Materialise Reports First Quarter 2025 Results

Published: 2025-04-24 06:32:03 ET MTLS

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 first quarter ended March 31, 2025.

Highlights – First Quarter 2025

CEO Brigitte de Vet-Veithen commented, “Amidst the current macro-economic and geo-political turbulence, we managed to grow our consolidated revenue by more than 4% in the first quarter of this year compared to the same period of 2024. At the same time, we significantly increased the deferred revenue carried on our balance sheet. Also in this quarter, our Materialise Medical segment continued to lead the way, with more than 18% revenue growth compared to the same period in 2024. Uncertain market conditions continued to weigh on our Materialise Manufacturing and Materialise Software segments, however. Although overall profitability in this year’s first quarter declined compared to the same period of 2024, we continue to realize operational efficiencies compared to the fourth quarter of 2024. At the same time, we further improved our net cash position while we continue to invest in sustainable growth, as detailed in our recently released 2024 Materialise Sustainability Report.”

First Quarter 2025 Results

Total revenue for the first quarter of 2025 increased 4.3% to 66,379 kEUR from 63,637 kEUR for the first quarter of 2024. Adjusted EBIT for the first quarter of 2025 was 646 kEUR compared to 2,656 kEUR for the 2024 period. The Adjusted EBIT margin (Adjusted EBIT divided by total revenue) for the first quarter of 2025 was 1.0%, compared to 4.2% for the first quarter of 2024. Adjusted EBITDA for the first quarter of 2025 was 6,147 kEUR compared to 8,094 kEUR for the 2024 period.

Revenue from our Materialise Medical segment increased 18.7% to 31,078 kEUR for the first quarter of 2025 compared to 26,183 kEUR for the same period in 2024. Segment Adjusted EBITDA increased 14.2% to 9,047 kEUR for the first quarter of 2025 compared to 7,921 kEUR, while the segment Adjusted EBITDA margin was 29.1% compared to 30.3% for the first quarter of 2024.

Revenue from our Materialise Software segment decreased 6.4% to 9,775 kEUR for the first quarter of 2025 from 10,438 kEUR for the same quarter last year. Segment Adjusted EBITDA decreased 45.1% to 599 kEUR from 1,090 kEUR, while the segment Adjusted EBITDA margin was 6.1%, compared to 10.4% for the prior-year period.

Revenue from our Materialise Manufacturing segment decreased 5.5% to 25,526 kEUR for the first quarter of 2025 from 27,016 kEUR for the first quarter of 2024. Segment Adjusted EBITDA decreased to (377) kEUR from 1,529 kEUR, while the segment Adjusted EBITDA margin was (1.5)%, compared to 5.7% for the first quarter of 2024.

Gross profit increased 2.2% to 36,724 kEUR compared to 35,935 kEUR for the same period last year, while gross profit as a percentage of revenue was 55.3% compared to 56.5% for the first quarter of 2024.

Research and development (“R&D”), sales and marketing (“S&M”) and general and administrative (“G&A”) expenses increased, in the aggregate, 6.9% to 36,510 kEUR for the first quarter of 2025 from 34,138 kEUR for the first quarter of 2024.

Net other operating income was 360 kEUR compared to 789 kEUR for the first quarter of 2024.

Operating result amounted to 574 kEUR compared to 2,585 kEUR for the first quarter of 2024.

Net financial result was (875) kEUR, compared to 1,510 kEUR for the first quarter of 2024, reflecting unfavorable effects from exchange rate fluctuations.

The first quarter of 2025 contained net tax expenses of (234) kEUR, compared to net tax expenses of (510) kEUR in the first quarter of 2024.

As a result of the above, net loss for the first quarter of 2025 was (535) kEUR, compared to a net profit of 3,585 kEUR for the same period in 2024. Total comprehensive loss for the first quarter of 2025, which includes exchange differences on translation of foreign operations, was (30) kEUR compared to 3,312 kEUR for the 2024 period.

At March 31, 2025, we had cash and cash equivalents of 104,180 kEUR compared to 102,304 kEUR at December 31, 2024. Gross debt amounted to 36,444 kEUR, compared to 41,284 kEUR at December 31, 2024. As a result, our net cash position increased by 6,716 kEUR to 67,736 kEUR.

Cash flow from operating activities for the first quarter of 2025 was 9,713 kEUR, compared to 9,970 kEUR for the same period in 2024. Total cash out from capital expenditures for the first quarter of 2025 amounted to 1,832 kEUR, resulting in a positive free cash flow.

Net shareholders’ equity at March 31, 2025 was 248,703 kEUR compared to 248,492 kEUR at December 31, 2024.

On April 2, 2025 Materialise released its 2024 Sustainability Report clearly outlining the initiatives we are taking to make a sustainable difference with additive manufacturing for a better and healthier world. The report is available on our corporate website or can be consulted directly through https://mtls.am/report.

