# ADVANCED ENERGY INDUSTRIES INC (AEIS)

Informational only - not investment advice.

CIK: 0000927003
SIC: 3679 Electronic Components, NEC
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3679 Electronic Components, NEC](/industry/3679/)
Latest 10-K filed: 2026-02-13
SEC page: https://www.sec.gov/edgar/browse/?CIK=927003
Filing source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-13 · accession 0001104659-26-014731 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000927003.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 1,798,800,000 USD | 2025 | verified |
| Net income | 148,400,000 USD | 2025 | verified |
| Assets | 2,545,800,000 USD | 2025 | verified |
| Free cash flow | 125,900,000 USD | 2025 | computed |
| Net margin | 8.25% | 2025 | computed |
| Operating margin | 9.34% | 2025 | computed |
| Revenue YoY | +21.38% | 2025 | computed |
| ROE | 10.89% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AEIS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 8.2% | 4.4% | 62 | 135 |
| Operating margin | 9.3% | 4.4% | 61 | 128 |
| Revenue growth | 21.4% | 10.2% | 69 | 142 |
| FCF margin | 7.0% | 8.0% | 45 | 138 |
| ROE | 10.9% | 5.4% | 60 | 136 |
| ROA | 5.8% | 2.7% | 65 | 143 |
| Liabilities / equity | 0.86 | 0.81 | 53 | 138 |
| Current ratio | 1.59 | 2.59 | 16 | 144 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 1798800000 | USD | 2025 | 2026-02-13 |
| Net income | 148400000 | USD | 2025 | 2026-02-13 |
| Assets | 2545800000 | USD | 2025 | 2026-02-13 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000927003.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 483,704,000 | 671,012,000 | 718,892,000 | 788,948,000 | 1,415,826,000 | 1,455,954,000 | 1,845,422,000 | 1,655,800,000 | 1,482,000,000 | 1,798,800,000 |
| Net income |  | 127,454,000 | 137,861,000 | 147,111,000 | 64,975,000 | 134,730,000 | 134,780,000 | 199,676,000 | 128,300,000 | 54,200,000 | 148,400,000 |
| Operating income |  | 126,857,000 | 200,770,000 | 171,553,000 | 54,388,000 | 176,023,000 | 151,681,000 | 233,095,000 | 113,700,000 | 36,600,000 | 168,000,000 |
| Gross profit |  | 253,147,000 | 356,381,000 | 365,607,000 | 315,652,000 | 541,869,000 | 532,322,000 | 675,506,000 | 592,400,000 | 529,300,000 | 677,400,000 |
| Diluted EPS |  | 3.18 | 3.43 | 3.74 | 1.69 | 3.50 | 3.51 | 5.29 | 3.40 | 1.43 | 3.84 |
| Operating cash flow |  | 119,287,000 | 182,701,000 | 151,271,000 | 48,392,000 | 201,236,000 | 140,245,000 | 183,587,000 | 208,900,000 | 130,800,000 | 233,300,000 |
| Capital expenditures |  | 6,821,000 | 9,042,000 | 20,330,000 | 25,188,000 | 36,364,000 | 28,817,000 | 58,885,000 | 61,000,000 | 56,800,000 | 107,400,000 |
| Dividends paid |  |  |  |  |  |  | 15,385,000 | 15,204,000 | 15,200,000 | 15,400,000 | 15,600,000 |
| Share buybacks | 50,000,000 | 0.00 | 29,993,000 | 95,125,000 |  | 11,630,000 | 78,125,000 | 26,635,000 | 40,000,000 | 1,800,000 | 30,200,000 |
| Assets |  | 571,529,000 | 767,905,000 | 816,484,000 | 1,532,406,000 | 1,647,662,000 | 1,817,340,000 | 1,992,168,000 | 2,556,757,000 | 2,261,900,000 | 2,545,800,000 |
| Liabilities |  | 179,455,000 | 214,731,000 | 209,182,000 | 855,146,000 | 832,322,000 | 945,844,000 | 925,901,000 | 1,412,575,000 | 1,055,300,000 | 1,175,200,000 |
| Stockholders' equity |  | 392,074,000 | 520,641,000 | 606,790,000 | 676,714,000 | 814,739,000 | 870,851,000 | 1,066,100,000 | 1,144,100,000 | 1,203,100,000 | 1,362,800,000 |
| Cash and cash equivalents |  | 281,953,000 | 407,283,000 | 349,301,000 | 346,441,000 | 480,368,000 | 544,372,000 | 458,818,000 | 1,044,556,000 | 722,100,000 | 791,200,000 |
| Free cash flow |  | 112,466,000 | 173,659,000 | 130,941,000 | 23,204,000 | 164,872,000 | 111,428,000 | 124,702,000 | 147,900,000 | 74,000,000 | 125,900,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 26.35% | 20.55% | 20.46% | 8.24% | 9.52% | 9.26% | 10.82% | 7.75% | 3.66% | 8.25% |
| Operating margin |  | 26.23% | 29.92% | 23.86% | 6.89% | 12.43% | 10.42% | 12.63% | 6.87% | 2.47% | 9.34% |
| Return on equity |  | 32.51% | 26.48% | 24.24% | 9.60% | 16.54% | 15.48% | 18.73% | 11.21% | 4.51% | 10.89% |
| Return on assets |  | 22.30% | 17.95% | 18.02% | 4.24% | 8.18% | 7.42% | 10.02% | 5.02% | 2.40% | 5.83% |
| Liabilities / equity |  | 0.46 | 0.41 | 0.34 | 1.26 | 1.02 | 1.09 | 0.87 | 1.23 | 0.88 | 0.86 |
| Current ratio |  | 4.61 | 5.65 | 5.15 | 2.71 | 3.31 | 3.14 | 3.02 | 5.10 | 4.42 | 1.59 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AEIS/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000927003.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.97 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.82 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.72 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 27,140,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 409,991,000 |  | 0.86 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 405,271,000 | 37,502,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 327,475,000 | 5,216,000 | 0.14 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 5,216,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 364,947,000 |  | 0.40 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 15,029,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 374,217,000 |  | -0.40 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 415,403,000 | 48,874,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 404,600,000 | 24,700,000 | 0.65 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 24,700,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 441,500,000 |  | 0.67 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 25,200,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 463,300,000 |  | 1.20 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 489,400,000 | 52,300,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 511,000,000 | 66,800,000 | 1.58 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 66,800,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 574,100,000 |  | 1.28 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AEIS's latest 10-K: [/company/AEIS/business/](/company/AEIS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AEIS's latest 10-K: [/company/AEIS/risk-factors/](/company/AEIS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/927003/000092700326000032/aeis-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-03
Report date: 2026-06-30

