Form 8-K - Current report

Coherent Corp.

Date: August 15, 2024

/s/ Richard Martucci

Richard Martucci

Interim Chief Financial Officer and Treasurer

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 15, 2024

Coherent Corp.

(Exact name of registrant as specified in its charter)

Pennsylvania

001-39375

25-1214948

(State or Other Jurisdiction
of Incorporation)

(Commission

File Number)

(I.R.S. Employer
Identification No.)

375 Saxonburg Boulevard

Saxonburg, Pennsylvania 16056

(Address of Principal Executive Offices) (Zip Code)

(724) 352-4455

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol(s)

Name of each exchange

on which registered

Common Stock, no par value

COHR

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.

Results of Operations and Financial Condition.

On August 15, 2024 Coherent Corp. (the “Company”) issued a press release (“Press Release”), a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished pursuant to Item 9.01, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Furthermore, the information in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 furnished pursuant to Item 9.01, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

Item 7.01.

Regulation FD Disclosure.

A slide presentation to be used by senior management of the Company in connection its discussions with investors and others regarding the financial results is furnished as Exhibit 99.3.

The information in this Item 7.01 of this Current Report on Form 8-K, including the exhibits furnished pursuant to Item 9.01, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities under that Section. Furthermore, the information in this Item 7.01 of this Current Report on Form 8-K, including the Exhibit 99.2 furnished pursuant to Item 9.01, shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.		Description

99.1		Press Release dated August 15, 2024

99.2		Investor Presentation

104.0		Cover Page Interactive Data File (embedded within the inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 99.1

LOGO

Coherent Corp.

375 Saxonburg Blvd.

Saxonburg, PA 16056-9499

PRESS RELEASE

COHERENT CORP. REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2024 RESULTS

●

Q4 REVENUE OF $1.314B, GREW 9.1% Y/Y

●

Q4 GAAP GROSS MARGIN OF 32.9%, GREW 437 bps Y/Y; Q4 NON-GAAP GROSS MARGIN OF 37.2%, GREW 132 bps Y/Y

●

Q4 GAAP EPS OF ($0.52), IMPROVEMENT OF $1.02 Y/Y; Q4 NON-GAAP EPS OF $0.61, IMPROVEMENT OF $0.20 OR +49% Y/Y

PITTSBURGH, Aug. 15, 2024 – Coherent Corp. (NYSE: COHR) (“Coherent,” “We,” or the “Company”), a global leader in materials, networking, and lasers, announced financial results today for its fiscal fourth quarter and full year ended June 30, 2024.

Revenue for the fourth quarter of fiscal 2024 was $1.314 billion, with GAAP gross margin of 32.9% and GAAP net loss of $(0.52) per diluted share. On a non-GAAP basis, gross margin was 37.2% with net income per diluted share of $0.61.

Revenue for fiscal year 2024 was $4.708 billion, with GAAP gross margin of 30.9% and GAAP net loss of $(1.84) per diluted share. On a non-GAAP basis, gross margin was 36.0% with net income per diluted share of $1.67.

Jim Anderson, CEO, said, “After meeting with many of our employees and customers, I am more excited today about Coherent’s potential than when I joined two months ago. Coherent is a deeply innovative company with many secular growth opportunities. While we have many strengths, we also have opportunity for improvement, and I look forward to working with all my Coherent teammates to unlock the full potential of the company and drive outstanding shareholder value creation.”

Rich Martucci, Interim CFO, said, “Fourth quarter fiscal 2024 revenue increased by 9% on a sequential basis primarily driven by ongoing AI-related strength in our Datacom transceiver business. Our strong sequential revenue growth together with a GAAP gross margin improvement of 255 basis points and non-GAAP gross margin improvement of 145 basis points drove a sequential increase in GAAP and non-GAAP operating margin.”

Selected Fourth Quarter and Full Year 2024 Financial Results and Comparisons (in millions, except per share data)

Table 1


	GAAP Financial Results (unaudited)

	Q4 FY24 Q3 FY24 Q4 FY23								Q/Q		Y/Y		2024 2023					FY/FY

Revenues	$	1,314		$	1,209		$	1,205		8.7%		9.1%	$	4,708		$	5,160		(8.8)%

Gross Margin %		32.9	%		30.3	%		28.5 %		255 bps		437 bps		30.9	%		31.4 %		(43) bps

IR&D Expense %		9.6	%		10.5	%		10.2 %		(91) bps		(59) bps		10.2	%		9.7 %		49 bps

SG&A Expense %		17.3	%		17.0	%		21.3 %		37 bps		(391) bps		18.1	%		20.1 %		(195) bps

Operating Expenses	$	369		$	344		$	499		7.1%		(26.0)%	$	1,360		$	1,655		(17.9)%

Operating Income (Loss)₍₁₎	$	63		$	22		$	(155)		183.4%		(140.7)%	$	96		$	(37)		(359.0)%

Operating Margin (Loss)		4.8	%		1.8	%		(12.9)%		296 bps		1,769 bps		2.0	%		(0.7)%		276 bps

Net Loss Attributable to Coherent Corp.	$	(48)		$	(13)		$	(178)		267.3%		(72.8)%	$	(156)		$	(259)		(39.8)%

Diluted Loss Per Share	$	(0.52)		$	(0.29)		$	(1.54)	$	(0.23)	$	1.02	$	(1.84)		$	(2.93)	$	1.09

⁽¹⁾	Operating income (Loss) is defined as earnings (loss) before income taxes, interest expense, and other expense or income, net.

Selected Fourth Quarter and Full Year 2024 Financial Results and Comparisons (in millions, except per share data)

Table 1, continued


	Non-GAAP Financial Results (unaudited)₍₁₎

	Q4 FY24 Q3 FY24 Q4 FY23								Q/Q		Y/Y		2024 2023					FY/FY

Revenues	$	1,314		$	1,209		$	1,205		8.7%		9.1%	$	4,708		$	5,160		(8.8) %

Gross Margin %		37.2	%		35.8	%		35.9 %		145 bps		132 bps		36.0	%		38.4 %		(242) bps

IR&D Expense %		9.0	%		9.8	%		9.5 %		(82) bps		(59) bps		9.4	%		9.2 %		20 bps

SG&A Expense %		11.3	%		10.9	%		11.0 %		35 bps		29 bps		11.6	%		10.5 %		104 bps

Operating Expenses	$	266		$	250		$	248		6.3%		7.5%	$	987		$	1,018		(3.0) %

Operating Income	$	223		$	182		$	185		22.5%		20.6%	$	710		$	967		(26.6) %

Operating Margin		17.0	%		15.1	%		15.4 %		191 bps		162 bps		15.1	%		18.7 %		(366) bps

Net Earnings Attributable to Coherent Corp.	$	127		$	113		$	95		11.8%		33.5%	$	381		$	567		(32.8) %

Diluted Earnings Per Share	$	0.61		$	0.53		$	0.41	$	0.08	$	0.20	$	1.67		$	3.00	$	(1.33)

