Third-Quarter Revenue and Profit Both Hit Records
Industrial computer maker Advantech (2395) held its third-quarter investor briefing on November 4, reporting consolidated third-quarter revenue of NT$32.44 billion, up 83% year-on-year, a record quarterly high; net profit attributable to parent company owners reached NT$6.218 billion, up 125% year-on-year, with earnings per share of NT$7.15, also a quarterly record. Cumulative revenue for the first three quarters reached NT$78.952 billion, up 49% year-on-year, with EPS reaching NT$16.21, already surpassing the full-year 2025 level, in a strong overall performance.
AI Share at 24.5% as Robotics Business Surges
Chang Chia-hao, General Manager of Advantech's Embedded Business Group, noted that edge computing and AI infrastructure-related businesses contributed 24.5% to total revenue this year, mainly covering medical imaging, factory automation, industrial equipment and automated optical inspection (AOI). The robotics business group grew most sharply, with annual revenue growth of 200% to 300%, while physical AI applications in robotics, drones and special-environment computing continued to expand, becoming a new wave of growth momentum.
Orders on Hand Near US$2.5 Billion as BB Ratio Stays High
Chen Ching-hsi, General Manager of Comprehensive Business Management, said backlog orders, design-in and design-win indicators all remained positive, with the third-quarter book-to-bill (BB) ratio reaching 1.64, and 2.12 in the North American market. Based on current orders and year-end shipment plans, orders on hand are estimated at nearly US$2.5 billion, maintaining an optimistic outlook for 2027 operations, with revenue expected to sustain high double-digit growth.
Q4 Aims for Another Record While Cost Pressure Persists
Looking to the fourth quarter, Advantech forecasts revenue of US$970 million to US$990 million, translating to approximately NT$30.846 billion to NT$31.482 billion at an internal assumed exchange rate of NT$31.8 per US$1, with gross margin estimated at 36% to 38% and operating margin at 18% to 20%. The company noted October revenue already hit a record high, and fourth-quarter revenue still has a chance to set another quarterly record. However, third-quarter gross margin was affected by rising prices for SSDs, memory and key chips, with component costs accounting for a significantly higher share in some products, and even with price adjustments, costs could not always be fully passed through, pressuring profitability.