Advanced Energy Industries Inc 10-Q for FY2025 Q3

Advanced Energy Industries Inc (AEIS)

10-Q 2025-11-04 For: 2025-09-30

Added on April 11, 2026

About this 10-Q

Advanced Energy Industries Inc filed this 10-Q on November 4, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $463.3M; up 23.8% from $374.2M a year earlier
Net income: $46.2M; compared with a net loss of $14.9M a year earlier
Diluted EPS: $1.20; compared with -$0.40 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 September 30, 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	23

ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	38

ITEM 4.	CONTROLS AND PROCEDURES	39

	PART II OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	39

ITEM 1A.	RISK FACTORS	39

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	40

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	40

ITEM 4.	MINE SAFETY DISCLOSURES	40

ITEM 5.	OTHER INFORMATION	40

ITEM 6.	EXHIBITS	41

	SIGNATURES	42


	September 30,		December 31,
	2025		2024
ASSETS
Current assets:
Cash and cash equivalents	$	758.6	$	722.1
Accounts receivable, 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
Intangible assets, net		123.1		139.4
Goodwill		300.7		296.0
TOTAL ASSETS	$	2,438.1	$	2,261.9

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	194.7	$	143.5
Accrued payroll and employee benefits		74.2		67.9
Other accrued expenses		67.0		73.6
Customer deposits and other		12.7		11.5
Current portion of operating lease liabilities		17.9		17.8
Total current liabilities		366.5		314.3
Long-term debt, net		566.8		564.7
Operating lease liabilities		98.1		89.2
Defined employee benefit pension plan		53.9		49.6
Other long-term liabilities		38.7		37.5
Total liabilities		1,124.0		1,055.3

Deferred compensation		6.9		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; 37.7 issued and outstanding at September 30, 2025 and December 31, 2024		—		—
Common stock associated with deferred compensation plan		(2.6)		(0.9)
Additional paid-in capital		217.2		189.1
Accumulated other comprehensive income (loss)		5.3		(11.8)
Retained earnings		1,087.3		1,026.7
Total stockholders' equity		1,307.2		1,203.1
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,438.1	$	2,261.9



	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Revenue, net	$	463.3	$	374.2	$	1,309.4	$	1,066.6
Cost of revenue		288.9		240.1		821.1		691.9
Gross profit		174.4		134.1		488.3		374.7

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

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

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

Earnings (loss) per share:
Continuing operations:
Basic earnings per share	$	1.23	$	(0.38)	$	2.57	$	0.19
Diluted earnings per share	$	1.21	$	(0.38)	$	2.54	$	0.19
Discontinued operations:
Basic loss per share	$	(0.01)	$	(0.02)	$	(0.02)	$	(0.05)
Diluted loss per share	$	(0.01)	$	(0.02)	$	(0.02)	$	(0.05)
Net income (loss):
Basic earnings per share	$	1.23	$	(0.40)	$	2.56	$	0.14
Diluted earnings per share	$	1.20	$	(0.40)	$	2.52	$	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
Stock issued from equity plans	0.1		—		—		(0.2)		—		—		(0.2)
Stock issuance	0.1		—		—		4.5		—		—		4.5
Stock-based compensation	—		—		—		10.7		—		—		10.7
Dividends declared ($0.10 per share)	—		—		—		—		—		(3.9)		(3.9)
Other comprehensive loss	—		—		—		—		(5.0)		—		(5.0)
Deferred compensation	—		—		—		1.0		—		(0.1)		0.9
Net income	—		—		—		—		—		14.8		14.8
Balances, June 30, 2024	37.6		—		—		169.7		(6.9)		1,002.1		1,164.9
Stock issued from equity plans	0.1		—				(0.5)		—		—		(0.5)
Stock-based compensation	—		—				11.5		—		—		11.5
Share repurchases	—		—				(0.1)		—		(1.7)		(1.8)
Dividends declared ($0.10 per share)	—		—				—		—		(3.9)		(3.9)
Other comprehensive income	—		—				—		9.0		—		9.0
Deferred compensation	—		—				(0.1)		—		0.1		—
Net loss	—		—				—		—		(14.9)		(14.9)
Balances, September 30, 2024	37.7	$	—	$	—	$	180.5	$	2.1	$	981.7	$	1,164.3

