Protolabs (PRLB) CEO on Reshoring Manufacturing & Using AI for Prototyping
The CEO of Protolabs (PRLB), Suresh Krishna, joined Market On Close to discuss the intersection of AI and manufacturing and the prototyping company’s latest financial results.
Protolabs, as the name suggests, creates custom prototypes for companies and sectors across the U.S. economy, including space (Blue Origin, NASA), medical (Medtronic (MDT), Abbott (ABT), Boston Scientific (BSX)), defense & industry (Deere (DE), Lockheed Martin (LMT), RTX (RTX), Boeing (BA)), and even consumer electronics (Sonos (SONO), Meta Platforms (META), Bose) and more. “We work with almost all the startups and most of the Fortune 500 companies,” Krishna says.
It calls itself the “fastest and most comprehensive digital manufacturing service in the world,” capable of producing low-volume parts in days. “We’re your single resource from prototyping to production.” It also offers quick, pinch-hit manufacturing if a company finds itself in dire need of extra parts. Protolabs works on everything from drones to satellites to FDA-approved medical devices to AI data centers.
Like Xometry (XMTR), which I have covered before, Protolabs engineers with a variety of materials (everything from metal to plastic to silicone) and manufacturing techniques, including 3D printing, CNC machining, and injection molding. They significantly expanded metal 3D printing in the back half of last year, citing rising domestic demand. Krishna pointed out that U.S. policies encouraging reshoring are boosting business.
Interestingly, Krishna argues that they “invented digital manufacturing,” and notes that the type of manufacturing that moved abroad is not the type that’s going to reshore. He thinks manufacturing will be more in line with the way they operate, “run by software, not human beings.” He also says AI is integrated into their business model.
Krishna is a relatively recent CEO, having served for less than a year. He believes he’s leading the company in a strong direction, citing their 4Q earnings report. Released February 6, it shows record quarterly and annual revenue, +12% and +6% respectively.
Krishna says that before his tenure, the company had not grown for several years, and he is working to get that back on track. He is also working to deepen client connections among the thousands of customers they see every year.
Highlights from the report include CNC machining revenue up 25% vs last year, and revenue per customer contact jumping 23% year-over-year in 4Q. Cash generated from operations was $74.5 million, with adjusted EBITDA of 14.7% of revenue. They guided for 6%-8% revenue growth in 2026.
While U.S. revenue drove their records, Europe is in a manufacturing slump, though Krishna believes it can resurge over the next few years as they begin to spend more on defense.
Going to their website, the process seems simple enough: upload a 3D CAD file (a computer-generated representation of a 3D object, like a part to prototype). Protolabs claims a turnaround of a few hours to determine pricing and their analysis of how to design and manufacture the product.
If the client is satisfied, Protolabs offers “complete program management” for ongoing production. “In some ways, we are the Amazon of manufacturing,” Krishna says.
Protolabs has key insight into the level of innovation in the U.S. economy, which is key to competition. Take Boeing vs Airbus, for example, or U.S. automakers vs China, which is pumping out cheap vehicles. Continued growth should mean continued inventing, ultimately leading to better products.
Protolabs’ work in data centers and robotics puts it at the intersection of the AI revolution, and Krishna believes they will benefit from the long-term capex being put into place. Investors may classify this company as one of the “picks and shovels” of the sector, or perhaps part of the nervous system of the AI revolution.
Watch the full interview below:
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