⁽¹⁾ The Company has disclosed financial measurements in earnings release that present financial information considered to be non-GAAP financial measures. These measurements are not a substitute for GAAP measurements, although the Company’s management uses these measurements as an aid in monitoring the Company’s on-going financial performance. The non-GAAP net earnings attributable to Coherent Corp., the non-GAAP diluted earnings per share, the non-GAAP operating income, the non-GAAP gross margin, the non-GAAP internal research and development, the non-GAAP selling, general and administration, the non-GAAP operating expenses, the non-GAAP interest and other (income) expense, and the non-GAAP income tax (benefit), measure earnings and operating income (loss), respectively, excluding non-recurring or unusual items that are considered by management to be outside the Company’s standard operation and excluding certain non-cash items. EBITDA is an adjusted non-GAAP financial measurement that is considered by management to be useful in measuring the profitability between companies within the industry by reflecting operating results of the Company excluding non-operating factors. There are limitations associated with the use of non-GAAP financial measures, including that such measures may not be entirely comparable to similarly titled measures used by other companies, due to potential differences among calculation methodologies. Thus, there can be no assurance whether (i) items excluded from the non-GAAP financial measures will occur in the future or (ii) there will be cash costs associated with items excluded from the non-GAAP financial measures. The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by providing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures. Investors should consider adjusted measures in addition to, and not as a substitute for, or superior to, financial performance measures prepared in accordance with GAAP. All non-GAAP amounts exclude certain adjustments for share-based compensation, acquired intangible amortization expense, restructuring charges (recoveries), integration and site consolidation expenses, integration transaction expenses, start-up costs related to the start-up of new devices for new customer applications, and various one-time adjustments. See Table 8 for the Reconciliation of GAAP measures to non-GAAP measures.

Fourth Quarter Fiscal 2024 Highlights

●

Revenue Growth: In the fourth quarter, Coherent delivered 10% sequential revenue growth in its Communications market driven by strong sequential growth in 800G AI-related Datacom transceiver revenue.

●

Datacom Supply Chain Resiliency: During the quarter, Coherent achieved the milestone of having shipped over 300 million Datacom transceivers from its Ipoh, Malaysia, facility since its inception.

●

Display Capital Equipment: Coherent received its first volume order for its new Linebeam annealing systems for Gen 8 fabs driven by initial adoption of OLED for tablet and laptop computers.

Business Outlook – First Quarter Fiscal 2025

●

Revenue for the first quarter of fiscal 2025 is expected to be between $1.27 billion and $1.35 billion.

●

Gross margin percentage for the first quarter of fiscal 2025 is expected to be between 36% and 38% on a non-GAAP basis.

●

Total operating expenses for the first quarter of fiscal 2025 are expected to be between $260 million and $280 million on a non-GAAP basis.

●

Tax rate for the first quarter of fiscal 2025 is expected to be between 20% and 23% on a non-GAAP basis.

●

EPS for the first quarter of fiscal 2025 is expected to be between $0.53 and $0.69 on a non-GAAP basis.

Investor Conference Call / Webcast Details

Coherent will review the Company’s financial results for its fourth quarter and full year fiscal 2024 and business outlook on Thursday, August 15, at 5:00 p.m. ET. A live webcast of the conference call will be available on the Investor Relations section of the Company’s website at coherent.com/company/investor-relations. The Company’s financial guidance will be limited to the comments on its public quarterly earnings call and the public business outlook statements contained in this press release.

The conference call will be recorded, and a replay will be available to interested parties who are unable to attend the live webcast starting on or about August 16, 2024.

Additional Information and Where to Find It

In connection with the conference call described above, the Company intends to post an investor presentation on the Company’s website at coherent.com/company/investor-relations/investor-presentations after market close on August 15, 2024. We also from time to time may post important information for investors on our website at coherent.com/company/investor-relations. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should review the Investor Relations page of our website referenced above, in addition to following the Company’s press releases, SEC filings, and public conference calls, presentations, and webcasts. Investors and security holders are able to obtain free copies of these documents through the Company’s website referenced above. Copies of the documents filed by the Company with the SEC may be obtained free of charge on the Company’s website at coherent.com/company/investor-relations/sec-filings. The information contained on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not part of, this release.

Forward-Looking Statements

This press release contains forward-looking statements relating to future events and expectations, including our expectations regarding the Company’s potential and growth opportunities and our business outlook for first quarter fiscal 2025. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements contained herein involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures.

The Company believes that all forward-looking statements made by it herein have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements herein include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the risks relating to forward-looking statements and other “Risk Factors” identified from time to time in filings of the Company; (iii) the substantial indebtedness the

Company incurred in connection with its acquisition of Coherent, Inc. (the “Transaction”), the need to generate sufficient cash flows to service and repay such debt, and the Company’s ability to generate sufficient funds to meet its anticipated debt reduction goals; (iv) the possibility that the Company may not be able to continue its integration progress and/or take other restructuring actions, or otherwise be able to achieve expected synergies, operating efficiencies including greater scale, focus, resiliency, and lower operating costs, and other benefits within the expected time frames or at all and ultimately to successfully fully integrate the operations of Coherent with those of the Company; (v) the possibility that such integration and/or the restructuring actions may be more difficult, time-consuming, or costly than expected or that operating costs and business disruption (including, without limitation, disruptions in relationships with employees, customers, or suppliers) may be greater than expected in connection with the Transaction and/or the restructuring actions; (vi) any unexpected costs, charges, or expenses resulting from the Transaction and/or the restructuring actions; (vii) the risk that disruption from the Transaction and/or the restructuring actions materially and adversely affects the respective businesses and operations of the Company and Coherent, Inc.; (viii) potential adverse reactions or changes to business relationships resulting from the completion of the Transaction and/or the restructuring actions; (ix) the ability of the Company to retain and hire key employees; (x) the purchasing patterns of customers and end users; (xi) the timely release of new products and acceptance of such new products by the market; (xii) the introduction of new products by competitors and other competitive responses; (xiii) the Company’s ability to assimilate other recently acquired businesses, and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (xiv) the Company’s ability to devise and execute strategies to respond to market conditions; (xv) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xvi) the risks that the Company’s stock price will not trade in line with industrial technology leaders; and/or (xvii) the risks of business and economic disruption related to worldwide health epidemics or outbreaks that may arise. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Headquartered in Saxonburg, Pennsylvania, Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Contact:

Paul Silverstein

Senior VP, Investor Relations & Corporate Communications

investor.relations@coherent.com

# # #

FINANCIAL TABLES

Table 2

Other Financial Statistics


$ Millions, except per share and ratio amounts (unaudited)	Q4 FY24		Q3 FY24		Q4 FY23

Inventory		1,286		1,292		1,272

Cash		926		899		821

Restricted Cash - Total		864		894		16

Gross Debt		4,170		4,234		4,399

Net Debt		3,244		3,335		3,565

Calculated - Gross/Net leverage		4.2x / 3.2x		4.4x / 3.5x		3.6x / 2.9x

Credit Facility - Gross/Net Leverage		3.2x / 2.5x		3.3x / 2.6x		2.9x / 2.4x

Debt Payments		64		58		121

Operating Cash Flow		162		117		182

Capital Expenditures		100		93		93

Depreciation		72		67		70

Amortization		72		72		134

Fully Diluted Shares for Non-GAAP EPS		156		156		141


Table 3

Coherent Corp. and Subsidiaries

Condensed Consolidated Statements of Earnings (Loss)*
	THREE MONTHS ENDED
$ Millions, except per share amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023


Revenues	$	1,314.4		$	1,208.8		$	1,205.1

Costs, Expenses & Other Expense (Income)

