MARLBOROUGH, Mass., Aug. 27, 2025 (GLOBE NEWSWIRE) -- IPG Photonics, the global leader in fiber laser technology, proudly announces the first public display of the CROSSBOW™ MINI 3 kW high-energy laser (HEL) system at Defence and Security Equipment International (DSEI) UK from September 9th through 12th, 2025. IPG CROSSBOW MINI is a patent-pending, compact field-ready laser defense system engineered to counter the escalating threat of unmanned aerial systems (UAS). Designed for immediate deployment and scal ...

Other accounted for 10.7% of the company's total revenue during the quarter, translating to $26.79 million. Revenues from this region represented a surprise of -8.84%, with Wall Street analysts collectively expecting $29.39 million. When compared to the preceding quarter and the same quarter in the previous year, Other contributed $33.18 million (14.6%) and $27.64 million (10.7%) to the total revenue, respectively. During the quarter, Rest of the World contributed $3.52 million in revenue, making up 1.4% of ...

Core Insights - IPG Photonics reported Q2 2025 earnings with revenue of $250.7 million, exceeding analyst estimates of $229.6 million, and non-GAAP EPS of $0.30, tripling expectations of $0.10, despite a 3% year-over-year revenue decline [1][2] Financial Performance - Revenue (GAAP) for Q2 2025 was $250.7 million, a 3% decrease from $257.6 million in Q2 2024 [2] - Non-GAAP EPS was $0.30, down 42% from $0.52 in Q2 2024 [2] - GAAP net income fell 67% to $6.6 million from $20.2 million in the prior year [2] - Adjusted EBITDA decreased by 20% to $31.5 million compared to $39.4 million in Q2 2024 [2] - Gross margin remained steady at 37.3% year-over-year [2] Business Overview - IPG Photonics specializes in high-performance fiber lasers and photonics systems for industrial, medical, and advanced technology markets [3] - The company focuses on materials processing applications, including cutting, welding, and micromachining, as well as medical procedures and emerging sectors like battery production [3] Strategic Focus - The company relies on four pillars: technological leadership, vertical integration, significant manufacturing scale, and diversification across end-markets [4] - Recent strategies include expanding into medical and advanced applications, which have higher growth rates [4] - Key success factors include rapid new product development and global manufacturing agility [4] Revenue Breakdown - Materials processing accounted for 85% of total sales but declined by 6% year-over-year [6] - Medical and advanced systems revenue rose by 21% year-over-year, driven by strategic wins and new product launches [6] - Emerging growth products constituted 54% of total sales in Q2 2025, up from 51% in Q1 2025 [5] Regional Sales Trends - Asia saw a 14% increase in sales, while North America declined by 4% and Europe dropped by 24% year-over-year [7] Profitability Metrics - Operating income fell to $0.1 million from $12.0 million, with operating margin at 0% [9] - The company faced tariff-driven costs impacting margins by 150 to 200 basis points [11] Strategic Milestones - Continued growth in emerging product lines and increased R&D investment of $58.3 million in the first half of 2025 [10] - Successful product launches in battery welding and micromachining contributed to market share gains [10] Future Guidance - For Q3 2025, revenue is projected between $225 million and $255 million, with adjusted gross margin of 36% to 38% [13] - Management plans to mitigate tariff impacts through supply chain adjustments and selective pricing changes [11]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-33155 IPG PHOTONICS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisd ...

