FALSE000111192800011119282025-02-112025-02-11

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

February 11, 2025
 Date of Report (Date of earliest event reported)

IPG PHOTONICS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
 (State or Other Jurisdiction
 of Incorporation)
 
 
001-33155
 (Commission File No.)
04-3444218
 (IRS Employer
 Identification No.)
377 Simarano Drive
Marlborough, Massachusetts 01752
(Address of Principal Executive Offices, including Zip Code)

(508) 373-1100
(Registrant’s telephone number)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.0001 per shareIPGPNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition
On February 11, 2025, IPG Photonics Corporation (the "Company") announced its financial results for the quarter ended December 31, 2024. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 referenced herein, shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On February 7, 2025, Thomas J. Burgomaster, Vice President, Corporate Controller and Chief Accounting Officer (including its Principal Accounting Officer) of the Company, informed the Company of his intention to retire from his position with the Company effective March 1, 2025.
On February 7, 2025, the Board of Directors (the "Board") of the Company appointed the Company's Vice President, Finance, Mary E. Buttarazzi, to assume the role of the Company's Vice President, Corporate Controller and Chief Accounting Officer (including its Principal Accounting Officer) effective upon Mr. Burgomaster’s retirement on March 1, 2025.
Ms. Buttarazzi, age 49, has over 25 years of finance and accounting leadership with extensive management experience. Prior to joining IPG as Vice President of Finance in January 2025, Ms. Buttarazzi served as the Chief Accounting Officer, Corporate Controller of Orbia Advance Corporation, S.A.B. de C.V., a chemical manufacturing company, from December 2021 to January 2025. From November 2019 to December 2021, Ms. Buttarazzi served as the Corporate Controller of Akamai Technologies, Inc., a leading cybersecurity and cloud computing solutions provider. Prior to that, Ms. Buttarazzi held various management positions at Cabot Corporation and Ernst & Young LLP.
Ms. Buttarazzi's compensation arrangements with the Company were unchanged as a result of the appointment. Ms. Buttarazzi will be eligible to continue participating in the Company’s employee benefit plans and programs generally available to its employees.
Ms. Buttarazzi does not have family relationships with any of the Company’s directors or executive officers. Ms. Buttarazzi has no direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K.

Item 9.01. Financial Statements and Exhibits
(d) Exhibits

Exhibit 99.1 relating to Item 2.02 shall be deemed to be furnished, and not filed:
Exhibit NumberExhibit Description
Exhibit 99.1
Exhibit 104Inline XBRL for the cover page of this Current Report on Form 8-K.




SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned thereunto duly authorized.
 
IPG PHOTONICS CORPORATION
February 11, 2025By:/s/ Timothy P.V. Mammen
Timothy P.V. Mammen
Senior Vice President and Chief Financial Officer


Exhibit 99.1

 image1.jpg

IPG PHOTONICS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS
Delivered Revenue At the High End of the Guidance
Improved Gross Margin and Generated Strong Cash Flow From Operations
MARLBOROUGH, Mass. – February 11, 2025 - IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2024.
Three Months Ended December 31,Twelve Months Ended December 31,
(In millions, except per share data and percentages)20242023Change20242023Change
Revenue$234.3 $298.9 (22)%$977.1 $1,287.4 (24)%
Gross margin38.6 %38.2 %34.6 %42.1 %
Operating income (loss)$14.0 $28.8 (51)%$(208.3)$232.0 NM
Operating margin6.0 %9.6 %(21.3)%18.0 %
Net income (loss) attributable to IPG Photonics Corporation$7.8 $41.4 (81)%$(181.5)$218.9 NM
Earnings (loss) per diluted share$0.18 $0.89 (80)%$(4.09)$4.63 NM

