IPG Photonics tops Q3 profit estimates, revenue in line

IPG Photonics (IPGP) topped third-quarter profit estimates on Nov. 3, reporting adjusted earnings of 61 cents per diluted share, while revenue of $287.5 million was in line with expectations.

The company reported results for the quarter ended Sept. 30, 2026. Revenue rose 15% from a year earlier.

Here’s how the company did:

• Adjusted EPS: 61 cents vs. 35 cents a year earlier
• Revenue: $287.5 million vs. $250.8 million a year earlier
• Net income: $20.3 million, or 47 cents per diluted share, vs. $7.5 million, or 18 cents, a year earlier
• Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excluding certain items: $51.5 million vs. $37.0 million a year earlier

The adjusted EPS figure beat the consensus estimate, while revenue came in just below it.

Chief Executive Officer Mark Gitin said the quarter was the company’s “fourth consecutive quarter of double-digit year-over-year revenue growth, with revenue above the midpoint of our guidance.”

Gross margin on a GAAP basis was 40.7%, up from 39.5% a year earlier. The company said the increase came from lower product costs and $5.0 million in net tariff refunds recorded in the period, partly offset by lower fixed cost absorption.

Segment results

Industrial Solutions sales were $239.5 million, up 12% from $214.7 million a year earlier. The company said welding and additive manufacturing applications drove the growth.

Advanced Solutions sales were $48.0 million, up 33% from $36.1 million. The company said higher sales in semiconductor and defense applications drove the increase.

By region, sales rose 14% in Asia and 33% in North America and fell 1% in Europe. Changes in foreign exchange rates added about 1% to revenue.

Emerging growth products accounted for 52% of total revenue, down from 58% in the prior quarter, due to product mix.

Guidance

For the fourth quarter, the company expects revenue of $265 million to $295 million. It also expects adjusted gross margin of 37.0% to 40.0%, adjusted operating expenses of $91 million to $94 million, adjusted EPS of 30 to 60 cents, and adjusted EBITDA of $33 million to $50 million.

The guidance assumes no contribution from the company’s acquisition of Lumibird Medical, which the company expects to close in the fourth quarter.

The company said its third-quarter book-to-bill, or the ratio of orders received to sales, was approximately one.

Costs and cash

The company generated $46 million in cash flow from operations and spent $17 million on capital expenditures during the quarter.

The company recorded $0.2 million in impairment charges in the quarter. For the first nine months of 2026, impairment charges totaled $17.8 million.