Earnings call transcript: Ion Beam Applications sees strong Q3 2025 growth

Ion Beam Applications SA (IBA) has reported a robust performance for the third quarter of 2025, highlighted by a significant increase in order intake and strategic advancements in its product offerings. The company’s stock saw a notable increase of 5.63%, reflecting investor confidence in its growth trajectory.

Key Takeaways

• Order intake rose to €195 million, an increase of €11 million from Q3 2024.
• Secured €135 million in financing to strengthen the balance sheet.
• Acquired Phantomics to boost capabilities in medical imaging.
• Strong commercial momentum in Radiopharma Solutions and theranostics.

Company Performance

Ion Beam Applications demonstrated a solid performance in Q3 2025, with a notable rise in order intake and strategic moves aimed at enhancing its product portfolio. The company’s acquisition of Phantomics is expected to enhance its capabilities in the medical imaging sector, while the signing of a memorandum of understanding with Varian aims to improve proton therapy interoperability. Despite facing regulatory pressures in ETO sterilization, IBA continues to maintain a strong position in the proton therapy market, particularly in the APAC region.

Financial Highlights

• Order Intake: €195 million, up €11 million year-over-year.
• Net Financial Position: €60 million.
• Backlog: Maintained at €1.3 billion, a slight decrease of €0.1 billion.

Outlook & Guidance

The company remains confident in meeting its 2025 guidance, projecting an EBIT of at least $25 million. IBA anticipates a gradual improvement in its net financial position starting December 2025. Future developments in proton therapy projects are expected to extend beyond 2026, with potential acquisitions in dosimetry to address market challenges.

Executive Commentary

Catherine Vandenborre, CFO, expressed confidence in meeting this year’s guidance, highlighting exciting developments in theranostics. Co-CEO Henri de Romrée emphasized a cautious approach to proton therapy project deliveries, ensuring hospital readiness before machine construction.

Risks and Challenges

• Regulatory pressures on ETO sterilization could impact operations.
• The need for strategic acquisitions in dosimetry to stay competitive.
• Managing credit risk with hospital customers remains a focus.

Ion Beam Applications’ Q3 2025 earnings call reflects a company poised for growth, with strategic initiatives and financial resilience at the forefront of its agenda.

Full transcript - Ion Beam Applications SA (IBAB) Q3 2025:

Thomas Pevenage, Investor Relations, IBA: Hello, and good afternoon, good morning. Welcome to our conference call for the third quarter training updates. We’re pleased to welcome you and take this opportunity to have a dialogue with you. We have prepared a short presentation, considering it’s just a third quarter update and not a full-fledged update like we provide in full year and half-year results. Basically, we’ll cover the presentation together with Catherine and Henri. We propose that you can raise your hands after the presentation is finished. I will give you the floor and will unmute you so that you can ask your question and you can basically follow on the dialogue. You’ll see our usual disclaimer on these slides.

Today’s speakers, Catherine Vandenborre, Chief Financial Officer of IBA, Henri de Romrée, our co-CEO in charge of IBA Technologies, is also joining us and happy to take questions, and myself, Thomas Pevenage, taking care of investor relations. We will start with key highlights on the business side. That is a specific topic for this training update, we will cover the corporate refinancing that you could discover as part of our press release earlier today. I will now leave the floor to Catherine for the first section.

Catherine Vandenborre, Chief Financial Officer, IBA: Yeah, good afternoon or good morning, everyone. Thank you very much for attending this training update call. Like Thomas mentioned, we hold this call today basically to provide you with a qualitative training update. We will again confirm the trends in our operational activities and show that they remain fully aligned with our guidance. We will briefly discuss the trends we see in the markets, and we will present our new financial structure before, of course, answering any questions you may have. The first element that I would like to stress is that IBA remains fully confident and highly confident to meet this year’s guidance, being EBIT at least $25 million, and that’s supported by well-under-control effects, which remain below our long-term targets of maximum 30% of sales, and an already positive EBIT contribution from Proton Therapy.

