AirTAC International Group (1590) Q2 2026 earnings summary

Executive summary

• Pneumatic demand has entered a recovery cycle expected to last over two to three years; shipments and the order book have exceeded expectations since the start of 2026.

• Annual revenue growth is targeted to exceed industry growth by 10%, driven by new products, business development and brand improvement; China market share target is 35% by 2030.

• 2026 revenue growth is guided above 20% in RMB terms, with an operating margin of ~34%; guidance remains conservative given short lead times, with potential for an upward adjustment next quarter.

Financial highlights

• Q2 2026 revenue was RMB 2.62 billion, up 25% YoY; gross profit was RMB 1.303 billion, up 35%, and net profit was RMB 713 million, up 49%.

• Q2 revenue was NT$12,164,385 thousand vs NT$8,952,809 thousand YoY; operating profit was NT$4,264,747 thousand vs NT$2,731,704 thousand, and net profit was NT$3,310,861 thousand vs NT$2,036,994 thousand.

• H1 revenue was RMB 4.812 billion, up 24% YoY; net profit was RMB 1.298 billion, up 43%, and EPS was TWD 29.91.

• H1 revenue was NT$22,177,887 thousand vs NT$17,048,892 thousand; net profit was NT$5,981,787 thousand vs NT$3,972,646 thousand. Basic EPS was NT$29.91 vs NT$19.86.

• Q2 gross margin was 49.7%, operating margin 35.1% and net margin 27.2%; disposal loss of RMB 27 million from old factory demolition was offset by subsidy and other non-operating items.

Outlook and guidance

• Double-digit revenue growth is expected in electronics, battery, auto and traditional sectors in 2026 and 2027.

• Pneumatic industry growth is expected to be mid- to high-single digit in 2026; revenue growth is targeted to exceed industry growth by 10%.

• 3Q revenue may decline mid- to high-single digits QoQ due to seasonality, while YoY growth is expected to remain strong.