Q2 2025 IPG Photonics Corp Earnings Call
Good morning and welcome to ipg photonic. Second quarter 2025 conference call.
Today's call is being recorded and webcast.
then uh walk you through the progress, we are making on our long-term strategy after that. He will turn it over to team to provide Financial details and then you'll open the poll for questions.
Let me remind you that statements made during this call discuss our expectations or predictions of the future are forward-looking statements.
This forward-looking statements are subject to risks and uncertainties, and can cause, uh, the company is actual results to differ materially from those projected. In such forward-looking statements, these risks and services are detailed in our form 10 K for the period and the December, 31st 2024, and our reports on filed with the Securities and Exchange Commission.
Any forward-looking statements made on this call are the company's expectations or predictions as of today, August 5th. Uh 2025 only and the company assumes. No obligations to publicly update any uh publicly provide any updates or revisions to any such statements. During this call. We will be with referencing to certain non-gaap measures
For more information on how we Define these non-gaap measures and Reconciliation of such measures to the most directly comparable, gaap measures.
As well as additional details on our reported results, please refer to the earnings press release earnings call presentation and the financial data workbook posted on our industrial relations website.
Thanks Eugene. Good morning, everyone second quarter Revenue. Came in above our expectations, increasing 10%, sequentially and 2%, year-over-year. Excluding destitutes our first year-over-year Revenue increased since 2022.
Our results were driven by a combination of a modest demand Improvement in multiple markets and geographies as well as our continued. Focus on our strategy to drive profitable growth.
We're investing in key strategic initiatives targeting a 5 billion Tam that offers us hundreds of millions of dollars in Revenue growth opportunities. And we are starting to see results.
By quickly, adjusting our operations. We were also able to ship approximately 10 million dollars out of the 15 million dollars in customer orders that we believed were at risk of being delayed due to tariffs and we're not included in our second quarter guidance.
Starting with our materials processing business, we saw a sequential demand Improvement in welding cutting and marking applications with some growth in e-mobility and general industrial markets.
Our unmatched capabilities in lasers and welding process monitoring Technologies combined with deep applications expertise. Continue to differentiate ipg in the M Marketplace.
This enabled us to secure key wins in EV manufacturing despite ongoing uncertainty in the market.
In China renewed capacity investments in battery manufacturing drove growth in our welding on the industrial side. A stabilizing demand environment supported sequential growth in welding cutting and marking applications.
Booking Trends are encouraging with demand showing signs of improvement and book to bill at approximately 1 on our higher second quarter Revenue. As we move into the second half of the year,
We have also seen improvement and stabilization in the leading indicators such as PMIs and industrial production through June. However, the demand environment remains uncertain.
We also expect demand for our products will benefit from increased on-shoring and local investments in automated production.
We're also excited that early returns from our growth Investments helped to drive Revenue in the quarter.
Our strategic focus on developing Innovative lasers, and photonic solutions to expand into medical micro Machining. And advanced applications is showing results.
In advanced applications, we achieved another quarter of record Revenue, driven by higher demand across all categories, primarily in directed energy, semiconductor and scientific applications.
Last quarter, I shared that strategic Investments to grow. Our Advanced applications business allowed us to achieve a key Milestone, 6 months ahead of schedule
I'm thrilled to announce that we've now delivered multiple units, of our first laser Counter UAV solution, crossbow, to lockie, Martin.
This disruptive TurnKey Directed Energy System is enabled by IPG's laser systems expertise and high-performance commercial, single-mode lasers, supported by our high-volume manufacturing capabilities.
Crossbow, is a scalable and cost-effective Laser defense system that can neutralize unmanned aerial threats and can operate as a standalone system or integrate into layered defense architectures.
Over the past 6 months, both ipg and Lockheed Martin have conducted extensive field testing and customer demonstration of crossbow, validating the systems operational, effectiveness against the increasing threat of smaller class, Group 1 and group, group 2 drones.
We'll be showcasing crossbow. This September at dsci in London. 1 of the industry's leading defense exhibitions and we anticipate strong interests from both defense and Commercial customers for protection of critical military and civilian assets.
This is another example of how ipg leverages our core laser and photonics Technologies to address critical Market needs.
turning to our other growth initiatives micro Machining delivered, strong Revenue, compared to the prior year, despite some shipment delays related to tariffs
This is a high potential market for ipg, where we see strong alignment between our Technologies and the key applications of our customers.