This is, for us, a very important milestone resulting from the scale-up of Proton Therapy activities and favorable project needs. Of course, it underpins all commitments in the profitability improvement trajectory that we set ourselves at the beginning of the year. In terms of equipment under retake, this one amounts to EUR 195 million. It is an increase of EUR 11 million versus Q3 2024, thanks to a strong contribution from IBA Technologies, which increased by 22%, and more specifically, Radiopharma Solutions. To give a little bit more flavor and details, FPS has an excellent commercial momentum in high-energy Cyclone Icon and Cyclone Cube systems in both emerging and more mature markets and applications. In Industries, we have a quite active pipeline in China. In PT, we have sold four ProteusONE at the end of Q3, sorry, 2025.

If you remember last year, same period, we had sold three ProteusONE, and the sales include two ProteusONE orders from our existing customer, Apollo, in India, which is expanding beyond its already operational multi-room facility in Chennai. In Dosimetry, we see a decreasing level of activity versus last year. We face some headwinds in the U.S. and the Chinese markets. In conclusion, on the order intake, I would say that it is a very encouraging one, confirming the added value of all solutions to all customers and the positioning of the IBA Group portfolio of activities. Of course, 2025 is not ended yet, and we will keep you informed on the order intake progresses that we will realize in the next weeks. In terms of backlog of equipment and services, it is maintained at EUR 1.3 billion, slight decrease of EUR 0.1 billion versus Q3 2024.

Let’s say it’s more or less stable after the strong accelerated backlog conversion that we have observed in the first half of 2025, and that is due to the higher order intake in Q3. Finally, our net financial position amounts to EUR 60 million as working capital has continued to be impacted by the customer delays in delivery of large Proton Therapy projects in Spain and China. That being said, we see this amount as a peak, and our net financial position is expected to gradually improve from December 2025, while we have secured a solid refinancing package on which we will come back in a few minutes. To give you some view on the progress that we have made across the different business segments, first, on the clinical side, PT more specifically, we signed a memorandum of understanding with Varian at ASTRO.

This memorandum aims to strengthen interoperability, enhance clinical workflow, and we went also to co-develop some technologies together, including technologies in connection to our roadmap on dynamic ARC and flash therapy. We see also a very good momentum for Proton Therapy supported by the growing clinical evidences. In particular, we have seen an exciting first-ever level one clinical evidence provided by MD Anderson that demonstrates Proton Therapy’s benefit in head and neck cancer versus conventional radiation therapy, offering same tumor control with reduced side effects and, most importantly, improved survival rates. We see also strong commercial traction in APAC, which is reflected in our order intake, and the pipeline in the U.S. remains quite active as well. Regarding ELITRA, our partnership in carbon therapy, the installation works of the first system are progressing, and the financing efforts are ongoing in parallel to cover related costs.

Going to dosimetry, like I said, we face some regional specific challenges in the US due to local competitions. We have also some headwinds in China. We have closed the acquisition of the Berlin-based Phantomics company at the end of October 2025. As you may have seen in our press release, Phantomics is a commercial stage company recognized for its advanced anthropomorphic phantoms, which are used in quality assurance for AI solutions in medical imaging. Now, going to IBA technology side, in the industrial segments, we see a continuing regulatory pressure on ETO sterilization, supporting the long-term shift towards E-beams and X-ray technology. We see also sustained progress on new applications like polymers, like PFAS, with IBA’s increased presence at specialized conferences and work groups. On Radiopharma Solutions, there are strong commercials and good commercial traction, which is reflected in sales both in emerging and mature markets.

We see very exciting times in theranostics with increasing industry interest in nuclear medicine, and especially from major pharma companies with particular focus on alpha emitters such as Actinium-225 and Astatine-211. Now, I propose to discuss the financing package that we concluded, and its rationale. Maybe first, as a reminder, we had undertaken a review of our financial structure considering three elements. First, the past and expected evolution of the business. Second, the expected evolution of working capital, and three, possible investment opportunities. This review resulted in the closing of a refinancing package, including a EUR 125 million bank club deal with different tranches and a EUR 10 million subordinated loan from Wallonie Entreprendre. The refinancing addresses three objectives.