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
Stock issued from equity plans	0.1		—		—		1.1		—		—		1.1
Stock-based compensation	—		—		—		12.2		—		—		12.2
Share repurchases	(0.3)		—		—		(1.4)		—		(21.4)		(22.8)
Dividends declared ($0.10 per share)	—		—		—		—		—		(3.9)		(3.9)
Other comprehensive income	—		—		—		—		16.1		—		16.1
Deferred compensation	—		—		—		—		—		(0.9)		(0.9)
Net income	—		—		—		—		—		25.2		25.2
Balances, June 30, 2025	37.7		—		(2.6)		205.2		8.8		1,045.9		1,257.3
Stock issued from equity plans	—		—		—		(0.3)		—		—		(0.3)
Stock-based compensation	—		—		—		12.3		—		—		12.3
Dividends declared ($0.10 per share)	—		—		—		—		—		(3.9)		(3.9)
Other comprehensive loss	—		—		—		—		(3.5)		—		(3.5)
Deferred compensation	—		—		—		—		—		(0.9)		(0.9)
Net income	—		—		—		—		—		46.2		46.2
Balances, September 30, 2025	37.7	$	—	$	(2.6)		217.2	$	5.3	$	1,087.3	$	1,307.2


		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)
Other comprehensive income (loss) prior to reclassifications		(2.6)		0.4		—		(2.2)
Amounts reclassified from accumulated other comprehensive income (loss)		—		(2.8)		—		(2.8)
Balance at June 30, 2024	$	(20.0)	$	1.7	$	11.4	$	(6.9)
Other comprehensive income (loss) prior to reclassifications		10.8		0.4		(2.2)		9.0
Amounts reclassified from accumulated other comprehensive income (loss)		1.6		(2.1)		0.5		—
Balance at September 30, 2024	$	(7.6)	$	—	$	9.7	$	2.1


	Three Months Ended September 30,				Nine Months Ended September 30,				To Caption on Consolidated
	2025		2024		2025		2024		Statements of Operations

	(in millions)
Foreign currency translation	$	—	$	(1.6)	$	(0.1)	$	(1.6)	Other income (expense), net
Cash flow hedges		—		2.1		—		7.7	Interest expense
Defined employee benefit plan		0.1		(0.5)		0.3		(0.5)	Other income (expense), net
Total reclassifications	$	0.1	$	—	$	0.2	$	5.6


	(in millions)
December 31, 2024	$	0.9
Additions		—
Deductions - write-offs and other adjustments		(0.3)
September 30, 2025	$	0.6


	September 30, 2025
	Gross Carrying		Accumulated		Net Carrying		Weighted Average Remaining
	Amount		Amortization		Amount		Useful Life (in years)

	(in millions)
Technology	$	101.7	$	(76.6)	$	25.1	6.6
Customer relationships		171.3		(82.9)		88.4	7.9
Trademarks and other		27.3		(17.7)		9.6	3.9
Total	$	300.3	$	(177.2)	$	123.1	7.3

	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)	$	5.5
2026		20.1
2027		17.8
2028		16.6
2029		15.0
Thereafter		48.1
Total	$	123.1


	2025 Plan		2024 Plan		2023 Plan		Total

	(in millions)
December 31, 2024	$	—	$	25.0	$	5.0	$	30.0
Severance costs incurred and charged to expense		2.9		1.1		0.6		4.6
Costs paid		(0.1)		(17.3)		(2.0)		(19.4)
Foreign currency translation		—		(0.1)		(0.1)		(0.2)
September 30, 2025	$	2.8	$	8.7	$	3.5	$	15.0


	Cumulative Cost Through
	September 30, 2025
	2025 Plan		2024 Plan		2023 Plan		Total

	(in millions)
Severance and related charges	$	2.9	$	30.7	$	16.0	$	49.6
Facility relocation and closure charges		—		0.1		—		0.1
Total restructuring charges	$	2.9	$	30.8	$	16.0	$	49.7


	(in millions)
December 31, 2024	$	5.7
Net increases to accruals		2.9
Warranty expenditures		(1.7)
September 30, 2025	$	6.9


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024

	(in millions)
Semiconductor Equipment	$	196.6	$	197.5	$	628.3	$	565.7
Industrial and Medical		71.2		76.9		204.1		239.4
Data Center Computing		171.6		80.6		409.4		195.5
Telecom and Networking		23.9		19.2		67.6		66.0
Total	$	463.3	$	374.2	$	1,309.4	$	1,066.6


	Three Months Ended September 30,								Nine Months Ended September 30,
	2025				2024				2025				2024

