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IPG Photonics (IPGP) FY2025 results: revenue $1.0 billion, up 2.7% on the year

IPG Photonics Corp. (IPGP) reported revenue of $1.0 billion for fiscal 2025, the year ended 31 December 2025, up 2.7% on the year before. Net income was $31 million, and diluted earnings per share $0.73. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2026.

Revenue
$1.0 billion
+2.7% on the year
FY2018FY2025
Operating margin
1.3%
-21.3% a year earlier
FY2018FY2025
Net income
$31 million
FY2018FY2025
Diluted EPS
$0.73
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 5 new, 1 kept.

  • Revenue grew 17% in fourth quarter: Fourth quarter revenue was $274.5 million, up from $234.3 million. Foreign exchange added about 2 points. Full-year revenue was $1,003.8 million, up 3% from $977.1 million.
  • First quarter revenue range set: Revenue guidance for the first quarter of 2026 is $235 million to $265 million, against a $230 million to $260 million range given for the fourth quarter of 2025.
  • Materials processing rose 17%: Materials processing was 85% of revenue. Growth came from welding, marking, additive manufacturing and cleaning, partly offset by lower micromachining sales.
  • Gross margin fell on tariffs and costs: GAAP gross margin was 36.1%, down from 38.6%. Management attributed the decline to higher product cost and tariffs, partly offset by lower inventory provisions.
  • Fourth quarter book-to-bill above one: The fourth quarter book-to-bill ratio was firmly above one, on higher revenue. Management said this reflects improving market demand.
Read the Q4 FY2025 earnings call summary

From this 10-K

IPG Photonics develops, makes and sells fiber lasers, fiber amplifiers, diode lasers and laser-based systems used in materials processing, medical and advanced applications. It began operations in 1990, was incorporated in Delaware in 1998, is based in Marlborough, Massachusetts, and trades on the Nasdaq Global Select Market.

IPG Photonics Corp., the 10-K for 2025

IPG Photonics develops, makes and sells fiber lasers, fiber amplifiers, diode lasers and laser-based systems used in materials processing, medical and advanced applications. It began operations in 1990, was incorporated in Delaware in 1998, is based in Marlborough, Massachusetts, and trades on the Nasdaq Global Select Market.

How a fiber laser works

A fiber laser uses semiconductor diodes to pump light into specialty optical fibers infused with rare earth ions, fibers comparable in diameter to a human hair, and delivers the beam through a flexible fiber cable. IPG designs and makes most of the key components itself, from the semiconductor diodes to the optical fiber preforms and the finished lasers and amplifiers. It also makes products used with its lasers, including optical delivery cables, beam switches, processing heads, in-line sensors and chillers. Its major manufacturing facilities are in the United States and Germany.

What the lasers do

In materials processing, the main applications for its lasers are welding, brazing and cutting, and others include marking and engraving, cleaning, 3D printing, drilling and heat treating. Its products range from continuous wave lasers of 1 to 125 kW to pulsed lasers for marking, and remote welding stations with fiber lasers are used to weld car door panels, seat backs and body frames. In medicine, it sells laser modules, subassemblies and fibers to device makers, and makes complete thulium fiber laser systems and consumable fibers mainly for urology, including treatment of benign prostatic hyperplasia and lithotripsy. In advanced applications, companies, universities and government institutions use its lasers for directed energy, spectroscopy, LIDAR and semiconductor inspection. It has also developed CROSSBOW, a system for countering unmanned aircraft, which it offers to governments and other authorized parties.

Selling

It sells mainly through its own direct sales force to OEMs, system integrators and end users. Once its lasers are designed into an OEM's system, the OEM's sales force markets that system. It has sales and service offices and application development centers in the Americas, Europe and Asia, and uses independent representatives and distributors more widely for its LightWELD product. It shipped products to thousands of customers worldwide in 2025.

People

It had approximately 4,840 full-time employees at December 31, 2025, including 440 in research and development, 3,590 in manufacturing and service, 390 in sales and marketing and 420 in general and administrative roles. They work in more than thirty locations in twenty-four countries, approximately 2,070 in the United States and 1,650 in Germany. None of the employees at its principal manufacturing facilities are covered by a collective bargaining agreement.

From IPG Photonics' annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 23 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,0049771,287+2.7%
Cost of revenue622639746-2.6%
Gross profit381338542+12.8%
Gross margin38.0%34.6%42.1%
Research and development11711098.7+6.9%
Operating income13.1-208232
Operating margin1.3%-21.3%18.0%
Pre-tax income45.1-162275
Income tax14.019.656.0-28.7%
Effective tax rate31.0%n/a20.4%
Net income31.1-182219
Net margin3.1%-18.6%17.0%
Diluted EPS$0.73-$4.09$4.63
$ million except per share.
Read moreFree 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

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow75.3248296-69.6%
Capital expenditure78.898.5110-20.0%
Free cash flow-3.5149186
Free cash flow margin-0.3%15.3%14.4%
Cash from investing-265209-238
Cash from financing-54.2-340-236
Depreciation and amortisation66.961.469.6+8.8%
Share-based compensation42.937.139.5+15.9%
Buybacks53.1344223-84.5%
Diluted shares, weighted43m44m47m-3.8%
Shares outstanding at period end42m43m46m-1.0%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity2,1282,0242,415+5.1%
Debt0.00.00.0
Operating lease liabilities12.213.113.7-7.2%
Other liabilities284252270+12.8%
Total liabilities and equity2,4242,2892,699+5.9%
Fixed assets638588602+8.4%
Goodwill71.767.238.5+6.7%
Intangible assets49.955.426.2-9.8%
Investments512310663+65.1%
Cash and equivalents404620515-34.9%
Receivables182171219+6.2%
Inventory313285454+10.1%
Other assets254192181+32.2%
Total assets2,4242,2892,699+5.9%

10-K for the year ended 31 December 2025, filed 23 February 2026: the filing.