The first one is the consolidation of IBA’s balance sheets, acknowledging that past investment in long-term assets like Pentera, like NHA, sorry, like MIQ, that those investments had been funded by operating cash flows and not long-term financing. Second, we want to increase our resilience in a volatile context. Third, we want to build firepower to capture possible inorganic growth opportunities, of course, opportunities meeting our investment criteria and especially being related to IBA markets and being accretive. Out of the EUR 135 million financing package, EUR 60 million has been drawn so far. Thomas will now further detail the current and intended use of funds, as well as the key terms and conditions of the facilities.

Thomas Pevenage, Investor Relations, IBA: Thank you, Catherine. You will see on these slides our intended allocation of the use of these credit facilities. On the right-hand side, you find the different tranches of funding. On the left-hand side, potential uses for these. First of all, starting at the top, you will see the EUR 10 million subordinated loan and basically EUR 30 million drawn under the EUR 50 million five-year term loan, immediately reinforcing the long-term funding components of the balance sheet, which is the first item highlighted by Catherine in our financing strategy. We have an unused portion under this five-year term loan amounting to EUR 20 million, which is available to cover more structural working capital over the medium term, let’s think, for instance, of our Spanish Proton Therapy project, as well as to fund investment opportunities.

While the latter would also benefit from specifically dedicated M&A term loan, that’s the $15 million tranche you see on the right-hand side. At the bottom, we have $60 million of revolving credit facilities aiming to address short-term working capital fluctuations. Note that they can also play a useful role, considering that some geographies in which we operate do not allow straightforward cash management solutions, namely India and China, for instance. This, from time to time, can create imbalances between group entities having excess cash, while IBA, SA in Belgium, where manufacturing, R&D, and SQ activities take place, may have some needs. Those revolving credit facilities can accommodate for those intra-group cash management opportunities or challenges as well. You see on this slide, basically, again, an overview of the different tranches of funding and the amounts already drawn versus what remains available.

$61 million drawn so far, leaving $74 million available. Time-wise, we have six months to consider drawing additional tranches under the $50 million term loan and still 24 months under the acquisition term loan facility. We will regularly review the use of these credit lines going forward in function of the evolution of working capital, temporary and structural, and as well business opportunities. Now, a few words on the terms and conditions. Bank facilities are based on a floating rate, so typically EURIBOR, plus a margin, and said margin is in line with our previous credit lines. Financial covenants also follow our previous standards and consist in a maximum net leverage ratio and a minimum level of corrected equity. Corrected because equity then, in this case, includes subordinated loans. The net leverage is calculated on the net debt excluding subordinated debt and the last 12 months’ remedial.

The net leverage covenant provides for a maximum of three times. Besides, as customary within a club deal documentation framework, IBA has to comply with certain undertakings related amongst others to M&A, disposal assets, or others. Now, already moving to the conclusion, we have in place a financing structure that is secured with a five-year commitment from the financing partners. Optimized, as Catherine has said, the idea was definitely to have a package addressing an adequate mix of long-term versus short-term on the liability sides and funding versus the asset sides. Flexible to be able to address working capital volatility and as well to be able to flexibly in a natural way to capture investment opportunities and as well robust given the support of strong financing partners that you see listed on the right-hand side of the slide.

A pool of four banks and as well Wallonie Entreprendre, our long-standing financing partner. We see the opportunity if we need to thank all of them for the trust and long-term commitment to IBA success. We are now ready to take your questions. Please again, raise your hands and unmute yourself. First question is from David. Please go ahead.

Yes, good afternoon, everyone, and thanks for the update and allowing us to ask questions. Maybe first on the refinancing, I did not hear it. Can you come back on the covenant and maybe give us details about the cost of the financing? Can you confirm that you are actually not planning to use, so in your budget, to use to draw the RCF as in slide seven? That is my first question, and then I have two more. Maybe we can start with this one.

