Materialise (Euronext Brussels & Nasdaq: MTLS) is seeing continued growth in its medical 3D printing business and signs of a recovery in manufacturing, but that progress has not been enough to prevent a decline in profits.The Belgian company reported higher third-quarter revenue, driven by demand for its medical products and growing business in aerospace and defense.However, higher costs and weaker software sales hurt profits, although the company kept its financial forecast for the full year unchanged.
For the third quarter of 2026, Materialise reported revenue of €67.7 million ($75.6 million), up 2.1% from €66.3 million ($74 million) a year earlier.But the company recently sold two businesses, RapidFit and Eyewear, so their sales no longer contribute to its revenue.Excluding the sales of those businesses from last year’s results, revenue growth was stronger at 4.9%.
Meanwhile, net profit fell to €1.38 million ($1.5 million) from €1.85 million ($2 million), while adjusted EBITDA declined to €8.05 million ($9 million) from €8.43 million ($9.4 million).A closer look at the October 28 earnings report shows a different picture for each of Materialise’s three businesses.Medical continues to grow, Manufacturing is improving after a difficult period, and Software is still struggling.
Medical Continues to Lead, But at a Higher Cost Materialise Medical generated €36.5 million ($40.7 million) in third-quarter revenue, up 9.7% from €33.3 million ($37.2 million) a year earlier.The division now accounts for roughly 54% of the company’s total revenue, making it by far Materialise’s largest business.However, higher sales did not translate into higher earnings for the division.
Medical’s adjusted EBITDA slipped to €10 million ($11.2 million) from €10.2 million ($11.4 million), while its adjusted EBITDA margin fell from 30.6% to 27.4%.Materialise said higher R&D spending was one reason profits were lower.The company is investing in new medical products and future growth, but that spending is also hurting profits in the short term.
During an earnings call with investors, CEO Brigitte de Vet-Veithen told investors that “In medical, we see real momentum in the demand for personalized solutions in various clinical fields, and we have accelerated our investments to scale the adoption of personalization.” She pointed to several new developments during the quarter, including updated 3D surgical planning tools for reconstructive surgery, AI-powered planning for complex heart valve procedures, and expanded software for liver surgery.Materialise also announced a partnership with Ukraine’s Superhumans Center to provide personalized solutions for patients needing facial and jaw reconstruction.Brigitte de Vet-Veithen from Materialise speaks at AMS 2025.
Image courtesy of 3DPrint.com Manufacturing Shows Signs of Recovery Materialise Manufacturing is showing signs of improvement, despite a drop in revenue.Reported revenue fell to €21.3 million ($23.8 million) from €22.7 million ($25.3 million) a year earlier, down about 6.2%.However, after adjusting for the company’s recent divestitures, revenue actually increased 1.5%.
Materialise said growing demand from aerospace and defense customers helped improve its Manufacturing business.In fact, de Vet-Veithen told investors that, “In the third quarter, we continued to see strong momentum in core manufacturing, with revenues for series production growing by more than 30% year-over-year in the quarter, driven by demand from the aerospace, semiconductor, and defense industries.In the third quarter, we also invested in additional metal additive manufacturing capabilities in order to enable faster production of larger metal components, particularly for demanding defense applications.” Manufacturing also reduced its losses, with adjusted EBITDA improving to a loss of €257,000 ($286,842) from €845,000 ($943,121) a year earlier.
Although the division is still losing money, the smaller loss shows improving financial performance.3D printed titanium latch developed for Lufthansa Technik.Image courtesy of Materialise.
3D printed titanium latch developed for Lufthansa Technik.Image courtesy of Materialise.Software Remains Under Pressure Materialise Software was the weakest of the company’s three divisions in terms of revenue growth.
Q3 revenue declined roughly 4.1% to €9.9 million ($11 million) from €10.3 million ($11.5 million) a year earlier.Adjusted EBITDA fell to €1.46 million ($1.6 million) from €1.8 million ($2 million), while the division’s adjusted EBITDA margin dropped from 17.5% to 14.8%.During the earnings call, de Vet-Veithen explained that software sales are taking longer because Materialise is now focusing more on companies that use 3D printing for production rather than just prototyping.
These customers need more time to evaluate and buy the software, which is slowing sales.Higher Spending Weighs on Earnings Materialise’s gross profit rose to €39 million ($43.5 million) from €37.7 million ($42 million) a year earlier.However, the company also spent more on research, new products, and day-to-day operations.
Total operating expenses increased 7.8% to €38.8 million ($43.3 million), with research and development spending up nearly 12%.That higher spending hurt profits.Operating profit fell to €1.34 million ($1.5 million) from €2.52 million ($2.8 million) a year earlier, even as revenue grew.
Still, Materialise ended September with a strong cash position.The company had €82.5 million ($92 million) in net cash, up €11.7 million ($13 million) since the end of 2025, giving it room to continue investing in its businesses.Materialise U.S.
medical 3D printing facility.Image courtesy of Materialise.Meanwhile, Materialise maintained its financial guidance for the full year.
The company continues to expect revenue between €273 million ($304.7 million) and €283 million ($315.9 million).It also confirmed its adjusted EBIT forecast of €12 million ($13.4 million) to €14 million ($15.6 million), a range it raised in August.Looking ahead, Materialise plans to keep investing in its medical and manufacturing businesses while keeping costs under control.
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