Financial Data and Key Metrics Changes - Second quarter revenue increased by 10% sequentially and 2% year over year, marking the first year-over-year revenue increase since 2022, driven by modest demand improvement across multiple markets [5][18] - Revenue for the quarter was $251 million, with a gross margin of 37.3%, remaining flat year over year [22][23] - Adjusted earnings per diluted share were $0.30, exceeding guidance [24][27] Business Line Data and Key Metrics Changes - Revenue from materials processing decreased by 6% year over year due to divestitures and lower sales in cutting, welding, and additive manufacturing, partially offset by higher revenue in micromachining and the Clean Laser acquisition [18][19] - Medical and advanced applications revenue increased by 21%, driven by higher sales in these segments [18] - Emerging growth products accounted for 54% of sales, indicating strong performance in various laser sources and systems [20] Market Data and Key Metrics Changes - North America sales increased by 31% sequentially but were down 4% year over year, primarily due to higher sales in medical and advanced applications [20] - European sales were stable with less than a 1% sequential decline and down 11% year over year, impacted by lower cutting and welding sales [20] - Asia saw a 4% sequential increase and a 14% year-over-year increase, benefiting from higher sales in welding and cutting, as well as advanced applications [21] Company Strategy and Development Direction - The company is targeting a $5 billion total addressable market (TAM) with strategic initiatives aimed at driving profitable growth [5] - Focus on developing innovative lasers and photonic solutions for medical, micromachining, and advanced applications, with significant progress reported in these areas [9][11] - Capital allocation strategy emphasizes organic growth investments and strategic M&A, with plans to spend approximately $100 million on CapEx in 2025 [12][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand stabilization, noting improvements in industrial production and inventory normalization among customers [16][46] - The company is adapting to tariff-related challenges by leveraging supply chain flexibility and has successfully mitigated potential delays in customer orders [15][17] - Future guidance anticipates revenue between $225 million and $255 million for 2025, with adjusted gross margins between 36% and 38% [26][27] Other Important Information - The company repurchased $30 million of its stock during the quarter, continuing a trend of returning cash to shareholders [12][25] - The Crossbow laser counter UAV solution has been delivered to Lockheed Martin, showcasing the company's capabilities in directed energy systems [9][10] Q&A Session Summary Question: Can you provide any color on book to bill by region? - Management indicated that the book to bill ratio was approximately one across all regions, which is a positive sign [30][32] Question: How do you view the opportunity for directed energy over the next few years? - Management highlighted the directed energy market as a significant growth area, particularly addressing threats from smaller drones, with ongoing partnerships and extensive testing [34][37] Question: Can you walk us through the Q3 guidance? - Management noted that they were able to ship a significant portion of anticipated orders due to effective tariff mitigation strategies and observed broad-based improvements in demand [42][46] Question: What is the outlook for the systems business? - Management expressed excitement about the Clean Laser acquisition and noted improvements in other systems areas, including micro machining and robotic systems [63][65] Question: How is the competitive environment in the medical business changing? - Management reported strong positioning in the urology market and continued growth with new customer acquisitions [66][68]

