IPG Photonics reported double-digit revenue growth for a fourth consecutive quarter, with third-quarter sales rising 15% year over year to $287.5 million. Higher sales and improved margins lifted operating income and earnings, while the company pointed to demand for welding and additive-manufacturing products and growth in defense and semiconductor markets.
The laser-maker also said its planned acquisition of Lumibird Medical is expected to close in the fourth quarter. The company said the deal is intended to expand its presence in medical markets and add to revenue in its Advanced Solutions business.
Key details
- Third-quarter revenue: $287.5 million, up 15% from $250.8 million a year earlier. IPG said revenue was above the midpoint of its guidance.
- Profitability improved: Gross margin increased to 40.7% from 39.5%, and operating margin rose to 7.2% from 3.1%. Operating income was $20.8 million, compared with $7.9 million.
- Earnings grew: Net income was $20.3 million, up from $7.5 million. Diluted earnings per share rose to $0.47 from $0.18.
- Adjusted results also advanced: Adjusted gross margin was 41.0%, compared with 39.8% a year earlier. Adjusted EBITDA increased 39% to $51.5 million, while adjusted diluted earnings per share rose 74% to $0.61. These are non-GAAP measures.
- Growth across business areas: Management attributed growth in Industrial Solutions to demand for its welding and additive-manufacturing products. It cited execution of strategic initiatives in defense and semiconductor markets as drivers of growth in Advanced Solutions.
- Nine-month results: Revenue for the first nine months of 2026 was $831.6 million, up 14% from $729.3 million. Net income rose to $27.1 million from $17.8 million, and diluted earnings per share increased to $0.63 from $0.42. Adjusted EBITDA was $135.2 million, up from $101.2 million.
- Lumibird Medical acquisition: IPG expects the acquisition to close in the fourth quarter. The announcement did not provide transaction terms.
What changes for investors
The quarter showed stronger sales alongside better reported margins and earnings. The Lumibird Medical deal remains a pending transaction; if completed as expected, IPG says it will broaden its medical-market reach and increase Advanced Solutions revenue.