IPG Photonics Announces Fourth Quarter 2025 Financial Results
Rhea-AI Summary
IPG Photonics (NASDAQ: IPGP) reported fourth-quarter 2025 revenue of $274.5 million, up 17% year-over-year, and full-year revenue of $1,003.8 million, up 3%.
GAAP gross margin fell to 36.1% due to higher product costs and tariffs; adjusted EBITDA was $41.2 million. The board authorized a $100 million share repurchase program. Q1 2026 guidance: revenue $235M–$265M, adjusted gross margin 37%–39%, operating expenses $90M–$92M, adjusted EPS $0.10–$0.40.
Positive
- Q4 revenue +17% YoY to $274.5M
- FY 2025 revenue $1,003.8M (+3% YoY)
- Adjusted EBITDA $41.2M in Q4 (+11% YoY)
- $100M new share repurchase authorization
- Emerging products 54% of revenue (up from 52%)
Negative
- GAAP gross margin declined to 36.1% due to higher product costs and tariffs
- Q4 operating income fell to $3.3M from $14.0M (a 76% decrease)
- Operating margin compressed to 1.2% in Q4, reducing near-term profitability
- Trade policy and tariff uncertainty flagged as a risk to guidance
News Market Reaction
On the day this news was published, IPGP gained 35.48%, reflecting a significant positive market reaction. Argus tracked a peak move of +34.0% during that session. Our momentum scanner triggered 102 alerts that day, indicating very high trading interest and price volatility. This price movement added approximately $1.70B to the company's valuation, bringing the market cap to $6.49B at that time. Trading volume was very high at 3.5x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-earnings, IPGP was modestly higher (+0.2%) while peers were mixed: AMKR up 3.46%, ACLS and FORM slightly positive, and CAMT and AMBA down. Combined with only one peer in the momentum scanner, this points to stock-specific drivers rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Positive | -2.2% | Revenue and adjusted EBITDA grew with higher guidance and stable demand commentary. |
| Aug 05 | Q2 2025 earnings | Negative | -3.6% | Revenue declined and EPS dropped sharply year-over-year despite some strength in other apps. |
| May 06 | Q1 2025 earnings | Negative | -13.0% | Revenue and EPS fell, with guidance pressured by tariff-related shipment risks. |
| Feb 11 | Q4 2024 earnings | Negative | -5.5% | Revenue dropped 22% and EPS fell 80%, despite gross margin improvement. |
| Oct 29 | Q3 2024 earnings | Negative | +7.3% | Significant net loss from divestiture and impairments with sharply lower revenue and margin. |
Recent earnings releases have often been followed by negative next-day moves, with three clearly negative reports aligning with sell-offs and two instances of positive or mixed reactions diverging from fundamentals.
Over the last five earnings cycles from Oct 2024 through Nov 2025, IPG Photonics navigated revenue declines, margin compression, and one large loss tied to Russian divestiture, then moved back to revenue growth in 2025. Guidance has consistently highlighted tariff and trade-policy risks. Today’s Q4 2025 report continues themes of shifting mix between materials processing and other applications, plus an ongoing focus on adjusted margins and EBITDA as management executes strategic initiatives.
Historical Comparison
Over the past five earnings releases, IPGP’s average next-day move was -3.41%. This Q4 2025 report fits the pattern of detailed guidance, tariff commentary, and shifting revenue mix that has often coincided with cautious market reactions.
Earnings from late 2024 through 2025 show a transition from steep revenue declines and one-time losses toward renewed revenue growth, rising adjusted EBITDA, and increasing contributions from other and emerging applications alongside persistent tariff-related headwinds.
Market Pulse Summary
The stock surged +35.5% in the session following this news. A strong positive reaction aligns with the company posting Q4 revenue of $274.5M, up 17% year over year, and adjusted EPS of $0.46. Historically, earnings headlines have averaged a next-day move of -3.41%, so a large upside move would mark a departure from past caution. Investors would still need to weigh margin pressure from tariffs, ongoing non-GAAP reliance, insider net selling over the last 90 days, and execution against Q1 2026 guidance.
