Materialise Reports Second Quarter 2025 Results

Business Wire

4 days ago

LEUVEN, Belgium--(BUSINESS WIRE)--Materialise NV (NASDAQ:MTLS), a leading provider of additive manufacturing and medical software and of sophisticated 3D printing services, today announced its financial results for the second quarter ended June 30, 2025.
Highlights – Second Quarter 2025
Total consolidated revenue decreased 5.8% to 64,831 kEUR compared to the corresponding 2024 period; however at the same time our Materialise Medical segment showed a further 16.7% growth.
Gross profit as a percentage of revenue for the second quarter of 2025 increased to 58.3%, compared to 57.0% for the corresponding 2024 period.
Adjusted EBIT improved to 3,058 kEUR for the second quarter of 2025 from 646 kEUR for the first quarter of 2025, although it remained below the 3,872 kEUR of the corresponding 2024 period.
Net result for the second quarter remained positive at 199 kEUR, or 0.0 EUR per diluted share, despite a significant impact from unfavorable exchange rate fluctuations.
Driven by positive free cash flow during the first half of 2025, our reported net cash position increased by 2,025 kEUR to 63,045 kEUR compared to December 31, 2024.
CEO Brigitte de Vet-Veithen commented, 'Our Materialise Medical segment once again demonstrated its resilience, growing by almost 17% compared to the same period of 2024. At the same time increasing geo-political uncertainty and sustained macro-economic headwinds negatively impacted revenues in our Materialise Manufacturing and Materialise Software segments, and therefore also our consolidated revenue in the second quarter of 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. Unfavorable effects from exchange rate fluctuations significantly impacted our quarterly financials, but we nevertheless again reported a positive net result.'
Second Quarter 2025 Results
Total revenue for the second quarter of 2025 decreased 5.8% to 64,831 kEUR from 68,797 kEUR for the second quarter of 2024. Adjusted EBIT was 3,058 kEUR for the second quarter of 2025 compared to 3,872 kEUR for the 2024 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the second quarter of 2025 was 4.7%, compared to 5.6% for the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 was 8,288 kEUR compared to 9,188 kEUR for the 2024 period.
Revenue from our Materialise Medical segment increased 16.7% to 32,850 kEUR for the second quarter of 2025 compared to 28,141 kEUR for the same period in 2024. Segment Adjusted EBITDA amounted to 10,728 kEUR for the second quarter of 2025 compared to 8,199 kEUR, while the segment Adjusted EBITDA margin was 32.7% compared to 29.1% for the second quarter of 2024.
Revenue from our Materialise Software segment decreased 12.1% to 9,872 kEUR for the second quarter of 2025 from 11,226 kEUR for the same quarter last year. Segment Adjusted EBITDA remained stable at 1,373 kEUR from 1,374 kEUR, while the segment Adjusted EBITDA margin was 13.9% compared to 12.2% for the corresponding prior-year period, reflecting the impact of strict cost control.
Revenue from our Materialise Manufacturing segment decreased 24.9% to 22,109 kEUR for the second quarter of 2025 from 29,429 kEUR for the second quarter of 2024. Segment Adjusted EBITDA amounted to (807) kEUR compared to 2,416 kEUR for the same period in 2024, while the segment Adjusted EBITDA margin was (3.6)% compared to 8.2% for the second quarter of 2024.
Gross profit was 37,778 kEUR for the second quarter of 2025 compared to 39,227 kEUR for the same period last year, while gross profit as a percentage of revenue increased to 58.3% compared to 57.0% for the second quarter of 2024.
Research and development ('R&D'), sales and marketing ('S&M'), and general and administrative ('G&A') expenses decreased, in the aggregate, by 0.8% to 36,334 kEUR for the second quarter of 2025 from 36,631 kEUR for the second quarter of 2024.
Net other operating income was 1,286 kEUR compared to 1,205 kEUR for the second quarter of 2024.
Operating result amounted to 2,730 kEUR compared to 3,801 kEUR for the second quarter of 2024.
Net financial result was (3,052) kEUR compared to 1,033 kEUR for the second quarter of 2024, reflecting highly unfavorable effects from unrealized exchange rate fluctuations.
The second quarter of 2025 contained income tax benefits of 521 kEUR, compared to income tax expenses of (959) kEUR in the second quarter of 2024.
