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LASR Q2 Earnings Call Focuses on Defense & Supply Constraints
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Key Takeaways
nLIGHT beat Q2 earnings and revenue estimates as sales rose 34% y/y and defense revenues hit $57.3M.
LASR expects Q3 revenues of $63-$73M, with $17M of product shipments pushed to future quarters.
nLIGHT sees JLWS ramping in 2027 and more than offsetting the expected decline in HELSI-2 revenues.
nLIGHT, Inc. (LASR - Free Report) used its second-quarter 2026 earnings call to emphasize expanding defense opportunities while warning that Chinese supply-chain delays will weigh on third-quarter shipments. Management said that demand remains strong, but execution is constrained by a small number of components.
Non-GAAP earnings per share of $0.15 topped the Zacks Consensus Estimate of $0.14. Revenues of $82.6 million surpassed the consensus estimate of $78.5 million and rose 34% year over year.
CEO Scott Keeney said that directed energy, laser sensing and advanced manufacturing opportunities continued to expand, supported by new programs and existing production work.
Aerospace and defense revenues rose 41% year over year to a record $57.3 million. CFO Joseph Corso said that growth reflected HELSI-2 progress, munitions demand and execution across directed-energy and laser-sensing programs.
Keeney also highlighted stronger kinetic-weapons demand tied to restocking and expanding mission applications. He added that space-related demand is increasing for sensing lasers and advanced-manufacturing products.
nLIGHT JLWS Adds 2027 Growth Bridge
Keeney called the Joint Laser Weapon System award an extension of nLIGHT's work on HELSI and its HADES product family, moving the technology toward deployable high-power systems.
CFO Joseph Corso told a Stifel analyst that JLWS will begin contributing revenues in the third quarter, continue into the fourth quarter and ramp more meaningfully in 2027. He added that the program should more than offset the expected decline in HELSI-2 revenues next year.
A William Blair analyst asked about fielding timelines. Keeney said that nLIGHT does not expect a program of record within the next year, but expects increasing demand and prototype activity over the next couple of years before low-rate production begins.
LASR Q3 Guidance Indicates Supply Disruption
Corso guided third-quarter revenues to $63-$73 million, including about $43 million in product revenues and $25 million in development revenues. The outlook excludes roughly $17 million in product shipments now expected in future quarters.
The overall gross margin is expected to be 24-30%, with the product gross margin at 34-40%. Adjusted EBITDA is projected between $1 million and $7 million.
A Needham analyst pressed management on the shortfall. CEO Scott Keeney said that increased Chinese scrutiny of dual-use products is delaying optics, primarily affecting commercial products rather than reflecting weaker customer demand.
nLIGHT Works to Reduce China Exposure
Keeney said that nLIGHT has already shifted manufacturing and much of its revenue base away from China, but some components still require alternative sourcing.
In response to a Craig-Hallum analyst, Keeney stated that the company is working with current suppliers, qualifying new partners and evaluating product redesigns to create more sourcing flexibility.
Corso said that the disruption could clear quickly or persist for months to quarters, leaving fourth-quarter shipment timing uncertain. He added that initial JLWS work should be largely unaffected.
LASR Commercial Demand Remains Broad
Commercial revenues totaled $25.3 million, up 20% year over year. CFO Joseph Corso said that industrial sales benefited from additive-manufacturing demand and final purchases of legacy cutting and welding products, which nLIGHT is exiting.
Keeney told a Cantor Fitzgerald analyst that additive-manufacturing strength spans aerospace and defense applications, including rocket engines and other components.
Corso informed that additive manufacturing and microfabrication were performing better than previously anticipated before the supply constraint. Management continued to characterize demand as broad-based.
nLIGHT Keeps Cash & Execution in Focus
Corso said that record operating cash flow of $20.7 million reflected working-capital discipline and targeted capital spending. The company ended the second quarter with $330.8 million in cash, restricted cash and investments after repaying its $20-million credit-line balance.
Keeney kept the strategy centered on executing existing defense programs, supporting directed-energy opportunities and investing for long-term growth while management works through sourcing constraints.
LASR Zacks Signals Show Mixed Profile
LASR currently carries a Zacks Rank #3 (Hold), alongside a Growth Score of A, Value Score of F, Momentum Score of D and VGM Score of D. The Growth Score is the strongest component, while the Value and Momentum grades are weaker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' framework emphasizes that Style Scores complement the Zacks Rank, with A and B grades considered more favorable and the strongest combinations generally involving Zacks Rank #1 or #2 (Buy) stocks. LASR's current mix is not among the highest-ranked configurations. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results.
