Materialise(US:MTLS)2025-10-28 13:32Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2025 was EUR 66.3 million, a decrease of 3.5% compared to the same period last year, despite a 2% growth from Q2 2025 [15][16] - Gross profit margin remained strong at 56.8%, consistent with the margin for the first nine months of 2025 [15][23] - Adjusted EBIT for Q3 2025 was EUR 2.9 million, representing an adjusted EBIT margin of 4.4% [15][17] - Net profit for the quarter was EUR 1.8 million, with a net cash position increasing to EUR 67.7 million [15][25] Business Line Data and Key Metrics Changes - Materialise Medical achieved record revenue of EUR 33.3 million, growing over 10% compared to Q3 2024 [16][19] - Materialise Software revenue decreased by 7% to EUR 10.3 million, impacted by macroeconomic conditions [20] - Materialise Manufacturing revenue declined by 17% to EUR 22.7 million, reflecting ongoing market challenges [22] Market Data and Key Metrics Changes - Materialise Medical accounted for 50% of total revenue, while Materialise Software and Manufacturing contributed 16% and 34%, respectively [16][17] - The software segment's transition to a subscription-based model saw 83% of revenue being recurring, up from 74% in the previous year [21] Company Strategy and Development Direction - The company is focusing on growth in the cardiac segment, having acquired FEops to enhance its capabilities in AI-driven simulation technology [5][6] - Continued investment in R&D, particularly in the medical segment, is planned to drive future growth [19] - The company is also expanding its presence in the defense sector, leveraging additive manufacturing capabilities to meet industry needs [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic headwinds affecting the software and manufacturing segments but expressed confidence in the company's resilience and growth potential [28] - The guidance for fiscal year 2025 remains unchanged, with expected revenues between EUR 265 million and EUR 280 million and adjusted EBIT between EUR 6 million and EUR 10 million [28] Other Important Information - The company reported a strong balance sheet with cash reserves increasing to EUR 132 million [25][26] - Capital expenditures for Q3 amounted to EUR 5.3 million, with a significant portion allocated to non-recurring investments [26] Q&A Session Summary Question: Update on medical segment exposure and growth potential - Management indicated that existing markets like CMF and orthopedics are mature, while new markets such as cardiac and respiratory are expected to grow faster in the future [33] Question: Size of aerospace and defense as a percentage of revenue - Aerospace has shown continuous growth, while defense is a newer segment with potential for future growth [34][35] Question: Manufacturing profitability and recovery prospects - Management highlighted cost reduction measures already in place and emphasized the need for recovery in European and automotive markets to improve profitability [37][38]