NM - not meaningful.
Management Comments
“Our revenue was at the high end of our guidance, and we delivered strong cash flow from operations despite challenging demand,” said Dr. Mark Gitin, IPG Photonics’ Chief Executive Officer. "In this environment, we are focused on managing our costs, investing in strategic growth initiatives and strengthening our execution. We believe these efforts will help IPG differentiate and win in emerging laser applications, delivering sustainable and profitable growth over the long term."
Financial Highlights
Fourth quarter revenue of $234 million decreased 22% year over year due to lower sales in materials processing and medical applications, partially offset by growth in advanced applications. Changes in foreign exchange rates reduced revenue growth by approximately $2 million or 1%. Materials processing sales accounted for 85% of total revenue and decreased 24% year over year, primarily as a result of lower sales in welding and cutting applications, partially offset by higher revenue in additive manufacturing and micro-machining applications. Other applications sales decreased 6% year over year due to lower revenue in medical applications partially offset by higher sales in advanced applications. Emerging growth products sales accounted for 48% of total revenue, increasing from 45% in the prior quarter. By region, sales decreased 31% in North America, 22% in China, 22% in Europe and increased 15% in Japan on a year-over-year basis.
Gross margin of 38.6% increased 40 basis points year over year driven by lower product costs, lower tariffs and shipping costs as well as more stable inventory provisions, but was negatively impacted by reduced absorption of manufacturing expenses. Earnings per diluted share (EPS) of $0.18 decreased 80% in the fourth quarter. Foreign exchange transaction gains increased operating income by $1 million and had an immaterial impact on earnings per share. The effective tax rate was 64% due to unusual tax items which totaled $3.4 million and reduced EPS by $0.08 in the quarter. During the fourth quarter, IPG generated $74 million in cash from operations and spent $23 million on capital expenditures and $57 million on share repurchases.
1
Exhibit 99.1
Business Outlook and Financial Guidance
Total backlog was $636 million and consisted of $371 million of orders with firm shipment dates and $265 million of frame agreements. Total backlog decreased by 8%, driven by an 8% decrease in orders with firm shipment dates and a 9% decrease in frame agreements.
“Global industrial demand remains subdued so far in early 2025, which was reflected in our book-to-bill ratio of slightly below one for the fourth quarter. However, with our leading product portfolio, expertise across laser solutions, and strong balance sheet, we believe that we will be well-positioned when the market rebounds. We are navigating through this environment by focusing on execution, managing costs and redeploying the savings to fund strategic investments in long-term growth opportunities, which we expect to show results in 2026 and beyond,” concluded Dr. Gitin.
For the first quarter of 2025, IPG expects revenue of $210 million to $240 million, gross margin between 36% and 39%, and operating expenses of $82 million to $84 million. The Company expects the first quarter tax rate to be approximately 28%, excluding discrete items. IPG anticipates delivering adjusted earnings per diluted share in the range of $0.05 to $0.35 and adjusted EBITDA in the range of $19 million to $35 million.
As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, trade policy changes and trade restrictions, product demand, order cancellations and delays, competition, tariffs, currency fluctuations and general economic conditions. This guidance is based upon current market conditions and expectations, and is subject to the risks outlined in the Company's reports filed with the SEC, and assumes exchange rates relative to the U.S. dollar of euro 0.96, Japanese yen 157 and Chinese yuan 7.19, respectively.
Supplemental Financial Information
Additional supplemental financial information is provided in the unaudited Financial Data Workbook and Fourth Quarter 2024 Earnings Call Presentation available on the investor relations section of the Company's website at investor.ipgphotonics.com.
Conference Call Reminder
The Company will hold a conference call today, February 11, 2025 at 10:00 am ET. To access the call, please dial 877-407-6184 in the US or 201-389-0877 internationally. A live webcast of the call will also be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com.
Contact
Eugene Fedotoff
Senior Director, Investor Relations
IPG Photonics Corporation
508-597-4713
efedotoff@ipgphotonics.com
About IPG Photonics Corporation
IPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to develop innovative laser solutions making the world a better place. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. IPG is headquartered in Marlborough, Massachusetts and has more than 30 facilities worldwide. For more information, visit www.ipgphotonics.com.
2
Exhibit 99.1
Safe Harbor Statement
Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including those statements related to managing our costs effectively, investing in strategic growth initiatives and strengthening our execution, helping IPG to differentiate and win in emerging laser applications, delivering sustainable and profitable growth over the long term, being well-positioned for a market recovery, focusing on execution, managing costs and redeploying the savings to fund strategic investments, expectation to show results in 2026 and beyond, and statements related to revenue, gross margin and operating expenses outlook, tax rate, earnings, adjusted earnings per share and adjusted EBITDA guidance, and the impact of the U.S. dollar on our guidance for first quarter of 2025. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; inability to manage risks associated with international customers and operations; changes in trade controls and trade policies; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 21, 2024) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Adjusted Financial Information
We refer to certain financial measures that are not recognized under United States generally accepted accounting principles (“GAAP”) and are provided as supplemental information to enhance understanding of the company’s financial performance. These measures should not be considered as a substitute for, or superior to, GAAP financial measures.
We have not provided a quantitative reconciliation of forward-looking Non-GAAP net earnings per diluted share and Adjusted EBITDA to their most directly comparable GAAP financial measures because we are unable to estimate with reasonable certainty the ultimate timing or amount of certain significant items without unreasonable efforts. These items include, but are not limited to, the amortization of acquired intangible assets of $2.5 million excluded from the calculation of adjusted EPS, stock based compensation of $11.0 million excluded from the calculation of adjusted EBITDA and the income tax effect of these items.
3
Exhibit 99.1
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(In thousands, except per share data)
Net sales$234,337 $298,893 $977,134 $1,287,439 
Cost of sales143,993 184,726 638,979 745,741 
Gross profit90,344 114,167 338,155 541,698 
Operating expenses:
Sales and marketing21,864 22,161 89,582 85,679 
Research and development25,738 27,714 109,783 98,704 
General and administrative28,893 35,003 124,313 125,749 
Net loss from divestiture and sale of assets— — 190,201 — 
Impairment of long-lived assets
440 — 27,006 1,237 
Restructuring charges (recoveries), net
— 69 — (288)
(Gain) loss on foreign exchange(543)442 5,524 (1,356)
Total operating expenses76,392 85,389 546,409 309,725 
Operating income (loss)13,952 28,778 (208,254)231,973 
Other income, net:
Interest income, net7,409 13,369 45,467 41,735 
Other income, net651 6 899 1,167 
Total other income8,060 13,375 46,366 42,902 
Income (loss) before provision for income taxes22,012 42,153 (161,888)274,875 
Provision for income taxes14,197 725 19,638 55,997 
Net income (loss) attributable to IPG Photonics Corporation$7,815 $41,428 $(181,526)$218,878 
Net income (loss) attributable to IPG Photonics Corporation per share:
Basic$0.18 $0.89 $(4.09)$4.64 
Diluted$0.18 $0.89 $(4.09)$4.63 
Weighted average common shares outstanding:
Basic42,652 46,533 44,336 47,154 
Diluted42,781 46,656 44,336 47,320 

