Advanced Energy Industries Inc 10-Q for FY2025 Q1

Advanced Energy Industries Inc (AEIS)

10-Q 2025-04-30 For: 2025-03-31

Added on April 11, 2026

About this 10-Q

Advanced Energy Industries Inc filed this 10-Q on April 30, 2025, covering the quarter ended March 31, 2025 (FY2025 Q1).

Headline figures

Quarter ended March 31, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $404.6M; up 23.5% from $327.5M a year earlier
Net income: $24.7M; up 357.4% from net income of $5.4M a year earlier
Diluted EPS: $0.65; up 364.3% from $0.14 a year earlier

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☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended March 31, 2025
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from to

Delaware	84-0846841
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1595 Wynkoop Street, Suite 800, Denver, Colorado	80202
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AEIS	Nasdaq Global Select Market



	PART I FINANCIAL INFORMATION

ITEM 1.	UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	3

	Consolidated Balance Sheets	3

	Consolidated Statements of Operations	4

	Consolidated Statements of Comprehensive Income (Loss)	5

	Consolidated Statements of Stockholders’ Equity	6

	Consolidated Statements of Cash Flows	7

	Notes to Consolidated Financial Statements	8

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	35

ITEM 4.	CONTROLS AND PROCEDURES	36

	PART II OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	36

ITEM 1A.	RISK FACTORS	36

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	37

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	37

ITEM 4.	MINE SAFETY DISCLOSURES	37

ITEM 5.	OTHER INFORMATION	37

ITEM 6.	EXHIBITS	38

	SIGNATURES	39


	March 31,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	723.0	$	722.1
Accounts receivable, net		276.7		265.3
Inventories		368.8		360.4
Other current assets		45.7		41.5
Total current assets		1,414.2		1,389.3
Property and equipment, net		193.8		185.6
Operating lease right-of-use assets		104.4		96.3
Other assets		158.5		155.3
Intangible assets, net		134.0		139.4
Goodwill		297.3		296.0
TOTAL ASSETS	$	2,302.2	$	2,261.9

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	156.7	$	143.5
Accrued payroll and employee benefits		47.6		67.9
Other accrued expenses		81.5		73.6
Customer deposits and other		14.2		11.5
Current portion of operating lease liabilities		19.2		17.8
Total current liabilities		319.2		314.3
Long-term debt, net		565.4		564.7
Operating lease liabilities		96.7		89.2
Defined employee benefit pension plan		51.4		49.6
Other long-term liabilities		35.1		37.5
Total liabilities		1,067.8		1,055.3

Deferred compensation		4.1		3.5
Commitments and contingencies (Note 14)

Stockholders' equity:
Preferred stock, $0.001 par value, 1.0 shares authorized, none issued and outstanding		—		—
Common stock, $0.001 par value, 70.0 shares authorized; 37.9 and 37.7 issued and outstanding at March 31, 2025 and December 31, 2024, respectively		—		—
Common stock associated with deferred compensation plan		(2.6)		(0.9)
Additional paid-in capital		193.3		189.1
Accumulated other comprehensive loss		(7.3)		(11.8)
Retained earnings		1,046.9		1,026.7
Total stockholders' equity		1,230.3		1,203.1
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,302.2	$	2,261.9



	Three Months Ended March 31,
	2025		2024
Revenue, net	$	404.6	$	327.5
Cost of revenue		254.1		214.6
Gross profit		150.5		112.9

Operating expenses:
Research and development		54.2		49.8
Selling, general, and administrative		59.0		55.1
Amortization of intangible assets		5.5		6.9
Restructuring, asset impairments, and other charges		1.2		0.2
Total operating expenses		119.9		112.0
Operating income		30.6		0.9

Interest income		6.9		12.6
Interest expense		(4.2)		(7.1)
Other income (expense), net		(3.4)		1.4
Income from continuing operations, before income tax		29.9		7.8
Income tax provision		5.0		1.8
Income from continuing operations		24.9		6.0
Loss from discontinued operations, net of income tax		(0.2)		(0.6)
Net income	$	24.7	$	5.4

Basic weighted-average common shares outstanding		37.6		37.4
Diluted weighted-average common shares outstanding		38.1		37.7

