ASBISc Enterprises (ASB) Q1 2026 earnings summary

Executive summary

• Q1 2026 was the strongest quarter on record, with revenue of $1,268.5m, up 72.3% YoY, and net profit of $36.3m.

• Servers and server blocks became the largest product category, reaching $407.9m, up 232.9% YoY, as AI and data-center demand accelerated.

• Ukraine, Kazakhstan and Taiwan were leading growth markets; Middle East conflict disrupted GCC markets and weighed on consumer sentiment.

Financial highlights

• Revenue was $1,268.5m versus $736.4m in Q1 2025; gross profit rose to $109.4m from $51.6m.

• Operating profit reached $54.5m versus $16.4m, and net profit after tax was $36.3m versus $7.3m.

• EBITDA reached $58.2m versus $18.4m; selling expenses rose 63.6% to $33.6m and administrative expenses rose 44.9% to $21.2m.

• Operating cash outflow narrowed to $20.3m from $58.7m; investing outflow was $17.7m and financing outflow was $44.2m.

• SG&A costs rose 56% YoY, mainly due to higher variable expenses from increased gross profit.

Outlook and guidance

• Management expects positive operating cash flow for full-year 2026 despite Q1 seasonal outflows and higher working-capital use.

• Cloud and AI infrastructure investment is expected to remain a key growth driver; priorities include Africa, Saudi Arabia, Breezy trade-in and own brands.

• Gross-margin performance depends on sustained demand and shortages in AI server components; plans include refining inventory and product mix.