Key Takeaways
- Protolabs reported record quarterly revenue of $139.3 million, up 10.4% year over year
- CNC machining accounted for most of the growth, increasing by 17.6%
- Metal 3D printing revenue grew nearly 30% year over year, driven by demand from aerospace and defense industries
- Gross margin improved to 46.2%, up 1.4 percentage points from last quarter and a year ago
Introduction to Protolabs' Q1 Performance
Protolabs, a leading provider of rapid manufacturing services, has started 2026 on a strong note, with steady growth, improved margins, and increasing customer engagement. Despite some weaknesses in certain areas, such as 3D printing in Europe, the company's overall performance has been impressive.
Revenue Growth and Segment Performance
Protolabs' revenue growth can be attributed to the significant increase in CNC machining, which rose by 17.6% to $73.1 million. Injection molding and sheet metal also saw growth, albeit at slower rates of 3.5% and 2.3%, respectively. The following table compares the revenue growth of different segments:
| Segment | Revenue Growth |
|---|---|
| CNC Machining | 17.6% |
| Injection Molding | 3.5% |
| Sheet Metal | 2.3% |
| 3D Printing | 1.5% |
3D Printing: Strong in Metal, Flat Overall
While Protolabs' 3D printing revenue was mostly flat, metal 3D printing saw significant growth, with Direct Metal Laser Sintering (DMLS) increasing by nearly 30% year over year. This growth is driven by demand from advanced industries such as aerospace and defense, which require complex parts. The company is adding capacity to support this demand, with plans to install additional DMLS printers.
Financial Performance
Protolabs' financial performance has been impressive, with net income increasing to $8.1 million, or 33 cents per share, compared to $3.6 million, or 15 cents per share, a year ago. Adjusted EBITDA also rose to $22.8 million, up from $17.4 million, while adjusted earnings per share reached 54 cents, the company's highest level in over five years.
Bottom Line
In conclusion, Protolabs' strong Q1 performance is a testament to the company's ability to adapt to changing market conditions and capitalize on growth opportunities. With its focus on metal 3D printing and CNC machining, Protolabs is well-positioned to continue its growth trajectory and maintain its leadership position in the rapid manufacturing industry. As the company continues to invest in new technologies and expand its capabilities, it is likely to remain a key player in the industry for years to come.