Cost of goods sold		882.4			842.3			861.7

Internal research and development		126.7			127.5			123.3

Selling, general and administrative		228.0			205.2			256.1

Restructuring charges		14.1			11.5			119.1

Interest expense		67.8			72.8			78.9

Other expense (income), net		(14.5	)		(18.6	)		(0.7	)


Total Costs, Expenses, & Other Expense		1,304.5			1,240.7			1,438.5


Earnings (Loss) Before Income Taxes		9.9			(31.9	)		(233.4	)

Income Taxes		56.9			(16.1	)		(55.2	)


Net Loss		(47.0	)		(15.7	)		(178.2	)

Net Earnings (Loss) Attributable to Noncontrolling Interests		1.4			(2.5	)		—


Net Loss Attributable to Coherent Corp.	$	(48.4	)	$	(13.2	)	$	(178.2	)


Less: Dividends on Preferred Stock		31.4			31.2			36.7


Net Loss Available to the Common Shareholders	$	(79.9	)	$	(44.4	)	$	(214.9	)


Basic Loss Per Share	$	(0.52	)	$	(0.29	)	$	(1.54	)


Diluted Loss Per Share	$	(0.52	)	$	(0.29	)	$	(1.54	)


Average Shares Outstanding - Basic		152.6			152.1			139.3

Average Shares Outstanding - Diluted		152.6			152.1			139.3

*Amounts may not recalculate due to rounding.


Table 3

Coherent Corp. and Subsidiaries

Condensed Consolidated Statements of Earnings (Loss)*

(Continued)	YEAR ENDED
$ Millions, except per share amounts (unaudited)	June 30, 2024			June 30, 2023


Revenues	$	4,707.7		$	5,160.1

Costs, Expenses & Other Expense (Income)

Cost of goods sold		3,251.7			3,541.8

Internal research and development		478.8			499.6

Selling, general and administrative		854.0			1,036.7

Restructuring charges		27.1			119.1

Interest expense		288.5			286.9

Other expense (income), net		(44.7	)		31.6


Total Costs, Expenses, & Other Expense		4,855.3			5,515.7


Loss Before Income Taxes		(147.6	)		(355.6	)

Income Taxes		11.1			(96.1	)


Net Loss		(158.8	)		(259.5	)

Net Loss Attributable to Noncontrolling Interests		(2.6	)		—


Net Loss Attributable to Coherent Corp.	$	(156.2	)	$	(259.5	)


Less: Dividends on Preferred Stock		123.4			144.2


Net Loss Available to the Common Shareholders	$	(279.5	)	$	(403.7	)


Basic Loss Per Share	$	(1.84	)	$	(2.93	)


Diluted Loss Per Share	$	(1.84	)	$	(2.93	)


Average Shares Outstanding - Basic		151.6			137.6

Average Shares Outstanding - Diluted		151.6			137.6

*Amounts may not recalculate due to rounding.



Table 4

Coherent Corp. and Subsidiaries

Condensed Consolidated Balance Sheets*


$ Millions (unaudited)	June 30, 2024		June 30, 2023



Assets

Current Assets
Cash and cash equivalents	$	926.0	$	821.3
Restricted cash, current		174.0		12.0
Accounts receivable		848.5		901.5
Inventories		1,286.4		1,272.3
Prepaid and refundable income taxes		26.9		28.3
Prepaid and other current assets		398.2		216.5

Total Current Assets		3,660.1		3,252.0
Property, plant & equipment, net		1,817.3		1,782.0
Goodwill		4,464.3		4,512.7
Other intangible assets, net		3,503.2		3,814.7
Deferred income taxes		41.0		37.7
Restricted cash, non-current		689.6		4.2
Other assets		313.1		307.7

Total Assets	$	14,488.6	$	13,711.1


Liabilities, Mezzanine Equity and Equity

Current Liabilities
Current portion of long-term debt	$	73.8	$	74.8
Accounts payable		631.5		405.3
Operating lease current liabilities		40.6		38.3
Accruals and other current liabilities		597.9		560.3

Total Current Liabilities		1,343.8		1,078.7
Long-term debt		4,026.4		4,235.0
Deferred income taxes		784.4		780.3
Operating lease liabilities		162.4		140.7
Other liabilities		225.4		247.4

Total Liabilities		6,542.4		6,482.2
Total Mezzanine Equity		2,364.8		2,241.4

Total Coherent Corp. Shareholders’ Equity		5,210.1		4,987.6
Noncontrolling interests		371.4		—

Total Equity		5,581.5		4,987.6

Total Liabilities, Mezzanine Equity and Equity	$	14,488.6	$	13,711.1

*Amounts may not recalculate due to rounding.



Table 5

Coherent Corp. and Subsidiaries

Condensed Consolidated Statements of Cash Flows*	YEAR ENDED


$ Millions (unaudited)	June 30, 2024		June 30, 2023



Cash Flows from Operating Activities
Net cash provided by operating activities	$	545.7	$	634.0


Cash Flows from Investing Activities
Additions to property, plant & equipment		(346.8)		(436.1)
Purchases of businesses, net of cash acquired		—		(5,488.6)
Other investing activities		(3.9)		(4.0)

Net cash used in investing activities		(350.7)		(5,928.6)


Cash Flows from Financing Activities
Contributions from noncontrolling interest holders		1,000.0		—
Proceeds from borrowings of Term A Facility		—		850.0
Proceeds from borrowings of Term B Facility		—		2,800.0
Proceeds from borrowings of revolving credit facilities		19.0		65.0
Proceeds from issuance of Series B preferred shares		—		1,400.0
Payments on existing debt		(228.8)		(1,265.2)
Payments on borrowings under revolving credit facilities		(19.0)		(65.0)
Debt issuance costs		—		(126.5)
Equity issuance costs		(31.8)		(42.0)
Proceeds from exercises of stock options and purchases under employee stock purchase plan		42.3		24.2
Payment on convertible notes		—		(3.6)
Payments in satisfaction of employees’ minimum tax obligations		(22.3)		(54.2)
Payment of dividends		—		(27.6)
Other financing activities		(1.1)		(1.1)

Net cash provided by financing activities		758.3		3,554.0


Effect of exchange rate changes on cash and cash equivalents		(1.2)		(4.2)

Net increase (decrease) in cash and cash equivalents		952.1		(1,744.8)

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		837.6		2,582.4


Cash, Cash Equivalents, and Restricted Cash at End of Period	$	1,789.7	$	837.6

*Amounts may not recalculate due to rounding.

