Advanced Energy Industries, Inc. (AEIS) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

is playing out nicely this year with our success in data center compensating for softness in industrial and medical. Semiconductor has performed well for AE with mid single-digit growth expected this year after growth year in 2024. Our improved profitability and cash flow are allowing us to make the technology and capacity investments necessary to fuel long-term profitable growth. These investments give confidence to our customers that advanced energy has the technology roadmap and manufacturing expertise necessary to support their long-term success. In data center our high efficiency high power density products have proven ideal for AI applications. This year we have won a number of next generation programs which are expected to support further growth in 2026. In semiconductor customer interest in our EVOS, Everest and NavX platforms is very strong. We expect to more than double revenue from these platforms in 2025 as initial wins go into early stages of production. We believe that these wins will drive revenue growth in 2026 and beyond as leading edge fab processes ramp to volume. In industrial and medical we've invested heavily in new products, a new website, and a robust sales and channel effort. The result is that we have secured a record number of design wins, some of which are turning into revenue this year. Looking forward we expect that these wins will accelerate our growth in INM allowing us to gain market share. In addition with the closure of our last China factory in June we are making good progress on our gross margin improvement program. We continue to expect gross margin to approach 40% exiting 2025. Now let me provide some comments on tariffs. The tariff environment continues to be very dynamic. Actions we are taking to mitigate the impact of tariffs...