Revenue was $463 million, above the high end of guidance
Data Center Computing revenue grew 113% year-over-year and 21% sequentially
GAAP EPS from continuing operations was $1.21 and non-GAAP EPS was $1.74, both above the high end of guidance
Cash flow from continuing operations grew 123% year-over-year to $79 million

Advanced Energy Industries, Inc. (NASDAQ:AEIS), a global leader in highly engineered, precision power conversion, measurement, and control solutions, announced financial results for the third quarter ended September 30, 2025.

"Third quarter results surpassed the high end of our guidance due to increased demand for our AI data center solutions," said Steve Kelley, president and CEO of Advanced Energy. "We delivered solid financial results with continued improvement in gross margin, operating income, earnings, and operating cash flow. With strong customer pull for our next-generation products, we are well on our way to meet or exceed the long-term financial goals presented at our 2024 Analyst Day."

Quarter Results

Revenue was $463 million in the third quarter of 2025, compared with $441.5 million in the second quarter of 2025 and $374.2 million in the third quarter of 2024.

GAAP net income from continuing operations was $46.4 million or $1.21 per diluted share in the quarter, compared with $25.5 million or $0.67 per diluted share in the prior quarter, and a loss of $14.1 million or $0.38 loss per diluted share in the third quarter of 2024.

Non-GAAP net income was $66.4 million or $1.74 per diluted share in the third quarter of 2025. This compares with $56.6 million or $1.50 per diluted share in the prior quarter, and $37.1 million or $0.98 per diluted share in the third quarter of 2024.

Advanced Energy generated $79 million in cash flow from continuing operations during the quarter, and paid $3.9 million in quarterly dividends.

Fourth Quarter 2025 Guidance

Based on the Company's current view, beliefs, and assumptions, guidance is within the following ranges:

Conference Call

Management will host a conference call today, November 4, 2025, at 4:30 p.m. Eastern Time to discuss the third quarter financial results. To participate in the live earnings conference call, please dial 877-407-0890 approximately ten minutes prior to the start of the meeting and an operator will connect you. International participants can dial +1-201-389-0918. A webcast will also be available on our investor web page at ir.advancedenergy.com in the Events & Presentations section. The archived webcast will be available approximately two hours following the end of the live event.

About Advanced Energy

Advanced Energy Industries, Inc. (NASDAQ:AEIS) is a global leader in the design and manufacture of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. Advanced Energy's power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial production, medical and life sciences, data center computing, networking, and telecommunications. With engineering know-how and responsive service and support for customers around the globe, the Company builds collaborative partnerships to meet technology advances, propels growth of its customers, and innovates the future of power. Advanced Energy has devoted four decades to perfecting power. It is headquartered in Denver, Colorado, USA. For more information, visit www.advancedenergy.com.

Advanced Energy | Precision. Power. Performance. Trust.

Non-GAAP Measures

This release includes measures, such as non-GAAP net income, non-GAAP operating income, and non-GAAP earnings per share ("EPS") that are not prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Management uses non-GAAP net income and non-GAAP EPS to evaluate business performance without the impacts of certain non-cash charges and other charges which are not part of our usual operations. We use these non-GAAP measures to assess performance against business objectives and make business decisions, including developing budgets and forecasting future periods. In addition, management's incentive plans include certain of these non-GAAP measures as criteria for achievements. These non-GAAP measures are not prepared in accordance with U.S. GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. However, we believe these non-GAAP measures provide additional information that enables readers to evaluate our business from the perspective of management. The presentation of this additional information should not be considered a substitute for results prepared in accordance with U.S. GAAP.

The non-GAAP results presented below exclude the impact of non-cash related charges, such as stock-based compensation, amortization of intangible assets, and long-term unrealized foreign exchange gains and losses. In addition, we exclude discontinued operations and other items such as acquisition-related costs, facility, infrastructure, and other transition costs, and restructuring expenses, as they are not indicative of future performance. The tax effect of our non-GAAP adjustments represents the anticipated annual tax rate applied to each non-GAAP adjustment after consideration of their respective book and tax treatments.

