From Industry Trough to Turning Point
After several difficult years, two of the most closely watched additive manufacturing players are signaling that the sector is finally emerging from its downturn. 3D Systems reported one of its strongest quarters in recent years, while Velo3D posted sharp top-line growth and improving margins. Both management teams describe a shift in how customers view industrial 3D printing: not as a prototyping tool, but as a production technology for mission‑critical parts. This shift is especially visible in defense additive manufacturing and aerospace programs, where reliability, qualification and supply-chain resilience are top priorities. Together, the latest quarterly results suggest the beginnings of a 3D printing market recovery, with end users moving beyond experimental pilots into steady, multi‑year production commitments. For investors tracking 3D Systems stock performance and emerging names like Velo3D, these signals hint that the industry’s multiyear trough may be giving way to a more sustainable growth phase.
3D Systems Returns to Growth with Healthcare and Defense Tailwinds
3D Systems reported first‑quarter revenue of USD 95.5 million (approx. RM441.3 million), up 11% year over year, marking a clear break from its recent slowdown. Its Healthcare Solutions division led the way, growing 21% to USD 50.1 million (approx. RM231.9 million) and overtaking Industrial Solutions, which reached USD 45.4 million (approx. RM210.4 million). Printer, material and parts manufacturing all saw double‑digit growth, with metal printing for aerospace and medical applications playing a central role. Profitability also improved: adjusted gross margin rose to 36.1%, adjusted EBITDA turned positive at USD 2.1 million (approx. RM9.7 million), and net loss narrowed by USD 32.6 million (approx. RM150.7 million). Management highlighted rising demand for production‑scale systems in defense and medical device markets, reinforcing the view that mission‑critical applications are becoming the company’s core growth engine and a key driver behind improving 3D Systems stock performance.
Velo3D Revenue Growth Accelerates on Defense and Aerospace Production
Velo3D’s first‑quarter revenue climbed to USD 13.8 million (approx. RM63.8 million), a 48% year‑over‑year increase and 46% sequential rise, reflecting a decisive ramp‑up from defense and aerospace customers. These clients are transitioning from pilot projects into full‑scale additive manufacturing production, validating Velo3D’s positioning in high‑performance metal printing. Gross margin improved to 17.2%, up from 7.5% a year earlier and from negative territory in the prior quarter, as higher machine utilization and better manufacturing efficiency took hold. Net loss narrowed to USD 7 million (approx. RM32.4 million), a sharp improvement from the USD 25 million (approx. RM115.5 million) loss a year earlier, while adjusted EBITDA and operating expenses also trended in the right direction. With new financial leadership in place and rising demand, Velo3D revenue growth is increasingly tied to long‑duration production programs rather than one‑off system sales, underscoring the maturing role of defense additive manufacturing within its business model.
Defense Additive Manufacturing Becomes the New Growth Engine
The most striking common thread between 3D Systems and Velo3D is the central role of defense and aerospace contracts in their resurgence. 3D Systems sees demand for production‑scale 3D printing returning first in mission‑critical sectors such as defense and medical devices, where its refreshed metal printer portfolio can command stronger margins and recurring materials revenue. Velo3D, meanwhile, is heavily emphasizing defense growth, pointing to an USD 11.5 million (approx. RM53.1 million) production contract with a defense prime contractor and a USD 9.8 million (approx. RM45.3 million) five‑year agreement with the Defense Logistics Agency under a joint additive manufacturing program. The company also became the first additive manufacturing vendor qualified for Army ground vehicle applications. These milestones illustrate how defense additive manufacturing is replacing earlier market uncertainty, providing more predictable, program‑based demand that can support higher utilization, better economics and greater confidence across the 3D printing value chain.
What the Q1 Results Signal for the 3D Printing Market Recovery
Taken together, the latest results from 3D Systems and Velo3D point to early but meaningful momentum in the broader additive manufacturing sector. For 3D Systems, stronger revenue, expanding margins and growth in healthcare and aerospace suggest that sustained R&D investment during the downturn is finally paying off. For Velo3D, the combination of rapid revenue growth, margin improvement and large defense contracts validates its strategy of targeting high‑value, production‑grade applications. Both companies are seeing customers move into longer‑term, production‑oriented commitments, particularly through models like Velo3D’s Rapid Production Solution, which favor recurring revenue and deeper integration. If these trends continue, they could underpin a more durable 3D printing market recovery, with defense and aerospace acting as anchor segments that stabilize demand. That, in turn, could improve visibility for equipment makers, materials suppliers and investors watching 3D Systems stock performance and newer entrants across the additive manufacturing landscape.
