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12 Aug 2025
High-power laser manufacturer beats sales expectations after record quarter for its aerospace and defense division.
nLight, the high-power laser company based in Washington state, has easily beaten its sales target in the second quarter of the year, thanks to a surge in demand for defense-related applications.
At $61.7 million, revenues in the three months that ended June 30 were up 22 per cent on the same period last year, and are projected to rise again in the September quarter.
Long-time CEO Scott Keeney said in a release announcing the figures: “Increased demand for our portfolio of directed energy products and laser sensing solutions is providing us with better visibility into the second half of the year.
“We are increasing our aerospace and defense outlook for 2025 to growth of at least 40 per cent year-over-year, up from our prior outlook calling for growth of at least 25 per cent.”
The rising demand for laser weapons and other photonics-based military equipment saw nLight’s aerospace and defense division register record sales of close to $41 million in the June quarter - a year-on-year increase of nearly 50 per cent.
The remaining $20 million in sales was split evenly between microfabrication and industrial applications, with both of those divisions also reporting a solid rise on the prior year.
Laser weapons programs
That uptick in expectations also prompted around a 30 per cent rise in the company’s stock price, which has now trebled in value in just three months.
“In directed energy, we continue to make solid progress in our HELSI-2 program,” Keeney told an investor conference call discussing the latest results, reminding them that the aim is to develop a megawatt-class laser weapon for the US Department of Defense by 2026.
“The shipment of critical components toward the HELSI-2 program was a significant driver of our record defense product revenue in the quarter, and is expected to be a substantial contributor to growth throughout the remainder of the year.”
Other projects nearing completion include a 50 kW laser for the US Army's “DE M-SHORAD” short-range air defense program, ahead of integration on “Stryker” combat vehicles.
“Once this integration is complete, the system will begin field testing,” Kenney said, adding that nLight was also responding to a request for proposals relating to the “Golden Dome” US air defense system - a hugely ambitious attempt to replicate Israel’s “Iron Dome” and "Iron Beam" projects on a much larger scale.
Sensing opportunities
With a mandate to build these systems in the US, Keeney says that nLight is well positioned to benefit from an effort that is expected to continue for many years, with further details of specific laser applications expected in the coming months.
“We've also continued to have success in the international markets for directed energy,” the CEO added. “In the second quarter, we began shipping to a new international customer, and we have a growing pipeline of new global opportunities as allied nations look to accelerate directed energy programs for cost-effective counter-[drone] and other threats.”
Keeney also highlighted strong demand for nLight’s laser sensing products, which are used in missile guidance, proximity detection, rangefinding and countermeasure applications - all set to remain key priorities under the current US administration.
On the industrial side of the business, the CEO said that although sales had risen recently, a sustained improvement was not expected - and that nLight was redeploying some of its engineers into defense-related projects as a result.
• For the September quarter, nLight’s executive team is expecting to report sales of between $62 million in $67 million - an outlook that prompted a 30 per cent surge in the company’s Nasdaq-listed stock price.
Trading at around $27.50 on August 12, the stock has rebounded strongly since hitting a low of $6.31 in the aftermath of the “liberation day” tariff announcements in April, and is back to valuations last seen four years ago.
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