The second quarter of 2025 was a balancing act for Materialise (Nasdaq: MTLS), with sturdy momentum in its medical section and slower efficiency throughout different elements of the enterprise. Like a lot of the manufacturing sector, the corporate confronted ongoing financial and geopolitical challenges, nevertheless it stayed worthwhile because of that power in healthcare and tighter value controls. Income dipped, however revenue margins improved. Regardless of powerful circumstances, the corporate stays assured in its long-term technique.
Complete income fell 5.8% year-over-year to €64.8 million, primarily on account of weak leads to the manufacturing and software program divisions. Nonetheless, the corporate posted a web revenue of €200,000, down from €3.9 million the yr earlier than, nevertheless it nonetheless stood out, even with currency-related setbacks. Gross margin improved to 58.3%, and adjusted EBIT rose to €3.1 million, which is almost 5 occasions increased than in Q1 2025. Materialise ended the quarter with a web money place of €63 million.
“Within the 35 years, now we have grown into a number one, worthwhile, money movement constructive firm on this sector, and we hold pushing the boundaries,” stated CEO Brigitte de Vet-Veithen throughout an earnings name with buyers on July 24, 2025. “Regardless of income strain, we have been capable of materially enhance our operational profitability in Q2 2025 in comparison with prior intervals via structural and focused value management.”
Brigitte de Vet-Veithen from Materialise speaks at AMS 2025. Picture courtesy of 3DPrint.com
The corporate marked its thirty fifth anniversary in the course of the quarter, utilizing the event to focus on its long-term dedication to customized healthcare and additive innovation.
“Our technique is to develop in present markets and new markets to achieve extra sufferers with our customized options,” de Vet-Veithen added. “That is what we name our mass personalization technique.”
A key instance of this technique was a brand new pilot collaboration with Johnson & Johnson’s surgical division within the Europe, Center East, and Africa (EMEA) area. The partnership facilities round Materialise’s Mimics thoracic planner, a software program instrument designed to assist surgeons carry out exact, lung-sparing surgical procedures for most cancers sufferers.
“It is a very new market,” de Vet-Veithen defined. “We’re constructing it from the bottom up. So it’s the very begin of an extended journey, however I’m actually satisfied that this can be a recreation changer.”
Materialise additionally acquired clearance from the U.S. Meals and Drug Administration (FDA) for a brand new function in its knee surgical procedure planner that lets surgeons customise implant placement primarily based on every affected person’s pure anatomy. Historically, knee implants are aligned utilizing a standardized straight axis, however this new possibility helps a rising pattern towards extra customized procedures, defined the manager. It permits surgeons to imitate how a affected person’s knee functioned earlier than injury, making an allowance for cartilage put on and distinctive joint construction.
The function shall be accessible within the U.S. market beginning within the third quarter of 2025. Materialise sees this as an important step in one among its most mature medical functions.
“Knee guides are among the many most well-known 3D printed instruments in healthcare. With this innovation, surgeons now have the flexibleness to decide on between conventional alignment and a extra customized mode, which we imagine will advance the sphere of knee surgical procedure and assist extra sufferers,” de Vet-Veithen stated.
Whereas the medical division stood out, different elements of the enterprise struggled. The software program section was hit by delays in buyer spending and a difficult U.S. market. Manufacturing, particularly, took a big hit, as demand in automotive remained weak and international uncertainty slowed industrial orders.
Materialise creates liver digital twins. Picture courtesy of Materialise.
Materialise additionally restructured elements of its manufacturing division, shutting down its metallic prototyping operations to focus solely on metallic collection manufacturing. The transfer got here after what the corporate described as “a radical overview of efficiency and long-term potential” throughout its manufacturing portfolio.
“As a response to income strain, we took additional steps to convey the price of our manufacturing section structurally down,” famous CFO Koen Berges in the course of the earnings name. “Along with strict value management, we reviewed in depth the efficiency and potential of our Manufacturing portfolio. And as an consequence of this overview, we determined to cease our metallic prototyping operations and to focus completely on metallic collection manufacturing, which resulted in a nonrecurring severance value that we adjusted in our quarterly numbers.”
A part of the shift additionally included reclassifying sure property from its manufacturing enterprise as “held on the market,” although Berges famous these have been “immaterial to our consolidated outcomes of operation and our monetary place.”
Regardless of the cost-saving measures and a rising medical section, the corporate misplaced cash on account of foreign money fluctuations. Materialise misplaced over €3 million on account of unfavorable foreign money actions, however nonetheless managed to report a web revenue.
Trying forward, Materialise barely lowered its income forecast for the remainder of the yr, now anticipating between €265 and €280 million in complete income for 2025. Nonetheless, it saved its profitability goal unchanged, with full-year adjusted EBIT nonetheless anticipated to land between €6 and €10 million.
“We stay satisfied that the basics of our enterprise are stable and resilient,” identified de Vet-Veithen. “And we imagine that additional structural value efficiencies will permit us to safeguard operational profitability.”
Materialise CEO Brigitte de Vet-Veithen at Additive Manufacturing Methods 2024. Picture courtesy of 3DPrint.com.
Along with refining its core enterprise, Materialise can also be entering into new territory. The corporate formally introduced plans to have interaction with the protection sector, citing “rising international instability” and “the rising want for regional resilience in aerospace and safety.”
“We imagine our experience shall be significantly related in enhancing regional protection capabilities throughout land, sea, and area,” stated de Vet-Veithen.
Materialise additionally expanded its software program automation efforts, launching a collaboration with Synera to attach its Magics platform with AI-powered engineering workflows. The aim is to assist AM customers cut back handbook work and enhance construct success charges via automation.
Even because the broader 3D printing market faces headwinds, Materialise stays centered on long-term worth, with a powerful stability sheet, a rising medical enterprise, and efforts to chop prices.
As de Vet-Veithen concluded, “Within the 35 years, now we have grown into a number one, worthwhile, money movement constructive firm on this sector, and we hold pushing the boundaries.”
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