking at the financial results, net sales remain stable at 225 million in euros, representing more than 35% of total group sales. This is a solid achievement following 2024 strong growth. Adjusted debit contribution is, compared to prior recordier, this is driven by two elements. A less favorable project mix, most notably a higher share of radiopharma integrated projects where we collect lower matching on our third-party equipment, and two, intensified R&D investment in the radiochemistry and radioligon therapies within radiopharma as well as in PFAS and polymers within industrial. Nevertheless, EBIT margin landed at 8.9%. Let's move on to IBA corporate. I will now give the floor to Catherine who orchestrates the corporate activities besides our group CFO.

Thank you, Henri, and let's start with an update of our new ventures, beginning with Pantera, our joint venture launched with the Belgian Nuclear Research Centre. 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 as from 2028. We will keep you posted on further developments. From a financial standpoint, Pantera generated 13 million of revenues in 25 and became EBIT positive in Q4. In terms of funding, Pantera called the third trench of its series A for IBA. This resulted in a 7.2 million re-evaluation gain and dilution to around 35%. A fourth and final capital increase trench is expected in the first semester of 2026, which will further dilute IBA shareholding to 31% while generating an expected revaluation gain of $5.5 million. We remind you that Pantera was valued at about $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 IVA for a value of $15 million covering the accelerator components of MI2's end-to-end solution. Segans, NHA, or Carbon Therapy Project, launched in collaboration with the Normandy region, reached an important derisking milestone with the installation of the cyclotron superconductive 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 referential holders. 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 advance the sustainability of our installed base. In the US, 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 ONSIA community, patients across Belgium, Spain and France benefited from human-centred supportive care. Governance and value chain initiatives also progressed. We are brought to see our B Corp score increasing to 118 from 114 in 2024, and we published our first TSRD 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 2025. 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 room sold. From a regional perspective, overall commercial traction in 2025 was mainly driven by the APAC region, including seven out of the 12 PT rooms sold over the year. This contrast with 22, their growth was mainly driven by IBA, boosted by the Spanish PT project. The Americans have remained a solid score 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 31.5 million in gross margin. Operating expenses increased in nominal terms, but progressed less than proportionally to revenue at 28% of sales, compared with 30% in 2014. Within OPEX, the increase in GNA reflects selected investments to support business growth, including digital and organizational initiatives, but also the one-off impact of higher-back debt in IVA clinical at around $9 million, following a prudent application of all risk policy. Finally, R&D increased as we progress on T-project, strengthening IBS growth platform, including proton therapy imaging, dynamic arc, radiochemistry, and forever chemical PFAS destruction. Let me know comment on the main items below adjusted EBIT. They were mainly impacted by a project to migrate to Safarana, 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 non-cash. In addition, hyperinflation in Argentina continued to negatively impact our proton therapy project in Buenos Aires for 1.9 million in 2025. Impact was, however, reused, CERSUSH 24, and will win in 26 as the project nears completion. Turning to Pantera, you will note a negative contribution under the equity method linked to a negative result and a 7.2 million re-evaluation 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, contracting 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 outlined by Olivier, before accelerating in 2017. Investing cash flows include the Aura acquisition. As already announced in our Q3 25 trading update, we closed the 135 million refinancing package in November to strengthen our balance sheet structure and capture strategic opportunities. We have indeed, in December, partially financed the Accretivora acquisition by drawing entirely our 50 million acquisition term. Building on the strong execution in 2025, we provide one-year guidance for 26 of at least 32 million of group adjusted EBIT, which backlogs at an all-time high and services is 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 ALTUC announced at last year's Capital Market Day. I will now hand over to Olivier for his concluding remarks.

Thank you very much, Catherine. To conclude, I would say that 25 represents a key milestone for IVA. We deliver 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 IDA's long-term growth. Throughout the year, we also actively manage 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.

Thank you very much to the audience for listening to our result 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. Please raise your virtual hands using the button at the bottom of your screen if you have a question. and the mutes when we invite you to do so starting with a brief introduction of yourself and I see already two wailed hands and I will start with Frank Klaassen so you should be able to speak Frank, we cannot hear you or maybe we can start with David we've got a second in line Hello Hello, this is Frank Klaassen speaking

can you hear me? Yes, we can I had a bit of trouble here thank you I have two questions first of all gross margin 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 margin improvement in 26 already thank you 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 a project in proton therapy where margins were lower than the typically targeted margin, but it was also impacted by an unfariable project mix in radiopharma. And so compared to, let's say, other years, we had those two 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 were 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 2016 compared to 2025, and this led by three 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 2022, 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.

