MTLS — Materialise N.V.

Summary of Materialise NV Q1 2026 Earnings Call

1. Key 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.

2. Strategic 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.

3. Forward 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.

4. Bad 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.

5. Notable 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.