Materialise N.V. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Medical: Achieved double-digit growth, acquired FEops for cardiac simulation, released new versions of planners with clinical evidence showing time savings in procedures, and progress in existing markets like trauma with new Mimics Enlight CMF planner.
• Software: Continued progress on CO-AM ecosystem, launched Magics SDKs and next-generation build processors, and introduced low-code enabling technology on CO-AM to make SDKs more accessible.
• Manufacturing: Invested in large/high-complexity parts, made progress in defense sector, leveraging additive manufacturing for defense industry benefits such as rapid and sustainable production.

Segment Performance

• Medical: Posted an all-time revenue record of EUR 33.3 million in Q3 2025, growing over 10% compared to Q3 2024, contributing 50% of total revenue. Year-to-date, revenue was EUR 97.2 million, up 15%, with adjusted EBITDA of EUR 30 million (31% margin).
• Software: Revenue decreased by 7% to EUR 10.3 million in Q3 2025, contributing 16% of total revenue. Year-to-date, revenue was EUR 30 million, with adjusted EBITDA of EUR 3.8 million.
• Manufacturing: Revenue declined by 17% to EUR 22.7 million in Q3 2025, contributing 34% of total revenue. Year-to-date, revenue was EUR 70.3 million, with adjusted EBITDA negative EUR 2 million.

Guidance

• Maintained full-year 2025 guidance with revenues in the range of EUR 265 million to EUR 280 million and adjusted EBIT in the range of EUR 6 million to EUR 10 million.

Risks

• General market uncertainties, competitive dynamics, and macroeconomic headwinds impacting Software and Manufacturing segments.

Question and Answer Q: Could you rank order Medical segments and discuss growth potential of cardiac and other new markets?

A: Existing markets like CMF and orthopedics are more mature, new markets like cardiac and respiratory are smaller but expected to grow faster. The majority of revenue comes from existing markets, but new markets show potential.

Q: How big is aerospace and defense as a percentage of revenue in Manufacturing, and details on materials?

A: Aerospace is a focus segment with polymer applications in interiors and tooling. Defense involves a combination of polymer and metal, with examples like Airbus qualification in polymer.

Q: Thoughts on Manufacturing profitability and recovery drivers?

A: Cost reduction measures implemented, but recovery relies on European industrial market recovery and automotive industry recovery to boost revenue.