nLight Highlights Aerospace and Defense Growth in Q4 Earnings Call

Company details strategic shift away from legacy industrial markets, investments in directed energy and sensing capabilities

Feb. 27, 2026 at 4:14am

Got story updates? Submit your updates here. ›

nLight (NASDAQ:LASR) executives highlighted strong aerospace and defense-driven growth in 2025, alongside higher profitability and a strengthened balance sheet, during the company's fourth-quarter and year-end earnings call. Management also detailed a strategic shift away from legacy industrial markets and outlined investments aimed at expanding capacity for directed energy and sensing opportunities.

Why it matters

nLight's pivot toward aerospace and defense, particularly in the areas of directed energy and laser sensing, reflects broader industry trends as the company seeks to capitalize on growing government and military demand for advanced laser technologies. The company's decision to exit legacy industrial markets like cutting and welding also signals a strategic refocus on higher-margin, defense-oriented applications.

The details

In 2025, nLight reported record aerospace and defense (A&D) revenue of $175 million, up 60% year-over-year, as the company executed on existing programs, ramped production of new fiber amplifiers, and secured new contract awards. This growth, combined with favorable business mix and manufacturing execution, helped lift full-year gross margin to 30% and generate $23.5 million in adjusted EBITDA. Key A&D milestones included progress on the HELSI-2 high-energy laser program, delivery of a 50 kW laser weapon module for the Army's DE M-SHORAD program, and new international customer shipments.

  • In the fourth quarter of 2025, nLight reported record revenue of $81.2 million, up 71% year-over-year and 22% sequentially.
  • In the third quarter of 2025, nLight signed a $50 million contract for an existing long-running missile program incorporating one of the company's sensing products.
  • In the fourth quarter of 2025, nLight began the initial stages of low-rate initial production on a new classified sensing program.

The players

Scott Keeney

Chairman and CEO of nLight.

Joe Corso

Chief Financial Officer of nLight.

nLight

An American company that designs, develops, manufactures, and sells semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications.

Got photos? Submit your photos here. ›

What they’re saying

“2025 was an exceptional year, citing accelerated growth and improved margins tied largely to aerospace and defense (A&D).”

— Scott Keeney, Chairman and CEO

“The revenue growth, favorable business mix, and manufacturing execution helped lift full-year gross margin to approximately 30% versus 17% in 2024.”

— Joe Corso, Chief Financial Officer

What’s next

The company expects new contracts to be awarded in coming quarters from different agencies related to the U.S. president's 'Golden Dome' executive order, which could drive future directed energy and sensing activity.

The takeaway

nLight's strategic pivot toward aerospace and defense, particularly in high-growth areas like directed energy and laser sensing, positions the company to capitalize on increasing government and military demand for advanced laser technologies. The company's decision to exit legacy industrial markets also reflects a focus on higher-margin, defense-oriented applications that can drive continued profitability and growth.