Table 6


Segment Revenues, GAAP Operating Income (Loss) & Margins and Non-GAAP Operating Income (Loss) & Margins*
	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except percentage amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023


Revenues:
Networking	$	679.8		$	618.8		$	584.6		$	2,295.7		$	2,340.9
Materials		279.3			239.0			288.0			1,016.6			1,349.8
Lasers		355.3			351.0			332.5			1,395.4			1,469.4

Consolidated	$	1,314.4		$	1,208.8		$	1,205.1		$	4,707.7		$	5,160.1


GAAP Operating Income (Loss):
Networking	$	56.8		$	58.2		$	(8.1)		$	178.8		$	222.4
Materials		37.7			8.2			(65.0)			62.9			159.6
Lasers		(31.3)			(44.1)			(82.1)			(145.6)			(419.1)

Consolidated	$	63.2		$	22.3		$	(155.2)		$	96.1		$	(37.1)


Non-GAAP Operating Income:
Networking	$	93.3		$	90.4		$	78.9		$	308.3		$	389.1
Materials		79.2			50.3			70.2			213.9			356.4
Lasers		50.7			41.5			36.0			187.3			221.0

Consolidated	$	223.2		$	182.2		$	185.1		$	709.5		$	966.5


GAAP Operating Margin (Loss):
Networking		8.4	%		9.4	%		(1.4)	%		7.8	%		9.5	%
Materials		13.5	%		3.4	%		(22.6)	%		6.2	%		11.8	%
Lasers		(8.8)	%		(12.6)	%		(24.7)	%		(10.4)	%		(28.5)	%
Consolidated		4.8	%		1.8	%		(12.9)	%		2.0	%		(0.7)	%

Non-GAAP Operating Margin:
Networking		13.7	%		14.6	%		13.5	%		13.4	%		16.6	%
Materials		28.4	%		21.0	%		24.4	%		21.0	%		26.4	%
Lasers		14.3	%		11.8	%		10.8	%		13.4	%		15.0	%
Consolidated		17.0	%		15.1	%		15.4	%		15.1	%		18.7	%

*Amounts may not recalculate due to rounding.

Table 7


Reconciliation of GAAP Segment Operating Income (Loss) to Segment Non-GAAP Operating Income (Loss)*
	THREE MONTHS ENDED									YEAR ENDED

$ Millions (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023


Networking GAAP Operating Income (Loss)	$	56.8		$	58.2		$	(8.1	)	$	178.8		$	222.4
Share-based compensation		7.4			6.7			7.6			30.9			33.6
Amortization of acquired intangibles		16.0			16.0			22.9			64.3			72.3
Restructuring charges (recoveries)₍₁₎		1.0			(0.2	)		55.6			(4.4	)		55.6
Integration, site consolidation and other₍₂₎		12.1			9.7			0.9			38.7			5.2

Non-GAAP Networking Operating Income	$	93.3		$	90.4		$	78.9		$	308.3		$	389.1


Materials GAAP Operating Income (Loss)	$	37.7		$	8.2		$	(65.0	)	$	62.9		$	159.6
Share-based compensation		10.6			9.0			10.4			45.2			51.1
Amortization of acquired intangibles		2.3			2.6			35.1			9.9			44.8
Restructuring charges₍₁₎		13.0			8.1			60.4			27.7			60.4
Integration, site consolidation and other₍₂₎		15.6			21.9			29.4			66.7			40.5
Start-up costs₍₄₎		—			0.5			—			1.5			—

Non-GAAP Materials Operating Income	$	79.2		$	50.3		$	70.2		$	213.9		$	356.4


Lasers GAAP Operating Loss	$	(31.3	)	$	(44.1	)	$	(82.1	)	$	(145.6	)	$	(419.1	)
Share-based compensation		10.7			10.7			8.4			50.8			64.9
Amortization of acquired intangibles		53.4			53.7			75.6			214.0			297.1
Restructuring charges₍₁₎		0.1			3.6			3.1			3.8			3.1
Integration, site consolidation and other₍₂₎		17.8			17.6			31.0			64.3			78.8
Transaction fees and financing₍₃₎		—			—			—			—			38.7
Fair value adjustment on acquired inventory		—			—			—			—			157.5

Non-GAAP Lasers Operating Income	$	50.7		$	41.5		$	36.0		$	187.3		$	221.0




Total GAAP Operating Income (Loss)	$	63.2		$	22.3		$	(155.2	)	$	96.1		$	(37.1	)



Non-GAAP Operating Income	$	223.2		$	182.2		$	185.1		$	709.5		$	966.5

*Amounts may not recalculate due to rounding.

⁽¹⁾	Restructuring charges (recoveries) include severance, non-cash impairment charges for production assets and improvements on leased facilities and other costs related to the 2023 Restructuring Plan.

⁽²⁾

Integration, site consolidation and other includes retention and severance payments, expenses not included in restructuring charges related to site closures as well as other integration costs related to the Coherent transaction and other one-time costs. Refer to table 8A for a more detailed description of these costs on a consolidated basis.

⁽³⁾	Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction.

⁽⁴⁾	Start-up costs in operating expenses were related to the start-up of new devices for new customer applications.


Table 8

Reconciliation of GAAP Measures to Non- GAAP Measures*	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except per share amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023



Gross profit on GAAP basis	$	432.0		$	366.5		$	343.4		$	1,456.0		$	1,618.3
Share-based compensation		5.0			5.2			4.9			22.9			22.9
Amortization of acquired intangibles		30.4			30.6			38.7			122.0			132.1
Fair value adjustment on acquired inventory		—			—			—			—			157.5
Integration, site consolidation and other₍₂₎		22.0			30.3			45.8			95.2			53.2

Gross profit on non-GAAP basis	$	489.4		$	432.6		$	432.8		$	1,696.1		$	1,984.0


Internal research and development on GAAP basis	$	126.7		$	127.5		$	123.3		$	478.8		$	499.6
Share-based compensation		(5.2	)		(4.9	)		(5.0	)		(23.1	)		(22.3	)
Amortization of acquired intangibles		(0.6	)		(0.7	)		(0.6	)		(2.6	)		(1.0	)
Integration, site consolidation and other₍₂₎		(3.2	)		(3.3	)		(2.7	)		(10.4	)		(2.9	)
Start-up costs₍₄₎		—			(0.5	)		—			(1.5	)		—

Internal research and development on non-GAAP basis	$	117.7		$	118.1		$	115.0		$	441.2		$	473.4


Selling, general and administrative on GAAP basis	$	228.0		$	205.2		$	256.1		$	854.0		$	1,036.7
Share-based compensation		(18.5	)		(16.3	)		(16.5	)		(80.9	)		(104.4	)
Amortization of acquired intangibles		(40.7	)		(41.0	)		(94.2	)					(281.0	)
Integration, site consolidation and other₍₂₎		(20.3	)		(15.6	)		(12.8	)		(64.1	)		(68.4	)
Transaction fees and financing₍₃₎		—			—			—			—			(38.7	)

Selling, general and administrative on non-GAAP basis	$	148.5		$	132.3		$	132.6		$	545.4		$	544.2


Restructuring charges on GAAP basis	$	14.1		$	11.5		$	119.1		$	27.1		$	119.1
Restructuring charges₍₁₎		(14.1	)		(11.5	)		(119.1	)		(27.1	)		(119.1	)

Restructuring charges on non-GAAP basis	$	—		$	—		$	—		$	—		$	—


Operating income (loss) on GAAP basis	$	63.2		$	22.3		$	(155.2	)	$	96.1		$	(37.1	)
Share-based compensation		28.7			26.4			26.4			126.9			149.6
Fair value adjustment on acquired inventory		—			—			—			—			157.5
Amortization of acquired intangibles		71.7			72.3			133.5			288.2			414.1
Restructuring charges₍₁₎		14.1			11.5			119.1			27.1			119.1
Integration, site consolidation and other₍₂₎		45.5			49.2			61.3			169.7			124.5
Transaction fees and financing₍₃₎		—			—			—			—			38.7
Start-up costs₍₄₎		—			0.5			—			1.5			—

