Earnings Momentum Hints at an Industry Inflection
Recent 3D printing earnings from 3D Systems and Velo3D suggest the additive manufacturing sector may finally be emerging from a prolonged downturn. After several years of muted capital spending, both companies reported one of their strongest quarters in recent memory, driven by rising demand for production-scale systems. Executives from both firms described a clear shift: customers are now treating 3D printing as a core production technology instead of a niche prototyping tool. This change is particularly visible in defense aerospace 3D printing, where complex, mission-critical components benefit from the design freedom and speed of additive manufacturing. Together, 3D Systems and Velo3D provide a useful barometer for broader additive manufacturing growth, indicating that multi-year headwinds from macroeconomic and geopolitical uncertainty are starting to ease as organizations move pilot projects into sustained manufacturing programs.
3D Systems Returns to Growth on Healthcare and Aerospace Demand
3D Systems reported first-quarter revenue of USD 95.5 million (approx. RM441.3 million), an 11% year-over-year increase and one of its strongest performances in years. Its Healthcare Solutions division led the way, growing 21% to USD 50.1 million (approx. RM231.6 million) and overtaking Industrial Solutions, which rose 1.6% to USD 45.4 million (approx. RM210.1 million). The company saw double-digit growth across printer sales, materials, and parts production, with metal printing for aerospace and medical applications playing a central role. Profitability also improved: adjusted gross margin climbed to 36.1%, adjusted EBITDA turned positive at USD 2.1 million (approx. RM9.7 million), and net loss narrowed to USD 4.4 million (approx. RM20.3 million). Management credited disciplined cost control and a refreshed product portfolio. CEO Jeffrey Graves framed the quarter as a turning point, arguing that the additive manufacturing industry is beginning to exit a multiyear trough as production-scale demand returns.
Healthcare and Dental Show the Breadth of 3D Systems’ Recovery
Beyond headline numbers, 3D Systems’ results highlight how diversified applications are underpinning additive manufacturing growth. In healthcare, demand surged for medical implant manufacturing and surgical planning services, particularly titanium spinal and orthopedic implants that leverage 3D printing’s ability to produce patient-specific geometries. The company also cited rising interest in personalized surgical planning and oncology-related tools. Dental became one of its standout businesses, with strong uptake of aligner and prosthetic materials under the Vertex brand. A key catalyst was the NextDent 300 Jetted Denture Solution, launched in late 2025 and described by CEO Jeffrey Graves as the company’s most successful new product introduction in five years. Dental labs such as ROE Dental Laboratory are deploying fleets of these printers, significantly expanding high-precision denture capacity. This diversification across medical, dental, and aerospace applications suggests that 3D Systems’ recovery is rooted in structural rather than purely cyclical demand.
Velo3D Rides Defense and Aerospace into Production-Scale Growth
Velo3D’s latest results underscore how defense and aerospace are becoming primary engines for defense aerospace 3D printing adoption. First-quarter revenue reached USD 13.8 million (approx. RM63.8 million), up 48% year-over-year and 46% sequentially, driven by higher system sales, improved pricing, and rapid expansion of its Rapid Production Solution (RPS) model. Gross margin improved to 17.2%, compared with 7.5% a year earlier, while net loss narrowed to USD 7 million (approx. RM32.4 million), down sharply from USD 25 million (approx. RM115.7 million) in the prior year’s quarter. Adjusted EBITDA losses also declined, and operating expenses were reduced. CEO Arun Jeldi emphasized that customers—especially in defense and aerospace—are increasingly using additive manufacturing as a true production technology. RPS, which favors longer-term manufacturing agreements over one-off printer sales, represented roughly 25% of quarterly revenue and now accounts for about half of Velo3D’s USD 30 million (approx. RM138.9 million) backlog.
Defense Contracts Illuminate a More Durable Demand Pipeline
Velo3D’s defense-related achievements point to a more durable demand pipeline for additive manufacturing growth. During the quarter, the company secured an USD 11.5 million (approx. RM53.2 million) production contract with a defense prime contractor and a USD 9.8 million (approx. RM45.4 million) five-year agreement with the Defense Logistics Agency under the Joint Additive Manufacturing Acceptability program. Velo3D also became the first additive manufacturing vendor qualified for ground vehicle applications, a milestone that could open additional long-term production opportunities. Executives highlighted how defense spending, reshoring efforts, and supply chain resilience concerns continue to support adoption of 3D printing technologies. Combined with 3D Systems’ strong quarter, these developments indicate that the industry is moving beyond a multi-year downturn toward broader commercial deployment, with mission-critical defense and aerospace programs at the forefront of this new cycle of growth.