As a result of the above, net profit for the second quarter of 2025 was 199 kEUR, compared to 3,875 kEUR for the same period in 2024. Total comprehensive income for the second quarter of 2025, which includes exchange differences on translation of foreign operations, was 823 kEUR compared to 3,093 kEUR for the corresponding 2024 period.
At June 30, 2025, we report 116,712 kEUR cash and cash equivalents on our balance sheet compared to 102,304 kEUR at December 31, 2024. Gross debt amounted to 53,667 kEUR, compared to 41,284 kEUR at December 31, 2024. As a result, our reported net cash position was 63,045 kEUR, an increase of 2,025 kEUR compared to December 31, 2024.
Cash flow from operating activities for the second quarter of 2025 was (27) kEUR compared to 8,400 kEUR for the same period in 2024. Total cash out from capital expenditures for the second quarter of 2025 amounted to 4,729 kEUR.
Net shareholders' equity at June 30, 2025 was 249,488 kEUR compared to 248,578 kEUR at December 31, 2024.
2025 Guidance
Mrs. de Vet-Veithen concluded, 'As we move through 2025 we see a risk that geo-political volatility and macro-economic uncertainty intensify and also impact the business climate for the remainder of this year. Unfavorable foreign exchange fluctuations might also add to the pressure on our revenue line and reported net result. We therefore believe it is prudent to slightly reduce our revenue guidance for the full fiscal year to a range of 265,000 to 280,000 kEUR. We remain convinced though that the fundamentals of our business are solid and resilient and believe that further structural cost efficiencies will allow us to safeguard operational profitability. Despite the slightly lower revenue outlook we are therefore reconfirming our Adjusted EBIT guidance of 6,000 kEUR to 10,000 kEUR for fiscal year 2025 in line with our earlier communications in February and April of this year.'
Non-IFRS Measures
Materialise uses EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA as supplemental financial measures of its financial performance. EBIT is calculated as net profit plus income taxes, financial expenses (less financial income) and shares of profit or loss in a joint venture. EBITDA is calculated as net profit plus income taxes, financial expenses (less financial income), shares of profit or loss in a joint venture and depreciation and amortization. Adjusted EBIT and Adjusted EBITDA are determined by adding to EBIT and EBITDA, respectively (i) share-based compensation expenses, (ii) acquisition or divestiture-related expenses of business combinations, (iii) impairments and revaluation of fair value due to business combinations and (iv) costs incurred in relation to corporate initiatives, restructurings or reorganizations that are of a non-recurring nature. Management believes these non-IFRS measures to be important measures as they exclude the effects of items which primarily reflect the impact of financing decisions and, in the case of EBITDA and Adjusted EBITDA, long term investment, rather than the performance of the company's day-to-day operations. The company also uses segment Adjusted EBITDA to evaluate the performance of its three business segments. As compared to net profit, these measures are limited in that they do not reflect the cash requirements necessary to service interest or principal payments on the company's indebtedness and, in the case of EBITDA and Adjusted EBITDA, these measures are further limited in that they do not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the company's business, or the changes associated with impairments. Management evaluates such items through other financial measures such as financial expenses, capital expenditures and cash flow provided by operating activities. The company believes that these measurements are useful to measure a company's ability to grow or as a valuation measurement. The company's calculation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be considered as alternatives to net profit or any other performance measure derived in accordance with IFRS. The company's presentation of EBIT, EBITDA, Adjusted EBIT and Adjusted EBITDA should not be construed to imply that its future results will be unaffected by unusual or non-recurring items.
Exchange Rate
This document contains translations of certain euro amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from euros to U.S. dollars in this document were made at a rate of EUR 1.00 to USD 1.1720, the reference rate of the European Central Bank on June 30, 2025.
Conference Call and Webcast
Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the second quarter of 2025 on Thursday, July 24, 2025, at 8:30 a.m. ET/2:30 p.m. CET. Company participants on the call will include Brigitte de Vet-Veithen, Chief Executive Officer and Koen Berges, Chief Financial Officer. A question-and-answer session will follow management's remarks.
To access the call by phone, please click the link below at least 15 minutes prior to the scheduled start time and you will be provided with dial-in details. Participants can choose to dial in or receive a call to connect to Materialise's conference call.
The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed on the company's website at http://investors.materialise.com. The webcast of the conference call will be archived on the company's website for one year.
