Core Insights - Advanced Energy Industries (AEIS) reported a revenue of $489.4 million for the quarter ended December 2025, marking a year-over-year increase of 17.8% and an EPS of $1.94 compared to $1.30 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $475.24 million by 2.98%, while the EPS surpassed the consensus estimate of $1.77 by 9.61% [1] Revenue Performance by Market - Data Center Computing generated $177.9 million, slightly below the average estimate of $178.51 million, with a year-over-year increase of 100.6% [4] - Telecom and Networking reported $21.7 million, below the average estimate of $24.98 million, reflecting a year-over-year decrease of 6% [4] - Semiconductor Equipment achieved $211.6 million, exceeding the average estimate of $194.55 million, but showing a year-over-year decline of 6.7% [4] - Industrial and Medical sectors reported $78.2 million, slightly above the average estimate of $77.32 million, with a year-over-year increase of 1.8% [4] Stock Performance - Advanced Energy's shares have returned +22.7% over the past month, while the Zacks S&P 500 composite remained unchanged [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the broader market in the near term [3]

分组1 - Advanced Energy Industries (AEIS) reported quarterly earnings of $1.94 per share, exceeding the Zacks Consensus Estimate of $1.77 per share, and showing an increase from $1.3 per share a year ago, resulting in an earnings surprise of +9.61% [1] - The company achieved revenues of $489.4 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.98%, and up from $415.4 million in the same quarter last year [2] - Advanced Energy has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong financial performance [2] 分组2 - The stock has gained approximately 33.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.7% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $1.64 for the coming quarter and $7.52 for the current fiscal year [4][7] - The Semiconductor Equipment - Wafer Fabrication industry, to which Advanced Energy belongs, is currently ranked in the top 3% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Core Insights - The company experienced a strong financial performance in 2025, with total revenue growth exceeding 20% and earnings per share increasing by over 70% [3][10][17] - The semiconductor and data center markets showed significant growth, with data center revenue more than doubling year on year [2][15] - The company expects continued growth in 2026, driven by new product introductions and a recovery in the industrial medical market [7][8][20] Financial Performance - Revenue for Q4 2025 reached nearly $490 million, marking a 6% sequential increase and an 18% year-over-year growth [3][10] - Gross margin improved to just shy of 40%, the best performance in five years, with operating cash flow reaching a record $235 million [3][10][17] - For the full year 2025, total revenue was $1.8 billion, up 21% year over year, with semiconductor revenue at $840 million, a 6% increase [15][17] Market Dynamics - The industrial medical market saw a sequential revenue increase of 10% in Q4, returning to year-over-year growth after two years of decline [6][11] - Data center computing revenue was a record $178 million in Q4, up 101% year over year, driven by AI data center investments [11][15] - The company anticipates that the semiconductor market will see stronger demand in the second half of 2026, supported by customer forecasts [7][25] Product Development and Strategy - The company launched 26 new products in 2025 and expects to continue leveraging its design win pipeline for future growth [1][2][4] - Investments in new product development, customization capabilities, and digital marketing are expected to enhance market share in the industrial medical sector [5][60] - The company is focused on expanding its manufacturing capacity, including a new factory in Thailand expected to generate over $1 billion in annual revenue capacity [5][21][38] Future Outlook - The company projects high teens revenue growth for 2026, following a 21% growth in 2025, with expectations of over 30% growth in the data center segment [8][20] - Gross margin is expected to exceed 40% in 2026, supported by improved efficiency and a favorable product mix [6][21][48] - The company is actively pursuing acquisition opportunities to expand its technology portfolio, particularly in the industrial and medical sectors [54][60]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was nearly $490 million, at the high end of guidance, with a year-over-year increase of 18% and a sequential increase of 