Earnings (loss) per share:
Continuing operations:
Basic earnings per share	$	0.66	$	0.16
Diluted earnings per share	$	0.65	$	0.16
Discontinued operations:
Basic loss per share	$	(0.01)	$	(0.02)
Diluted loss per share	$	(0.01)	$	(0.02)
Net income:
Basic earnings per share	$	0.66	$	0.14
Diluted earnings per share	$	0.65	$	0.14



	Common Stock
				Common Stock				Accumulated
				Associated with		Additional		Other				Total
				Deferred		Paid-in		Comprehensive		Retained		Stockholders'
	Shares	Amount		Compensation Plan		Capital		Income (Loss)		Earnings		Equity
Balances, December 31, 2023	37.3	$	—	$	—	$	148.3	$	6.1	$	989.7	$	1,144.1
Stock issued from equity plans	0.1		—		—		(5.3)		—		—		(5.3)
Stock-based compensation	—		—		—		10.6		—		—		10.6
Dividends declared ($0.10 per share)	—		—		—		—		—		(3.8)		(3.8)
Other comprehensive loss	—		—		—		—		(8.0)		—		(8.0)
Deferred compensation	—		—		—		0.1		—		—		0.1
Net income	—		—		—		—		—		5.4		5.4
Balances, March 31, 2024	37.4	$	—	$	—	$	153.7	$	(1.9)	$	991.3	$	1,143.1

Balances, December 31, 2024	37.7	$	—	$	(0.9)	$	189.1	$	(11.8)	$	1,026.7	$	1,203.1
Stock issued from equity plans	0.2		—		—		(9.1)		—		—		(9.1)
Stock-based compensation	—		—		—		11.6		—		—		11.6
Share repurchases	—		—		—		—		—		(0.9)		(0.9)
Dividends declared ($0.10 per share)	—		—		—		—		—		(3.8)		(3.8)
Other comprehensive income	—		—		—		—		4.5		—		4.5
Deferred compensation	—		—		—		—		—		0.2		0.2
Common shares issued to deferred compensation plan	—		—		(1.7)		1.7		—		—		—
Net income	—		—		—		—		—		24.7		24.7
Balances, March 31, 2025	37.9	$	—	$	(2.6)	$	193.3	$	(7.3)	$	1,046.9	$	1,230.3


		Foreign Currency Translation		Change in Fair Value of Cash Flow Hedges		Defined Employee Benefit Plan		Total

	(in millions)
Balance at December 31, 2023	$	(10.8)	$	5.5	$	11.4	$	6.1
Other comprehensive income (loss) prior to reclassifications		(6.6)		1.4		—		(5.2)
Amounts reclassified from accumulated other comprehensive income (loss)		—		(2.8)		—		(2.8)
Balance at March 31, 2024	$	(17.4)	$	4.1	$	11.4	$	(1.9)


	Three Months Ended March 31,				To Caption on Consolidated
	2025		2024		Statements of Operations

	(in millions)
Foreign currency translation	$	0.1	$	—	Other income (expense), net
Cash flow hedges		—		(2.8)	Interest expense
Defined employee benefit plan		(0.1)		—	Other income (expense), net
Total reclassifications	$	—	$	(2.8)


	(in millions)
December 31, 2024	$	0.9
Deductions - write-offs, net of recoveries		(0.1)
March 31, 2025	$	0.8


	March 31, 2025
	Gross Carrying		Accumulated		Net Carrying		Weighted Average Remaining
	Amount		Amortization		Amount		Useful Life (in years)

	(in millions)
Technology	$	100.5	$	(72.2)	$	28.3	6.8
Customer relationships		169.6		(74.8)		94.8	8.3
Trademarks and other		27.1		(16.2)		10.9	4.4
Total	$	297.2	$	(163.2)	$	134.0	7.7

	December 31, 2024
	Gross Carrying		Accumulated		Net Carrying		Weighted Average Remaining
	Amount		Amortization		Amount		Useful Life (in years)

