ADVANCED ENERGY INDUSTRIES (AEIS)

• Advanced Energy (AEIS) reported its Q3 revenue breakdown, with semiconductor equipment at 42% and data center at 37% of total revenue.
• The company anticipates its data center business to double in 2025 and grow 25%-30% in 2026, supported by new capacity in Thailand expected to activate in the second half of 2026.
• AEIS aims for 80% of its revenue from sole source products, up from about 70%, and expects data center margins to approach or exceed the corporate average.
• The company maintains a long-term gross margin target of 43% by 2030, despite a current 100 basis point impact from tariffs, and plans to grow OpEx at 50% of the revenue growth rate.
• AEIS is actively pursuing M&A opportunities, particularly in the industrial medical sector to become the number one player, and for technology tuck-ins.

• Advanced Energy (AEIS) projects its data center business to double in 2025 and grow an additional 25%-30% in 2026. The semiconductor market is also expected to be a growth year in 2026, with new products (eVoS, Everest, NEVX) anticipated to generate $10-$20 million in revenue in 2025.
• The company aims for a long-term gross margin of 43% as it approaches $2.5 billion in organic revenue, up from Q4 guidance of 39%-40%. This improvement is driven by factory optimization, volume leverage (adding 50-60 basis points for every $50 million of additional quarterly revenue), and a favorable product mix.
• AEIS is expanding its manufacturing capabilities with a new 500,000 sq ft factory in Thailand expected to begin operations in the second half of 2026, initially for data center products. The company also targets increasing revenue from sole source products from 70% to 80% to further enhance margins.
• Advanced Energy is actively seeking M&A opportunities, focusing on becoming the number one player in industrial medical and acquiring technology tuck-ins, while maintaining a strong balance sheet with $750 million in cash.

• In Q3, Advanced Energy's revenue breakdown was approximately 42% from semiconductor equipment and 37% from AI data center, with the remainder from industrial, medical, telecom, and networking.
• The company anticipates its data center business to double in 2025 and grow by 25%-30% in 2026, supported by new capacity additions including a new factory in Thailand.
• Margins in the data center segment have improved and are now approaching corporate average, contributing to the company's confidence in achieving a long-term gross margin target of 43% and $2.5 billion in organic revenue by 2030, despite a 100 basis point impact from tariffs.
• Advanced Energy expects $10-$20 million in revenue from new products (eVoS, Everest, NavX) in 2025, with significant acceleration in subsequent years, and sees the industrial medical market recovering with increasing order rates in 2026.

• Advanced Energy (AEIS) is on track to achieve its 2030 target of $3 billion in revenue and $15 in earnings per share potentially earlier than anticipated.
• The data center business is a key growth driver, with over 100% revenue growth in 2024 and a projected 25%-30% growth in 2026 from first-wave hyperscaler customers, supported by expanded production capacity and a 9-month order visibility.
• The semiconductor segment is expected to achieve low teens growth in 2024 and its second-best year ever in 2025, driven by new product platforms and increasing etch/deposition intensity in leading-edge logic and memory.
• After a two-year correction, the Industrial and Medical segment is projected for a growth year in 2026 with a gradual recovery, and M&A is a primary focus to strengthen this market pillar.
• The company has improved gross margins by almost 400 basis points over the last five quarters and is on track to reach its 43% target, leveraging factory consolidation, volume, and future product mix.

• Advanced Energy (AEIS) aims to double its size to $3 billion in revenue and $15 in earnings per share.
• The data center business is experiencing significant growth, with revenue expected to grow over 100% in 2024 and forecasted to grow 25%-30% in 2026, driven by a strategy shift to high-end solutions and engagement with hyperscaler customers.
• The company anticipates a strong second half of 2026 and 2027 for its semiconductor business, driven by new product success (Everest, Evos, NavX) and increasing etch and deposition intensity.
• The industrial and medical segment, which hit its trough in Q1 2025, is expected to see gradual recovery and growth in 2026 and 2027, with M&A being a primary focus for expansion in this fragmented market.
• AEIS is on track to achieve its $3 billion revenue target, potentially earlier than planned, and expects to reach a 43% gross margin through factory consolidation, volume leverage, and new product mix.

• Advanced Energy (AEIS) aims to double its size to $3 billion in revenue and $15 in earnings per share (EPS), with over 70% of current revenue derived from sole-source products.
• The Data Center business is experiencing significant growth, projected to be over 100% in 2024 and 25%-30% in 2026, potentially achieving its 2030 target early. The company has expanded capacity in the Philippines and Mexico, with a new factory in Thailand planned for next year.
• The Semiconductor business anticipates low-teens growth for the full year in 2025, driven by new products, and expects a strong 2026 and 2027.
• The Industrial and Medical segment, after a nearly two-year correction, hit bottom in Q1 2025 and is projected for gradual growth in 2026. AEIS plans to boost this segment through M&A and organic efforts.
• The company is on track for low to mid $6 EPS this year and has improved gross margins by almost 400 basis points over the last five quarters, aiming for 43% gross margin despite tariff and mix headwinds.

• AEIS reported Q3 2025 revenue of $463 million, marking a 24% year-over-year increase, and non-GAAP EPS of $1.74, up 78% year-over-year.
• The company achieved a non-GAAP gross margin of 39.1% and a non-GAAP operating margin of 16.8% in Q3 2025.
• AEIS raised its 2025 revenue growth forecast to 20% year-over-year and now expects Data Center Computing revenue growth to be "more than 2X" for 2025.
• For Q4 2025, the company anticipates revenue to be between $450 million and $490 million, with non-GAAP EPS projected to be between $1.50 and $2.00.

• Advanced Energy (AEIS) reported Q3 2025 revenue of $463 million, a 24% increase year over year, and non-GAAP earnings per share of $1.74, up 78% from last year.
• Data center computing revenue more than doubled year over year to $172 million in Q3 2025, with projected growth of 25% to 30% for 2026.
• The company raised its full-year 2025 total revenue growth outlook to approximately 20% and provided Q4 2025 guidance of approximately $470 million in revenue and $1.75 non-GAAP EPS.
• The new Thailand factory is ready to begin production within months, capable of delivering over $1 billion in incremental yearly revenue, and the company continues to pursue acquisitions in the industrial medical market.

• Advanced Energy Industries, Inc. reported revenue of $463 million for the third quarter ended September 30, 2025, which was above the high end of their guidance.
• GAAP EPS from continuing operations was $1.21 and non-GAAP EPS was $1.74 for Q3 2025, both exceeding the high end of guidance.
• The company's Data Center Computing revenue experienced significant growth, increasing 113% year-over-year and 21% sequentially in Q3 2025.
• Cash flow from continuing operations grew 123% year-over-year to $79 million during the quarter.

The company provided the following guidance for the fourth quarter of 2025:

• Advanced Energy reported third quarter 2025 revenue of $463 million, exceeding the high end of guidance, with Data Center Computing revenue growing 113% year-over-year.
• GAAP EPS from continuing operations was $1.21 and non-GAAP EPS was $1.74 for Q3 2025, both above the high end of guidance.
• Cash flow from continuing operations increased 123% year-over-year to $79 million during the third quarter of 2025.
• For the fourth quarter of 2025, the company expects revenue between $450 million and $490 million, GAAP EPS from continuing operations between $0.87 and $1.37, and non-GAAP EPS between $1.50 and $2.00.