4
Exhibit 99.1
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
December 31,December 31,
20242023
(In thousands, except share and 
per share data)
ASSETS
Current assets:
Cash and cash equivalents$620,040 $514,674 
Short-term investments310,152 662,807 
Accounts receivable, net171,131 219,053 
Inventories284,780 453,874 
Prepaid income taxes17,592 26,038 
Prepaid expenses and other current assets27,300 38,208 
Total current assets1,430,995 1,914,654 
Deferred income taxes, net115,031 88,788 
Goodwill67,241 38,540 
Intangible assets, net55,376 26,234 
Property, plant and equipment, net588,375 602,257 
Other assets32,246 28,425 
Total assets$2,289,264 $2,698,898 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$35,385 $28,618 
Accrued expenses and other current liabilities152,048 181,350 
Income taxes payable17,586 4,893 
Total current liabilities205,019 214,861 
Other long-term liabilities and deferred income taxes59,774 68,652 
Total liabilities264,793 283,513 
Commitments and contingencies
IPG Photonics Corporation equity:
Common stock, $0.0001 par value, 175,000,000 shares authorized; 56,632,974 and 42,548,561 shares issued and outstanding, respectively, at December 31, 2024; 56,317,438 and 46,320,671 shares issued and outstanding, respectively, at December 31, 2023.
6 6 
Treasury stock, at cost, 14,084,413 and 9,996,767 shares held at December 31, 2024 and December 31, 2023, respectively.
(1,505,321)(1,161,505)
Additional paid-in capital1,035,285 994,020 
Retained earnings2,613,868 2,795,394 
Accumulated other comprehensive loss(119,367)(212,530)
Total IPG Photonics Corporation stockholders' equity2,024,471 2,415,385 
Total liabilities and equity$2,289,264 $2,698,898 

