Stratasys (Nasdaq: SSYS) has wrapped up 2024 with stronger margins however a full-year internet loss. The polymer 3D printing chief navigated a 12 months of financial headwinds, restructuring efforts, and shifting market dynamics. Whereas income declined in comparison with 2023, the corporate managed to keep up profitability on an adjusted foundation, enhance gross margins, and safe a significant funding from Fortissimo Capital, setting the stage for a probably stronger 2025. Stratasys is specializing in large-scale 3D printing, focusing on industrial prospects, and balancing price controls and investments to gas future development.
The corporate reported fourth-quarter income of $150.4 million, a decline from the prior 12 months’s $156.3 million. Regardless of this dip, Stratasys improved its gross margin to 46.3%. Additionally, the model introduced in $7.4 million in money in the course of the quarter, an enormous enchancment from final 12 months when it misplaced money.
Adjusted EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) additionally noticed a major enhance, reaching $14.5 million in comparison with $7.7 million within the earlier 12 months’s quarter. Nonetheless, the corporate recorded a internet lack of $41.9 million, primarily due to a $30.1 million drop within the worth of an funding.
Throughout an earnings name with buyers, Stratasys CEO Yoav Zeif stated: “The power of our providing is our capacity to ship measurable worth via best-in-class options that allow our prospects to scale their additive manufacturing operations successfully. These options are the expansion engine that may drive our income and revenue over time. And our buyer belief is mirrored within the continued sturdy ranges of engagement, regardless of extended capital spending constraints.”
Stratasys CEO Yoav Zeif giving the AMS 2024 Keynote Speech. Picture courtesy of Sarah Saunders/3DPrint.com.
For the complete 12 months, income got here in at $572.5 million, down from $627.6 million in 2023. Whereas internet loss for 2024 stood at $120.3 million, Stratasys posted an adjusted internet earnings of $4.2 million, reflecting the affect of cost-cutting measures and different strategic modifications. The corporate additionally maintained a robust money place, ending the 12 months with $150.7 million in money and equivalents, with no debt on its steadiness sheet.
“In 2024 and early 2025, we took a number of key steps to reinforce our management and strengthen our place on the forefront of additive manufacturing. Regardless of the industry-wide challenges on account of macro headwinds, our latest dedication to right-size the corporate and ship earnings and cashflow was executed efficiently, additional demonstrating the resilience of our working mannequin and the effectiveness of our workforce,” defined Zeif. “We additionally shared with you our technique to be laser-focused on probably the most compelling functions, significantly ones that focus on full-scale manufacturing.”
Wanting forward, Stratasys has outlined a cautious however optimistic outlook for 2025. The corporate expects full-year income within the vary of $570 million to $585 million, with gross sales bettering every quarter. Adjusted gross margins are projected between 48.8% and 49.2%, with adjusted EBITDA anticipated to develop between $44 million and $50 million, reflecting a margin of seven.8% to eight.5%. Stratasys can also be anticipating stronger money circulate technology in 2025 in comparison with 2024.
Zeif highlighted the corporate’s give attention to industrial functions and full-scale manufacturing, noting that 36% of income in 2024 got here from manufacturing (a gradual improve from 25% in 2020).
Stratasys CEO Yoav Zeif at AMS 2024. Picture courtesy of 3DPrint.com.
Stratasys is relying on sturdy buyer curiosity and a rebound in spending to drive development. The corporate highlighted new product launches. The Fortus FDC filament dryer helps forestall moisture-related printing points, boosting printer effectivity. The brand new polycarbonate electrostatic discharge (ESD) supplies provide electrostatic discharge safety for digital manufacturing. In the meantime, Stratasys expanded its Origin P3 DLP platform with new supplies designed for injection molding tooling. Strategic partnerships, similar to ArcelorMittal’s multi-year settlement with NASCAR, present Stratasys’ give attention to industrial 3D printing.
“We’re in a time interval of downturn in our {industry}, and every part appears darkish and grey, however this isn’t the case with our prospects. Simply three weeks in the past, we had a buyer advisory board in Florida, the highest company on the planet, and the leaders of additive manufacturing in 14 of these firms. And we neglect as an {industry} and capital market the fundamentals and the worth proposition of additive as a result of in manufacturing there are necessities solely additive can ship,” Zeif advised buyers. “For instance, low quantity, excessive combine, particular geometries and meeting of elements, consolidation of elements, guarantee the availability chain resiliency, personalization, enhance sustainability. Solely additive can do it, and particularly in a world of uncertainty and geopolitical pressure and commerce wars.”
The Stratasys Elements Supplier Community (PPN) supplies entry to quantity reductions on Stratasys programs, supplies, service contracts, and software program, in addition to wholesale pricing for on-demand elements printed via Stratasys Direct Manufacturing
Following the earnings launch, a significant growth is the pending $120 million funding from Fortissimo Capital, which is able to give the Israeli non-public fairness agency a 14% stake in Stratasys and a seat on its board. With this extra money, Stratasys has extra flexibility for future strikes, together with potential acquisitions.
Analyst Troy Jensen of Cantor Fitzgerald speculates that Stratasys might use this capital to amass Desktop Steel and even Nano Dimension. In 2023, Desktop Steel first tried to merge with Stratasys in a $1.8 billion deal, which Stratasys rejected. In 2023, Desktop Steel’s market capitalization was roughly $700 million, however as of March 5, 2025, it was buying and selling at round $70 million.
In the meantime, Nano Dimension’s deliberate acquisition of Desktop Steel is dealing with authorized challenges, and a courtroom ruling on March 11-12, 2025, will decide whether or not the deal strikes ahead. In response to Jensen, if Nano Dimension’s new board efficiently cancels the acquisition, Stratasys might attempt to purchase elements of Desktop Steel’s enterprise, significantly its metals, sand, and supplies divisions.
“I imagine Stratasys is seeking to purchase Desktop Steel and/or Nano Dimension, and this all will depend on the result of Nano Dimension’s introduced acquisition of Desktop Steel. If Nano Dimension’s new activist-loaded Board of Administrators can get out of the Desktop Steel merger, we imagine Stratasys will step in and attempt to purchase all or elements (metals, sand, supplies) of Desktop Steel,” explains Jensen.
Stratasys’ 2025 steering suggests a gradual, albeit sluggish, development trajectory, with income anticipated to rise within the low-single digits. Jensen initiatives a 2.5% improve for the 12 months and a continued push for greater profitability. Stratasys goals to keep up at the least an 8% EBITDA margin, with the potential to succeed in 10% if reasonable income development materializes.
With most of its restructuring completed and cost-saving measures in place, Stratasys is best positioned to deal with {industry} challenges and plan for the long run. The corporate is specializing in large-scale 3D printing, key partnerships, and monetary stability, plus the upcoming Fortissimo funding and potential acquisitions might decide its subsequent strikes.
We’ve reached out to Stratasys for remark relating to Jensen’s statements and can replace the article accordingly once we obtain one.
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