Coherent Corp. Reports 23% Revenue Growth to $5.81 Billion for Fiscal Year Ending June 30, 2025

Coherent Corp. reported a significant increase in financial performance for the fiscal year ending June 30, 2025, with total revenues reaching $5.81 billion, a 23% increase from $4.71 billion in the previous year. The growth was primarily driven by a 51% surge in the communications market, attributed to heightened demand for datacom products, particularly in AI datacenter applications. The company's gross margin improved to 35%, up from 31% in the prior year, reflecting better pricing optimization and cost reductions, despite challenges in certain segments.

In terms of profitability, Coherent Corp. recorded a net income of $30 million, a notable recovery from a net loss of $159 million in fiscal 2024. The company also reported a diluted loss per share of $0.52, an improvement from a loss of $1.84 per share in the previous year. Operating expenses increased, with research and development costs rising to $582 million, reflecting ongoing investments in product development, particularly in high-demand areas like datacom transceivers.

Strategically, Coherent has been active in restructuring its operations, with the Board approving a 2023 Restructuring Plan aimed at consolidating sites and reducing costs. This plan incurred charges of $160 million in fiscal 2025, primarily related to asset write-offs and employee termination costs. Additionally, the company initiated a 2025 Restructuring Plan, which is expected to incur further charges as it aims to streamline operations and enhance efficiency. The company anticipates completing these restructuring actions by the end of fiscal 2026.

Operationally, Coherent's workforce has seen changes, with a total employee count of approximately 3,100 as of June 30, 2025. The company continues to focus on expanding its market presence, particularly in the communications and industrial sectors, where it has seen growth in laser products and services. The company also reported significant customer concentration, with two customers accounting for over 10% of total revenues in fiscal 2025, highlighting the importance of maintaining strong relationships with key clients.

Looking ahead, Coherent Corp. remains cautiously optimistic about its future performance, despite potential challenges from macroeconomic conditions and geopolitical tensions. The company is focused on leveraging its diverse manufacturing footprint to mitigate risks associated with tariffs and supply chain disruptions. Management believes that existing cash reserves, along with cash flow from operations and available borrowing capacity, will be sufficient to support its operational and growth objectives through fiscal 2026.