olivLaw · US equity research
Advanced Energy Industries, Inc. AEIS
Electronic Components, NEC · SIC 3679 · Vertical: Electronic Components, NEC (SIC 3679)
Advanced Energy designs and manufactures precision power conversion, measurement and control solutions for demanding equipment, with a large share of sales to semiconductor and data center customers. Revenue grew strongly in fiscal 2025 on AI-related demand, and second quarter 2026 results exceeded guidance, which keeps its trajectory under close watch. Growth has been driven mainly by the data center market, which more than doubled, while the industrial and medical market declined.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Advanced Energy Industries, Inc. (AEIS) stock was 211.56 USD (−11.15% on the day), with market capitalisation 8.6 bn USD, P/E 30.4 on diluted EPS of 6.95 USD over the last 12 months, dividend yield 0.05%, beta 2.14, 52-week range 188.88–389.05 USD. Latest reported quarter (Q3 2026): revenue of 696.4 m USD (+50.3% YoY), net income of 115.6 m USD (+150.2% YoY), diluted EPS 2.79 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 37.1
- weak (30–45)
- Bollinger (20, 2)
- 196.78 – 289.88
- in the lower half of the band · %B 0.16 · band width 38.3%
- SMA 50 / 200
- 263.86 / 308.27
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -14.24 / -13.17
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −28.8% | −1.1% | −27.7 pp | — |
| 3 months | −35.7% | −0.5% | −35.3 pp | — |
| 6 months | −41.4% | +4.4% | −45.8 pp | — |
| Year to date | +1.0% | +12.3% | −11.3 pp | — |
| 1 year | +8.5% | +13.5% | −5.1 pp | +14.7% |
| 3 years | +130.6% | +76.4% | +54.2 pp | +31.5% |
| 5 years | +122.3% | +63.7% | +58.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 415.4 m | 404.6 m | 441.5 m | 463.3 m | 489.4 m | 511.0 m | 574.1 m | 696.4 m |
| Cost of revenue | 260.8 m | 254.1 m | 278.1 m | 288.9 m | 300.3 m | 310.1 m | 338.0 m | 407.3 m |
| Gross profit | 154.6 m | 150.5 m | 163.4 m | 174.4 m | 189.1 m | 200.9 m | 236.1 m | 289.1 m |
| Research & development | 56.1 m | 54.2 m | 59.0 m | 59.1 m | 60.1 m | 62.4 m | 65.0 m | 67.1 m |
| SG&A | 58.2 m | 59.0 m | 60.2 m | 59.8 m | 63.4 m | 62.3 m | 69.4 m | 73.8 m |
| Operating income | 33.8 m | 30.6 m | 31.6 m | 49.2 m | 56.6 m | 68.3 m | 95.1 m | 143.2 m |
| Depreciation & amortisation | 16.7 m | 16.1 m | 15.6 m ≈ | 15.1 m ≈ | 15.2 m | 15.8 m | 16.5 m ≈ | 17.2 m ≈ |
| Interest expense | 4.6 m | 4.2 m | 4.2 m | 4.2 m | 4.1 m | 4.1 m | 3.3 m | 3.0 m |
| Pre-tax income | 40.5 m | 29.9 m | 29.3 m | 52.3 m | 57.2 m | 70.0 m | 66.6 m | 151.9 m |
| Income tax | -8.5 m | 5.0 m | 3.8 m | 5.9 m | 4.7 m | 2.7 m | 12.1 m | 36.1 m |
| Net income | 48.9 m | 24.7 m | 25.2 m | 46.2 m | 52.3 m | 66.8 m | 54.1 m | 115.6 m |
| Diluted EPS | 1.29 ≈ | 0.65 | 0.67 | 1.20 | 1.30 ≈ | 1.58 | 1.28 | 2.79 |
| Operating cash flow | 82.6 m | 28.9 m | 45.2 m ≈ | 78.7 m ≈ | 80.5 m | -6.0 m | 85.0 m ≈ | 65.1 m ≈ |
| Capex | 12.8 m | 13.9 m | 28.1 m ≈ | 27.9 m ≈ | 37.5 m | 36.6 m | 49.5 m ≈ | 31.1 m ≈ |
| Dividends paid | 3.8 m | 3.8 m | 3.9 m ≈ | 3.9 m ≈ | 4.0 m | 3.8 m | 4.1 m ≈ | 4.1 m ≈ |
| Share repurchases | 0 | 500.0 k | 23.2 m ≈ | 0 ≈ | 6.5 m | 500.0 k | 0 ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 65 percentile of its own 40-quarter history (min 11.5, median 26.4, max 93.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 718.9 m | 788.9 m | 1.4 bn | 1.5 bn | 1.8 bn | 1.7 bn | 1.5 bn | 1.8 bn |
