Slide 1: Earnings Call Presentation Second Quarter 2026
EARNINGS CALL PRESENTATION Second Quarter 2026 August 4, 2026 10:00 am ET By phone 877-407-6184 in the US or 201-389-0877 internationally A live webcast of the call will be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com
Slide 2: Note Regarding Forward-Looking Statements and Use of Non-GAAP Financials
Note Regarding Forward-Looking Statements and Use of Non-GAAP Financials Information and statements provided by IPG and its employees, including statements in this presentation, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and unce
Slide 3: Q2'26 Summary
Q2'26 Summary Delivered double-digit revenue growth YoY and QoQ $279M improvement, driven by increased demand in Industrial Solutions Revenue • Industrial Solutions: Strong growth in welding sales, driven by higher demand in battery manufacturing • Advanced Solutions: Growth in semiconductor sales,
Slide 4: Lumibird Medical: Acquiring to Expand Medical Laser Growth Platform
Accelerates IPG's strategic evolution Expands the Advanced Solutions portfolio into higher-growth and higher-margin medical markets with durable demand Lumibird Medical Delivers financial benefits Acquiring to Expand Medical Adds a high-margin business that is expected to be accretive Laser Growth P
Slide 5: Revenue by Application
Revenue by Application Q2'26 Q2'25 Y/Y Q1'26 Q/Q YoY growth was driven by welding, Industrial marking, cleaning, and additive $237.0M manufacturing. Sequential growth $204.9M 16% $227.6M 4% Solutions was driven by welding and cleaning. YoY decrease due to lower Advanced micromachining and defense sa
Slide 6: Revenue by Geography
Revenue by Geography North America 139 Revenue decreased slightly YoY on lower 128 cutting, medical, and defense sales. Sequential 117 growth was driven by marking and defense. In millions Europe 74 72 72 YoY growth was driven by increased revenue 59 59 in cleaning and additive manufacturing. 57 Rev
Slide 7: Financial Review
Financial Review Revenue increased YoY, marking a third consecutive quarter of double-digit revenue growth. In millions except per share Q2'26 Q2'25 Y/Y Q1'26 Q/Q Revenue $278.6 $250.7 11% $265.5 5% GAAP and adjusted gross margin improved on both a YoY and sequential basis, driven by lower product G
Slide 8: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q2'26 40 37 32 Cash and Short-term Investments $871 Long-term Investments $33 In millions 11 Inventories $331 Total Debt $— Net Income to IPG $5 -5 Cash from Operations $38 Depreciation and Amortization $16 -29 Capital Expenditures $21 YTD 2025 YTD 202
Slide 9: Q3 '26 Outlook
Q3 '26 Outlook ADDITIONAL DETAILS Revenue $265M - $295M Q2 book-to-bill was above 1 Adjusted Gross Margin 37.5% - 40.5% Adjusted Operating Expenses $92M - $95M Our revenue outlook factors in assumptions of a generally Adjusted EPS $0.30 - $0.60 stable operating environment Adjusted EBITDA $35M - $51
Slide 10: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Use of Non-GAAP Adjusted Financial Information We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”) and are provided as supplemental information to enhance understa
Slide 11: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, (In thousands, except percentages) 2026 2025 2026 2025 Gross profit $ 112,524 $ 93,573 $ 212,023 $ 183,385 Gross margin 40.4 % 37.3 % 39.0 % 38.3 % Amortization of acquisition-related intang
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Operating income (loss) $ 4,531 $ 104 $ (3,205) $ 1,931 Amortization of acquisition-related intangibles 2,021 2,594 4,110 5,096 Restructuring charges 285 —
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2026 2025 2026 2025 Net income (loss) $ 5,242 $ 6,605 $ 6,826 $ 10,363 Interest income, net (7,110) (8,001) (14,032) (15,445) Provision for income taxes 7,299 1,666 6,734 8,52
Slide 14: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share data) 2026 2025 2026 2025 Net income (loss) $ 5,242 $ 6,605 $ 6,826 $ 10,363 Impairment charges 17,574 — 17,574 — Amortization of acquisition-related intangib
Slide 15: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Tax Rate 58 % 20 % 50 % 45 % Discrete tax items (5)% (3)% 12 % (26)% Net impact of non-GAAP adjustments (24)% (3)% (33)% (2)% Adjusted tax Rate 29 % 14 % 29 % 17 % We def
Slide 16: Contact
Contact Eugene Fedotoff Senior Director, Investor Relations IPG Photonics Corporation 508-597-4713 efedotoff@ipgphotonics.com