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olivLaw · US equity research

Trio-Tech International TRT

Special Industry Machinery, NEC · SIC 3559 · Vertical: Special Industry Machinery, NEC (SIC 3559)

4.96USD+2.27% · 1 dayClose 04 Nov 2026

Trio-Tech International (TRT) provides reliability testing services and equipment for the semiconductor industry and industrial electronics, operating from Singapore with activities in Malaysia, Thailand and China. In fiscal 2026 revenue rose 72% to 62.6 million USD, supported by demand for testing AI and automotive chips, and the order backlog nearly doubled to 24.2 million USD.

At the close of 04 Nov 2026, Trio-Tech International (TRT) stock was 4.96 USD (+2.27% on the day), with market capitalisation 51.5 m USD, beta 0.84, 52-week range 3.27–20.05 USD. Latest reported quarter (Q4 2026): revenue of 14.9 m USD (+39.9% YoY), net income of -199.0 k USD (−208.7% YoY), diluted EPS -0.02 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
51.5 m USD
shares as of 01 Sept 2026
P/E (TTM)
unavailable
Diluted EPS TTM 0.00 · TTM to 30 Jun 2026
E/P (TTM)
0.00%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.84
Volatility (1y) 131%
52-week range
3.2720.05

Price history

Loading chart…

Technical reading

RSI (14)
36.4
weak (30–45)
Bollinger (20, 2)
4.61 – 5.78
in the lower half of the band · %B 0.30 · band width 22.6%
SMA 50 / 200
7.54 / 8.86
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.68 / -0.82
MACD above 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

CompanyS&P 500vs S&P 500Vertical median
1 month−19.2%−2.0%−17.2 pp—
3 months−53.9%−2.2%−51.7 pp—
6 months−60.7%+4.3%−65.0 pp—
Year to date−25.1%+10.6%−35.6 pp—
1 year+49.2%+10.5%+38.7 pp+23.7%
3 years+53.8%+73.7%−19.9 pp+8.3%
5 years+109.3%+61.7%+47.6 pp—
Max drawdown (1y)
−77.3%
15 May 2026 → 02 Nov 2026
Max drawdown (5y)
−77.3%
15 May 2026 → 02 Nov 2026
Compound annual growth (5y)
+15.9%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 30 Jun 2026

Revenue
14.9 m USD
+39.9% YoY
Net income
-199.0 k USD
−208.7% YoY
Diluted EPS
-0.02
−205.2% YoY
net / operating
-1.3% / -1.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue9.8 m8.6 m7.4 m10.7 m15.5 m15.6 m16.5 m14.9 m
Cost of revenue7.5 m6.4 m5.4 m8.0 m12.9 m13.2 m14.0 m12.2 m
Gross profit2.3 m2.2 m2.0 m2.6 m2.6 m2.5 m2.6 m2.8 m
Research & development88.0 k114.0 k90.0 k92.0 k94.0 k106.0 k99.0 k98.0 k
Operating income133.0 k-3.0 k-343.0 k467.0 k46.0 k97.0 k-81.0 k-266.0 k
Depreciation & amortisation711.0 k711.0 k671.0 k648.0 k532.0 k441.0 k638.0 k680.0 k
Interest expense13.0 k13.0 k10.0 k9.0 k8.0 k22.0 k11.0 k24.0 k
Pre-tax income-179.0 k675.0 k-475.0 k152.0 k227.0 k312.0 k107.0 k-257.0 k
Income tax51.0 k139.0 k6.0 k-28.0 k64.0 k77.0 k146.0 k-59.0 k
Net income-236.0 k507.0 k-495.0 k183.0 k77.0 k126.0 k-38.0 k-199.0 k
Diluted EPS-0.060.06-0.060.02 ≈0.020.010.00-0.02 ≈
Operating cash flow-1.9 m2.1 m ≈781.0 k ≈-664.0 k933.0 k134.0 k ≈1.3 m ≈1.1 m
Capex69.0 k183.0 k ≈156.0 k ≈559.0 k46.0 k286.0 k ≈544.0 k ≈865.0 k
Share repurchases———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.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue39.2 m34.5 m32.5 m44.1 m43.3 m42.3 m36.5 m62.6 m
Revenue YoY−7.5%−12.1%−5.8%+35.7%−1.8%−2.2%−13.8%+71.6%
Net income1.5 m878.0 k-591.0 k2.4 m1.5 m1.1 m-41.0 k-34.0 k
Net income YoY+30.5%−43.2%−167.3%unavailable−35.5%−32.0%−103.9%unavailable
Diluted EPS0.410.24-0.150.570.370.240.000.00
Diluted EPS YoY+32.3%−41.5%−162.5%unavailable−35.1%−35.1%−100.0%unavailable
net %3.9%2.5%-1.8%5.4%3.6%2.5%-0.1%-0.1%
Free cash flow1.6 m2.0 m526.0 k655.0 k3.6 m2.2 m-596.0 k1.7 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 30 Jun 2026