Forward-Looking Statements

This press release and statements we make on the above announced conference call contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release or the conference call that are not historical information are forward-looking statements. For example, statements relating to our beliefs, expectations, and plans are forward-looking statements, as are statements that certain actions, conditions, or circumstances will continue. The inclusion of words such as "anticipate," "expect," "estimate," "can," "may," "might," "continue," "enables," "plan," "intend," "should," "could," "would," "likely," "potential," or "believe," and similar expressions and the negative versions thereof indicate forward-looking statements; however, not all forward-looking statements may contain such words or expressions. These forward-looking statements are based upon information available as of the date of this press release and management's current estimates, forecasts, and assumptions. Although we believe that our expectations reflected in or suggested by these forward-looking statements are reasonable, we may not achieve the results, performance, plans, or objectives expressed or implied by such forward-looking statements. Forward-looking statements involve risks and uncertainties, which are difficult to predict and many of which are beyond our control.

Risks and uncertainties to which our forward-looking statements are subject include, but are not limited to: volatility and business fluctuations in the industries in which we compete; our ability to achieve design wins with new and existing customers; our ability to accurately forecast and meet customer demand; risks related to global economic conditions, such as the impact of tariffs and export regulations, escalating global conflicts on macroeconomic conditions, economic uncertainty, market volatility, rising interest rates, inflation, lack of growth in our markets or recession; customer price sensitivity; the U.S. Dollar's change in value against its major peers; concentration of our customer base; risks associated with potential breach of our information security measures, either external breach or internal data theft; difficulties with the implementation of our enterprise resource planning and other enterprise-wide information technology system applications; our loss of or inability to attract and retain key personnel; risks associated with our manufacturing footprint optimization and movement of manufacturing locations for certain products; disruptions to our manufacturing operations or those of our customers or suppliers; our ability to successfully identify, close, integrate and realize anticipated benefits from our acquisitions; quality issues or unanticipated costs in fulfilling our warranty obligations (including our discontinued solar inverter product line), and adequacy of our warranty reserves; risks inherent in our international operations, including the effect of export controls, the impact of tariffs on our supply chain or products we sell, political and geographical risks, and fluctuations in currency exchange rates; our ability to enforce, protect, and maintain our proprietary technology and intellectual property rights; regulatory risk related to our supply chain; legal matters, claims, investigations, and proceedings; changes to tax laws and regulations or our tax rates; changes in federal, state, local and foreign regulations, including with respect to trade compliance, privacy and data protection, supply chain, and environmental regulation; the effect of our debt obligations and restrictive covenants on our ability to operate our business; risks related to our unfunded pension obligations; our estimates of the fair value of intangible assets; the potential impact of dilution related to our convertible debt, hedge, and warrant transactions; and the risks and uncertainties described in Part I, Item 1A, of our Annual Report on Form 10-K for the year ended December 31, 2024.

These risks and uncertainties could cause actual results to differ materially and adversely from those expressed in any forward-looking statements, and readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are made and based on information available to us on the date of this press release. Aspirational goals and targets discussed on the conference call or in the presentation materials should not be interpreted in any respect as guidance. We assume no obligation to update the information in this press release or provide the reasons why our actual results may differ.

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in millions, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024
Revenue, net	$	463.3		$	374.2		$	441.5		$	1,309.4		$	1,066.6
Cost of revenue		288.9			240.1			278.1			821.1			691.9
Gross profit		174.4			134.1			163.4			488.3			374.7
Gross margin %		37.6	%		35.8	%		37.0	%		37.3	%		35.1	%

Operating expenses:
Research and development		59.1			53.6			59.0			172.3			155.7
Selling, general, and administrative		59.8			56.2			60.2			179.0			166.4
Amortization of intangible assets		5.6			6.8			5.6			16.7			20.5
Restructuring, asset impairments, and other charges		0.7			28.5			7.0			8.9			29.3
Total operating expenses		125.2			145.1			131.8			376.9			371.9
Operating income (loss)		49.2			(11.0	)		31.6			111.4			2.8

