This is indeed possible and after much experimentation i figured out that if the Static Mesh is set to Double Geometry, and if using UE5, with trace complex set to true, you can get the face index if it’s a capsule trace. It doesn’t work if its a sphere trace however.
Then using the face index with the node GetMaterialFromCollisionFaceIndex you now have the material of the capsule hit.
This works for Multi Capsule Traces as well!
Just made this post so it’s easily googlable for anyone to discovered.
All the Best,
Alex.