Trio-Tech Reports 82% Revenue Growth in Q2 FY2026, Reflecting Expanding Role in AI and EV Semiconductor Reliability Testing
MWN-AI** Summary
Trio-Tech International (NYSE MKT: TRT) reported a remarkable 82% year-over-year revenue growth for the fiscal second quarter ending December 31, 2025, attributing its success to a surge in demand for advanced semiconductor testing services, particularly in artificial intelligence (AI) and electric vehicle (EV) applications. The company’s total revenue reached $15.6 million, significantly up from $8.6 million in Q2 FY2025. This impressive growth was particularly evident in the Semiconductor Back-End Solutions segment, which saw a staggering 113% increase, driven by heightened testing volumes necessary for AI compute chips and EV power devices.
CEO S.W. Yong commented on the robust demand for final testing services, highlighting the importance of device reliability and compliance with strict performance standards amidst evolving technological complexities. This surge is indicative of the crucial role Trio-Tech plays as a partner in semiconductor reliability and validation processes, especially as the market shifts towards high-value sectors like AI and electrification.
In addition to its semiconductor segment, Trio-Tech's Industrial Electronics division brought in $3.3 million, reflecting a 17% growth compared to the previous year, bolstered by sales in aerospace-related products and equipment. Despite experiencing a slight decline in gross margin—16% down from 26% last year, due to an increased share of lower-margin services—the company managed to achieve an operating income of $97,000, contrasting with a minor operating loss in the prior year.
Looking forward, Trio-Tech anticipates sustained demand for its services and remains focused on operational efficiency and strategic investments to leverage growth opportunities, ensuring a solid position for continued success in FY2026.
MWN-AI** Analysis
Trio-Tech International (NYSE MKT: TRT) has reported an impressive 82% revenue growth year-over-year for Q2 FY2026, reaching $15.6 million primarily driven by robust demand in its Semiconductor Back-End Solutions segment. This growth reflects a heightened focus on advanced reliability testing services aligning with the surging markets of artificial intelligence (AI) and electric vehicles (EVs).
As AI and electrification trends drive complexity in semiconductor design, Trio-Tech is strategically positioned as a pivotal partner for developers seeking rigorous testing and validation. The 113% surge in revenue from semiconductor testing services highlights the sector's demands for enhanced performance and compliance. The overall market trend indicates that companies prioritizing reliability and output can expect sustainable growth opportunities.
Despite the substantial revenue increase, Trio-Tech’s gross margin slipped to 16%, down from 26% in the prior year, attributed to a higher mix of lower-margin, high-volume tests. Investors should monitor the company's ability to balance revenue growth with margin improvements, particularly in the competitive semiconductor testing landscape.
Trio-Tech’s operational efficiency and disciplined capital investment underline a commitment to sustaining growth momentum into the latter half of FY2026. Their focus on diversifying revenue through industrial electronics, which saw 17% growth, further demonstrates resilience amid market fluctuations.
Given Trio-Tech's favorable positioning within high-growth sectors, potential investors should consider the stock as a viable addition to a diversified portfolio. However, it’s prudent to watch the evolving market dynamics, including cost pressures and competition in semiconductor testing, which may influence future profitability.
Overall, Trio-Tech reflects solid operational foundations with growing demand—making it a potential candidate for investment amid the unfolding AI and EV revolution.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Trio-Tech International (NYSE MKT: TRT), a comprehensive provider of semiconductor back-end solutions and a global value-added supplier of electronic equipment, today announced financial results for its fiscal second quarter ended December 31, 2025. The Company reported 82% year-over-year revenue growth, driven primarily by strong demand for advanced semiconductor testing services supporting AI compute chips and EV power devices, along with continued growth in aerospace-related industrial electronics.
Trio-Tech International Chairman and CEO S.W. Yong’s Comments
Semiconductor Back-End Solutions Driving Growth
“We delivered a strong quarter marked by substantial revenue growth and improved operating performance, driven by continued momentum in our Semiconductor Back-End Solutions segment, which is increasingly serving customers developing AI compute chips and EV power devices that require advanced reliability and performance validation.
“Demand for final test services supporting next-generation semiconductor products remained robust during the quarter, reflecting our customers’ growing focus on device reliability, yield optimization, and compliance with increasingly stringent performance standards. As AI and electrification trends drive greater complexity in semiconductor design, our testing capabilities are becoming increasingly critical to our customers’ development and qualification processes.
