Advanced Energy (AEIS) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, May 5, 2026 astatine 8:17 AM CDT 39 min read

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Date

Monday, May 4, 2026 astatine 4:30 p.m. ET

Call participants

• Chief Executive Officer — Stephen Kelley

• Chief Financial Officer — Paul Oldham

• Chief Operating Officer — Yeuk-Fai Mok

Full Conference Call Transcript

Stephen Kelley: Thanks, Edwin. Good afternoon, everyone and acknowledgment for joining the call. First 4th gross came successful supra the midpoint of guidance, driven by grounds information halfway revenue. Total gross accrued 26% year-on-year and gross borderline exceeded 40%. In the 2nd quarter, we expect to present grounds revenue, mostly owed to spot successful semiconductor. Looking into the 2nd fractional of 2026, we spot accrued request successful each of our markets. We are peculiarly good positioned to payment from AI-related capableness investments successful information centers and wafer fabs. We are besides seeing dependable betterment successful the concern aesculapian marketplace arsenic evidenced by a 14% sequential summation successful bookings, and a increasing backlog. We delivered implicit 40% gross borderline successful the archetypal quarter.

The culmination of a multiyear effort to amended our manufacturing and ratio and merchandise differentiation. Our investments successful enactment exertion and world-class manufacturing are paying off. Looking forward, we judge that we tin further summation gross borderline arsenic high-value products ramped to measurement and manufacturing ratio continues to improve. Given our advancement implicit the past fewer years, we are assured that we tin execute the longer-term extremity of greater than 43% gross margin. Given the beardown request environment, we are executing our capableness enlargement plans successful Malaysia, the Philippines and Mexico. Moving forward, we volition absorption connected gathering retired capableness astatine our caller 500,000 quadrate ft installation successful Thailand.

Qualification builds for semiconductor and information halfway products are kicking disconnected this quarter, with archetypal accumulation slated for precocious '26 oregon aboriginal '27. Exiting the year, we expect to person implicit $2.5 cardinal successful gross generating capacity. The summation of Thailand volition bring full capableness to implicit $3.5 cardinal erstwhile it is afloat built out. Now fto maine supply immoderate colour connected each of our markets. Semiconductor gross accrued quarter-over-quarter and was flattish year-on-year. In the archetypal quarter, lawsuit forecast strengthened considerably which we judge volition thrust grounds show successful 2026 and continued maturation successful 2027. We are delighted by the wide lawsuit acceptance of our eVoS, eVerest and NavX plasma powerfulness technologies.

These technologies alteration important improvements successful throughput and output astatine the starring borderline and are expected to thrust marketplace stock gains into the adjacent decade. In addition, we are seeing wider adoption of these technologies crossed aggregate generations of processes, and instrumentality types. We are besides benefiting from an uptick successful request for our strategy powerfulness products, mostly owed to caller wins successful trial and wafer fab instrumentality applications. In information halfway computing, we delivered grounds gross successful the archetypal quarter. Overall request successful the information halfway marketplace remains precise strong. Based connected lawsuit forecast, we expect 2nd fractional gross to beryllium stronger than archetypal half. We proceed to marque coagulated advancement processing next-generation technology, including 800-volt solutions.