Okay, good. Thank you, David. The first part of the question is related to the covenants. Basically, and it is currently the case today, we have two covenants, two financial covenants. The first one is a net leverage ratio, so comparing the net debt excluding subordinated debt and the last 12 months’ remedial. It is calculated on a rolling basis, and we have to comply with a level of maximum three times. The second covenant is a minimum level of corrected equity. Why is it corrected? It is because it is including the subordinated debts as banks consider it is equity for that purpose. I assume it is clear. On the cost, then, of course, as you can imagine, the exact level of margin is a confidential element from a bank perspective as well.

We can only comment that we stay with a similar level of interest rate and margin, basically as the current credit lines. If you look at the average use of those credit facilities over the last period of time versus the interest charges on our P&L, you will have an idea of what you can expect for the future. The last question relates to the use of the revolving credit facilities most specifically. Currently, we’ve drawn $20 million out of the available $60 million. We’ve commented on the expected treasury trajectory with improvements indeed versus the current position starting from the end of this year and improving over the next year, amongst others tied to the delivery of large Proton Therapy projects, namely in China and Spain. Definitely, use should reduce over time.

I also commented on intra-group cash allocation that may require from time to time use of these credit lines, so this should not come as a surprise if you maintain some use periodically. The idea is that these are used as shorter-term type of buffer.

Thanks very much. My second question, you anticipated a bit, it’s on the Ortega contract deliveries for this year and for next year. Maybe you can also comment on the Chinese contract. What is reasonable to expect and maybe to give us a range, not necessarily precise, but a rough indication of how many projects you expect, basically for which you expect payment actually this year and then next year?

Henri de Romrée, Co-CEO, IBA: Yeah, I think on this one, we remain quite aligned with what we already mentioned at the moment of the publication of Q2 results. To summarize, we have currently manufactured three machines out of the 10 that have been ordered. One has been shipped. That’s something that you already mentioned in Q2 result that we intended to ship in October. It has been done by the end of October, beginning of November. We expect to receive the payment on this machine in December, conformed to the terms we have in the contract. The second and the third machines will be shipped next year in the course normally of Q2 for one, end of Q2, beginning of Q3 for the third one.

In terms of payments related to all these machines, you may remember that we mentioned that the working capital impact linked to the delay was close to $30 million, and it’s approximately one-third, one-third, one-third by machine, let’s say.

Do you mean that about the seven, the remain, you’re talking about the remaining seven or?

No, that was on the first three that we already manufactured. On the remaining seven, we will change a little bit the way we manufacture them. Instead of starting to manufacture as soon as we can to be ready to ship from the moment that the customer is ready with the building of the hospitals, we will wait before doing the manufacturing. We will wait to have strong signals that the building will be ready at the moment that we can ship the machine. There might still be some kind of delay at a certain point of the time, and we want to remain a little bit flexible in the interest, of course, of the patient.

The general principle is that we will not start building the machine as long as we don’t have very strong signals that the hospital can accommodate the equipment to avoid this strong working capital impact that we had on the first three machines.

Is it fair to say then that the remaining seven will be for beyond 2026?

It will be spread over the entire term of the contract. Indeed, it’s fair to say that the shipment of the remaining seven will be after 2026, yes.

Thank you. Last question from my side is on the PT, the Proton Therapy Services. A bit a question of how you’ve been monitoring, I would say, more the credit risk aspect of your customer. My question is also a bit related to the recent controversy in the Netherlands that some centers will be underutilized and one was facing more acute financial difficulties. If you can comment on this, it’s a bit two different topics, but I think they’re related.

Yeah. Maybe on the credit risk linked to the customers, that’s of course something that we monitor at the moment that the contracts are closed. We do a number of analyses on the solvability of the customers, the ability to pay for the equipment on the one hand, and then later for the services that the hospital intends to provide. Of course, during the course of the year, and depending on the evolution of the revenues of the hospital, we might see some volatility compared to the first credit assessments that we did. We manage together with the customer in a relatively proactive way, and we try always to find solutions that could benefit all the parties, in the best interest of all the stakeholders. That’s on the credit, let’s say, question.