ITEM 2.       MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This management discussion and analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025, which was filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026 (the “2025 Form 10-K”).

Special Note on Forward-Looking Statements

This Quarterly Report on Form 10-Q (this “report”) contains, 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 (the “Exchange Act”). Statements in this report 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, events, or circumstances will continue. The inclusion of words such as “anticipate,” “expect,” “estimate,” “can,” “may,” “might,” “continue,” “enable,” “plan,” “intend,” “should,” “could,” “would,” “will,” “likely,” “potential,” “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 report 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:

[[GREPCENT_TABLE]]
[["","\u25cf","volatility, cyclicality, and business fluctuations in the industries in which we compete;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks associated with availability and price of certain semiconductor and other components which may be in limited supply relative to global demand;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks related to geopolitical conditions, such as the impact of tariffs and export regulations, and escalating global conflicts on macroeconomic conditions, including recent developments in the Middle East;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","macroeconomic conditions such as economic uncertainty, rising interest rates, inflation, lack of growth in our markets, fluctuations in commodity prices and currency exchange rates, and recession;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to achieve design wins with new and existing customers;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to accurately forecast and meet customer demand;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks associated with scaling our manufacturing capacity, timely customer qualification of new manufacturing lines, improving our manufacturing efficiency, and controlling manufacturing costs;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","pricing pressure from customers and competitors;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","concentration of our customer base;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks associated with potential breach of our information security measures\u2014 either external breach or internal data theft;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","difficulties with the implementation of our enterprise resource planning and other enterprise-wide information technology system applications;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our loss of or inability to attract and retain key personnel;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks associated with our manufacturing footprint optimization and movement of manufacturing locations for certain products;"]]
[[/GREPCENT_TABLE]]

