Slides
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Advanced Energy (AEIS) Q3 2025 Financial Results NOVEMBER 4, 2025
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Safe Harbor global economic conditions, such as the impact of escalating global conflicts on macroeconomic
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Q3 2025 Financial Highlights (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation (2) Cash flow from operating activities from continuing operations (3) Net cash = Total cash less debt excluding operating lease liability REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) NON-GAAP EPS NON-GAAP OP MARGIN(1) TOTAL CASH $463 million 39.1% $79 million $1.74 16.8% $759 million
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Q3 2025 results above the high end of guidance, driven by upside in Data Center ▪ Revenue of $463 million grew 24% YoY; non-GAAP EPS(1) of $1.74 was up 78% YoY ▪ Non-GAAP gross margin(1) of 39.1% was up 100 basis points QoQ, driven by earlier than expected benefits from our China factory closure, better factory loading, and lower near -term tariff costs ▪ Q3 gross margin improved again despite a higher mix of data center revenue and related factory ramp costs Raised 2025 growth to 20% YoY; well-positioned to grow in each targeted market in 2026 ▪ Raised 2025 Data Center Computing revenue growth from “over 80%” to “more than 2X,” with further growth in 2026 ▪ In Semi, new products and leading-edge investments to drive growth as the market accelerates in 2H 2026 ▪ Industrial and Medical design win pipeline and market recovery will drive sequential growth in quarters ahead ▪ Forecast 2025 gross margin to increase 240 bps and operating margin to increase 530 bps Market diversification strategy driving more consistent profitability and cash flow ▪ Leverage broad portfolio of power tech and industry-leading engineering to sell into a variety of high -end markets ▪ Each growth market has a different cycle, helping us mitigate risk with more consistent growth, profit and cash flow ▪ Financial stability has allowed us to increase investments in new technology, products, infrastructure, and capacity Remain focused on delivering gross margins of > 40% in the near-term, despite tariffs ▪ Plans for further manufacturing efficiency, product portfolio improvement, and ongoing tariff mitigation ▪ Excluding the impact of tariffs, Q4 non-GAAP gross margin(1) guidance of 39-40% expected to be > 40% Opti RF Power Rack Launched in Q3 2025, the Opti RF Rack integrates multiple Paramount generators with built-in dashboards for mature node 200mm Semi fabs Q3 2025 Summary – Solid Financial Results (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation
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$172M $71M$24M $197M ($ in millions) Q3 2025 Total Revenue Up 21% QoQ & Up 113% YoY ▪ AE’s technology leadership, superior execution, and accelerated capital investment enabling us to capture demand upside ▪ New wins to ramp in 2026, driving YoY growth ▪ Deeply engaged with customers in development of next-gen solutions, including HVDC; expect ramp to volume in 2027 & 2028 ▪ At OCP Global Summit, saw strong interest from emerging customers seeking proven, reliable, and efficient solutions for their AI racks Q3 2025 Revenue Detail by Market $463M Down 6% QoQ & Flattish YoY ▪ Despite near-term market choppiness, expect 2025 to be our 2nd best year in Semi ▪ Strong customer pull for our eVoSTM and eVerestTM platforms; ▪ Customers validated yield and throughput benefits of eVoS and eVerest ▪ Showcased multiple versions of eVerest at SEMICON West, each tailored to a customer-specific application ▪ Multiple System Power wins have begun ramping to volume Up 10% QoQ & 24% YoY ▪ Results in-line with expectations ▪ AI-related program to drive slight revenue growth in Q4 2026 Up 4% QoQ & Down 7% YoY ▪ I&M revenue and backlog increased QoQ as customer inventories continued to normalize ▪ Distribution resales increased QoQ; channel inventories decreased 6 quarters in a row ▪ Secured design wins in aero / defense and medical applications
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Q3 2025 Revenue by Market 6 ($ in millions) Q3 2025 Q2 2025 Q3 2024 QoQ YoY Semiconductor Equipment $196.6 $209.5 $197.5 -6.2% -0.5% Industrial & Medical $71.2 $68.6 $76.9 3.8% -7.4% Data Center Computing $171.6 $141.6 $80.6 21.2% 112.9% Telecom & Networking $23.9 $21.8 $19.2 9.6% 24.5% Total Revenue $463.3 $441.5 $374.2 4.9% 23.8%
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Q3 2025 Income Statement (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation 7 ($ in millions) Q3 2025 Q2 2025 Q3 2024 QoQ YoY Revenue $463.3 $441.5 $374.2 4.9% 23.8% GAAP gross margin 37.6% 37.0% 35.8% - - GAAP operating expenses $125.2 $131.8 $145.1 -5.0% -13.7% GAAP operating margin from continuing ops 10.6% 7.2% -2.9% - - GAAP EPS from continuing ops $1.21 $0.67 -$0.38 80.6% NM Non-GAAP gross margin 39.1% 38.1% 36.3% - - Non-GAAP operating expenses $103.4 $103.6 $96.8 -0.2% 6.8% Non-GAAP operating margin 16.8% 14.6% 10.5% - - Non-GAAP EPS $1.74 $1.50 $0.98 16.0% 77.6%
