007973AE0 Filings — Advanced Energy Industries, Inc. - FilingSpy
007973AE0
Advanced Energy Industries, Inc.
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A maker of precision power-conversion systems, Advanced Energy builds the plasma power products that etch and deposit circuits onto semiconductor wafers, and also powers high-end data-center, medical, and industrial equipment. Founded in 1981 in Fort Collins, Colorado by Douglas S. Schatz, it has grown into a global supplier whose technology often works inside machines that bear other companies' names, with the motto "Powering Technology Together."
Q2 FY2026 revenue rose 30% to $574.1M with gross margin up 4.1 points to 41.1% on AI demand across all markets.
AI demand lifted every end market this quarter. rose 30% to $574.1M, expanded 4.1 points to 41.1%, and more than tripled to $95.1M as Data Center Computing and Semiconductor Equipment grew 35.2% and 32.8%. The company holds $1.4B cash after a debt exchange, leaving it funded for capacity expansion.
Key takeaways
rose 30% to $574.1M and 12.3% sequentially, led by Data Center Computing up 35.2% and Semiconductor Equipment up 32.8%, both fueled by AI investments across all end markets.
expanded to 41.1% from 37.0% a year earlier, with a 120-basis-point boost from plus favorable mix and higher volume.
more than tripled to $95.1M, though the result included a $31.8M from the 2028 Notes exchange.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 30% YoY to $574M with gross margin expanding 410 bps to 41.1%, driven by AI-fueled demand across all end markets.
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Total grew 30% to $574.1M, led by a 35.2% surge in Data Center Computing and a 32.8% increase in Semiconductor Equipment, both fueled by AI investments.
expanded to 41.1% from 37.0% a year ago, benefiting from favorable product mix, higher volume, and a 120-basis-point boost from tariff refunds.
The company issued $1.15B in 0% due 2031, using proceeds to $438.3M of 2028 Notes and call the remaining $136.7M for redemption.
Cash and equivalents swelled to $1,396.5M, while first-half nearly doubled to $86.1M to expand manufacturing capacity and implement a new ERP system.
was $1.28, up 91% but down 19% from Q1's $1.58 as the non-cash debt loss and fewer shares from repurchases weighed on the quarter.
What changed
The FY2025 10-K flagged conversion activity on the $575M 2.5% now convertible as of Dec 31, 2025; this quarter the company executed an exchange issuing $1.15B 0% notes due 2031 to $438.3M and redeem the remaining $136.7M of 2028 Notes, with a $31.8M non-cash induced-conversion loss recorded.
FY2025 flagged whether Data Center Computing sustains after a 106.7% rise; Q2 in that rose 35.2% and total revenue rose 30%, extending the AI-driven growth.
Semiconductor Equipment was flagged against the $839.9M 2025 base with China restrictions and trailing-edge weakness; Q2 rose 32.8% to roughly $277M, reversing the near-flat Q1 $219.4M and Q3 FY2025 $196.6M readings.
Industrial and Medical decline was not separately reported this quarter, leaving the FY2025-flagged question of rebalancing ending after a 10.7% drop unsettled.
recovered to $85.0M from the -$6.0M Q1 reading as and build reversed, up 88.1% .
rose to $1,128.6M from $568.2M at Q1 end after the $1.15B 2031 notes issuance net of 2028 notes retirement, while cash more than doubled to $1,396.5M.
What to watch
Semiconductor Equipment next quarter against the Q2 level to see if China export restrictions and trailing-edge weakness cap the 32.8% growth.
Any further conversion or cash-settlement activity on the new $1.15B 0% due 2031 and its effect on share count.
Industrial and Medical to confirm the rebalancing decline has ended, since it was not reported this quarter.
Capital expenditure pace against the $86.1M first-half figure as manufacturing expansion and ERP implementation proceed.
more than tripled to $95.1M, though results included a $31.8M non-cash loss on related to the 2028 Notes exchange.
The company issued $1.15B in 0% Convertible Notes due 2031, using proceeds to $438.3M of 2028 Notes and calling the remaining $136.7M for redemption.
Cash and equivalents swelled to $1,396.5M, while nearly doubled to $86.1M in the first half to expand manufacturing capacity and implement a new ERP system.
Quantitative and Qualitative Disclosures About Market Risk
Market risk exposures are unchanged from year-end 2025, with foreign-exchange risk from global operations and limited interest-rate risk from fixed-rate notes.
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The company states there have been no material changes in market risk exposure since December 31, 2025.
Foreign-exchange risk arises from , purchasing, and translation of non-U.S. subsidiaries, with functional currencies including the Euro, Won, Yen, and Yuan.
Historically, exchange-rate impacts from non-functional currencies such as the Ringgit, Peso, and Baht have not been material to operating results.
The company may use foreign-currency forward contracts solely for hedging intercompany debt and future settlements, not for trading or speculation.
Interest-rate risk is currently limited because the only outstanding debt consists of the 2028 Notes at 2.5% fixed and the 2031 Notes at 0% fixed.
Rising rates could affect future decisions to borrow under the Credit Agreement or refinance on favorable terms.
We are involved in disputes and legal actions arising in the normal course of our business. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our financial condition, r…
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We are involved in disputes and legal actions arising in the normal course of our business. Although it is not possible to predict the outcome of these matters, we believe that the results of these proceedings will not have a material adverse effect on our financial condition, results of operations, or liquidity.
Information concerning our risk factors is contained in Part I, Item 1A, “Risk Factors” in the 2025 Form 10-K. The risks described in the 2025 Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to…
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Information concerning our risk factors is contained in Part I, Item 1A, “Risk Factors” in the 2025 Form 10-K. The risks described in the 2025 Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or operating results. There have been no material changes to the risk factors previously disclosed in the 2025 Form 10-K.
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