Trio-Tech International (TRT) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue rose 28.6% YoY to $19,949; operating income increased to $1,254 from $46, and net income was $846 versus $165.

• SBS growth and margin gains led results; IE revenue was nearly flat while its gross margin declined.

• Operating cash use was $3,295, primarily reflecting higher inventory and receivables; cash fell to $18,541 from $21,428 at June 30.

Financial highlights

• Revenue was $19,949 versus $15,514 YoY and $14.9M in Q4 FY2026; gross profit rose to $4,116 from $2,585 and gross margin to 20.6% from 16.7%.

• Operating expenses increased to $2,862 from $2,539; operating income rose to $1,254 from $46.

• Net income attributable to common shareholders was $846 versus $77; basic EPS was $0.08 and diluted EPS $0.07, versus $0.01 for both.

• Income tax expense was $350 versus $64; the continuing-operations effective tax rate was 29.3% versus 28.2%.

• Total assets were $68,013 at September 30 versus $60,687 at June 30; total liabilities were $23,564 versus $17,672.

Outlook and guidance

• September 30 backlog was $28.1M, including $22.4M SBS backlog ($12.1M hard, $10.3M soft) and $5.7M IE hard backlog; total was $24.2M at June 30.

• IE distribution supply constraints may persist through Q2 FY2027; distribution backlog growth supports expected YoY revenue growth, but shortages delay fulfillment.

• Management expects expanded-facility testing volumes to increase sequentially in Q2; inventory purchases and advance payments are expected to keep working-capital needs elevated.

• SBS gross margin is expected to moderate as AI testing services become a larger revenue share; mix and capacity utilization will affect future margins.

• Remaining performance obligations were $4,683; 66.6% is expected to be recognized within two years, with the balance over three to five years.