On the fact that some hospitals do not necessarily, let’s say, fully book the availability of the rooms in which PT equipment are installed. It is true that sometimes it can take a little bit more time. It is a little bit longer for a hospital to book the room. Of course, it is in the best interest of everyone to try to maximize the use of the room. That is something in which we can possibly advise hospitals what they can do, how long it takes to treat one patient, or it can, let’s say, or the installation can use at its maximal capacity. At the end, of course, it is something that hospitals have to implement. I think in some cases, we see indeed hospitals not having a full use of the capacity. In other cases, we see hospitals having a very high use.

I think that the maximum which has been reached until now is 64 patients being treated over one day. You see it’s very much depending on one hospital to another.

Any comment on the Netherlands? You prefer not to.

What is you mean on the study which was published on the Proton Therapy?

Not the study, but that one center was, well, I’m just quoting the article. I don’t know if it’s correct, but that one center was particularly in a difficult financial situation.

I must admit that I didn’t see the article, honestly. I can’t comment because it’s a specific question, but I would be happy if you can send to the team the link to the article, and we will come back to you if there is any specific comments to be provided.

Yep. No problem.

Thank you.

Thank you. Thank you.

Thomas Pevenage, Investor Relations, IBA: David, thank you for your questions. We have further questions from Laura, if you want to unmute, Laura.

Yes. Good afternoon, everyone. Thank you for taking my questions. I have three. First of all, could you comment on backlog conversion for H2? Because it was very strong in H1, I was wondering how did it look like in Q3 and what can we expect for the remainder of the year? You mentioned in dosimetry that you were facing some headwinds. I was wondering to what extent this would impact the full year performance of that division. The last one on CGN, do you have any update from them? Do you expect any until the end of the year? That’s it. Thank you.

Okay. Thank you, Laura. I will address the first question, and then Catherine and Henri will address the other two. The first question relates to backlog conversion over H2. Indeed, we’re very active H1, and we are increasing the pace in H2. Definitely in so far as it will be visible in the numbers. This being said, it will be less imbalanced as last year in terms of H1 versus H2 weighting. Yeah, we’re definitely on the right trajectory to reach ultimately the targets that we have reconfirmed as part of our press release today.

Henri de Romrée, Co-CEO, IBA: Okay. Okay. If you do not have any further questions on the backlog, I will continue on Dosi. Like I was indeed mentioning, we face some kind of headwinds and that is mainly due to, let’s say, competition that we see coming with some product that we do not have yet. In order to come back to the level that we internally anticipated, we might have to do limited acquisitions. That is the reason why we started with one Phantomics, but we might have to do a few and very limited orders. On your question whether we expect an impact, I understood on the guidance that we have provided, the answer is clearly no. It is, let’s say, headwinds compared to internal targets that we had.

All in all, and having in mind all the segments in which we operate and all the activities we have, we don’t expect any impact on the guidance that we communicated to the market.

Very clear.

Thomas Pevenage, Investor Relations, IBA: Laura, could you specify your question on CGM? I’m not sure I see an immediate answer, so it would be great if you could spell it out again.

Yeah. I was just wondering if you had any update from them, any contracts, if you see any activity from their side.

Nothing outstanding, Laura. I think there are a few public tenders for the moment in the Chinese market where we are active. There is nothing meaningful to mention at this stage. Yeah, nothing really different compared to what we have said so far.

Yeah. Indeed. Lastly, we confirm that they are as part of the partnership agreement. So they have basically executed the technology transfer part, and they have the facility, the factory for local manufacturing that is ready to go. No, the main area of focus is really on the market development and getting the sales converted.

Okay. Very clear. Thank you.

Henri de Romrée, Co-CEO, IBA: No question anymore?

At this stage, we don’t see any further open questions. We have, I would say, last chance slot for anyone willing to share the question. In the meantime, we can already tell you that the presentation will be available on our website, the same link shortly after this call. Anyone want to share?

I think if there are no more questions, we would like to thank you again for your attendance to this call. It was a pleasure for us to have the opportunity to answer your questions. We wish you a good evening/afternoon/end of morning. Have a good day. That might be simpler. Thank you very much for.

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