Interest income		6.6			11.0			6.6			20.1			35.7
Interest expense		(4.2	)		(6.4	)		(4.2	)		(12.6	)		(20.5	)
Other income (expense), net		0.7			(8.1	)		(4.7	)		(7.4	)		(6.1	)
Income (loss) from continuing operations, before income tax		52.3			(14.5	)		29.3			111.5			11.9
Income tax provision (benefit)		5.9			(0.4	)		3.8			14.7			4.6
Income (loss) from continuing operations		46.4			(14.1	)		25.5			96.8			7.3
Loss from discontinued operations, net of income tax		(0.2	)		(0.8	)		(0.3	)		(0.7	)		(2.0	)
Net income (loss)	$	46.2		$	(14.9	)	$	25.2		$	96.1		$	5.3

Basic weighted-average common shares outstanding		37.6			37.5			37.6			37.6			37.5
Diluted weighted-average common shares outstanding		38.5			37.5			37.8			38.1			37.8

Earnings (loss) per share:

Continuing operations:
Basic earnings per share	$	1.23		$	(0.38	)	$	0.68		$	2.57		$	0.19
Diluted earnings per share	$	1.21		$	(0.38	)	$	0.67		$	2.54		$	0.19

Discontinued operations:
Basic loss per share	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.02	)	$	(0.05	)
Diluted loss per share	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.02	)	$	(0.05	)

Net income:
Basic earnings per share	$	1.23		$	(0.40	)	$	0.67		$	2.56		$	0.14
Diluted earnings per share	$	1.20		$	(0.40	)	$	0.67		$	2.52		$	0.14

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in millions)

	September 30,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	758.6	$	722.1
Accounts receivables, net		299.5		265.3
Inventories		399.7		360.4
Other current assets		44.9		41.5
Total current assets		1,502.7		1,389.3

Property and equipment, net		239.8		185.6
Operating lease right-of-use assets		102.6		96.3
Other assets		169.2		155.3
Goodwill and intangible assets, net		423.8		435.4
Total assets	$	2,438.1	$	2,261.9

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
Accounts payable	$	194.7	$	143.5
Other accrued expenses		153.9		153.0
Current portion of operating lease liabilities		17.9		17.8
Total current liabilities		366.5		314.3

Long-term debt		566.8		564.7
Other long-term liabilities		190.7		176.3
Long-term liabilities		757.5		741.0

Total liabilities		1,124.0		1,055.3
Deferred compensation		6.9		3.5

Total stockholders' equity		1,307.2		1,203.1
Total liabilities and stockholders' equity	$	2,438.1	$	2,261.9

ADVANCED ENERGY INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in millions)

	Nine Months Ended September 30,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	96.1		$	5.3
Less: loss from discontinued operations, net of income tax		(0.7	)		(2.0	)
Income from continuing operations, net of income tax		96.8			7.3

Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization		46.8			51.8
Stock-based compensation		41.2			34.2
Amortization and write off of debt issuance costs and debt discount		2.4			3.0
Deferred income tax benefit		—			0.3
Impairment charge on long-lived assets		1.8			—
Other		(3.7	)		1.3
Changes in operating assets and liabilities, net of assets acquired		(30.7	)		(47.5	)
Net cash from operating activities from continuing operations		154.6			50.4
Net cash from operating activities from discontinued operations		(1.8	)		(2.2	)
Net cash from operating activities		152.8			48.2

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of long-term investments		(2.0	)		(2.7	)
Purchases of property and equipment		(69.9	)		(44.0	)
Acquisitions, net of cash acquired		—			(13.8	)
Net cash from investing activities		(71.9	)		(60.5	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of debt issuance costs		(1.9	)		(0.1	)
Dividend payments		(11.6	)		(11.6	)
Payments on long-term borrowings		—			(355.0	)
Proceeds from sale of warrants		(1.5	)		—
Purchase and retirement of common stock		(23.7	)		(1.8	)
Net payments related to stock-based awards		(8.3	)		(6.0	)
Net cash from financing activities		(47.0	)		(374.5	)

EFFECT OF CURRENCY TRANSLATION ON CASH		2.6			(0.4	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		36.5			(387.2	)
CASH AND CASH EQUIVALENTS, beginning of period		722.1			1,044.6
CASH AND CASH EQUIVALENTS, end of period	$	758.6		$	657.4

