nLIGHT: The Defense Pivot Worked, And The Stock Is Already Running Hot

Emmanuel Onwusah537 FollowersFollow5ShareSavePlay(10min)CommentsSummarynLIGHT, Inc. has completed its pivot to aerospace and defense, with A&D now comprising 67% of FY25 revenue.LASR’s gross and operating margins have rebounded to five-year highs, driven by more profitable, stickier A&D contracts.The stock’s current 12x sales multiple prices in aggressive defense-tech growth, but guidance and sector tailwinds support further upside.I reiterate a Buy rating, though the margin of safety is reduced after a 600% rally and ongoing execution risks remain. Michele Ursi/iStock via Getty Images The last time I covered nLIGHT, Inc. (LASR) was 12 months ago, and the stock is up nearly 600% in the period since then. I called it a tentative Buy, at theThis article was written byEmmanuel Onwusah537 FollowersFollowI’m Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meets narrative. My background is in petroleum and gas engineering, but I moved into finance because I’ve always been drawn to how businesses grow, how markets react, and how data tells stories. I focus on tech, infrastructure, and internet services, with a bias for companies that pair strong fundamentals with real potential.I write here to think in public, share investment ideas, and connect with other investors who care about long-term returns, not just short-term noise. If you enjoy thoughtful breakdowns and real conversation around stocks, you’re in the right place. There’ll be charts, jokes, and hopefully, some profitable ideas.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.