| Revenue YoY | +58.7% | +9.7% | +79.5% | +2.8% | +26.8% | −10.3% | −10.5% | +21.4% |
| Net income | 147.0 m | 64.9 m | 134.7 m | 134.7 m | 199.7 m | 128.3 m | 54.2 m | 148.4 m |
| Net income YoY | +6.6% | −55.8% | +107.4% | +0.0% | +48.2% | −35.7% | −57.7% | +173.7% |
| Diluted EPS | 3.74 | 1.69 | 3.50 | 3.51 | 5.29 | 3.40 | 1.43 | 3.84 |
| Diluted EPS YoY | +9.0% | −54.8% | +107.1% | +0.3% | +50.7% | −35.7% | −57.9% | +168.5% |
| net % | 20.5% | 8.2% | 9.5% | 9.3% | 10.8% | 7.7% | 3.7% | 8.2% |
| Free cash flow | 130.9 m | 23.2 m | 164.9 m | 111.4 m | 124.7 m | 147.9 m | 74.0 m | 125.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 791.2 m USD
- Financial debt
- 1.1 bn USD
- Net debt
- 343.8 m USD
- Equity
- 1.4 bn USD
- Total assets
- 2.5 bn USD
- Debt / equity
- 0.83x
- Current ratio
- 1.59x
- ROE
- 11.6%
- ROA
- 6.2%
- FCF margin
- 7.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.4 bn | 1.5 bn | 1.8 bn | 1.7 bn | 1.5 bn | 1.8 bn | SEC (XBRL)· 13 Feb 2026verified |
| Cost of revenue | 874.0 m | 923.6 m | 1.2 bn | 1.1 bn | 952.7 m | 1.1 bn | SEC (XBRL)· 13 Feb 2026verified |
| Gross profit | 541.9 m | 532.3 m | 675.5 m | 592.4 m | 529.3 m | 677.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Research & development | 144.0 m | 161.8 m | 191.0 m | 202.4 m | 211.8 m | 232.4 m | SEC (XBRL)· 13 Feb 2026verified |
| SG&A | 188.6 m | 192.0 m | 218.5 m | 221.0 m | 224.6 m | 242.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Operating income | 176.0 m | 151.7 m | 233.1 m | 113.7 m | 36.6 m | 168.0 m | SEC (XBRL)· 13 Feb 2026verified |
| Depreciation & amortisation | 47.8 m | 52.9 m | 60.3 m | 66.5 m | 68.5 m | 62.0 m | SEC (XBRL)· 13 Feb 2026verified |
| EBITDA | 223.8 m ≈ | 204.6 m ≈ | 293.4 m ≈ | 180.2 m ≈ | 105.1 m ≈ | 230.0 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Interest expense | 5.8 m | 3.6 m | 7.3 m | 16.6 m | 25.1 m | 16.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Pre-tax income | 158.1 m | 148.7 m | 241.7 m | 122.5 m | 52.4 m | 168.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Income tax | 23.0 m | 14.0 m | 39.9 m | -8.3 m | -3.9 m | 19.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Net income | 134.7 m | 134.7 m | 199.7 m | 128.3 m | 54.2 m | 148.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Diluted EPS | 3.50 | 3.51 | 5.29 | 3.40 | 1.43 | 3.84 | SEC (XBRL)· 13 Feb 2026verified |
| Weighted average diluted shares | 38.5 m | 38.4 m | 37.7 m | 37.8 m | 37.8 m | 38.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividend per share | — | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 480.4 m | 544.4 m | 458.8 m | 1.0 bn | 722.1 m | 791.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Receivables | — | — | 300.7 m | 282.4 m | 265.3 m | 325.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Inventories | 221.3 m | 338.4 m | 376.0 m | 336.1 m | 360.4 m | 411.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Current assets | 980.2 m | 1.2 bn | 1.2 bn | 1.7 bn | 1.4 bn | 1.6 bn | SEC (XBRL)· 13 Feb 2026verified |
| Property, plant & equipment, net | 114.7 m | 114.8 m | 148.5 m | 167.7 m | 185.6 m | 272.8 m | SEC (XBRL)· 13 Feb 2026verified |
| Goodwill | 210.0 m | 212.2 m | 281.4 m | 283.8 m | 296.0 m | 300.8 m | SEC (XBRL)· 13 Feb 2026verified |