As we shared last quarter, we were also making good progress in medical with a new Urology. Customer that is already helping to drive Medical Revenue growth.
Looking ahead. We expect momentum to continue with additional product, introductions, plan for Q4 2025 2026 and Beyond. As we execute on our strategic development roadmap,
Investments are laying the foundation for long-term growth.
Finally, our Capital, allocation strategies and integral part of our growth strategy.
as we said before our primary focus is on organic growth investments in strategic m&a,
we expect to spend approximately a hundred million dollars on capex in 2025 to expand capacity and capture growth opportunities.
Within m&a we are evaluating tuck and opportunities with a range of 50 million dollars to 200 million dollars in Revenue.
Our revenue and competitive position in cleaning applications has benefited from the clean laser acquisition that we made at the end of last year and we continue to Target companies that offer differentiated technology or Market access to accelerate strategic growth initiatives.
During the quarter. We continue to opportunistically return cash to shareholders repurchasing, 30 million of ipg Stock Building on the 1 billion dollars in share repurchases over the past 3 years.
Since joining, ipg just over a year ago. I've been focused on setting the foundation to drive profitable growth, including strengthening the organization
We achieved a recent Milestone on this objective, with the appointment of 5, key leaders, including 4 recent hires to help Advance our strategy and support continued Global growth. These leaders have a proven track record of driving strategy and execution they each bring distinct strengths, deep expertise and a shared commitment to collaboration and innovation.
What these new appointments to our executive leadership team, we are shaping a stronger ipg better equipped to execute with speed serve our customers with excellence and drive our next chapter of profitable growth. I am pleased to welcome him into the team and excited about what we will be able to accomplish.
I am proud to report that we've been effectively adapting to the dynamic operating environment. By leveraging, the flexibility of our Global manufacturing supply chain to minimize the impact of tariffs.
We've demonstrated agility shifting production across regions to better serve customers.
We also continue to work on alternatives to optimize our tariff exposures. As a result, we were able to shift most of the orders that were previously anticipated to be delayed due to tariffs and longer Customs processing.
Well, new tariffs have recently been announced.
Our Global footprint and supply chain flexibility position us well to continue meeting our customers needs.
As I mentioned earlier, our second quarter book to Bill ratio was approximately 1 on higher revenue and we are encouraged by signs of further demand stabilization in our business.
Industrial production has been improving and inventories at some of our cutting OEM customers of normalized, supporting a return to more typical purchasing Behavior.
We don't believe the recent increase in demand is driven by customers pulling orders forward in response to tariffs that said, the demand environment continues to be sensitive to external factors. So we are approaching the second half with cautious optimism.
In closing, I am encouraged by the progress that we're seeing both in the stabilization of our Core Business and in advancing our strategy to drive laser adoption markets with high growth potential.
While tariff related pressure and uncertainty persists.
we remain focused on what we can control and confident in our ability to navigate this environment while executing for profitable growth, with that said, I will now turn the call over to Tim
Thank you, Mark and good morning everyone.
My comments will generally follow the earnings call presentation, which is available on our investor relations website.
I will start with Revenue Trends by application on slide 5.
revenue from materials processing, decreased 6%, year-over-year as a result of divestitures and lower sales, and cutting welding and additive manufacturing applications, partially offset by higher Revenue in micro Machining and the acquisition of clean laser
revenue from other applications increased 21%.
Driven by higher sales and medical and advanced applications.
As Mark already mentioned, we Source sequential Improvement in Revenue in cutting welding and marking.
Welding revenue grew due to customer wins and improvements in industrial demand, as well as EV battery investments, primarily in China.
Demand in Asia and North America.
Marking an engraving sales were also more stable.
Our cleaning Revenue, improved sequentially and continued to benefit from clean laser.
Mark already highlighted strong results in our medical and advanced applications in the quarter.
So I won't go over them again.
Our emerging growth products performed. Well in the quarter increasing to 54% of sales driven by a wide variety of laser sources, subsystems and systems.
Moving to the revenue performance by region on slide 6.
Sales in North America, increased 31% sequentially and were down 4% year-over-year.
Growth was primarily driven by higher sales and medical and advanced applications as well as improved sales to cutting oems.
Despite more stable, sequential performance.
Welding revenue was down compared to the prior year due to soft demand from EV manufacturing in the region.
Sales in Europe was stable.
With less than a 1% sequential decline.
And down 11% year-over-year, excluding 11 million in diverse stages.
Lower cutting and Welding sales, a result of soft industrial demand.
