IPG Photonics Announces Fourth Quarter 2024 Financial Results

Core Insights - IPG Photonics Corporation reported fourth quarter revenue of $234.3 million, a decrease of 22% year-over-year, attributed to lower sales in materials processing and medical applications, partially offset by growth in advanced applications [2][4] - The gross margin improved to 38.6%, up 40 basis points year-over-year, driven by lower product costs and more stable inventory provisions, despite reduced absorption of manufacturing expenses [5] - The company generated$ 74 million in cash from operations during the fourth quarter and spent $57 million on share repurchases, indicating strong cash flow management [5][3] Financial Performance - Revenue for the twelve months ended December 31, 2024, was$ 977.1 million, down 24% from $1,287.4 million in 2023 [2] - Operating income for the fourth quarter was$ 14 million, a decline of 51% from $28.8 million in the same quarter of the previous year [2] - Net income attributable to IPG Photonics was$ 7.8 million for the fourth quarter, down 81% from $41.4 million year-over-year [2] Business Outlook - The total backlog decreased by 8% to$ 636 million, with a notable decline in orders with firm shipment dates and frame agreements [6] - For the first quarter of 2025, IPG expects revenue between $210 million and$ 240 million, with a gross margin forecast of 36% to 39% [8] - The company is focusing on cost management and strategic investments to position itself for future growth, anticipating results to materialize in 2026 and beyond [7][3]