| Intangibles (excl. goodwill) | 168.9 m | 159.4 m | 189.5 m | 161.5 m | 139.4 m | 117.7 m | SEC (XBRL)· 13 Feb 2026verified |
| Total assets | 1.6 bn | 1.8 bn | 2.0 bn | 2.6 bn | 2.3 bn | 2.5 bn | SEC (XBRL)· 13 Feb 2026verified |
| Accounts payable | 125.2 m | 193.7 m | 170.5 m | 141.9 m | 143.5 m | 224.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Short-term debt | 17.5 m | 20.0 m | 20.0 m | 20.0 m | — | 567.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Long-term debt | 304.5 m | 372.7 m | 353.3 m | 895.7 m | 564.7 m | 567.5 m | SEC (XBRL)· 13 Feb 2026verified |
| Current liabilities | 296.4 m | 370.2 m | 393.0 m | 335.8 m | 314.3 m | 991.2 m | SEC (XBRL)· 13 Feb 2026verified |
| Total liabilities | 832.3 m | 945.8 m | 925.9 m | 1.4 bn | 1.1 bn | 1.2 bn | SEC (XBRL)· 13 Feb 2026verified |
| Equity | 815.3 m | 871.5 m | 1.1 bn | 1.1 bn | 1.2 bn | 1.4 bn † | SEC (XBRL)· 13 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 201.2 m | 140.2 m | 183.6 m | 208.9 m | 130.8 m | 233.3 m | SEC (XBRL)· 13 Feb 2026verified |
| Capex | 36.4 m | 28.8 m | 58.9 m | 61.0 m | 56.8 m | 107.4 m | SEC (XBRL)· 13 Feb 2026verified |
| Free cash flow | 164.9 m ≈ | 111.4 m ≈ | 124.7 m ≈ | 147.9 m ≈ | 74.0 m ≈ | 125.9 m ≈ | SEC (XBRL)· 13 Feb 2026derived |
| Investing cash flow | -42.8 m | -47.3 m | -208.3 m | -64.7 m | -73.6 m | -109.8 m | SEC (XBRL)· 13 Feb 2026verified |
| Financing cash flow | -29.6 m | -25.4 m | -61.9 m | 445.7 m | -377.1 m | -56.1 m | SEC (XBRL)· 13 Feb 2026verified |
| Dividends paid | — | 15.4 m | 15.2 m | 15.2 m | 15.4 m | 15.6 m | SEC (XBRL)· 13 Feb 2026verified |
| Share repurchases | 11.6 m | 78.1 m | 26.6 m | 40.0 m | 1.8 m | 30.2 m | SEC (XBRL)· 13 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 36 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 8.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation36
- Returns38
- Quality21
- Balance sheet100
- Growth19
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 29.15 – 388.34 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)29.15 – 43.64 (Mid 34.67)WACC 8.8% · starting FCFF 82.1 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/Sales67.55 – 388.34 (Mid 205.23)6 companies used · median multiple 3.6x · quartiles 1.1x – 6.9xMVIS, NSYS, OST, PI, VREX, VRT
- Peers: EV/EBITDAunavailable · not enough peers
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 36/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 40.3% | 1 (on a fixed band) | 11% |
| EBIT margin · Quality | 16.0% | 55 (vs peers) | 9% |
| FCF margin · Quality | 3.1% | 12 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | -0.8% | 0 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 21.4% | 58 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | -0.4x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 3.6x | 100 (on a fixed band) | 6% |
| EV/Sales · Valuation | 3.7x | 50 (vs peers) | 17% |
| FCF yield · Valuation | 0.8% | 16 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 0.3% | 38 (on a fixed band) | 4% |
Score groups
- Balance sheet100/100 · 2/2 factors with a value
- Growth19/100 · 2/2 factors with a value
- Quality21/100 · 3/3 factors with a value
- Returns38/100 · 1/1 factors with a value
- Valuation36/100 · 2/2 factors with a value
Memo
ADVANCED ENERGY INDUSTRIES, INC. (AEIS). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.8 bn USD in 2025; YoY growth 21.4%; net margin 12.7%; ROE 19.9%; net debt/EBITDA -0.4x.