View the Zacks #1 Rank List
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LASR Q2 Earnings Call Focuses on Defense & Supply Constraints
Key Takeaways
nLIGHT, Inc. (LASR - Free Report) used its second-quarter 2026 earnings call to emphasize expanding defense opportunities while warning that Chinese supply-chain delays will weigh on third-quarter shipments. Management said that demand remains strong, but execution is constrained by a small number of components.
Non-GAAP earnings per share of $0.15 topped the Zacks Consensus Estimate of $0.14. Revenues of $82.6 million surpassed the consensus estimate of $78.5 million and rose 34% year over year.
nLight Price, Consensus and EPS Surprise
nLight price-consensus-eps-surprise-chart | nLight Quote
LASR Defense Demand Drives Record Mix
CEO Scott Keeney said that directed energy, laser sensing and advanced manufacturing opportunities continued to expand, supported by new programs and existing production work.
Aerospace and defense revenues rose 41% year over year to a record $57.3 million. CFO Joseph Corso said that growth reflected HELSI-2 progress, munitions demand and execution across directed-energy and laser-sensing programs.
Keeney also highlighted stronger kinetic-weapons demand tied to restocking and expanding mission applications. He added that space-related demand is increasing for sensing lasers and advanced-manufacturing products.
nLIGHT JLWS Adds 2027 Growth Bridge
Keeney called the Joint Laser Weapon System award an extension of nLIGHT's work on HELSI and its HADES product family, moving the technology toward deployable high-power systems.
CFO Joseph Corso told a Stifel analyst that JLWS will begin contributing revenues in the third quarter, continue into the fourth quarter and ramp more meaningfully in 2027. He added that the program should more than offset the expected decline in HELSI-2 revenues next year.
A William Blair analyst asked about fielding timelines. Keeney said that nLIGHT does not expect a program of record within the next year, but expects increasing demand and prototype activity over the next couple of years before low-rate production begins.
LASR Q3 Guidance Indicates Supply Disruption
Corso guided third-quarter revenues to $63-$73 million, including about $43 million in product revenues and $25 million in development revenues. The outlook excludes roughly $17 million in product shipments now expected in future quarters.
The overall gross margin is expected to be 24-30%, with the product gross margin at 34-40%. Adjusted EBITDA is projected between $1 million and $7 million.
A Needham analyst pressed management on the shortfall. CEO Scott Keeney said that increased Chinese scrutiny of dual-use products is delaying optics, primarily affecting commercial products rather than reflecting weaker customer demand.
nLIGHT Works to Reduce China Exposure
Keeney said that nLIGHT has already shifted manufacturing and much of its revenue base away from China, but some components still require alternative sourcing.
In response to a Craig-Hallum analyst, Keeney stated that the company is working with current suppliers, qualifying new partners and evaluating product redesigns to create more sourcing flexibility.
Corso said that the disruption could clear quickly or persist for months to quarters, leaving fourth-quarter shipment timing uncertain. He added that initial JLWS work should be largely unaffected.
LASR Commercial Demand Remains Broad
Commercial revenues totaled $25.3 million, up 20% year over year. CFO Joseph Corso said that industrial sales benefited from additive-manufacturing demand and final purchases of legacy cutting and welding products, which nLIGHT is exiting.
Keeney told a Cantor Fitzgerald analyst that additive-manufacturing strength spans aerospace and defense applications, including rocket engines and other components.
Corso informed that additive manufacturing and microfabrication were performing better than previously anticipated before the supply constraint. Management continued to characterize demand as broad-based.
nLIGHT Keeps Cash & Execution in Focus
Corso said that record operating cash flow of $20.7 million reflected working-capital discipline and targeted capital spending. The company ended the second quarter with $330.8 million in cash, restricted cash and investments after repaying its $20-million credit-line balance.
Keeney kept the strategy centered on executing existing defense programs, supporting directed-energy opportunities and investing for long-term growth while management works through sourcing constraints.
LASR Zacks Signals Show Mixed Profile
LASR currently carries a Zacks Rank #3 (Hold), alongside a Growth Score of A, Value Score of F, Momentum Score of D and VGM Score of D. The Growth Score is the strongest component, while the Value and Momentum grades are weaker. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' framework emphasizes that Style Scores complement the Zacks Rank, with A and B grades considered more favorable and the strongest combinations generally involving Zacks Rank #1 or #2 (Buy) stocks. LASR's current mix is not among the highest-ranked configurations. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results.