Cash
21.4 m USD
Financial debt
445.0 k USD
Net debt
-21.0 m USD
Equity
43.0 m USD
Total assets
60.7 m USD
Debt / equity
0.01x
Current ratio
3.44x
ROE
-0.1%
ROA
-0.1%
FCF margin
2.7%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
42.3 m
2025
36.5 m
2026
62.6 m

SEC (XBRL)· 24 Sept 2026verified

Cost of revenue
2024
31.6 m
2025
27.3 m
2026
52.2 m

SEC (XBRL)· 24 Sept 2026verified

Gross profit
2024
10.8 m
2025
9.1 m
2026
10.4 m

SEC (XBRL)· 24 Sept 2026verified

Research & development
2024
392.0 k
2025
384.0 k
2026
397.0 k

SEC (XBRL)· 24 Sept 2026verified

Operating income
2024
1.1 m
2025
254.0 k
2026
-204.0 k

SEC (XBRL)· 24 Sept 2026verified

Depreciation & amortisation
2024
4.2 m
2025
2.7 m
2026
2.3 m

SEC (XBRL)· 24 Sept 2026verified

EBITDA
2024
5.3 m ≈
2025
3.0 m ≈
2026
2.1 m ≈

SEC (XBRL)· 24 Sept 2026derived

Interest expense
2024
77.0 k
2025
45.0 k
2026
65.0 k

SEC (XBRL)· 24 Sept 2026verified

Pre-tax income
2024
1.6 m
2025
173.0 k
2026
389.0 k

SEC (XBRL)· 24 Sept 2026verified

Income tax
2024
486.0 k
2025
168.0 k
2026
228.0 k

SEC (XBRL)· 24 Sept 2026verified

Net income
2024
1.1 m
2025
-41.0 k
2026
-34.0 k

SEC (XBRL)· 24 Sept 2026verified

Diluted EPS
2024
0.24
2025
0.00
2026
0.00

SEC (XBRL)· 24 Sept 2026verified

Weighted average diluted shares
2024
4.3 m
2025
8.5 m
2026
9.0 m

SEC (XBRL)· 24 Sept 2026verified

Balance sheet · USD

Cash
2024
10.0 m
2025
10.9 m
2026
21.4 m

SEC (XBRL)· 24 Sept 2026verified

Receivables
2024
10.7 m
2025
10.8 m
2026
13.5 m

SEC (XBRL)· 24 Sept 2026verified

Inventories
2024
3.2 m
2025
2.3 m
2026
3.4 m

SEC (XBRL)· 24 Sept 2026verified

Current assets
2024
32.2 m
2025
31.6 m
2026
45.3 m

SEC (XBRL)· 24 Sept 2026verified

Property, plant & equipment, net
2024
—
2025
—
2026
—

SEC (XBRL)· 01 Oct 2021verified

Total assets
2024
42.5 m
2025
41.1 m
2026
60.7 m

SEC (XBRL)· 24 Sept 2026verified

Accounts payable
2024
3.2 m
2025
1.9 m
2026
7.6 m

SEC (XBRL)· 24 Sept 2026verified

Long-term debt
2024
874.0 k
2025
684.0 k
2026
445.0 k

SEC (XBRL)· 24 Sept 2026verified

Current liabilities
2024
9.4 m
2025
6.3 m
2026
13.2 m

SEC (XBRL)· 24 Sept 2026verified

Total liabilities
2024
11.0 m
2025
7.1 m
2026
17.7 m

SEC (XBRL)· 24 Sept 2026verified

Equity
2024
31.6 m
2025
34.0 m
2026
43.0 m

SEC (XBRL)· 24 Sept 2026verified

Cash flow · USD

Operating cash flow
2024
2.7 m
2025
371.0 k
2026
3.4 m

SEC (XBRL)· 24 Sept 2026verified

Capex
2024
542.0 k
2025
967.0 k
2026
1.7 m

SEC (XBRL)· 24 Sept 2026verified

Free cash flow
2024
2.2 m ≈
2025
-596.0 k ≈
2026
1.7 m ≈

SEC (XBRL)· 24 Sept 2026derived

Investing cash flow
2024
-113.0 k
2025
167.0 k
2026
-1.0 m

SEC (XBRL)· 24 Sept 2026verified

Financing cash flow
2024
-90.0 k
2025
-40.0 k
2026
7.4 m

SEC (XBRL)· 24 Sept 2026verified

Dividends paid
2024
—
2025
—
2026
—

SEC (XBRL)· 01 Oct 2021verified

Share repurchases
2024
—
2025
0
2026
12.0 k

SEC (XBRL)· 24 Sept 2026verified

Computed indicators

Growth

Revenue growth (YoY)
71.6%
computed by olivLawFY 2026
Revenue CAGR 3Y
13.1%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
14.0%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
-180.3%
computed by olivLawFY 2026
