AEM ups full-year guidance as Q3 earnings surge to S$42 million, revenue doubles

[SINGAPORE] Semiconductor equipment maker AEM Holdings’ third-quarter net profit jumped 158.9 per cent to S$42.6 million from S$16.4 million in the second quarter.

Revenue more than doubled year on year to S$204.9 million, from S$97.3 million, representing an increase of 110.7 per cent, the group said on Wednesday (Nov 11).

The better performance was driven by stronger demand for its testing solutions and improved profit margins.

The results included a one-off tax credit of S$7.8 million arising from the resolution of tax positions taken in prior years.

Growth was led by its test cell solutions segment, which recorded a revenue increase of 71.9 per cent quarter on quarter to S$159.6 million. This was supported by more shipments of AEM’s AMPS test solutions to its artificial intelligence and high-performance computing (HPC) customer, alongside stronger demand from its PC and foundry customer.

For the first nine months of 2026, the segment’s revenue rose 86.9 per cent year on year to S$340.5 million, accounting for 75.3 per cent of group revenue.

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AEM’s net profit jumped over 18 times in the nine-month period to S$73.4 million. Its revenue expanded 57.2 per cent year on year to S$452.1 million, from S$287.5 million previously.

AEM CEO Samer Kabbani said: “Crossing S$200 million in quarterly revenue reflects growing demand for our solutions as AI and HPC reshape semiconductor testing.”

This is even as technology stocks have faced selling pressure over concerns about AI spending and investment returns.

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Optimistic about prospects

The stronger performance prompted AEM to raise its FY2026 revenue guidance to between S$680 million and S$705 million, from its previous forecast of S$630 million to S$680 million.

It also raised its full-year earnings per share (EPS) guidance to between S$0.30 and S$0.33, from S$0.245 to S$0.275 previously. The revised guidance excludes a non-recurring tax credit.

Excluding the tax benefit, AEM’s nine-month net profit stood at S$65.6 million, while adjusted EPS was S$0.205, compared with reported EPS of S$0.013 a year earlier.

Profit before tax for the nine-month period rose to S$82.2 million from S$6.2 million, while the group’s pre-tax profit margin widened to 18.2 per cent from 2.2 per cent.

AEM attributed its improved performance to higher sales volumes, a more favourable revenue mix and operating leverage.

Meanwhile, the group’s contract manufacturing segment posted nine-month revenue of S$106.7 million, up 7.2 per cent year on year.

AEM remains optimistic about its medium to long-term growth prospects, although the timing and scale of future growth would depend on customer investment decisions, production schedules and broader economic and geopolitical conditions.

The group also noted that qualification of its Xact memory-testing solution was progressing more slowly than previously targeted, with completion now expected in the first half of 2027.

Shares of AEM closed S$0.21 or 3.1 per cent higher at S$7.05 on Wednesday, before the announcement.