Summary of Materialise NV Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: Consolidated revenue grew by over 8% year-on-year to EUR 70.1 million.

Gross Profit: Increased to EUR 39.8 million, with a gross margin of 56.8%.

Adjusted EBIT: Reached EUR 3.9 million, resulting in a margin of 5.5%, reflecting improved operating leverage.

Net Profit: Stood at EUR 3.3 million (EUR 0.06 per share).

Cash Position: Net cash increased to EUR 74.2 million, up EUR 3.4 million year-to-date, supported by strong operating cash flow.

Share Buyback: EUR 5.2 million invested in share buybacks during the first half of 2026.

2Strategic Updates and Business Highlights

Leadership Changes: New appointments include Annelies Missotten as Chief Human Resource Officer and Philippe Verlinde as Chief Digital and Information Officer to enhance HR and digital capabilities.

Medical Segment Growth: Medical revenue grew by over 12%, driven by a 19% increase in Medical Devices, while Medical Software saw a decline of 4%.

Software Launches: Successful early launch of CO-AM Pro and ongoing early adopter programs for CO-AM NPI and CO-AM Enterprise, aimed at enhancing software offerings and driving future growth.

Manufacturing Focus: Completed divestments of RapidFit and Eyewear businesses to sharpen focus on core growth areas, particularly Aerospace and Defense, which saw 40% revenue growth.

3Forward Guidance and Outlook

Full Year 2026 Guidance: Revenue expected between EUR 273 million to EUR 283 million, with an increased adjusted EBIT guidance of EUR 12 million to EUR 14 million, up from EUR 10 million to EUR 12 million.

Sustainable Growth: Management expects the Medical segment to maintain a sustainable growth rate around 10% for the remainder of 2026.

4Bad News, Challenges, or Points of Concern

Software Segment Decline: Software revenue decreased by 3%, attributed to cautious customer spending and extended sales cycles, particularly in the academic sector due to reduced research grants.

Seasonality in Earnings: Anticipated softer performance in Q3, with a stronger Q4 expected, which may impact the consistency of revenue growth.

Deferred Revenue: A decrease in deferred revenue balance for software maintenance and licenses, which may indicate potential future revenue challenges.

5Notable Q&A Insights

Medical Segment Dynamics: The growth in Medical Devices and decline in Medical Software were discussed, with management noting that reduced research funding in the U.S. has impacted software sales.

EBIT Guidance Clarification: Management indicated that while the first half showed strong profitability, seasonality and historical budget cycles suggest a cautious approach to Q4 expectations.

Future Software Growth: The CO-AM offerings are positioned as key growth drivers, particularly in sectors like Aerospace and Defense, where companies are looking to scale their additive manufacturing capabilities. This summary encapsulates the key takeaways from Materialise's Q2 2026 earnings call, highlighting financial performance, strategic initiatives, guidance, and areas of concern.