Delta Electronics (Thailand) (DELTA) investor relations material

Executive summary

• Q2 2026 revenue reached $2,011 million, up 50.7% year-over-year and 3.4% quarter-over-quarter, driven by Power Electronics and ICT infrastructure solutions.

• Net profit was $186 million, a 33.4% year-over-year increase but down 35% sequentially due to margin pressure from raw material shortages.

• AI momentum and demand for data center and computer infrastructure remained strong, offsetting some macroeconomic headwinds.

• Geopolitical instability and inflation pressured energy and logistics costs, with raw material shortages disrupting shipments and margins.

• For the six months ended 30 June 2026, revenue was THB 126,577 million and net profit THB 15,155.8 million, both up sharply year-over-year.

Financial highlights

• Q2 2026 revenue: $2,011 million (+50.7% YoY, +3.4% QoQ); Q2'26 sales revenue: THB 65.2 billion (+46.5% YoY); 1H'26 revenue: THB 126.6 billion (+45.1% YoY).

• Q2'26 gross profit: THB 17.5 billion (26.8% margin), up 57.2% YoY; 1H'26 gross profit: THB 36.9 billion (29.2% margin), up 67.6% YoY.

• Q2'26 net profit: THB 6.07 billion (9.3% margin), up 31.3% YoY; 1H'26 net profit: THB 15.16 billion (12.0% margin), up 49.8% YoY.

• R&D expenses increased by 88% YoY, now at 3.1% of operating revenue.

• Dividend of THB 0.60 per share (THB 7,484 million total) was paid for 2025.

Outlook and guidance

• Double-digit revenue growth targeted for 2026, with a strong order pipeline in AI and data center segments.

• Margin pressure from raw material costs expected to ease in Q3, with price negotiations in Q4.

• Inventory provisions expected to improve in Q3 or early Q4.

• Ongoing expansion in India and the Philippines, with additional investments to support production and working capital.

• The Group is evaluating the impact of TFRS 18, effective 2028, on future financial statements.