IPG Photonics Corporation · NASDAQ:IPGP
IPG Photonics — Q3 2025 Earnings Presentation
16 slides from IPG Photonics's earnings presentation, Nov 4, 2025
Slide 1: Earnings Call Presentation Third Quarter 2025
Earnings Call Presentation Third Quarter 2025 November 4, 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: Q3 '25 Summary
Q3 '25 Summary • Delivered improved results: $250.8M ◦ Revenue up 8% (11% ex. divestitures) and Adj. EPS up 9% Y/Y, at the Revenue top end of the guidance ◦ Gross margin and Adj. EBITDA above expectations $37.0M ◦ Stable industrial demand, business wins and growth in battery production Adj. EBITDA ◦
Slide 4: Summary by Application
Summary by Application Welding – improved sequentially and Y/Y, driven by increased demand and business wins in battery manufacturing Cutting – demand stabilized and started shipping new generation of lasers to customers globally Cutting 21% Cleaning* – benefited from acquisition of Welding cleanLAS
Slide 5: Revenue by Geography
Revenue by Geography North America - sales improved Y/Y 122 driven by higher revenue in medical 117 106 and advanced applications, but declined sequentially due to the timing of orders In millions 74 57 62 60 57 63 Europe* - sales were up sequentially driven by welding applications and Y/Y, excludin
Slide 6: Financial Review
Financial Review In millions except per share Q3 '25 Q3 '24 Y/Y Q2 '25 Q/Q Higher gross margin Y/Y due to decrease in unabsorbed expenses Revenue $250.8 $233.1 8% $250.7 —% and lower inventory provisions, partially offset by higher product cost and tariffs Gross margin 39.5% 23.2% 37.3% Operating ex
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q3 '25 174 Cash and Short-term Investments $870 Long-term Investments $30 Inventories $324 99 In millions 75 Total Debt $— 61 47 Net Income to IPG $7 Cash from Operations $35 Depreciation and Amortization $16 -14 Capital Expenditures $21 YTD 2024 YTD 2
Slide 8: Q4 '25 Outlook
Q4 '25 Outlook ADDITIONAL DETAILS Q3 book-to-bill was approximately 1 Revenue $230M - $260M Revenue outlook includes Adjusted Gross Margin 36% - 39% assumptions of continued stable operating environment Operating Expenses $90M - $92M Q4 gross margin includes a current Adjusted EPS $0.05 - $0.35 esti
Slide 9: 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 9 © 2025 IPG PHOTONICS
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 September 30, Nine Months Ended September 30, (In thousands, except percentages) 2025 2024 2025 2024 Gross profit $ 99,005 $ 54,089 $ 282,390 $ 247,811 Gross margin 39.5 % 23.2 % 38.7 % 33.4 % Special Inventory Provision — 29
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Operating income (loss) $ 7,855 $ (253,346) $ 9,786 $ (222,206) Special inventory provisions — 29,884 — 29,884 Amortization of acquisition-relat
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2025 2024 2025 2024 Net income (loss) $ 7,463 $ (233,594) $ 17,826 $ (189,341) Interest income, net (7,283) (11,103) (22,728) (38,058) Provision for income taxes 8,
Slide 14: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, (In thousands, except per share data) 2025 2024 2025 2024 Net income (loss) $ 7,463 $ (233,594) $ 17,826 $ (189,341) Special inventory provisions — 29,884 — 29,884 Impairment of l
Slide 15: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Tax Rate 52 % 4% 48 % (3)% Discrete tax items (22)% (1)% (24)% —% Net impact of non-GAAP adjustments (3)% (2)% (3)% 20 % Adjusted tax Rate 27 % 1% 21 % 17 % We
Slide 16: Thank you
Thank you