Established in 1990 and headquartered in Oxford, Massachusetts, IPG Photonics Corporation is a leading global developer and manufacturer of high-performance fiber, diode, ...
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Operator: Good morning, and welcome to IPG Photonics' First Quarter 2026 Conference Call. Today's call is being recorded and webcast. At this time, I'd like to turn the call over to Eugene Fedotoff, IPG's Senior Director, Investor Relations for introductions. Please go ahead with your conference. Eugene Fedotoff: Thank you, and good morning, everyone. With me today is IPG Photonics CEO, Dr. Mark Gitin, and Senior Vice President and CFO, Tim Mammen. On today's call, Mark will provide a summary of our first quarter results as well as the overall demand environment and then walk you through the progress we are making on our long-term strategy. After that, he will turn it over to Tim to provide financial details. Let me remind you that statements made during this call that discuss our expectations or predictions of the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause the company's actual results to differ materially from those projected in such forward-looking statements. These risks and uncertainties are detailed in our Form 10-K for period ended December 31, 2025, and our reports on file with the Securities and Exchange Commission. Any forward-looking statements made on this call are the company's expectations or predictions as of today, May 5, 2026 only, and the company assumes no obligations to publicly release any updates or revisions to any such statements. During this call, we will be referencing certain non-GAAP measures. For more information on how we define these non-GAAP measures and the reconciliation of such measures is the most directly comparable GAAP measures as well as additional details on reported results, please refer to the earnings press release, earnings call presentation and the financial data were posted on our Investor Relations website. We will also post these prepared remarks on our website after this call. With that, I'll now turn the call over to Mark. Mark Gitin: Thanks, Eugene. Good morning, everyone. First quarter revenue exceeded our expectations, increasing 17% year-over-year. We continue to see improved demand for our laser solutions, particularly in battery manufacturing and medical applications, which drove our strong performance in the quarter. We maintained a disciplined focus on our growth initiatives across all of our markets, delivering solid first quarter results and building momentum for future growth. Before looking more closely at our first quarter sales performance, I would like to highlight our updated revenue reporting framework, which better aligns with our strategic growth initiatives, making it easier to understand and track our progress. It also provides a clear separation between our industrial and nonindustrial revenue streams, giving better visibility into our focus areas and splitting the business into 2 distinct buckets, with unique performance and growth profiles. This reporting combines applications into 2 …
Est. EPS $0.46 · Revenue $283.07M · 6 analysts
Est. EPS $0.47 · Revenue $290.43M · 6 analysts
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| The total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). |
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Mark Milton Gitin | Chief Executive Officer & Director | USD 2,071,500 | — | 1967 | Active |
Eugene A. Scherbakov | Director & Advisor | USD 1,104,979 |
| — |
| 1948 |
| Active |
Timothy V. Mammen | Senior Vice President & Chief Financial Officer | USD 1,043,683 | Male | 1970 | Active |
Trevor D. Ness | Senior Vice President & Chief Revenue Officer | USD 970,719 | Male | 1973 | Active |
Angelo Lopresti | Senior Vice President, General Counsel & Secretary | USD 939,673 | Male | 1964 | Active |
Paulus Bucher | Senior Vice President of Global Operations | USD 778,468 | — | 1967 | Active |
Igor Samartsev | Senior Vice President & Chief Scientist | USD 560,763 | — | 1963 | Active |
Eugene Fedotoff | Senior Director of Investor Relations | — | Male | — | Active |
Jennifer Kartono | Senior Vice President & Chief Human Resources Officer | — | Female | 1970 | Active |
Mary E. Buttarazzi | Vice President, Corporate Controller, Chief Accounting Officer & Principal Accounting Officer | — | Female | 1976 | Active |
Est. EPS $1.10 · Revenue $1.12B · 7 analysts
Est. EPS $0.38 · Revenue $286.22M · 2 analysts
| $1.0B |
| +2.7% |
| +4.9% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $31.1M | +117.1% | +230.9% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +38.0% | +9.8% | +7.8% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +1.3% | +106.1% | +155.8% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +3.1% | +116.7% | +215.4% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $-3.5M | -102.3% | +178.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | -0.3% | -102.3% | +174.8% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 0.8% | -8.6% | -0.9% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 6.08x | -12.9% | +6.6% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $2.4B | +5.9% | +0.1% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 0.73 vs 0.62 | +18.5% | 0.12 vs 0.46 | -73.7% |
| Revenue Surprise | $1.0B vs $979.5M | +2.5% | $278.6M vs $283.1M | -1.6% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Sep 2, 2026 | Valentin Gapontsev Trust I | 10 percent owner | Common Stock | D | 4,591 | $75.65 |
| Sep 2, 2026 | Valentin Gapontsev Trust I | 10 percent owner | Common Stock | D | 4,715 | $76.25 |
| Sep 1, 2026 | Valentin Gapontsev Trust I | 10 percent owner | Common Stock | D | 18,091 | $75.14 |
| Aug 26, 2026 | PEELER JOHN R | director | Common Stock | A | 1,158 | $74.57 |
| Aug 26, 2026 | PEELER JOHN R | director | Common Stock | A | 1,552 | $72.84 |
