AEM Holdings Ltd. reported a 47.8 percent year-on-year jump in net profit to S$17.1 million for the 12 months ended 31 Dec 2025, lifted by a surge in demand from its second artificial-intelligence/high-performance-computing (AI/HPC) customer.
Revenue rose 5 percent YoY to S$399.3 million, translating into earnings per share of 5.4 Singapore cents. The board has proposed a final dividend of 1.3 Singapore cents per ordinary share, subject to shareholder approval.
Growth was driven primarily by the Test Cell Solutions (TCS) business, where revenue climbed 9 percent to S$251.4 million—63 percent of group turnover—after customers adopted the company’s parallel package test platforms featuring PiXL thermal technology. Contract Manufacturing contributed S$139.5 million, broadly flat YoY amid softer end-market demand and trade uncertainties. Group profit before tax increased 51.6 percent to S$21.3 million, widening the PBT margin to 5.3 percent from 3.7 percent a year earlier.
Inventory levels fell 23.5 percent as earlier long-dated orders were delivered, while operating cash flow strengthened enough to cut loans and borrowings by 82.7 percent, leaving the company in a net-cash position with a debt-to-equity ratio of 0.03 times.
Management attributed the earnings improvement to higher volumes from its second AI/HPC customer, which already accounts for more than a quarter of TCS revenue and is expected to become the group’s largest customer in 2026. Revenue from another major customer declined, tempering overall growth.
Looking ahead, AEM guided for FY2026 revenue of S$460 million to S$510 million, underpinned by further AI/HPC ramps and incremental orders from a long-standing HPC client addressing CPU supply constraints. The company is also progressing qualification work with a tier-1 memory maker, targeting initial production shipments in late 2026.
Chief executive officer Samer Kabbani said the swift expansion of the lead AI/HPC customer underscores AEM’s edge in advanced logic testing. He noted rising CPU demand is already translating into additional orders and added that a successful move into memory testing would diversify revenue streams while leveraging the firm’s cash-generating ability to return value to shareholders.