Delta Electronics (Thailand) (DELTA) investor relations material

Executive summary

• Q1 2026 revenue reached $1.945 billion (THB 61.38 billion), up 56.2% year-over-year, with profit at $286 million (THB 9,081 million), up 70.7% year-over-year, driven by strong orders, high output, and expanded capacity, especially in data center products amid rising AI demand.

• Gross profit margin improved to 32.2%, and EPS rose to THB 0.73, reflecting operational excellence and strategic investments.

• AI-driven demand and ongoing investment in AI infrastructure and data centers continue to support growth despite geopolitical and energy risks.

• The period included a business combination under common control and the dissolution of two subsidiaries.

Financial highlights

• Record Q1 revenue and profit, with significant year-over-year increases of 56.2% and 70.7%, respectively.

• Gross profit for Q1 2026 was THB 19,466 million (31.7% margin), up 78.1% year-over-year.

• Operating profit reached THB 10,348 million, with net profit at THB 9,081 million, up 65.5% year-over-year.

• Thailand's industrial automation revenue grew 114.3% year-over-year, while energy infrastructure revenue surged 213% year-over-year.

• India business achieved around 20% year-over-year growth in Q1 2026.

Outlook and guidance

• Double-digit revenue growth targeted for the next several years; Q2 2026 outlook remains positive with continued double-digit growth expected year-over-year.

• Gross margin expected to remain healthy, supported by favorable product mix and scale, though subject to cost pressures from raw materials.

• Cautious optimism due to ongoing geopolitical conflicts, inflation, and supply chain risks.

• Dividend payment of Baht 0.60 per share for 2025, totaling Baht 7,484 million, was approved post-period.

• The company expects to complete a business transfer of a subsidiary in 2026 as part of a restructuring plan.