“We believe Trio-Tech is well-positioned as a critical infrastructure partner for semiconductor reliability and performance validation, particularly for customers operating in high-growth, high-value markets such as AI and electric vehicles. At the same time, we continue to invest in our capabilities and regional footprint to capitalize on anticipated growth opportunities in these expanding end markets. Our focused approach, combined with expanding testing activity across Southeast Asia and increasing demand outside of China, continues to support strong segment performance.
“In our Industrial Electronics segment, revenue growth was driven by higher sales of aerospace-related products and increased equipment demand, reflecting the benefits of our ongoing expansion into diversified end markets. With a solid balance sheet and continued operational discipline, we remain focused on executing our strategy and positioning the Company for sustainable growth through the remainder of fiscal 2026.”
Fiscal 2026 Second Quarter Financial Results
- Total revenue: $15.6 million, an 82% increase from $8.6 million in Q2 FY2025.
- Semiconductor Back-End Solutions: $12.4 million, up 113% from $5.8 million in the prior year quarter, driven by higher testing volumes.
- Industrial Electronics: $3.3 million, up 17% from $2.8 million, reflecting steady demand across industrial and commercial applications.
- Gross margin: $2.5 million, or 16% of revenue, compared to $2.2 million, or 26%, in the prior year period; the decline reflects a higher proportion of lower-margin, high-volume testing services.
- Operating income: $97 thousand, compared to an operating loss of $3 thousand in Q2 FY2025.
- Net income attributable to common shareholders: $126 thousand, or $0.01 per diluted share, compared to $507 thousand, or $0.06 per diluted share, in the prior year quarter. The prior-year period included a $550 thousand foreign currency gain; excluding this item, the Company meaningfully improved its year-over-year profitability.
- Cash, cash equivalents, and restricted cash: $19.2 million as of December 31, 2025, compared to $19.5 million at June 30, 2025.
Fiscal 2026 First Six Months Financial Results
- Total revenue: $31.2 million, a 69% increase from $18.4 million in the year ago period.
- Semiconductor Back-End Solutions: $23.8 million, up 88% from $12.7 million in the prior year period.
- Industrial Electronics: $7.3 million, up 28% from $5.7 million in the year-ago period.
- Gross margin: $5.1 million, or 16% of revenue, compared to $4.5 million, or 25%, in the prior year period.
- Operating income: $143 thousand, compared to operating income of $130 thousand a year ago.
- Net income attributable to common shareholders: $203 thousand, or $0.02 per diluted share, compared to $271 thousand, or $0.03 per diluted share, in the prior year period.
Outlook
Trio-Tech expects continued demand for its semiconductor back-end testing services through fiscal 2026, supported by customer programs for advanced and AI-related devices. The Company anticipates increased contributions from its Industrial Electronics segment. Trio-Tech remains focused on operational efficiency, disciplined capital allocation, and maintaining a strong liquidity position to support long-term growth and profitability.
About Trio-Tech International
Trio-Tech International (NYSE MKT: TRT) is a California-based company operating in the United States, Singapore, Malaysia, Thailand, and China. Founded in 1958, Trio-Tech is a leading provider of semiconductor testing services, manufacturing solutions, and value-added distribution services. The Company’s diversified business segments include Semiconductor Back-End Solutions and Industrial Electronics.
For more information, visit www.triotech.com and www.universalfareast.com .
