We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is nLIGHT's Record A&D Revenues Enough to Hit 40% Growth Target?
Read MoreHide Full Article
Key Takeaways
nLIGHT's Q2 revenues rose 22% Y/Y to $61.7M, with A&D sales hitting a record $40.7M.
Defense revenues surged 74.5%, fueled by HELSI-2 and DE M-SHORAD program progress.
Management raised 2025 A&D growth outlook to at least 40%, citing strong pipeline.
nLIGHT (LASR - Free Report) delivered strong results in the second quarter of 2025, where it posted revenues of $61.7 million, representing an increase of 22% year over year. The company also delivered net non-GAAP profit of 6 cents per share against a net loss of 10 cents during the same quarter last year. The main driver was aerospace and defense (A&D), which delivered record revenues of $40.7 million, accounting for two-thirds of total sales.
Defense products were especially strong, growing 74.5% year over year, supported by shipments into the HELSI-2 program. This $171 million U.S. Department of Defense (DoD) contract aims to build a 1-megawatt high-energy laser by 2026. nLIGHT is also advancing work on the Army’s DE M-SHORAD short-range air defense system, with field testing expected to progress as per schedule. In addition, management highlighted growing opportunities under the Golden Dome missile defense initiative and new international wins in directed energy.
Laser sensing is another area gaining traction, with products used in missile guidance, range finding, and countermeasures. Several classified programs are moving into the next phase and could add revenues later this year and beyond. Together, these efforts have given management confidence to raise its full-year A&D growth outlook to at least 40%, up from 25% earlier.
The commercial segment showed some sequential recovery, but management remains cautious on broader industrial demand. Still, nLIGHT’s focus on defense, its manufacturing execution, and strong pipeline suggest that the company’s growth path in 2025 will be shaped largely by its ability to deliver on A&D programs. The Zacks Consensus Estimate for 2025 revenues is pegged at 234.3 million, suggesting an increase of around 18% year over year.
How Competitors Fare Against nLIGHT
nLIGHT’s push for 40% A&D growth puts it against players like Coherent (COHR - Free Report) and IPG Photonics (IPGP - Free Report) .
IPG Photonics is known as a global leader in fiber lasers. Moreover, IPG Photonics has been actively expanding into defense applications, such as high-energy lasers for counter-drone and missile defense.
Meanwhile, Coherent remains focused on photonics, optics, and laser systems. Coherent is also actively engaged in defense laser opportunities through U.S. DoD collaborations and systems development.
nLIGHT’s Price Performance, Valuation and Estimates
Shares of nLIGHT have skyrocketed 175.2% year to date compared with the Electronics - Semiconductors industry’s growth of 27%.
nLIGHT YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, nLIGHT trades at a forward price-to-sales ratio of 5.96X, lower than the industry’s average of 9.37X.
nLIGHT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nLIGHT’s 2025 and 2026 earnings implies year-over-year growth of 106.2% and 8.3%, respectively. The estimates for 2025 and 2026 earnings have both been revised upward over the past 30 days.
Image: Bigstock
Is nLIGHT's Record A&D Revenues Enough to Hit 40% Growth Target?
Key Takeaways
nLIGHT (LASR - Free Report) delivered strong results in the second quarter of 2025, where it posted revenues of $61.7 million, representing an increase of 22% year over year. The company also delivered net non-GAAP profit of 6 cents per share against a net loss of 10 cents during the same quarter last year. The main driver was aerospace and defense (A&D), which delivered record revenues of $40.7 million, accounting for two-thirds of total sales.
Defense products were especially strong, growing 74.5% year over year, supported by shipments into the HELSI-2 program. This $171 million U.S. Department of Defense (DoD) contract aims to build a 1-megawatt high-energy laser by 2026. nLIGHT is also advancing work on the Army’s DE M-SHORAD short-range air defense system, with field testing expected to progress as per schedule. In addition, management highlighted growing opportunities under the Golden Dome missile defense initiative and new international wins in directed energy.
Laser sensing is another area gaining traction, with products used in missile guidance, range finding, and countermeasures. Several classified programs are moving into the next phase and could add revenues later this year and beyond. Together, these efforts have given management confidence to raise its full-year A&D growth outlook to at least 40%, up from 25% earlier.
The commercial segment showed some sequential recovery, but management remains cautious on broader industrial demand. Still, nLIGHT’s focus on defense, its manufacturing execution, and strong pipeline suggest that the company’s growth path in 2025 will be shaped largely by its ability to deliver on A&D programs. The Zacks Consensus Estimate for 2025 revenues is pegged at 234.3 million, suggesting an increase of around 18% year over year.
How Competitors Fare Against nLIGHT
nLIGHT’s push for 40% A&D growth puts it against players like Coherent (COHR - Free Report) and IPG Photonics (IPGP - Free Report) .
IPG Photonics is known as a global leader in fiber lasers. Moreover, IPG Photonics has been actively expanding into defense applications, such as high-energy lasers for counter-drone and missile defense.
Meanwhile, Coherent remains focused on photonics, optics, and laser systems. Coherent is also actively engaged in defense laser opportunities through U.S. DoD collaborations and systems development.
nLIGHT’s Price Performance, Valuation and Estimates
Shares of nLIGHT have skyrocketed 175.2% year to date compared with the Electronics - Semiconductors industry’s growth of 27%.
nLIGHT YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, nLIGHT trades at a forward price-to-sales ratio of 5.96X, lower than the industry’s average of 9.37X.
nLIGHT Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for nLIGHT’s 2025 and 2026 earnings implies year-over-year growth of 106.2% and 8.3%, respectively. The estimates for 2025 and 2026 earnings have both been revised upward over the past 30 days.
Image Source: Zacks Investment Research
nLIGHT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.