COHERENT CORP.COHR
COHERENT CORP. Segments Disclosure
Segment and Geographic Reporting
Our Chief Executive Officer has been identified as the chief operating decision maker (“CODM”) as he utilizes financial information to make decisions about allocating resources and assessing performance for the entire Company, which is used in the decision-making process to assess performance. We determine our reportable business segments based on the way the CODM organizes business segments within the Company for making operating decisions and assessing performance. Effective July 1, 2022, we report our financial results in the following three segments: (i) Networking, (ii) Materials, and (iii) Lasers.
The Networking segment has locations in the United States, Australia, China, Germany, Malaysia, South Korea, Thailand, the Philippines, the United Kingdom, and Vietnam. This segment address all of Coherent’s four end markets, namely: communications, industrial, electronics, and instrumentation, with a concentration in the communications market. This segment leverages Coherent’s compound semiconductor technology platforms and deep knowledge of end-user applications for our key end markets to deliver differentiated components, modules and subsystems.
The Materials segment has locations in the United States, China, Germany, Italy, Japan, Singapore, South Korea, Sweden, Switzerland, Taiwan, the Philippines, the United Kingdom, and Vietnam. This segment address all of Coherent’s four end markets, namely: communications, industrial, electronics, and instrumentation, with concentrations in the industrial and electronics markets. The Materials segment is a market leader in engineered materials and optoelectronic devices, such as those based on ZnSe, ZnS, GaAs, InP, GaSb, and SiC.
The Lasers segment has locations in the United States, Finland, Germany, Malaysia, Singapore, South Korea, Spain, Sweden, Switzerland, and the United Kingdom. The Lasers segment’s lasers and optics products serve industrial customers in both semiconductor and display capital equipment, precision manufacturing, and instrumentation customers in life sciences and scientific instrumentation.
During the first quarter of fiscal 2025 as a result of a new CEO joining the Company in the fourth quarter of fiscal 2024, our CODM implemented changes in the measure he uses to allocate resources and assess performance. Our CODM now evaluates each segment’s performance and allocates resources based on segment revenue and segment profit, instead of operating income, as our CODM believes segment profit is a more comprehensive profitability measure for each operating segment. Segment profit includes operating expenses directly managed by operating segments, including research and development, direct sales, marketing and administrative expenses. Segment profit does not include share-based compensation, acquisition or integration related costs, amortization and impairment of acquisition-related intangible assets, restructuring charges, and certain other charges. Additionally, effective in fiscal 2025, we no longer allocate Corporate strategic research and development, strategic marketing and sales expenses and shared general and administrative expenses, as these expenses are not directly attributable to our operating segments. The segments are managed separately due to the market, production requirements and facilities unique to each segment. The Company derives its segment results directly from the manner in which results are reported in its management reporting system and the CODM uses segment profit to drive decisions in the forecasting process when making decisions about allocation capital and other resources to the segments. The accounting policies are consistent across each segment. Effective in fiscal 2025, we no longer allocate corporate assets to the segments.
Comparative prior period segment information has been recast to conform to the new segment profitability measure. The change in our operating segment measure had no impact on our previously reported consolidated results of operations, financial condition, or cash flows.
The following tables set forth the details of revenues and segment profit and reconciles segment profit to consolidated earnings (loss) before income taxes for the periods presented ($000):
| 2025 | Networking | Materials | Lasers | Unallocated | Total | |||||||||||||||||||||||||||
| Revenues | $ | 3,421,276 | $ | 953,843 | $ | 1,434,996 | $ | — | $ | 5,810,115 | ||||||||||||||||||||||
| Inter-segment revenues | 58,465 | 547,601 | 8,310 | (614,376) | — | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
Cost of goods sold (1) | 2,507,154 | 856,668 | 836,592 | (614,376) | 3,586,038 | |||||||||||||||||||||||||||
Research and development (1) | 247,072 | 177,822 | 120,045 | — | 544,939 | |||||||||||||||||||||||||||
Selling, general and administrative (1) | 81,993 | 112,240 | 170,190 | — | 364,423 | |||||||||||||||||||||||||||
| Segment profit | $ | 643,522 | $ | 354,714 | $ | 316,479 | $ | — | 1,314,715 | |||||||||||||||||||||||
| Unallocated Corporate expenses | ||||||||||||||||||||||||||||||||
Corporate and centralized function costs (2) | (277,771) | |||||||||||||||||||||||||||||||
| Share-based compensation | (160,972) | |||||||||||||||||||||||||||||||