Forward-Looking Statements
This press release contains statements that are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and may contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward looking statements made by or on behalf of the Company: market acceptance of Company products and services; the divestiture of one or more business segments in response to, among other factors, changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, imposition of tariffs, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; trade tension between U.S. and China and other economic, financial and regulatory factors beyond the Company's control. Other than statements of historical fact, all statements made in this release are forward looking, including, but not limited to, statements regarding industry prospects, future results of operations or financial position, and statements of our intent, belief and current expectations about our strategic direction, prospective and future financial results and condition. In some cases, you can identify forward looking statements by the use of terminology such as "may," "will," "expects," "plans," "anticipates," "estimates," "potential," "believes," "can impact," "continue," or the negative thereof or other comparable terminology. Forward looking statements involve risks and uncertainties that are inherently difficult to predict, which could cause actual outcomes and results to differ materially from our expectations, forecasts and assumptions. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) | ||||||||
December 31, | June 30, | |||||||
2025 | 2025 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 12,404 | $ | 10,890 | ||||
Short-term deposits | 4,059 | 5,817 | ||||||
Trade accounts receivable, less allowance for expected credit losses of $193 and $35, respectively | 13,455 | 10,804 | ||||||
Other receivables | 716 | 608 | ||||||
Inventories, less provision for obsolete inventories of $823 and $851, respectively | 2,835 | 2,262 | ||||||
Prepaid expense and other current assets | 389 | 384 | ||||||
Restricted term deposits | 819 | 816 | ||||||
Total current assets | 34,677 | 31,581 | ||||||
NON-CURRENT ASSETS: | ||||||||
Deferred tax assets | 94 | 91 | ||||||
Investment properties, net | 319 | 345 | ||||||
Property, plant and equipment, net | 5,875 | 6,021 | ||||||
Operating lease right-of-use assets | 2,551 | 864 | ||||||
Other assets | 272 | 231 | ||||||
Restricted term deposits | 1,941 | 1,935 | ||||||
Total non-current assets | 11,052 | 9,487 | ||||||
TOTAL ASSETS | $ | 45,729 | $ | 41,068 | ||||
LIABILITIES | ||||||||
CURRENT LIABILITIES: | ||||||||
Lines of credit | $ | 401 | $ | 141 | ||||
Accounts payable | 5,527 | 1,896 | ||||||
Accrued expense | 4,624 | 3,036 | ||||||
Contract liabilities | 128 | 250 | ||||||
Income taxes payable | 122 | 122 | ||||||
Current portion of bank loans payable | 271 | 256 | ||||||
Current portion of finance leases | 13 | 43 | ||||||
Current portion of operating leases | 617 | 540 | ||||||
Total current liabilities | 11,703 | 6,284 | ||||||
NON-CURRENT LIABILITIES: | ||||||||
Bank loans payable, net of current portion | 310 | 428 | ||||||
Operating leases, net of current portion | 1,934 | 324 | ||||||
Deferred tax liabilities | 14 | 10 | ||||||
Other non-current liabilities | 32 | 31 | ||||||
Total non-current liabilities | 2,290 | 793 | ||||||
TOTAL LIABILITIES | $ | 13,993 | $ | 7,077 | ||||
EQUITY | ||||||||
TRIO-TECH INTERNATIONAL SHAREHOLDERS’ EQUITY: | ||||||||
Common stock, no par value, 15,000,000 shares authorized; 8,736,110 and 8,625,610 shares issued outstanding as at December 31, 2025 and June 30, 2025, respectively | $ | 13,774 | $ | 13,490 | ||||
Paid-in capital | 6,092 | 5,979 | ||||||
Accumulated retained earnings | 11,068 | 12,037 | ||||||
Accumulated other comprehensive income-translation adjustments | 2,579 | 2,522 | ||||||
Total Trio-Tech International shareholders’ equity | 33,513 | 34,028 | ||||||
Non-controlling interest | (1,777 | ) | (37 | ) | ||||
TOTAL EQUITY | $ | 31,736 | $ | 33,991 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 45,729 | $ | 41,068 |
TRIO-TECH INTERNATIONAL AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME / (LOSS) | ||||||||||||||||
UNAUDITED (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December | December | December | December | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Revenue | ||||||||||||||||
Semiconductor Back-end Solutions | $ | 12,357 | $ | 5,809 | $ | 23,809 | $ | 12,688 | ||||||||
Industrial Electronics | 3,284 | 2,801 | 7,336 | 5,715 | ||||||||||||
Others | 8 | 9 | 18 | 15 | ||||||||||||
15,649 | 8,619 | 31,163 | 18,418 | |||||||||||||
Cost of Sales | 13,150 | 6,401 | 26,079 | 13,878 | ||||||||||||
Gross Margin | 2,499 | 2,218 | 5,084 | 4,540 | ||||||||||||
