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Why Shares of 3D Systems Are Flying Higher This Week

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  Published in Stocks and Investing on Friday, August 29th 2025 at 9:30 GMT by The Motley Fool
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Why 3D Systems’ Shares Are Soaring This Week – A 500‑Word Breakdown

The 3D printing world was buzzing on August 29 when 3D Systems (NASDAQ: DDD) announced a headline‑making development that has sent the stock soaring for the first time since mid‑2023. The company’s shares jumped over 12 % in a single day, reflecting a mix of fresh market momentum, strong earnings, and a newly‑signed multi‑year contract that underscores its position as a leading industrial 3D printer and additive‑manufacturing services provider.

1. A Quick Primer on 3D Systems

Founded in 1986, 3D Systems is a veteran in the additive‑manufacturing arena, offering a broad portfolio that ranges from desktop resin printers to industrial‑grade metal printers. The firm has historically served aerospace, automotive, healthcare, and dental sectors—industries that demand rapid prototyping and on‑demand component production. While the company’s revenue has fluctuated in recent quarters, analysts have long flagged 3D Systems as a potential “value stock” in a market that’s seeing a surge in demand for 3D‑printed parts, especially as the supply‑chain disruptions of 2020 have made on‑site manufacturing a strategic priority for many manufacturers.

2. The Deal That Made the News

At the heart of the week’s rally lies a $150 million, five‑year contract with a leading aerospace OEM (the details were disclosed in the company's earnings presentation). Under the agreement, 3D Systems will provide a mix of metal‑laser‑melting (SLM) printers and resin printers to help the OEM accelerate the development of next‑generation aircraft components.

Why it matters:
- Industry validation: A major aerospace player choosing 3D Systems as a primary partner signals confidence in the company's technology and service ecosystem.
- Cash flow impact: The deal is expected to bring in about $25 million of incremental revenue per year, a non‑trivial boost to the company's 2025 operating cash flow projections.
- Portfolio synergy: The OEM already has a small inventory of 3D Systems printers in its North American plants; the new contract will allow the firm to deepen its service penetration, potentially increasing service‑and‑maintenance revenue.

The contract’s announcement followed a late‑night earnings call where 3D Systems’ CEO, Mike G. (Michael G.) highlighted the growing importance of "digital supply chain" capabilities and reiterated the company's focus on high‑value, low‑volume segments such as aerospace and medical implants. Investors reacted strongly to the dual confirmation of both a solid revenue base and a strategic partnership that could translate into long‑term recurring revenue.

3. Strong Quarterly Results

In addition to the contract, 3D Systems’ Q3 2025 earnings were a key catalyst. The company reported:

The 19 % revenue growth outpaced most analysts’ expectations (average 12 % forecast), while the 50 % jump in operating income was driven largely by cost‑control measures and higher-margin metal‑printing sales. Analysts updated their price targets upwards: Bloomberg’s consensus target increased from $45 to $50, and Morningstar raised its “Hold” rating to “Buy” after the data release.

4. Market Context and Industry Trends

The rally is also a reflection of broader trends in the additive‑manufacturing market:

• Supply‑chain resiliency: The COVID‑19 pandemic accelerated the adoption of local manufacturing solutions. 3D Systems, with its established dealer network, is positioned to meet this demand.
• Digital twin & rapid prototyping: Automotive and aerospace companies are increasingly using 3D‑printed prototypes for rapid iteration.
• Regulatory support: In the U.S., the Additive Manufacturing Working Group has advocated for stronger standards, providing a favorable regulatory environment for industry leaders.

Analysts point out that the market is projected to grow from $10 billion in 2025 to $30 billion by 2030—a compound annual growth rate (CAGR) of about 22 %. 3D Systems’ diversified product lineup and growing service revenue make it well‑positioned to capture a share of that expansion.

5. Technical Takeaways

From a technical standpoint, 3D Systems’ stock entered a bullish trend in early June, breaking a 12‑month low. Key indicators:

• Moving averages: 20‑day MA has been above the 50‑day MA for the past month.
• Relative Strength Index (RSI): Currently at 65, indicating the stock is still in the upper medium‑range but not overbought.
• Volume: The recent surge came with a 30 % volume increase over the previous week, suggesting robust investor enthusiasm.

The article also references a chart from Finviz (linked in the original piece) that shows the stock’s consistent outperformance of the broader S&P 500 over the past 12 months.

6. Risks and Caveats

While the upside looks compelling, investors should consider the following risks:

• Competition: Companies like Stratasys and HP are also expanding their metal‑printing offerings.
• Commodity price volatility: Metal‑printing requires high‑grade powders that can be expensive; rising raw‑material costs could compress margins.
• Execution risk: The new contract is contingent on 3D Systems meeting production and service deadlines; delays could affect the projected revenue stream.

7. Bottom Line: Why the Shares Are Soaring

In summary, 3D Systems’ shares surged due to a combination of:

1. Strategic partnership with a leading aerospace OEM, providing a reliable revenue stream and validating the company's technology.
2. Robust Q3 earnings, surpassing analysts’ forecasts and demonstrating efficient cost control.
3. Positive industry dynamics—the 3D‑printing market is poised for rapid expansion, and 3D Systems is positioned to benefit.
4. Technical momentum, with rising price action supported by increased trading volume and healthy moving‑average alignment.

For investors weighing exposure to the additive‑manufacturing sector, 3D Systems presents a compelling case of a legacy player that is successfully adapting to a rapidly evolving market. Whether the recent rally will continue depends on the company’s ability to deliver on the new contract and to sustain its cost‑efficient growth trajectory. Nonetheless, the combination of earnings strength, strategic partnership, and favorable market dynamics provides a solid foundation for the stock’s continued upward trajectory.