IPG Photonics (IPGP) FY2022 results: revenue $1.4 billion, down 2.1% on the year

IPG Photonics Corp. (IPGP) reported revenue of $1.4 billion for fiscal 2022, the year ended 31 December 2022, down 2.1% on the year before. Net income was $110 million, down 60.5%, and diluted earnings per share $2.16. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2023.

Revenue

$1.4 billion

-2.1% on the year

FY2015FY2022

Operating margin

11.9%

25.2% a year earlier

FY2015FY2022

Net income

$110 million

-60.5% on the year

FY2015FY2022

Diluted EPS

$2.16

-58.1% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	1,430	1,461	1,201	-2.1%
Cost of revenue	874	764	662	+14.3%
Gross profit	555	696	539	-20.2%
Gross margin	38.9%	47.7%	44.9%
Research and development	116	140	127	-16.8%
Operating income	170	368	199	-53.9%
Operating margin	11.9%	25.2%	16.5%
Interest expense	n/a	1.8	n/a
Pre-tax income	183	366	206	-50.0%
Income tax	72.6	88.6	45.4	-18.1%
Effective tax rate	39.6%	24.2%	22.0%
Net income	110	278	160	-60.5%
Net margin	7.7%	19.1%	13.3%
Diluted EPS	$2.16	$5.16	$2.97	-58.1%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	213	390	285	-45.4%
Capital expenditure	110	123	87.7	-10.5%
Free cash flow	103	267	198	-61.5%
Free cash flow margin	7.2%	18.2%	16.5%
Cash from investing	297	-416	-99.6
Cash from financing	-515	-125	-10.1
Depreciation and amortisation	90.6	96.3	94.6	-6.0%
Share-based compensation	38.3	37.9	35.5	+1.2%
Buybacks	500	135	37.9	+270.3%
Diluted shares, weighted	51m	54m	54m	-5.6%
Shares outstanding at period end	48m	53m	53m	-9.2%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	2,385	2,747	2,593	-13.2%
Non-controlling interest	0.0	0.6	1.3
Debt	16.0	34.2	38.0	-53.1%
Operating lease liabilities	16.8	18.5	18.4	-9.4%
Other liabilities	325	371	285	-12.3%
Total liabilities and equity	2,743	3,171	2,936	-13.5%
Fixed assets	581	635	598	-8.6%
Goodwill	38.3	38.6	41.4	-0.7%
Intangible assets	34.1	52.7	62.1	-35.2%
Investments	479	805	515	-40.5%
Cash and equivalents	698	709	876	-1.5%
Receivables	211	262	264	-19.4%
Inventory	509	461	365	+10.6%
Other assets	192	207	214	-7.1%
Total assets	2,743	3,171	2,936	-13.5%

10-K for the year ended 31 December 2022, filed 27 February 2023: the filing.