Operating income on non-GAAP basis	$	223.2		$	182.2		$	185.1		$	709.5		$	966.5

Table 8


Reconciliation of GAAP Measures to Non- GAAP Measures* (Continued)
	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except per share amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023


Interest and other (income) expense, net on GAAP basis	$	53.3		$	54.2		$	78.2		$	243.8		$	318.4
Foreign currency exchange gains (losses), net		(0.9	)		(3.1	)		(5.6	)		(9.5	)		(10.7	)
Transaction fees and financing₍₃₎		(2.0	)		—			—			(2.0	)		(34.8	)

Interest and other (income) expense, net on non-GAAP basis	$	50.4		$	51.1		$	72.6		$	232.3		$	272.9


Income taxes on GAAP basis	$	56.9		$	(16.1	)	$	(55.2	)	$	11.1		$	(96.1	)
Tax impact of non-GAAP measures		33.8			36.6			72.8			133.4			222.1
Tax impact of valuation allowance for deferred tax assets₍₅₎		(46.0	)		—			—			(46.0	)		—

Income taxes on non-GAAP basis	$	44.7		$	20.5		$	17.6		$	98.5		$	126.0


Net earnings (loss) attributable to Coherent Corp. on GAAP basis	$	(48.4	)	$	(13.2	)	$	(178.2	)	$	(156.2	)	$	(259.5	)
Share-based compensation		28.7			26.4			26.4			126.9			149.6
Amortization of acquired intangibles		71.7			72.3			133.5			288.2			414.1
Fair value adjustment on acquired inventory		—			—			—			—			157.5
Foreign currency exchange (gains) losses		0.9			3.1			5.6			9.5			10.7
Restructuring charges₍₁₎		14.2			11.5			119.1			27.1			119.1
Integration, site consolidation and other₍₂₎		45.5			49.2			61.3			169.7			124.5
Transaction fees and financing₍₃₎		2.0			—			—			2.0			73.5
Start-up costs₍₄₎		—			0.5			—			1.5			—
Tax impact of valuation allowance for deferred tax assets₍₅₎		46.0			—			—			46.0			—
Tax impact of non-GAAP measures		(33.8	)		(36.6	)		(72.8	)		(133.4	)		(222.1	)

Net earnings attributable to Coherent Corp. on non-GAAP basis	$	126.6		$	113.2		$	94.9		$	381.2		$	567.4


Per share data:
Net loss on GAAP basis
Basic Loss Per Share	$	(0.52	)	$	(0.29	)	$	(1.54	)	$	(1.84	)	$	(2.93	)
Diluted Loss Per Share	$	(0.52	)	$	(0.29	)	$	(1.54	)	$	(1.84	)	$	(2.93	)

Net earnings on non-GAAP basis
Basic Earnings Per Share	$	0.62		$	0.54		$	0.42		$	1.70		$	3.08
Diluted Earnings Per Share	$	0.61		$	0.53		$	0.41		$	1.67		$	3.00

*Amounts may not recalculate due to rounding.

⁽¹⁾	Restructuring charges include severance, non-cash impairment charges for production assets and improvements on leased facilities and other costs related to the 2023 Restructuring Plan.

⁽²⁾

Integration, site consolidation and other costs include retention and severance payments, expenses not included in restructuring charges related to site closures as well as other integration costs related to the acquisition of Coherent, Inc. Refer to table 8A for a more detailed description of these costs on a consolidated basis.

⁽³⁾	Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction.

⁽⁴⁾	Start-up costs in operating expenses were related to the start-up of new devices for new customer applications.

⁽⁵⁾	Valuation allowance adjustment was related to an increase in valuation allowance related to certain deferred tax assets resulting from the Company’s cumulative GAAP net loss that is not recognized for non-GAAP purposes given the historical non-GAAP net earnings.

Table 8A

Components of Integration, Site

Consolidation and Other Costs Excluded

from Non-GAAP Operating Income*


	THREE MONTHS ENDED						YEAR ENDED

$ Millions (unaudited)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023


Integration, site consolidations and other costs

Consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure	$	6.5	$	11.1	$	12.8	$	40.8	$	46.1

Manufacturing inefficiencies related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan		10.3		12.2		17.0		43.6		17.0

Charges for products that are end-of-life, including inventory, production equipment to produce those products		4.9		11.4		21.7		23.8		21.7

Overlapping labor and travel for consolidation of sites		6.4		6.8		—		20.4		—

Employee severance and retention costs for site consolidations as part of our Synergy and Site Consolidation Plan or other actions		4.2		2.4		9.2		14.1		14.7

Severance costs related to the retirement of our CEO/CFO		13.2		3.8		—		18.7		—

Accelerated depreciation for equipment and leasehold improvements at sites included in our Synergy and Site Consolidation Plan		—		1.5		—		5.3		0.6

Direct damages from substation power failure/fire at manufacturing sites		—		—		0.6		3.0		2.7

Change in control and retention payments from acquisition of Coherent, Inc.		—		—		—		—		21.3

Write-off of lease step-up from Coherent, Inc. acquisition		—		—		—		—		0.4

Integration, site consolidations and other costs	$	45.5	$	49.2	$	61.3	$	169.7	$	124.5


Table 9

Reconciliation of GAAP Net Earnings (Loss), EBITDA and Adjusted EBITDA *
	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except percentage amounts (unaudited)		June 30,			March 31,			June 30,			June 30,			June 30,
$ Millions, except percentage amounts (unaudited)	2024			2024			2023			2024			2023


Net earnings (loss) on GAAP basis	$	(47.0)		$	(15.7)		$	(178.2)		$	(158.8)		$	(259.5)
Income taxes		56.9			(16.1)			(55.2)			11.1			(96.1)
Depreciation and amortization		143.7			139.7			203.6			559.8			681.7
Interest expense		67.8			72.8			78.9			288.5			286.9
Interest income		(13.1)			(12.5)			(4.1)			(36.1)			(9.2)

EBITDA₍₁₎	$	208.3		$	168.2		$	45.0		$	664.5		$	603.8

EBITDA margin		15.8	%		13.9	%		3.7	%		14.1	%		11.7	%

Fair value adjustment on acquired inventory		—			—			—			—			157.5
Share-based compensation		28.7			26.4			26.4			126.9			149.6

Foreign currency exchange losses		0.9			3.1			5.6			9.5			10.7
Start-up costs₍₆₎		—			0.5			—			1.5			—
Restructuring charges₍₃₎		14.2			11.5			119.1			27.1			119.1

Transaction fees and financing₍₅₎		2.0			—			—			2.0			73.5
Integration, site consolidation and other₍₄₎		45.5			49.2			61.3			169.7			124.5

Adjusted EBITDA₍₂₎		299.5			258.9			257.4			1,001.2		$	1,238.7
Less: adjusted EBITDA attributable to noncontrolling interests		(1.9)			2.3			—			0.6			—

Adjusted EBITDA attributable to Coherent Corp.	$	297.6		$	261.2		$	257.4		$	1,001.8		$	1,238.7

Adjusted EBITDA margin attributable to Coherent Corp.		22.6	%		21.6	%		21.4	%		21.3	%		24.0	%

*Amounts may not recalculate due to rounding.

⁽¹⁾	EBITDA is defined as earnings before interest expense, interest income, income taxes, depreciation and amortization.