6% [4][14] - Gross margin reached 39.7%, the best performance in five years, up 60 basis points sequentially [14][15] - Earnings per share for Q4 were $1.94, up from $1.74 in the previous quarter and $1.30 a year ago, reflecting a 73% increase in non-GAAP earnings for 2025 to $6.41 per share [15][17] - Total revenue for 2025 was $1.8 billion, representing a 21% year-over-year growth [17] Business Line Data and Key Metrics Changes - Data center computing revenue more than doubled year-on-year to $587 million, with Q4 revenue reaching a record $178 million, up 101% year-over-year [14][17] - Semiconductor revenue grew 6% year-on-year to $840 million, marking the second-highest level in company history [17] - Industrial and medical revenue decreased 11% for the full year but showed signs of recovery with a 10% sequential increase in Q4, returning to year-over-year growth for the first time in two years [14][17] Market Data and Key Metrics Changes - The semiconductor market is expected to see stronger customer forecasts, particularly in advanced logic and memory capacity, which will drive growth in the second half of 2026 [10][26] - Data center revenue is projected to grow more than 30% in 2026, driven by increased demand from hyperscalers [10][30] - Industrial and medical markets are expected to improve over the next few quarters, supported by normalized inventories and new product adoption [10][21] Company Strategy and Development Direction - The company is focused on a diversification strategy, investing in new product development and expanding manufacturing capacity in the Philippines, Mexico, and Thailand [11][22] - Continued emphasis on R&D and marketing spending to build a strong portfolio of new products and gain market share [11][80] - The company aims to achieve a long-term gross margin goal of 43% by improving manufacturing efficiency and product mix [22][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding long-term financial goals, citing strong demand trends across all target markets for 2026 [11][20] - The company anticipates challenges related to supply chain constraints, particularly in processors and memory, which may impact growth [35][36] - Positive demand trends are expected to continue, with a focus on leveraging design wins and new product introductions to drive growth [10][21] Other Important Information - The company completed the fit-up of a new factory in Thailand, expected to generate over $1 billion in annual revenue capacity once fully operational [8][22] - Operating cash flow reached a record $235 million in 2025, supporting investments in production capacity [17][18] Q&A Session Summary Question: How is the company thinking about semiconductor capital growth in relation to industry growth? - Management believes the company is well-positioned for structural share gain in semiconductor markets due to broad acceptance of new technologies [25][26] Question: What is the outlook for data center growth and new customers? - The growth forecast of over 30% for data center revenue is based solely on existing customers, with potential upside from second-wave customers [29][30] Question: What visibility does the company have into data center projects? - Management indicated that supply constraints in processors and memory could limit growth, leading to a conservative outlook [35][36] Question: What is the expected revenue mix from the new Thailand facility? - The facility is expected to initially focus on data center products, with plans to include plasma power and industrial medical products in the future [43][44] Question: How does the company view the potential for growth in the semiconductor market? - Management sees potential for growth exceeding 20% in 2026, driven by new products and strong customer forecasts [58][66] Question: What is the status of the M&A pipeline? - The company remains active in pursuing acquisition opportunities, particularly in the industrial and medical sectors [68][69]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was nearly $490 million, at the high end of guidance, with a year-over-year increase of 18% and a sequential increase of 6% [4][14] - Gross margin reached 39.7%, the best performance in five years, up 60 basis points sequentially [14] - Earnings per share for Q4 were $1.94, up from $1.74 in the previous quarter and $1.30 a year ago, reflecting a 70% increase year-over-year [15][17] - For the full year 2025, total revenue was $1.8 billion, up 21% year-over-year, with operating income increasing by 89% [17][12] Business Line Data and Key Metrics Changes - Semiconductor revenue for Q4 was $212 