Advanced Energy Industries 2025 Q3 Earnings 410.1% Net Income Surge and 23.8% Revenue Growth

Advanced Energy Industries (AEIS) delivered a strong Q3 2025 performance, surpassing Wall Street expectations with a 410.1% year-over-year net income increase and a 23.8% revenue jump. The company raised its full-year 2025 revenue growth outlook to 20%, driven by record data center computing demand and semiconductor sector strength.

Revenue

The total revenue surged to $463.30 million in Q3 2025, a 23.8% increase from $374.20 million in Q3 2024. Semiconductor Equipment led the growth with $196.60 million, while Data Center Computing saw a remarkable 113% year-over-year increase to $171.60 million. Industrial and Medical revenue reached $71.20 million, and Telecom and Networking contributed $23.90 million, rounding out the diversified portfolio.

Earnings/Net Income

Advanced Energy returned to profitability with EPS of $1.23, reversing a $0.40 loss in Q3 2024. Net income jumped to $46.20 million, a 410.1% positive swing from a $14.90 million loss. This turnaround underscores the company’s operational efficiency and market diversification strategy.

Post-Earnings Price Action Review

Despite robust earnings, Advanced Energy’s stock declined 2.19% in the latest trading day and 4.68% for the week, though it gained 12.19% month-to-date. The post-earnings dip reflects mixed investor sentiment, with short-term volatility contrasting against the company’s long-term growth trajectory. Analysts remain optimistic, citing the raised 2025 guidance and strong data center demand.

CEO Commentary

Steve Kelley highlighted Q3 results exceeding guidance, driven by record data center revenue and semiconductor performance. The company is investing in a $500k sq ft factory in Thailand, targeting $1B incremental revenue, and leveraging cross-portfolio innovations like liquid cooling for data center advancements.

Guidance

CFO Paul Oldham provided Q4 2025 revenue guidance of $470M ±$20M, with full-year growth raised to 20%. Gross margin guidance for Q4 is 39-40%, with a long-term target of 40% excluding tariffs. For 2026, data center revenue growth is projected at 25-30%, while semiconductor demand is expected to accelerate in H2 2026.

Additional News

Advanced Energy’s CEO announced a $500 million Thailand factory expansion, set to generate over $1 billion in incremental revenue. The company also raised its 2025 revenue growth outlook to 20%, reflecting confidence in AI-driven data center demand. Additionally, the Zacks Rank upgraded AEIS to a “Buy” (Rank #2), citing favorable earnings estimate revisions and strong market positioning.

Key Non-Earnings Updates

1. Thailand Factory Expansion: Advanced Energy is investing in a new 500,000 sq ft facility in Thailand to meet surging demand, aiming to deliver over $1 billion in annual revenue.

2. 2025 Guidance Increase: The company raised its full-year revenue growth target to 20%, driven by AI infrastructure adoption and semiconductor sector momentum.

3. Zacks Rank Upgrade: The stock received a “Buy” rating (Zacks Rank #2), reflecting improved earnings expectations and strong operational execution.

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