Advantech Co Ltd
TWSE:2395
Advantech Co Ltd
Advantech Co., Ltd., a visionary in the realm of intelligent systems and embedded platforms, has crafted a narrative of innovation and adaptation within the burgeoning tech industry. Founded in Taipei in 1983, the company has evolved from a local venture into a global powerhouse, weaving technology into the fabric of modern industry. Advantech capitalizes on the Internet of Things (IoT) revolution, offering a comprehensive suite of products and solutions that span from industrial automation and embedded computing to cloud-based services. What sets Advantech apart is its emphasis on integrating hardware and software to create smart city and IoT ecosystems, thereby enabling businesses to streamline operations, enhance efficiency, and ultimately drive growth in an increasingly connected world.
The company's revenue generation pivots around its diverse product offerings, which are designed to address critical infrastructure needs across various sectors. By producing and selling industrial PCs, embedded computing systems, and advanced wireless technology, Advantech supports industries such as healthcare, energy, and transportation in modernizing their operations. Moreover, its partnerships with tech giants like Microsoft and Intel enhance its credibility and reach, enabling collaborative innovation. These alliances, coupled with a robust distribution network, facilitate the penetration of Advantech's solutions into global markets, thus securing its position as a leader in the evolving landscape of industrial IoT and intelligent systems. Through strategic R&D investments and a customer-centric approach, the company continues to refine its offerings, ensuring relevance and resilience amid technological advances and market demands.
Advantech Co., Ltd., a visionary in the realm of intelligent systems and embedded platforms, has crafted a narrative of innovation and adaptation within the burgeoning tech industry. Founded in Taipei in 1983, the company has evolved from a local venture into a global powerhouse, weaving technology into the fabric of modern industry. Advantech capitalizes on the Internet of Things (IoT) revolution, offering a comprehensive suite of products and solutions that span from industrial automation and embedded computing to cloud-based services. What sets Advantech apart is its emphasis on integrating hardware and software to create smart city and IoT ecosystems, thereby enabling businesses to streamline operations, enhance efficiency, and ultimately drive growth in an increasingly connected world.
The company's revenue generation pivots around its diverse product offerings, which are designed to address critical infrastructure needs across various sectors. By producing and selling industrial PCs, embedded computing systems, and advanced wireless technology, Advantech supports industries such as healthcare, energy, and transportation in modernizing their operations. Moreover, its partnerships with tech giants like Microsoft and Intel enhance its credibility and reach, enabling collaborative innovation. These alliances, coupled with a robust distribution network, facilitate the penetration of Advantech's solutions into global markets, thus securing its position as a leader in the evolving landscape of industrial IoT and intelligent systems. Through strategic R&D investments and a customer-centric approach, the company continues to refine its offerings, ensuring relevance and resilience amid technological advances and market demands.
Revenue: Advantech reported Q3 2025 revenue of TWD 17.77 billion, up 19% year-on-year and flat quarter-on-quarter.
Margins: Gross margin for Q3 was 38.9%, slightly below guidance due to increased material costs, especially DDR4 components.
Profitability: Net income for Q3 was TWD 2.77 billion, up 22% year-on-year; operating profit was TWD 2.7 billion, with a 15.2% margin.
Regional Growth: All major regions delivered double-digit year-on-year revenue growth, except North Asia (flat) and Korea (declined 6%).
Edge AI: Edge AI product revenue surged, accounting for 17% of Q3 revenue, up from 9.4% in 2024, with strong growth in automation and service sectors.
Guidance: Q4 2025 revenue expected between USD 550 million and USD 570 million; gross margin between 38% and 40%; operating margin between 15% and 17%.
2026 Outlook: Management targets double-digit organic growth next year, with Edge AI anticipated to exceed 25% of revenue.
Component Supply: Ongoing tight supply and price increases for DDR4 and SSD; price hikes of 4% (boards) and 8% (systems) implemented in October to offset cost pressures.