About Materialise
Materialise NV incorporates more than three decades of 3D printing experience into a range of software solutions and 3D printing services that empower sustainable 3D printing applications. Our open, secure, and innovative end-to-end solutions enable flexible industrial manufacturing and mass personalization in various industries — including healthcare, automotive, aerospace, eyewear, art and design, wearables, and consumer goods. Headquartered in Belgium and with branches worldwide, Materialise NV combines the largest group of software developers in the industry with one of the world's largest and most complete 3D printing facilities. For additional information, please visit: www.materialise.com.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our intentions, beliefs, assumptions, projections, outlook, analyses or current expectations, plans, objectives, strategies and prospects, both financial and business, including statements concerning, among other things, our estimates for the current fiscal year's revenue and Adjusted EBIT, our results of operations, cash needs, capital expenditures, expenses, financial condition, liquidity, prospects, growth and strategies (including how our business, results of operations and financial condition could be impacted by the current armed geopolitical conflicts around the world and governmental responses thereto, inflation, increased labor, energy and materials costs), policy changes resulting from the U.S. presidential administration, changes in tariffs and trade restrictions, and the trends and competition that may affect the markets, industry or us. Such statements are subject to known and unknown uncertainties and risks. When used in this press release, the words 'estimate,' 'expect,' 'anticipate,' 'project,' 'plan,' 'intend,' 'believe,' 'forecast,' 'will,' 'may,' 'could,' 'might,' 'aim,' 'should,' and variations of such words or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon the expectations of management under current assumptions at the time of this press release. These expectations, beliefs and projections are expressed in good faith and the company believes there is a reasonable basis for them. However, the company cannot offer any assurance that our expectations, beliefs and projections will actually be achieved. By their nature, forward-looking statements involve risks and uncertainties because they relate to events, competitive dynamics and industry change, and depend on economic circumstances that may or may not occur in the future or may occur on longer or shorter timelines than anticipated. We caution you that forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. All of the forward-looking statements are subject to risks and uncertainties that may cause the company's actual results to differ materially from our expectations, including risk factors described in the company's most recent annual report on Form 20-F filed with the U.S. Securities and Exchange Commission. There are a number of risks and uncertainties that could cause the company's actual results to differ materially from the forward-looking statements contained in this press release.
The company is providing this information as of the date of this press release and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless it has obligations under the federal securities laws to update and disclose material developments related to previously disclosed information.
Consolidated income statements (Unaudited)
for the three months ended
June 30, for the six months ended
June 30, In '000
2025
2025
2024
2025
2024 U.S.$ € € € € Revenue
75,982
64,831
68,797
131,210
132,434 Cost of Sales
(31,707)
(27,053)
(29,570)
(56,708)
(57,270) Gross Profit
44,276
37,778
39,227
74,502
75,164 Gross profit as % of revenue
58.3%
58.3%
57.0%
56.8%
56.8% Research and development expenses
(13,032)
(11,120)
(11,090)
(22,534)
(21,322) Sales and marketing expenses
(18,132)
(15,471)
(15,636)
(30,542)
(30,234) General and administrative expenses
(11,420)
(9,744)
(9,905)
(19,769)
(19,214) Net other operating income (expenses)
1,508
1,286
1,205
1,646
1,994 Operating (loss) profit
3,200
2,730
3,801
3,303
6,387 Financial expenses
(4,733)
(4,039)
(1,441)
(6,811)
(2,239) Financial income
1,157
987
2,474
2,884
4,783 (Loss) profit before taxes
(376)
(322)
4,834
(624)
8,930 Income Taxes
610
521
(959)
287
(1,469) Net (loss) profit for the period
234
199
3,875
(337)
7,461 Net (loss) profit attributable to: The owners of the parent
233
199
3,882
(336)
7,474 Non-controlling interest
-
-
(7)
(2)
(13) Earning per share attributable to owners of the parent Basic
0.00
0.00
0.07
(0.01)
0.13 Diluted
0.00
0.00
0.07
(0.01)
0.13 Weighted average basic shares outstanding
59,067
59,067
59,067
59,067
59,067 Weighted average diluted shares outstanding
59,067
59,067
59,067
59,067
59,077
Expand
Consolidated statements of comprehensive income (Unaudited)
for the three months ended
June 30, for the six months ended