Restructuring costs (3) | (160,081) | |||||||||||||||||||||||||||||||
| Impairment of assets held-for-sale | (84,988) | |||||||||||||||||||||||||||||||
Integration, site consolidation and other costs (4) | (38,237) | |||||||||||||||||||||||||||||||
| Amortization of intangibles | (302,788) | |||||||||||||||||||||||||||||||
| Interest expense | (243,251) | |||||||||||||||||||||||||||||||
| Other (income) expense, net | 47,554 | |||||||||||||||||||||||||||||||
| Earnings before income taxes | $ | 94,181 | ||||||||||||||||||||||||||||||
| 2024 | Networking | Materials | Lasers | Unallocated | Total | |||||||||||||||||||||||||||
| Revenues | $ | 2,295,729 | $ | 1,016,573 | $ | 1,395,386 | $ | — | $ | 4,707,688 | ||||||||||||||||||||||
| Inter-segment revenues | 45,767 | 457,623 | 5,212 | (508,602) | — | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
Cost of goods sold (1) | 1,747,317 | 914,691 | 873,367 | (508,602) | 3,026,773 | |||||||||||||||||||||||||||
Research and development (1) | 174,530 | 161,402 | 110,515 | — | 446,447 | |||||||||||||||||||||||||||
Selling, general and administrative (1) | 65,997 | 101,229 | 209,933 | — | 377,159 | |||||||||||||||||||||||||||
| Segment profit | $ | 353,652 | $ | 296,874 | $ | 206,783 | $ | — | 857,309 | |||||||||||||||||||||||
| Unallocated Corporate expenses | ||||||||||||||||||||||||||||||||
Corporate and centralized function costs (2) | (239,259) | |||||||||||||||||||||||||||||||
| Share-based compensation | (126,895) | |||||||||||||||||||||||||||||||
Restructuring costs (3) | (27,054) | |||||||||||||||||||||||||||||||
Integration, site consolidation and other costs (4) | (79,820) | |||||||||||||||||||||||||||||||
| Amortization of intangibles | (288,160) | |||||||||||||||||||||||||||||||
| Interest expense | (288,475) | |||||||||||||||||||||||||||||||
| Other (income) expense, net | 44,707 | |||||||||||||||||||||||||||||||
| Earnings (loss) before income taxes | (147,647) | |||||||||||||||||||||||||||||||
| 2023 | Networking | Materials | Lasers | Unallocated | Total | |||||||||||||||||||||||||||
| Revenues | $ | 2,340,930 | $ | 1,349,758 | $ | 1,469,412 | $ | — | $ | 5,160,100 | ||||||||||||||||||||||
| Inter-segment revenues | 70,120 | 362,179 | 1,517 | (433,816) | — | |||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
Cost of goods sold (1) | 1,701,681 | 1,061,062 | 866,195 | (433,816) | 3,195,122 | |||||||||||||||||||||||||||
Research and development (1) | 180,350 | 168,209 | 123,568 | — | 472,127 | |||||||||||||||||||||||||||
Selling, general and administrative (1) | 64,093 | 91,164 | 210,611 | — | 365,868 | |||||||||||||||||||||||||||
| Segment profit | 464,926 | 391,502 | 270,555 | — | 1,126,983 | |||||||||||||||||||||||||||
| Unallocated Corporate expenses | ||||||||||||||||||||||||||||||||
Corporate and centralized function costs (2.) | (199,811) | |||||||||||||||||||||||||||||||
| Share-based compensation | (149,631) | |||||||||||||||||||||||||||||||
Restructuring costs and other (3) | (119,101) | |||||||||||||||||||||||||||||||
Integration, site consolidation and other costs (4) | (81,503) | |||||||||||||||||||||||||||||||
| Amortization of intangibles | (414,125) | |||||||||||||||||||||||||||||||
| Interest expense | (286,872) | |||||||||||||||||||||||||||||||
| Purchase accounting adjustments | (157,500) | |||||||||||||||||||||||||||||||
| Transaction costs | (38,652) | |||||||||||||||||||||||||||||||
| Other (income) expense, net | (31,566) | |||||||||||||||||||||||||||||||
| Other | (3,780) | |||||||||||||||||||||||||||||||
| Earnings (loss) before income taxes | $ | (355,558) | ||||||||||||||||||||||||||||||
(1)The significant expense category amount aligns with the segment-level information that is regularly provided to the CODM and excludes unallocated corporate expenses (corporate and centralized function costs, share-based compensation, restructuring costs, integration, site consolidation and other costs as well as amortization of intangibles).
(2)We do not allocate corporate and centralized function costs that are not directly attributable to our operating segments.
(3)See Note 20. Restructuring Plans for further information.
(4)Integration and site consolidation costs in the year ended June 30, 2025 includes $35 million in consulting and legal costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, $2 million of employee severance and retention costs related to sites being shut down as part of our Synergy and Site Consolidation Plan, and $1 million of executive transition costs. Integration and site consolidation costs in the year ended June 30, 2024 primarily include $40 million in consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, and $40 million of employee severance and retention and other costs related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan. Integration and site consolidation costs in the year ended June 30, 2023 primarily include $46 million in consulting costs related to projects to integrate recent acquisitions into common technology systems and simplify legal entity structure, and $36 million of employee severance and retention and other costs related to sites being shut down as part of our 2023 Restructuring Plan or Synergy and Site Consolidation Plan.
