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Advanced Energy Industries (AEIS) FY2025 results: revenue $1.8 billion, up 21.4% on the year

Advanced Energy Industries Inc. (AEIS) reported revenue of $1.8 billion for fiscal 2025, the year ended 31 December 2025, up 21.4% on the year before. Net income was $148 million, up 173.7%, and diluted earnings per share $3.84. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2026.

Revenue
$1.8 billion
+21.4% on the year
FY2018FY2025
Operating margin
9.3%
2.5% a year earlier
FY2018FY2025
Net income
$148 million
+173.7% on the year
FY2018FY2025
Diluted EPS
$3.84
+168.5% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 3 new.

  • Fourth quarter revenue at high end: Fourth quarter 2025 revenue was $489.4 million, up from $463.3 million in the third quarter and $415.4 million a year earlier. Prior guidance was $470 million plus or minus $20 million.
  • Full-year revenue up 21%: Revenue for 2025 was $1.80 billion, compared with $1.48 billion in 2024.
  • Data Center Computing revenue doubled: Data Center Computing revenue was $587.3 million for 2025, against $284.2 million in 2024. Fourth quarter revenue was $177.9 million, against $171.6 million in the third quarter.
  • Margins improved on operational work: Management attributed improved gross and operating margins to its diversification strategy and operational initiatives. GAAP gross margin was 37.7% for 2025, against 35.7% in 2024.
  • Demand seen strengthening into 2026: Management said demand across its markets is strengthening entering 2026.
Read the Q4 FY2025 earnings call summary

From this 10-K

Advanced Energy designs, makes, sells and services precision power products. They take the raw electrical power coming from the utility or the building and convert it into controllable power that complex equipment can use, from semiconductor tools to AI servers. The company was incorporated in Colorado in 1981 and has its executive offices in Denver.

Advanced Energy Industries Inc., the 10-K for 2025

Advanced Energy designs, makes, sells and services precision power products. They take the raw electrical power coming from the utility or the building and convert it into controllable power that complex equipment can use, from semiconductor tools to AI servers. The company was incorporated in Colorado in 1981 and has its executive offices in Denver.

What it makes

The company operates as a single segment of power electronics conversion products. Its plasma power products drive the plasma processes used in making semiconductors and thin films, such as dry etch and deposition. A wider range of high and low voltage power products goes into data center computing, industrial production, medical and life science equipment, aerospace and defense, networking and telecommunications. It also makes sensing, control and instrumentation products, mainly for measuring and calibrating power and temperature, and its service centers repair, calibrate, upgrade and refurbish its products and sell used equipment.

Four markets

Sales are grouped into four markets. In semiconductor equipment, its products go into dry etch and strip, deposition, ion implant, inspection and metrology, thermal, epitaxy, and back-end test and packaging. In data center computing, its products are designed into server and storage systems and used by cloud service providers and their partners in custom server racks and power shelves; the filing describes the power needs of AI processors and racks as the force behind demand there. Industrial and medical covers advanced material fabrication, medical devices, life science, test and measurement equipment, robotics, defense, aerospace and large-scale lighting. Telecom and networking takes application-specific power conversion products for makers of wireless infrastructure and computer networking equipment.

Customers and competitors

Products are sold worldwide to equipment makers, through distributors and directly to end users. Sales are concentrated: in 2025 three customers took 23%, 19% and 12% of the year's sales. Direct sales operations are mainly in the United States, Asia and Europe, and customer service centers run worldwide. The filing names competitors by market, among them COMET, Daihen, MKS Instruments and TRUMPF Hüttinger in semiconductor equipment, Delta Electronics, Flex and Lite-On in data center computing, and MEAN WELL, TDK-Lambda and XP Power in industrial and medical.

Where it is made

Most manufacturing is in large factories in the Philippines, Malaysia and Mexico, with limited specialty manufacturing in the U.S., the United Kingdom and Europe. The company is consolidating its plants. Manufacturing at Zhongshan, China ceased during the second quarter of 2025, capacity was expanded in the Philippines and at Mexicali during the year, and work continued on a new factory in Thailand. Parts are often made to the company's own specifications by many suppliers, including contract manufacturers, and some key parts come from a sole supplier or a small group of them.

People

The company has approximately 13,000 employees in the Asia-Pacific region, Europe and North America. They are not represented by unions, apart from statutory organization rights for employees in China, Germany and Mexico.

From Advanced Energy's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 13 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue1,7991,4821,656+21.4%
Cost of revenue1,1219531,063+17.7%
Gross profit677529592+28.0%
Gross margin37.7%35.7%35.8%
Research and development232212202+9.7%
Selling, general and administrative242225221+8.0%
Operating income16836.6114+358.9%
Operating margin9.3%2.5%6.9%
Interest expense16.725.116.6-33.5%
Pre-tax income16952.4122+222.1%
Income tax19.4-3.9-8.3
Effective tax rate11.5%-7.4%-6.8%
Net income14854.2128+173.7%
Net margin8.2%3.7%7.7%
Diluted EPS$3.84$1.43$3.40+168.5%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow233131209+78.4%
Capital expenditure10756.861.0+89.1%
Free cash flow12674.0148+70.2%
Free cash flow margin7.0%5.0%8.9%
Cash from investing-110-73.5-64.8
Cash from financing-56.1-377446
Depreciation and amortisation62.068.566.5-9.4%
Share-based compensation55.745.931.0+21.2%
Buybacks30.21.840.0+1,577.8%
Dividends paid15.615.415.2+1.3%
Dividend per share$0.10$0.10$0.100.0%
Diluted shares, weighted39m38m38m+2.0%
Shares outstanding at period end38m38m37m+0.2%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity1,3631,2031,144+13.3%
Debt568565916+0.5%
Operating lease liabilities95.789.289.3+7.3%
Other liabilities520405408+28.4%
Total liabilities and equity2,5462,2622,557+12.6%
Fixed assets273186168+47.0%
Goodwill301296284+1.6%
Intangible assets118139161-15.6%
Cash and equivalents7917221,045+9.6%
Receivables325265282+22.6%
Inventory411360336+14.1%
Other assets327293281+11.5%
Total assets2,5462,2622,557+12.6%

10-K for the year ended 31 December 2025, filed 13 February 2026: the filing.