Key Terms
adjusted gross margin financial
adjusted EBITDA financial
Non-GAAP financial
book-to-bill ratio technical
Safe Harbor regulatory
AI-generated analysis. Not financial advice.
Delivered Revenue and Bookings Growth on Increased Demand and Execution on Strategic Initiatives
Planned Inventory Management and Tariffs Impacted Gross Margin
MARLBOROUGH, Mass., Feb. 12, 2026 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2025.
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||||
| (In millions, except per share data and percentages) | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||
| Revenue | $ | 274.5 | $ | 234.3 | 17 | % | $ | 1,003.8 | $ | 977.1 | 3 | % | ||||||||||
| Gross margin | 36.1 | % | 38.6 | % | 38.0 | % | 34.6 | % | ||||||||||||||
| Operating income (loss) | $ | 3.3 | $ | 14.0 | (76)% | $ | 13.1 | $ | (208.3 | ) | NM | |||||||||||
| Operating margin | 1.2 | % | 6.0 | % | 1.3 | % | (21.3)% | |||||||||||||||
| Net income (loss) | $ | 13.3 | $ | 7.8 | 71 | % | $ | 31.1 | $ | (181.5 | ) | NM | ||||||||||
| Earnings (loss) per diluted share | $ | 0.31 | $ | 0.18 | 72 | % | $ | 0.73 | $ | (4.09 | ) | NM | ||||||||||
| Non-GAAP Measures* | ||||||||||||||||||||||
| Adjusted gross margin | 37.6 | % | 38.8 | % | 38.7 | % | 37.9 | % | ||||||||||||||
| Adjusted EBITDA | $ | 41.2 | $ | 37.3 | 11 | % | $ | 142.4 | $ | 144.8 | (2)% | |||||||||||
| Adjusted earnings per diluted share | $ | 0.46 | $ | 0.30 | 53 | % | $ | 1.42 | $ | 1.66 | (14)% | |||||||||||
*Adjusted gross margin, adjusted EBITDA and adjusted earnings per diluted share include non-GAAP adjustments. A reconciliation from GAAP to non-GAAP metrics is provided in this earnings release.
NM - not meaningful.
Management Comments
“We delivered fourth quarter results above our expectations with another quarter of double-digit year-over-year revenue growth,” said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics. “Our performance was driven by the team’s execution on our key strategic initiatives, growth in additive and battery manufacturing, and continued stabilization in industrial demand. We have strengthened our organization, improved operational discipline, and continued to invest in innovation and new product roadmaps to ensure that IPG is well positioned for long-term, sustainable and profitable growth.”
Financial Highlights
Fourth quarter revenue of
GAAP gross margin of
Authorization of New Share Repurchase Program
The Board of Directors has authorized a new program to purchase up to
Business Outlook and Financial Guidance
“Our focus on execution with a backdrop of improving market demand is reflected in the fourth quarter book-to-bill ratio, which was firmly above one on higher revenue. We are seeing signs of improved industrial activity as the U.S. continues to strengthen and demand across Asia remains resilient, balanced against a more cautious outlook in parts of Europe and some lingering macroeconomic uncertainty. We remain well positioned to drive revenue growth by leveraging our market leadership in industrial applications and expanding laser use cases into high-growth areas such as medical, micromachining, and defense,” concluded Dr. Gitin.
For the first quarter of 2026, IPG expects revenue of
As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, product demand, order cancellations and delays, competition, tariffs and retaliatory tariffs, currency fluctuations and general economic conditions. The current uncertainty related to the trade environment and tariff policies increases the risks to the outlook that we have provided. This guidance is based upon current market conditions and expectations, and is subject to the risks outlined in the Company's reports filed with the SEC, and assumes exchange rates relative to the U.S. dollar of
Supplemental Financial Information
Additional supplemental financial information is provided in the unaudited Financial Data Workbook and Fourth Quarter 2025 Earnings Call Presentation available on the investor relations section of the Company's website at investor.ipgphotonics.com.
Conference Call Reminder
The Company will hold a conference call today, February 12, 2026 at 10:00 am ET. To access the call, please dial 877-407-6184 in the US or 201-389-0877 internationally. A live webcast of the call will also be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com.
