ASBISc Enterprises (ASB) Q2 2026 earnings summary

Executive summary

• Q2 and H1 2026 saw record revenues and profits, with H1 revenue at $2,965.2 million and net profit at $80.98 million, reflecting strong year-over-year growth across all regions.

• AI server and server component business became the largest segment, surpassing smartphones, and expansion continued in West Africa and the U.S. retail market, including new Apple distribution rights and Bang & Olufsen stores.

• Recognized as NVIDIA's preferred EMEA partner and Star Performer at the NVIDIA Partner Awards EMEA 2026.

Financial highlights

• Q2 2026 revenue reached $1,696.7 million, up 79% YoY; H1 2026 revenue was $2,965.2 million, up 76% YoY.

• Q2 gross profit was $119.9 million (+89% YoY), with a margin of 7.07%; net income was $44.3 million (+265% YoY); H1 net profit was $80.98 million.

• Operating cash flow reached historic highs, with cash and cash equivalents at $301.4 million at period end.

• SG&A expenses grew modestly despite a 30%+ sequential revenue increase, reflecting operating leverage.

Outlook and guidance

• Management expects continued growth in AI server and component business, with a strong backlog of nearly $900 million.

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

• Revenue and profitability are expected to be higher in the second half due to seasonality, with increased demand during the Christmas and academic periods.

• Plans to continue hefty dividend payments, targeting up to 50% of audited net profit.