Materialise Medical segment continued to lead the way

We updated our Materialise model after 1Q24 revenues decreased 3% y/y as 1Q23 was an exceptionally strong quarter showing 24% growth. In 1Q24, Materialise's Medical segment continued to lead the way with 8% y/y revenue growth, while revenue declined in its Manufacturing and Software segments amidst less favourable market conditions.
While continued investments in sustainable growth and the ongoing conversion to a recurring revenue business model impacted Materialise's operational profitability, they delivered a positive net result and an improved net cash position.


We maintain our Buy rating as the fundamentals of Materialise's three business segments are strong and they remain confident that Materialise is well positioned to deliver on its growth objectives but lower our Target Price slightly to $9.5 in line with our DCF. Materialise reiterated its outlook guidance expecting to report FY24 revenue within the €265m and €275m range. Materialise is also maintaining its FY24 Adj. EBIT guidance of €11m to €14m.