Financial Data and Key Metrics Changes - Second quarter revenue increased by 10% sequentially and 2% year over year, marking the first year-over-year revenue increase since 2022, driven by modest demand improvement across multiple markets [5][17] - Revenue came in at $251 million, up 10% sequentially but down 3% year over year, with foreign currency contributing approximately $4 million or 1% to revenue [21][24] - Gross margin was 37.3%, flat year over year, while adjusted gross margin was 37.8%, driven by improved manufacturing cost absorption [21][22] Business Line Data and Key Metrics Changes - Revenue from materials processing decreased by 6% year over year due to divestitures and lower sales in cutting, welding, and additive manufacturing, partially offset by higher revenue in micromachining and the Clean Laser acquisition [17] - Medical and advanced applications revenue increased by 21%, driven by higher sales in these segments [17] - Emerging growth products accounted for 54% of sales, indicating strong performance across various laser sources and systems [18] Market Data and Key Metrics Changes - North America sales increased by 31% sequentially but were down 4% year over year, primarily driven by higher sales in medical and advanced applications [19] - Europe saw stable performance with less than a 1% sequential decline and an 11% year-over-year decrease, while Asia experienced a 4% sequential increase and a 14% year-over-year increase, benefiting from higher sales in welding and cutting [20] Company Strategy and Development Direction - The company is focusing on strategic initiatives targeting a $5 billion total addressable market (TAM) with hundreds of millions in revenue growth opportunities [5] - Continued investment in innovative lasers and photonic solutions is aimed at expanding into medical, micromachining, and advanced applications [8][11] - The capital allocation strategy emphasizes organic growth investments and strategic M&A, with an expected CapEx of approximately $100 million in 2025 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand stabilization, noting improvements in industrial production and normalized inventories among cutting OEM customers [15][44] - The company is adapting to the dynamic operating environment by leveraging its global manufacturing supply chain to minimize tariff impacts [14] - Future guidance indicates expected revenue of $225 million to $255 million for 2025, with adjusted gross margin between 36% and 38% [24] Other Important Information - The company repurchased $30 million of its stock during the quarter, building on $1 billion in share repurchases over the past three years [12] - The appointment of five key leaders aims to strengthen the organization and support continued global growth [13] Q&A Session Summary Question: Can you provide any color on book to bill by region? - Management indicated that the book to bill ratio was approximately one across all regions, which was a positive sign [28][30] Question: How is the opportunity for directed energy over the next few years? - Management highlighted that directed energy is a growing market, particularly addressing threats from smaller drones, with significant potential in both defense and civilian sectors [31][34] Question: Can you walk us through the Q3 guidance? - Management noted that they were able to ship $10 million of the anticipated $15 million in Q2, and they see broad-based improvement in demand across various applications [39][42] Question: How did the order book look as the quarter progressed? - Management reported a significant improvement in bookings compared to the previous year, with April being a strong month for bookings [58] Question: Can you comment on the systems business and its recent performance? - Management expressed excitement about the Clean Laser acquisition and noted increases in other areas of systems, including micro machining and welding [60][62] Question: What is the competitive environment in the medical business? - Management stated that they have a strong position in the urology market and are continuing to grow their share with new customer acquisitions [64][66]

Over the last four quarters, the company has surpassed consensus EPS estimates three times. IPG Photonics (IPGP) came out with quarterly earnings of $0.3 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +200.00%. A quarter ago, it was expected that this high- powered laser maker would post earnings of $0.21 per share when it a ...

Q2 2025 Financial Performance - Revenue reached $250.7 million[3], a decrease of 3% year-over-year compared to $257.6 million in Q2 2024[14] - Adjusted EBITDA was $31.5 million[3], down 20% from $39.4 million in Q2 2024[14] - Adjusted EPS was $0.30[3], a 42% decrease compared to $0.52 in Q2 2024[14] - Gross margin was 37.3%[14], consistent with Q2 2024 but down from 39.4% in Q1 2025[14] Business Highlights - The company shipped $10 million of the $15 million in orders impacted by tariffs[3] - The company bought back $30 million of shares[3] - Sales in North America improved sequentially, driven by higher revenue in cutting, cleaning, medical, and advanced applications[13] - Sales in Asia increased due to growth in welding, cutting, and advanced applications[13] Q3 2025 Outlook - Revenue is projected to be between $225 million and $255 million[18] - Adjusted gross margin is expected to be between 36% and 38%[18] - Adjusted EPS is forecasted to be between $0.05 and $0.35[18] - Adjusted EBITDA is expected to be between $22 million and $36 million[18]

Exhibit 99.1 "I am happy to report that we delivered second quarter results well above expectations. Our revenue improved sequentially, driven by modest demand recovery in general industrial and e-mobility markets. Excluding the impact of a divestiture, this was our first year- over-year revenue increase since 2022. We're making progress on our strategy to drive profitable growth with initiatives that are already yielding results. This quarter, we saw higher revenue in medical, supported by a customer win e ...

MARLBOROUGH, Mass., Aug. 05, 2025 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP), the global leader in high-performance fiber lasers and laser systems, today announced five senior leadership appointments as part of its ongoing efforts to advance the company's growth strategy. Dr. Paulus Bucher has joined as Senior Vice President of Global Operations. His background spans two decades of leadership in high-performance manufacturing, supply chain, logistics, and quality operations across global o ...