3D Printing Financials: Materialise Stays Profitable in Q2 Thanks to Medical Division - 3DPrint.com | Additive Manufacturing Business

The second quarter of 2025 was a balancing act for Materialise (Nasdaq: MTLS), with strong momentum in its medical segment and slower performance across other parts of the business.Like much of the manufacturing sector, the company faced ongoing economic and geopolitical challenges, but it stayed profitable thanks to that strength in healthcare and tighter cost controls.Revenue dipped, but profit margins improved.

Despite tough conditions, the company remains confident in its long-term strategy.Total revenue fell 5.8% year-over-year to €64.8 million, primarily due to weak results in the manufacturing and software divisions.Still, the company posted a net profit of €200,000, down from €3.9 million the year before, but it still stood out, even with currency-related setbacks.

Gross margin improved to 58.3%, and adjusted EBIT rose to €3.1 million, which is nearly five times higher than in Q1 2025.Materialise ended the quarter with a net cash position of €63 million.“In the 35 years, we have grown into a leading, profitable, cash flow positive company in this sector, and we keep pushing the boundaries,” said CEO Brigitte de Vet-Veithen during an earnings call with investors on July 24, 2025.

“Despite revenue pressure, we were able to materially improve our operational profitability in Q2 2025 compared to prior periods through structural and targeted cost control.” Brigitte de Vet-Veithen from Materialise speaks at AMS 2025.Image courtesy of 3DPrint.com The company marked its 35th anniversary during the quarter, using the occasion to highlight its long-term commitment to personalized healthcare and additive innovation.“Our strategy is to grow in existing markets and new markets to reach more patients with our personalized solutions,” de Vet-Veithen added.

“This is what we call our mass personalization strategy.” A key example of this strategy was a new pilot collaboration with Johnson & Johnson’s surgical division in the Europe, Middle East, and Africa (EMEA) region.The partnership centers around Materialise’s Mimics thoracic planner, a software tool designed to help surgeons perform precise, lung-sparing surgeries for cancer patients.“This is a very new market,” de Vet-Veithen explained.

“We are building it from the ground up.So it’s the very start of a long journey, but I’m really convinced that this is a game changer.” Materialise also received clearance from the U.S.Food and Drug Administration (FDA) for a new feature in its knee surgery planner that lets surgeons customize implant placement based on each patient’s natural anatomy.

Traditionally, knee implants are aligned using a standardized straight axis, but this new option supports a growing trend toward more personalized procedures, explained the executive.It allows surgeons to mimic how a patient’s knee functioned before damage, taking into account cartilage wear and unique joint structure.The feature will be available in the U.S.

market starting in the third quarter of 2025.Materialise sees this as a very important step in one of its most mature medical applications.“Knee guides are among the most well-known 3D printed tools in healthcare.

With this innovation, surgeons now have the flexibility to choose between traditional alignment and a more personalized mode, which we believe will advance the field of knee surgery and help more patients,” de Vet-Veithen said.While the medical division stood out, other parts of the business struggled.The software segment was hit by delays in customer spending and a challenging U.S.

market.Manufacturing, in particular, took a significant hit, as demand in automotive remained weak and global uncertainty slowed industrial orders.Materialise creates liver digital twins.

Image courtesy of Materialise.Materialise also restructured parts of its manufacturing division, shutting down its metal prototyping operations to focus solely on metal series production.The move came after what the company described as “a thorough review of performance and long-term potential” across its manufacturing portfolio.

“As a response to revenue pressure, we took further steps to bring the cost of our manufacturing segment structurally down,” noted CFO Koen Berges during the earnings call.“In addition to strict cost control, we reviewed in depth the performance and potential of our Manufacturing portfolio.And as an outcome of this review, we decided to stop our metal prototyping operations and to focus exclusively on metal series production, which resulted in a nonrecurring severance cost that we adjusted in our quarterly numbers.” Part of the shift also included reclassifying certain assets from its manufacturing business as “held for sale,” though Berges noted these were “immaterial to our consolidated results of operation and our financial position.” Despite the cost-saving measures and a growing medical segment, the company lost money due to currency fluctuations.

Materialise lost over €3 million due to unfavorable currency movements, but still managed to report a net profit.Looking ahead, Materialise slightly lowered its revenue forecast for the rest of the year, now expecting between €265 and €280 million in total revenue for 2025.However, it kept its profitability target unchanged, with full-year adjusted EBIT still expected to land between €6 and €10 million.

“We remain convinced that the fundamentals of our business are solid and resilient,” pointed out de Vet-Veithen.“And we believe that further structural cost efficiencies will allow us to safeguard operational profitability.” Materialise CEO Brigitte de Vet-Veithen at Additive Manufacturing Strategies 2024.Image courtesy of 3DPrint.com.

In addition to refining its core business, Materialise is also stepping into new territory.The company officially announced plans to engage with the defense sector, citing “increasing global instability” and “the growing need for regional resilience in aerospace and security.” “We believe our expertise will be particularly relevant in enhancing regional defense capabilities across land, sea, and space,” said de Vet-Veithen.Materialise also expanded its software automation efforts, launching a collaboration with Synera to connect its Magics platform with AI-powered engineering workflows.

The goal is to help AM users reduce manual work and improve build success rates through automation.Even as the broader 3D printing market faces headwinds, Materialise remains focused on long-term value, with a strong balance sheet, a growing medical business, and efforts to cut costs.As de Vet-Veithen concluded, “In the 35 years, we have grown into a leading, profitable, cash flow positive company in this sector, and we keep pushing the boundaries.” Subscribe to Our Email Newsletter Stay up-to-date on all the latest news from the 3D printing industry and receive information and offers from third party vendors.

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