Contact
Eugene Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
efedotoff@ipgphotonics.com
About IPG Photonics Corporation
IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions, making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability, and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those statements related to IPG being well positioned for long-term, sustainable and profitable growth, signs of improved industrial activity, being well positioned to drive revenue growth by leveraging our market leadership in industrial applications and expanding laser use cases into high-growth areas such as medical, micromachining, and defense, and statements related to shares repurchases, revenue, adjusted gross margin and operating expenses outlook, adjusted earnings per diluted share and adjusted EBITDA guidance, including the expected impact of tariffs, and the impact of the U.S. dollar on our guidance for the first quarter of 2026. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and tariff policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 20, 2025) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
| IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Net sales | $ | 274,471 | $ | 234,337 | $ | 1,003,777 | $ | 977,134 | |||||||
| Cost of sales | 175,398 | 143,993 | 622,314 | 638,979 | |||||||||||
| Gross profit | 99,073 | 90,344 | 381,463 | 338,155 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 24,109 | 21,864 | 97,862 | 89,582 | |||||||||||
| Research and development | 28,771 | 25,738 | 117,402 | 109,783 | |||||||||||
| General and administrative | 40,358 | 28,893 | 143,140 | 124,313 | |||||||||||
| Net loss from divestiture and sale of assets | — | — | — | 190,201 | |||||||||||
| Impairment of long-lived assets | — | 440 | — | 27,006 | |||||||||||
| Restructuring charges | 176 | — | 601 | — | |||||||||||
| Loss (gain) on foreign exchange | 2,341 | (543 | ) | 9,354 | 5,524 | ||||||||||
| Total operating expenses | 95,755 | 76,392 | 368,359 | 546,409 | |||||||||||
| Operating income (loss) | 3,318 | 13,952 | 13,104 | (208,254 | ) | ||||||||||
| Other income, net: | |||||||||||||||
| Interest income, net | 7,129 | 7,409 | 29,857 | 45,467 | |||||||||||
| Other income, net | 109 | 651 | 2,135 | 899 | |||||||||||
| Total other income | 7,238 | 8,060 | 31,992 | 46,366 | |||||||||||
| Income (loss) before provision for income taxes | 10,556 | 22,012 | 45,096 | (161,888 | ) | ||||||||||
| Provision for income taxes | (2,714 | ) | 14,197 | 14,000 | 19,638 | ||||||||||
| Net income (loss) | $ | 13,270 | $ | 7,815 | $ | 31,096 | $ | (181,526 | ) | ||||||
| Net income (loss) per common share: | |||||||||||||||
| Basic | $ | 0.32 | $ | 0.18 | $ | 0.73 | $ | (4.09 | ) | ||||||
| Diluted | $ | 0.31 | $ | 0.18 | $ | 0.73 | $ | (4.09 | ) | ||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 42,101 | 42,652 | 42,345 | 44,336 | |||||||||||
| Diluted | 42,620 | 42,781 | 42,650 | 44,336 | |||||||||||
| IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (In thousands, except share and per share data) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 403,790 | $ | 620,040 | ||||
| Short-term investments | 435,538 | 310,152 | ||||||
| Accounts receivable, net | 181,734 | 171,131 | ||||||
| Inventories | 313,416 | 284,780 | ||||||
| Prepaid income taxes | 43,196 | 17,592 | ||||||
| Prepaid expenses and other current assets | 45,766 | 27,300 | ||||||
| Total current assets | 1,423,440 | 1,430,995 | ||||||
| Long-term investments | 76,533 | — | ||||||
| Deferred income taxes, net | 123,889 | 115,031 | ||||||
| Goodwill | 71,735 | 67,241 | ||||||
| Intangible assets, net | 49,933 | 55,376 | ||||||
| Property, plant and equipment, net | 637,516 | 588,375 | ||||||
| Other assets | 41,234 | 32,246 | ||||||
| Total assets | $ | 2,424,280 | $ | 2,289,264 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 39,288 | $ | 35,385 | ||||
| Accrued expenses and other current liabilities | 184,849 | 152,048 | ||||||
| Income taxes payable | 9,900 | 17,586 | ||||||
| Total current liabilities | 234,037 | 205,019 | ||||||
| Other long-term liabilities and deferred income taxes | 62,113 | 59,774 | ||||||
| Total liabilities | 296,150 | 264,793 | ||||||
