Advanced Energy Industries (AEIS) investor relations material

Executive summary

• Q2 2026 revenue reached $574.1 million, up 30% year-over-year and above the high end of guidance, driven by strong demand and execution in Semiconductor Equipment and Data Center Computing markets.

• Non-GAAP EPS was $2.74, up 83% year-over-year, with GAAP EPS at $1.29; record operating income of $125 million and operating margin of 21.9%.

• Cash and cash equivalents at quarter end were $1.4 billion, supported by a $1.15 billion convertible note offering and partial redemption of 2028 notes.

• Investments in capacity, inventory, and R&D are enabling the company to meet rising customer demand and maintain technology leadership.

• New Thailand factory to begin production revenue in Q4, expanding total capacity to $5B; ongoing qualification with major data center and semiconductor customers.

Financial highlights

• Q2 2026 revenue: $574.1 million, up 30% year-over-year and 12% sequentially; non-GAAP EPS: $2.74; GAAP EPS: $1.29.

• Gross margin: 41.9% non-GAAP, 41.1% GAAP, up 380 bps year-over-year.

• Operating income: $125 million non-GAAP (21.9% margin); $95.1 million GAAP (16.6% margin).

• Adjusted EBITDA: $137 million, up 84% year-over-year; operating cash flow: $85.6 million.

• Segment revenue: Semiconductor $278.3M (+33% YoY), Data Center $191.5M (+35% YoY), Industrial & Medical $80M (+17% YoY), Telecom & Networking $24.3M (+12% YoY).

Outlook and guidance

• Q3 2026 revenue guidance: $640 million ±$20 million; non-GAAP EPS: $3.00 ±$0.25; GAAP EPS: $2.38 ±$0.25.

• Full-year 2026 revenue growth target raised to low-to-mid 30% range; EPS expected to grow faster than revenue.

• Semiconductor H2 2026 revenue expected up nearly 50% YoY; Data Center full-year revenue growth outlook raised to at least 50%.

• CapEx for 2026 projected at $180M-$195M, up to support accelerated growth; targeting ~$5B in capacity by 2028.

• Free cash flow for 2026 targeted at or above 2025 levels despite higher capital spending.