Materialise’s second quarter was marked by resilience in its Medical division and signs of margin discipline, yet the company’s bottom line was nearly wiped out by currency volatility and weakening industrial demand.
On a call with investors, CFO Koen Berges highlighted €20M drawn from a €50M loan facility, as part of a previously agreed staged release. Koen confirmed the intent is CapEx or M&A, rather than a liquidity need, with the remaining €30M to be drawn by mid-2026. Materialise has firepower for strategic moves, but no acquisitions have been announced yet. Capital is being positioned, not deployed, as Berges stated the intent is “to put that cash to work, not to put it in our bank account.”
The most recent financial results show that net profit collapsed to just €0.2 million down from €3.9 million in the same period last year, as a €3.3 million foreign exchange loss offset operational gains. Revenue declined 5.8% year-on-year to €64.8 million, with softness in Software and a steep contraction in Manufacturing pulling down the top line.
Materialise Financial Results by Segment
What stands out is the accelerating divergence between the company’s segments. Medical continued its run of double-digit growth, rising 16.7% year-on-year to €32.9 million. Its profitability also improved, with adjusted EBITDA increasing to €10.7 million and margins expanding to 32.7%. The division benefited from strong demand in orthopedics, where Materialise introduced a new FDA-cleared personal alignment feature for knee surgeries, and from the initial rollout of its thoracic planning tool, developed in collaboration with Johnson & Johnson.
CEO Brigitte de Vet-Veithen stated, “Surgeons using our Mimics Thoracic Planner have reported that the software has actively helped them better understand each patient’s unique anatomy and plan surgeries with precision.” Although revenue from the J&J partnership is not expected in 2025, this early feedback from clinicians suggests potential for longer-term adoption.
Listening to the investor call, it is apparent that Medical is increasingly central not just in revenue, but also in investor messaging. Management uses it to anchor the company’s narrative amid volatility elsewhere
Manufacturing, by contrast, remains under pressure. Revenue fell nearly 25% compared to Q2 2024, with the segment reporting a negative adjusted EBITDA of €0.8 million. Management attributed the decline to the decision to exit the metal prototyping business, part of a wider restructuring aimed at focusing on metal series production. Despite cost controls, semi-fixed costs limited margin recovery, and the broader industrial environment (characterized by delayed purchasing decisions and cautious capital spending) remains a headwind.
Manufacturing is being reshaped, not scaled. Materialise is shrinking to strength here, focusing on high-mix, strategic customers rather than general prototyping.
Software posted a more modest decline, with revenue down 12.1% year-on-year. However, the division showed signs of strategic progress. Recurring revenue now accounts for 84% of Software sales, up from 80% in Q1, as the company continues its transition toward subscription-based licensing. EBITDA margin improved to 13.9%, and the partnership with Synera to embed Materialise’s Magics SDK into an AI-driven design platform highlights efforts to entrench the brand within digital manufacturing workflows.
Materialise Full Year Revenue Guidance
Despite the top-line softness, gross margin improved to 58.3%, up 130 basis points from a year earlier, largely due to the growing share of high-margin Medical revenue and production cost optimizations. Operating profit came in at €2.7 million, down 28% year-on-year but sharply improved from the prior quarter’s €0.6 million. Management reaffirmed its full-year adjusted EBIT guidance of €6-10 million, citing continued cost discipline and momentum in the Medical division.
The company revised its full-year revenue guidance downward, now projecting €265–280 million, from the previous €270–285 million range. The adjustment reflects persistent uncertainty around industrial demand and currency pressures, particularly from a weakening U.S. dollar, which has become a material drag on reported revenue. “Customers worldwide are delaying investment decisions in order to get greater clarity around tariffs and interest rates,” said de Vet-Veithen.
Materialise remains in a strong financial position, with €117 million in cash and a net cash position of €63 million. As mentioned, the company drew €20 million from a €50 million credit facility to prepare for targeted capital expenditures (CapEx) or acquisition opportunities in the coming year.
While Materialise has long been a pioneer in medical 3D printing, Q2 2025 highlights a shift in posture, from balanced platform company to one increasingly anchored in healthcare. The earnings call reinforced its strategic identity as a healthcare-centric, software-embedded AM company, navigating a rocky industrial landscape. The company’s future may still include industrial growth, but it will be mediated by medical-led credibility, cash flow, and innovation cycles.
The second half of the year will test whether that anchor can hold amidst external shocks, and whether the Software and Manufacturing segments can regain their strategic weight.
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Featured image shows using Materialise’s Mimics software in augmented reality (AR). Photo via Materialise.
