Slide 1: Earnings Call Presentation Second Quarter 2025
Earnings Call Presentation Second Quarter 2025 August 5, 2025 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 '25 Summary
Q2 '25 Summary • Delivered results above expectations: $250.7M ◦ Modest demand improvement in industrial and e-mobility markets Revenue ◦ Strong growth in medical and advanced applications as we continued to execute on our strategy $31.5M ◦ Shipped $10M out of $15M in orders impacted by tariffs Adj.
Slide 4: Senior Leadership Team
Senior Leadership Team Timothy P.V. Mammen Andrey Mashkin Senior Vice President, Vice President, Chief Financial Officer GM Global Lasers Joined IPGP: 1999; Appointed to Role: 2000 Joined IPGP: 2000; Appointed to Role: 2025 Igor Samartsev, Ph.D. Jennifer Kartono Senior Vice President, Senior Vice Pr
Slide 5: Summary by Application
Summary by Application Welding – improved sequentially driven by share gains and increased demand in e-mobility and general industrial markets Cutting – showing some strength in Asia and North America, and stabilization in Europe Cleaning* – benefited from acquisition of cleanLASER Micromachining* -
Slide 6: Revenue by Geography
Revenue by Geography North America - sales improved sequentially driven by higher revenue in cutting, cleaning, medical and advanced applications Europe - sales were flat sequentially and down Y/Y primarily due to lower demand in cutting and welding applications and exit from Russia, partially offse
Slide 7: Financial Review
Financial Review In millions except per share Q2 '25 Q2 '24 Y/Y Q1 '25 Q/Q Lower sales year over year and higher operating expenses Revenue $250.7 $257.6 (3)% $227.8 10% reduced operating income Gross margin 37.3% 37.3% 39.4% Operating expenses excluding Fx Operating expenses, excluding $90.4 $81.6
Slide 8: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q2 '25 Cash and Short-term Investments $900 Inventories $304 Total Debt $— Net Income to IPG $7 Cash from Operations $(2) Depreciation and Amortization $16 Capital Expenditures $15 Stock Repurchases $30 Days Sales Outstanding 73 Q2 ‘25 Cash from operat
Slide 9: Q3 '25 Outlook
Q3 '25 Outlook ADDITIONAL DETAILS Revenue $225M - $255M Q2 book-to-bill was approximately 1 Adjusted Gross Margin 36% - 38% Revenue outlook includes assumptions of continued stabilization Operating Expenses $89M - $91M and improvement in the operating environment Adjusted EPS $0.05 - $0.35 Q3 gross
Slide 10: The World Leader in Fiber Lasers
VERTICAL THE WORLD INTEGRATION LEADER IN PROVIDES FIBER COMPETITIVE LASERS EDGE EXPANDING LASER & ENABLING DISPLACING GREATER NON-LASER AUTOMATION APPLICATIONS STRONG HIGH ELECTRICAL MARGINS, EFFICIENCY ENABLES BALANCE SHEET LOWER CUSTOMER & CASH FLOW ENERGY USE © 2025 IPG PHOTONICS 10
Slide 11: 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 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, except per share data) 2025 2024 2025 2024 Gross profit $ 93,573 $ 96,186 $ 183,385 $ 193,722 Gross margin 37.3 % 37.3 % 38.3 % 38.0 % Amortization of acquisition-related inta
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, except per share data) 2025 2024 2025 2024 Operating income $ 104 $ 12,040 $ 1,931 $ 31,140 Amortization of acquisition-related intangibles 2,594 1,377 5,096 2,802 Acquisition
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) 2025 2024 2025 2024 Net income $ 6,605 $ 20,154 $ 10,363 $ 44,253 Interest income, net (8,001) (12,778) (15,445) (26,955) Provision for income taxes 1,6
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, (In thousands, except per share data) 2025 2024 2025 2024 Net income $ 6,605 $ 20,154 $ 10,363 $ 44,253 Amortization of acquisition-related intangibles 2,594 1,377 5,096 2,802 Acquisition an
Slide 16: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Tax Rate 20 % 19 % 45 % 25 % Discrete tax items (3)% —% (26)% (3)% Net impact of non-GAAP adjustments (3)% 1% (2)% (1)% Adjusted tax Rate 14 % 20 % 17 % 21 % We define ad
Slide 17: Thank you
Thank you