AEM Holdings has reported earnings of $3.1 million for the 1HFY2025 ended June 30, a 245% y-o-y increase.

The group’s revenue for the period came in at $190.3 million, up 9.6% y-o-y due to its ramp into high volume manufacturing at its major AI/high-performance computing (HPC) anchor customer and the pull-in of orders related to its non-cancellable, long-dated purchase order programme with one of its customers.

The surge in earnings was due to a more favourable product mix, the group says. It generated an operating cashflow of $46.4 million largely from the consumption of inventories.

The group’s test cell solutions (TCS) segment generated $118.6 million in revenue, representing about 62.3% of the group’s total revenue. This grew 18.8% y-o-y due to the successful production deployment and customer acceptance of the Group’s AMPS-BI solution, powered by PiXLTM thermal technology combined with the pull-in of orders into 1HFY2025.

The contract manufacturing (CM) segment, which accounted for 35.2% of the group’s revenue in 1HFY2025, saw a 4.7% y-o-y decline due to reduced demand from some end customers amid global trade uncertainties.

As at end June, the group’s total equity was valued at $483 million, a 1.9% y-o-y decrease primarily due to foreign exchange loss in translation of US dollar denominated assets.

As at end June, inventories saw a 17.3% decline, largely attributable to the pull-in of orders related to the non-cancellable, long-dated purchase order program with one of its customers.

The Group generated operating cash flows of $46.4 million during 1HFY2025, increasing cash balances by 36.6%. The debt-to-equity ratio remained at 0.2x.

The board of directors of AEM Holdings has appointed Samer Kabbani as CEO of AEM with effect from July 28, following the resignation of Amy Leong who was CEO for only a year. Kabbani joined as president and CTO in 2020.

The group expects revenue in 2HFY2025 to be in the range of $170 million to $190 million with its major AI / HPC customer expecting to ramp production in late 2025 / early 2026 for
its next generation AI accelerator.

It has received a purchase order for an evaluation final test handler from its memory customer and if accepted could result in production volumes in late 2026.

Shares in AEM Holdings closed flat at $1.53 on Aug 13.