	(in millions)
Technology	$	99.9	$	(70.0)	$	29.9	7.0
Customer relationships		168.9		(70.9)		98.0	8.5
Trademarks and other		27.1		(15.6)		11.5	4.6
Total	$	295.9	$	(156.5)	$	139.4	7.9


Year Ending December 31,		(in millions)
2025 (remaining)	$	16.6
2026		20.0
2027		17.8
2028		16.5
2029		14.9
Thereafter		48.2
Total	$	134.0


	2024 Plan		2023 Plan		Total

	(in millions)
December 31, 2024	$	25.0	$	5.0	$	30.0
Severance costs incurred and charged to expense		0.6		—		0.6
Costs paid		(2.9)		(0.8)		(3.7)
March 31, 2025	$	22.7	$	4.2	$	26.9


	Cumulative Cost Through
	March 31, 2025
	2024 Plan		2023 Plan		Total

	(in millions)
Severance and related charges	$	30.2	$	15.4	$	45.6
Facility relocation and closure charges		0.1		—		0.1
Total restructuring charges	$	30.3	$	15.4	$	45.7


	(in millions)
December 31, 2024	$	5.7
Net increases to accruals		1.2
Warranty expenditures		(0.8)
March 31, 2025	$	6.1


	Three Months Ended March 31,
	2025		2024

	(in millions)
Semiconductor Equipment	$	222.2	$	179.9
Industrial and Medical		64.3		83.4
Data Center Computing		96.2		41.9
Telecom and Networking		21.9		22.3
Total	$	404.6	$	327.5


	Three Months Ended March 31,
	2025				2024

	(in millions)
United States	$	144.2	35.7	%	$	107.8	32.9	%
Mexico		41.7	10.3			25.9	7.9
Taiwan		28.9	7.1			39.5	12.1
Malaysia		42.5	10.5			21.4	6.5
All others		147.3	36.4			132.9	40.6
Total	$	404.6	100.0	%	$	327.5	100.0	%


	March 31,		December 31,
	2025		2024

	(in millions)
Parts and raw materials	$	271.2	$	255.1
Work in process		19.0		20.6
Finished goods		78.6		84.7
Total	$	368.8	$	360.4


	March 31,			December 31,
	2025			2024
Weighted average remaining lease term (in years)		8.1			8.4
Weighted average discount rate		6.2	%		6.1	%


		March 31, 2025
		(in millions)
Shares available for future issuance under the 2023 Incentive Plan		1.4
Shares available for future issuance under the ESPP		0.5


	Three Months Ended March 31, 2025
		Weighted-
		Average
	Number of	Grant Date
	RSUs	Fair Value
	(in millions)
RSUs outstanding at beginning of period	1.0	$	95.05
RSUs granted	0.5	$	119.46
RSUs vested	(0.3)	$	85.42
RSUs forfeited	(0.1)	$	73.90
RSUs outstanding at end of period	1.1	$	109.58


	Three Months Ended March 31,								Change 2025 v. 2024
	2025				2024				Dollar		Percent

	(in millions)
Semiconductor Equipment	$	222.2	54.9	%	$	179.9	54.9	%	$	42.3	23.5	%
Industrial and Medical		64.3	15.9			83.4	25.5			(19.1)	(22.9)	%
Data Center Computing		96.2	23.8			41.9	12.8			54.3	129.6	%
Telecom and Networking		21.9	5.4			22.3	6.8			(0.4)	(1.8)	%
Total	$	404.6	100.0	%	$	327.5	100.0	%	$	77.1	23.5	%


Reconciliation of non-GAAP measure
Operating expenses and operating income from continuing	Three Months Ended March 31,
operations, excluding certain items	2025			2024

	(in millions)
Gross profit from continuing operations, as reported	$	150.5		$	112.9
Adjustments to gross profit:
Stock-based compensation		1.1			0.8
Facility, infrastructure, and other transition costs		1.8			1.3
Non-GAAP gross profit		153.4			115.0

GAAP gross margin		37.2	%		34.5	%
Non-GAAP gross margin		37.9	%		35.1	%

Operating expenses from continuing operations, as reported		119.9			112.0
Adjustments:
Amortization of intangible assets		(5.5)			(6.9)
Stock-based compensation		(11.9)			(10.1)
Acquisition-related costs		(1.0)			(1.2)
Facility, infrastructure, and other transition costs		(1.7)			—
Restructuring, asset impairments, and other charges		(1.2)			(0.2)
Non-GAAP operating expenses		98.6			93.6
Non-GAAP operating income	$	54.8		$	21.4