The estimated value range is 48.35–215.99 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 119.95 USD, the price of 211.56 USD leaves a potential of -43.3% (value / price − 1) and a margin of safety of -76.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 36/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net debt / EBITDA: -0.4x
- Current ratio: 3.6x
What contradicts it
- Gross margin: 40.3%
- FCF margin: 3.1%
- Revenue CAGR 3Y: -0.8%
- FCF yield: 0.8%
- The valuation methods diverge
Versus the vertical median
Electronic Components, NEC (SIC 3679) · same industry (4-digit SIC) · compared with 12 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| VRTVertiv Holdings Co | 79.1 bn | 38.4 | 46.6% | 16.0% | +27.7% | +14% / +371% |
| AEISAdvanced Energy Industries, Inc. | 8.6 bn | 30.4 | 19.9% | 12.7% | +21.4% | +8% / +131% |
| PIImpinj, Inc. | 5.6 bn | — | -3.8% | -2.5% | −1.4% | +5% / +116% |
| VICRVicor Corporation | 1.9 bn | 41.7 | 23.5% | 32.2% | +26.1% | +78% / +335% |
| VREXVarex Imaging Corp | 779.3 m | 35.4 | 4.6% | 2.6% | +4.1% | +60% / −2% |
| MPTIM-tron Industries, Inc. | 277.8 m | 23.5 | 12.4% | 16.3% | +11.0% | +24% / +85% |
| ESPEspey Mfg. & Electronics Corp. | 152.7 m | 12.9 | 20.1% | 24.2% | +4.9% | +29% / +197% |
| LGLLgl Group Inc | 84.6 m | — | -0.6% | -5.0% | −2.9% | +15% / +38% |
| MVISMicroVision, Inc. | 42.2 m | — | -197.8% | -2,230.6% | −74.3% | −91% / −97% |
| NSYSNortech Systems Incorporated | 31.2 m | 29.4 | 3.0% | 0.6% | +723.6% | +59% / +26% |
| OSTOstin Technology Group Co., Ltd. | 23.7 m | — | -169.1% | -26.0% | +22.2% | −97% / −99% |
| NEONNeonode Inc. | 10.5 m | 1.3 | 48.6% | 397.8% | −33.7% | −72% / −52% |
| LPLLG Display Co., Ltd. | — | — | -37.2% | -9.6% | +24.8% | −39% / −45% |
1- and 3-year price returns: for AEIS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 121.38 Total return -43% · Per year -43% | 215.17 Total return 2% · Per year 2% | 324.90 Total return 54% · Per year 54% |
| 3 years | 105.47 Total return -50% · Per year -21% | 211.53 Total return 0% · Per year 0% | 352.44 Total return 67% · Per year 19% |
| 5 years | 91.65 Total return -57% · Per year -15% | 207.95 Total return -1% · Per year -0% | 382.30 Total return 81% · Per year 13% |
- Exit P/E± 52.88
- Net margin± 37.02
- Annual revenue growth± 32.03
- Annual dilution± 3.11
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).
In brief
Advanced Energy designs and manufactures precision power conversion, measurement and control solutions for demanding equipment, with a large share of sales to semiconductor and data center customers. Revenue grew strongly in fiscal 2025 on AI-related demand, and second quarter 2026 results exceeded guidance, which keeps its trajectory under close watch. Growth has been driven mainly by the data center market, which more than doubled, while the industrial and medical market declined.
SWOT
Strengths
- The company holds a strong position in power conversion solutions and sees high demand for products used in AI data centers 1.
- Recent results were strong, with revenue and earnings above guidance in the second quarter of 2026 3.
- The company generated record cash flow from continuing operations in the second quarter of 2026 3.
Weaknesses
Opportunities
Risks
- Customer concentrationhigh
A small number of customers generate a large part of revenue and receivables, and losing one could affect results 1.
- Cyclical demandhigh
The markets the company serves are volatile, and downturns can reduce revenue and margins 1.
- Design winsmedium
The company must keep winning design wins, which do not always translate into substantial revenue 1.
- Debt and dilutionmedium
Convertible notes can create dilution for shareholders and refinancing costs 2.
- Trade and geopoliticsmedium
Tariffs, export controls and global conflicts could affect the supply chain and demand 12.
Investment thesis
What would need to be true (bull case)
- If demand for AI infrastructure stays strong, growth in the data center segment could keep supporting revenue and margins 13.
- Second quarter 2026 results and third quarter guidance suggest the pace of growth could be sustained 3.
- If production optimization programs meet their goals, gross margin could keep improving 13.
What would break the thesis
- If AI investment slows, revenue from data centers could fall quickly, given the large weight of this segment 1.
