Summary of Materialise NV Q1 2026 Earnings Call

1Key Financial Results and Metrics

Revenue:: EUR 66.3 million, stable year-on-year despite foreign exchange headwinds.

Gross Profit:: EUR 37.9 million, with a gross margin of 57.2%, up from 55.3% the previous year.

Adjusted EBIT:: EUR 2.5 million, representing a 3.7% margin, improved from EUR 0.6 million in Q1 2025.

Net Profit:: EUR 1.8 million, or EUR 0.03 per share.

Free Cash Flow:: Positive, increasing net cash position to EUR 72.8 million, up by EUR 2 million from the start of the quarter.

Deferred Revenue:: Increased to EUR 61 million, with EUR 49 million from software maintenance and licenses.

2Strategic Updates and Business Highlights

Materialise divested its RapidFit and Eyewear businesses to their management teams, allowing these segments to operate independently and focus on their specific markets while Materialise retains minority stakes.

In the Medical segment, launched custom-made PEEK implants and OrthoView 3D Hip, enhancing offerings in cranio-maxillofacial and orthopedic markets.

Introduced CO-AM Professional for workflow automation in 3D printing, with early customer onboarding expected to grow.

Continued partnership with HP to integrate Magics Print software with HP’s MJF 1200 3D printer, targeting lower to mid-range market segments.

Achieved significant sustainability milestones, including a reduction of over 1,500 tons of CO2 emissions.

3Forward Guidance and Outlook

Maintained full-year revenue guidance for 2026 in the range of EUR 273 million to EUR 283 million.

Adjusted EBIT guidance remains at EUR 10 million to EUR 12 million, despite the impact of divestments.

Anticipates ongoing macroeconomic and geopolitical uncertainties but remains confident in the strength of underlying business fundamentals.

4Bad News, Challenges, or Points of Concern

Manufacturing Revenue:: Declined by 8% due to macroeconomic headwinds, particularly affecting prototyping demand.

Medical Segment Margins:: Margins decreased by 200 basis points to 28%, raising concerns about competitive pressures and foreign exchange impacts.

Geopolitical Uncertainty:: Expected to persist throughout 2026, particularly affecting the European market, especially in the automotive sector.

Funding Cuts:: Noted in the U.S. academic market, which could impact future revenue streams.

5Notable Q&A Insights

Market Dynamics:: The U.S. market shows recovery, while Europe remains soft, particularly in automotive. Aerospace and defense sectors are experiencing positive trends.

Medical Margins:: The decrease in margins was attributed to foreign exchange impacts and seasonal variations, with expectations for stability moving forward.

Manufacturing EBITDA:: Projected to turn positive in 2026, despite current challenges and the impact of divestments on top-line revenue. This summary encapsulates the key aspects of Materialise's Q1 2026 earnings call, highlighting both the positive developments and the challenges the company faces moving forward.