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Balance Sheet & Cash Flow (1) Net cash = Total cash less debt excluding operating lease liability Total Cash increased QoQ to $758.6 million ▪ Net cash(1) at $191.8 million Inventory Turns improved QoQ at 2.8x ▪ Days inventory decreased QoQ from 131 days to 128 days on higher revenue DSO decreased QoQ from 62 days to 58 days DPO decreased QoQ from 63 days to 62 days Operating cash flow from continuing operations was $78.9 million CAPEX was $27.9 million 8 ($ in millions) Q3 2025 Q2 2025 Q3 2024 Cash $758.6 $713.5 $657.3 Inventories $399.7 $397.9 $377.7 Accounts Receivable $299.5 $304.0 $259.4 Total Assets $2,438.1 $2,379.6 $2,192.9 Accounts Payable $194.7 $191.6 $133.0 Total Debt $566.8 $566.1 $564.0 Total Liabilities $1,124.0 $1,117.0 $1,028.5 Shareholders' Equity $1,307.2 $1,257.3 $1,164.4
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Q4 2025 Guidance (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non- GAAP financials can be found at the end of this presentation Revenue $470 million ± $20 million Non-GAAP(1) EPS $1.75 ± $0.25 GAAP EPS from continuing operations $1.12 ± $0.25 9
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Dilution Table for the 2.50% Convertible Note (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation (2) “Call Spread” refers to the convertible note hedge and warrant transactions in conjunction with the note offering; please refer to the September 12, 2023 8-K filing for details behind these transactions Share Count Basic share count 37.6 Diluted share count before the effects of the Convertible Note 38.1 GAAP diluted share count 38.5 Non-GAAP(1) diluted share count 38.1 GAAP Non-GAAP(2) AEIS Share Price Net Shares Dilution Net Shares Dilution Price at Issuance $105.74 $120.00 Initial Conversion Price $137.46 $140.00 0.1 0.2% Q3 2025 Average Share Price $150.58 0.4 1.0% $160.00 0.6 1.5% $170.00 0.8 2.1% Conversion Price with Call Spread(2) $179.76 1.0 2.6% $190.00 1.4 3.6% 0.2 0.6% $200.00 1.7 4.5% 0.4 1.1% $225.00 2.5 6.5% 0.8 2.2% $250.00 3.1 8.0% 1.2 3.1% $275.00 3.5 9.3% 1.4 3.8% $300.00 3.9 10.3% 1.7 4.4% $400.00 5.0 13.3% 2.3 6.0% $500.00 5.7 15.0% 2.7 7.0%
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Quarterly Non-GAAP Financials(1) (1) For detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials, please refer to our 10-K and 10-Q filings with the SEC (2) Adjusted EBITDA is defined as non-GAAP operating income + non-GAAP depreciation, which excludes $461K in accelerated depreciation for manufacturing consolidation in Q3 2024 Quarterly Trend (figures in $ millions, except percentage and EPS) All figures from Continuing Operations 2022 2022 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 516.3 490.7 425.0 415.5 410.0 405.3 327.5 364.9 374.2 415.4 404.6 441.5 463.3 Gross Profit 193.4 179.4 156.5 147.8 148.2 144.5 115.0 128.9 136.0 157.9 153.4 168.1 181.2 Gross Margin 37.5% 36.6% 36.8% 35.6% 36.1% 35.7% 35.1% 35.3% 36.3% 38.0% 37.9% 38.1% 39.1% Total OPEX 99.8 100.9 99.7 98.5 97.3 94.9 93.6 95.1 96.8 101.8 98.6 103.6 103.4 OPEX % 19.3% 20.6% 23.5% 23.7% 23.7% 23.4% 28.6% 26.1% 25.9% 24.5% 24.4% 23.5% 22.3% Operating Income 93.6 78.5 56.8 49.3 50.9 49.7 21.4 33.8 39.2 56.1 54.8 64.5 77.8 Operating Income % 18.1% 16.0% 13.4% 11.9% 12.4% 12.3% 6.5% 9.3% 10.5% 13.5% 13.5% 14.6% 16.8% Depreciation(2) 8.5 8.8 9.5 9.4 9.7 9.7 10.0 10.2 11.1 11.1 10.6 10.0 9.5 Adj. EBITDA(2) 102.1 87.3 66.3 58.7 60.7 59.4 31.4 44.0 50.3 67.2 65.4 74.5 87.3 Adj. EBITDA % 19.8% 17.8% 15.6% 14.1% 14.8% 14.6% 9.6% 12.0% 13.5% 16.2% 16.2% 16.9% 18.8% Other Income/(Expense) (1.9) (1.1) 0.5 0.2 1.3 5.2 5.2 4.2 4.2 1.6 0.9 2.3 1.7 Income Before Taxes 91.7 77.4 57.3 49.5 52.3 54.8 26.6 38.0 43.4 57.7 55.7 66.8 79.6 Tax Provision/(Benefit) 12.1 13.2 10.4 7.6 3.8 8.1 4.6 6.0 6.3 8.4 8.8 10.2 13.2 Tax Rate 13.2% 17.0% 18.1% 15.3% 7.2% 14.8% 17.3% 15.8% 14.5% 14.6% 15.8% 15.3% 16.6% Non-GAAP Net Income 79.6 64.2 47.0 41.9 48.5 46.7 22.0 32.0 37.1 49.3 46.9 56.6 66.4 Net Income % 15.4% 13.1% 11.1% 10.1% 11.8% 11.5% 6.7% 8.8% 9.9% 11.9% 11.6% 12.8% 14.3% Non-GAAP EPS $2.12 $1.70 $1.24 $1.11 $1.28 $1.24 $0.58 $0.85 $0.98 $1.30 $1.23 $1.50 $1.74 Average Shares Outstanding 37.6 37.7 37.8 37.8 37.9 37.6 37.7 37.8 37.9 38.0 38.1 37.8 38.1
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Non-GAAP Measures
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Non-GAAP Reconciliation ($ in millions, except percentage and $ per share)
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Non-GAAP Reconciliation ($ in millions, except percentage and $ per share)