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MARLBOROUGH, Mass. - IPG Photonics Corporation (NASDAQ:IPGP) shares surged 9.3% after the laser manufacturer reported second quarter earnings that significantly exceeded Wall Street expectations, with adjusted EPS of $0.30 coming in at nearly triple the analyst estimate of $0.11.
The company posted revenue of $250.7 million for the quarter ended June 30, 2025, handily beating the consensus estimate of $227.88 million despite a 3% YoY decline. Excluding the impact of divestitures, IPG achieved its first year-over-year revenue increase since 2022, driven by modest recovery in general industrial and e-mobility markets.
"I am happy to report that we delivered second quarter results well above expectations," said Dr. Mark Gitin, Chief Executive Officer of IPG Photonics. "We’re making progress on our strategy to drive profitable growth with initiatives that are already yielding results."
By region, sales increased 14% in Asia while declining 4% in North America and 24% in Europe compared to the same quarter last year. Materials processing, which accounted for 85% of total revenue, decreased 6% YoY, while sales in other applications grew 21% driven by higher revenue in medical and advanced applications.
The company maintained a book-to-bill ratio of approximately one during the quarter, indicating stable demand. For the third quarter, IPG Photonics expects revenue between $225 million and $255 million, with the midpoint of $240 million slightly above the analyst consensus of $238.2 million. The company forecasts adjusted EPS of $0.05 to $0.35, with the midpoint of $0.20 matching analyst expectations.
IPG spent $15 million on capital expenditures and $30 million on share repurchases during the quarter. The company continues to navigate challenges related to tariffs by leveraging its global manufacturing footprint and supply chain capabilities.
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