Materialise Medical segment continues to lead the way

Materialise indicated that - amidst the current macro-economic and geo-political turbulence - they managed to grow their 1Q25 revenue 4.3% y/y. Materialise's Medical segment continued to lead the way with 18.7% revenue growth y/y. Uncertain market conditions continued to weigh on its Materialise Manufacturing and Materialise Software segments. On the other hand, we welcome that Materialise significantly increased the deferred revenue carried on its balance sheet.
Although overall 1Q25 profitability declined y/y Materialise indicated they continue to realize operational efficiencies compared to 4Q24. At the same time, Materialise further improved its net cash position while they continued to invest in sustainable growth (Driven by recurring positive free cash flow, Materialise's net cash position increased compared to end FY24 €6.7m to €67.7m.). We reiterate our $8.2 TP and Accumulate rating.