The latest earnings reports from Xometry (Nasdaq: XMTR), Protolabs (NYSE: PRLB), and Lincoln Electric (Nasdaq: LECO) suggest manufacturers are still spending. All three companies reported solid results, although each tells a slightly different story about where the 3D printing market stands today.
Digital manufacturing platform Xometry and on-demand manufacturing company Protolabs both posted record quarterly revenue and raised expectations for the rest of the year. Meanwhile, Lincoln Electric, whose additive manufacturing (AM) business is much smaller but closely tied to industrial capital spending, also reported record sales and earnings.
Overall, the results show that manufacturers are still spending. But growth in 3D printing continues to look different from one company to another.
Xometry keeps growing
Xometry reported another record quarter, with revenue rising 41% year over year to $229 million. Marketplace revenue, which accounts for most of the company’s business, increased 45% to $215 million. Gross profit reached a record $87.2 million, while adjusted EBITDA improved to $14.1 million. The company also continued to reduce its losses and finished the quarter with more than $517 million in cash after raising additional capital.
Company management said much of the growth was due to expansion of its marketplace. Active buyers increased 20% to nearly 90,000, while the number of accounts spending more than $50,000 annually rose 23%.
Xometry also continued investing in artificial intelligence (AI). During the quarter, it introduced new AI-powered manufacturing recommendations, updated pricing models, and improved supplier matching across its marketplace.
Xometry’s results are also good news for 3D printing. The company’s marketplace includes AM along with other production methods, so stronger demand for custom parts can create more opportunities across the board.
The company also became more optimistic about the rest of the year, raising its revenue growth forecast to 33% to 34%, up from 27% to 28%
Protolabs sees stronger growth, but 3D printing remains flat
Protolabs also reported a record quarter, with revenue increasing 10.6% to $149.3 million. The company also improved profitability and raised its full-year revenue guidance to between 8% and 10% growth.
Most of Protolabs’ business continued to grow. CNC machining revenue increased 13.6% year over year, while injection molding was up 13.1%. Both businesses had record quarters.
Meanwhile, revenue from the company’s AM business was $20.7 million, compared to $21.2 million a year earlier. This means 3D printing was basically flat while the rest of the business drove the company’s growth. That doesn’t mean 3D printing is slowing down. It just wasn’t the biggest driver of growth this quarter. CNC machining and injection molding grew much faster. Overall, Protolabs’ results still point to healthy manufacturing demand.
Lincoln Electric benefits from stronger industrial spending
Lincoln Electric, one of the world’s largest welding equipment manufacturers and a supplier of metal AM systems, also reported a record second quarter. Sales increased 12% to nearly $1.22 billion, while earnings and operating margins also improved. The company said stronger demand in the Americas and Asia Pacific helped drive the results.
AM is only a small part of Lincoln Electric’s business. Even so, the company is an important one to watch because many of its industrial customers also buy metal 3D printing equipment.
Lincoln Electric’s robotic wire-arc additive manufacturing (WAAM) system printing a large metal component. Image courtesy of Lincoln Electric.
Although these three companies operate very different businesses, they all point toward the same conclusion: manufacturing activity remains strong.
Xometry continues expanding its digital manufacturing marketplace, Protolabs is seeing customers place more manufacturing work even if 3D printing growth has slowed, and Lincoln Electric is benefiting from increased industrial investment.
For the 3D printing industry, that’s the main thing to watch. Public 3D printing companies have had a tough few years, with many customers delaying new machine purchases. But manufacturing as a whole seems to be doing much better.
That doesn’t mean every segment of the AM indsutry is growing equally. Instead, the results suggest manufacturers are still investing. And 3D printing continues to be one of the many tools they use to make parts. If manufacturing demand keeps improving, companies that offer both 3D printing and traditional manufacturing could be in a strong position.