IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2025.
Fourth-quarter revenue of $274 million increased 17% year over year, driven by growth across materials processing, medical, and advanced applications. Changes in foreign exchange rates increased revenue growth by approximately 2%. Materials processing sales accounted for 85% of total revenue and increased 17% year over year, driven by growth in welding, marking, additive manufacturing applications, and cleaning, partially offset by lower sales in micromachining.
GAAP gross margin of 36.1% decreased year over year due to higher product cost and tariffs, partially offset by lower inventory provisions.
Adjusted EBITDA was $41.2 million and adjusted earnings per diluted share (EPS) was $0.46 in the fourth quarter. During the fourth quarter, IPG spent $18 million on capital expenditures and $4 million on share repurchases.
“We delivered fourth quarter results above our expectations with another quarter of double-digit year-over-year revenue growth,” said CEO Dr. Mark Gitin.
“Our performance was driven by the team’s execution on our key strategic initiatives, growth in additive and battery manufacturing, and continued stabilization in industrial demand.”
For the first quarter of 2026, IPG expects revenue of $235 million to $265 million, adjusted gross margin between 37% and 39% and operating expenses of $90 million to $92 million.
IPG shares spiked $15.96, or 14.4%, to $126.86.
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