AEM Holdings (AWX) Q2 2026 earnings summary

Executive summary

• 1H2026 revenue rose 30% year-over-year to S$247.2 million, driven by strong AI/HPC demand and Test Cell Solutions (TCS) growth, with the fabless AI/HPC customer becoming the largest contributor.

• Gross profit margin improved to 33.1%, with profit before tax surging to S$38.2 million (15.5% margin), and net profit reaching S$30.8 million.

• Diluted EPS rose to 9.7 cents, up nearly tenfold year-over-year, and net asset value per share increased to 168.1 Singapore cents at end-June 2026.

• Fourth consecutive quarter of net profit growth and third consecutive quarter of revenue growth.

• Interim dividend of 2.4 cents per share declared, payable 8 September 2026.

Financial highlights

• Revenue for 1H2026 was S$247.2 million, up 30% year-over-year; net profit rose to S$30.8 million, with net profit margin at 12.5%.

• Gross profit: S$81.7 million (up 69%); gross margin: 33.1% (up from 25.4%).

• Profit before tax: S$38.2 million (up 869%), PBT margin: 15.5% (up 13.4 points year-over-year).

• Basic EPS: 9.79 cents (up from 0.98 cents).

• Cash and cash equivalents: S$82.7 million as at 30 June 2026; debt/equity ratio: 0.05x.

Outlook and guidance

• FY2026 revenue guidance raised to S$630M–S$680M, supported by strong order backlog, AI/HPC ramp, and new platform adoption.

• Full-year EPS forecast in the range of 24.5 to 27.5 cents per share.

• AMPS backlog exceeds S$400M, with recurring revenue from configurables and collaterals supporting margin resilience.

• Test equipment sales projected to rise globally, supporting long-term growth for advanced test solutions.

• Management is monitoring customer demand, macroeconomic conditions, and program ramps.