26

Table of Contents

[[GREPCENT_TABLE]]
[["","\u25cf","disruptions to our manufacturing operations or those of our customers or suppliers;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to successfully identify, close, integrate and realize anticipated benefits from our acquisitions or divestitures;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","quality issues, unanticipated costs in fulfilling our warranty obligations or adequacy of our warranty reserves, claims outside of warranty, or product liability claims;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our ability to enforce, protect and maintain our proprietary technology and intellectual property rights and avoid claims alleging infringement of the intellectual property rights of others;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","legal matters, claims, investigations, and proceedings;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","changes to tax laws and regulations or our tax rates;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","changes to and maintaining compliance with U.S. federal, state, local and foreign regulations, including with respect to trade compliance, privacy and data protection, supply chain, and environmental, health and safety regulation;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","effect of our debt obligations and restrictive covenants on our ability to operate our business;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks related to our unfunded pension obligations;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","our estimates of the fair value of intangible assets;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the potential impact of dilution and counterparty default risk related to our convertible debt, hedge, warrant and capped call transactions;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","risks relating to ownership of our common stock; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","the risks and uncertainties described in Part I, Item 1A in the 2025 Form 10-K."]]
[[/GREPCENT_TABLE]]

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. We assume no obligation to update any forward-looking statements or provide reasons why our actual results may differ.

27

Table of Contents

BUSINESS AND MARKET OVERVIEW

Company Overview

Advanced Energy provides highly engineered, critical, precision power conversion, measurement, and control solutions to our global customers. We design, manufacture, sell, and service precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of highly controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a wide range of complex equipment. Many of our products enable customers to reduce or optimize their energy consumption through increased power conversion efficiency, power density, power coupling, and process control across a wide range of applications.

We are organized on a global, functional basis and operate as a single segment of power electronics conversion products. Within this segment, our products are sold in the Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking markets.

Recent Events

On May 18, 2026, we completed a private, unregistered offering of $1.15 billion aggregate principal amount of 0% Convertible Notes due 2031 (the “2031 Notes”), and received net proceeds of approximately $1,128.1 million after deducting initial purchasers’ discounts and offering expenses. Concurrent with the issuance of the 2031 Notes, we also entered into privately negotiated exchange agreements on a portion of our outstanding 2.5% Convertible Notes due 2028 (the “2028 Notes”) and exchanged an aggregate of approximately $438.3 million principal amount for aggregate consideration consisting of approximately $442.4 million in cash and approximately 2.0 million shares of common stock. We intend to use the remainder of the net proceeds from the offering for general corporate purposes and debt repayment.

On June 12, 2026, we issued a notice of redemption for the remaining $136.7 million principal amount of the 2028 Notes and set a redemption date of September 23, 2026. The redemption price will equal 100% of the principal amount plus accrued and unpaid interest. Holders of the 2028 Notes that wish to convert their 2028 Notes must surrender their 2028 Notes for conversion prior to the close of business on September 22, 2026. The Company is electing to settle conversions of the 2028 Notes by paying cash in respect of the principal portion of the converted 2028 Notes and delivering shares of common stock in respect of the remainder (other than cash in lieu of any fractional share). As of the date of the redemption notice, each $1,000 principal amount of the 2028 Notes is convertible into common stock at a conversion price of approximately $137.46 (based on the Conversion Rate of 7.2747 shares of common stock per $1,000 principal amount of Notes, as adjusted). For 2028 Notes converted in connection with the redemption notice, the conversion rate will be increased by 0.0743 additional shares of common stock per $1,000 principal amount of the 2028 Notes in accordance with the applicable indenture.

See Note 6. Long-Term Debt in Part I, Item 1 “Unaudited Consolidated Financial Statements” above and the Liquidity and Capital Resources section of this Item 2 below.