The following tables summarizes capital expenditures by segment ($000):
| Year Ended June 30, | |||||||||||||||||
| Expenditures for property, plant, and equipment | 2025 | 2024 | 2023 | ||||||||||||||
| Networking | $ | 263,425 | $ | 90,950 | $ | 98,192 | |||||||||||
| Materials | 137,444 | 224,482 | 274,434 | ||||||||||||||
| Lasers | 39,967 | 31,384 | 63,434 | ||||||||||||||
| Total expenditures for property, plant, and equipment | $ | 440,836 | $ | 346,816 | $ | 436,060 | |||||||||||
The following tables summarizes depreciation and amortization by segment ($000):
| Year Ended June 30, | ||||||||||||||||||||
| Depreciation and amortization | 2025 | 2024 | 2023 | |||||||||||||||||
| Networking | $ | 162,225 | $ | 158,833 | $ | 169,573 | ||||||||||||||
| Materials | 119,118 | 107,798 | 141,648 | |||||||||||||||||
| Lasers | 267,328 | 287,662 | 364,370 | |||||||||||||||||
| Corporate and shared services | 4,927 | 5,468 | 6,096 | |||||||||||||||||
| Total depreciation and amortization | $ | 553,598 | $ | 559,761 | $ | 681,687 | ||||||||||||||
The following tables summarizes segment assets ($000):
| Year Ended June 30, | ||||||||||||||||||||
| Segment assets and reconciliation to total assets | 2025 | 2024 | 2023 | |||||||||||||||||
| Networking | $ | 4,027,777 | $ | 3,472,866 | $ | 3,188,873 | ||||||||||||||
| Materials | 2,779,093 | 3,017,858 | 2,043,241 | |||||||||||||||||
| Lasers | 7,541,129 | 7,361,731 | 7,751,937 | |||||||||||||||||
| Corporate and shared services | 562,937 | 636,179 | 727,082 | |||||||||||||||||
| Total assets | $ | 14,910,936 | $ | 14,488,634 | $ | 13,711,133 | ||||||||||||||
Geographic information for revenues by location of the customer’s headquarters, were as follows ($000):
| Revenues | ||||||||||||||||||||
| Year Ended June 30, | 2025 | 2024 | 2023 | |||||||||||||||||
| North America | $ | 3,564,846 | $ | 2,622,569 | $ | 2,745,891 | ||||||||||||||
| Europe | 698,800 | 714,282 | 979,911 | |||||||||||||||||
| China | 680,110 | 621,918 | 577,180 | |||||||||||||||||
| Japan | 390,610 | 340,863 | 392,479 | |||||||||||||||||
| Rest of World | 475,749 | 408,056 | 464,639 | |||||||||||||||||
| Total | $ | 5,810,115 | $ | 4,707,688 | $ | 5,160,100 | ||||||||||||||
Major Customers
We had two major customers who accounted for 12% and 10% of consolidated revenue during fiscal 2025. We had a different major customer who accounted for 10% of consolidated revenue during fiscal 2024. We had a major customer who accounted for 10% of consolidated revenue during fiscal 2023. These customers purchased primarily from our Networking segment.
Geographic information for long-lived assets by country, which include property, plant and equipment, net of related depreciation, and certain other long-term assets, were as follows ($000):
| Long-Lived Assets | ||||||||||||||
| June 30, | 2025 | 2024 | ||||||||||||
| United States | $ | 1,092,389 | $ | 1,226,359 | ||||||||||
| Non-United States | ||||||||||||||
| China | 402,960 | 349,195 | ||||||||||||
| Malaysia | 196,543 | 87,783 | ||||||||||||
| Germany | 189,281 | 209,593 | ||||||||||||
| Vietnam | 65,565 | 20,707 | ||||||||||||
| Sweden | 51,032 | 44,733 | ||||||||||||
| Switzerland | 49,602 | 44,256 | ||||||||||||
| Philippines | 25,406 | 11,217 | ||||||||||||
| United Kingdom | 20,594 | 19,153 | ||||||||||||
| Korea | 16,037 | 17,862 | ||||||||||||
| Australia | 9,014 | 8,611 | ||||||||||||
| Taiwan | 6,063 | 6,705 | ||||||||||||
| Other | 23,044 | 23,166 | ||||||||||||
| Total Non-United States | 1,055,141 | 842,981 | ||||||||||||
| $ | 2,147,530 | $ | 2,069,340 | |||||||||||
Change in Reportable Segments in Fiscal 2026
Effective July 1, 2025 for our fiscal year 2026, the Company realigned its organizational structure into two reporting segments: (i) Datacenter and Communications, and (ii) Industrial. The Company will report financial information for these new reporting segments in fiscal 2026. This change in reporting is to occur beginning with periods commencing July 1, 2025.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 15, 2025 | Showing above |
| 2024 | Aug 16, 2024 | |
| 2023 | Aug 18, 2023 | |
| 2022 | Aug 29, 2022 | |
| 2021 | Aug 20, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 16, 2019 | |
| 2018 | Aug 28, 2018 | |
| 2017 | Aug 21, 2017 | |
| 2016 | Aug 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.