Were partially offset by CleanLaser.
Revenue in Asia.
Increased 4% sequentially and 14% year-over-year.
Sales in welding and cutting as well as advanced applications.
We have continued to see a strong demand recovery in e-mobility.
coupled with our business wins in EV welding applications,
Sales to additive manufacturing were lower in the quarter due to timing of shipments or demand remains strong.
Moving to the financial performance review on slide 7.
Revenue came in above our expectations at $251 million.
Up, 10% sequentially and down. 3%, on a year-over-year basis.
Foreign currency increased Revenue by approximately 4 million or 1% this quarter.
Gross margin was 37.3%.
Flat year-over-year.
To gross margin was 37.8% at the top of our guidance and was driven by improved. Manufacturing cost absorption and a decrease in inventory. Provisions, mostly offset by higher cost of products, sold due to Geographic and product, mix and increased shipping costs.
The impact of tariffs was 115 basis points, which was better than our expectations.
Operating expenses were above last year's level.
Primarily due to the investments we are making in key areas that are central to our strategy, as well as investments in our organization, which Mark highlighted earlier on this call.
Gap, operating income was break even
and our adjusted ebitda was 32 million.
Slightly above the top end of our guidance.
Gaap, net income was 7 million or 16 cents per diluted share.
Adjusted earnings per diluted share, which includes stock-based compensation. But exclude amortization of intangibles, other acquisition related charges.
Foreign exchange loss and discreet tax. Items was 30 cents in the second quarter above, our guidance range.
Moving to a summary of our balance sheet and cash flow on slide 8.
We entered the quarter with cash, cash, equivalents and short-term Investments of 900 million and no debt.
During the second quarter, we spent 15 million on Capital expenditures, and 30 million on repurchasing, ipg shares.
Supporting our balance Capital, allocation framework of investing in growth and returning cash to shareholders.
We now expect capex of approximately 100 million dollars in 2025.
As we expand capacity, primarily in Europe.
We expect operating cash flow to improve significantly in the second half substantially offsetting capex.
Looking ahead. We expect capex to decrease significantly and free cash flow to improve next year.
Moving to our outlook on slide 9.
We expect revenue of 225 million to 255 million.
And adjusted gross margin between 36% and 38%.
Including the potential for a slightly higher impact of tariffs.
with investments in the growth of our business and strengthening the organization,
We expect our operating expenses to remain elevated at between 89 million and 91 million in the third quarter.
We anticipate delivering adjusted earnings per diluted share in the range of $0.05 to $0.35.
With a proximately 42.5 million diluted common shares outstanding.
Our adjusted ebitda is expected to be between 22 million and 366 million.
In closing, we are pleased to see signs of continuing revenue improvement.
Coupled with results from our strategic initiative.
And we believe we have significant operating leverage in our model.
Our strong balance sheet, gives us a significant Advantage, given the near-term uncertainty in the operating environment.
With that, we'll be happy to take your questions.
Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad,
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1 moment, please while we pull for questions.
Our first question comes from Jim Rudy with Naming Company. Please proceed with your question.
Hi, thanks. Good morning. Uh, congrats on the quarter first off on the, um,
The book-to-bill. I'm wondering if, um, you could provide any color on book-to-bill by region. Was there much variability in terms of the regional bookings?
Hey Jim. Uh, thanks very much for the question. Question, good to hear from you. Uh, actually booked to bill was uh, 1 and really, uh, just about 1 across all regions.
Good. Um I was of course, on go ahead. Sorry. No, please mark. I was just gonna say that that was also on top of the higher Revenue as well. So we're, you know, quite pleased with that.
Got it. My follow up Mark is um on the directed energy commentary. Um yeah well I'm wondering how you're thinking about the opportunity for itg over the next few years and just relative to maybe the other emerging growth opportunities you're targeting, you know. And can you say for instance how many customers you're working with in this area? Thank you.
Yeah, sure. So, thanks Jim. So, the directed energy again is part of our, uh, part of the work that we're doing taking the key Technologies within ipg. So this is the lasers as well as the broader photonics and the applications understanding to to Really directed to some some key areas of growth. And of course the advanced is 1 with the directed energy as well as the medical and uh micro Machining areas but specifically in directed energy. Uh what I can say is that this is a a very interesting market for us in terms of Market size, it's a little bit hard to estimate, but it's a, it's a developing Market. There's kind of billions of dollars spent each year um on the order of a billion dollars in the US.