ADVANCED ENERGY INDUSTRIES, INC. SUPPLEMENTAL INFORMATION (UNAUDITED) (in millions)

Net Revenue by Market	Three Months Ended						Nine Months Ended
	September 30,				June 30,		September 30,
	2025		2024		2025		2025		2024
Semiconductor Equipment	$	196.6	$	197.5	$	209.5	$	628.3	$	565.7
Industrial and Medical		71.2		76.9		68.6		204.1		239.4
Data Center Computing		171.6		80.6		141.6		409.4		195.5
Telecom and Networking		23.9		19.2		21.8		67.6		66.0
Total	$	463.3	$	374.2	$	441.5	$	1,309.4	$	1,066.6

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions)

Reconciliation of non-GAAP measures
Non-GAAP gross profit, gross margin, operating expenses, operating income,	Three Months Ended									Nine Months Ended
and operating margin	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024
Gross profit from continuing operations, as reported	$	174.4		$	134.1		$	163.4		$	488.3		$	374.7
Adjustments to gross profit:
Stock-based compensation		1.3			1.0			1.2			3.6			2.9
Facility, infrastructure, and other transition costs		5.5			0.9			3.5			10.8			2.4
Acquisition-related costs		—			—			—			—			(0.1	)
Non-GAAP gross profit		181.2			136.0			168.1			502.7			379.9

GAAP gross margin		37.6	%		35.8	%		37.0	%		37.3	%		35.1	%
Non-GAAP gross margin		39.1	%		36.3	%		38.1	%		38.4	%		35.6	%

Operating expenses from continuing operations, as reported		125.2			145.1			131.8			376.9			371.9
Adjustments:
Amortization of intangible assets		(5.6	)		(6.8	)		(5.6	)		(16.7	)		(20.5	)
Stock-based compensation		(13.3	)		(10.9	)		(12.4	)		(37.6	)		(31.3	)
Acquisition-related costs		(1.2	)		(1.6	)		(1.8	)		(4.0	)		(4.8	)
Facility, infrastructure, and other transition costs		(1.0	)		(0.5	)		(1.4	)		(4.1	)		(0.5	)
Restructuring, asset impairments, and other charges		(0.7	)		(28.5	)		(7.0	)		(8.9	)		(29.3	)
Non-GAAP operating expenses		103.4			96.8			103.6			305.6			285.5
Non-GAAP operating income	$	77.8		$	39.2		$	64.5		$	197.1		$	94.4

GAAP operating income	$	49.2		$	(11.0	)	$	31.6		$	111.4		$	2.8
Adjustments to gross profit		6.8			1.9			4.7			14.4			5.2
Adjustments to operating expenses		21.8			48.3			28.2			71.3			86.4
Non-GAAP operating income	$	77.8		$	39.2		$	64.5		$	197.1		$	94.4

GAAP income from continuing operations	$	46.4		$	(14.1	)	$	25.5		$	96.8		$	7.3
GAAP operating margin		10.6	%		(2.9	)%		7.2	%		8.5	%		0.3	%
Non-GAAP operating margin		16.8	%		10.5	%		14.6	%		15.1	%		8.9	%

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions, except per share data)

Reconciliation of non-GAAP measure	Three Months Ended									Nine Months Ended
Non-GAAP income, net of income tax	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024
Income from continuing operations, net of income tax	$	46.4		$	(14.1	)	$	25.5		$	96.8		$	7.3
Adjustments:
Amortization of intangible assets		5.6			6.8			5.6			16.7			20.5
Acquisition-related costs		1.2			1.6			1.8			4.0			4.7
Facility, infrastructure, and other transition costs		6.5			1.4			4.9			14.9			2.9
Restructuring, asset impairments, and other charges		0.7			28.5			7.0			8.9			29.3
Unrealized foreign currency loss (gain)		(1.3	)		4.0			4.4			4.7			0.8
Other costs included in other income (expense), net		—			3.7			0.2			0.2			3.7
Stock-based compensation		14.6			11.9			13.6			41.2			34.2
Tax effect of non-GAAP adjustments, including certain discrete tax benefits		(7.3	)		(6.7	)		(6.4	)		(17.5	)		(12.3	)
Non-GAAP income, net of income tax	$	66.4		$	37.1		$	56.6		$	169.9		$	91.1

