Materialise’s second quarter was marked by resilience in its Medical division and indicators of margin self-discipline, but the corporate’s backside line was practically worn out by forex volatility and weakening industrial demand.
On a name with buyers, CFO Koen Berges highlighted €20M drawn from a €50M mortgage facility, as a part of a beforehand agreed staged launch. Koen confirmed the intent is CapEx or M&A, quite than a liquidity want, with the remaining €30M to be drawn by mid-2026. Materialise has firepower for strategic strikes, however no acquisitions have been introduced but. Capital is being positioned, not deployed, as Berges acknowledged the intent is “to place that money to work, to not put it in our checking account.”
The newest monetary outcomes present that internet revenue collapsed to simply €0.2 million down from €3.9 million in the identical interval final yr, as a €3.3 million international change loss offset operational beneficial properties. Income declined 5.8% year-on-year to €64.8 million, with softness in Software program and a steep contraction in Manufacturing flattening the highest line.
Materialise Monetary Outcomes by Section
What stands out is the accelerating divergence between the corporate’s segments. Medical continued its run of double-digit development, rising 16.7% year-on-year to €32.9 million. Its profitability additionally improved, with adjusted EBITDA growing to €10.7 million and margins increasing to 32.7%. The division benefited from sturdy demand in orthopedics, the place Materialise launched a brand new FDA-cleared private alignment function for knee surgical procedures, and from the preliminary rollout of its thoracic planning device, developed in collaboration with Johnson & Johnson.
CEO Brigitte de Vet-Veithen acknowledged, “Surgeons utilizing our Mimics Thoracic Planner have reported that the software program has actively helped them higher perceive every affected person’s distinctive anatomy and plan surgical procedures with precision.” Though income from the J&J partnership just isn’t anticipated in 2025, this early suggestions from clinicians suggests potential for longer-term adoption.
Listening to the investor name, it’s obvious that Medical is more and more central not simply in income, but additionally in investor messaging. Administration makes use of it to anchor the corporate’s narrative amid volatility elsewhere
Manufacturing, in contrast, stays below stress. Income fell practically 25% in comparison with Q2 2024, with the section reporting a unfavorable adjusted EBITDA of €0.8 million. Administration attributed the decline to the choice to exit the steel prototyping enterprise, a part of a wider restructuring aimed toward specializing in steel collection manufacturing. Regardless of value controls, semi-fixed prices restricted margin restoration, and the broader industrial setting (characterised by delayed buying selections and cautious capital spending) stays a headwind.
Manufacturing is being reshaped, not scaled. Materialise is shrinking to power right here, specializing in high-mix, strategic clients quite than common prototyping.
Software program posted a extra modest decline, with income down 12.1% year-on-year. Nonetheless, the division confirmed indicators of strategic progress. Recurring income now accounts for 84% of Software program gross sales, up from 80% in Q1, as the corporate continues its transition towards subscription-based licensing. EBITDA margin improved to 13.9%, and the partnership with Synera to embed Materialise’s Magics SDK into an AI-driven design platform highlights efforts to entrench the model inside digital manufacturing workflows.
Materialise Full 12 months Income Steering
Regardless of the top-line softness, gross margin improved to 58.3%, up 130 foundation factors from a yr earlier, largely as a result of rising share of high-margin Medical income and manufacturing value optimizations. Working revenue got here in at €2.7 million, down 28% year-on-year however sharply improved from the prior quarter’s €0.6 million. Administration reaffirmed its full-year adjusted EBIT steerage of €6-10 million, citing continued value self-discipline and momentum within the Medical division.
The corporate revised its full-year income steerage downward, now projecting €265–280 million, from the earlier €270–285 million vary. The adjustment displays persistent uncertainty round industrial demand and forex pressures, significantly from a weakening U.S. greenback, which has turn out to be a fabric drag on reported income. “Clients worldwide are delaying funding selections to be able to get larger readability round tariffs and rates of interest,” stated de Vet-Veithen.
Materialise stays in a robust monetary place, with €117 million in money and a internet money place of €63 million. As talked about, the corporate drew €20 million from a €50 million credit score facility to organize for focused capital expenditures (CapEx) or acquisition alternatives within the coming yr.
Whereas Materialise has lengthy been a pioneer in medical 3D printing, Q2 2025 highlights a shift in posture, from balanced platform firm to 1 more and more anchored in healthcare. The earnings name bolstered its strategic id as a healthcare-centric, software-embedded AM firm, navigating a rocky industrial panorama. The corporate’s future should embody industrial development, however will probably be mediated by medical-led credibility, money circulation, and innovation cycles.
The second half of the yr will take a look at whether or not that anchor can maintain amidst exterior shocks, and whether or not the Software program and Manufacturing segments can regain their strategic weight.
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Featured picture reveals utilizing Materialise’s Mimics software program in augmented actuality (AR). Photograph through Materialise.