And our solution, uh, addresses, a key segment of the market. And that's the, the key part that we believe is, uh, is growing. So this is the, as I talked about on the, on the call there, this is addressing the smaller class, drones the group 1 and group, group 2 drones, which is the biggest issue today. Or let's say a very significant issue today. Both in, uh, Warfare we've seen that as an issue, as well as in
It is uh is a broader 1 that has both uh opportunities in the Defence sector, but also the civilian uh, the civilian piece and we'll be, of course, I mentioned that we've done extensive testing with Lockheed that that's going very well and it will be bringing the system to the dsci show, uh, in. Um, in September where we'll have a chance to talk to a broader customer base as well. But overall, you know, very excited with the progress, the team has made, uh, and and again, this is a great uh, application for us because it's the combination of our core Technologies with the, with the single mode lasers as well as the photonics and then it's key for us. Because again, this is something that we can bring into our commercial manufacturing infrastructure, where we're manufacturing volumes of these single mode, uh, lasers but also systems and subsystems.
So we can do this at a very disruptive price point uh and the cost point and that's why we believe that. You know, this is a a unique position to be able to address this, uh, you know, these this smaller drone class at a, at a cost point. That could be uh, broadly used
Thanks Mark, uh, appreciate the additional color on that. I'll jump back in the queue.
As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad 1. Moment, please while we pull for questions,
Our next question comes from Ruben Roy with stifel please proceed with your question.
Thank you. Hi Mark. Um, and hi, Tim, uh, Mark. I wanted to start with maybe just walking through uh, the Outlook, it's great to see the progress. Um, and, and, you know, some signs of stabilization. But when we look at the Q3 guidance, maybe you can just walk us through the puts and takes
Of that guidance. Um,
so you you had 10 million that you had previously anticipated out of the 15, come through in Q2 and maybe just an update on how you're thinking about potential tariff impact as um a portion of that guidance for Q3 and then you had a comment about cautious, optimism for the second half and I'm just wondering
You know what kind of visibility you might be getting from your customers. As you as you think about the second half I know is do you think that there's going to be continued stabilization and maybe improving uh bookings into Q4? Thank you.
All right. Thanks. Thanks, very much. So, a couple of the pieces here, uh, again, we're we're very happy to see the book to Bill, uh, of 1. And again, that book to Bill on top of uh the the higher Revenue as you as you mentioned, we were able to ship about uh 10 million of the 15 million that we expected to move into Q3, uh, because the team did a fantastic job of being able to mitigate the Tariff issues. Um, because we have this flexibility, as we talked about to be able to move the um, manufacturing from region to to region and optimize the uh the Tariff situation. We believe will be able to do that. You know. Also, of course, going forward. And we did see, you know, very good demand in uh in material processing, we're seeing the industrial businesses, the industrial markets. Uh you know, there's been improvement over the last uh the last few quarters. You've seen that some of that Improvement in
PMI. So, you know, we're seeing that industrial um,
Pickup and we're seeing it in material processing, broadly across uh you know, across each of the regions and and broadly across many of the applications including the areas of a welding, we talked about the EV pickup we've seen that uh also in cutting. So we've seen our our cutting the um the inventories of some of our oems have normalized. So we're seeing
That area pick up. Um, and we've seen, you know increases, you know, continued demand increases in things like additive manufacturing uh as well as again broad-based. We've saw we saw strong, uh, you know, strong medical. We have, uh, you know, we picked up another customer as we talked about in medical. That's, uh, you know, attached to our roadmap of Urology. So that's, you know, that's continuing to see growth. So again, we're seeing, you know, kind of broad-based. Um, uh,
Improvement that I would say and I, I would say cautious optimism, and the reason I'm saying, cautious optimism, because of course, there's still tariff uncertainties and we're still, you know, in a macro environment that that hasn't completely recovered for sure. So that's, that's really my comments on on that piece.
Thank you for that. Yeah, go ahead. Tim, we went through and started
The usual protests on, on generating guidance. So there's nothing particularly unusual in there. I think the only thing I think that's good is that even at the midpoint were slightly above where the street was? And I think that's the first time in in quite a while that that we've been able to guide at a midpoint that is it is mildly positive. So, um, I think we're more than bouncing along the bottom at the moment, we've probably got a little bit of lift off
A little bit of lift off at the moment.
