We came across a bullish thesis on Materialise NV (MTLS) on Substack by Industrial Tech Stock Analyst. In this article, we will summarize the bulls’ thesis on MTLS. Materialise NV (MTLS)’s share was trading at $5.29 as of April 24th. MTLS’s trailing P/E was 20.31 according to Yahoo Finance.
An engineer operating a 3D printing machine to create a organ or cell-based transplant for a autoimmune disease.
Materialise (MTLS) delivered a strong 1Q25 performance, with revenue rising 4% year-over-year to €66.4 million, beating analyst expectations of €63.1 million. This growth was led by the Medical segment, which surged 19% Y/Y to €31 million, reinforcing Materialise’s continued leadership in medical 3D printing solutions. Despite ongoing macroeconomic pressures that weighed on its Software and Manufacturing segments, the latter rebounded meaningfully with 12% sequential growth to €26 million. Strong cost management and better-than-expected revenue helped limit the EPS loss to just €0.01, far better than the expected €0.04 loss. Management reaffirmed full-year revenue guidance of €270–280 million and adjusted EBIT of €6–10 million, signaling confidence in its operational resilience and growth trajectory. The results confirm expectations that Q1 marked a cyclical bottom, and the rebound in Manufacturing suggests prior softness was largely macro-driven rather than structural. Materialise’s ability to post modest growth in a tough environment highlights the durability of its core end markets. Though profitability is still limited, temporary cost absorption tied to the ramp-up of the new ACTech facility is expected to normalize over the course of the year, allowing margin expansion to resume. This operational leverage could support a return to double-digit earnings growth, particularly as the macro backdrop improves. With shares trading at just 4x EBITDA, the stock appears significantly undervalued relative to its potential, especially as margins recover and top-line growth accelerates. Materialise is well-positioned for multiple expansion as investors re-rate the stock in light of improved fundamentals, solid execution, and resilient demand in high-growth verticals like medical and advanced manufacturing. With the company demonstrating clear momentum and guidance looking increasingly conservative, the current price represents an attractive entry point. The risk/reward skew remains favorable, and the outlook supports a Buy rating.
Materialise NV (MTLS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held MTLS at the end of the fourth quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of MTLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MTLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.