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
16.6%
computed by olivLawFY 2026
EBITDA margin
3.3%
computed by olivLawFY 2026
EBIT margin
-0.3%
computed by olivLawFY 2026
Net margin
-0.1%
computed by olivLawFY 2026
FCF margin
2.7%
computed by olivLawFY 2026

Returns

ROE
-0.1%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROA
-0.1%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROIC
-0.7%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROCE
-0.4%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
-21.0 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
-10.1x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
-3.1x
computed by olivLawFY 2026

Liquidity

Current ratio
3.4x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
3.2x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
1.6x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
3.4 m USD
computed by olivLawFY 2026
Capital expenditure
1.7 m USD
computed by olivLawFY 2026
Free cash flow
1.7 m USD
computed by olivLawFY 2026
FCF conversion
unavailable
insufficient data
Cash conversion
164.2%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
71 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
20 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
33 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
58 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
51.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
30.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
0.0%
computed by olivLawFY 2026
P/B
1.1x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.8x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
14.6x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBIT
unavailable
insufficient data
EV/Sales
0.5x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
P/FCF
30.6x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
FCF yield
3.3%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Dividend yield
unavailable
input data missing
Shareholder yield (distributions)
0.0%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026

Risk

Altman Z
3.66
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Neutral profile

Score: 42 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

4.96 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 51.5 m USD

Key indicators

Market capitalisation
51.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
1.1x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
14.6x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROE
-0.1%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Net margin
-0.1%
computed by olivLawFY 2026
Revenue growth (YoY)
71.6%
computed by olivLawFY 2026
Dividend yield
unavailable
input data missing

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 01 Sept 2026
Source: SEC (XBRL)published 24 Sept 2026
verified 2412derived 227

Score by group

  • Valuation20
  • Returns0
  • Quality19
  • Balance sheet70
  • Growth100

Estimated value range

Low
4.69
USD per share
Mid
5.23
USD per share
High
6.09
USD per share
Price: 4.96 USD
The price is within the range
Potential to the central value: 5.5% (value / price − 1)
Margin of safety: 5.2% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

