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IPG Photonics(IPGP) - 2025 Q1 - Quarterly Results
IPGPIPG Photonics(IPGP)2025-05-06 12:01

Revenue Performance - First quarter 2025 revenue was 227.8million,adecreaseof10227.8 million, a decrease of 10% year-over-year from 252.0 million in Q1 2024[2]. - Materials processing sales, which accounted for 86% of total revenue, decreased by 14% year-over-year, while sales in medical and advanced applications increased by 25%[4]. - For Q2 2025, the company expects revenue between 210millionand210 million and 240 million, reflecting a potential 15millionimpactfromshipmentdelaysduetotariffs[7].ProfitabilityMetrics−Grossmarginimprovedto39.415 million impact from shipment delays due to tariffs[7]. Profitability Metrics - Gross margin improved to 39.4%, up 70 basis points year-over-year, while operating income fell to 1.8 million, down 91% from 19.1million[2][5].−Netincomeforthefirstquarterwas19.1 million[2][5]. - Net income for the first quarter was 3.8 million, an 84% decline compared to 24.1millioninthesameperiodlastyear[2][4].−AdjustedEBITDAwas24.1 million in the same period last year[2][4]. - Adjusted EBITDA was 32.7 million, a 19% decrease from 40.3millioninQ12024,withadjustedearningsperdilutedshareat40.3 million in Q1 2024, with adjusted earnings per diluted share at 0.31, down 38% year-over-year[2][5]. - Adjusted gross profit for Q1 2025 was 91,050,000,downfrom91,050,000, down from 98,024,000 in Q1 2024, a decrease of about 7.5%[30]. - Adjusted net income for Q1 2025 was 13,128,000,downfrom13,128,000, down from 23,159,000 in Q1 2024, a decrease of about 43.4%[33]. Cash Flow and Investments - Cash generated from operations in Q1 was 13million,withcapitalexpendituresamountingto13 million, with capital expenditures amounting to 25 million[5]. - Cash and cash equivalents at the end of Q1 2025 were 363,046,000,downfrom363,046,000, down from 496,452,000 at the end of Q1 2024, a decrease of approximately 26.8%[17]. - Net cash provided by operating activities in Q1 2025 was 13,445,000,downfrom13,445,000, down from 54,596,000 in Q1 2024, a decline of approximately 75.5%[17]. - The company incurred 333,009,000inpurchasesofshort−terminvestmentsinQ12025,comparedto333,009,000 in purchases of short-term investments in Q1 2025, compared to 226,521,000 in Q1 2024, an increase of about 47%[17]. - The company experienced a net decrease in cash and cash equivalents of 256,994,000inQ12025,comparedtoadecreaseof256,994,000 in Q1 2025, compared to a decrease of 18,222,000 in Q1 2024[17]. Market Trends - The book-to-bill ratio was above one, indicating strong order momentum entering Q2 2025[6]. - The company reported a 28% year-over-year decline in sales in Europe, while sales in Asia increased by 8%[4]. Tax and Adjustments - The adjusted tax rate for Q1 2025 was 21%, compared to 23% in Q1 2024, showing a decrease of 2 percentage points[34]. - Adjusted EBITDA for Q1 2025 was 32,681,000,comparedto32,681,000, compared to 40,270,000 in Q1 2024, reflecting a decline of approximately 19.0%[32].