Materialise Announces Growth and Strategic Acquisition in Q2 2024

Materialise has reported impressive financial results for the second quarter of 2024, achieving a record revenue of €68.8 million, reflecting a 6% year-over-year increase. The company maintained a robust gross margin of 57% and recorded an adjusted EBIT of €3.9 million. The recent acquisition of FEops, a company that specializes in AI-driven simulation technology for heart interventions, aims to enhance Materialise’s medical segment.

Additionally, strategic partnerships, such as the one formed with nTop for the production of serial end-use parts, are expected to further strengthen Materialise’s position within the 3D printing industry.

Key Highlights:

• Materialise achieved record quarterly revenue of €68.8 million, up 6% compared to the previous year.
• The gross margin remained strong at 57%, with adjusted EBIT reaching €3.9 million.
• The acquisition of FEops is intended to expand the medical sector and support mass personalization.
• The partnership with nTop will facilitate the processing of complex design files for serial end-use parts production.
• Revenue for the first half of 2024 exceeded €132 million, marking a 1.3% increase from 2023.
• The full-year 2024 guidance projects consolidated revenue between €265 million and €275 million, with an adjusted EBIT expected in the range of €11 million to €14 million.

Company Outlook:
Materialise anticipates consolidated revenue for the full year of 2024 to be in the €265 million to €275 million range, with adjusted EBIT projected between €11 million and €14 million.

Challenges and Opportunities:

• The prototyping market is experiencing structural weaknesses that may have ongoing effects on results.
• The new facility, opening in September, will have a gradual impact as capacity increases.

Positive Trends:

• The medical segment reported a 13% increase in revenue, driven by strong sales of medical devices and services.
• Over 70% of revenue in the Materialise Software segment is now recurring, indicating a stable income stream.
• The Manufacturing segment grew by 2% largely due to ACTech and certified manufacturing efforts.

Concerns:
The medical segment’s EBITDA margins were adversely affected by an arbitration award in Q2 of 2023, and approximately €44 million in deferred revenue from software licenses and maintenance fees remains on the balance sheet.

Materialise’s second quarter of 2024 has been characterized by strategic advancements and continued financial growth. The company’s acquisition of FEops demonstrates its commitment to expanding within the medical sector and furthering mass personalization initiatives. The collaboration with nTop aims to eliminate existing barriers in the 3D printing industry, paving the way for the production of complex serial end-use parts. While challenges in the prototyping market persist, the overall performance and forward-looking strategies of Materialise position the company for ongoing success in the global markets.