Coherent Details Growth Strategy and Long-Term Financial Model at 2025 Analyst and Investor Day

Rhea-AI Summary

Coherent Corp (NYSE: COHR) presented its long-term growth strategy and financial outlook at its 2025 Analyst and Investor Day. The company expects revenue growth of over 22% and EPS increase of 2.8X YoY in FY25. Key highlights include the company's focus on AI Datacenter opportunities in optical transceivers and components, presented by CTO Dr. Julie Sheridan Eng. EVP Chris Dorman outlined growth opportunities in Industrial markets, including semiconductor capital equipment, display equipment, and precision manufacturing. CFO Sherri Luther discussed financial priorities, focusing on profitable revenue growth and introducing new market-aligned segmentation. The company aims to drive double-digit revenue growth in key markets while expanding gross margins and EPS.

Positive

• Revenue expected to grow over 22% in FY25
• EPS projected to increase 2.8X year-over-year in FY25
• Strong market position in AI Datacenter optical components
• Diverse portfolio across industrial, communications, electronics markets

Negative

• Significant debt burden from previous Coherent Inc. acquisition
• Exposure to market demand fluctuations
• Competitive pressures in product development and releases

Insights

Financial Analyst

Coherent reveals strong 22% revenue growth, 2.8X EPS increase for FY25, and strategic focus on high-growth AI datacenter market.

Coherent's Analyst Day reveals an impressive financial trajectory with 22% revenue growth and 2.8X EPS growth expected for FY25. These metrics significantly outpace industry averages and signal strong execution following their acquisition strategy. The company's pivot toward high-growth segments, particularly AI datacenters, positions them at the intersection of two powerful tailwinds: the AI computing boom and the corresponding demand for advanced optical technologies that enable high-bandwidth, low-latency connections.

The emphasis on optical transceivers, components, and switching for AI datacenters represents a strategic alignment with one of technology's fastest-growing sectors. What's particularly notable is Coherent's comprehensive approach - they're not just participating in this market but leveraging their "broad and deep optical technology and product portfolio" to capture value across multiple layers of the AI infrastructure stack.

The company's diversification across industrial applications (semiconductor capital equipment, display manufacturing, precision manufacturing) provides revenue stability while the high-growth AI segment drives expansion. Their new market-aligned segmentation reporting structure should provide investors with clearer visibility into performance across these distinct business units.

The CFO's emphasis on "accelerating profitable revenue growth" suggests a disciplined approach to expansion rather than growth at any cost. This balanced focus on both top-line growth and margin expansion indicates a maturing business model targeting sustainable profitability, not just scale. The company's projected ability to maintain double-digit growth while simultaneously expanding margins points to operational leverage and strong competitive positioning in high-value markets.

SAXONBURG, Pa., May 28, 2025 (GLOBE NEWSWIRE) -- Global photonics leader Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”) today detailed its long-term growth strategy, key areas of product and technology investment, and target long-term financial model at its 2025 Analyst and Investor Day at the New York Stock Exchange. Investors can access a webcast replay of the event and a copy of the presentation on the Company’s Investor Relations website.

Jim Anderson, CEO, said, “Our team has made significant progress over the past fiscal year, with revenue expected to grow by over 22% and EPS expected to increase by 2.8X YoY in FY25. Although we’re pleased with our progress, there is much more opportunity ahead of us as we focus on our long-term goals of driving double-digit revenue growth in our key markets, such as AI Datacenters, expanding our gross margin and EPS, and continuing to unlock additional value for shareholders.”

Analyst and Investor Day Presentation Highlights

Dr. Julie Sheridan Eng, Chief Technology Officer, highlighted Coherent’s market opportunity in optical transceivers and components for AI Datacenters, the company’s broad and deep optical technology and product portfolio, its market-leading roadmap for pluggable and CPO transceivers, the optical switching market opportunity, and our industry-leading DCI roadmap.

Dr. Chris Dorman, Executive Vice President, Lasers, detailed Coherent’s Industrial market opportunity and key growth drivers across a broad spectrum of market segments, including semi cap and display equipment, precision manufacturing, and instrumentation.

Sherri Luther, CFO, outlined the Company’s key financial priorities, focus on accelerating profitable revenue growth, investment strategy, and improved financial target model, and disclosed the organization’s new segmentation to better align with its end markets and strategy.

Forward-Looking Statements

This press release contains forward-looking statements relating to future events and expectations, including, without limitation, our expectations regarding the opportunities ahead of us; our projected fiscal year ended June 30, 2025, financial results; our ability to achieve our long-term goals of driving double-digit revenue growth in our key markets; expanding our gross margin and EPS; and continuing to unlock additional value for shareholders, each of which is based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from its historical experience and our present expectations or projections.

The Company believes that all forward-looking statements made by it in this press release have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this presentation include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the terms of the Company’s indebtedness and ability to service such debt in connection with its acquisition of Coherent, Inc. (the “Transaction”), (iii) risks relating to future integration and/or restructuring actions; (iv) fluctuations in purchasing patterns of customers and end users; (v) the ability of the Company to retain and hire key employees; (vi) changes in demand in the Company’s end markets along with the Company’s ability to respond to such market changes; (vii) the timely release of new products and acceptance of such new products by the market; (viii) the introduction of new products by competitors and other competitive responses; (ix) the Company’s ability to assimilate other recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (x) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xi) the risks that the Company’s stock price will not trade in line with industrial technology leaders; (xii) the impact of trade protection measures, such as import tariffs by the United States or retaliatory actions taken by other countries; and/or (xiii) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in our filings with the Securities and Exchange Commission (“SEC”), including our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and our subsequently filed Quarterly Reports on Form 10-Q, which filings are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Contact:
Paul Silverstein
Senior VP, Investor Relations
investor.relations@coherent.com

FAQ

What is Coherent's (COHR) expected revenue growth for FY25?

Coherent expects revenue growth of over 22% year-over-year in fiscal year 2025.

What are the main growth markets for Coherent (COHR)?

Coherent's main growth markets include AI Datacenters (optical transceivers and components), semiconductor capital equipment, display equipment, precision manufacturing, and instrumentation.

How much is Coherent's (COHR) projected EPS growth for FY25?

Coherent projects EPS to increase by 2.8 times (2.8X) year-over-year in fiscal year 2025.

What is Coherent's (COHR) long-term growth strategy?

Coherent's strategy focuses on driving double-digit revenue growth in key markets like AI Datacenters, expanding gross margins and EPS, and unlocking additional shareholder value through market-leading technology and product development.