Exhibit 99.1 IPG PHOTONICS ANNOUNCES THIRD QUARTER 2025 FINANCIAL RESULTS Management Comments "We delivered third-quarter results at the top end of our expectations with double-digit revenue growth, excluding divestitures, driven by business wins and progress in key strategic initiatives as well as stable industrial demand and growth in battery production," said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics. "We continue to balance expense management with investments we are making in innovation a ...

Core Insights - IPG Photonics Corporation reported an 8% year-over-year increase in revenue for Q3 2025, reaching $250.8 million, driven by business wins and stable industrial demand [2][6][5] - The company achieved a gross margin of 39.5%, significantly improved from 23.2% in the previous year, reflecting better cost management and operational efficiency [3][7] - Despite a slight decline in revenue for the nine months ended September 30, 2025, the company remains optimistic about future growth, particularly in high-growth markets [6][10] Financial Performance - Revenue for Q3 2025 was $250.8 million, compared to $233.1 million in Q3 2024, marking an 8% increase [3] - Gross profit increased to $99.0 million, with a gross margin of 39.5%, up from 23.2% year-over-year [3][7] - Operating income for Q3 2025 was $7.9 million, a significant recovery from a loss of $253.3 million in Q3 2024 [3][7] - Net income for Q3 2025 was $7.5 million, compared to a net loss of $233.6 million in the same quarter last year [3][7] Business Segments - Materials processing accounted for 88% of total revenue, with a 6% year-over-year increase, driven by applications in welding and additive manufacturing [6] - Other applications, including medical and advanced applications, saw a 20% increase in sales year-over-year [6] - Emerging growth products represented 52% of total revenue, slightly down from 54% in the previous quarter [6] Regional Performance - Sales in Asia increased by 15%, while North America saw an 8% increase; however, Europe experienced a 7% decline year-over-year [6] Future Outlook - The company anticipates Q4 2025 revenue between $230 million and $260 million, with an adjusted gross margin of 36% to 39% [10] - IPG Photonics aims to leverage its market leadership to convert more applications to laser-based solutions as industrial activity rebounds [9][10]

Core Viewpoint - IPG Photonics Corporation is set to release its third quarter 2025 financial results on November 4, 2025, before market opening, followed by a conference call to discuss these results [1] Company Overview - IPG Photonics Corporation is a leader in high-power fiber lasers and amplifiers, primarily used in materials processing and various applications [2] - The company's mission focuses on developing innovative laser solutions to enhance productivity and reduce costs for end users, offering superior performance and reliability at a lower total cost of ownership compared to other laser and non-laser tools [2] - IPG is headquartered in Marlborough, Massachusetts, and operates over 30 facilities globally [2]

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]

Financial Performance - Net sales decreased by $6.9 million, or 2.7%, to $250.7 million for the three months ended June 30, 2025, compared to $257.6 million for the same period in 2024[88]. - For the six months ended June 30, 2025, net sales decreased by $31.2 million, or 6.1%, to $478.5 million from $509.7 million in the same period in 2024[102]. - Net income decreased by $13.6 million to $6.6 million for the three months ended June 30, 2025, compared to $20.2 million for the same period in 2024[101]. - Net income decreased by $33.9 million to $10.4 million for the six months ended June 30, 2025, compared to $44.3 million for the same period in 2024[115]. - Cost of sales decreased by $20.8 million, or 6.6%, to $295.1 million for the six months ended June 30, 2025, with gross margin increasing to 38.3%[106]. Revenue Sources - Approximately 85% of revenues for the first half of 2025 and 88% for the full fiscal year of 2024 were derived from customers in materials processing[69]. - Materials processing sales accounted for 84.7% of total revenue and decreased by 6.0% year over year, primarily due to lower sales in cutting and welding applications[89]. - Other applications sales increased by 20.7% year over year, driven by higher revenue in advanced applications and medical procedures[89]. Expenses - Research and development expense increased by $2.4 million, or 8.7%, to $29.9 million for the three months ended June 30, 2025, representing 11.9% of sales[92]. - General and administrative expense increased by $3.3 million, or 10.4%, to $34.9 million for the three months ended June 30, 2025, accounting for 13.9% of sales[93]. - Sales and marketing expense increased by $4.5 million, or 9.9%, to $50.0 million for the six months ended June 30, 2025, representing 10.4% of sales[107]. Foreign Exchange Impact - Foreign exchange losses for the quarter ended June 30, 2025, were primarily due to the appreciation of the euro against the U.S. dollar[84]. - The company incurred a foreign exchange transaction loss of $3.1 million for the three months ended June 30, 2025, compared to a $3.2 million loss for the same period in 2024[96]. - The company incurred a foreign exchange transaction loss of $5.5 million for the six months ended June 30, 2025, compared to a loss of $4.9 million for the same period in 2024[112]. - As of June 30, 2025, the loss on foreign exchange transactions totaled $3.1 million, a slight decrease from a loss of $3.2 million for the same period in 2024[135]. - A 5% change in the exchange rate of the U.S. dollar to the euro could result in a foreign exchange gain of $2.2 million if the U.S. dollar appreciates, or a loss of $2.3 million if it depreciates[136]. - A 5% change in the exchange rate of the U.S. dollar to the Chinese yuan could lead to a foreign exchange loss of $1.4 million if the U.S. dollar appreciates, or a gain of $1.5 million if it depreciates[136]. - The company is exposed to foreign currency translation risk, which affects the translated amounts of assets and liabilities due to changes in functional currency exchange rates relative to the U.S. dollar[137]. - Management attempts to minimize foreign currency exposure by offsetting foreign currency denominated assets and liabilities, though effectiveness is limited[135]. - The company will continue to analyze its exposure to currency exchange rate fluctuations and their potential impact on financial results[139]. Asset Management - An impairment of long-lived assets amounting to $26.6 million was recorded due to sanctions affecting operations in Belarus, with remaining asset value at $4.2 million as of June 30, 2025[65]. - Provisions for slow-moving, obsolete, or excess inventory totaled $7.8 million for the three months ended June 30, 2025, compared to $14.0 million for the same period in 2024[76]. - The average selling prices of products generally decrease as they mature, influenced by competition and increased manufacturing efficiencies[71]. - The company has ceased new investments in Belarus and has qualified third-party vendors to supply components previously sourced from that region[66]. Cash Flow and Investments - Cash provided by operating activities decreased by $96.9 million to $11.2 million for the six months ended June 30, 2025, from $108.1 million in 2024[124]. - Net cash used in investing activities was $261.5 million for the six months ended June 30, 2025, compared to cash provided of $308.6 million in 2024[125]. - Net cash used in financing activities was $34.5 million for the six months ended June 30, 2025, down from $210.2 million in 2024[126]. - As of June 30, 2025, cash and cash equivalents were $359.2 million, down from $620.0 million at December 31, 2024[117]. - Short-term investments increased to $540.4 million as of June 30, 2025, from $310.2 million at December 31, 2024[117]. - The company expects to continue making investments in capital expenditures and assess acquisition opportunities[116]. Strategic Initiatives - The company plans to continue investing in research and development to enhance existing products and develop new technologies, with spending expected to remain at current or increased levels[78][79]. - The company continues to monitor international trade relations and their potential impact on operations and financial results[64]. - The company is vertically integrated, allowing for reduced manufacturing costs and better quality control[62].

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]