IPG Photonics Corporation (NASDAQ: IPGP) has reported its financial results for the fourth quarter ended December 31, 2024. The company's revenue for the three months ended December 31, 2024, was $234.3 million, which represented a 22% decrease from the same period in the previous year. The gross margin for the same period improved to 38.6% from 38.2% in 2023, although the operating margin decreased to 6.0% from 9.6% in 2023.
The company's net income attributable to IPG Photonics Corporation for the fourth quarter of 2024 was $7.8 million, a significant 81% decrease from the same period in 2023. This translated to earnings per diluted share of $0.18, marking an 80% decrease from the prior year.
In terms of revenue breakdown, sales in materials processing, which accounted for 85% of total revenue, decreased 24% year over year. However, emerging growth products sales increased to account for 48% of total revenue, up from 45% in the prior quarter. Geographically, sales decreased in North America, China, and Europe, but increased in Japan on a year-over-year basis.
IPG Photonics Corporation also provided its business outlook and financial guidance for the first quarter of 2025. The company expects revenue to be in the range of $210 million to $240 million, with a gross margin between 36% and 39%, and operating expenses of $82 million to $84 million. The company anticipates 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 for the first quarter of 2025.
In terms of backlog, IPG Photonics Corporation reported that total backlog was $636 million, with $371 million of orders with firm shipment dates and $265 million of frame agreements. This represented an 8% decrease in total backlog, driven by declines in both orders with firm shipment dates and frame agreements.
The company's financial results and outlook reflect its focus on managing costs, investing in strategic growth initiatives, and navigating through challenging market conditions. IPG Photonics Corporation remains optimistic about its long-term prospects, with a belief that its leading product portfolio and strong balance sheet will position it well for future growth opportunities.
For further details and supplemental financial information, the unaudited financial data workbook and fourth-quarter 2024 earnings call presentation are available on the investor relations section of IPG Photonics Corporation's website. The market has reacted to these announcements by moving the company's shares -8.4% to a price of $61.72. Check out the company's full 8-K submission here.