| Commitments and contingencies | ||||||||
| IPG Photonics Corporation equity: | ||||||||
| Common stock, | 6 | 6 | ||||||
| Treasury stock, at cost, 14,837,872 and 14,084,413 shares held at December 31, 2025 and December 31, 2024, respectively. | (1,555,629 | ) | (1,505,321 | ) | ||||
| Additional paid-in capital | 1,077,172 | 1,035,285 | ||||||
| Retained earnings | 2,644,964 | 2,613,868 | ||||||
| Accumulated other comprehensive loss | (38,383 | ) | (119,367 | ) | ||||
| Total stockholders' equity | 2,128,130 | 2,024,471 | ||||||
| Total liabilities and stockholders' equity | $ | 2,424,280 | $ | 2,289,264 | ||||
| IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
| Twelve Months Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| (In thousands) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | 31,096 | $ | (181,526 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 66,854 | 61,443 | ||||||
| Impairment of long-lived assets | — | 27,006 | ||||||
| Provisions for inventory, warranty & bad debt | 43,314 | 90,377 | ||||||
| Net loss from divestiture and sale of assets | — | 190,201 | ||||||
| Other | 19,397 | (1,124 | ) | |||||
| Changes in assets and liabilities that (used) provided cash, net of acquisitions: | ||||||||
| Accounts receivable and accounts payable | (427 | ) | 45,301 | |||||
| Inventories | (52,918 | ) | 47,725 | |||||
| Other | (31,972 | ) | (31,507 | ) | ||||
| Net cash provided by operating activities | 75,344 | 247,896 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchases of and deposits on property, plant and equipment | (78,798 | ) | (98,524 | ) | ||||
| Proceeds from sales of property, plant and equipment | 922 | 28,578 | ||||||
| Purchases of investments | (943,323 | ) | (713,151 | ) | ||||
| Proceeds from maturities of investments | 755,421 | 1,083,464 | ||||||
| Acquisitions of businesses, net of cash acquired | 505 | (66,738 | ) | |||||
| Net cash outflow from divestiture | — | (25,324 | ) | |||||
| Other | 43 | 427 | ||||||
| Net cash (used in) provided by investing activities | (265,230 | ) | 208,732 | |||||
| Cash flows from financing activities: | ||||||||
| Payments for taxes related to net share settlement of equity awards less proceeds from issuance of common stock under employee stock options | (1,060 | ) | 4,195 | |||||
| Purchase of treasury stock, at cost including excise tax | (53,132 | ) | (343,816 | ) | ||||
| Net cash used in financing activities | (54,192 | ) | (339,621 | ) | ||||
| Effect of changes in exchange rates on cash and cash equivalents | 27,828 | (11,641 | ) | |||||
| Net (decrease) increase in cash and cash equivalents | (216,250 | ) | 105,366 | |||||
| Cash and cash equivalents — Beginning of period | 620,040 | 514,674 | ||||||
| Cash and cash equivalents — End of period | $ | 403,790 | $ | 620,040 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 226 | $ | 277 | ||||
| Cash paid for income taxes | $ | 57,008 | $ | 40,632 | ||||
| Cash paid for excise tax on net share repurchases | $ | 3,113 | $ | 1,893 | ||||
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
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 understanding of the Company’s financial performance. These measures should not be considered as a substitute for, or superior to, GAAP financial measures. The following information provides the definition of adjusted gross profit, adjusted gross margin, adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, adjusted net earnings per share (EPS), and adjusted tax rate as presented, which are financial measures that are not calculated or presented in accordance with GAAP, and reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided adjusted gross profit, adjusted gross margin, adjusted operating income, EBITDA, adjusted EBITDA, adjusted net income, adjusted EPS, and an adjusted tax rate as supplemental information and in addition to the financial measures presented by the Company that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measure presented by the Company.
We define adjusted gross profit as reported gross profit, adjusted for non-recurring, infrequent, or unusual changes, including acquisition and integration charges and amortization of acquisition-related intangibles.
