Slide 1: Earnings Call Presentation
EARNINGS CALL PRESENTATION First Quarter 2026 May 5, 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: Revenue by Application Changes
Revenue by Application Changes Beginning in the first quarter, the Company revised its revenue disaggregation by application into two categories: Industrial Solutions and Advanced Solutions. This structure better reflects the Company's strategic growth initiatives and provides a clearer separation b
Slide 4: Q1'26 Summary
Q1'26 Summary Delivered double-digit revenue growth YoY, driven by improved demand in Industrial Solutions $265M Revenue • Industrial Solutions: Strong growth in welding and cutting sales, driven by higher demand in battery manufacturing $35M • Advanced Solutions: Growth in medical and semiconductor
Slide 5: Revenue by Application
Revenue by Application Q1'26 Q1'25 Y/Y Q4'25 Q/Q YoY growth was driven by welding, Industrial cutting, marking, and cleaning; revenue was nearly flat QoQ $227.6M $188.0M 21% $231.0M -1% Solutions YoY decrease in revenue was due to lower micromachining and defense sales Advanced offsetting growth in
Slide 6: Revenue by Geography
Revenue by Geography North America Sales increased YoY, driven by higher revenue in 128 128 welding, cutting, additive manufacturing, and 113 medical; sales decreased slightly QoQ, mostly in cleaning and medical In millions 75 72 68 59 Europe 56 57 YoY growth was driven by increased revenue in cutti
Slide 7: Financial Review
Financial Review In millions except per share Q1'26 Q1'25 Y/Y Q4'25 Q/Q Revenue $265.5 $227.8 17% $274.5 (3)% Revenue increased YoY, marking a second Gross margin 37.5% 39.4% -190bps 36.1% +140bps consecutive quarter of double-digit revenue growth Adjusted gross margin 37.8% 40.0% -220bps 37.6% +20b
Slide 8: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q1'26 25 Cash and Short-term Investments $813 16 13 Long-term Investments $71 Inventories $319 In millions Total Debt $— Net Income to IPG $2 -6 Cash from Operations $(5) -12 Depreciation and Amortization $16 -22 Capital Expenditures $16 Stock Repurcha
Slide 9: Q2 '26 Outlook
Q2 '26 Outlook ADDITIONAL DETAILS Revenue $260M - $290M Q1 book-to-bill was firmly above 1 Adjusted Gross Margin 37% - 40% Ajdusted Operating Expenses $92M - $95M We remain cautiously optimistic, and our revenue outlook factors in Adjusted EPS $0.25 - $0.55 assumptions of a generally stable operatin
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 March 31, (In thousands, except percentages) 2026 2025 Gross profit $ 99,499 $ 89,812 Gross margin 37.5 % 39.4 % Amortization of acquisition-related intangibles 852 1,016 Acquisition and integration charges — 222 Adjusted gro
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, (In thousands) 2026 2025 Operating income (loss) $ (7,736) $ 1,827 Amortization of acquisition-related intangibles 2,089 2,502 Restructuring charges 66 — Acquisition and integration charges 906 991 Settlement and fe
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, (In thousands) 2026 2025 Net income (loss) $ 1,584 $ 3,758 Interest income, net (6,922) (7,444) Provision for income taxes (565) 6,857 Depreciation 12,747 11,556 Amortization 3,145 3,785 EBITDA 9,989 18,512 Stock ba
Slide 14: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, (In thousands, except per share data) 2026 2025 Net income (loss) $ 1,584 $ 3,758 Amortization of acquisition-related intangibles 2,089 2,502 Restructuring charges 66 — Acquisition and integration charges 906 991 Se
Slide 15: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2026 2025 Tax Rate (55)% 65 % Discrete tax items 110 % (43)% Net impact of non-GAAP adjustments (25)% (1)% Adjusted tax Rate 30 % 21 % We define adjusted tax rate as the GAAP tax rate, adjusted for discrete tax item
Slide 16: Contact
Contact Eugene Fedotoff Senior Director, Investor Relations IPG Photonics Corporation 508-597-4713 efedotoff@ipgphotonics.com