Proto Labs Inc (FRA:PRZ)

Q2 2026 Proto Labs Inc Earnings Call Transcript

Jul 31, 2026 / 12:30 PM GMT

Release Date Price: €64.95 (-0.69%)

Transcript 10-Q8-K

Key Points

Positve

Record revenue of $149.3 million, up 10.2% year-over-year in constant currencies, with double-digit growth for the third consecutive quarter.
Gross margin expanded 200 basis points year-over-year to 46.8%, driven by higher margins in both factory and network fulfillment.
Injection molding revenue accelerated 12.9% year-over-year, with strength in telecommunications, aerospace, and defense.
CNC machining revenue grew 13.1% year-over-year, driven by sustained demand in aerospace and defense, including drones, satellites, and robotics.
Adjusted EPS of $0.60 was the highest since Q3 2020, up 45% year-over-year, with adjusted EBITDA margin improving to 16.8%.
Europe revenue grew 9% year-over-year, showing early progress from go-to-market changes and a simplified customer experience.
Revenue per customer grew 17% year-over-year, reflecting deeper engagement with larger, more strategic customers.
Company raised full-year 2026 revenue growth outlook to 8-10% year-over-year.
Strong cash generation of $15.4 million from operations, with a debt-free balance sheet and $62.9 million in cash and investments.
Investments in AI and digital manufacturing capabilities are enhancing customer experience and operational efficiency.

Negative

3D printing revenue declined 2.7% year-over-year, with a 6.7% drop in Europe, despite strength in the US.
Europe remains a transformation story with profitability still a work in process, and it continues to be a mid-to-long-term effort.
Network revenue was flat year-over-year, indicating slower growth in that fulfillment channel.
Operating expenses increased $3.1 million year-over-year, driven by higher demand generation and contractor costs.
Third-quarter revenue guidance implies a typical sequential decline from Q2, with a midpoint of $149 million, down from Q2's $149.3 million.
Foreign currency is expected to have a $400,000 unfavorable impact on revenue in Q3.
Gross margin is expected to decline slightly in Q3 compared to Q2.
The company is still in the early innings of finding operational efficiencies, suggesting more work needed to drive cost leverage.
Dependence on aerospace and defense (25% of revenue) exposes the company to sector-specific cyclicality.
The planned retirement of the COO and ongoing organizational changes could create short-term execution risks.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PRLB.N - Proto Labs Inc
Q2 2026 Proto Labs Inc Earnings Call
Jul 31, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings and welcome to the Protoolabbs Q2 fiscal year 2026, earnings call.

At this time, all participants are in a listen-only mode.

A brief question-and-answer session will follow the formal presentation should anyone require operator assistance during the conference, please press 0 on your telephone keypad.

As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Ryan Johnsrud, investor relations, thank you may begin.

Thank you.

Good morning everyone, and welcome to Pol Labs' second quarter 2026 earnings conference, Suresh President and Chief Executive Officer, and Dan Schumacher, Chief Financial Officer.

This morning, Pro Labs issued a

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