million, up 8% sequentially and contributing to a total of $840 million for the year, a 6% increase [13][17] - Data center computing revenue reached a record $178 million in Q4, up 101% year-over-year and 4% sequentially, with full-year revenue of $587 million, reflecting a 107% increase [14][17] - Industrial and medical revenue increased 10% sequentially to $78 million in Q4, marking the first year-over-year growth in two years [14][17] Market Data and Key Metrics Changes - The semiconductor market is expected to see stronger customer forecasts, particularly in advanced logic and memory capacity, which will drive growth in the second half of 2026 [10][26] - Data center revenue is projected to grow more than 30% in 2026, driven by increased demand from hyperscalers [10][30] - Industrial and medical markets are expected to improve over the next few quarters, supported by normalized inventories and new product adoption [10][21] Company Strategy and Development Direction - The company is focused on a diversification strategy across multiple high-value markets, which has led to consistent financial results and growth opportunities [11][20] - Investments in new product development, digital marketing, and channel partnerships are expected to drive market share gains in the industrial and medical sectors [11][80] - The company plans to continue pursuing inorganic growth opportunities to broaden its technology portfolio and improve scale [11][69] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand trends across all target markets for 2026, with expectations of high-teens revenue growth following a 21% increase in 2025 [10][21] - The company anticipates achieving gross margins above 40% in 2026, supported by improved manufacturing efficiency and a favorable product mix [9][22] - Management noted that supply chain constraints, particularly in processors and memory, may impact growth but are actively managing inventory to mitigate risks [35][52] Other Important Information - The company completed the fit-up of a new factory in Thailand, expected to generate over $1 billion in annual revenue capacity once fully operational [8][22] - The company has maintained a solid cadence of new product introductions, launching 26 new products in 2025 [7][11] Q&A Session Summary Question: How does the company view semiconductor growth in relation to industry trends? - Management believes the company is well-positioned for structural share gains in semiconductor markets due to broad acceptance of new technologies [25][26] Question: What is the outlook for data center growth and new customer acquisition? - The growth forecast for data center revenue is based solely on existing customers, with potential upside from second-wave customers not included in the current projections [29][30] Question: What visibility does the company have into data center projects? - Management indicated that while there is upside potential, supply chain constraints may limit growth, leading to a conservative outlook [35][36] Question: How does the company plan to manage operating expenses with the new Thailand facility? - Operating expenses are expected to grow but will be managed within the projected growth envelope, with investments in Thailand accounted for in the overall strategy [81][82]

Financial Data and Key Metrics Changes - The company reported Q4 2025 revenue of nearly $490 million, marking an 18% year-over-year increase and a 6% sequential increase, which was at the high end of guidance [4][12] - For the full year 2025, total revenue grew over 20% to $1.8 billion, with earnings per share increasing by over 70% to $6.41 [4][16] - Gross margin for Q4 was 39.7%, up 60 basis points sequentially, and for the full year, gross margin improved 240 basis points to 38.7% [12][16] - Operating cash flow reached a record $235 million for the year, with Q4 cash flow from operations at $80 million [12][16] Business Line Data and Key Metrics Changes - Data center computing revenue more than doubled year-on-year to $587 million, with Q4 revenue reaching a record $178 million, up 101% year-over-year [5][13][16] - Semiconductor revenue grew 6% year-on-year to $840 million, marking the second-highest level in company history [5][16] - Industrial and medical revenue decreased 11% for the full year but showed signs of recovery with a 10% sequential increase in Q4, returning to year-over-year growth for the first time in two years [5][13][16] Market Data and Key Metrics Changes - The company expects data center revenue to grow more than 30% in 2026, driven by strong demand from hyperscalers [10][19] - Semiconductor