5
Exhibit 99.1
IPG PHOTONICS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
Twelve Months Ended December 31,
20242023
(In thousands)
Cash flows from operating activities:
Net (loss) income$(181,526)$218,878 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization61,443 69,621 
Impairment of long-lived assets and restructuring (recoveries), net
27,006 (486)
Provisions for inventory, warranty & bad debt90,377 61,058 
Net loss from divestiture and sale of assets190,201 — 
Other(1,124)1,471 
Changes in assets and liabilities that provided (used) cash, net of acquisitions:
Accounts receivable and accounts payable45,301 (26,714)
Inventories47,725 1,823 
Other(31,507)(29,665)
Net cash provided by operating activities247,896 295,986 
Cash flows from investing activities:
Purchases of and deposits on property, plant and equipment(98,524)(110,483)
Proceeds from sales of property, plant and equipment28,578 31,241 
Purchases of short-term investments(713,151)(1,232,863)
Proceeds from short-term investments1,083,464 1,073,993 
Acquisitions of businesses, net of cash acquired(66,738)— 
Net cash outflow from divestiture
(25,324)— 
Other427 558 
Net cash provided by (used in) investing activities208,732 (237,554)
Cash flows from financing activities:
Principal payments on long-term borrowings— (16,031)
Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards4,195 3,147 
Purchase of treasury stock, at cost(343,816)(223,496)
Net cash used in financing activities(339,621)(236,380)
Effect of changes in exchange rates on cash and cash equivalents(11,641)(5,587)
Net increase (decrease) in cash and cash equivalents
105,366 (183,535)
Cash and cash equivalents — Beginning of period514,674 698,209 
Cash and cash equivalents — End of period$620,040 $514,674 
Supplemental disclosures of cash flow information:
Cash paid for interest$277 $1,284 
Cash paid for income taxes$40,632 $62,916 

6
Exhibit 99.1
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF AMORTIZATION OF INTANGIBLE ASSETS (UNAUDITED)
 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(In thousands)
Amortization of intangible assets:
Cost of sales$631 $550 $2,000 $2,242 
Sales and marketing1,122 1,283 3,933 5,653 
Total amortization of intangible assets$1,753 $1,833 $5,933 $7,895 

7
Exhibit 99.1
IPG PHOTONICS CORPORATION
SUPPLEMENTAL SCHEDULE OF STOCK-BASED COMPENSATION (UNAUDITED)
 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(In thousands)
Cost of sales$2,215 $1,265 $8,687 $7,929 
Sales and marketing1,289 1,376 5,941 5,421 
Research and development2,191 3,225 10,239 9,396 
General and administrative2,025 6,276 12,283 16,858 
Total stock-based compensation7,720 12,142 37,150 39,604 
Tax effect of stock-based compensation(1,687)(2,644)(8,191)(8,660)
Net stock-based compensation$6,033 $9,498 $28,959 $30,944 
Three Months Ended December 31,Twelve Months Ended December 31,
2024202320242023
(In thousands)
Excess tax (detriment) benefit on stock-based compensation
$(419)$(94)$(4,532)$(1,835)
8
v3.25.0.1
Document and Entity Information
Feb. 11, 2025
Cover [Abstract]  
Amendment Flag false
Entity Central Index Key 0001111928
Document Type 8-K
Document Period End Date Feb. 11, 2025
Entity Registrant Name IPG PHOTONICS CORP
Entity Incorporation, State or Country Code DE
Entity File Number 001-33155
Entity Tax Identification Number 04-3444218
Entity Address, Address Line One 377 Simarano Drive
Entity Address, City or Town Marlborough
Entity Address, State or Province MA
Entity Address, Postal Zip Code 01752
City Area Code 508
Local Phone Number 373-1100
Title of 12(b) Security Common Stock, par value $0.0001 per share
Trading Symbol IPGP
Security Exchange Name NASDAQ
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
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