Product and Services

Our precision power products and solutions are designed to enable process technologies, improve productivity, lower the cost of ownership, and/or provide critical power capabilities for our customers.

Our plasma power products enable innovation in complex semiconductor and thin film plasma processes such as dry etch and deposition. Our broad portfolio of high and low voltage power products is used in a wide range of applications, such as semiconductor equipment, data center computing, industrial production, medical and life science equipment, aerospace and defense, networking, and telecommunications.

Our network of global service support centers provides repair services, calibration, conversions, upgrades, refurbishments, and used equipment to companies that use our products.

End Markets Summary and Trends

28

Table of Contents

Our business and results of operations continue to be influenced by a dynamic global trade, geopolitical, and supply chain environment. We continue to monitor developments related to tariffs and trade policy. In addition, heightened geopolitical instability, including the conflicts in the Middle East, has contributed to volatility in energy markets, disruptions to global shipping, and broader macroeconomic uncertainty. Increased demand relative to supply for AI-related equipment and semiconductors is extending lead times and increasing prices of certain components, impacting both timing of some customer demand and many of our suppliers. We continue to take actions to procure strategic supply of materials and endeavor to recover increased costs through pricing actions. While these factors were not material to our results in the current quarter, they could become material in future periods and adversely affect our costs such as higher energy and supply chain costs, as well as negatively impact our ability to sell our products and pr

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/927003/000110465926014731/aeis-20251231x10k.htm
Complete FY 2025 MD&A: /company/AEIS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-13
Report date: 2025-12-31

ITEM 7.            MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain statements set forth below under this caption constitute forward-looking statements. See “Special Note Regarding Forward-Looking Statements” in this annual report on Form 10-K for additional factors relating to such statements and see “Risk Factors” in Part I, Item 1A for a discussion of certain risks applicable to our business, financial condition, and results of operations.

The following section discusses our results of operations for 2025 and 2024 and year-to-year comparisons between those periods.

Company Overview

Advanced Energy provides highly engineered, critical, precision power conversion, measurement, and control solutions to our global customers. We design, manufacture, sell and service precision power products that transform, refine, and modify the raw electrical power coming from either the utility or the building facility and convert it into various types of highly controllable, usable power that is predictable, repeatable, and customizable to meet the necessary requirements for powering a wide range of complex equipment. Many of our products enable customers to reduce or optimize their energy consumption through increased power conversion efficiency, power density, power coupling, and process control across a wide range of applications.

We are organized on a global, functional basis and operate as a single segment of power electronics conversion products. Within this segment, our products are sold in the Semiconductor Equipment, Data Center Computing, Industrial and Medical, and Telecom and Networking markets.

Business Environment and Trends

2025 Summary Results and Key Activities

For the year ended December 31, 2025, our revenue was $1,798.8 million, representing an increase of 21.4% as compared to 2024. The increase was primarily attributable to more than doubling of revenue from the Data Center Computing market. For more details on the trends in our end markets, see “End Markets Summary and Trends” below.

In 2025, we increased gross margin and gross profit largely as a result of executing our manufacturing cost improvement program and higher revenue. We reported higher operating expenses of $509.4 million, an increase of $16.7 million from 2024 primarily attributable to higher research and development program costs, higher compensation costs related to stock-based compensation and annual merit increases, partially offset by lower restructuring charges driven by the timing of our restructuring plan decisions.

Throughout 2025 we managed tariffs affecting AE announced by the U.S. government and continue to evaluate the impact of any additional tariffs or other trade policy measures on our supply chain or on our customers. While the tariff impact was not material to our results in 2025, the effects could be material in future periods as any further tariff, export control, trade restrictions, policy measures, and retaliatory responses to the U.S. trade policy announcements, or any related macroeconomic effects could adversely impact our product demand, production costs, or ability to sell our products and provide services.