market forecasts indicate a strong second half of 2026, supported by increased customer demand and investments in advanced logic and memory capacity [10][19] - The industrial and medical market is expected to continue improving, with growth anticipated over the next few quarters as inventory levels normalize [10][19] Company Strategy and Development Direction - The company is focused on a diversification strategy across multiple high-value markets, which has allowed it to deliver consistent financial results [11][21] - Continued investment in R&D and marketing has built a strong portfolio of new products and a healthy design win pipeline [11][21] - The company is expanding manufacturing capacity in the Philippines, Mexico, and Thailand to support growth, with the Thailand factory expected to generate over $1 billion in annual revenue capacity once fully operational [8][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for growth, citing strong demand trends across all target markets entering 2026 [10][19] - The company anticipates that gross margins will exceed 40% in 2026, driven by improved manufacturing efficiency and a favorable product mix [9][19] - Management noted that while supply chain constraints may impact growth, they are proactively building inventory to mitigate risks [33][50] Other Important Information - The company launched 26 new products in 2025, contributing to revenue growth and customer engagement [6][11] - The company is actively pursuing acquisition opportunities to expand its technology portfolio, particularly in the industrial and medical sectors [11][65] Q&A Session Summary Question: How does the company view semiconductor capital growth in relation to industry expectations? - Management believes the company is well-positioned for structural share gains in semiconductor markets due to broad acceptance of new technologies [24][25] Question: What is the outlook for data center growth and customer demand? - The company expects over 30% growth in data center revenue, primarily based on existing customer demand, with additional upside potential from new customers [27][28] Question: What are the constraints affecting growth in the semiconductor sector? - Supply chain issues, particularly related to processors and memory, may limit growth, but the company is taking steps to build strategic inventory [33][50] Question: How does the company plan to manage operating expenses with the new Thailand facility? - Operating expenses are expected to grow but will be managed within the projected growth framework, with investments in Thailand accounted for in the overall strategy [76][78]

Safe Harbor Advanced Energy (AEIS) Q4 and 2025 Financial Results FEBRUARY 10, 2026 Q4 2025 Financial Highlights $489 million 39.7% $80 million $1.94 17.8% $791 million REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) NON-GAAP EPS NON-GAAP OP MARGIN(1) TOTAL CASH Up 18% YoY Up 49% YoY Up 170 bps YoY Up 426 bps YoY Net Cash³ of $224 million (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation (2) Cash flow from ...

Revenue Performance - Q4 2025 revenue was $489 million, up 5.6% from $463 million in Q3 2025 and up 17.8% from $415 million in Q4 2024[4] - Full year 2025 revenue reached $1.80 billion, a 21% increase from $1.48 billion in 2024[8] - Revenue for Q4 2025 reached $489.4 million, a 17.8% increase from $415.4 million in Q4 2024[23] - The company reported a total of $1,798.8 million in revenue for the year 2025, up from $1,482.0 million in 2024, indicating a strong annual growth[26] - The guidance for Q1 2026 revenue is projected between $480 million and $520 million[30] - The company plans to guide Q1 2026 revenue between $500 million and $520 million[11] Profitability Metrics - GAAP net income for Q4 2025 was $53 million or $1.31 per diluted share, compared to $46 million or $1.21 per diluted share in Q3 2025[5] - GAAP EPS from continuing operations for 2025 was $3.87, up from $1.49 in 2024[8] - Non-GAAP net income for Q4 2025 was $75 million or $1.94 per diluted share, compared to $66 million or $1.74 per diluted share in Q3 2025[7] - Net income for the year ended December 31, 2025, was $148.4 million, compared to $54.2 million in 2024, reflecting a substantial growth[25] - Non-GAAP earnings per share for Q4 2025 was $1.94, compared to $1.30 in Q4 2024, representing a 49.2% increase[28] Operating Performance - Operating income for the year ended December 31, 2025, was $168.0 million, significantly up from $36.6 million in 2024[23] - GAAP operating income for Q4 2025 was $56.6 million, an increase from $33.8 million in Q4 2024, marking