IPG Photonics Q4 revenue beats estimates, announces buyback

Reuters
Feb 12
IPG Photonics Q4 revenue beats estimates, announces buyback

Overview

  • High-power fiber laser maker's Q4 revenue rose 17%, beating analyst expectations

  • Adjusted EPS for Q4 beat analyst expectations

  • Company authorized new $100 mln share repurchase program

Outlook

  • IPG expects Q1 2026 revenue between $235 mln and $265 mln

  • Company anticipates Q1 adjusted EPS of $0.10 to $0.40

  • IPG sees Q1 adjusted EBITDA between $25 mln and $40 mln

Result Drivers

  • STRATEGIC INITIATIVES - Revenue growth driven by execution on strategic initiatives and increased demand in additive and battery manufacturing, per CEO Dr. Mark Gitin

  • REGIONAL SALES GROWTH - Sales increased 19% in Asia, 23% in North America, and 6% in Europe year-over-year

  • GROSS MARGIN IMPACT - Gross margin decreased due to higher product costs and tariffs, partially offset by lower inventory provisions

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$274.50 mln

$249.45 mln (7 Analysts)

Q4 Adjusted EPS

Beat

$0.46

$0.20 (7 Analysts)

Q4 EPS

$0.31

Q4 Net Income

$13.30 mln

Q4 Gross Margin

36.10%

Q4 Operating Income

$3.30 mln

Q4 Operating Margin

1.20%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy"

  • Wall Street's median 12-month price target for IPG Photonics Corp is $97.00, about 12.5% below its February 11 closing price of $110.90

  • The stock recently traded at 77 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release: ID:nGNX1pP3md

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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