Advanced Energy Industries Inc
NASDAQ:AEIS
Advanced Energy Industries Inc
Advanced Energy Industries Inc., founded in 1981, navigated its niche by honing expertise in power-conversion solutions that drive the world's high-tech industries. Headquartered in Denver, Colorado, the company initially built its reputation by focusing on providing power technologies to semiconductor manufacturers—a market that demands precision and constant innovation. As the years progressed, Advanced Energy leveraged its prowess to expand into other critical sectors including data centers, telecommunications networks, and industrial equipment manufacturing. By developing sophisticated power supplies and sophisticated controls that align with the demands of technologies such as semiconductor fabrication and solar inverters, the company positions itself at the core of modern technological advancement.
Central to Advanced Energy's business model is its ability to adapt and respond to rapidly evolving technological needs. The company's revenue streams primarily rely on selling its power solutions to original equipment manufacturers (OEMs) and enterprises that require high-stability, precise power systems. Whether it's enabling more efficient solar panel installations or supporting the delicate needs of data center operations, Advanced Energy's products are integral to optimizing energy conversion processes. Through a blend of innovation and strategic acquisitions, the company ensures a robust portfolio that balances cutting-edge developments with reliable services, thereby securing its role as a critical supplier to numerous global industries.
Advanced Energy Industries Inc., founded in 1981, navigated its niche by honing expertise in power-conversion solutions that drive the world's high-tech industries. Headquartered in Denver, Colorado, the company initially built its reputation by focusing on providing power technologies to semiconductor manufacturers—a market that demands precision and constant innovation. As the years progressed, Advanced Energy leveraged its prowess to expand into other critical sectors including data centers, telecommunications networks, and industrial equipment manufacturing. By developing sophisticated power supplies and sophisticated controls that align with the demands of technologies such as semiconductor fabrication and solar inverters, the company positions itself at the core of modern technological advancement.
Central to Advanced Energy's business model is its ability to adapt and respond to rapidly evolving technological needs. The company's revenue streams primarily rely on selling its power solutions to original equipment manufacturers (OEMs) and enterprises that require high-stability, precise power systems. Whether it's enabling more efficient solar panel installations or supporting the delicate needs of data center operations, Advanced Energy's products are integral to optimizing energy conversion processes. Through a blend of innovation and strategic acquisitions, the company ensures a robust portfolio that balances cutting-edge developments with reliable services, thereby securing its role as a critical supplier to numerous global industries.
Strong Beat: Advanced Energy delivered Q3 revenue and EPS above the high end of guidance, driven by record data center revenue which more than doubled year-over-year.
Margin Expansion: Gross margin improved to 39.1%, up 280 basis points YoY and 100 bps QoQ, aided by cost savings from the China factory closure and better factory loading.
2025 Outlook Raised: Management increased full-year revenue growth guidance for 2025 from 17% to 20%, with data center revenue now expected to more than double versus 2024.
Data Center Momentum: AI-driven demand and new program wins are fueling strong growth; data center revenue is projected to rise another 25% to 30% in 2026.
Manufacturing Update: The new Thailand factory is ready and expected to support over $1 billion in incremental annual revenue once production ramps up.
Semiconductor Positioning: While Q3 semi revenue was flat YoY and down sequentially, management remains positive about growth in 2026, citing strong new product wins.
Operating Leverage: Operating margin rose to 16.8% of sales, the highest since 2022, and both operating and free cash flow more than doubled YoY.
Guidance Q4: Q4 revenue is expected at approximately $470 million; gross margin is guided to 39–40%; non-GAAP EPS expected at $1.75 plus or minus $0.25.
