Materialise NV Q3 FY2026 earnings call

• Medical Segment Momentum: Accelerated adoption of personalized solutions across clinical fields. Key initiatives include a partnership with the Superhuman Center in Ukraine for cranio-maxillofacial reconstruction, new sterile packaging products for CMS segments, AI-powered workflows for cardiac interventions, and expanded thoracic surgery planning tools.
• Software Platform Expansion: Strong commercial momentum for the CoEM platform, particularly in aerospace. Strategic deals closed for CoEM NPI. Enhanced security via integration of 'CoEM bricks' for part-level traceability. Active advocacy at Formnext for open ecosystem frameworks.
• Manufacturing Growth: Series production revenues grew over 30% year-over-year, driven by aerospace, semiconductor, and defense demand. Investments made in metal additive manufacturing capabilities for larger components. Continued strong adoption of the FITS Dynaprint orthotics solution, with volumes tripling in North America following launch.
• Financial Discipline: Maintained tight cost control while increasing R&D investments. Delivered positive net profit and robust cash generation, strengthening the net cash position to €82.5 million.

The Medical segment generated €36.7 million in revenue, representing 54% of total consolidated revenue, with growth of nearly 10% year-over-year. The Manufacturing segment contributed €21.3 million (31% of total revenue), showing a 6% decline year-over-year, though organic growth was 1.5% excluding divestitures. The Software segment accounted for €9.9 million (15% of total revenue), declining by over 4% due to cautious customer spending and extended sales cycles.

• Reconfirmed full-year 2026 revenue guidance of €273 million to €283 million, fully absorbing the negative impact of recent divestitures (Fit and Eyewear).
• Reaffirmed full-year adjusted EBIT guidance of €12 million to €14 million, a range previously raised in August.
• Management expressed confidence in delivering on these targets through continued execution, cost discipline, and strategic R&D investments.

• Software Market Pressure: Challenging industrial spending environment and extended sales cycles impacting software revenue growth.
• Competitive Dynamics: Potential competitive pressures in the software space as production applications increase.
• Operational Costs: Increased R&D spending and one-time operational costs offsetting higher gross profits in the short term.

Q: Analyst asked about the breakdown of serial production vs. prototyping in manufacturing and key drivers behind the 30% growth in series production.

A: Management declined to disclose exact splits but noted the business is reaching a balanced state between serial production and prototyping. Growth is primarily driven by aerospace, defense, and semiconductors, with significant contributions from the broader transportation sector involving large equipment and boats.