Additive Manufacturing Emerges from a Multiyear Trough
After several years of weak capital spending, the public 3D printing sector is showing tangible signs of recovery. 3D Systems and Velo3D, two prominent additive manufacturing players, both reported significantly improved first-quarter results, signaling that customers are again treating 3D printing as a production technology rather than a lab experiment. Management at both companies pointed to mission-critical applications in aerospace 3D printing and defense manufacturing additive programs as key demand catalysts. These sectors value design freedom, lightweighting, and supply chain resilience, all areas where additive offers clear advantages. At the same time, both firms have spent the downturn refreshing product portfolios, refining business models, and cutting costs. The result is a more disciplined industry that appears better positioned to convert new demand into sustainable profitability as defense and aerospace budgets align with long-term production programs, not one-off prototypes.
3D Systems Earnings Mark a Turning Point
3D Systems earnings reflected one of its strongest quarters in recent years, with revenue rising 11% year-over-year to USD 95.5 million (approx. RM441.3 million). Healthcare Solutions led the charge, growing 21% to USD 50.1 million (approx. RM231.3 million) and overtaking Industrial Solutions, which inched up 1.6% to USD 45.4 million (approx. RM209.4 million). Metal printing for aerospace and medical applications delivered particularly strong growth, underscoring how production-scale additive is gaining traction in regulated, high-value markets. Profitability metrics improved sharply: adjusted gross margin climbed to 36.1%, adjusted EBITDA turned positive at USD 2.1 million (approx. RM9.7 million), and the net loss narrowed by USD 32.6 million (approx. RM150.7 million) to USD 4.4 million (approx. RM20.4 million). Management credits sustained R&D investment and a refreshed product line for positioning the company to capitalize as capital spending returns, especially in mission-critical aerospace and defense use cases.
Healthcare and Dental Strength Complement Aerospace Demand
While aerospace 3D printing and defense-related programs are critical to 3D Systems’ recovery, the company’s healthcare and dental franchises are proving equally important to profitability. Medical implant manufacturing, surgical planning services, and metal printer deployments all posted robust gains, with titanium spinal and orthopedic implants highlighted as standout areas of demand. In dental, the company reported strong uptake for aligner and prosthetic materials under its Vertex brand, alongside a highly successful launch of the NextDent 300 Jetted Denture Solution. Early flagship customers such as ROE Dental Laboratory have already expanded fleets, tripling denture production capacity. These recurring, application-driven revenue streams help smooth the cyclicality of industrial capital spending. Together with growing aerospace and defense orders, they create a more balanced portfolio, strengthening 3D Systems’ ability to weather future slowdowns while leveraging high-margin, regulated markets where additive manufacturing can become a standard production method.
Velo3D Revenue Growth Fueled by Defense Production
Velo3D revenue growth has been even more dramatic, with first-quarter sales climbing 48% year-over-year to USD 13.8 million (approx. RM63.8 million), and 46% sequentially. The company’s results underscore how quickly defense and aerospace customers are moving from pilot projects to full-scale additive manufacturing production. Higher system sales, improved pricing, and rapid expansion of its Rapid Production Solution (RPS) model all contributed to the top line. Gross margin improved to 17.2%, up from 7.5% a year earlier and from negative levels previously, thanks to better machine utilization and manufacturing efficiency. Losses narrowed significantly, with net loss reduced to USD 7 million (approx. RM32.4 million) from USD 25 million (approx. RM115.5 million) and adjusted EBITDA improving as operating expenses fell. These trends suggest the company is gaining operational leverage as defense and aerospace programs ramp, providing a clearer pathway to profitability despite still-negative earnings.
RPS Model and Defense Contracts Reshape Profitability Outlook
Velo3D’s shift toward its Rapid Production Solution business model highlights how defense manufacturing additive programs are reshaping revenue quality in the sector. Instead of relying solely on one-time printer sales, RPS centers on long-term manufacturing agreements that tie Velo3D systems directly to ongoing production. In the latest quarter, RPS accounted for roughly 25% of revenue, and about half of the USD 30 million (approx. RM138.6 million) backlog is now linked to RPS-related work. This contractual base is underpinned by major defense milestones, including an USD 11.5 million (approx. RM53.1 million) production contract with a defense prime and a USD 9.8 million (approx. RM45.2 million) five-year agreement with the Defense Logistics Agency tied to the Joint Additive Manufacturing Acceptability program. With defense spending, reshoring, and supply chain concerns driving adoption, such long-duration programs provide visibility, stickier customer relationships, and the potential for more durable, profitable growth across the additive manufacturing industry.
