Q3 Revenue and Profit Surge Together
Key process equipment maker Xudong Machinery reported its Q3 2026 results, with quarterly revenue of 11.82億元, up 162.70% YoY; gross profit of 5.00億元, gross margin of 42.32%; operating profit of 2.42億元, net profit after tax of 1.84億元, and EPS of 2.34元, up 181.93% from 0.83元 a year earlier. The company said the significant Q3 revenue and profit growth was mainly driven by AI server automated production equipment entering a period of intensive delivery, installation and acceptance in the second half, with related equipment revenue recognized in the quarter exceeding 7億元, lifting overall operating scale and profitability together, and bringing cumulative EPS for the first three quarters to 2.74元, sharply better than the loss in the same period last year.
Targeting Liquid Cooling and Full-Line Automation Opportunities
As global cloud service providers accelerate deployment of next-generation high-compute AI servers, with thermal design power per chip exceeding 1400W, direct liquid cooling is gradually becoming a key configuration for high-end AI cabinets. With limited space inside high-density cabinets, coolant manifolds and cooling pipelines demand stricter precision, cleanliness and airtightness for metal tube forming. Leveraging over 40 years of precision manufacturing and tube processing experience, Xudong has successfully entered the AI cooling OEM and international IT hardware major supply chains, integrating smart tube bending, hydroforming, CNC milling and 3D laser cutting processes to improve shaped-pipeline machining and inspection efficiency, and actively expanding AI server liquid-cooling opportunities.
In AI server automation equipment, as international majors actively expand capacity globally, high-end AI cabinet assembly demands higher production efficiency and yield, continuing to drive demand for full-line automation equipment. With cross-disciplinary integration capabilities spanning optics, mechanics, electronics, software and AI, Xudong has developed equipment covering server motherboard assembly, full-system testing to cabinet full-line automation, helping customers improve production efficiency and quality stability. Following large-volume shipments and revenue recognition of related equipment in Q3, Q4 remains at a peak of equipment delivery, installation and acceptance as customers proceed with new plant construction and line expansion, expected to continue supporting overall revenue performance.
Inspection and Measurement Equipment Becomes Another Growth Driver
In semiconductor inspection and measurement equipment, as AI chips move toward heterogeneous integration and advanced packaging, chip test pin counts continue to rise, with MEMS and vertical probe card pin counts reaching tens of thousands, demanding stricter tip position accuracy, cleanliness and inspection efficiency. In addition to stable shipments of its existing high-depth-of-field 2D plus 3D probe card optical inspection and measurement equipment PCIM-3000 to key customers, Xudong recently launched a probe card laser cleaning AOI hybrid tool, as well as a roll-to-roll IC five-side inspection system, respectively using non-contact laser removal of tip microparticles with optical inspection, and multi-angle optical inspection of IC bumps, pads and package cracks during continuous transfer. Chairman Zhuang Tiancai said the company will continue to deepen its semiconductor smart automation, AI server full-line equipment, liquid-cooling precision components and high-end inspection and measurement equipment portfolio. With gross margin for the first three quarters of 2026 reaching 43.12%, ongoing projects in hand in Q4 are expected to sustain growth momentum and further improve overall profitability.