Materialise NV ((MTLS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Materialise NV’s recent earnings call revealed a mixed sentiment, encapsulating both achievements and challenges. The company showcased strong performance in its Medical segment and notable advancements in Manufacturing. However, increased costs and challenges in the Manufacturing division led to a negative EBIT in Q4. The deferred revenue in Software suggests future growth potential, yet current market conditions remain difficult.
Record Growth in Medical Segment
Materialise’s Medical segment shone brightly as it achieved a 14% revenue growth in Q4 2024, and a 15% growth for the full year, setting a new quarterly revenue record. This growth was driven by both direct and partner sales in Medical Devices and Services, highlighting the segment’s robust performance and strategic importance to the company’s portfolio.
Advancements in Manufacturing
The company reported significant progress in its Manufacturing division, particularly in the aerospace segment, which saw a 28% revenue growth for the year. Materialise also opened an aerospace competence center in Delft and experienced over 30% growth in Huge and Heavy parts production, underscoring its expanding capabilities and commitment to innovation in manufacturing.
Strong Deferred Revenue in Software
Materialise’s Software segment displayed promising signs of future growth with deferred revenue related to software licenses and maintenance increasing by €5.9 million in Q4 2024, culminating at €46.9 million. This growth indicates the potential for recurring revenue streams and the strategic transition to a cloud-based subscription model.
Manufacturing Segment Decline
Despite advancements, the Manufacturing segment faced hurdles, experiencing a 13% revenue decrease in Q4 2024 due to weak prototyping demand and challenging market conditions in Europe, particularly impacting the automotive sector.
Negative EBIT in Q4
Materialise’s financial performance in Q4 was marked by a negative EBIT of minus €1.2 million, with a margin of negative 1.8%. This downturn was attributed to increased costs and restructuring expenses.
Restructuring and Increased Costs
The company’s operational profitability was impacted by restructuring expenses and increased R&D investments during Q4 2024. These factors contributed to the negative EBIT, reflecting the company’s efforts to adapt and invest in future growth.
Forward-Looking Guidance
Looking ahead, Materialise has set its revenue guidance for 2025 between €270 million and €285 million, with an adjusted EBIT ranging from €6 million to €10 million. The company anticipates continued growth in its Medical and Software segments, despite ongoing challenges in transitioning Software to a cloud-based model. The Manufacturing segment is expected to face difficulties due to the persistent uncertain macroeconomic environment in Europe.
In summary, Materialise NV’s earnings call highlighted a period of both vigor and difficulty. The company celebrated significant achievements, particularly in its Medical and Manufacturing segments, yet faced challenges in the Manufacturing division and operational costs. Forward-looking guidance suggests cautious optimism with anticipated growth in key areas, despite macroeconomic headwinds.