Operating Expense: | ||||||||||||||||
General and administrative | 2,197 | 1,965 | 4,371 | 3,929 | ||||||||||||
Selling | 99 | 176 | 370 | 326 | ||||||||||||
Research and development | 106 | 114 | 200 | 202 | ||||||||||||
Gain on disposal of property, plant and equipment | - | (34 | ) | - | (47 | ) | ||||||||||
Total operating expense | 2,402 | 2,221 | 4,941 | 4,410 | ||||||||||||
Income / (Loss) from Operations | 97 | (3 | ) | 143 | 130 | |||||||||||
Other Income / (Expense) | ||||||||||||||||
Interest expense | (22 | ) | (13 | ) | (30 | ) | (26 | ) | ||||||||
Other income, net | 237 | 686 | 422 | 321 | ||||||||||||
Government grant | - | 5 | 4 | 71 | ||||||||||||
Total other income | 215 | 678 | 396 | 366 | ||||||||||||
Income from Continuing Operations before Income Taxes | 312 | 675 | 539 | 496 | ||||||||||||
Income Tax Expense | (77 | ) | (139 | ) | (141 | ) | (190 | ) | ||||||||
Income from Continuing Operations before Non-controlling Interest, Net of Taxes | 235 | 536 | 398 | 306 | ||||||||||||
Discontinued Operations | ||||||||||||||||
Income / (Loss) from discontinued operations, net of tax | 56 | (7 | ) | 58 | - | |||||||||||
Net Income | 291 | 529 | 456 | 306 | ||||||||||||
Less: Net income attributable to non-controlling interest | 165 | 22 | 253 | 35 | ||||||||||||
Net Income Attributable to Common Shareholders | $ | 126 | $ | 507 | $ | 203 | $ | 271 | ||||||||
Amounts Attributable to Common Shareholders: | ||||||||||||||||
Income from continuing operations, net of tax | 95 | 511 | 171 | 271 | ||||||||||||
Income / (Loss) from discontinued operations, net of tax | 31 | (4 | ) | 32 | - | |||||||||||
Net Income Attributable to Common Shareholders | $ | 126 | $ | 507 | $ | 203 | $ | 271 | ||||||||
Basic Earnings per Share: | ||||||||||||||||
Basic earnings per share from continuing operations | $ | 0.01 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
Basic earnings from discontinued operations | - | - | - | - | ||||||||||||
Basic Earnings per Share from Net Income | $ | 0.01 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
Diluted Earnings per Share: | ||||||||||||||||
Diluted earnings per share from continuing operations | $ | 0.01 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
Diluted earnings per share from discontinued operations | - | - | - | - | ||||||||||||
Diluted Earnings per Share from Net Income | $ | 0.01 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
Weighted Average Number of Common Shares Outstanding (1) | ||||||||||||||||
Basic | 8,697 | 8,501 | 8,662 | 8,500 | ||||||||||||
Dilutive effect of stock options | 667 | 306 | 383 | 238 | ||||||||||||
Number of Shares Used to Compute Earnings Per Share Diluted | 9,364 | 8,807 | 9,045 | 8,738 |
(1) | On January 5, 2026, the Company effected a two-for-one forward stock split of the Company's issued Common Stock. All share and per-share amounts included in the accompanying condensed consolidated financial statements have been retrospectively adjusted to reflect the stock split. |
Three Months Ended | Six Months Ended | |||||||||||||||
December | December | December | December | |||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Comprehensive Income / (Loss) Attributable to Common Shareholders: | ||||||||||||||||
Net income | $ | 291 | $ | 529 | $ | 456 | $ | 306 | ||||||||
Foreign currency translation, net of tax | 465 | (1,794 | ) | 395 | 220 | |||||||||||
Comprehensive Income / (Loss) | 756 | (1,265 | ) | 851 | 526 | |||||||||||
Less: comprehensive income / (loss) attributable to non-controlling interest | 167 | (2 | ) | 292 | 137 | |||||||||||
Comprehensive Income / (Loss) Attributable to Common Shareholders | $ | 589 | $ | (1,263 | ) | $ | 559 | $ | 389 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260213079642/en/
For inquiries, please contact:
PondelWilkinson Inc.
Todd Kehrli or Jim Byers
tkehrli@pondel.com | jbyers@pondel.com
FAQ**
Given the substantial 82% year-over-year revenue growth reported by Trio-Tech International (TRT), what specific strategies are in place to sustain this momentum in the Semiconductor Back-End Solutions segment?
How does Trio-Tech International (TRT) plan to address the decline in gross margin from 26% to 16% despite increased revenues, particularly in the context of higher-margin testing services?
With a reported increase in net income attributable to common shareholders, what measures does Trio-Tech International (TRT) have in place to enhance profitability and shareholder value moving forward?
How does Trio-Tech International (TRT) intend to expand its regional footprint in Southeast Asia and adapt to rising demand outside of China in its operational strategy?
**MWN-AI FAQ is based on asking OpenAI questions about Trio-Tech International (NYSE: TRT).
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