⁽²⁾	Adjusted EBITDA excludes non-GAAP adjustments for share-based compensation, certain restructuring, integration, and transaction expenses, debt extinguishment charges, start-up costs, and the impact of foreign currency exchange gains and losses.

⁽³⁾	Restructuring charges include severance, non-cash impairment charges for production assets and improvements on leased facilities and other costs related to the 2023 Restructuring Plan.

⁽⁴⁾

⁽⁵⁾	Transaction fees and financing includes debt extinguishment costs and various fees related to closing the Coherent transaction.

⁽⁶⁾	Start-up costs in operating expenses were related to the start-up of new devices for new customer applications.


Table 10

GAAP Earnings (Loss) Per Share Calculation*	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except per share amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023



Numerator

Net loss attributable to Coherent Corp.	$	(48.4	)	$	(13.2	)	$	(178.2	)	$	(156.2	)	$	(259.5	)

Deduct Series A preferred stock dividends		—			—			(6.9	)		—			(27.6	)

Deduct Series B redeemable preferred dividends		(31.4	)		(31.2	)		(29.8	)		(123.4	)		(116.6	)


Basic loss available to common shareholders	$	(79.9	)	$	(44.4	)	$	(214.9	)	$	(279.5	)	$	(403.7	)


Diluted loss available to common shareholders	$	(79.9	)	$	(44.4	)	$	(214.9	)	$	(279.5	)	$	(403.7	)


Denominator

Diluted weighted average common shares		152.6			152.1			139.3			151.6			137.6


Basic loss per common share	$	(0.52	)	$	(0.29	)	$	(1.54	)	$	(1.84	)	$	(2.93	)


Diluted loss per common share	$	(0.52	)	$	(0.29	)	$	(1.54	)	$	(1.84	)	$	(2.93	)

*Amounts may not recalculate due to rounding.

Table 11


Non-GAAP Earnings Per Share Calculation*
	THREE MONTHS ENDED									YEAR ENDED

$ Millions, except per share amounts (unaudited)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023


Numerator
Net earnings attributable to Coherent Corp. on non-GAAP basis	$	126.6		$	113.2		$	94.9		$	381.2		$	567.4
Deduct Series A preferred stock dividends		—			—			(6.9	)		—			(27.6	)
Deduct Series B redeemable preferred dividends		(31.4	)		(31.2	)		(29.8	)		(123.4	)		(116.6	)

Basic earnings available to common shareholders	$	95.2		$	82.0		$	58.2		$	257.8		$	423.2


Effect of dilutive securities
Add back interest on convertible notes	$	—		$	—		$	—		$	—		$	0.3
Add back Series A preferred stock dividends		—			—			—			—			27.6

Diluted earnings available to common shareholders	$	95.2		$	82.0		$	58.2		$	257.8		$	451.1


Denominator
Weighted average shares		152.6			152.1			139.3			151.6			137.6
Effect of dilutive securities:
Common stock equivalents		3.8			3.5			1.8			2.6			1.5
Convertible notes		—			—			—			—			1.1
Series A Mandatory Convertible Preferred Stock		—			—			—			—			10.4

Diluted weighted average common shares		156.3			155.7			141.1			154.3			150.6


Basic earnings per common share on non-GAAP basis	$	0.62		$	0.54		$	0.42		$	1.70		$	3.08


Diluted earnings per common share on non-GAAP basis	$	0.61		$	0.53		$	0.41		$	1.67		$	3.00

*Amounts may not recalculate due to rounding.

FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations, including our expectations regarding (i) our future financial and operational results; (ii) the growth and megatrends in the markets we serve including industrial, communications, electronics, and instrumentation; (iii) artificial intelligence, the growth in the datacom transceiver market, and the domination of 800G/1.6T; and (iv) improvement opportunities and shareholder value creation, each of which is based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 and relate to the Company’s performance on a going-forward basis. The forward-looking statements in this investor presentation involve risks and uncertainties, which could cause actual results, performance, or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all forward-looking statements made by it in this presentation have a reasonable basis, but there can be no assurance that management’s expectations, beliefs, or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and global economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this presentation include but are not limited to: (i) the failure of any one or more of the assumptions stated herein to prove to be correct; (ii) the risks relating to forward-looking statements and other risk factors that may be identified from time to time in filings of the Company; (iii) the substantial indebtedness the Company incurred in connection with its acquisition of Coherent, Inc. (the “Transaction”), the need to generate sufficient cash flows to service and repay such debt and the Company’s ability to generate sufficient funds to meet its anticipated debt reduction goals; (iv) the possibility that the Company may not be able to continue its integration progress on and/or take other restructuring actions, or otherwise be able to achieve expected synergies, operating efficiencies, including greater scale, focus, resiliency, and lower operating costs, and other benefits within the expected time frames or at all and ultimately to successfully fully integrate the operations of Coherent, Inc. (“Coherent”), with those of the Company; (v) the possibility that such integration and/or the restructuring actions may be more difficult, time-consuming, or costly than expected or that operating costs and business disruption (including, without limitation, disruptions in relationships with employees, customers, or suppliers) may be greater than expected in connection with the Transaction and/or the restructuring actions; (vi) any unexpected costs, charges, or expenses resulting from the Transaction and/or the restructuring actions; (vii) the risk that disruption from the Transaction and/or the restructuring actions materially and adversely affects the respective businesses and operations of the Company and Coherent; (viii) potential adverse reactions or changes to business relationships resulting from the completion of the Transaction and/or the restructuring actions; (ix) the ability of the Company to retain and hire key employees; (x) the purchasing patterns of customers and end users; (xi) the timely release of new products and acceptance of such new products by the market; (xii) the introduction of new products by competitors and other competitive responses; (xiii) the Company’s ability to assimilate other recently acquired businesses and realize synergies, cost savings, and opportunities for growth in connection therewith, together with the risks, costs, and uncertainties associated with such acquisitions; (xiv) the Company’s ability to devise and execute strategies to respond to market conditions; (xv) the risks to realizing the benefits of investments in R&D and commercialization of innovations; (xvi) the risks that the Company’s stock price will not trade in line with industrial technology leaders; and/or (xvii) the risks of business and economic disruption related to worldwide health epidemics or outbreaks that may arise. The Company disclaims any obligation to update information contained in these forward-looking statements, whether as a result of new information, future events or developments, or otherwise. Unless otherwise indicated in this presentation, all information in this presentation is as of August 15, 2024. This presentation contains non-GAAP financial measures and key metrics relating to the Company’s past performance. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As required by Regulation G, we have provided reconciliations of those measures to the most directly comparable GAAP measures in the section captioned “GAAP to NON-GAAP RECONCILIATION.” 2 Copyright 2024, Coherent. All rights reserved.

FROM A FOUNDATION OF MATERIALS AND IMAGINATION, WE ENABLE EXCITING MEGATRENDS COHERENT AT A GLANCE Year Founded NYSE 1971 COHR FY24 (1) Employees ≈26,000 $4.7B Revenue Available (1) Research & Development 2,250+ $64B Market (CY2023) (1) Patents Locations 3,100+ 126 Materials, Components, VERTICAL Subsystems, Systems Countries 24 INTEGRATION and Service (1) As of June 30, 2024 3 Copyright 2024, Coherent. All rights reserved.

