3D Printing Financials: Prodways Targets Industrial Markets for Q3 Growth

Prodways (EPA: PWG) closed its third quarter of 2024 with signs of recovery, marked by renewed momentum in its systems division. The company’s restructuring efforts earlier in the year, particularly around software and printer offerings, appear to be yielding positive results. Growth in its systems division and an uptick in demand in its products segment helped the company navigate a competitive landscape. What’s more, the company’s recent organizational changes have set it on a path toward revenue growth and established a strong foundation as it moves toward its year-end goals.

In the quarter, Prodways earned €15 million in revenue, a 4% increase from the same period last year. This growth is a positive sign after major changes to its business. This year, Prodways restructured its business model by refocusing its printers on industrial segments, ending its Solidscape line of high-precision jewelry printers in January and selling off its Cristal dental business in February. These steps are part of a push to simplify operations and concentrate on its strongest areas.

Meanwhile, its systems division earned €7.6 million, mostly thanks to ongoing deals in dental and aerospace, with some contracts expected to close by the end of the year or early next year. Although printer deliveries were modest, Prodways kept steady material sales and saw strong double-digit growth in its software sales this quarter, with new clients signing on as the company shifts to a SaaS (Software as a Service) model, where customers now subscribe to software rather than making one-time purchases. This change provides clients regular updates, ongoing support, and easier scaling options to meet evolving needs.

In the products segment, which specializes in on-demand parts, prototypes, and small-series production in both plastic and metal, there was a 2% growth, achieving €7.1 million in revenue. Within this division, digital manufacturing grew by 10%, mainly due to strong orders from a major German automotive client and additional mid-sized orders.

However, not all segments within the products division performed as well. Prodways’ audiology unit, which makes items like hearing aids and custom earpieces, was initially slowed down by structural adjustments but is on track for stronger performance as it adopts new workflows. According to Prodways, new processes implemented in recent weeks have increased the volume of impressions for hearing protection products, a trend expected to drive higher-order fulfillment in the fourth quarter.

Looking ahead, Prodways wants to capitalize on the traction it has gained in key markets while continuing to streamline its offerings. For the remainder of 2024, the French company has reaffirmed its guidance for annual revenue growth between 1% and 5% and expects improved EBITDA (earnings before interest, taxes, depreciation, and amortization) margins.

Prodways stands out in the 3D printing universe thanks to an all-in-one approach that covers software, hardware, materials, and services, nearly the entire 3D ecosystem. This complete solution means that Prodways can address various needs across sectors, controlling every step of the process. While rare in the European market, its ability to span the full 3D printing value chain lets clients streamline operations, avoid compatibility issues between components, and speed up production. Between this advantage and the internal reorganizations, Prodways is looking to strengthen its presence and meet the 3D printing trends of high-demand industries.