- Dependence on a few large customers could make results more volatile, especially if one of them reduces orders 1.
- Dilution from convertible notes and redemption costs could limit gains for shareholders 2.
What to watch
- Revenue and non-GAAP EPS against third quarter 2026 guidanceQ3 2026
- Completion of the 2028 notes redemption and effects on the capital structureQ3 2026
- Trend in gross margin and savings from production optimization2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 8-K (02 Nov 2026 · results), 10-Q (02 Nov 2026).
The business
Advanced Energy operates as a single segment of power electronics conversion products and sells into four markets: semiconductor equipment, data center computing, industrial and medical, and telecom and networking. It transforms raw electrical power from the utility or building into controllable power for complex equipment, including plasma power for etch and deposition processes. Revenue reached $1,798.8 million in fiscal 2025 1 and $574.1 million in the second quarter of 2026 3. Customers are mainly original equipment manufacturers, distributors and end users, and a few large customers account for a significant part of revenue 1.
Research and development is central to the strategy, since products are designed into customers' next-generation equipment during their development phase. Research and development expenses were $232.4 million in fiscal 2025 1, and the company employs approximately 13,000 people 1. Manufacturing is concentrated in factories in the Philippines, Malaysia and Mexico, and a new factory in Thailand is in progress 1.
The company has recently reshaped its financing and production: in May 2026 it issued convertible notes due 2031 with a principal of $1.15 billion 2, and part of the 2028 notes was exchanged or converted 2. Operations at the Zhongshan, China factory ceased in the second quarter of 2025, with site closure expected to conclude in 2026 1.
Market context
The company operates in highly competitive and cyclical markets, where product performance, reliability and price are decisive factors 1. In 2025, semiconductor demand was supported by AI chips but partly offset by weaker demand for trailing-edge logic 1. The company expects the semiconductor market to accelerate in the second half of 2026 1.
Trends
- AI infrastructure demandtailwind
Investment in AI infrastructure has increased substantially and supports demand for data center and semiconductor products 1. If demand remains high, the company could benefit directly; if it shifts sharply, the company could experience volatility 1.
- Cyclicality of industriesheadwind
Several of the company's markets are cyclical, with downturns that can reduce demand, inventories and prices 1. This could affect revenue and margins in the short term 1.
- Tariffs and trade restrictionsmixed
Tariffs and export controls were managed in 2025 without a significant impact, but their effects could become material in future periods 1. The company continuously monitors the impact on its supply chain 1.
- Manufacturing optimizationmixed
Factory consolidation and lower production costs have helped improve gross margin 1. If savings turn out lower than estimated, the benefit could be smaller 1.
Competitive position
The company faces numerous competitors, both foreign and domestic, some with greater financial resources and others smaller but well established in specific niches 1. In data center computing, some Asian competitors may benefit from local government funding 1. Customer pressure for lower prices is a constant risk 1.
Competition is differentiated by performance, compatibility, price, quality, reliability and the level of customer service 1. The company argues that innovation and service support are competitive advantages 1.
- MKS Instruments, Inc.MKSI
Competitor in semiconductor equipment, named in the annual report 1.
- Delta Electronics, Inc.
Competitor in data center, industrial and telecom segments, named in the annual report 1.
- Flex Ltd.
Competitor in semiconductor equipment, named in the annual report 1.
- TDK-Lambda Corp.
Competitor in industrial and medical segments, named in the annual report 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- ► EDGE partners with SFC Energy for advanced energy solutionsEuropean Defence Review · 27 Oct 2026 · RO
The latest news item in our archive is from 27 Oct 2026; the newest SEC filing is from 02 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report02 Nov 2026
- Current report02 Nov 2026Results of operations · Financial statements and exhibits
- Quarterly report03 Aug 2026
- Current report03 Aug 2026Results of operations · Financial statements and exhibits
- Current report12 Jun 2026Other events · Financial statements and exhibits
- Current report18 May 2026Material agreement · Creation of a direct financial obligation · Item 3.02 · Financial statements and exhibits
- Current report14 May 2026Other events · Financial statements and exhibits
- Current report13 May 2026Other events · Financial statements and exhibits
- Current report08 May 2026Departure or appointment of officers · Amendments to articles or bylaws · Shareholder vote · Financial statements and exhibits
- Quarterly report04 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Advanced Energy Industries, Inc. · 13 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Advanced Energy Industries, Inc. · 03 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Advanced Energy Industries, Inc. · 03 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.