A little bit indeed and yes, I can't remember the last time. Um, yeah there there you guys had a had a, a guide above our number so that that's great. Um, if I if I could follow up on Jim's question, mark on on the defense stuff um would love to understand how you're thinking about high energy as well. There was um you know there's been some uh Awards and actually you know, just yesterday uh another award for 100 um uh kilowatt system and so you know, is that part of your
Strategy longer term perhaps or or you, you know, focus more on this lower cost stuff that you talked about. Thank you.
Yeah. So what I would say is that, you know, we've been, we've been playing in the overall, uh, market and directed energy for many years. We have, you know, very high performance. I'd say the best single mode, uh, lasers that are applied, you know, broadly in the marketplace as well as our amplifiers so those tend to play in, in many of those programs. Um, but but the high power is not what
Crossbow is this system is really focusing on threats from these Group 1 and group 2 drones that you know the smaller the smaller drones that are more widespread and you know can be addressed with the relatively low power using these um using our high brightness, single mode lasers.
So that's, that's really the the area that we're talking about here and we think that that's a, as I mentioned, is a significantly, uh, growing Market because it's, it's 1 of the biggest issues today. If you, you know, as you're as you're reading, it's a big issue. Um, on the battlefield today these small drones that you can buy for you know hundreds of dollars can uh inflict major damage and then also you know it's an issue in the civilian infrastructure borders Etc as well and we're starting to to see more of that and it's it's only increasing. So you know, we think that's a really good area for us to to play.
Great. And I if I could squeeze 1 more in for Tim, Tim on the gross margin. Uh, I might have missed it but did you give? Um, as part of that uh, 36 to 38%, uh gross margin number it, sounded like a little bit of a higher impact from Tara so you give the inventory absorption number that uh, is is impacting the gross margin
Hi, you're relative to Q2. We are still we had an improvement in under absorption that we set benefited, gross margin a bit. We're still relative to Peak efficiency probably 500 basis points uh of getting getting back to that that that more optimal level that we saw a meaningful Improvement couple hundred basis points Improvement in the second quarter and expect that to flow through to to Q3 as well.
Okay, thank you. That's all I had. Thank you.
Our next question comes from Scott, Graham with Seaport research Partners, please, receive with your question.
Hi, I'm good. Good morning and congratulations on a nice quarter.
Wanted to ask a.
question here, including piggybacking off of what you just said about gross margins and but first
Did you kind of tell us how the order book looked as the quarter progressed?
And maybe any specific end markets in particular or anything, you could mention would be helpful. Yeah, I don't mean in dollars, I kind of mean year-over-year because we all know that June is typically the largest, you know, month for a dollar orders. I'm just hoping as on a year-over-year basis, you could talk about the progression.
Yeah, I mean I think year-over-year the total increase the total value of bookings increased. We haven't given that number but it was
It was up uh compared to Q2 24 I think the overall tone during the quarter was significantly improved compared to a year ago.
Uh, April was actually quite a strong bookings month, so it wasn't back loaded. Our Revenue happened to be a bit more back. Loaded in, in the quarter with June being very strong on Revenue that probably reflected. The fact that the bookings in in April um, were pretty good. May was a little bit weaker and then June picked up again.
So we're actually, we went scrambling to get to this number at the end of the quarter. It was, it was easier than it has been on not just a year ago. But even the last couple of quarters where bookings have been more weighted to the end of the year.
I think he he left our next question comes from Jim Rudy with Neiman Company. Please proceed with your question.
I just wanted to uh, ask about the systems business, um, you know, smaller part of your business obviously. But first year on year, in sequential increase that we've seen in a while and I I want to understand what some what may have drove that. I I assume. Um, some of that may be the the queen laser business but can you elaborate on what you're seeing there?
Yes, certainly Jim. So, a couple things, first of all, we're we're very excited with, uh, with, with clean laser, that's going very, very well that acquisition that we did at the end of last year, Integrations going very well and, uh, and, and they've been, uh, continuing with their Traction in the market. But we're also seeing, you know, we've also had in some increases in other areas of our systems, you know, we're making micro Machining systems and and systems in, uh, in welding and such as well. I don't know, Tim, if you have anything you'd add
I think you covered. I think, just on the robotic side, we had a better quarter on the large scale. Gantry robotic systems, as as well. And a, and a pretty good quarter on light. Well, too,
And on the medical business. Um sounds like you're uh encouraged by the uh the ramp. You're seeing with the with the second customer. Uh, in the Urology area, I wonder if you would um, help us understand whether there's been uh, any change in the overall competitive environment in this area, the business
So uh so let me speak to that uh, Jim. So let me just step back for a moment and just say that, you know, that Urology is 1 of the key areas that we're investing in. So it's the, it's the medical side, the micro Machining the, the advanced, and in that Urology, uh, roadmap. We have a broad-based of, uh, capability in that area. And we've, we're bringing out new systems. So we talked about the fact that we're bringing something out in Q4, and then a whole roadmap of growth, we have the strongest position on the, on the thorium lasers and neurology, and we're continuing to grow, as we picked up this. Uh, this new customer that's in, that's, uh, bringing our share up and continuing to drive our share in that Marketplace.
