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Mar 31, 2022

IPG Photonics Q1 2022 Earnings Report

Growth driven by higher demand across diverse applications and geographies, enhanced by solid performance in electric vehicle applications and emerging growth products.

Key Takeaways

IPG Photonics reported a solid first quarter with revenue growth driven by increased demand across various applications in Europe, North America, and Japan. The company's diversification strategy, particularly in electric vehicle production, handheld welding, and medical products, contributed to the results. China's share of revenue decreased to 35% this quarter.

First quarter revenue increased 7% year over year to $370 million.

Earnings per diluted share (EPS) increased by 4% year over year to $1.31.

Sales increased 27% in Europe, 5% in North America, and 18% in Japan, and decreased 7% in China on a year-over-year basis.

Materials processing sales accounted for 92% of total revenue and increased 7% year over year.

Total Revenue
$370M
Previous year: $346M
+7.1%
EPS
$1.31
Previous year: $1.26
+4.0%
Gross Margin
46.4%
Previous year: 47.5%
-2.3%
Operating Margin
25.2%
Previous year: 25.7%
-1.9%
Cash from Operations
$16M
Previous year: $88M
-81.8%
Gross Profit
$172M
Previous year: $164M
+4.8%
Cash and Equivalents
$643M
Previous year: $897M
-28.3%
Free Cash Flow
-$8.75M
Previous year: $60.1M
-114.6%
Total Assets
$3.1B
Previous year: $2.98B
+3.9%

IPG Photonics

IPG Photonics

IPG Photonics Revenue by Segment

Forward Guidance

For the second quarter of 2022, IPG expects revenue of $355 to $385 million and earnings per diluted share in the range of $0.95 to $1.25. The Company expects the second quarter tax rate to be approximately 26%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income