Core Insights - The company achieved record total revenue of $821 million for FY2025, a 14% increase year-over-year, with Q4 revenue reaching $275 million, up 40% compared to the previous year [4][19][37] - Total bookings for FY2025 amounted to $1.2 billion, indicating strong demand for the company's core offerings [4][15] - The funded backlog at the end of FY2025 was $726 million, an 82% increase from the prior fiscal year [4][15] - The company secured a nearly $1 billion five-year U.S. Army IDIQ sole-source contract, marking the largest contract in its history [4][6] - International revenue accounted for 52% of total revenue in FY2025, with non-Ukraine European customers contributing over 24% [4][20] Financial Performance - Adjusted EBITDA for Q4 FY2025 was $61.6 million, significantly up from $22.2 million in the same quarter last year, and $146.4 million for the full fiscal year, representing 17.8% of revenue [4][22] - GAAP net income for Q4 FY2025 was $16.7 million, an increase of $10.6 million year-over-year, while full-year GAAP net income was $43.6 million, down $16 million due to various impairments and costs [5][28] - Adjusted EPS for Q4 FY2025 was $1.61, compared to $0.43 for the same period in FY2024 [8][28] Segment Performance - Loitering Munitions Systems (LMS) revenue rose 87% to $138 million in Q4 FY2025 and 83% to $352 million for the full fiscal year [4][17] - The UXS segment reported Q4 revenue of $113 million, a nearly 9% increase, while full-year revenue was slightly lower at $382 million [4][17] - McCready Works segment revenue increased 24% to $24 million in Q4 FY2025, with full-year revenue at $87 million, a 14% increase [4][17] Strategic Initiatives - The company closed the acquisition of Blue Halo, enhancing its position in the defense technology sector with a comprehensive portfolio across multiple domains [15][38] - FY2026 revenue guidance is set between $1.9 billion and $2 billion, with adjusted EBITDA expected to be between $300 million and $320 million [8][33] - The company plans to operate under two distinct business segments starting in FY2026: Autonomous Systems and Space Cyber Directed Energy [18][31] Market Outlook - The company anticipates strong organic growth driven by increased demand for its innovative solutions, particularly in the U.S. Department of Defense sector [6][9] - The P550 and Red Dragon products are expected to generate significant revenue in the coming years, with initial orders anticipated soon [9][53] - The company is well-positioned to capitalize on emerging global defense priorities, with a focus on delivering next-generation solutions [18][39]

Financial Data and Key Metrics Changes - The company achieved record fiscal year revenue of $821 million, which is 14% higher than the prior year period, and record fourth quarter revenues of $275 million, which is 40% higher than the prior year period [7][38] - The total bookings for fiscal year 2025 reached $1.2 billion, indicating robust demand for the company's solutions [7][39] - The funded backlog at the end of fiscal year 2025 was $726 million, which is 82% higher than the prior fiscal year [7][39] - Adjusted EBITDA for Q4 was $61.6 million, up from $22.2 million in the previous year, driven by higher revenue and gross margins [24] - Full year adjusted EBITDA was $146.4 million, representing 17.8% of revenue, a 15% increase over FY 2024 [24] Business Segment Data and Key Metrics Changes - The Loitering Munition Systems (LMS) segment saw revenues for Q4 rise 87% to $138 million, with full fiscal year revenues of $352 million, an 83% increase [11] - The Uncrewed Systems (UXS) segment posted Q4 revenues of $113 million, a nearly 9% increase year-over-year, while full year revenues were slightly lower at $382 million [12] - The McCready Works segment reported Q4 revenues of $24 million, a 24% increase, with full year revenues of $87 million, which was 14% higher than the prior year [16] Market Data and Key Metrics Changes - 52% of the company's revenues were from international customers, with over 24% coming from non-Ukraine European customers [23] - The company received orders from eight countries for Switchblade products worth nearly $250 million in FY 2025 [23] Company Strategy and Development Direction - The company closed the acquisition of BlueHalo, enhancing its position as a defense tech leader with a comprehensive portfolio across air, land, sea, space, and cyber [7][39] - Starting in fiscal year 2026, the company will operate under two distinct business segments: Autonomous Systems and Space, Cyber, and Directed Energy [18][32] - The company plans to continue investing in R&D, having invested nearly $2 billion over the past decade to develop disruptive solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to meet rising demands from the U.S. Department of Defense and its allies, particularly in loitering munitions and autonomous systems [49][90] - The company anticipates strong organic growth in fiscal year 2026 and beyond, with revenue guidance set between $1.9 billion and $2 billion [7][39] Other Important Information - The company expects adjusted gross margins in the range of 29% to 31% for fiscal year 2026 [34] - The company plans to invest in expanding its manufacturing capacity to meet increased demand for its products [12][63] Q&A Session Summary Question: Discussion on Army's transformation initiative and its impact on Switchblade orders - Management highlighted the strong growth in the Switchblade business and expressed optimism about additional opportunities stemming from the Army's modernization efforts [45][49] Question: Inquiry about write-downs in unfunded backlog related to foreign military sales - Management confirmed there were no write-downs related to the LMS business or foreign military sales in the quarter [52][53] Question: Market opportunity for P550 and Red Dragon - Management indicated strong market potential for both products, with expectations for initial orders and significant future revenue generation [61][64] Question: Clarification on revenue guidance and visibility - Management explained that the guidance reflects a range of potential outcomes based on timing of contracts and funding approvals from the U.S. Department of Defense [74][86] Question: Assessment of NATO's potential 5% GDP spending pledge - Management noted that increased international demand for their systems is expected, particularly in Europe, due to ongoing global security challenges [105]

nLIGHT (LASR) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 I would now like to turn the conference over to John Marchetti, VP of Corporate Development and Head of Investor Relations. Speaker1 Thank you, and good afternoon, everyone. I'm John Marchetti, nLIGHT's VP of Corporate Development and Head of Investor Relations. With me on the call today are Scott Keeney, nLIGHT's Chairman and CEO and Joe Corso, nLIGHT's CFO. Today's discussion will contain forward looking statements, including financial ...