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: 4.69 – 6.09 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)4.69 – 6.09 (Mid 5.23)
    WACC 9.3% · starting FCFF 1.7 m USD · terminal value share of EV 74%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 9.0%
  • Peers: EV/EBITDAunavailable · not enough peers
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · input data missing
Multiple comparisons use the SIC vertical: Special Industry Machinery, NEC (SIC 3559)

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

Neutral profile · Score 42/100

FactorValueScoreWeight used
ROIC · Quality-0.7%20 (vs peers)15%
Net margin · Quality-0.1%17 (vs peers)9%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth13.1%100 (on a fixed band)12%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet-10.1x100 (on a fixed band)15%
Interest coverage · Balance sheet-3.1x0 (on a fixed band)9%
Current ratio · Balance sheet3.4x100 (on a fixed band)6%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuation14.6x3 (on a fixed band)15%
FCF yield · Valuation3.3%41 (on a fixed band)12%
Shareholder yield (distributions) · Returns0.0%0 (on a fixed band)9%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet70/100 · 3/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality19/100 · 2/3 factors with a value
  • Returns· partial0/100 · 1/2 factors with a value
  • Valuation20/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

TRIO-TECH INTERNATIONAL (TRT). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 62.6 m USD in 2026; YoY growth 71.6%; net margin -0.1%; ROE -0.1%; net debt/EBITDA -10.1x.

The estimated value range is 4.69–6.09 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 5.23 USD, the price of 4.96 USD leaves a potential of 5.5% (value / price − 1) and a margin of safety of 5.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 42/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 13.1%
  • Net debt / EBITDA: -10.1x
  • Current ratio: 3.4x

What contradicts it

  • ROIC: -0.7%
  • Net margin: -0.1%
  • Interest coverage: -3.1x
  • EV/EBITDA: 14.6x
  • Shareholder yield (distributions): 0.0%

Not assessed (insufficient data or a ratio without meaning): FCF conversion, EPS CAGR 3Y, P/E (TTM), Payout ratio (FCF).

Versus the vertical median

Special Industry Machinery, NEC (SIC 3559) · same industry (4-digit SIC) · compared with 12 companies

Multiples and returns vs the median

P/E
—
vertical median 30.9x
EV/EBITDA
14.6x
vertical median 27.8x
below median (−47.3%)
P/S
0.8x
vertical median 3.0x
below median (−72.9%)
P/B
1.1x
vertical median 2.1x
below median (−45.9%)
ROE
-0.1%
vertical median 9.5%
below median (−100.9%)
Net margin
-0.1%
vertical median 11.7%
below median (−100.5%)
EBIT margin
-0.3%
vertical median 10.3%
below median (−103.2%)
Revenue YoY
71.6%
vertical median 0.7%
above median (+9,799.8%)
Net debt/EBITDA
-10.1x
vertical median -0.7x
below median
Dividend yield
—
vertical median 0.5%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
LRCXLam Research Corporation288.2 bn34.470.1%32.3%+26.0%+48% / +222%
ACLSAxcelis Technologies Inc2.8 bn30.98.9%10.7%−17.6%+11% / −26%
VECOVeeco Instruments Inc2.2 bn100.52.6%3.4%−7.4%+23% / +26%
CRCTCricut, Inc.1.9 bn20.925.9%12.7%−0.5%+87% / +29%
AZTAAzenta, Inc.1.7 bn—-7.7%-20.0%+3.6%+10% / −31%
ACMRACM Research, Inc.629.9 m21.010.6%14.5%+15.2%+33% / +167%
ERIIEnergy Recovery, Inc.366.0 m26.08.6%12.7%−6.9%−50% / −62%
ASYSAmtech Systems, Inc.216.2 m46.74.8%4.9%−21.6%+57% / +60%
VELOVelo3D, Inc.181.5 m—-61.5%-89.6%+12.1%+6% / −99%
SOTKSono Tek Corp71.0 m36.010.1%9.3%+2.0%+24% / −10%
TRTTrio-Tech International51.5 m—-0.1%-0.1%+71.6%+49% / +54%
CVVCvd Equipment Corporation26.8 m2.732.7%62.0%−4.1%+10% / −19%
ASMLAsml Holding NV——50.5%29.4%+15.6%+41% / +119%

1- and 3-year price returns: for TRT 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.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    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.

