Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 116

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 116
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 and deferred tax liabilities and our effective tax rate in the future. The legislation does not have a material impact on our financial statements. 

Major customers. While we have historically depended on a few customers for a large percentage of our annual net sales, the composition of this group can change from period to period. Net sales derived from our five largest customers as a percentage of our net sales was 15% for the nine months ended September 30, 2025 and 13% for the full years ended December 31, 2024 and 2023, respectively. One of our customers accounted for 13% and 12% of our net accounts receivable as of September 30, 2025 and December 31, 2024, respectively. We seek to add new customers and to expand our relationships with existing customers. We anticipate that the composition of our significant customers will continue to change. We generally do not enter into agreements with our customers obligating them to purchase a fixed number or large volume of our products. If any of our significant customers substantially reduced their purchases from us, our results would be adversely affected.

Results of Operations for the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024

Net sales. Net sales increased by $17.7 million, or 7.6%, to $250.8 million for the three months ended September 30, 2025 from $233.1 million for the three months ended September 30, 2024.

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The table below sets forth sales by application: 

Three Months Ended September 30,20252024Change(In thousands, except for percentages)Sales by Application% of Total% of TotalMaterials processing$219,427 87.5 %$207,063 88.8 %$12,364 6.0 %Other applications31,365 12.5 %26,080 11.2 %5,285 20.3 %Total$250,792 100.0 %$233,143 100.0 %$17,649 7.6 %

The table below sets forth sales by type of product and other revenue:

Three Months Ended September 30,20252024Change(In thousands, except for percentages)Sales by Product% of Total% of Total High Power Continuous Wave ("CW") Lasers $76,553 30.5