$4.7 BILLION OF REVENUE IN FY24 WELL DIVERSIFIED ACROSS TECHNOLOGY, PRODUCTS, AND GEOGRAPHIC MARKETS Segments Markets Regions North Communications Materials Europe America Industrial Lasers 15% 22% 29% 36% 48% China BY REPORTING (1) 13% BY MARKET BY REGION 56% SEGMENT 13% 8% Korea & Japan 3% 49% 8% Instrumentation Other Networking Electronics (1) Revenue by region is based on customer headquarter addresses. (2) Amounts may not recalculate due to rounding. 4 Copyright 2024, Coherent. All rights reserved.

FOUR ATTRACTIVE GROWTH MARKETS AGGREGATE $64B TAM 14% FIVE-YEAR CAGR (2023-28) COMMUNICATIONS ELECTRONICS INSTRUMENTATION INDUSTRIAL TAM: $22B TAM: $23B TAM: $14B TAM: $5B CAGR: 9% CAGR: 14% CAGR: 20% CAGR: 8% Sources: LightCounting, Omdia, Sources: Optech Consulting, Sources: IDC, Morgan Stanley, Sources: Strategies Unlimited, TechInsight, Strategies Unlimited, Cignal AI, Yole, Dell’Oro Internal Research & Markets, Forbes, Yole, Markets & Markets, SDI (Strategic Estimates SEMI, Internal Estimates, DSCC Strategy Analytics, IdTechEx, Directions), Internal Estimates Internal Estimates Note: TAM based on CY2023 5 Copyright 2024, Coherent. All rights reserved.

INDUSTRIAL MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Precision manufacturing§ Fiber lasers for laser welding of batteries§ 50 years of experience in laser technology § UV lasers for OLED manufacturing § Long term technology partner across all § Giga factories for EV battery processing laser architectures § Laser systems, subsystems, and § Advanced medical devices processing heads§ Broadest spectrum of laser and systems § Additive manufacturing technologies § Laser components, optics, crystals Semiconductor & display capital § One stop shop for processing equipment § Ceramics, metal matrix composites, and equipment diamond§ Productivity enhancement through § Increasing laser content from ingot to innovation and knowhow packaged ICs § OLED for mobile and micro-LED for high- end TV and large displays Aerospace & Defense 6 Copyright 2024, Coherent. All rights reserved.

COMMUNICATIONS MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Datacom§ 100 to 800 Gbps datacom transceivers§ Largest supplier of optical communications components § Increasing spend on cloud infrastructure § Pluggable coherent transceivers § Vertically integrated from material through § Artificial Intelligence/Machine Learning § Wavelength selective switches (WSS) subsystems, including coherent DSPs § Pluggable optical line subsystems (POLS) Telecom § Industry pioneer in broad range of § Open disaggregated systems§ Terrestrial and submarine pump lasers technology platforms § Pluggable coherent transceivers§ InP edge-emitting lasers and GaAs VCSELs § Industry leading investments in R&D § Global and flexible manufacturing footprint 7 Copyright 2024, Coherent. All rights reserved.

DATACOM MARKET IS INFLECTING, THANKS TO THE AI BOOM Datacom transceivers $M $14,000 Expect Long $12,000 800G/1.6T overlapping to dominate for 3.2T cycles $10,000 next 5 years 1.6T $8,000 800G 400G $6,000 200G Fast rise, “Annuity” $4,000 100G slow decay model of ROI $2,000 $- 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Source: LightCounting & Internal Estimates 8 Copyright 2024, Coherent. All rights reserved.

ELECTRONICS MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION § GaAs and InP optoelectronics Consumer electronics§ Broadest portfolio of optoelectronics, optics, and electronics § Advanced sensing § VCSELs and edge-emitting lasers § High-volume consumer electronics § AR/VR § Laser illumination modules experience § Wearables as health monitors § Wafer level optics and subassemblies § Differentiated, proprietary compound § Waveguide materials, diffractive optics Automotive semiconductor platforms § Silicon carbide substrates and § Increasing SiC electronics content in EVs • 150 mm gallium arsenide platform epiwafers • 200 mm silicon carbide platform § Automotive sensing: in-cabin and LiDAR § SiC MOSFET devices and modules • Leading indium phosphide platform • Decades of investment in high quality silicon carbide substrates § Cross-functional engineering and integration expertise 9 Copyright 2024, Coherent. All rights reserved.

INSTRUMENTATION MARKET VERTICALS AND MEGATRENDS PRODUCTS VALUE PROPOSITION Life Sciences § Materials, optics, lasers, § Life sciences (biotechnology, medical, and and thermoelectrics environmental) and scientific segment § Smart healthcare evolution, largely based on solutions technology§ Components to subassemblies and subsystems§ Custom solutions from proof-of-concept to § Point-of-care diagnostics manufacturing at scale § Optical, mechanical, electrical and § Personalized medicine software integration§ Rapid time to market of complete turnkey Scientific Instrumentation subassemblies and systems § ISO 9001 & 13485 § Environmental sustainability § One of the broadest product portfolios to support a wide range of applications § Advanced instrumentation § Extensive technology innovation for next- generation capabilities § Global manufacturing footprint and flexible supply chain partners 10 Copyright 2024, Coherent. All rights reserved.

FY 2024 NON-GAAP Q4 EARNINGS RESULTS HIGHLIGHTS “After meeting with many of our employees and customers, I am more excited today about Revenue Coherent’s potential than when I joined two months ago. Coherent is a deeply innovative company with many secular growth opportunities. While we have many strengths, we also have opportunity for improvement, and I look forward to working with all my Coherent teammates to 9.1% unlock the full potential of the company and drive outstanding shareholder value creation.” Q4 FY24/Q4 FY23 Jim Anderson, CEO Q4 FY24 Revenue $1.314B Revenue by Market Gross Margin* Q4 FY24 Communications 19% Q4 FY24/Q4 FY23 Instrumentation Industrial 8% 33% Electronics 8% 132 BP Industrial Q4 FY24/Q4 FY23 52% 5% 37.2% in Q4 FY24 vs. 35.9% in Q4 FY23 Communications Q4 FY24/Q4 FY23 Highlights Earnings Per Share* 48.7% Q4 FY24/Q4 FY23 10% Sequential Revenue Growth in 300M datacom transceivers shipped Received first volume order for $0.61 in Q4 FY24 vs. $0.41 in Q4 FY23 Communications driven by strong growth from Ipoh, Malaysia, provides supply annealing systems for Gen 8 OLED in 800G datacom transceivers for AI chain resiliency for our customers display fabs for tablets and laptops * Non-GAAP based on earnings reported August 15, 2024 12 Copyright 2024, Coherent. All rights reserved.

