Advanced Energy Industries Inc. has recently released its 10-K report, providing a detailed insight into its financial performance and operations. The company offers precision power conversion, measurement, and control solutions globally, catering to industries such as semiconductor equipment, data center computing, industrial and medical, and telecom and networking. In 2025, the company reported a revenue of $1,798.8 million, marking a substantial increase of 21.4% compared to 2024. This growth was primarily driven by the significant expansion of revenue from the Data Center Computing market, which more than doubled during this period.
The company's gross margin improved, reaching 37.7% in 2025, up from 35.7% in 2024, largely due to increased revenue and manufacturing cost improvements. Operating expenses totaled $509.4 million in 2025, representing an increase of $16.7 million from 2024. This rise was primarily attributed to higher research and development program costs, increased compensation costs related to stock-based compensation and annual merit increases, partially offset by lower restructuring charges.
Revenue from the Semiconductor Equipment market increased by 6.0% to $839.9 million, while the Data Center Computing market experienced a substantial surge, with revenue reaching $587.3 million, marking a remarkable 106.7% increase from the previous year. However, revenue from the Industrial and Medical market decreased by 10.7% to $282.3 million, reflecting lower demand due to ongoing customer inventory rebalancing and a slow demand environment. Revenue from the Telecom and Networking market remained relatively stable compared to the prior year.
The company's financial performance was also impacted by factors such as tariffs affecting its operations, the execution of its 2024 Plan, and the termination of its prior credit agreement, among other activities. Advanced Energy Industries Inc. continues to monitor the impact of trade policies, supply chain disruptions, and market conditions, while also focusing on consolidation and restructuring efforts to optimize its operations.
Today the company's shares have moved -1.33% to a price of $253.86. For more information, read the company's full 10-K submission here.
