Slide 1: Earnings Call Presentation Fourth Quarter 2025
Earnings Call Presentation Fourth Quarter 2025 February 12, 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: Q4'25 Summary
Q4'25 Summary • Delivered improved results: $274M ◦ Revenue, adjusted EBITDA and adjusted EPS were up YoY and Revenue above the high end of the guidance range ◦ Higher revenue was driven by growth across materials processing, medical and advanced applications $41M ◦ Stable industrial demand, new bus
Slide 4: Summary by Application
Summary by Application Welding – Increased YoY and was slightly higher sequentially, driven by stronger demand in battery manufacturing Cutting – Demand stabilized YoY and improved Cutting sequentially as we started shipping a new generation 17% of lasers to customers globally Welding 35% Marking an
Slide 5: Revenue by Geography
Revenue by Geography 128 North America – Strong sequential 122 and YoY growth was driven by higher 108 revenue in cutting, cleaning, medical and advanced applications In millions 75 61 62 64 63 68 Europe – Revenue was up sequentially and YoY, driven by increased sales in additive manufacturing and c
Slide 6: Financial Review
Financial Review QoQ decline in gross margin was In millions except per share Q4'25 Q4'24 Y/Y Q3'25 Q/Q due to underabsorption of fixed Revenue $274.5 $234.3 17% $250.8 9% costs as we managed inventory levels Gross margin 36.1% 38.6% 39.5% Lower gross margin YoY due to higher product cost and tariff
Slide 7: Balance Sheet and Cash Flow Summary
Balance Sheet and Cash Flow Summary In millions Q4'25 248 Cash and Short-term Investments $839 Long-term Investments $77 149 Inventories $313 In millions 99 Total Debt $— 75 79 Net Income to IPG $13 Cash from Operations $29 -4 Depreciation and Amortization $20 Capital Expenditures $18 YTD 2024 YTD 2
Slide 8: Q1 '26 Outlook
Q1 '26 Outlook ADDITIONAL DETAILS Revenue $235M - $265M Q4 book-to-bill was firmly above 1 Adjusted Gross Margin 37% - 39% Revenue outlook includes assumptions of continued stable Operating Expenses $90M - $92M operating environment Adjusted EPS $0.10 - $0.40 Q1 gross margin guidance includes curren
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 December 31, Twelve Months Ended December 31, (In thousands, except percentages) 2025 2024 2025 2024 Gross profit $ 99,073 $ 90,344 $ 381,463 $ 338,155 Gross margin 36.1 % 38.6 % 38.0 % 34.6 % Special Inventory Provision — —
Slide 12: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, (In thousands) 2025 2024 2025 2024 Operating income (loss) $ 3,318 $ 13,952 $ 13,104 $ (208,254) Special inventory provisions — — — 29,884 Amortization of acquisition-related inta
Slide 13: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, (In thousands) 2025 2024 2025 2024 Net income (loss) $ 13,270 $ 7,815 $ 31,096 $ (181,526) Interest income, net (7,129) (7,409) (29,857) (45,467) Provision for income taxes (2,714
Slide 14: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, (In thousands, except per share data) 2025 2024 2025 2024 Net income (loss) $ 13,270 $ 7,815 $ 31,096 $ (181,526) Special inventory provisions — — — 29,884 Impairment of long-live
Slide 15: Appendix: Reconciliation of Non-GAAP Financial Measures
Appendix: Reconciliation of Non-GAAP Financial Measures Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 2025 2024 Tax Rate (26)% 64 % 31 % (12)% Discrete tax items 23 % (14)% (13)% 2% Net impact of non-GAAP adjustments 19 % (4)% 2% 35 % Adjusted tax Rate 16 % 46 % 20 % 25
Slide 16: Thank you
Thank you