During 2025, we continued to execute the 2024 Plan. Manufacturing operations in Zhongshan ceased during the second quarter of 2025. Final site closure activities are in progress and are expected to conclude in 2026. During the second quarter of 2025, we also approved actions related to consolidating our research and development, sales, and administrative functions in connection with our manufacturing and footprint consolidation. We expect these actions to be substantially complete during 2027 and do not expect to incur significant additional charges. See Note 11. Restructuring, Asset Impairments, and Other Charges in Part II, Item 8 “Financial Statements and Supplementary Data.” We also continued progress on a new factory in Thailand.

​

33

Table of Contents

During the second quarter of 2025, we terminated our prior credit agreement, dated as of September 10, 2019 (and subsequently amended) and entered into a new credit agreement consisting of a senior unsecured term loan and a senior unsecured revolving facility, both maturing on May 8, 2030. See Note 7. Long-Term Debt in Part II, Item 8 “Financial Statements and Supplementary Data” and Liquidity and Capital Resources below.

End Markets Summary and Trends

Advanced Energy generates revenue from the sale of a broad range of advanced and system power products and services to global original equipment manufacturers (“OEMs”), distributors, and end customers. Our customers select our products based on various performance metrics such as high power conversion efficiency, high power density, and low noise emission, and lower power consumption, as well as our ability to tailor our solutions to meet the unique requirements of their critical applications. The future growth and demand for our products is driven by a combination of factors within each of the end markets we serve, as follows:

Semiconductor Equipment Market

The Semiconductor Equipment market supports and enables the long-term need for production capacity and new process technologies to meet demand for semiconductor devices across many applications driven by megatrends such as artificial intelligence (“AI”), energy efficiency, automobile electrification, and Internet of things.

Our portfolio of power conversion and related products sold into this market includes plasma power, high-voltage power, system power, and adjacent sensing solutions. Our plasma power solutions are used to create plasma-based etch and deposition processes. Our semiconductor market products are incorporated into a wide range of applications, including dry etch and strip, deposition, ion implant, inspection and metrology, thermal, epitaxy, and back-end test and packaging.

In 2025, the Semiconductor Equipment market continued to be driven by demand for leading-edge devices in logic and memory used in AI applications, partially offset by lower trailing-edge logic demand due to capacity underutilization, particularly in China, U.S. export restrictions to China, and the impact of tariffs. However, end market conditions started to improve in the fourth quarter of 2025. We expect these improving conditions to continue into 2026 and to accelerate demand for our products in the second half of the year.

Data Center Computing Market

The Data Center Computing market is being driven by the rapid growth of AI and related investments. The accelerated power rating of next-generation AI processors and increased density of AI processors in each IT rack have significantly increased the power requirements for AI-based servers and racks which, in turn, increased the importance of high power efficiency, density, and reliability for server rack power solutions.

Our products are designed into data center server and storage systems and are also used by cloud service providers and their partners in their custom designed server racks and power shelves.

Due to increased investments in AI applications by leading hyperscale customers, along with adoption of our next- generation high-power solutions, our revenue in the Data Center Computing market more than doubled in 2025.

We expect continued investments and adoption of newer, higher power solutions for AI-related applications will continue to support robust demand in 2026.

​

34

Table of Contents

Industrial and Medical Market

The Industrial and Medical market is fueled by continued investment in complex manufacturing processes, increased adoption of new industrial technologies such as automation and clean energy, and increased breadth and precision requirements of medical devices and life science equipment.

We supply this market with critical, precision power conversion products that deliver precise and highly reliable, low noise and/or differentiated power. In addition, our sensing, control, and instrumentation products complement our power solutions. Our products are used in a wide variety of applications, such as advanced material fabrication, medical devices, life science, test and measurement equipment, robotics, industrial production, defense, aerospace, and large-scale lighting applications.

We believe that the Industrial and Medical market began to recover starting in the second quarter of 2025 following a major industry downturn as a result of macroeconomic conditions and supply chain disruptions from prior years. The positive trend continued in the second half of 2025 as customer inventories approached normalized levels. We expect this trend to continue in 2026, paced by overall economic conditions.