2025 Guidance

Mrs. de Vet-Veithen concluded, “As already anticipated in our earlier guidance for the fiscal year 2025 issued in February, we expect uncertain macro-economic and geo-political conditions to impact the remainder of 2025 and in particular the second quarter, but we are convinced that the fundamentals of our business are solid and resilient. We therefore continue to expect to report consolidated revenue for the full fiscal year 2025 within the 270,000 to 285,000 kEUR range we communicated in February. We are also maintaining our Adjusted EBIT guidance of 6,000 kEUR to 10,000 kEUR for fiscal year 2025.”

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 share-based compensation expenses, acquisition-related expenses of business combinations, impairments and revaluation of fair value due to business combinations to EBIT and EBITDA, respectively. 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 1.0815, the reference rate of the European Central Bank on March 31, 2025.

Conference Call and Webcast

Materialise will hold a conference call and simultaneous webcast to discuss its financial results for the first quarter of 2025 on Thursday, April 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 incorporates over 30 years of 3D printing experience into a range of software solutions and 3D printing services, which form the backbone of the 3D printing industry. Materialise’s open and flexible solutions enable players in a wide variety of industries, including healthcare, automotive, aerospace, art and design, and consumer goods, to build innovative 3D printing applications that aim to make the world a better and healthier place. Headquartered in Belgium, with branches worldwide, Materialise combines one of the largest groups of software developers in the industry with one of the largest and most complete 3D printing facilities in the world. 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)

2025

2024

U.S.$

€

71,789

66,379

63,637

(32,071)

(29,654)

(27,702)

39,717

36,724

35,935

55.3%

56.5%

(12,345)

(11,414)

(10,231)

(16,299)

(15,071)

(14,598)

(10,842)

(10,025)

(9,309)

389

360

789

620

574

2,585

(2,998)

(2,772)

(798)

2,052

1,897

2,308

(326)

(301)

4,096

(253)

(234)

(510)

(579)

(535)

3,585

(577)

(533)

3,591

(2)

(6)

(0.01)

0.06

(0.01)

0.06

59,067

59,088

Consolidated statements of comprehensive income (Unaudited)

2025

2024

U.S.$

€

(579)

(535)

3,585

546

505

(273)

546

505

(273)

(33)

(30)

3,312

(34)

(32)

3,319

(6)

Consolidated statement of financial position (Unaudited)

As of March 31,

As of December 31,

2025

2024

43,372

43,391

28,772

29,973

110,906

111,331

7,337

7,719

3,407

3,523

4,055

3,994

6,274

5,893

204,123

205,823

16,148

16,992

49,571

53,052

16,432

18,166

104,180

102,304

186,331

190,513

390,454

396,336

As of March 31,

As of December 31,

2025

2024

4,487

233,895

10,405

10,197

248,787

248,578

(84)

(86)

248,703

248,492

19,450

23,175

4,970

5,112

2,982

3,202

14,653

13,268

832

910

42,887

45,666

9,502

10,383

2,522

2,614

21,303

23,348

787

1,432

46,435

45,998

18,315

18,403

98,864

102,178

390,454

396,336

Consolidated statement of cash flows (Unaudited)

for the three months ended March 31,

2025

2024

(535)

3,585

6,994

4,637

3,854

3,765

1,631

1,672

(132)

243

188

(1,834)

(2,309)

2,763

797

(2)

(5)

228

510

3,763

1,029

4,487

3,712

948

(10)

1,868

643

(3,539)

(3,315)

(509)

718

9,713

9,970

for the three months ended March 31,

2025

2024

(1,400)

(2,525)

(432)

(306)

206

(1,757)

(2,624)

(4,472)

(4,876)

(815)

(757)

(235)

(358)

(310)

(5)

(5,832)

(5,997)

2,123

1,348

102,304

127,573

(247)

(22)

104,180

128,899

Reconciliation of Net Profit (Loss) to EBITDA and Adjusted EBITDA (Unaudited)

for the three months ended March 31,

2025

2024

(535)

3,585

234

510

2,772

798

(1,897)

(2,308)

5,501

5,438

6,075

8,023

6,147

8,094

Reconciliation of Net Profit (Loss) to EBIT and Adjusted EBIT (Unaudited)

for the three months ended March 31,

2025

2024

(535)

3,585

234

510

2,772

798

(1,897)

(2,308)

574

2,585

646

2,656

Segment P&L (Unaudited)

Materialise Medical

Materialise Software

Materialise Manufacturing

Total segments

Unallocated (1)

Consolidated

31,078

9,775

25,526

66,379

9,047

599

(377)

9,269

(3,122)

6,147

29.1%

6.1%

-1.5%

14.0%

9.3%

26,183

10,438

27,016

63,637

7,921

1,090

1,529

10,540

(2,446)

8,094

30.3%

10.4%

5.7%

16.6%

12.7%

Reconciliation of Net Profit (Loss) to Segment adjusted EBITDA (Unaudited)

2025

2024

(535)

3,585

234

510

2,772

798

(1,897)

(2,308)

574

2,585

5,501

5,438

1,030

808

2,852

2,484

(688)

(776)

9,269

10,540

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