Materialise Q2 Earnings Call Highlights

Materialise (NASDAQ:MTLS) reported second-quarter revenue growth of more than 8% year over year to €70.1 million, driven by double-digit expansion in its Medical segment and continued improvement in profitability.

The company raised its full-year adjusted EBIT outlook while maintaining its revenue guidance, despite the anticipated revenue effect of divesting its RapidFit and Eyewear businesses.

Chief Executive Officer Brigitte de Vet said the company’s first-half performance supported its confidence in its 2026 plan. Materialise now expects full-year adjusted EBIT of €12 million to €14 million, up from its prior forecast of €10 million to €12 million. It reaffirmed revenue guidance of €273 million to €283 million.

Second-Quarter Financial Results Second-quarter gross profit rose to €39.8 million, producing a gross margin of 56.8%. Adjusted EBITDA increased nearly 16% from a year earlier to €9.6 million, or 13.7% of revenue. Adjusted EBIT reached €3.9 million, compared with €3.1 million in the prior-year quarter, and the adjusted EBIT margin expanded to 5.5%. Net profit totaled €3.3 million, or €0.06 per share. For the first half, net profit was €5.1 million, or €0.09 per share, while revenue increased nearly 4% to €136.3 million. First-half adjusted EBITDA was €17.6 million and adjusted EBIT was €6.4 million.

Chief Financial Officer Koen Berges attributed the margin improvement to revenue growth, cost management, operational efficiencies and a sharper focus on core growth segments. Operating expenses increased 3.9% in the quarter, while research-and-development spending exceeded €12 million, up 11% year over year. Materialise said it continued to make targeted investments in new products and growth opportunities.

The company ended the quarter with €133.7 million in cash and €59.5 million in gross debt, resulting in net cash of €74.2 million, up €3.4 million from the beginning of the year. It spent €5.2 million during the first six months on share repurchases, acquiring nearly 1.1 million American depositary shares, or 1.8% of its share base as of June 30.

Medical Leads Growth as Software Revenue Declines Medical revenue increased more than 12% in the second quarter, with medical-device revenue up 19% across partner and direct-sales channels. Medical software revenue declined 4%. The Medical segment generated adjusted EBITDA of €11.6 million, representing a 31% margin.

De Vet told analysts that Medical’s sustainable structural growth rate should be in the low-double digits, or around 10%, though quarterly results can vary because of timing effects. She said softer medical-software revenue partly reflected reduced research grants at U.S. academic centers, which use Materialise software for training and research but do not typically purchase its device and service offerings. She also cited differing reimbursement conditions across the markets served by the company. Materialise’s software portfolio has historically been more concentrated in orthopedics, where reimbursement changes in the U.S. have contributed to more cautious customer spending, she said.

During the quarter, Materialise announced an investment in Belgian medtech startup Replasia, which develops personalized 3D-printed solutions and anatomical-analysis software for hip preservation. De Vet said the investment complements Materialise’s hip-replacement portfolio and broadens its position in personalized hip care as the market moves toward less invasive treatments.

Software Transition and Manufacturing Portfolio Changes Software revenue declined 3% to €9.6 million in the second quarter, as customers remained cautious and sales cycles lengthened in the industrial market. However, 86% of software revenue was recurring as the company neared the completion of its transition from perpetual licenses to a ...