a 67.5% rise[27] - Non-GAAP operating income for Q4 2025 reached $86.9 million, up from $56.1 million in Q4 2024, indicating a 54.9% increase[27] - The company reported a GAAP operating margin of 11.6% for Q4 2025, up from 8.1% in Q4 2024[27] Cash Flow and Financial Position - Cash flow from continuing operations was a record $235 million for the full year 2025[9] - Advanced Energy's outstanding debt at year-end 2025 was $568 million, with cash and equivalents of $791 million[9] - Cash and cash equivalents increased to $791.2 million as of December 31, 2025, up from $722.1 million in 2024[24] - Total assets rose to $2,545.8 million in 2025, compared to $2,261.9 million in 2024[24] Segment Performance - Data Center Computing revenue grew 107% to a record level in 2025[6] - The Data Center Computing segment saw a significant increase in revenue to $177.9 million in Q4 2025, compared to $88.7 million in Q4 2024[26] - The Semiconductor Equipment market generated $211.6 million in revenue for Q4 2025, down from $226.8 million in Q4 2024[26] Research and Development - Research and development expenses for Q4 2025 were $60.1 million, compared to $56.1 million in Q4 2024, highlighting continued investment in innovation[23] Guidance and Projections - GAAP EPS guidance for Q1 2026 is projected at $1.44, with a range of +/- $0.25[11] - Non-GAAP earnings per share guidance for Q1 2026 is expected to range from $1.69 to $2.19[30]

Core Insights - Advanced Energy Industries (AEIS) is set to announce its fourth-quarter 2025 results on February 10, with expected revenues of $470 million (+/- $20 million) and non-GAAP earnings of $1.75 per share (+/- 25 cents) [1][11] Revenue Expectations - The Zacks Consensus Estimate for AEIS's fourth-quarter revenues is currently at $473.6 million, reflecting a 14% growth compared to the same quarter last year [2] - The consensus estimate for earnings is $1.76 per share, indicating a 35.4% increase from the previous year's reported figure [2] Historical Performance - AEIS has consistently exceeded the Zacks Consensus Estimate for earnings over the past four quarters, achieving an average surprise of 18.28% [3] Market Trends and Influences - AEIS shares have increased by 142.2% over the past 12 months, driven by heightened demand in the semiconductor and data center computing markets, particularly due to AI-driven demand from hyperscalers [5] - The company anticipates a modest sequential increase in data center computing revenues, while semiconductor revenues are expected to decline slightly [6] Segment Performance - AEIS expects growth in Industrial & Medical revenues and sequential growth in the Telecom and Networking sectors, supported by strong demand for its high-power density products [7] - AI-related programs are projected to boost revenues in the Telecom and Networking segments [7] Margin Outlook - Gross margin is expected to be impacted by higher tariffs, with an anticipated range of 39% to 40%, including a 100 basis point tariff effect [8] Earnings Model Insights - According to the Zacks model, AEIS currently has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy), indicating a lower likelihood of an earnings beat [9]

Index Changes - S&P Dow Jones Indices will implement changes to the S&P MidCap 400 and S&P SmallCap 600 indices effective January 30 and February 2, 2026 [1][3] - TTM Technologies (TTMI) will be added to the S&P MidCap 400, replacing Civitas Resources (CIVI), which is being acquired by SM Energy [1][3] - Amneal Pharmaceuticals (AMRX) will be added to the S&P SmallCap 600, replacing TTM Technologies [1][3] - Dutch Bros (BROS), Advanced Energy Industries (AEIS), and American Healthcare REIT (AHR) will be added to the S&P MidCap 400 on February 2, 2026, with Comerica (CMA), Cadence Bank (CADE), and PotlatchDeltic (PCH) being removed [1][3] - Apellis Pharmaceuticals (APLS) and LegalZoom.com (LZ) will be added to the S&P SmallCap 600, replacing Advanced Energy Industries and Elme Communities (ELME), respectively [1][3] Acquisition Details - SM Energy is acquiring Civitas Resources, and the deal is expected to close soon, with SM Energy remaining in the S&P SmallCap 600 post-merger [3] - Rayonier is acquiring PotlatchDeltic, and will remain in the S&P MidCap 400 after the merger [3] - Fifth Third Bancorp is acquiring Comerica, which will also remain in the S&P MidCap 400 post-acquisition [3] - Huntington Bancshares is acquiring Cadence Bank, with Cadence being removed from the S&P MidCap 400 [3] - Elme Communities is undergoing liquidation activities, making it no longer suitable for the S&P SmallCap 600 [3]