Slide 1: Earnings Call Presentation Fourth Quarter 2024
Earnings Call Presentation Fourth Quarter 2024 February 11, 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: Q4 '24 Summary
Q4 '24 Summary • Revenue improved slightly sequentially on higher sales in medical and advanced applications, but declined year over year due to lower revenue in materials processing ◦ Total revenue decreased 22% YoY with lower sales in welding and cutting applications, due to soft demand in general
Slide 4: Financial Review
Financial Review In millions except per share Q4 '24 Q4 '23 Y/Y Q3 '24 Q/Q • Lower sales reduced operating income, but were partially offset Revenue $234.3 $298.9 (22)% $233.1 1% by improved gross margin and lower operating expenses • FX transaction gain increased Gross margin 38.6% 38.2% 23.2% oper
Slide 5: Summary by Application
Summary by Application • Welding – continues to be negatively impacted by lower sales to general industrial and e-mobility markets • Cutting – revenue declined due to softer industrial Cutting demand and increased competition Welding and brazing • Medical – revenue grew sequentially in Q4, reboundin
Slide 6: Revenue by Geography
Revenue by Geography 100 250 80 200 In millions 150 In millions 60 40 100 50 20 0 0 North America Europe China Other Asia China RoW Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24 Q4 '24 • Sales declined YoY in North America due to lower revenue in welding applications • European sales declined primarily due to
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q4 '24 Cash and Short-term Investments $930 • Strong balance sheet with $930 million in cash and short-term investments Inventories $285 • Continued to focus on inventory control Total Debt $— • Capital Allocation ◦ Investing in business to drive futur
Slide 8: Balance Sheet and Cash Flow Generation
Balance Sheet and Cash Flow Generation 350 350 1,500 300 300 250 250 200 200 1,000 In millions 150 150 In millions In millions 100 100 50 50 500 0 0 -50 -50 -100 -100 -150 -150 0 2023 2024 Dec 2023 Dec 2024 Cash and cash equivalents Cash from operations CapEx Free cash flow Short-term investments •
Slide 9: Financial Guidance
Financial Guidance Q1 '25 Outlook Revenue $210M - $240M Gross Margin 36% - 39% Operating Expenses $82M - $84M Adjusted EPS $0.05 - $0.35 Adjusted EBITDA $19M - $35M Tax Rate ~28% Diluted common shares ~43M • Q4 book-to-bill was slightly below 1 9 © 2024 IPG PHOTONICS 9
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 10 © 2024 IPG PHOTONICS
Slide 11: Thank you
Thank you