Slides
Page 1
Advanced Energy (AEIS) Q3 2026 Financial Results NOVEMBER 2, 2026
Page 2
Safe Harbor
Page 3
Q3 2026 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 total debt, which excludes operating lease liabilities $696 million 42.1% $66 million $3.65 24.4% $1.42 billion REVENUE NON-GAAP GROSS MARGIN(1) OPERATING CASH FLOW(2) NON-GAAP EPS NON-GAAP OP MARGIN(1) TOTAL CASH Up 50% YoY Up 110% YoY Up 300 bps YoY Up 760 bps YoY Net Cash³ of $159 million Investing in working capital
Page 4
Defiant Future Family Ruggedized power supplies with MIL spec certifications designed for demanding environments in defense and aero applications 4 Q3 2026 revenue and non-GAAP EPS(1) above the high end of guidance ▪ Record results with revenue of $696 million, up 50% YoY , and non-GAAP EPS(1) of $3.65, up 110% YoY ▪ Non-GAAP (1) operating margin increased 760 bps YoY to 24.4%, and operating income was a record $170 million Strong factory execution enabled us to meet growing demand and capture revenue upside ▪ Raising 2026 revenue growth outlook to around 40%, as demand has increased across all of our target markets ▪ Semiconductor revenue in 2H 2026 expected to grow over 60% YoY ▪ Expect 2026 Data Center revenue growth in the high-50%, after more than doubling in 2025 Investing in capacity expansion and inventory to support growth and customer satisfaction ▪ Thailand beginning to generate revenue, with data center customers qualified in Q3 and semi customers to follow ▪ Expanding output in the Philippines, Malaysia, and Mexico, targeting over $5B of revenue capacity exiting 2028 ▪ Strategic inventory and superior execution have become competitive advantages for the company Continue to make progress improving gross margin ▪ Q3 gross margin improved 300 bps YoY to 42.1%, exceeding our guidance range ▪ On track to surpass target of over 43%, driven by new products, manufacturing efficiency and higher volume Our strategies position AE for growth and increase our resilience in all market conditions ▪ Diversifying into an expanding set of growing markets leveraging our core competency in precision power ▪ R&D investments enabling differentiated new products, and customer adoption driving market share gains ▪ Building out a scalable, global manufacturing footprint, strengthening our supply chain, and investing in inventory Q3 2026 Summary – Another Record Quarter (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation
Page 5
$256M $91M$28M $322M ($ in millions) Q3 2026 Total Revenue Up 16% QoQ & 64% YoY ▪ Leading-edge wafer capacity investments driving record demand for AE products ▪ Recognized by major customers for our operational performance ▪ Won several plasma power designs for advanced node processes ▪ Secured two new wins in Semi Test ▪ New plasma and system power products expected to drive share gains over the next several years Up 34% QoQ & 49% YoY ▪ Increased demand and factory execution drove the outperformance ▪ Multiple new programs driving revenue with hyperscale customers growing into 2027 & 2028 ▪ Secured several new “second-wave” customer wins and expect revenue in 2027 ▪ Qualified flagship Thailand factory with multiple data center customers in Q3 ▪ Showcased our 800V Power Distribution Board and liquid-cooled power technology for both 50V & 800V systems at the OCP Global Summit Up 13% QoQ & 27% YoY ▪ Increasing demand and factory execution drove the fourth consecutive quarter of YoY growth ▪ Distribution resales continue to outpace our sales into the channel ▪ Multiple Q3 design wins in medical imaging, life sciences, test and measurement, and mil/aero ▪ Web leads driving an increasing number of I&M design wins Up 13% QoQ & 15% YoY ▪ Results in line with expectations ▪ AI-related applications drove increased customer demand Q3 2026 Revenue Detail by Market $696M
Page 6
Q3 2026 Revenue by Market 6 ($ in millions) Q3 2026 Q2 2026 Q3 2025 QoQ YoY Semiconductor Equipment $322.2 $278.3 $196.6 15.8% 63.9% Data Center Computing $256.2 $191.5 $171.6 33.8% 49.3% Industrial & Medical $90.5 $80.0 $71.2 13.1% 27.1% Telecom & Networking $27.5 $24.3 $23.9 13.2% 15.1% Total Revenue $696.4 $574.1 $463.3 21.3% 50.3%
