IPG Photonics(US:IPGP) Globenewswire·2025-05-06 12:00Core Insights - IPG Photonics Corporation reported a revenue of $227.8 million for Q1 2025, a decrease of 10% year-over-year, primarily due to lower sales in materials processing, although there was growth in medical and advanced applications [3][5] - The company's gross margin improved to 39.4%, up 70 basis points from the previous year, driven by lower inventory provisions and reduced unabsorbed expenses [6] - The book-to-bill ratio was above one, indicating strong order intake, and the company expects a revenue guidance of $210 million to $240 million for Q2 2025, impacted by potential shipment delays due to tariffs [7][8] Financial Performance - Revenue for Q1 2025 was $227.8 million compared to $252.0 million in Q1 2024, reflecting a 10% decline [3] - Operating income fell significantly to $1.8 million, down 91% from $19.1 million in the prior year, with a corresponding operating margin of 0.8% [3][6] - Net income decreased by 84% to $3.8 million, with earnings per diluted share dropping to $0.09 from $0.52 [3][6] Business Segments - Materials processing, which constitutes 86% of total revenue, saw a 14% decline year-over-year, primarily due to reduced sales in welding and cutting applications [5] - Sales in medical and advanced applications increased by 25% year-over-year, contributing positively to overall revenue [5] - Emerging growth products accounted for 51% of total revenue, up from 48% in the previous quarter [5] Regional Performance - Revenue in Asia increased by 8%, while North America and Europe experienced declines of 12% and 28%, respectively, year-over-year [5] Management Outlook - The management expressed confidence in the company's strategy to differentiate products and unlock new market opportunities, despite challenges posed by tariffs [4][7] - The anticipated adjusted gross margin for Q2 2025 is expected to be between 36% and 38%, factoring in the impact of tariffs [9]