MTLS

Business Context and Reporting Period

Company: Materialise NV
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: Materialise is a global leader in additive manufacturing (3D printing) software, medical devices, and 3D printing services. The company operates through three segments: Materialise Software, Materialise Medical, and Materialise Manufacturing. It serves industries including healthcare, automotive, aerospace, and consumer goods.

Key Financial Metrics (Year Ended Dec 31, 2025)

Note: All figures are in thousands of Euros (€) unless otherwise noted. Adjusted EBIT/EBITDA are non-IFRS measures.

Material Changes vs. Prior Period

• Revenue Stagnation: Total revenue grew marginally by 0.3% to €267.6 million. This was driven by a 15.4% increase in the Materialise Medical segment (€134.2M), which was offset by declines in Materialise Software (-6.8%) and Materialise Manufacturing (-13.2%).
• Profitability Decline: Net profit dropped significantly to €7.7 million from €13.4 million in 2024. This was primarily due to increased financial expenses (€5.6M vs €3.0M in 2024) driven by unfavorable foreign exchange fluctuations and higher interest costs on new debt.
• Segment Performance:
  • Medical: Strong growth in medical devices and services (+18.4%) and software recurrent revenue.
  • Manufacturing: Revenue declined due to macroeconomic headwinds and reduced capacity utilization (126 printers vs 155 in 2024). The segment reported negative Adjusted EBITDA of -€4.2 million.
  • Software: Revenue declined as the company transitions to cloud-based subscription models, impacting non-recurrent perpetual license revenue.
• Capital Structure: Total debt increased to €63.1 million following the drawdown of €35 million from a KBC credit facility in 2025 to fund growth and acquisitions.

Guidance, Outlook, and Risks

• Strategic Initiatives: The company is actively transitioning its software business from perpetual licenses to cloud-based SaaS models (CO-AM platform). It is also expanding production capacity in Germany and investing in AI/ML for medical applications.
• Share Buyback: In November 2025, shareholders authorized a share buyback program of up to €30.0 million. As of December 31, 2025, no repurchases had been executed, though a mandate was signed with an intermediary.
• Geopolitical Risks: Operations in Kyiv, Ukraine (over 400 employees) face ongoing instability due to the armed conflict. While operations continue, there is uncertainty regarding workforce availability and potential disruptions.
• Regulatory Environment: The Medical segment is subject to strict regulations (FDA, EU MDR). The company has completed the transition to EU MDR but faces ongoing compliance costs and risks related to reimbursement levels and pricing pressure.
• Competition: Risks include customers bringing 3D printing in-house, competitors bundling software with hardware, and the potential obsolescence of current technologies.

Key Facts for Investor Verification

• Customer Concentration: One customer accounted for over 10% of total revenue in 2025 (€60.7 million), all within the Medical segment.
• Debt Covenants: Verify compliance with debt covenants, particularly the "Total gross Debt to Adjusted EBITDA" ratio, given the recent increase in debt levels.
• Ukraine Exposure: Assess the financial impact of the ongoing conflict on the Kyiv office, including potential costs for relocating staff or hiring more expensive resources elsewhere.
• Software Transition: Monitor the pace of revenue migration from perpetual licenses to recurring SaaS revenue, which may cause short-term revenue volatility.
• Share Buyback Execution: Track the execution of the authorized €30 million buyback program initiated in early 2026.