Proto Labs Inc ((PRLB)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Proto Labs Inc. demonstrated a strong performance in its latest earnings call, reflecting a generally positive sentiment despite some challenges. The company reported record revenue driven by significant growth in CNC machining and strategic customer engagement. Although declines in Injection Molding and 3D Printing, as well as European revenue contraction and tariff impacts on margins, were noted, the company’s robust cash flow, shareholder returns, and recognition in manufacturing underscore a positive outlook.
Record-Breaking Revenue
Proto Labs achieved a company record revenue of $135.1 million in Q2 2025, marking a 6.5% year-over-year increase in constant currencies and a 7% sequential growth. This milestone highlights the company’s ability to leverage its strategic initiatives and market demand effectively.
CNC Machining Surge
The CNC machining segment experienced a remarkable surge, reaching a company record with a 20% year-over-year increase. This growth was primarily driven by strong demand from Aerospace and Defense customers, showcasing Proto Labs’ capability to meet industry-specific needs.
Recognition and Certifications
Proto Labs received the prestigious 2025 Future of Manufacturing Project Award and ISO 13485 certification for its metal 3D printing service. These accolades enhance the company’s credibility, particularly in the medical device manufacturing sector, and position it as a leader in innovative manufacturing solutions.
Strong Cash Flow and Shareholder Returns
The company generated $10.6 million in cash from operations and returned $3.1 million to shareholders through repurchases. With a strong balance sheet boasting $123.2 million in cash and no debt, Proto Labs demonstrates financial stability and a commitment to shareholder value.
Growth in Key Indicators
Proto Labs saw a 44% growth in customers utilizing combined offers over the trailing 12 months, and revenue per customer increased by 11% year-over-year. These indicators reflect the company’s successful customer engagement strategies and potential for sustained growth.
Injection Molding and 3D Printing Decline
Despite overall positive performance, Injection Molding revenue declined by 4% year-over-year, and 3D Printing revenue was down 1%, affected by prototyping weakness. These areas present challenges that Proto Labs will need to address moving forward.
European Revenue Decline
Revenue in Europe declined by 15% in constant currencies due to contracting manufacturing activity and soft factory volume. This decline highlights regional challenges that may require strategic adjustments to regain growth momentum.
Tariff Impact on Margins
Tariffs on aluminum and steel impacted U.S. network margins, creating short-term margin pressures. However, Proto Labs made pricing adjustments that restored network margins to pre-tariff levels by June, demonstrating resilience in managing external economic factors.
Forward-Looking Guidance
For the third quarter of 2025, Proto Labs anticipates revenue between $130 million and $138 million, with non-GAAP earnings per share expected to range from $0.35 to $0.43. Despite challenges, the company remains optimistic about its growth trajectory, supported by its strong cash position and strategic initiatives.
In summary, Proto Labs Inc.’s latest earnings call reflects a generally positive sentiment with record-breaking revenue and significant growth in CNC machining. While challenges such as declines in certain segments and regional revenue contractions exist, the company’s strong financial position and strategic recognitions position it well for future growth.