Trio-Tech International (TRT) Q3 2025 earnings summary

Executive summary

• Revenue for the quarter ended March 31, 2025, declined 29.0% year-over-year to $7,384, with both core segments—Semiconductor Back-end Solutions (SBS) and Industrial Electronics (IE)—experiencing significant decreases in sales.

• Net loss attributable to common shareholders was $495 for the quarter, compared to net income of $70 in the prior year; basic and diluted loss per share were $0.12.

• Gross margin improved to 27% from 26% in the prior year, but operating loss widened to $343 from income of $59, driven by the revenue shortfall and fixed cost structure.

• Total assets decreased to $39,959 as of March 31, 2025, from $42,540 at June 30, 2024, reflecting lower receivables, inventories, and property, plant, and equipment.

• A $1.0 million share repurchase program was authorized in May 2025, reflecting confidence in long-term strategy.

Financial highlights

• SBS segment revenue fell 29.5% year-over-year to $5,425, while IE segment revenue dropped 27.6% to $1,950.

• Gross profit in SBS declined by $784 to $1,436, with margin dropping to 26.5%; IE gross profit rose to $548, with margin improving to 28.1% due to favorable product mix.

• Operating expenses decreased 12.1% in general and administrative costs, while selling expenses rose 5.9%.

• Interest expense decreased 41.2% to $10 for the quarter due to lower credit facility utilization.

• Cash and cash equivalents increased to $11,020 as of March 31, 2025, from $10,000 at June 30, 2024.

Outlook and guidance

• Management expects continued revenue pressure in the SBS segment due to ongoing U.S.-China trade tensions and macroeconomic uncertainty, with some offset from growth in Malaysia and Thailand.

• IE segment recovery is anticipated as supply chain delays are resolved in coming quarters.

• The company is focused on cost control, operational flexibility, and exploring new markets and products to mitigate demand volatility.