ASBISc Enterprises (ASB) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 78.7% YoY to $1,696.7M, with record net profit of $44.3M; H1 revenue grew 75.9% to $2,965.2M and net profit reached $80.6M.

• Q2 was described as the most profitable quarter in operating history; monthly revenue exceeded $600M in both May and June for the first time.

• Servers and server blocks became the largest product category, surpassing smartphones, as AI infrastructure demand accelerated growth.

• Expanded in Africa and the U.S. through Apple distribution agreements and Bang & Olufsen stores; recognized as NVIDIA EMEA Star Performer.

Financial highlights

• Q2 gross profit rose 88.7% YoY to $119.9M; EBIT more than doubled to $62.6M and EBITDA increased 156% to $66.4M.

• H1 gross profit reached $229.3M, up from $115.1M; EBITDA rose to $124.6M from $44.4M.

• Q2 net profit after tax was $44.3M versus $12.1M; H1 net profit after tax was $80.6M versus $19.4M.

• H1 operating cash flow was $77.3M versus an outflow of $58.8M; cash from operating activities improved by over $136M YoY.

• SG&A costs increased more slowly than revenue and gross profit, with SG&A as a percentage of revenue declining YoY.

Outlook and guidance

• 2026 ambition is to deliver the highest-ever profitability to shareholders; AI data-center infrastructure is viewed as a growth opportunity in 2026 and beyond.

• AI server and component backlog was nearly $900M; realization remains subject to supplier capacity and project timing.

• Gross margin is expected to remain above 7%, with potential H2 improvement from seasonality and Apple product launches.

• Africa and U.S. expansion is expected to contribute gradually, with material impact anticipated from next year.