When it comes to dosimetry, we took, we have implemented actually a number of cost reduction measures, productivity measures to adjust to the vision we have on the market development while preserving the sustainability to continue R&D investment. And the short answer to your question is yes, we can expect to see profitability improvement in dosimetry already in 2026 ok that's very helpful thank you very much thank you we can move to David David yeah we hear you David thanks good afternoon everyone and thanks for taking my questions first a little bit on the question of

Frank so but on the 2026 guidance so I heard comment on the 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 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 mentioned in the press release that risk management played a role, so could you explain how you've changed your credit risk analysis? Thank you.

Okay, so I will take your question on 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 the 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 a front loaded growth. In total on 24-28 trajectory that was announced with a 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 periods 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 percent of the sales and that's the reason why if you have in mind the 28 percent 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, one 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 payments 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 9 million, 8.7 million, a little bit in an exceptional way. It's primarily linked to 2PT customers in China, 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 believed at this stage it was more cautious to book those bad debts.

Thank you. And a follow-up on my question on FX?

Yeah, FX is of course quite difficult to predict the evolution. so we have you know that we have a hedging policy but which seems to edge the cash exposure and not the P&L exposure so we might remain exposed to fluctuations especially versus the dollar which are of course quite difficult to predict is it more of a negative with your cost in euro and your revenues in dollar or is it so it depends on the the type of activities we we have if you look at the services taken into account that the vast majority of the activities are local there we have a kind of natural edge between the cost and the reviews for equipment there We still have a base of suppliers, which is in Europe and in Belgium, so we tend to do our acquisition or purchase in euros. And then we sell in different currencies. In all negotiations 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 edge the position from a cash perspective.

Okay, thank you very much.

There could be no more questions, no one else raising his hands.

Otherwise, I have another question.

Thank you.

Yes, on the net debt evolution, so if you could comment, and also, okay, on 2026, but also maybe give us some perspective on 2028.

Yeah, 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 the financial net debt position of 58, but like for life it could have been 41 if we don't take into account the position of fora, which was of course at the end of 25 and fully filled it 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 devices. 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, a reversal in our working capital cycle and end the year on a positive situation rather than a net financial debt. And this positive trend is expected to continue in 2028. Of course, all this is based on the assumption that we have payments from the customers like we had in the past, so based on historical type of payments.

Thanks very much.

It's time to raise your hands if you want to ask the last questions. Mathieu-Barbara, you should have the floor to make sure we can hear you. So I think he was having a technical issue and left the call. Danny, do it yourself and ask a question.

It's a strange technology for an old guy like me. 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 a false rumor? Profitability there is really, really disappointing. What's the future of this division?

So, for dosimetry, we confirmed that we continue to see it as a valuable activity, well anchored into IDA'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 heard.

Okay. Thanks very much.

Thank you. Maybe an additional question from my side. I saw that there were three PT contracts for which the services contract were discontinued, three PT rooms for which the contract was discontinued on the services side. Do you see more of your portfolio of existing PT system at risk, of, you know, where the maintenance could be discontinued?

So, I think one of them is one in Russia. So, we don't have any additional site in Russia. So, we had to discontinue service in Russia, even though the site is still operating. But the other one was one of the first sites that we have installed. It was in China, and we proposed to 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.

And the third one, to be very precise, is MGH. So, we temporarily stop, it's because we are doing the refurbishment of the site there, but we, of course, we expect to renew the contract once the refurbishment is done.

Exactly. We have another question.

Yes. On proton therapy, since you have around 65% of new market share, can you comment on your pricing power? Or do you use your strength to have better pricing and margins, et cetera? Because there's still a long way to go, I guess.

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. 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 course marketing 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's hard to understand for me as an outsider Either 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.

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 you know 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 proposal Ok, thanks 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 on the prospects of the PFAS project maybe we should tell us where all these rumors are coming from 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 i think from a scientific point we didn't see a solution that could 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 partners.

Et voilà, that's why rumors are good. Now I understand. This is precisely the right context. Thank you very much. Thank you.

Thank you, Ben.

So, following questions.

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 a dialogue going forward. Many thanks. Thank you very much.

Bye bye. Thank you.