3D Systems announced a new expansion of its Littleton, Colorado Application‑Center of Excellence that will add roughly 80,000 sq ft of production space. The additional area will house advanced engineering and qualification‑ready platforms, as well as new production lines that enable the company to move prototypes to mission‑critical parts more quickly. The expansion is part of a broader strategy to capture demand for U.S.‑based additive manufacturing, driven in part by the National Defense Authorization Act for Fiscal Year 2026, which restricts foreign‑sourced 3D printers for Department of Defense programs.
The policy tailwinds are a key catalyst for the expansion. The NDAA’s restrictions on foreign‑made equipment create a protected market for domestic suppliers, giving 3D Systems a competitive advantage in the aerospace and defense (A&D) sector. The company’s A&D revenue grew 84 % year‑over‑year in Q2 2025, and the segment is projected to become the largest industrial segment by 2026, with revenue expected to exceed $35 million in 2026. The expansion will help the company meet that demand and secure long‑term contracts with defense and space customers.
While A&D revenue surged, overall company revenue fell 16.3 % year‑over‑year to $94.8 million in Q2 2025, down from $113.3 million in Q2 2024. Gross profit margin also slipped to 38.1 % from 41.6 % in the prior year, largely due to a less favorable mix after the divestiture of the Geomagic software platform. Despite the revenue decline, 3D Systems delivered an earnings‑per‑share beat of $0.07 versus the consensus estimate of $0.11, driven by strict cost controls and operational efficiencies that offset the weaker mix and macro‑economic headwinds.
CEO Dr. Jeffrey Graves highlighted the company’s focus on cost discipline, noting that “we delivered improved profitability in the second quarter, reflecting an intense focus on our cost structure and operational efficiencies, in the face of a continuously challenging macroeconomic climate for our industry.” He added that strong demand in A&D, supported by the NDAA tailwinds, is a key growth engine. 3D Systems is also pursuing an $18.5 million U.S. Air Force‑sponsored program for next‑generation laser powder‑bed fusion technologies, with milestones through 2027, further reinforcing its aerospace capabilities.
The expansion and the company’s cost‑reduction initiatives—targeting over $50 million in incremental annualized savings—signal a strategic shift toward higher‑margin, high‑value contracts. By scaling its Littleton facility, 3D Systems aims to improve margins through scale, secure long‑term defense contracts, and position itself as a leading domestic supplier in a market that is increasingly protected by U.S. policy. The move underscores the company’s confidence in the A&D segment’s trajectory while acknowledging the need to manage headwinds in other business lines.
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