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IPGP's Q3 earnings rose 9% year over year and exceeded the Zacks consensus estimate by 19 cents
Revenues climbed 8% to $250.8 million, led by materials processing and advanced applications growth.
Adjusted gross margin expanded 360 bps to 39.8%, with EBITDA up 33% year over year to $37 million.
IPG Photonics (IPGP - Free Report) reported third-quarter 2025 adjusted earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 19 cents and climbed 9% year over year.
Revenues of $250.8 million increased 8% on a year-over-year basis and beat the consensus mark by 6.59%. Favorable forex contributed 1% to revenue growth. Book-to-bill ratio was roughly one in the reported quarter.
The year-over-year revenue growth was primarily due to higher Materials processing, medical and advanced applications sales. Emerging growth product sales accounted for 52% of revenues, which declined from 54% reported in the previous quarter.
IPGP’s Q3 Quarterly Details
Materials processing (88% of total revenues) increased 6% year over year to $212.3 million. The upside was mainly due to higher sales in welding, additive manufacturing applications, cleaning and higher revenue in micromachining. Strong demand in battery production, driven by e-mobility and stationary storage, supported higher sales in welding. Cleaning continued to benefit from the cleanLASER acquisition.
Revenues from other applications increased 20% year over year, primarily due to higher revenues in medical and advanced applications.
IPG Photonics Corporation Price, Consensus and EPS Surprise
Sales declined 7% in Europe, while increasing 8% and 15% year over year in North America and Asia, respectively.
IPG Photonics reported an adjusted gross margin of 39.8% up 360 basis points on a year-over-year basis.
Adjusted EBITDA jumped 33% year over year to $37 million in the reported quarter.
IPGP’s Balance Sheet & Cash Flow Details
As of Sept. 30, 2025, IPG Photonics had $900.6 million in cash & cash equivalents, short-term investments and long-term investments.
In the third quarter, the company spent $21 million on capital expenditures and $16 million on share repurchases.
IPGP Offers Positive Guidance
For fourth-quarter 2025, IPG Photonics anticipates sales to be $230-$260 million.
IPG Photonics expects fourth-quarter 2025 adjusted gross margin between 36% and 39%. Operating expenses are expected to be within $90 million to $92 million. Adjusted EBITDA is expected between $21 million and $38 million.
IPG Photonics expects fourth-quarter 2025 earnings between 5 cents and 35 cents per share.
Zacks Rank & Upcoming Earnings to Consider
IPG Photonics currently has a Zacks Rank #3 (Hold).
Fair Isaac shares have tanked 19.3% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
StoneCo shares have returned 136.2% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.
Simulations Plus shares have plunged 39% year to date. Simulations Plus is set to report fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1.
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IPG Photonics' Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
IPG Photonics (IPGP - Free Report) reported third-quarter 2025 adjusted earnings of 35 cents per share, which beat the Zacks Consensus Estimate by 19 cents and climbed 9% year over year.
Revenues of $250.8 million increased 8% on a year-over-year basis and beat the consensus mark by 6.59%. Favorable forex contributed 1% to revenue growth. Book-to-bill ratio was roughly one in the reported quarter.
The year-over-year revenue growth was primarily due to higher Materials processing, medical and advanced applications sales. Emerging growth product sales accounted for 52% of revenues, which declined from 54% reported in the previous quarter.
IPGP’s Q3 Quarterly Details
Materials processing (88% of total revenues) increased 6% year over year to $212.3 million. The upside was mainly due to higher sales in welding, additive manufacturing applications, cleaning and higher revenue in micromachining. Strong demand in battery production, driven by e-mobility and stationary storage, supported higher sales in welding. Cleaning continued to benefit from the cleanLASER acquisition.
Revenues from other applications increased 20% year over year, primarily due to higher revenues in medical and advanced applications.
IPG Photonics Corporation Price, Consensus and EPS Surprise
IPG Photonics Corporation price-consensus-eps-surprise-chart | IPG Photonics Corporation Quote
Sales declined 7% in Europe, while increasing 8% and 15% year over year in North America and Asia, respectively.
IPG Photonics reported an adjusted gross margin of 39.8% up 360 basis points on a year-over-year basis.
Adjusted EBITDA jumped 33% year over year to $37 million in the reported quarter.
IPGP’s Balance Sheet & Cash Flow Details
As of Sept. 30, 2025, IPG Photonics had $900.6 million in cash & cash equivalents, short-term investments and long-term investments.
In the third quarter, the company spent $21 million on capital expenditures and $16 million on share repurchases.
IPGP Offers Positive Guidance
For fourth-quarter 2025, IPG Photonics anticipates sales to be $230-$260 million.
IPG Photonics expects fourth-quarter 2025 adjusted gross margin between 36% and 39%. Operating expenses are expected to be within $90 million to $92 million. Adjusted EBITDA is expected between $21 million and $38 million.
IPG Photonics expects fourth-quarter 2025 earnings between 5 cents and 35 cents per share.
Zacks Rank & Upcoming Earnings to Consider
IPG Photonics currently has a Zacks Rank #3 (Hold).
Fair Isaac (FICO - Free Report) , StoneCo (STNE - Free Report) and Simulations Plus (SLP - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Fair Isaac shares have tanked 19.3% year to date. This Zacks Rank #1 (Strong Buy) company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
StoneCo shares have returned 136.2% year to date. StoneCo is scheduled to release third-quarter 2025 results on Nov. 6. StoneCo sports a Zacks Rank #1.
Simulations Plus shares have plunged 39% year to date. Simulations Plus is set to report fourth-quarter fiscal 2025 results on Dec. 1. Simulations Plus currently flaunts a Zacks Rank #1.