Reconciliation of non-GAAP measure	Three Months Ended									Nine Months Ended
Non-GAAP diluted weighted-average common shares	September 30,						June 30,			September 30,
	2025			2024			2025			2025			2024
Diluted weighted-average common shares outstanding		38.5			37.5			37.8			38.1			37.8
Dilutive effect of stock awards		—			0.4			—			—			—
Dilutive effect of convertible note		(0.4	)		—			—			(0.1	)		—
Non-GAAP diluted weighted-average common shares outstanding		38.1			37.9			37.8			38.0			37.8


Reconciliation of non-GAAP measure	Three Months Ended							Nine Months Ended
Non-GAAP earnings per share	September 30,					June 30,		September 30,
	2025		2024			2025		2025		2024
Diluted earnings per share from continuing operations, as reported	$	1.21	$	(0.38	)	$	0.67	$	2.54	$	0.19
Add back:
Per share impact of non-GAAP adjustments, net of tax		0.53		1.36			0.83		1.93		2.22
Non-GAAP earnings per share	$	1.74	$	0.98		$	1.50	$	4.47	$	2.41

ADVANCED ENERGY INDUSTRIES, INC. SELECTED OTHER DATA (UNAUDITED) (in millions, except per share data)

	Three Months Ended									Nine Months Ended
Reconciliation of non-GAAP measure	September 30,						June 30,			September 30,
Non-GAAP provision for income taxes	2025			2024			2025			2025			2024
Provision (benefit) for income taxes, as reported	$	5.9		$	(0.4	)	$	3.8		$	14.7		$	4.6
Adjustment:
Non-GAAP items and other discrete tax items excluding stock-based compensation		4.2			4.2			3.5			8.8			5.1
Tax effect of stock-based compensation		3.1			2.5			2.9			8.7			7.2
Non-GAAP provision for income taxes	$	13.2		$	6.3		$	10.2		$	32.2		$	16.9


	Three Months Ended									Nine Months Ended
Reconciliation of non-GAAP measure	September 30,						June 30,			September 30,
Non-GAAP income before income taxes	2025			2024			2025			2025			2024
Income (loss) from continuing operations, before income tax	$	52.3		$	(14.5	)	$	29.3		$	111.5		$	11.9
Adjustments:
Amortization of intangible assets		5.6			6.8			5.6			16.7			20.5
Stock-based compensation		14.6			11.9			13.6			41.2			34.2
Acquisition-related costs		1.2			1.6			1.8			4.0			4.7
Facility, infrastructure, and other transition costs		6.5			1.4			4.9			14.9			2.9
Restructuring, asset impairments, and other charges		0.7			28.5			7.0			8.9			29.3
Unrealized foreign currency loss (gain)		(1.3	)		4.0			4.4			4.7			0.8
Other costs included in other income (expense), net		—			3.7			0.2			0.2			3.7
Non-GAAP income before income taxes	$	79.6		$	43.4		$	66.8		$	202.1		$	108.0
Effective tax rate, as reported		11.3	%		2.8	%		13.0	%		13.2	%		38.7	%
Non-GAAP effective tax rate		16.6	%		14.5	%		15.3	%		15.9	%		15.6	%


Reconciliation of Q4 2025 Guidance
	Low End			High End

Revenue	$450 million			$490 million

Reconciliation of non-GAAP earnings per share
GAAP earnings per share	$	0.87		$	1.37
Stock-based compensation		0.39			0.39
Amortization of intangible assets		0.14			0.14
Restructuring expenses and other costs		0.26			0.26
Tax effects of excluded items		(0.16	)		(0.16	)
Non-GAAP earnings per share	$	1.50		$	2.00

View source version on businesswire.com: https://www.businesswire.com/news/home/20251104115461/en/

For more information, contact:

Andrew Huang

Advanced Energy Industries, Inc.

970-407-6555

ir@aei.com

Q4 2025

$470 million +/- $20 million

GAAP EPS from continuing operations

$1.12 +/- $0.25

Non-GAAP EPS

$1.75 +/- $0.25

Advanced Energy Reports Third Quarter 2025 Results