Materialise Announces Q4 and Full-Year 2024 Financial Results
Materialise NV, a global leader in additive manufacturing, medical software solutions, and advanced 3D printing services, has announced its financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Highlights
Materialise reported mixed results for Q4 2024, with overall revenue growing slightly while profitability was impacted by macroeconomic challenges and increased investment in R&D. The company’s total revenue increased by 0.6% year-over-year to 65,680 kEUR, driven by a 14.3% revenue growth in the Materialise Medical segment. However, the Materialise Manufacturing segment faced a downturn due to challenging European industrial conditions.
Deferred revenues from software maintenance and license fees grew by 5,878 kEUR, bringing the total to 46,948 kEUR. Adjusted EBITDA declined from 8,474 kEUR in Q4 2023 to 4,306 kEUR, reflecting the increased investment in research and development. Adjusted EBIT was (1,195) kEUR, down from 3,154 kEUR, but the company achieved a net profit of 2,907 kEUR (0.05 EUR per diluted share), reversing a net loss of (539) kEUR (0.01 EUR per diluted share) in the prior year.
Full Year 2024 Highlights
For the full year 2024, Materialise reported a 4.2% increase in total revenue to 266,765 kEUR, supported by robust 14.8% growth in Materialise Medical. The company’s gross profit margin remained relatively stable at 56.5%, compared to 56.7% in 2023.
Adjusted EBITDA increased slightly to 31,484 kEUR, compared to 31,397 kEUR in 2023, while Adjusted EBIT remained stable at 9,741 kEUR, slightly down from 9,886 kEUR. Net profit grew significantly to 13,406 kEUR (0.23 EUR per diluted share), compared to 6,695 kEUR (0.11 EUR per diluted share) in 2023, highlighting improved profitability despite higher costs.
Materialise ended the year with cash reserves of 102,304 kEUR, demonstrating strong liquidity.
CEO Commentary
Brigitte de Vet-Veithen, CEO of Materialise, commented: “Despite a challenging economic environment, our Materialise Medical segment continued to deliver strong double-digit revenue growth. Our Materialise Software business made steady progress in transitioning to a subscription-based model, and our Materialise Manufacturing segment, although impacted by European market conditions, remains poised for recovery. Our commitment to innovation and efficiency has resulted in an increase in operational cash flow by 56% to 31.5 million EUR. We remain confident in our long-term growth trajectory.”
Segment Performance for Q4 2024
Materialise Medical
- Revenue increased 14.3% to 31,837 kEUR, up from 27,848 kEUR in Q4 2023.
- Adjusted EBITDA reached 9,547 kEUR, slightly up from 9,365 kEUR.
- Adjusted EBITDA margin was 30.0%, compared to 33.6% in Q4 2023.
Materialise Software
- Revenue declined slightly by 1.1% to 11,124 kEUR, compared to 11,250 kEUR in Q4 2023.
- Adjusted EBITDA fell to 1,123 kEUR, down from 1,259 kEUR.
- Adjusted EBITDA margin was 10.1%, compared to 11.2% in Q4 2023.
Materialise Manufacturing
- Revenue dropped 13.3% to 22,719 kEUR, from 26,198 kEUR in Q4 2023.
- Adjusted EBITDA decreased to (2,989) kEUR, down from 557 kEUR.
- Adjusted EBITDA margin declined to (13.2)%, from 2.1% in Q4 2023.
Overall Financial Metrics
- Gross profit fell 3.2% to 36,365 kEUR, compared to 37,548 kEUR in Q4 2023.
- Operating expenses increased 10.2% to 38,990 kEUR, driven by a 19.6% rise in R&D investments.
- Operating result was (1,268) kEUR, compared to (1,113) kEUR in Q4 2023.
- Net financial result improved to 3,301 kEUR, from (234) kEUR, benefiting from exchange rate fluctuations.
- Net tax income was 874 kEUR, compared to 809 kEUR in Q4 2023.
- Cash flow from operations surged to 6,218 kEUR, compared to 195 kEUR in Q4 2023.
- Capital expenditures totaled 7,760 kEUR in Q4 2024.
Full Year 2024 Financial Performance
- Materialise Medical revenue increased 14.8% to 116,358 kEUR, with an Adjusted EBITDA margin of 30.6%.
- Materialise Software revenue declined 1.2% to 43,899 kEUR, with an Adjusted EBITDA margin of 12.7%.
- Materialise Manufacturing revenue fell 3.4% to 106,508 kEUR, with an Adjusted EBITDA margin of 1.6%.
- Operating result increased to 9,432 kEUR, up from 5,619 kEUR in 2023.
- Net financial result improved to 4,707 kEUR, from 1,154 kEUR.
- Income taxes amounted to (733) kEUR, compared to (78) kEUR.
- Cash flow from operations rose to 31,456 kEUR, up from 20,157 kEUR.
- Capital expenditures for 2024 totaled 26,377 kEUR.
- Shareholders’ equity increased 5.0% to 248,492 kEUR.
2025 Outlook
Brigitte de Vet-Veithen provided guidance for 2025, stating: “We expect Materialise Medical to continue leading our growth, while Materialise Software transitions further to a cloud-based model, impacting short-term revenues. The Materialise Manufacturing segment remains susceptible to economic volatility but is poised for recovery. Overall, we project total revenue between 270,000 and 285,000 kEUR. We will continue to invest in innovation while optimizing costs, particularly in manufacturing. Our Adjusted EBIT is expected to range between 6,000 and 10,000 kEUR.”
