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Jun 30
IPG Photonics Q2 2025 Earnings Report
IPG Photonics announced second quarter 2025 financial results, with revenue exceeding expectations due to demand recovery and strategic initiatives.
Key Takeaways
IPG Photonics reported second quarter 2025 results that surpassed expectations, with revenue improving sequentially driven by modest demand recovery in general industrial and e-mobility markets. Excluding divestitures, this marked the first year-over-year revenue increase since 2022, supported by growth in medical and advanced applications. Despite a decrease in GAAP operating income and net income, the company's strategic initiatives and strong bookings, with a book-to-bill ratio of approximately one, indicate positive momentum.
Second quarter revenue of $250.7 million exceeded expectations, showing sequential improvement and a year-over-year increase excluding divestitures.
Gross margin remained flat year-over-year at 37.3%, while adjusted gross margin improved to 37.8%.
Operating income significantly decreased by 99% year-over-year to $0.1 million, and net income fell by 67% to $6.6 million.
Adjusted EBITDA was $31.5 million and adjusted diluted EPS was $0.30, reflecting non-GAAP adjustments.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.com Forward Guidance
For the third quarter of 2025, IPG expects revenue between $225 million and $255 million, adjusted gross margin between 36% and 38%, and operating expenses of $89 million to $91 million. Adjusted earnings per diluted share are anticipated to be in the range of $0.05 to $0.35, and adjusted EBITDA between $22 million and $36 million.
Positive Outlook
- Continued demand into the third quarter despite tariff uncertainty.
- Successful adaptation to the current operating environment.
- Leveraging flexible global manufacturing footprint and supply chain capabilities to address tariffs.
- Book-to-bill ratio of approximately one in Q2, indicating strong bookings.
- Strategic initiatives are yielding results, including higher revenue in medical and strong growth in advanced applications.
Challenges Ahead
- Uncertainty related to tariffs poses a risk to the outlook.
- Potential for trade policy changes and trade restrictions.
- Risks associated with product demand, order cancellations, and delays.
- Competitive factors, including declining average selling prices.
- Currency fluctuations and general economic conditions could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income