Ipg Photonics Corporation · NASDAQ:IPGP
Ipg Photonics — Q1 2025 Earnings Presentation
17 slides from Ipg Photonics's earnings presentation, May 6, 2025
Slide 1: Earnings Call Presentation First Quarter 2025
Earnings Call Presentation First Quarter 2025 May 6, 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: Q1 '25 Summary
Q1 '25 Summary • Revenue increased in key areas that are central to our strategy, including micromachining, medical and advanced applications ◦ Total revenue decreased 10% YoY with lower sales in cutting and welding applications offsetting growth in other materials processing applications, medical a
Slide 4: Financial Review
Financial Review In millions except per share Q1 '25 Q1 '24 Y/Y • Lower sales and higher operating expenses Revenue $227.8 $252.0 (10)% reduced operating income ◦ Q1 '24 operating income benefitted Gross margin 39.4% 38.7% from a $6.8 million gain on disposal Operating income $1.8 $19.1 (91)% of fix
Slide 5: Summary by Application
Summary by Application • Welding – was more stable sequentially with share gains and some demand improvement in handheld and e-mobility • Cutting – revenue continued to decline due to Cutting softer industrial demand and increased competition, but saw some strength in certain Welding and brazing geo
Slide 6: Revenue by Geography
Revenue by Geography 100 200 80 150 In millions In millions 60 100 40 50 20 0 0 North America Europe China Other Asia China RoW Q1 '24 Q4 '24 Q1 '25 Q1 '24 Q4'24 Q1 '25 • Sales declined YoY in North America due to lower revenue in cutting and welding applications • European sales declined primarily
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q1 '25 Cash and Short-term Investments $927 • Strong balance sheet with $927 million in cash and short-term investments Inventories $288 • 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 100.0 100.0 1000 50.0 50.0 In millions In millions In millions 500 .0 0.0 -50.0 -50.0 0 YTD 2024 YTD 2025 Dec 2024 Mar 2025 Cash and cash equivalents Cash from operations CapEx Free cash flow Short-term investments • Maintaining an exceptional balance sheet wit
Slide 9: Financial Guidance
Financial Guidance Q2 '25 Outlook Revenue $210M - $240M Adjusted Gross Margin 36% - 38% Operating Expenses $86M - $88M Adjusted EPS -$0.05 - $0.25 Adjusted EBITDA $16M - $31M Tax Rate ~25% Diluted common shares ~43M • Q1 book-to-bill was above 1 • Revenue outlook includes approximately $15 million t
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 © 2025 IPG PHOTONICS
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 March 31, (In thousands, except per share data) 2025 2024 Gross profit $ 89,812 $ 97,536 Gross margin 39.4 % 38.7 % Amortization of acquisition-related intangibles 1,016 488 Acquisition and integration charges 222 — Adjusted
Slide 13: 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) 2025 2024 Operating income $ 1,827 $ 19,100 Amortization of acquisition-related intangibles 2,502 1,425 Acquisition and integration charges 991 — Loss on foreign exchange 2,411
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) 2025 2024 Net income $ 3,758 $ 24,099 Interest income, net (7,444) (14,177) Provision for income taxes 6,857 9,503 Depreciation 11,556 13,927 Amortization 3,785 2,287 EBITDA 18,
Slide 15: 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) 2025 2024 Net income $ 3,758 $ 24,099 Amortization of acquisition-related intangibles 2,502 1,425 Acquisition and integration charges 991 — Loss on foreign exchange 2,411 1,675
Slide 16: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2025 2024 Tax Rate 65 % 28 % Discrete tax items (43)% (6)% Net impact of non-GAAP adjustments (1)% 1% Adjusted tax Rate 21 % 23 % We define adjusted tax rate as the GAAP tax rate, adjusted for discrete tax items and
Slide 17: Thank you
Thank you