Telecom and Networking Market

Demand in the Telecommunication and Networking market is driven by adoption of more advanced mobile standards, such as 5G technologies, networking investments by telecommunication service providers, enterprises upgrading their communication networks, and data centers investing in their networks for AI-driven increased bandwidth.

We serve this market by providing application-specific power conversion products to many leading OEMs of wireless infrastructure equipment and computer networking equipment.

End demand in the Telecom and Networking market remained stable in 2025, and we expect current market conditions to continue in 2026, with some potential for improvement driven by AI-related demand.

35

Table of Contents

Results of Continuing Operations

The analysis presented below is organized to provide the information we believe will be helpful for understanding of our historical performance and relevant trends going forward and should be read in conjunction with our consolidated financial statements, including the notes thereto, in Part II, Item 8 “Financial Statements and Supplementary Data” of this annual report on Form 10-K. Also included in the following analysis are measures that are not in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). A reconciliation of the non-GAAP measures to U.S. GAAP is provided below.

The following table summarizes our Consolidated Statements of Operations and as a percentage of revenue:

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Year Ended December 31,","\u200b"],["\u200b","\u200b","2025","\u200b","\u200b","2024","\u200b"],["\u200b","\u200b","(in millions)","\u200b"],["Revenue","\u200b","$","1,798.8","\u200b","100.0","%","\u200b","$","1,482.0","\u200b","100.0","%"],["Gross profit","\u200b","","677.4","\u200b","37.7","\u200b","\u200b","","529.3","\u200b","35.7","\u200b"],["Operating expenses","\u200b","","509.4","\u200b","28.3","\u200b","\u200b","","492.7","\u200b","33.2","\u200b"],["Operating income from continuing operations","\u200b","","168.0","\u200b","9.3","\u200b","\u200b","","36.6","\u200b","2.5","\u200b"],["Interest income","\u200b","\u200b","26.6","\u200b","1.5","\u200b","\u200b","\u200b","42.9","\u200b","2.9","\u200b"],["Interest expense","\u200b","\u200b","(16.7)","\u200b","(0.9)","\u200b","\u200b","\u200b","(25.1)","\u200b","(1.7)","\u200b"],["Other expense, net","\u200b","","(9.2)","\u200b","(0.5)","\u200b","\u200b","","(2.0)","\u200b","(0.1)","\u200b"],["Income from continuing operations, before income tax","\u200b","","168.7","\u200b","9.4","\u200b","\u200b","","52.4","\u200b","3.5","\u200b"],["Income tax provision (benefit)","\u200b","","19.4","\u200b","1.1","\u200b","\u200b","","(3.9)","\u200b","(0.3)","\u200b"],["Income from continuing operations","\u200b","$","149.3","\u200b","8.3","%","\u200b","$","56.3","\u200b","3.8","%"]]
[[/GREPCENT_TABLE]]

​

​

36

Table of Contents

Revenue

The following tables summarize net revenue and percentages of revenue by markets:

​

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AEIS/mda/fy2025/
All MD&A years: /company/AEIS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AEIS/mda/fy2024/): filed 2025-02-18; accession 0001558370-25-001038 (https://www.sec.gov/Archives/edgar/data/927003/000155837025001038/aeis-20241231x10k.htm)
- [FY 2023 MD&A](/company/AEIS/mda/fy2023/): filed 2024-02-20; accession 0000927003-24-000003 (https://www.sec.gov/Archives/edgar/data/927003/000092700324000003/aeis-20231231x10k.htm)
- [FY 2022 MD&A](/company/AEIS/mda/fy2022/): filed 2023-02-17; accession 0001558370-23-001498 (https://www.sec.gov/Archives/edgar/data/927003/000155837023001498/aeis-20221231x10k.htm)
- [FY 2021 MD&A](/company/AEIS/mda/fy2021/): filed 2022-03-16; accession 0001558370-22-003725 (https://www.sec.gov/Archives/edgar/data/927003/000155837022003725/aeis-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3679 Electronic Components, NEC) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AEIS.md · JSON record: /company/AEIS.json · verified financials: /company/AEIS/financials.json / /company/AEIS/financials.csv · machine TOC for the whole site: /llms.txt