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Mar 31, 2025
IPG Photonics Q1 2025 Earnings Report
Reported financial results for the first quarter ended March 31, 2025
Key Takeaways
IPG Photonics reported a decline in revenue and net income for the first quarter of 2025 compared to the prior year, primarily due to lower sales in materials processing. However, the company saw growth in medical and advanced applications and achieved revenue, adjusted EPS, and adjusted EBITDA above the midpoint of their guidance. The book-to-bill ratio was above one, indicating positive bookings momentum.
Revenue for Q1 2025 was $227.8 million, a 10% decrease year over year.
GAAP diluted EPS was $0.09, an 83% decrease year over year.
Non-GAAP adjusted diluted EPS was $0.31, a 38% decrease year over year.
Materials processing sales decreased 14% year over year, while other applications sales increased 25%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the second quarter of 2025, IPG expects revenue between $210 million and $240 million, adjusted gross margin between 36% and 38%, operating expenses between $86 million and $88 million, adjusted earnings per diluted share in the range of -$0.05 to $0.25, and adjusted EBITDA in the range of $16 million to $31 million.
Positive Outlook
- Book-to-bill ratio was solidly above one in Q1.
- Entering Q2 with strong outlook given bookings momentum.
- Company expects to fulfill orders delayed by tariffs as production is optimized across its global footprint.
- Company continues to invest in future growth.
- Able to take advantage of global manufacturing footprint and supply chain to mitigate tariff impact.
Challenges Ahead
- Revenue guidance is approximately $15 million lower due to potential shipment delays related to tariffs.
- Adjusted gross margin is expected to include 150 to 200 basis points of impact from tariffs.
- Recent tariffs have caused uncertainty related to the timing of shipments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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