IPG Photonics Q2 Earnings Beat, Guidance Updated

IPG Photonics reported second-quarter 2025 adjusted earnings of $0.30 per share, beating analyst expectations but reflecting a 42% year-over-year earnings decline. Revenue for the quarter was $250.7 million, down 3% from the prior year mainly due to divestitures and lower materials processing sales, but excluding divestitures, this marked the first year-over-year revenue increase since 2022. The company achieved record revenue in advanced applications, notably through initial deliveries of its Crossbow counter-UAV laser system to Lockheed Martin, signaling momentum in defense and security. Gross margin improved to 37.8% due to operational efficiencies and lower-than-expected tariff impacts. Sales in Asia increased 14% while North America and Europe declined, and emerging growth product sales rose to 54% of total revenue. For Q3 2025, IPG forecasts revenue between $225 million and $255 million and adjusted gross margin between 36% and 38%, amid ongoing margin and profitability pressures.