Proto Labs Inc (PRLB) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic Growth ...
CNC Machining Revenue: Grew 20% over the prior year, with a 30% increase in the US.
Injection Molding Revenue: Declined 4% year over year.
3D Printing Revenue: Down 1% year over year.
Sheet Metal Revenue: Grew 9% year over year.
US Revenue: Grew 12% year over year.
Europe Revenue: Declined 15% in constant currencies.
Non-GAAP Gross Margin: 44.8%, flat sequentially, down 90 basis points year over year.
Non-GAAP Operating Expenses: Increased $2.7 million, up 6% consistent with revenue.
Adjusted EBITDA: $19.7 million, or 14.6% of revenue.
Non-GAAP Earnings Per Share: $0.41, above guidance range, up $0.08 sequentially, and up $0.03 year over year.
Cash from Operations: $10.6 million generated during the second quarter.
Share Repurchases: $3.1 million returned to shareholders.
Cash and Investments: $123.2 million on balance sheet with zero debt.
Q3 2025 Revenue Guidance: Expected between $130 million and $138 million, implying 6% growth year over year in constant currencies.
Q3 2025 Non-GAAP EPS Guidance: Expected between $0.35 and $0.43.
Warning! GuruFocus has detected 7 Warning Signs with PRLB.
Release Date: July 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Proto Labs Inc (NYSE:PRLB) delivered record revenue of $135.1 million in the second quarter, exceeding expectations.
The company saw a 44% growth in customers utilizing their combined offer over the trailing 12 months.
Revenue per customer increased by 11% year over year, indicating strong customer engagement.
The metal 3D Printing service in Raleigh, North Carolina received ISO 13,485 certification, enhancing credibility in the medical device manufacturing sector.
Proto Labs Inc (NYSE:PRLB) continues to generate healthy cash flows, allowing for ongoing investments in growth and innovation.
Negative Points
Injection Molding revenue declined by 4% year over year, with noted weakness in the medical sector.
3D Printing revenue was down 1% year over year, reflecting continued weakness in prototyping.
European revenue declined by 15% in constant currencies, indicating challenges in the region.
Tariffs and changing trade policies created short-term margin pressures, impacting profitability.
Gross margin was down 90 basis points year over year, driven by higher growth in network revenue and lower US network margins due to tariffs.
Q & A Highlights
Q: Can you elaborate on the strength you're seeing in CNC, particularly in terms of growth across the factory and network? A: Daniel Schumacher, CFO: We are experiencing similar growth in both the factory and the network, with a 30% CNC growth in the US driving the overall 20% growth for the company. Suresh Krishna, CEO: We've grown revenues with larger accounts due to our go-to-market reorganization, and our production teams have shown agility in responding to customer needs.
Q: Is the CNC work leaning more towards production or prototyping? A: Daniel Schumacher, CFO: It is a combination of both production and prototyping. We don't provide a specific split, but both contribute to our revenue growth.
Q: Can you provide more details on the Injection Molding business and the factors affecting its performance? A: Daniel Schumacher, CFO: The network is a small portion of our Injection Molding business, with most of it through the factory. We saw some larger production orders last year, particularly in automotive, which impacted year-over-year comparisons. Currently, we are seeing weakness in the medical sector, but we continue to innovate and add capabilities to drive future production growth.
Q: What excites you about joining Proto Labs, and what are your initial observations? A: Suresh Krishna, CEO: I'm excited about the opportunity to reaccelerate growth. My focus is on listening to employees, customers, and partners to remove friction and identify future opportunities. I believe there is significant potential to enhance customer and employee experiences.
Q: Can you explain the impact of tariffs on gross margins and how it was addressed? A: Daniel Schumacher, CFO: Tariffs impacted our US network margins, particularly on aluminum and steel. We adjusted pricing and fulfillment strategies, and by June, margins returned to normal. The impact was due to a backlog priced at different assumptions, but adjustments have since stabilized margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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