IPG Photonics boosts adjusted earnings on industrial growth
The fiber laser manufacturer reported adjusted earnings per share of $0.58, a 93% increase from the same period last year.
IPG Photonics (IPGP), the fiber laser manufacturer, reported a third consecutive quarter of double-digit year-over-year growth in the second quarter of 2026.
Revenue rose 11% to $278.6 million. Adjusted earnings per share increased 93% to $0.58, compared to $0.30 in the second quarter of 2025. Adjusted EBITDA rose 54% to $48.5 million from $31.5 million a year earlier.
Profitability improved as GAAP gross margin expanded to 40.4% from 37.3% in the prior-year quarter. The expansion was driven by lower product costs, reduced inventory provisions, and $4.7 million in tariff refunds. Adjusted gross margin rose to 40.7%, up from 37.8% in both the first quarter of 2026 and the second quarter of 2025.
Growth was led by the Industrial Solutions segment, where revenue grew 16% to $237 million. This growth rate slowed from the 21% increase recorded in the first quarter. Conversely, Advanced Solutions revenue decreased 9% to $41.5 million, an acceleration of the 5% decline seen in the first quarter.
Regional performance diverged during the period. Sales in Asia rose 19% and Europe rose 5%, while North American sales decreased 2%. Emerging growth products now account for 58% of total revenue, up from 53% in the first quarter.
For the third quarter of 2026, the company expects revenue between $265 million and $295 million. It projects adjusted gross margin between 37.5% and 40.5% and adjusted EBITDA between $35 million and $51 million.
IPG Photonics announced the acquisition of Lumibird Medical to expand its presence in medical markets within the Advanced Solutions segment. The company also recorded a $17.6 million impairment charge during the first half of 2026.