We define adjusted gross margin as adjusted gross profit divided by total revenue.
We define adjusted operating income as reported income from operations, adjusted for non-recurring, infrequent, or unusual charges, including acquisition and integration charges, amortization of acquisition-related intangibles, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.
We define EBITDA as net income plus interest expense (income), provision for income taxes, depreciation expense, and amortization expense.
We define adjusted EBITDA as EBITDA adjusted for non-recurring, infrequent, or unusual charges, and other adjustments that the Company believes appropriate, including stock-based compensation, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture.
We define adjusted net income as reported net income, adjusted for non-recurring, infrequent, or unusual changes, and other adjustments that the Company believes appropriate, including amortization of acquisition-related intangibles, acquisition and integration charges, foreign exchange gains/losses and gain/loss on disposal of assets/divestiture, certain discrete tax items and non-GAAP income tax reconciling adjustments.
We define adjusted EPS as adjusted net income divided by the weighted-average diluted shares outstanding.
We define adjusted tax rate as the GAAP tax rate, adjusted for discrete tax items and the net impact of non-GAAP adjustments.
Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. Specifically, these non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts.
In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies. Management may, however, utilize other measures to illustrate performance in the future. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided below. These non-GAAP measures exclude (i) special inventory provisions, (ii) amortization of acquisition-related intangibles, (iii) restructuring charges, (iv) acquisition and integration costs, (v) goodwill and intangible asset impairments, (vi) long-lived asset impairments and accelerated depreciation of certain long-lived assets, (vii) foreign exchange gains/losses, (viii) interest income, (ix) benefit (provision) from income taxes, (x) depreciation, (xi) amortization, (xii) stock-based compensation, (xiii) gain/loss on disposal of assets/divestiture, (xiv) certain discrete tax items, and (xv) non-GAAP income tax reconciling adjustments.
We have not provided a quantitative reconciliation of forward-looking Non-GAAP adjusted earnings per diluted share and adjusted EBITDA to their most directly comparable GAAP financial measures because we are unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact adjusted earnings per diluted share and adjusted EBITDA. This includes items that have not yet occurred, are out of the Company’s control, cannot be reasonably predicted and/or for which there would not be any meaningful adjustment or difference. For the same reasons, the Company is unable to address the probable significance of the unavailable information.
Our non-GAAP tax provision for the fiscal fourth quarter of 2025 is
| IPG PHOTONICS CORPORATION SUPPLEMENTAL SCHEDULE OF NON-GAAP MEASUREMENTS (UNAUDITED) | ||||||||||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit, Adjusted Gross Margin | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands, except percentages) | ||||||||||||||||
| Gross profit | $ | 99,073 | $ | 90,344 | $ | 381,463 | $ | 338,155 | ||||||||
| Gross margin | ||||||||||||||||
| Special inventory provisions | — | — | — | 29,884 | ||||||||||||
| Amortization of acquisition-related intangibles | 849 | 631 | 3,777 | 2,000 | ||||||||||||
| Acquisition and integration charges | — | — | 482 | — | ||||||||||||
| Accelerated depreciation of certain long-lived assets | 3,168 | — | 3,168 | — | ||||||||||||
| Adjusted gross profit | $ | 103,090 | $ | 90,975 | $ | 388,890 | $ | 370,039 | ||||||||
| Adjusted gross margin | ||||||||||||||||
| Reconciliation of Operating income (loss) to Adjusted Operating Income | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||