QUARTERLY REVENUE BY SEGMENT REVENUE DISTRIBUTION BY SEGMENT (1) Revenue Distribution Quarterly Revenue by Segment 1,314 1,400 1,205 1,209 1,131 1,200 1,053 27% 1,000 Lasers Materials 21% 800 600 FY24 Q4 400 200 0 52% FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24Q4 Lasers 333 336 354 351 355 Networking 585 473 524 619 680 Networking Materials 288 245 254 239 279 Note: Amounts may not recalculate due to rounding. 13 Copyright 2024, Coherent. All rights reserved. Revenue ($M)

QUARTERLY REVENUE BY MARKET REVENUE DISTRIBUTION BY MARKET (1) Quarterly Revenue Trend Revenue Distribution 1,314 1,400 1,209 1,205 1,131 1,200 1,053 Industrial 1,000 Instrumentation 33% 8% 800 600 8% Electronics 400 FY24 Q4 200 0 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Instrumentation 117 99 99 98 101 52% Electronics 106 90 89 74 104 Communications 570 460 520 616 678 Industrial 412 404 423 421 431 Communications Note: Amounts may not recalculate due to rounding. 14 Copyright 2024, Coherent. All rights reserved. Revenue ($M)

QUARTERLY REVENUE BY REGION REVENUE DISTRIBUTION BY REGION Quarterly Revenue Trend Japan & 1,314 1,400 1,209 1,205 Korea 1,131 1,053 1,200 13% 1,000 China Europe 800 13% 14% 600 Other 3% 400 FY24 Q4 200 0 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Other 31 27 28 30 36 China 137 132 162 154 173 58% Japan & Korea 166 148 158 155 167 Europe 229 190 160 182 182 North America 642 556 623 688 756 North America Note: Prior periods restated to conform to current period presentation. Note: Amounts may not recalculate due to rounding. 15 Copyright 2024, Coherent. All rights reserved. Revenue ($M)

FIRST QUARTER FISCAL 2025 OUTLOOK REVENUE $1.27 – 1.35 billion NON-GAAP GROSS MARGIN 36 – 38% NON-GAAP OPERATING EXPENSES $260 – 280 million NON-GAAP TAX RATE 20 – 23% (1) NON-GAAP EARNINGS PER SHARE $0.53 – 0.69 (1) The Company does not provide reconciliations of forward-looking Non-GAAP EPS. The Company is unable, without unreasonable efforts, to forecast certain items required to develop a meaningful GAAP financial measure that is comparable to this forward-looking figure. 16 Copyright 2024, Coherent. All rights reserved.

GROSS PROFIT RECONCILIATION $ Millions (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Gross profit on GAAP basis 432 367 351 307 343 Share-based compensation 5 5 5 7 5 Amortization of acquired intangibles 30 31 30 31 39 Fair value adjustment on acquired inventory — — — — — Integration, site consolidation and other 22 30 22 21 46 Gross profit on non-GAAP basis 489 433 408 366 433 18 Copyright 2024, Coherent. All rights reserved.

OPERATING EXPENSE RECONCILIATION $ Millions (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Internal R&D on GAAP basis 127 128 111 114 123 Share-based compensation (5) (5) (5) (8) (5) Amortization of acquired intangibles (1) (1) (1) (1) (1) Start-up costs — (1) (1) (0) — Integration, site consolidation and other (3) (3) (3) (1) (3) Internal R&D on non-GAAP basis 118 118 102 103 115 SG&A on GAAP basis 228 205 209 212 256 Share-based compensation (19) (16) (17) (29) (17) Amortization of acquired intangibles (41) (41) (41) (41) (94) Integration, site consolidation and other (20) (16) (18) (10) (13) SG&A on non-GAAP basis 149 132 134 131 133 Restructuring on GAAP basis 14 (12) (2) 3 119 Restructuring charges (14) 12 2 (3) (119) Restructuring on non-GAAP basis — — — — — 19 Copyright 2024, Coherent. All rights reserved.

INCOME FROM OPERATIONS RECONCILIATION $ Millions (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Op. income (loss) on GAAP basis 63 22 32 (21) (155) Share-based compensation 29 26 27 45 26 Fair value adjustment on acquired inventory — — — — — Amortization of acquired intangibles 72 72 72 73 134 Start-up costs — 1 1 0 — Restructuring charges 14 12 (2) 3 119 Transaction fees and financing — — — — — Integration, site consolidation and other 46 49 42 33 61 Op. income on non-GAAP basis 223 182 172 132 185 Non-GAAP Op. Margin Percentage 17.0 % 15.1 % 15.2 % 12.6 % 15.4 % 20 Copyright 2024, Coherent. All rights reserved.

NET EARNINGS RECONCILIATION $ Millions (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Net earnings (loss) attributable to Coherent Corp. on (48) (13) (27) (68) (178) GAAP basis Share-based compensation 29 26 27 45 26 Amortization of acquired intangibles 72 72 72 73 134 Start-up costs — 1 1 0 — Foreign currency exch. (gains) losses 1 3 6 (1) 6 Restructuring charges 14 12 (2) 3 119 Integration, site consolidation and other 46 49 42 33 61 Transaction fees and financing 2 — — — — Tax impact of valuation allowance on deferred tax 46 — — — — assets Tax impact of non-GAAP measures (34) (37) (33) (31) (73) Net earnings attributable to Coherent Corp. on non- 127 113 86 55 95 GAAP basis 21 Copyright 2024, Coherent. All rights reserved.

NET EARNINGS PER COMMON SHARE $ (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Net earnings (loss) attributable to Coherent Corp., GAAP Basic Earnings (Loss) Per Share (0.52) (0.29) (0.38) (0.65) (1.54) Diluted Earnings (Loss) Per Share (0.52) (0.29) (0.38) (0.65) (1.54) Net earnings (loss) attributable to Coherent Corp., non-GAAP Basic Earnings Per Share 0.62 0.54 0.37 0.16 0.42 Diluted Earnings Per Share 0.61 0.53 0.37 0.16 0.41 22 Copyright 2024, Coherent. All rights reserved.

NET EARNINGS, GAAP, AND ADJUSTED EBITDA RECONCILIATION $ Millions (Unaudited) Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Net earnings (loss) on GAAP basis (47) (16) (29) (68) (178) Income taxes (benefit) 57 (16) (9) (21) (55) Depreciation and amortization 144 140 138 138 204 Interest expense 68 73 75 73 79 Interest income (13) (13) (7) (4) (4) EBITDA 208 168 168 120 45 EBITDA margin 15.8 % 13.9 % 14.9 % 11.4 % 3.7 % Share-based compensation 29 26 27 45 26 Foreign currency exch. (gains) losses 1 3 6 (1) 6 Start-up costs — 1 1 — — Restructuring charges 14 12 (2) 3 119 Transaction fees and financing 2 — — — — Integration, site consolidation and other 46 49 42 33 61 Adjusted EBITDA 300 259 243 200 257 Less: adjusted EBITDA attributable to noncontrolling (2) 2 0 — — interests Adjusted EBITDA attributable to Coherent Corp. 298 261 243 200 257 Adjusted EBITDA margin attributable to Coherent 22.6 % 21.6 % 21.5 % 19.0 % 21.4 % Corp. 23 Copyright 2024, Coherent. All rights reserved.

Document and Entity Information	Aug. 15, 2024
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0000820318
Document Type	8-K
Document Period End Date	Aug. 15, 2024
Entity Registrant Name	Coherent Corp.
Entity Incorporation State Country Code	PA
Entity File Number	001-39375
Entity Tax Identification Number	25-1214948
Entity Address, Address Line One	375 Saxonburg Boulevard
Entity Address, City or Town	Saxonburg
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	16056
City Area Code	(724)
Local Phone Number	352-4455
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, no par value
Trading Symbol	COHR
Security Exchange Name	NYSE
Entity Emerging Growth Company	false