Materialise shares fall 20.77% as adjusted operating profit declines in third quarter
Key Facts
Reuters coverage via Investing.com showed Materialise shares falling 20.77% on October 28, 2026, after the company reported third-quarter results combining revenue growth with lower profitability. Revenue was 67.67 million euros, below the average analyst estimate of 68 million, while earnings per share were 0.020 euros, matching the same estimate. EL7 data had recorded the stock's close at $8.62 on October 27, before the decline reading published the following day. Net profit fell to 1.383 million euros from 1.848 million euros in the same period last year. Adjusted operating profit also fell to 2.485 million euros from 2.918 million, and its margin narrowed to 3.7% from 4.4%.
Total revenue rose 2.1% year over year to 67.670 million euros, compared with 66.259 million in the third quarter of 2025. The company said growth was 4.9% excluding revenue from manufacturing operations recently exited, illustrating the effect of changes in business scope on the reported comparison. But the third quarter was weaker than the second quarter of this year, when revenue rose 8.1% to 70.073 million euros. Adjusted operating profit fell to 2.485 million euros in the third quarter, from 3.880 million in the second quarter, which had posted year-over-year growth of 26.9%. Sales growth therefore slowed and adjusted earnings declined from the previous quarter, despite continued year-over-year revenue growth.
Higher expenses weighed on earnings, as combined research and development, sales and marketing, and general and administrative expenses rose 7.8% to 38.830 million euros from 36.019 million a year earlier. Materialise attributed the increase mainly to an 11.9% rise in research and development spending. The company said operating income also included a one-off cost of 184 thousand euros, related to an inventory write-down following the transfer of assets from the eyewear segment. Meanwhile, gross margin improved to 57.7% from 56.8%, indicating that the decline in the adjusted EBIT margin coincided with higher operating expenses. Adjusted EBITDA also fell to 8.046 million euros from 8.428 million a year earlier.
Segment performance diverged: Materialise Medical revenue rose 9.7% to 36.542 million euros from 33.296 million in the corresponding quarter of 2025. Chief Executive Brigitte de Vet-Veithen said the medical segment “continued to deliver double-digit growth,” noting that the company increased its research and development investment in the segment. In Manufacturing, revenue was 21.266 million euros, up 1.5% after adjusting the comparison to exclude the impact of recent exits. The chief executive attributed adjusted manufacturing growth to strong performance in the aerospace and defense markets. Software revenue fell to 9.864 million euros from 10.286 million a year earlier, limiting group growth despite the medical segment's advance.
Adjusted EBITDA fell to 8.046 million euros from 8.428 million in the third quarter of 2025, alongside a decline in the adjusted operating profit margin. Still, de Vet-Veithen said the company delivered a positive net result despite one-off costs, while confirming increased investment in medical research and development. Materialise reaffirmed its 2026 revenue outlook at 273 million to 283 million euros and adjusted operating profit at 12 million to 14 million. The company had raised its adjusted operating profit guidance range in August, according to its statement. Fourth-quarter and full-year 2026 results are scheduled for release on February 18, 2027.