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Dec 31, 2024
IPG Photonics Q4 2024 Earnings Report
Key Takeaways
IPG Photonics reported Q4 2024 revenue of $234.3 million, a 22% decline year-over-year, due to weaker sales in materials processing and medical applications. Net income decreased significantly to $7.8 million, an 81% drop. EPS fell 80% to $0.18. Operating income declined 51% to $14 million. The company generated strong cash flow from operations of $74 million and repurchased $57 million in shares.
IPG Photonics
IPG Photonics
IPG Photonics Revenue by Segment
IPG Photonics Revenue by Geographic Location
Revenue by Segment
Materials Processing Revenue
CapyFin.comOther Applications Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com Forward Guidance
IPG expects Q1 2025 revenue between $210M and $240M, with gross margin between 36% and 39%. Operating expenses projected at $82M to $84M. Adjusted EPS forecasted between $0.05 and $0.35.
Positive Outlook
- Strong balance sheet supports strategic investments.
- Improved gross margin due to lower product and shipping costs.
- Emerging growth products now account for 48% of total revenue.
- Investments in long-term growth expected to deliver results in 2026.
- Resilient performance in Japan with 15% revenue growth.
Challenges Ahead
- Global industrial demand remains subdued.
- Book-to-bill ratio slightly below 1, indicating weaker order inflows.
- Revenue declined in key regions including North America and China.
- Operating margin dropped due to lower absorption of manufacturing costs.
- Effective tax rate increased to 64%, impacting net earnings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income