Company: IPGP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001111928-25-000168
Chunk: 123

Company: IPG PHOTONICS CORP
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 2
Chunk 123
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8 million in bad debt expense. As a percentage of sales, general and administrative expense increased to 14.1% from 12.8% for the nine months ended September 30, 2025 and 2024, respectively.

Net loss from divestiture and sale of assets. During the nine months ended September 30, 2024 we incurred a net loss from divestiture and sale of assets of $190.2 million. The loss was primarily related to the divestiture of our Russian operations for $197.7 million, partially offset by a gain on sale of assets of $7.5 million related to the sales of a building and land in the U.S. and a building in the U.K. There were no divestitures or sale of assets during the nine months ended September 30, 2025.

Impairment of long-lived assets. During the nine months ended September 30, 2024, we completed an impairment analysis of the assets in Belarus as a result of new EU sanctions that would limit our ability to supply laser cabinets and other 

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mechanical components from our factory in Belarus. Based on this analysis, we recorded $26.6 million of impairment of long-lived assets. There was no impairment during the nine months ended September 30, 2025.

Restructuring charges. We incurred $0.4 million in restructuring charges during the nine months ended September 30, 2025, related to an assessment and further oversight of our Belarusian operations. There were no restructuring charges during the nine months ended September 30, 2024.

Effect of exchange rates on net sales, gross profit and operating expenses. We estimate that, if exchange rates relative to the U.S. dollar had been the same as the comparable nine-month period one year ago, which were on average euro 0.92, Japanese yen 151 and Chinese yuan 7.19, respectively, we would have expected net sales for the nine months ended September 30, 2025 to be $2.3 million lower, gross profit to be $0.5 million lower and total sales and marketing, research and development, and general and administrative expenses would have been $0.9 million lower.

Loss on foreign exchange. We incurred a foreign exchange transaction loss of $7.0 million for the nine months ended September 30, 2025 as compared to a loss of $6.1 million for the nine months ended September 30, 2024.