Trio-Tech Reports 82% Revenue Growth in Q2 FY2026, Reflecting Expanding Role in AI and EV Semiconductor Reliability Testing

VAN NUYS, Calif.--( BUSINESS WIRE)--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

Fiscal 2026 First Six Months Financial Results

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

(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

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

Current portion of bank loans payable

271

256

Current portion of finance leases

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

Other non-current liabilities

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

31,

December

31,

December

31,

December

31,

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

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

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

)

143

130

Other Income / (Expense)

Interest expense

(22

)

(13

)

(30

)

(26

)

Other income, net

237

686

422

321

Government grant

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

)

Net Income

291

529

456

306

Less: Net income attributable to non-controlling interest

165

253

Net Income Attributable to Common Shareholders

126

507

203

271

Amounts Attributable to Common Shareholders:

Income from continuing operations, net of tax

511

171

271

Income / (Loss) from discontinued operations, net of tax

)

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

31,

December

31,

December

31,

December

31,

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

)

292

137

Comprehensive Income / (Loss) Attributable to Common Shareholders

589

(1,263

)

559

389