Page 7
Q3 2026 Income Statement (1) Detailed explanations of non-GAAP financials and reconciliations of GAAP to non-GAAP financials can be found at the end of this presentation 7 ($ in millions) Q3 2026 Q2 2026 Q3 2025 QoQ YoY Revenue $696.4 $574.1 $463.3 21.3% 50.3% GAAP gross margin 41.5% 41.1% 37.6% - - GAAP operating expenses $145.9 $141.0 $125.2 3.5% 16.5% GAAP operating margin from continuing ops 20.6% 16.6% 10.6% - - GAAP EPS from continuing ops $2.80 $1.29 $1.21 117.1% 131.4% Non-GAAP gross margin 42.1% 41.9% 39.1% - - Non-GAAP operating expenses $123.4 $114.8 $103.4 7.5% 19.3% Non-GAAP operating margin 24.4% 21.9% 16.8% - - Non-GAAP EPS $3.65 $2.74 $1.74 33.2% 109.8%
Page 8
Balance Sheet & Cash Flow (1) Net cash = Total cash less Total debt, which excludes operating lease liabilities` Total Cash increased QoQ to $1.42 billion ▪ Net cash(1) at $159 million Inventory Turns remained flat at 2.5x ▪ Days inventory decreased by 1 days QoQ to 144 ▪ Expect inventory turns to remain at around these levels over the next few quarters DSO decreased QoQ to 61 days DPO decreased QoQ to 81 days Net working capital increased QoQ to 124 days Operating cash flow from continuing operations was $66 million CAPEX was $31 million 8 ($ in millions) Q3 2026 Q2 2026 Q3 2025 Cash $1,424.6 $1,396.5 $758.6 Inventories $645.7 $538.1 $399.7 Accounts Receivable $474.8 $403.6 $299.5 Total Assets $3,649.7 $3,426.8 $2,438.1 Accounts Payable $363.2 $316.3 $194.7 Total Debt $1,265.9 $1,264.2 $566.8 Total Liabilities $2,043.0 $1,949.7 $1,124.0 Shareholders' Equity $1,590.7 $1,456.1 $1,307.2
Page 9
Q4 2026 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 $735 million ± $25 million Non-GAAP(1) EPS $3.90 ± $0.30 GAAP EPS from continuing operations $3.30 ± $0.30 9
Page 10
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 (figures in $ millions, except percentage and EPS) All figures from Continuing Operations 2023 2023 2023 2023 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue 425.0 415.5 410.0 405.3 327.5 364.9 374.2 415.4 404.6 441.5 463.3 489.4 511.0 574.1 696.4 Gross Profit 156.5 147.8 148.2 144.5 115.0 128.9 136.0 157.9 153.4 168.1 181.2 194.3 204.8 240.3 293.2 Gross Margin 36.8% 35.6% 36.1% 35.7% 35.1% 35.3% 36.3% 38.0% 37.9% 38.1% 39.1% 39.7% 40.1% 41.9% 42.1% Total OPEX 99.7 98.5 97.3 94.9 93.6 95.1 96.8 101.8 98.6 103.6 103.4 107.4 107.0 114.8 123.4 OPEX % 23.5% 23.7% 23.7% 23.4% 28.6% 26.1% 25.9% 24.5% 24.4% 23.5% 22.3% 21.9% 20.9% 20.0% 17.7% Operating Income 56.8 49.3 50.9 49.7 21.4 33.8 39.2 56.1 54.8 64.5 77.8 86.9 97.8 125.5 169.8 Operating Income % 13.4% 11.9% 12.4% 12.3% 6.5% 9.3% 10.5% 13.5% 13.5% 14.6% 16.8% 17.8% 19.1% 21.9% 24.4% Depreciation(2) 9.5 9.4 9.7 9.7 10.0 10.2 11.1 11.1 10.6 10.0 9.5 9.8 10.5 11.3 12.2 Adj. EBITDA(2) 66.3 58.7 60.7 59.4 31.4 44.0 50.3 67.2 65.4 74.5 87.3 96.7 108.3 136.8 182.0 Adj. EBITDA % 15.6% 14.1% 14.8% 14.6% 9.6% 12.0% 13.5% 16.2% 16.2% 16.9% 18.8% 19.8% 21.2% 23.8% 26.1% Other Income/(Expense) 0.5 0.2 1.3 5.2 5.2 4.2 4.2 1.6 0.9 2.3 1.7 1.1 (0.2) 5.0 8.0 Income Before Taxes 57.3 49.5 52.3 54.8 26.6 38.0 43.4 57.7 55.7 66.8 79.6 88.0 97.6 130.4 177.8 Tax Provision/(Benefit) 10.4 7.6 3.8 8.1 4.6 6.0 6.3 8.4 8.8 10.2 13.2 12.9 14.2 18.2 28.0 Tax Rate 18.1% 15.3% 7.2% 14.8% 17.3% 15.8% 14.5% 14.6% 15.8% 15.3% 16.6% 14.7% 14.5% 14.0% 15.8% Non-GAAP Net Income 47.0 41.9 48.5 46.7 22.0 32.0 37.1 49.3 46.9 56.6 66.4 75.1 83.4 112.2 149.8 Net Income % 11.1% 10.1% 11.8% 11.5% 6.7% 8.8% 9.9% 11.9% 11.6% 12.8% 14.3% 15.3% 16.3% 19.5% 21.5% Non-GAAP EPS $1.24 $1.11 $1.28 $1.24 $0.58 $0.85 $0.98 $1.30 $1.23 $1.50 $1.74 $1.94 $2.09 $2.74 $3.65 Average Shares Outstanding 37.8 37.8 37.9 37.6 37.7 37.8 37.9 38.0 38.1 37.8 38.1 38.8 40.0 41.0 41.0
Page 11
Non-GAAP Measures
Page 12
Non-GAAP Reconciliation ($ in millions, except percentage and $ per share)
Page 13
Q4 2026 Reconciliation of GAAP to Non-GAAP Guidance