June 30, In 000€
2025
2025
2024
2025
2024 U.S.$ € € € € Net profit (loss) for the period
234
199
3,875
(337)
7,461 Other comprehensive income Recycling Exchange difference on translation of foreign operations
731
624
(783)
1,129
(1,056) Non-recycling Fair value adjustments through OCI - Equity instruments
-
-
-
-
- Other comprehensive income (loss), net of taxes
731
624
(783)
1,129
(1,056) Total comprehensive income (loss) for the year, net of taxes
964
823
3,093
792
6,406 Total comprehensive income (loss) attributable to: The owners of the parent
958
817
3,100
785
6,419 Non-controlling interests
6
6
(7)
7
(14)
Expand
Consolidated statement of financial position (Unaudited)
As of
June 30, As of
December 31, In 000€
2025
2024 Assets Non-current assets Goodwill
43,249
43,391 Intangible assets
27,751
29,973 Property, plant & equipment
111,225
111,331 Right-of-Use assets
6,920
7,719 Deferred tax assets
3,761
3,523 Investments in convertible loans
4,118
3,994 Other non-current assets
5,707
5,893 Total non-current assets
202,729
205,823 Current assets Inventories
14,678
16,992 Trade receivables
49,564
53,052 Other current assets
16,197
18,166 Cash and cash equivalents
116,712
102,304 Assets held for sale
4,504
- Total current assets
201,656
190,513 Total assets
404,385
396,336
Expand
As of
June 30, As of
December 31, In 000€
2025
2024 Equity and liabilities Equity Share capital
4,487
4,487 Share premium
233,895
233,895 Retained earnings and other reserves
11,106
10,196 Equity attributable to the owners of the parent
249,488
248,578 Non-controlling interest
(78)
(86) Total equity
249,410
248,492 Non-current liabilities Loans & borrowings
38,388
23,175 Lease liabilities
4,641
5,112 Deferred tax liabilities
2,923
3,202 Deferred income
15,343
13,268 Other non-current liabilities
326
910 Total non-current liabilities
61,621
45,666 Current liabilities Loans & borrowings
8,151
10,383 Lease liabilities
2,487
2,614 Trade payables
20,091
23,348 Tax payables
560
1,432 Deferred income
45,070
45,998 Other current liabilities
16,049
18,403 Liabilities held for sale
944
- Total current liabilities
93,354
102,178 Total equity and liabilities
404,385
396,336
Expand
Consolidated statement of cash flows (Unaudited)
for the six months ended
June 30, In 000€
2025
2024 Operating activities Net (loss) profit for the period
(337)
7,461 Non-cash and operational adjustments
14,087
10,203 Depreciation of property plant & equipment
7,448
7,539 Amortization of intangible assets
3,210
3,204 Share-based payment expense
117
142 Loss (gain) on disposal of intangible assets and property, plant & equipment
(21)
(77) Government grants
(101)
- Movement in provisions
(366)
191 Movement reserve for bad debt and slow moving inventory
271
272 Financial income
(2,876)
(4,762) Financial expense
6,770
2,241 Impact of foreign currencies
(70)
(10) (Deferred) income taxes
(295)
1,462 Working capital adjustments
(4,684)
(574) Decrease (increase) in trade receivables and other receivables
2,093
3,134 Decrease (increase) in inventories and contracts in progress
(500)
(1,029) Increase (decrease) in deferred revenue
(264)
(1,768) Increase (decrease) in trade payables and other payables
(6,014)
(911) Income tax paid & Interest received
620
1,280 Net cash flow from operating activities
9,686
18,370
Expand
for the six months ended
June 30, In 000€
2025
2024 Investing activities Purchase of property, plant & equipment
(5,617)
(10,475) Purchase of intangible assets
(944)
(814) Proceeds from the sale of property, plant & equipment & intangible assets (net)
233
185 Capital government grants received
2,640
- Net cash flow used in investing activities
(3,688)
(11,104) Financing activities Proceeds from loans & borrowings
20,000
- Repayment of loans & borrowings
(6,860)
(6,841) Repayment of leases
(1,544)
(1,517) Capital increase
-
- Interest paid
(621)
(800) Other financial income (expense)
(1,300)
169 Net cash flow from (used in) financing activities
9,676
(8,989) Net increase/(decrease) of cash & cash equivalents
15,673
(1,723) Cash & Cash equivalents at the beginning of the year
102,304
127,573 Exchange rate differences on cash & cash equivalents
(913)
(358) Cash & cash equivalents at end of the period
117,064
125,492
Expand
Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)
for the three months ended
June 30, for the six months ended
June 30, In 000€
2025
2024
2025
2024 Net profit (loss) for the period
199
3,875
(337)
7,461 Income taxes
(521)
959
(287)
1,469 Financial expenses
4,039
1,441
6,811
2,239 Financial income
(987)
(2,474)
(2,884)
(4,783) Depreciation and amortization
5,230
5,316
10,731
10,754 EBITDA
7,960
9,117
14,034
17,141 Share-based compensation expense (1)
45
71
117
142 Restructuring and corporate initiatives (2)
283
-
283
- Adjusted EBITDA
8,288
9,188
14,434
17,283 (1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees. (2) Non-recurring costs related to corporate initiatives, restructurings or reorganizations.
