Materialise NASDAQ: MTLS reported first-quarter 2026 revenue of EUR 66.3 million, which Chief Financial Officer Koen Berges said was stable year-over-year despite “significant foreign exchange headwinds,” primarily tied to a weaker U.S. dollar. Gross profit rose to EUR 37.9 million and gross margin expanded to 57.2%, helping drive improved profitability and positive free cash flow during the period.
Portfolio moves: RapidFit and Eyewear to become independent
Chief Executive Officer Brigitte de Vet said the company made “decisive portfolio choices” intended to sharpen Materialise’s focus and allocate capital to core segments. She highlighted two transfers of businesses previously housed within the Manufacturing segment:
- RapidFit: On March 31, Materialise announced an agreement to transfer RapidFit to its management team. De Vet described RapidFit as a specialized provider of custom 3D-printed jigs, fixtures, and quality control solutions primarily for automotive customers. The business will continue under the RapidFit name and leadership.
- Eyewear: Materialise also reached an agreement to transfer its Eyewear business to its management team, allowing it to operate as an independent company. Materialise will retain a minority stake in the newly formed Eyewear company.
De Vet said all employees supporting these businesses will transition to the new companies and that financial terms will not be publicly disclosed. Berges added later that, while the divestments are “not material” on a consolidated basis, they will reduce reported revenue; management believes the company can “absorb that gap” and therefore maintained its guidance.
Medical segment updates: new CMF and orthopedic offerings
In Medical, de Vet pointed to two product launches. In February, Materialise expanded its cranio-maxillofacial (CMF) portfolio with custom-made PEEK implants. She said PEEK is often favored by surgeons because it is radiolucent, enabling clearer post-operative imaging compared to metal implants. The company previously offered titanium as its patient-specific option; with the new offering, surgeons can access PEEK “seamlessly” through the existing Materialise workflow. De Vet said the custom-made PEEK implants are now available across most European countries.
In orthopedics, de Vet said Materialise launched OrthoView 3D Hip, completing its templating and planning portfolio for hip surgery. She described it as an expansion beyond X-ray-based planning into CT-based planning, allowing surgeons to plan with a more detailed view of patient anatomy. De Vet also emphasized that the product combines OrthoView orthopedic know-how with Mimics segmentation and anatomical modeling capabilities.
Software strategy: CO-AM rollout and HP collaboration
On the Software side, de Vet reviewed the company’s CO-AM platform, including CO-AM Professional, CO-AM NPI, and CO-AM Enterprise, as well as CO-AM Brix, which she said is designed to automate recurring processes without requiring advanced programming skills.
During the quarter, Materialise ran an early access program with selected Magics customers for CO-AM Professional. De Vet said that at the start of the second quarter the company began a pre-sales program for Magics customers approaching renewal cycles, and that seven customers were actively onboarding CO-AM Pro in May. Full global availability is expected in mid-June. She described CO-AM Professional as cloud-based software intended to help teams manage day-to-day 3D printing operations, centralize data across sites, and run repeatable machine-agnostic operations.
De Vet also highlighted a collaboration with HP tied to HP’s MJF 1200 3D printer announced at RAPID + TCT. Materialise Magics Print for HP will be included with every machine, according to de Vet, providing build preparation tools such as nesting, part orientation, and build layout. She said the MJF 1200 targets the lower to mid-range market with a system price below EUR 60,000, and the full solution is expected to be available starting in early 2027.
Q1 financial performance: margin expansion and cash generation
Berges said Q1 adjusted EBIT was EUR 2.5 million (a 3.7% margin), up from EUR 0.6 million a year earlier, while net profit was EUR 1.8 million, or EUR 0.03 per share. Adjusted EBITDA increased to EUR 8.0 million, up more than 30% year-over-year, for a 12.1% margin.
By segment, Berges reported:
- Medical: Revenue grew 7% to EUR 33.2 million. Berges said medical devices revenue rose 11% supported by both direct and partner sales, while medical software declined 3% largely due to FX impacts because a significant portion is invoiced in U.S. dollars. On a constant-currency basis, he said Medical revenue grew 10%. Adjusted EBITDA was EUR 9.2 million, representing a 20% margin.
- Software: Revenue decreased 1% to EUR 9.6 million, which Berges attributed largely to FX; on a constant-currency basis, he said Software revenue increased 5%. The company continued shifting toward a cloud-based subscription model, with recurring revenue at 83% of software revenue versus 81% in the prior-year quarter. Adjusted EBITDA increased 88% to EUR 1.1 million.
- Manufacturing: Revenue declined 8% to EUR 23.5 million. Berges said revenue improved sequentially versus the prior three quarters, reflecting growth in “strategic focus areas” including aerospace, defense, and semiconductor, offset by continued weakness in prototyping demand. Adjusted EBITDA turned positive at EUR 0.3 million.
On the consolidated income statement, Berges said gross margin rose to 57.2% from 55.3% a year earlier. Operating expenses increased by EUR 0.2 million, or less than 1%, with targeted increases in R&D and sales and marketing and a decline in G&A of more than 6% driven by cost discipline. Total R&D spending exceeded EUR 11 million, with the majority allocated to Medical. Other operating income increased to EUR 0.9 million from EUR 0.4 million, and operating profit reached EUR 2.0 million.
Materialise ended the quarter with cash of EUR 133 million and gross debt of EUR 60.1 million, producing a net cash position of EUR 72.8 million, up nearly EUR 2 million from the start of the year. Berges said operating cash flow was almost EUR 7 million and capital expenditures were EUR 1.5 million, resulting in free cash flow after investing activities of EUR 5.7 million.
Outlook: guidance reaffirmed amid mixed end-market trends
De Vet reaffirmed full-year 2026 revenue guidance of EUR 273 million to EUR 283 million and adjusted EBIT guidance of EUR 10 million to EUR 12 million, despite the expected impact of the RapidFit and Eyewear divestments. She said the company expects macroeconomic and geopolitical uncertainty to persist throughout 2026, but expressed confidence in the “strength and resilience” of Materialise’s fundamentals.
In the Q&A, de Vet described diverging end-market conditions, saying the U.S. is showing some recovery while Europe remains “rather soft,” particularly in automotive. She pointed to aerospace and defense as areas showing continued positive dynamics, and described healthcare as generally healthy, with an exception in academic markets where the company is seeing the impact of U.S. funding cuts. Berges also said the company expects Manufacturing EBITDA contribution to be positive for full-year 2026, noting that it was positive in the first quarter.
De Vet added that Materialise’s second-quarter earnings call will be shifted to the end of August to align with half-year reporting requirements associated with its dual listing status.
About Materialise NASDAQ: MTLS
Materialise NV is a Belgium-based company specializing in 3D printing software and additive manufacturing services. Through its dual focus on software and printing, the company addresses a wide range of industries, including automotive, aerospace, consumer goods, and healthcare. Materialise's offerings span from design and simulation tools to end-to-end production, delivering both standardized and highly customized parts across polymer and metal platforms.
On the software side, Materialise develops a suite of proprietary applications—such as Magics for data preparation, Mimics for medical image processing and patient-specific modeling, and Streamics for production workflow management.
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