Looking forward to the fourth quarter, Advantech said that although raw material costs fluctuate and supply chain challenges remain, the company has made corresponding arrangements to ensure a stable long-term supply of materials and continues the cost pass-through mechanism to maintain operational resilience.
[Reporter Fang Weijie/Report from Taipei] Advantech (2395), a major industrial computer manufacturer, benefited from strong demand for edge AI, semiconductor equipment and smart medical applications. Its third-quarter revenue and profit hit record highs. Its single-quarter after-tax earnings per share reached 7.15 yuan, and its cumulative earnings per share in the first three quarters were 16.21 yuan, which exceeded last year's full-year performance. Advantech pointed out that the overall order-to-bill ratio (B/B Ratio) in the third quarter reached 1.64, of which the North American market reached 2.12, indicating that the order momentum remains strong.
Advantech announced its third-quarter financial report today, with single-quarter consolidated revenue of 32.44 billion yuan, a quarterly increase of 24.15% and an annual increase of 82.55%; gross profit margin was 36.7%, a quarterly decrease of 1 percentage point and an annual decrease of 2.2 percentage points; operating profit margin was 20.9%, The quarterly increase was 1.3 percentage points and the annual increase was 5.7 percentage points; the net profit after tax was 6.218 billion yuan, a quarterly increase of 37.63% and the annual increase of 124.80%; the after-tax earnings per share was 7.15 yuan, a quarterly increase of 37.50% and an annual increase of 123.44%.
Advantech's cumulative consolidated revenue for the first three quarters was 78.952 billion yuan, an annual increase of 49%; operating gross profit was 29.721 billion yuan, with a gross profit margin of 37.6%; operating profit was 15.651 billion yuan, with an operating profit margin of 19.8%; consolidated after-tax net profit was 14.070 billion yuan, an annual increase of 88%, and after-tax earnings per share were 16.21 yuan, which has exceeded the full-year level in 2025.
Chen Qingxi, Chief Financial Officer and General Manager of General Operations and Management of Advantech, said that the third quarter benefited from the development of the edge AI market and strong demand in semiconductor equipment, smart medical and other application fields. Coupled with supply chain fluctuations and component price increases, customers continued to actively place orders, driving cumulative revenue to a record high, and operating profit and net profit also grew strongly compared with the same period last year.
Chen Qingxi pointed out that due to the rise in prices of key components, the gross profit margin has declined in the short term compared with the same period last year, but the overall order-taking momentum remains strong. In the third quarter, the amount of orders and shipments continued to increase quarterly. The three major regions of North America, Europe and China all increased compared with the second quarter. The order-to-shipment ratio in North America reached 2.12, and the ratio in Europe and China increased to 1.52 and 1.50 respectively.
Observing global market performance, Advantech's revenue in North America in the first three quarters increased by 58% annually, the Chinese market increased by 55% annually, the Taiwan market increased by 72% annually, and Europe, North Asia and emerging markets also maintained double-digit growth. In terms of business groups, the intelligent system and embedded business groups increased by 49% and 40% respectively year-on-year, the Internet of Things automation business group increased by 25% year-on-year, and the intelligent service business group increased by 7% annually.
Looking forward to the fourth quarter, Advantech said that although raw material costs fluctuate and supply chain challenges remain, the company has made corresponding arrangements to ensure a stable long-term supply of materials and continues the cost pass-through mechanism to maintain operational resilience. At the same time, it has accelerated its investment in key markets such as the United States, Japan and Taiwan. Among them, the new headquarters in Tustin, Southern California, has been officially put into production. By integrating local assembly, technical services and customer collaboration resources, it will seize the growth opportunities of edge computing and AI applications in North America.