| (in thousands) | ||||||||||||||
| Operating income (loss) | $ | 3,318 | $ | 13,952 | $ | 13,104 | $ | (208,254 | ) | |||||
| Special inventory provisions | — | — | — | 29,884 | ||||||||||
| Amortization of acquisition-related intangibles | 2,292 | 1,753 | 9,790 | 5,933 | ||||||||||
| Restructuring charges | 176 | — | 601 | — | ||||||||||
| Acquisition and integration charges | 5,051 | 249 | 7,356 | 249 | ||||||||||
| Impairment of long-lived assets and accelerated depreciation of certain long-lived assets | 3,168 | 440 | 3,168 | 27,006 | ||||||||||
| Loss (gain) on foreign exchange | 2,341 | (543 | ) | 9,354 | 5,524 | |||||||||
| Net loss from divestiture and sale of assets | — | — | — | 190,875 | ||||||||||
| Adjusted operating income | $ | 16,346 | $ | 15,851 | $ | 43,373 | $ | 51,217 | ||||||
| Reconciliation of Net income (loss) to Adjusted EBITDA | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands) | ||||||||||||||||
| 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 | ) | 14,197 | 14,000 | 19,638 | |||||||||||
| Depreciation | 16,637 | 12,057 | 52,757 | 52,399 | ||||||||||||
| Amortization | 3,418 | 2,762 | 14,097 | 9,044 | ||||||||||||
| EBITDA | $ | 23,482 | $ | 29,422 | $ | 82,093 | $ | (145,912 | ) | |||||||
| Special inventory provisions | — | — | — | 29,884 | ||||||||||||
| Impairment of long-lived assets | — | 440 | — | 27,006 | ||||||||||||
| Stock based compensation | 10,180 | 7,720 | 43,014 | 37,150 | ||||||||||||
| Restructuring charges | 176 | — | 601 | — | ||||||||||||
| Acquisition and integration charges | 5,051 | 249 | 7,356 | 249 | ||||||||||||
| Loss on foreign exchange | 2,341 | (543 | ) | 9,354 | 5,524 | |||||||||||
| Net loss from divestiture and sale of assets | — | — | — | 190,875 | ||||||||||||
| Adjusted EBITDA | $ | 41,230 | $ | 37,288 | $ | 142,418 | $ | 144,776 | ||||||||
| Reconciliation of GAAP to Non-GAAP Net Income, and GAAP to Non-GAAP Net Income per Share, Diluted | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Net income (loss) | $ | 13,270 | $ | 7,815 | $ | 31,096 | $ | (181,526 | ) | |||||||
| Special inventory provisions | — | — | — | 29,884 | ||||||||||||
| Impairment of long-lived assets and accelerated depreciation of certain long-lived assets | 3,168 | 440 | 3,168 | 27,006 | ||||||||||||
| Amortization of acquisition-related intangibles | 2,292 | 1,753 | 9,790 | 5,933 | ||||||||||||
| Restructuring charges | 176 | — | 601 | — | ||||||||||||
| Acquisition and integration charges | 5,051 | 249 | 7,356 | 249 | ||||||||||||
| Loss on foreign exchange | 2,341 | (543 | ) | 9,354 | 5,524 | |||||||||||
| Net loss from divestiture and sale of assets | — | — | — | 190,875 | ||||||||||||
| Certain discrete tax items | (2,390 | ) | 3,132 | 5,913 | 3,063 | |||||||||||
| Tax impact of non-GAAP adjustments | (4,193 | ) | 32 | (6,664 | ) | (7,364 | ) | |||||||||
| Adjusted net income | $ | 19,715 | $ | 12,878 | $ | 60,614 | $ | 73,644 | ||||||||
| Adjusted net earnings per diluted share | $ | 0.46 | $ | 0.30 | $ | 1.42 | $ | 1.66 | ||||||||
| Weighted average diluted shares outstanding | 42,620 | 42,781 | 42,650 | 44,336 | ||||||||||||
| Reconciliation of GAAP to Non-GAAP Effective Tax Rate | ||||||||||||
| 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 | % | ||||
During the first fiscal quarter of 2025, the Company refined its methodology to report non-GAAP measures. The change does not impact the Company’s financial position, cash flows, or GAAP consolidated results of operations. Prior period non-GAAP financial measures and the associated GAAP to non-GAAP reconciliations presented in this press release have been recast to conform to the current presentation.
FAQ
What were IPG Photonics (IPGP) fourth-quarter 2025 results and key metrics?
What does IPG Photonics' $100 million share repurchase program mean for IPGP shareholders?
How did tariffs and inventory affect IPG Photonics' margins in Q4 2025?
What guidance did IPG Photonics give for Q1 2026 (IPGP)?
Which end markets drove IPG Photonics' Q4 2025 revenue growth for IPGP?
