TRT · Trio-Tech International

Trio-Tech International delivered exceptional Q3 FY2026 results with revenue surging 124% year-over-year to $16.5 million, primarily propelled by the Semiconductor Back-End Solutions segment which grew 141% to $13.1 million. This growth was fueled by elevated testing volumes supporting advanced AI computing, EV automotive chips, and high-performance validation needs, as highlighted by Chairman and CEO S.W. Yong. Industrial Electronics also expanded 76% to $3.4 million, benefiting from demand in industrial, commercial, and aerospace applications including POS systems. Despite the revenue acceleration, gross margin contracted to 16% from 27% due to a higher proportion of lower-margin, high-volume testing services. Operating loss narrowed significantly to $81 thousand from $343 thousand, while net loss to common shareholders was nearly breakeven at $38 thousand versus $495 thousand last year. Year-to-date, the company swung to operating income of $62 thousand and net income of $165 thousand from prior-year losses, with revenue up 85% to $47.7 million. Balance sheet remains solid with $18.3 million in cash and equivalents as of March 31, 2026, bolstered post-quarter by $10 million from a registered direct equity offering earmarked for working capital, capacity expansion, and AI/automotive growth. Key demand indicators include $5.3 million initial plus $2.5 million follow-on orders for Burn-In Boards tied to a next-generation AI GPU platform. In response to North American and European customer needs, Trio-Tech secured a lease for an additional 104,000 square feet in Penang, Malaysia, to ramp AI-related testing capacity amid robust Southeast Asia momentum. Management anticipates sustained demand for back-end testing services and higher Industrial Electronics contributions, underpinned by operational efficiency and disciplined capital allocation for long-term profitability.