TECO Electric & Machinery (1504) investor relations material

Executive summary

• Q3 2026 revenue rose 16.6% YoY and 2.1% QoQ to NT$16,949 million; operating margin fell to 8.8% as gross margin and operating expenses pressured profitability.

• 9M26 revenue increased 9.2% YoY to NT$47,785 million, while net income grew 30.37% to NT$5,834 million and EPS rose 20.2% to NT$2.38.

Financial highlights

• Q3 gross profit was NT$3,898 million, up 9.73% YoY; operating profit was NT$1,487 million, down 8.95%, and net income was NT$1,884 million, up 11.42%.

• Q3 EPS was NT$0.75, flat YoY and down 33.04% QoQ; lower operating profit and a decrease in FVTPL financial-asset valuation contributed to the QoQ decline.

• 9M26 operating profit increased 2.73% YoY to NT$4,413 million; income before tax rose 20.87% to NT$6,921 million.

• Q3 gross margin was 23.0%, down 1.4 ppts YoY and 2.1 ppts QoQ; operating margin was 8.8%, down 2.4 ppts YoY and 1.7 ppts QoQ.

Outlook and guidance

• 4Q26 revenue outlook: Green Mechatronic Solution and Power & Energy up YoY and QoQ; HVAC Technologies down YoY and QoQ; Energy & System Automation up YoY and down QoQ.

• Company-wide gross margin outlook was indicated as unchanged YoY and QoQ.

• AIDC order intake is projected to exceed NT$10 billion in 2026, with 80% secured by end-October; MDC operational verification is expected in Q4.

• The Japan modular data center’s first phase is planned for 6.4 MW completion in 2027, with a targeted nine-month delivery timeline; initial-phase operational capacity project target is 350 MW.