nLight’s aerospace and defense segment grew revenues by 60% in Q4 2025, driven by a combination of continuations, new programs building on past work, and low-rate production orders in directed energy and laser sensing. Full-rate production of existing laser sensing systems provided substantial near-term revenue while new sensing programs are expected to ramp contributions over the next year.

Management confirmed the strategic exit from cutting and welding will reduce revenues by approximately $25 million to $30 million in 2026, with sales from those segments declining to zero by midyear. The decision reallocates overhead and resources toward higher-growth defense applications, with minimal near-term margin impact expected as production capacity shifts.

nLight plans to use recently raised cash to expand manufacturing capacity, strengthen its supply chain, accelerate new product development, and pursue targeted M&A opportunities. The team highlights the importance of maintaining execution focus given limited visibility in the microfabrication sector and the technical complexity of government defense programs.