    In brief

    Trio-Tech International (TRT) provides reliability testing services and equipment for the semiconductor industry and industrial electronics, operating from Singapore with activities in Malaysia, Thailand and China. In fiscal 2026 revenue rose 72% to 62.6 million USD, supported by demand for testing AI and automotive chips, and the order backlog nearly doubled to 24.2 million USD.

    SWOT

    Strengths

    • Over six decades of experience and durable customer relationships support its position in semiconductor reliability testing 1.
    • Operations in several Asian countries allow services close to customers' production centres 1.
    • The balance sheet strengthened in fiscal 2026, with higher liquidity and positive operating cash flow 2.

    Weaknesses

    • Concentration on a few large customers and on the semiconductor industry exposes revenue to volatility 1.
    • Gross margin declined in fiscal 2026 and general and administrative costs rose, producing an operating loss 1.
    • Rapid growth in activity raised inventories and receivables, affecting working capital 1.

    Opportunities

    • Multi-year EV contracts and expanded Malaysian capacity could support growth in fiscal 2027 2.
    • New markets in data centres and industrial energy efficiency could diversify the IE segment 2.
    • If backlog converts into revenue, the company could reduce its dependence on a single large customer 2.

    Threats

    • Changes in military or commercial testing specifications could alter demand for equipment 1.
    • Trade tensions between the US and China and possible tariffs could affect costs and demand 2.
    • Risks tied to the Chinese property market and political and economic instability in Asia remain relevant 1.

    Risks

    • Dependence on large customershigh

      A small number of customers generates a major part of revenue, and a change in orders from one of them could affect results 1.

    • Volatility of the semiconductor industryhigh

      Product cycles and economic downturns can reduce demand for testing and equipment, with rapid effects on revenue 1.

    • Margin pressuremedium

      Gross margin fell in fiscal 2026, and currency costs and short-lead-time orders could reduce profitability further 1.

    • Currency and geopolitical riskmedium

      Exposure to Asian currencies and trade tensions can change prices and costs, and the effects on results are hard to anticipate 12.

    • Rapid capacity expansionlow

      New space and leases in Malaysia can create fixed costs and higher provisions if volumes do not grow as planned 12.

    Investment thesis

    What would need to be true (bull case)

    • A larger backlog and multi-year EV contracts could give visibility into revenue growth in fiscal 2027 2.
    • Expanded Malaysian capacity could allow the company to serve North American customers more effectively 2.
    • Operating cash flow improved, which could support investment without additional borrowing 2.

    What would break the thesis

    • Customer concentration can make revenue highly sensitive to the decisions of a small number of buyers 1.
    • Gross margin fell and operating costs rose, leaving the business with an operating loss in fiscal 2026 1.
    • Rapid growth in inventories and receivables could strain working capital if collections slow 1.

    What to watch

    • Trend in gross margin and operating costs after the Malaysian expansionQ1 2027
    • Delivery of the remaining burn-in board orders and the backlog outstanding2027
    • Start of progressive production volume increases in the new Malaysian facilityQ2 2027
    • Share of revenue from the three largest customers in the next annual reportnext 10-K

    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.

    The business

    Founded in 1958 in California, the company designs and builds reliability test equipment and offers testing services for the semiconductor industry and other sectors, from automotive and industrial electronics to computing, data storage and communications 1. Its business is organised into two segments: Semiconductor Back-end Solutions (SBS), covering burn-in systems, burn-in boards and electrical, environmental and burn-in testing in Asian laboratories, and Industrial Electronics (IE), covering test and process equipment, maintenance services and distribution of electronic components 1. The SBS segment accounted for 78.3% of fiscal 2026 revenue, and the two segments together for over 99.9% of the total 1.

