Trio-Tech International — Fiscal 2026 Earnings Summary

Financial Performance

• Total revenue for fiscal 2026 increased 72% to $62.6 million, compared to $36.5 million in fiscal 2025.
• Semiconductor Back-End Solutions (SBS) revenue nearly doubled, rising 99% to $49.0 million in fiscal 2026 from $24.7 million in fiscal 2025.
• Industrial Electronics (IE) revenue increased 15% to $13.6 million in fiscal 2026 from $11.8 million in fiscal 2025.
• Q4 fiscal 2026 total revenue was $14.9 million, up approximately 40% from $10.7 million in Q4 fiscal 2025.
• Q4 fiscal 2026 SBS revenue was $12.1 million, up approximately 85% from $6.6 million in the prior-year quarter.
• Q4 fiscal 2026 IE revenue was $2.8 million, down from $4.1 million in the prior-year quarter.
• Gross profit for fiscal 2026 was $10.4 million (17% margin), compared to $9.1 million (25% margin) in fiscal 2025.
• Gross profit for Q4 fiscal 2026 was $2.8 million (19% margin), compared to $2.6 million (25% margin) in the prior-year quarter.
• Total operating expense for fiscal 2026 was $10.6 million, up from $8.9 million in fiscal 2025.
• Total operating expense for Q4 fiscal 2026 was $3.0 million, up from $2.2 million in the prior-year quarter.
• Operating loss for fiscal 2026 was $204,000, compared to operating income of $254,000 in fiscal 2025.
• Operating loss for Q4 fiscal 2026 was $266,000, compared to operating income of $467,000 in the prior-year quarter.
• Net loss attributable to common shareholders for fiscal 2026 was $34,000, compared to a net loss of $41,000 in fiscal 2025.
• Net loss attributable to common shareholders for Q4 fiscal 2026 was $199,000, compared to net income of $183,000 in the prior-year quarter.
• Net loss per basic and diluted share was $0.00 for fiscal 2026, consistent with fiscal 2025.
• Net loss per basic and diluted share was approximately $0.02 for Q4 fiscal 2026, compared to split-adjusted net income of approximately $0.02 in the prior-year quarter.
• Net cash provided by operating activities for fiscal 2026 was $3.4 million, up from $0.4 million in fiscal 2025.
• Cash, cash equivalents, short-term deposits, and restricted term deposits totaled approximately $28.5 million at June 30, 2026, compared to $19.5 million at June 30, 2025.
• Total backlog at June 30, 2026, was $24.2 million, more than double the $11.0 million recorded at the end of fiscal 2025.
• SBS backlog was approximately $19.8 million and IE backlog was approximately $4.4 million at June 30, 2026.

Guidance and Future Outlook

• Trio-Tech anticipates continued demand for semiconductor back-end testing services across AI, high-performance computing, and automotive applications (including EV and autonomous-vehicle semiconductors) in fiscal 2027.
• Approximately $7.9 million of the previously announced $14.2 million in burn-in board-related orders remained to be delivered as of fiscal 2026, with $6.3 million delivered during the year.
• In the first quarter of fiscal 2027, the company received an additional purchase order of approximately $1.5 million.
• Production volumes are expected to increase progressively beginning in the second quarter of fiscal 2027 as the company completes phased installation of system-level and electrical test capabilities in its expanded Malaysian facility.
• The company anticipates year-over-year growth in its IE operations and is pursuing opportunities in new markets, including data center and industrial energy efficiency applications.

Business Segments and Product Lines

• The company secured a three-year production burn-in contract with a new global IDM customer, representing its second EV semiconductor production burn-in customer.
• A three-year production burn-in contract was announced with a second European EV semiconductor customer, featuring minimum billings of approximately $4.7 million over the term with potential to scale to $6 million.
• The company expanded its Malaysian footprint with approximately 104,000 square feet of additional space in Perai, Penang, to meet growing demand from North American customers.
• First-quarter bookings for Industrial Electronics totaled approximately $4.6 million, reflecting demand across aerospace, display solutions, and other industrial markets.
• Trio-Tech is introducing an equipment solution designed to improve the efficiency of cooling towers used in data centers, semiconductor manufacturing facilities, and power plants, reducing water and energy consumption.

Market and Competitive Landscape

• Strong demand for semiconductor reliability testing services, including AI-related chip testing, drove growth as customers expanded advanced computing programs.
• Customers are diversifying testing activity across Southeast Asia.
• The company is expanding its presence in automotive semiconductor reliability testing.
• The company is targeting new markets for Industrial Electronics, specifically data center and industrial energy efficiency applications.

Risks and Challenges

• Operating loss for fiscal 2026 was primarily driven by higher general and administrative expenses associated with increased corporate activity, including a stock split and investor relations initiatives, as well as higher stock-based compensation expense related to share price appreciation.
• Forward-looking statements note risks including market acceptance of products, volatility in the semiconductor industry, competition, technology problems, delivery schedules, and changes in testing specifications.
• International business risks include currency fluctuations, devaluation, currency restrictions, tariffs, local laws, and social, political, and economic instability, particularly in Asia.
• Risks also include trade tensions between the U.S. and China, financial market disruptions, and interest rate fluctuations.

Management Commentary and Tone

• Chairman and CEO S.W. Yong stated that fiscal 2026 marked a significant step forward with total revenue up 72%.
• Management expressed confidence in a strong foundation for fiscal 2027, citing a backlog more than double the prior year.
• Management noted that the semiconductor growth opportunity is broadening beyond AI.
• The company believes it is well-positioned for continued growth in fiscal 2027 and beyond due to a strong balance sheet, expanded capacity in Malaysia, and opportunities across AI, high-performance computing, EV, autonomous-vehicle semiconductors, and Industrial Electronics.
• Management emphasized a focus on operational discipline, demand-driven capital investment, and maintaining a strong liquidity position.

Other Key Points

• The company operates in the United States, Singapore, Malaysia, Thailand, and China.
• Founded in 1958, the company is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services.
• The company has two primary business segments: Semiconductor Back-End Solutions and Industrial Electronics.
• Total assets increased to $60.687 million at June 30, 2026, from $41.068 million at June 30, 2025.
• Total liabilities increased to $17.672 million at June 30, 2026, from $7.077 million at June 30, 2025.
• Total equity increased to $43.015 million at June 30, 2026, from $33.991 million at June 30, 2025.
• Common shares issued and outstanding increased to 10,371,192 as of June 30, 2026, from 8,625,610 as of June 30, 2025.