AirTAC International Group (1590) Q2 2026 earnings summary

Executive summary

• Pneumatic demand has entered a recovery cycle expected to last over two to three years, with shipments and order book exceeding expectations since the start of the year.

• Annual revenue growth is targeted to be 10% higher than industry growth, driven by new products, business development, and brand improvement.

• Market share in China is targeted at 35% by 2030, with potential to exceed this after 2030.

Financial highlights

• 2Q 2026 consolidated revenue: RMB 2.62 billion, up 25% year-over-year; gross profit: RMB 1.303 billion, up 35% year-over-year; gross margin: 49.7%.

• Operating income: RMB 918 million, up 43% year-over-year; operating margin: 35.1%.

• Net profit: RMB 713 million, up 49% year-over-year; net margin: 27.2%; EPS: TWD 16.55.

• 1H 2026 revenue: RMB 4.812 billion, up 24% year-over-year; net profit: RMB 1.298 billion, up 43% year-over-year; EPS: TWD 29.91.

Outlook and guidance

• Revenue growth for 2026 is guided to be over 20% in RMB terms, with OP margin around 34%, higher than previous guidance.

• Double-digit revenue growth expected in electronics, battery, auto, and traditional sectors for 2026 and 2027.

• Guidance remains conservative due to short lead times, with potential upward adjustment next quarter.