Materialise NV (MTLS) Q2 2025 Earnings Call Transcript

Total consolidated revenue EUR 64.8 million, a decrease of 5.8% year-over-year. The decline was due to intensified geopolitical and macroeconomic turbulence, as well as the unfavorable effect of a weaker U.S. dollar.

Gross profit margin 58.3%, an increase from 57% in Q2 2024. This improvement was attributed to changes in the revenue mix and optimization of direct production costs despite inflationary pressures.

Adjusted EBIT EUR 3.1 million, down from EUR 3.9 million in Q2 2024. The decrease was due to lower revenue, but targeted cost control measures helped mitigate the impact.

Net result Profit of EUR 0.2 million, despite being negatively impacted by large unfavorable effects from exchange rate fluctuations.

Free cash flow Positive for the first half of 2025, leading to a net cash position of EUR 63 million at the end of Q2, an increase of EUR 2 million compared to the beginning of the year.

Materialise Medical revenue Increased by almost 17% year-over-year, driven by 14% growth in Medical Software and 18% growth in Medical Devices sales. This was attributed to continued growth in direct and partner sales.

Materialise Software revenue Decreased by 12% year-over-year to EUR 9.9 million. The decline was due to the transition to a recurring revenue model, macroeconomic uncertainty, and unfavorable foreign exchange rates.

Materialise Manufacturing revenue Decreased by almost 25% year-over-year to EUR 22.1 million. The decline was driven by geopolitical uncertainty and macroeconomic headwinds, particularly in the Automotive segment.

Adjusted EBITDA for Materialise Medical EUR 10.7 million, with an increased adjusted EBITDA margin of 32.7%, reflecting strong revenue growth and planned R&D investments.

Adjusted EBITDA for Materialise Software EUR 1.4 million, representing a stable adjusted EBITDA margin of 14%, despite lower revenue due to effective cost management.

Adjusted EBITDA for Materialise Manufacturing Negative EUR 0.8 million, slightly below the result of the first quarter of 2025, but significantly improved from the last quarter of 2024. The improvement was due to cost control and a focus on strategic areas.

Gross profit EUR 37.8 million, representing a gross profit margin of 58.3%, up from 57% in Q2 2024. The increase was due to mix effects and production efficiencies.

Operating expenses Decreased by close to 1% year-over-year, with R&D expenses remaining flat and reductions in sales, marketing, and G&A expenses due to cost optimizations.

Net financial result Loss of EUR 3.1 million, including a significant negative impact from foreign exchange fluctuations of minus EUR 3.3 million.