	(in millions)
United States	$	113.9	24.6	%	$	134.6	36.0	%	$	399.8	30.5	%	$	371.9	34.9	%
Mexico		72.4	15.6			41.0	11.0			155.2	11.9			109.8	10.3
Taiwan		37.1	8.0			41.0	11.0			94.6	7.2			119.6	11.2
Japan		71.1	15.3			11.9	3.2			167.0	12.8			36.9	3.4
All others		168.8	36.5			145.7	38.8			492.8	37.6			428.4	40.2
Total	$	463.3	100.0	%	$	374.2	100.0	%	$	1,309.4	100.0	%	$	1,066.6	100.0	%


	September 30,		December 31,
	2025		2024

	(in millions)
Parts and raw materials	$	313.9	$	255.1
Work in process		24.9		20.6
Finished goods		60.9		84.7
Total	$	399.7	$	360.4


	September 30,			December 31,
	2025			2024
Weighted average remaining lease term (in years)		8.3			8.4
Weighted average discount rate		6.3	%		6.1	%


		September 30, 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


	Nine Months Ended September 30, 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	$	118.98
RSUs vested	(0.4)	$	87.20
RSUs forfeited	(0.1)	$	84.00
RSUs outstanding at end of period	1.0	$	110.89


	Three Months Ended September 30,								Change 2025 v. 2024
	2025				2024				Dollar		Percent

	(in millions)
Semiconductor Equipment	$	196.6	42.4	%	$	197.5	52.8	%	$	(0.9)	(0.5)	%
Industrial and Medical		71.2	15.4			76.9	20.6			(5.7)	(7.4)	%
Data Center Computing		171.6	37.0			80.6	21.5			91.0	112.9	%
Telecom and Networking		23.9	5.2			19.2	5.1			4.7	24.5	%
Total	$	463.3	100.0	%	$	374.2	100.0	%	$	89.1	23.8	%

	Nine Months Ended September 30,								Change 2025 v. 2024
	2025				2024				Dollar		Percent

	(in millions)
Semiconductor Equipment	$	628.3	48.0	%	$	565.7	53.0	%	$	62.6	11.1	%
Industrial and Medical		204.1	15.6			239.4	22.5			(35.3)	(14.7)	%
Data Center Computing		409.4	31.3			195.5	18.3			213.9	109.4	%
Telecom and Networking		67.6	5.2			66.0	6.2			1.6	2.4	%
Total	$	1,309.4	100.1	%	$	1,066.6	100.0	%	$	242.8	22.8	%


Reconciliation of non-GAAP measures
Non-GAAP gross profit, gross margin, operating expenses,	Three Months Ended September 30,				Nine Months Ended September 30,
operating income, and operating margin	2025		2024		2025		2024

	(in millions)
Gross profit from continuing operations, as reported	$	174.4	$	134.1	$	488.3	$	374.7
Adjustments to gross profit:
Stock-based compensation		1.3		1.0		3.6		2.9
Facility, infrastructure, and other transition costs		5.5		0.9		10.8		2.4
Acquisition-related costs		—		—		—		(0.1)
Non-GAAP gross profit		181.2		136.0		502.7		379.9

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

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

Operating income (loss), as reported	$	49.2	$	(11.0)	$	111.4	$	2.8
Adjustments to gross profit		6.8		1.9		14.4		5.2
Adjustments to operating expenses		21.8		48.3		71.3		86.4
Non-GAAP operating income	$	77.8	$	39.2	$	197.1	$	94.4

Income (loss) from continuing operations, as reported	$	46.4	$	(14.1)	$	96.8	$	7.3
GAAP operating margin		10.6%		(2.9)%		8.5%		0.3%
Non-GAAP operating margin		16.8%		10.5%		15.1%		8.9%



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


Reconciliation of non-GAAP measure	Three Months Ended September 30,				Nine Months Ended September 30,
Non-GAAP diluted weighted-average common shares	2025		2024		2025		2024
	(in millions)
Diluted weighted-average common shares outstanding		38.5		37.5		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		38.0		37.8


Name and Title	Date of Adoption	Duration of the Trading Arrangement ⁽¹⁾	Aggregate Number of Shares to be Sold
Bernard Colpitts Senior Vice President and Chief Accounting Officer	August 19, 2025	Until May 1, 2026 or such earlier date upon which all transactions are completed	5,089 ⁽²⁾
Paul Oldham Executive Vice President and Chief Financial Officer	August 20, 2025	Until August 20, 2026 or such earlier date upon which all transactions are completed	16,570 ⁽³⁾
Tina Donikowski Director	September 4, 2025	Until September 4, 2026 or such earlier date upon which all transactions are completed	2,257

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 Linkbase Document.				Filed herewith

101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.				Filed herewith

101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.				Filed herewith

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase 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:	November 4, 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