Materialise reported significantly stronger second-quarter 2026 profitability and cash generation as growth in its Medical and Manufacturing businesses combined with cost discipline to produce an outsized increase in net income.
Revenue increased 8.1% year-over-year to €70.1 million from €64.8 million.
Adjusted EBITDA increased 15.7% to €9.6 million, while adjusted EBIT increased 26.9% to €3.9 million.
Net profit climbed to €3.33 million from just €199,000 in the comparable period.
That represents an increase of more than 16 times the prior-year level.
However, the improvement in net income was influenced by below-operating-line factors as well as stronger operations.
Operating profit itself was relatively stable at €2.79 million compared with €2.73 million.
The significant change came partly from the company’s net financial result, which improved to positive €242,000 from negative €3.05 million in the prior-year period, when unfavorable foreign-exchange movements had weighed heavily on results.
A cleaner indicator of underlying operating improvement is adjusted EBIT.
Adjusted EBIT increased 26.9%, more than three times the company’s 8.1% revenue growth rate.
Adjusted EBIT margin expanded to 5.5% from 4.7%, representing an approximately 80-basis-point improvement.
Adjusted EBITDA increased 15.7% to €9.59 million.
Materialise’s Medical segment remained the company’s principal growth and profit engine.
Medical revenue increased 12.2% to €36.9 million, while segment adjusted EBITDA increased 7.7% to €11.6 million.
The Medical business generated a 31.3% adjusted EBITDA margin, although that was down from 32.7% a year earlier.
The Manufacturing segment also returned to growth.
Revenue increased 6.7% to €23.6 million, supported by strength in aerospace and defense applications.
Adjusted EBITDA loss improved to only €285,000 from €807,000.
That reduced the segment’s negative adjusted EBITDA margin to 1.2% from 3.6%, moving the business materially closer to breakeven.
Software remained the softer part of the portfolio.
Quarterly Software revenue decreased 2.7% to €9.6 million, while segment adjusted EBITDA fell to €981,000 from €1.37 million.
Still, Materialise continued to invest in the software operation and launched new offerings around its CO-AM additive manufacturing platform.
Cash flow represented another important positive inflection.
Second-quarter operating cash flow reached €8.15 million compared with negative €27,000 a year earlier.
Capital expenditures totaled approximately €1.98 million, while free cash flow after operating and investing activities reached €5.63 million.
The company achieved that cash generation while continuing to return capital to shareholders.
Its quarter-end net cash position reached €74.2 million, up €1.4 million sequentially even though Materialise spent approximately €2.9 million on share repurchases during Q2.
The half-year trends reinforce the operating improvement.
First-half adjusted EBIT increased 71.4% to €6.35 million, while the adjusted EBIT margin expanded to 4.7% from 2.8%.
Adjusted EBITDA increased 22.2% to €17.6 million.
Materialise swung to €5.15 million of first-half net profit from a €337,000 loss a year earlier.
First-half operating cash flow also increased to €15.1 million from €9.7 million.
Capital expenditures declined to €3.45 million from €6.56 million, helping produce €11.4 million of free cash flow.
Gross debt fell to €59.5 million from €63.1 million at year-end, while net cash increased to €74.2 million.
Materialise repurchased approximately 1.07 million shares for €5.2 million during the first half.
That means the company’s net cash position increased despite both continued investment in the business and capital returns to shareholders.
Strategically, management is also narrowing the company’s focus around higher-value applications.
Materialise completed divestitures of its RapidFit and Eyewear businesses and invested in Replasia to expand its personalized hip-care portfolio.
The company views those moves as part of a broader effort to concentrate resources on areas where its 3D-printing technology can generate differentiated value.
The most compelling financial angle is the combination of improving adjusted profitability and cash generation.
Revenue grew 8%, but adjusted EBIT increased 27%, operating cash flow swung strongly positive, first-half adjusted EBIT increased 71% and the balance sheet strengthened despite ongoing share repurchases.
KEY QUOTES:
“Double-digit revenue growth in our Materialise Medical segment was complemented by renewed growth in our Manufacturing segment driven by strong performance in our aerospace & defense focus markets.”
“Combined with disciplined cost management and focused execution, this revenue growth translated into a significant improvement in operational and bottomline profitability.”
Brigitte de Vet-Veithen, Chief Executive Officer of Materialise
“With a strong balance sheet, Materialise is well positioned to capture further opportunities ahead and to create lasting value for customers, patients, partners, and shareholders.”
Brigitte de Vet-Veithen, Chief Executive Officer of Materialise