Thank you.
Our next question is from Scott. Graham with Seaport research Partners, please proceed with your question.
Yeah, hi again. Sorry about that. Uh the gross margin, uh, the the minus 500 basis points. Tim, could you
Provide a little bit more color around that if you would.
Yeah sure. Um I think the positive takeaways from gross margin were that we had better uh manufacturing efficiency. So we had a benefit from lower under absorbed costs. We've made uh statements that that's a real focus of ours of trying to get that that improved it helped a little bit. The uh revenue is up a bit. Um, the second side of it is we've got inventory more under control over the last
12 months, the inventory Provisions that we incurred were a bit lower.
Um, offsetting those benefits, we did have really related to product mix both on a geographic and product basis. A little bit of an impact to gross margin due to lower product gross margins. But in that regard, we've actually got, you know, cost reduction initiatives across 4 or 5 different areas that we're starting to roll through the business model. So we expect, uh, that that product gross margin to improve. I mean, just a couple of examples of those. As, for example, the the rack integrated higher power lasers are starting to be introduced
More fully. We're looking at some of the micro Machining lasers with higher power output and better specification that the bill of material won't change on. You know, we're automating the production of some of our consumable fibers for medical um and there are other areas that we're working on to get the product cost down, so expect that to to bounce back. Um and then the tariffs if you really compare Q
Um Q2 to q1, uh, the Tariff impact was 115, basis points. You add that back to uh both the adjusted and unadjusted gross margin in your back, you know, close to 39% on an adjusted basis and 38 and a half percent um on a gap basis.
Thorough, uh, response to my question. Tim thank you really a lot for that. It would be nice. Also, if you guys got a little bit of help from your end markets and I think there are a couple of companies that have reported so far that have indicated that. Hey, look, once this tariff uncertainty. Once that cloud starts to lift a little bit, you know, there's going to be um an increase in you know Greek projects are going to be green light and things are just going to be a little bit better. Uh, I was wondering if you were kind of hearing that from your customers, a big part of your, uh, Revenue basis. You know, General industrial across the world and it's just kind of hoping if you heard anything from that from your customers. Um, if you could share that from your general industrial Market,
Hey Scott, this is Mark. So, you know, as I talked about, we've seen, you know, we've obviously seen some pickup. We see the, the, uh, book to Bill strong. We've seen, you know, the, the pmis, uh, improving, um, in, in the various regions, uh, the but we're still in some, you know, we still have some uncertainty, I say, again, it's what I, what I said, I think my customers are saying the, the same thing that they have a, a cautious optimism looking forward. There's still some uncertainty with the tariffs, uh, and there's some uncertainty, uh, in the market. But, you know, I'm, I'm hearing, let's say cautious optimism.
Very good. Thank you.
as a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad 1 moment, please while we pull up for questions,
Our next question comes from Mark Miller with the Benchmark Company. Please proceed with your question.
I'm just wondering if we can comment about.
Market outside of China in particular, United States.
Yes. Hi. Hi there mark, yes. So we've seen, we've seen uh, you know, good good growth in uh, in welding, you know, globally. So I can say that the strongest growth that we saw was specifically in uh, Nev. And the biggest piece of growth there was uh, was in China, but we do have we have had broad-based growth and we've seen growth also quarter on quarter with light Weld and and Welding. So we are, you know, seeing some uh, some increase
I'm just wondering too if it's in comment about the margin profile. Your backlog is that similar to what your uh, expecting in the third quarter.
Yeah, I mean the mix on that. It's not fundamentally different. Um, going into the quarter mark.
Thank you.
We have reached the end of the question and answer session. I'd now like to turn the call back over to Eugene fto for closing comments.
Thank you everyone for joining us this morning and you're continuing the interest in ipg. We will be participating in several industrial events. This quarter and are looking forward to speaking with you again, soon. Have a great day. Thank you.
Include today is conference. You may disconnect your lines at this time and we thank you for your participation.