IPG Photonics(IPGP) - 2025 Q1 - Quarterly Results

Revenue Performance - First quarter 2025 revenue was $227.8 million, a decrease of 10% year-over-year from $252.0 million in Q1 2024[2]. - Materials processing sales, which accounted for 86% of total revenue, decreased by 14% year-over-year, while sales in medical and advanced applications increased by 25%[4]. - For Q2 2025, the company expects revenue between $210 million and $240 million, reflecting a potential $15 million impact from shipment delays due to tariffs[7]. Profitability Metrics - Gross margin improved to 39.4%, up 70 basis points year-over-year, while operating income fell to $1.8 million, down 91% from $19.1 million[2][5]. - Net income for the first quarter was $3.8 million, an 84% decline compared to $24.1 million in the same period last year[2][4]. - Adjusted EBITDA was $32.7 million, a 19% decrease from $40.3 million in Q1 2024, with adjusted earnings per diluted share at $0.31, down 38% year-over-year[2][5]. - Adjusted gross profit for Q1 2025 was $91,050,000, down from $98,024,000 in Q1 2024, a decrease of about 7.5%[30]. - Adjusted net income for Q1 2025 was $13,128,000, down from $23,159,000 in Q1 2024, a decrease of about 43.4%[33]. Cash Flow and Investments - Cash generated from operations in Q1 was $13 million, with capital expenditures amounting to $25 million[5]. - Cash and cash equivalents at the end of Q1 2025 were $363,046,000, down from $496,452,000 at the end of Q1 2024, a decrease of approximately 26.8%[17]. - Net cash provided by operating activities in Q1 2025 was $13,445,000, down from $54,596,000 in Q1 2024, a decline of approximately 75.5%[17]. - The company incurred $333,009,000 in purchases of short-term investments in Q1 2025, compared to $226,521,000 in Q1 2024, an increase of about 47%[17]. - The company experienced a net decrease in cash and cash equivalents of $256,994,000 in Q1 2025, compared to a decrease of $18,222,000 in Q1 2024[17]. Market Trends - The book-to-bill ratio was above one, indicating strong order momentum entering Q2 2025[6]. - The company reported a 28% year-over-year decline in sales in Europe, while sales in Asia increased by 8%[4]. Tax and Adjustments - The adjusted tax rate for Q1 2025 was 21%, compared to 23% in Q1 2024, showing a decrease of 2 percentage points[34]. - Adjusted EBITDA for Q1 2025 was $32,681,000, compared to $40,270,000 in Q1 2024, reflecting a decline of approximately 19.0%[32].