GAAP operating income	$	30.6		$	0.9
Adjustments to gross profit		2.9			2.1
Adjustments to operating expenses		21.3			18.4
Non-GAAP operating income	$	54.8		$	21.4

GAAP income from continuing operations	$	24.9		$	6.0
GAAP operating margin		7.6	%		0.3	%
Non-GAAP operating margin		13.5	%		6.5	%



Reconciliation of non-GAAP measure	Three Months Ended March 31,
Income from continuing operations, excluding certain items	2025		2024

	(in millions)
Income from continuing operations, net of income tax	$	24.9	$	6.0
Adjustments:
Amortization of intangible assets		5.5		6.9
Acquisition-related costs		1.0		1.2
Facility, infrastructure, and other transition costs		3.5		1.3
Restructuring, asset impairments, and other charges		1.2		0.2
Unrealized foreign currency loss (gain)		1.6		(1.7)
Tax effect of non-GAAP adjustments, including certain discrete tax benefits		(1.1)		(0.6)
Non-GAAP income, net of income tax, excluding stock-based compensation		36.6		13.3
Stock-based compensation, net of tax		10.3		8.7
Non-GAAP income, net of income tax	$	46.9	$	22.0


	Three Months Ended March 31,
Weighted-average common shares	2025		2024

	(in millions)
Diluted weighted-average common shares outstanding		38.1		37.7


Reconciliation of non-GAAP measure	Three Months Ended March 31,
Per share earnings excluding certain items	2025		2024
Diluted earnings per share from continuing operations, as reported	$	0.65	$	0.16
Add back:
Per share impact of non-GAAP adjustments, net of tax		0.58		0.42
Non-GAAP earnings per share	$	1.23	$	0.58


Month	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs⁽¹⁾

	(in millions, except share and price per share data)
January		—	$	—		—	$	197.4
February		—	$	—		—	$	197.4
March		9,636	$	94.26		9,636	$	196.5
Total		9,636	$	94.26		9,636


Name and Title	Date of Adoption	Duration of the Trading Arrangement ⁽¹⁾	Aggregate Number of Shares to be Sold
Anne T. DelSanto Director	Mar. 13, 2025	May 5, 2026, or the next possible business day upon which the sale can be effected	Up to 2,880

John Donaghey Executive Vice President and Global Head of Sales	Mar. 11, 2025	Until Oct. 29, 2025, or such earlier date upon which all transactions are completed	Up to 2,000

Exhibit		Incorporated by Reference
Number	Description	Form	File No.	Exhibit	Filing Date

31.1	Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				Filed herewith

31.2	Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				Filed herewith

32.1	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				Filed herewith

32.2	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.				Filed herewith

101.INS	Inline XBRL Instance Document (The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)				Filed herewith

101.SCH	Inline XBRL Taxonomy Extension Schema Document.				Filed herewith

101.CAL	Inline XBRL Taxonomy Extension Calculation Link base Document.				Filed herewith

101.DEF	Inline XBRL Taxonomy Extension Definition Link base Document.				Filed herewith

101.LAB	Inline XBRL Taxonomy Extension Label Link base Document.				Filed herewith

101.PRE	Inline XBRL Taxonomy Extension Presentation Link base Document.				Filed herewith

104	Cover Page Interactive Data File (Formatted in Inline XBRL and contained in Exhibit 101)				Filed herewith


		ADVANCED ENERGY INDUSTRIES, INC.

Dated:	April 30, 2025	/s/ Paul Oldham
		Paul Oldham
		Chief Financial Officer and Executive Vice President

		/s/ Bernard R. Colpitts, Jr.
		Bernard Colpitts, Jr.
		Chief Accounting Officer and Controller


	/s/ Stephen D. Kelley
	Stephen D. Kelley
	Chief Executive Officer


	/s/ Paul Oldham
	Paul Oldham
	Chief Financial Officer & Executive Vice President