Key Financial Highlights

• Revenue Growth: AEM Holdings Ltd. (“AEM”) delivered robust revenue of S\$287.5 million for the nine months ended 30 September 2025, marking a 16% year-on-year increase. This was driven primarily by a sustained ramp with its major Artificial Intelligence (AI) / High-Performance Computing (HPC) customer.
• Profitability: Profit before tax (PBT) reached S\$6.2 million, up a remarkable 592% from S\$896,000 a year ago. The corresponding PBT margin improved to 2.2% from just 0.4% previously, reflecting enhanced operational leverage and a more favourable product mix with higher contributions from advanced test solutions.
• Net Profit: Net profit for 9M2025 was S\$4.0 million, up from a net loss of S\$95,000 during 9M2024, turning the company back to profitability.
• Cash Flow: Operating activities generated S\$52 million in cash, an impressive increase of S\$66.8 million year-on-year, highlighting strong operational execution.

Segment Performance

• Test Cell Solutions (TCS): The Test Cell Solutions segment delivered revenue of S\$182.2 million, accounting for 63.4% of total Group revenue. This segment saw a stellar 35.5% year-on-year growth, driven by successful production deployment and customer acceptance of AEM’s highly parallel package test solutions, featuring proprietary PiXL^TM thermal technology. This technology is particularly suited for power-dense AI devices, enabling increased test coverage and high throughput.
• Contract Manufacturing (CM): The CM segment contributed S\$99.5 million, or 34.6% of total revenue. However, revenue here declined by 7.9% year-on-year, due to softer end-customer demand amid global trade uncertainties.

Balance Sheet & Cash Flow Highlights

• Strong Equity Base: As at 30 September 2025, total equity stood at S\$485.6 million, up 0.5% from the previous quarter, with net asset value per share rising to 152.6 Singapore cents.
• Inventory Management: Inventories declined by 8.7% following the fulfillment of orders under a non-cancellable, long-dated purchase agreement with a key customer.
• Stable Debt Position: Debt-to-equity ratio remains prudent at 0.2x, signalling a healthy financial position for potential future expansion.
• Cash Position: Cash and cash equivalents stood at S\$59.3 million, remaining steady despite the ramp-up in operations.

Strategic and Price Sensitive Updates

• Major AI/HPC Customer Ramp: Revenue from AEM’s major AI/HPC customer is expected to grow significantly in FY2026, suggesting strong forward momentum and visibility into future earnings. This is a key price-sensitive catalyst for shareholders.
• New Memory Customer: AEM is engaged in an equipment evaluation program with a leading memory customer. Production units are expected to ship in late FY2026, followed by a ramp in FY2027. The successful conclusion and ramp-up with this customer could materially affect future revenue streams.
• Proprietary Technology: AEM’s PiXL^TM thermal platform, advanced automation, and application-specific instrumentation are purpose-built for the AI era, positioning AEM as a critical supplier to next-generation semiconductor test solutions.
• Guidance: The Group reaffirmed its revenue guidance for 2H2025, expecting performance to reach the upper end of the S\$170 million to S\$190 million range, underpinned by robust AI/HPC demand.

Management Commentary

Samer Kabbani, CEO of AEM, stated: “Powered by our proprietary PiXL^TM thermal platform, advanced automation, and application-specific instrumentation, our new solutions are purpose-built for the AI era, where parallelism, power delivery, and thermal control drive test efficiency. A production ramp at a major AI/HPC customer and strong memory-customer evaluations affirm the value we deliver for next-gen devices.”

Global Reach and Resilience

AEM has a global footprint spanning Asia, Europe, and the United States, with manufacturing plants in Singapore, Malaysia, Indonesia, Vietnam, Finland, South Korea, and the United States. This diversified presence provides operational resilience and supports its robust ecosystem for test innovation.

Investor Considerations

• Strong revenue growth and return to profitability could support share price appreciation.
• Significant customer ramps in AI/HPC and memory segments are highly price sensitive and may drive future earnings surprises.
• Robust balance sheet and cash flow position the company well for future investments and weathering industry cycles.
• Any changes in industry demand, customer relationships, or execution on new contracts could materially impact results and share price.

Disclaimer

This article is for general information purposes only and does not constitute investment advice. All forward-looking statements are subject to risks and uncertainties and actual results may differ materially. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions relating to AEM Holdings Ltd.

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