Expand
Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT (Unaudited)
for the three months ended
June 30, for the six months ended
June 30, In 000€
2025
2024
2025
2024 Net profit (loss) for the period
199
3,875
(337)
7,461 Income taxes
(521)
959
(287)
1,469 Financial expenses
4,039
1,441
6,811
2,239 Financial income
(987)
(2,474)
(2,884)
(4,783) EBIT
2,730
3,801
3,303
6,387 Share-based compensation expense (1)
45
71
117
142 Restructuring and corporate initiatives (2)
283
-
283
- Adjusted EBIT
3,058
3,872
3,703
6,529 (1) Share-based compensation expense represents the cost of equity-settled and share-based payments to employees. (2) Non-recurring costs related to corporate initiatives, restructurings or reorganizations.
Expand
Segment P&L (Unaudited)
In 000€ Materialise
Medical Materialise
Software Materialise
Manufacturing Total
segments Unallocated
(1) Consolidated For the three months ended June 30, 2025 Revenues
32,850
9,872
22,109
64,831
(0)
64,831 Segment (adj) EBITDA
10,728
1,373
(807)
11,294
(3,005)
8,288 Segment (adj) EBITDA %
32.7%
13.9%
-3.6%
17.4%
12.8% For the three months ended June 30, 2024 Revenues
28,141
11,226
29,429
68,797
0
68,797 Segment (adj) EBITDA
8,199
1,374
2,416
11,990
(2,802)
9,188 Segment (adj) EBITDA %
29.1%
12.2%
8.2%
17.4%
13.4% In 000€ Materialise
Medical Materialise
Software Materialise
Manufacturing Total
segments Unallocated
(1) Consolidated For the six months ended June 30, 2025 Revenues
63,928
19,647
47,635
131,210
(0)
131,210 Segment (adj) EBITDA
19,775
1,971
(1,185)
20,561
(6,127)
14,434 Segment (adj) EBITDA %
30.9%
10.0%
-2.5%
15.7%
11.0% For the six months ended June 30, 2024 Revenues
54,324
21,665
56,445
132,434
0
132,434 Segment (adj) EBITDA
16,120
2,464
3,947
22,531
(5,248)
17,283 Segment (adj) EBITDA %
29.7%
11.4%
7.0%
17.0%
13.1%
Expand
(1) Unallocated segment adjusted EBITDA consists of corporate research and development and corporate other operating income (expense), and the added share-based compensation expenses, acquisition or divestiture-related expenses of business combinations, impairments and revaluation of fair value of business combinations and non-recurring costs related to corporate initiatives, restructurings and reorganizations that are included in Adjusted EBITDA and that are not allocated to the reporting segments.
Expand
Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)
for the three months ended
June 30, for the six months ended
June 30, In 000€
2025
2024
2025
2024 Net profit (loss) for the period
199
3,875
(337)
7,461 Income taxes
(521)
959
(287)
1,469 Financial cost
4,039
1,441
6,811
2,239 Financial income
(987)
(2,474)
(2,884)
(4,783) Operating (loss) profit
2,730
3,801
3,303
6,387 Depreciation and amortization
5,230
5,316
10,731
10,754 Corporate research and development
1,070
955
2,100
1,763 Corporate headquarter costs
2,895
2,601
5,747
5,083 Other operating income (expense)
(810)
(682)
(1,498)
(1,456) Segment restructuring and reorganization
178
-
178
- Segment adjusted EBITDA
11,294
11,990
20,561
22,531
Expand