    The company states that it aims to reduce its historic concentration on the semiconductor industry and on large customers, by expanding its lines of business and through complementary acquisitions or partnerships 1. In fiscal 2026 three customers accounted for about 57.6% of revenue, a high level of customer concentration 1.

    The latest quarter and fiscal 2026 were marked by new EV contracts and added capacity in Malaysia, including about 104,000 square feet of extra space in Perai, Penang 2. Orders in hand at June 30, 2026 reached 24.2 million USD, compared with 11.0 million USD a year earlier 2.

    Segments

    Semiconductor Back-end Solutions (SBS)

    The SBS segment grew 99% in fiscal 2026 to 49.0 million USD and includes burn-in and test equipment, testing services and support for new product introductions 12. SBS backlog at June 30, 2026 was about 19.8 million USD 2.

    Industrial Electronics (IE)

    The IE segment grew 15% in fiscal 2026 to 13.6 million USD and combines proprietary test equipment with distribution of components such as connectors, camera modules and touch panels 1. IE bookings for the first quarter of fiscal 2027 totalled about 4.6 million USD 2.

    Others

    The China real estate activity was moved to the Others segment and has been below 1% of revenue over the past five years, amid a negative property environment in China 1.

    Market context

    Semiconductor testing demand is shaped by product cycles and by investment in artificial intelligence, high-performance computing and automotive, especially electric vehicles 2. The company operates in a competitive field with numerous laboratories in the same regions, and consolidation in the industry, particularly in Asia, has thinned the number of competitors 1.

    The semiconductor industry has seen periods of rapid growth but also downturns tied to product maturity cycles and general economic conditions 1. The industrial markets served by the IE segment include aerospace, displays and data centres 2.

    Trends

    • Demand for AI chip testingtailwind

      Management links fiscal 2026 growth to demand for reliability testing of chips used in artificial intelligence and advanced computing programmes 2. If this demand is sustained, it could support growth in the SBS segment.

    • Automotive electrificationtailwind

      The company has signed production burn-in contracts for EV semiconductors, including a three-year contract with a new European customer, which could open multi-year revenue 2. Exposure to this segment is still relatively new.

    • Customer concentrationheadwind

      Dependence on a few large customers can amplify revenue volatility if one customer reduces orders or shifts its geographic sourcing, as happened with a major US customer in SBS 1.

    • Currency exposure and margin pressuremixed

      Gross margin fell to 16.6% on higher costs and currency factors, and movements in Asian currencies can affect pricing and margins, with mixed effects depending on the direction of exchange rates 1.

    Competitive position

    The company says its SBS position rests on established reputation, decades of expertise and customer relationships, in a market where numerous laboratories offer similar capabilities 1. In IE competition for equipment and components remains intense, and differentiation comes from customisation and technical support 1.

    Key competitive factors for burn-in and reliability test equipment are product performance, reliability, service and technical support, price and established customer relationships 1. The sources provided do not name any competitor listed on a US exchange.

    • Regional semiconductor testing laboratories

      Companies with similar testing capabilities in the same Asian regions, described generically in the annual report.

    • Burn-in and test equipment manufacturers

      Suppliers of burn-in and test equipment in the company's main markets, referred to generically in the annual report.

    • Electronic component distributors

      Firms selling connectors, camera modules and touch panels that compete with the IE division.

    • Industrial test equipment manufacturers

      Makers of climate chambers, leak detectors and mechanical test systems active in the same industries as the IE segment.

    News & filings

    In the press

    No news in our archive over the last 180 days.

    SEC filings

    Sources

    1. [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Trio-Tech International · 24 Sept 2026
    2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Trio-Tech International · 24 Sept 2026

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.

    Trio-Tech International (TRT): stock, results, valuation and forecast · olivLaw