MARLBOROUGH, Mass., Oct. 21, 2025 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (Nasdaq: IPGP) will release its third quarter 2025 financial results before the market opens on Tuesday, November 4, 2025. The Company will hold a conference call to review these results at 10:00 a.m. ET on the same day. To access the call, please dial 877-407-6184 in the United States or 201-389-0877 internationally. A live webcast of the call will also be available and archived in the investor relations section of the Company’ ...

Core Viewpoint - nLIGHT (LASR) is experiencing strong growth driven by demand in the aerospace and defense sectors, while IPG Photonics (IPGP) is facing challenges due to weak industrial demand, particularly in China [1][9][21]. nLIGHT Overview - nLIGHT specializes in high-power semiconductor and fiber lasers, targeting markets such as aerospace, defense, and industrial cutting [3]. - The company reported record revenues of $40.7 million from the Aerospace and Defense (A&D) sector in Q2 2025, a 49% increase year over year, contributing to 66% of total sales [4]. - Overall revenues for nLIGHT grew 22% year over year to $61.7 million, with a non-GAAP EPS of 6 cents, a significant improvement from a loss of 10 cents in the previous year [4]. - The defense segment saw a remarkable 74.5% year-over-year growth, bolstered by the HELSI-2 program, a $171 million U.S. DoD contract [6]. - nLIGHT's management raised its full-year A&D growth outlook to at least 40%, up from 25% earlier, with projected revenue growth of 18% and 4.7% for 2025 and 2026, respectively [7][9]. IPG Photonics Overview - IPG Photonics is a leading player in the fiber laser industry, with a strong market share in industrial applications [10]. - The company’s CROSSBOW laser system enhances its position in advanced industrial applications, targeting sectors like automotive and aerospace [11]. - However, IPG Photonics reported a 3% decline in Q2 revenues to $250.7 million and a 42% drop in non-GAAP earnings to 30 cents per share, reflecting challenges in demand and competition [14]. - The Zacks Consensus Estimate indicates a revenue decline of 2.2% for 2025, with a modest increase of 6.4% projected for 2026 [14]. Price Performance and Valuation - Year-to-date, nLIGHT shares have surged 173.3%, while IPG Photonics shares have only increased by 9.9% [16]. - nLIGHT is trading at a forward sales multiple of 5.91X, compared to IPG Photonics' 3.38X, with the premium for nLIGHT justified by its lesser exposure to the weak Chinese market [18]. Conclusion - nLIGHT is positioned favorably with accelerating momentum in defense programs and rapid earnings growth, while IPG Photonics is facing near-term revenue pressures [21][22].

Core Insights - IPG Photonics announces the public display of the CROSSBOW™ MINI 3 kW high-energy laser system at DSEI UK, marking a significant advancement in directed-energy defense against unmanned aerial systems [1][6] Product Features - The CROSSBOW MINI 3 kW HEL is designed to neutralize Group 1 and 2 drones with high precision and operates for up to 12 hours on internal battery power, with options for extended missions using external power supplies [2][3] - The system can function as a stand-alone defense mechanism and integrates seamlessly with existing command and control networks and radar platforms, providing distributed protection for critical assets [3] Applications - The CROSSBOW system is applicable in both military and civilian contexts, protecting high-value assets from drone threats in locations such as military installations, government buildings, and public arenas [4] Performance and Reliability - The CROSSBOW MINI 3 kW HEL has successfully neutralized over 100 drones in realistic scenarios, demonstrating its reliability and ease of use without requiring extensive specialized training for operators [5] Strategic Partnerships - Lockheed Martin has integrated the CROSSBOW system into their Sanctum™ C-UAS solution, showcasing its effectiveness in addressing small UAS threats during field exercises [6]

Core Insights - The performance of IPG Photonics' international operations is critical for understanding its financial strength and growth potential [1][2] - The company's total revenue for the quarter ending June 2025 was $250.72 million, reflecting a year-over-year decline of 2.7% [4] International Revenue Breakdown - Germany contributed $22.3 million, or 8.9% of total revenue, which was an 8.27% miss against the consensus estimate of $24.31 million [5] - China generated $74.17 million, accounting for 29.6% of total revenue, exceeding expectations by 40.53% compared to the forecast of $52.78 million [6] - Other Europe brought in $34.24 million, representing 13.7% of total revenue, slightly below the projected $34.61 million by 1.07% [7] - The "Other" category accounted for $26.79 million, or 10.7% of total revenue, missing the estimate of $29.39 million by 8.84% [8] - The Rest of the World contributed $3.52 million, making up 1.4% of total revenue, surpassing the estimate of $1.96 million by 79.49% [9] - Japan's revenue was $15.8 million, or 6.3% of total revenue, exceeding expectations by 72.9% against the forecast of $9.14 million [10] Future Revenue Projections - Analysts project total revenue of $235.63 million for the current fiscal quarter, indicating a 1.1% increase from the prior year [11] - For the full year, total revenue is expected to reach $950.43 million, a decline of 2.7% from the previous year [13] Conclusion - The reliance on international markets presents both opportunities and challenges for IPG Photonics, necessitating close monitoring of international revenue trends to forecast future performance [14]

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]

Core Insights - IPG Photonics reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.1 per share, but down from $0.45 per share a year ago, resulting in an earnings surprise of +200.00% [1] - The company achieved revenues of $250.72 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.88%, although this is a decrease from $257.64 million year-over-year [2] - IPG has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Future Outlook - The sustainability of IPG's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $232.77 million, and for the current fiscal year, it is $0.93 on revenues of $928.72 million [7] - The Zacks Rank for IPG is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Lasers Systems and Components industry, to which IPG belongs, is currently ranked in the top 1% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

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]