Fiscal 2026 and Q4 fiscal 2026
Filed Sep 24, 2026TRIO-TECH REPORTS 72% FISCAL 2026 REVENUE GROWTH, DRIVEN BY CONTINUED AI AND AUTOMOTIVE SEMICONDUCTOR MOMENTUM
Fiscal 2026 revenue increased 72% to $62.6 million and backlog more than doubled to $24.2 million, but gross margin declined to 17% of revenue and the Company recorded an operating loss of $204,000. The fourth quarter also recorded an operating loss and net loss despite approximately 40% revenue growth.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 total revenueGAAP | $14.9M | – | approximately 40% |
| Q4 fiscal 2026 other revenueGAAP | $9K | – | – |
| Q4 fiscal 2026 cost of salesGAAP | $12.15M | – | – |
| Q4 fiscal 2026 gross profitGAAP | $2.8M | – | – |
| Q4 fiscal 2026 gross marginGAAP | 19% of revenue | – | – |
| Q4 fiscal 2026 general and administrative expenseGAAP | $2.73M | – | – |
| Q4 fiscal 2026 selling expenseGAAP | $214K | – | – |
| Q4 fiscal 2026 research and development expenseGAAP | $98K | – | – |
| Q4 fiscal 2026 total operating expenseGAAP | $3M | – | – |
| Q4 fiscal 2026 operating lossGAAP | $266,000 | – | – |
| Q4 fiscal 2026 total other income / (expense)GAAP | $9,000 | – | – |
| Q4 fiscal 2026 net loss attributable to common shareholdersGAAP | $199,000 | – | – |
| Q4 fiscal 2026 basic loss per share from net lossGAAP | $ (0.02 ) | – | – |
| Q4 fiscal 2026 diluted loss per share from net lossGAAP | $ (0.02 ) | – | – |
| Fiscal 2026 total revenueGAAP | $62.6M | – | 72% |
| Fiscal 2026 other revenueGAAP | $33K | – | – |
| Fiscal 2026 cost of salesGAAP | $52.19M | – | – |
| Fiscal 2026 gross profitGAAP | $10.4M | – | – |
| Fiscal 2026 gross marginGAAP | 17% of revenue | – | – |
| Fiscal 2026 general and administrative expenseGAAP | $9.38M | – | – |
| Fiscal 2026 selling expenseGAAP | $847K | – | – |
| Fiscal 2026 research and development expenseGAAP | $397K | – | – |
| Fiscal 2026 gain on disposal of property, plant and equipmentGAAP | - | – | – |
| Fiscal 2026 total operating expenseGAAP | $10.6M | – | – |
| Fiscal 2026 operating lossGAAP | $204,000 | – | – |
| Fiscal 2026 interest expenseGAAP | −$65K | – | – |
| Fiscal 2026 other income / (expense), netGAAP | $641K | – | – |
| Fiscal 2026 government grantGAAP | $17K | – | – |
| Fiscal 2026 total other income / (expense)GAAP | $593,000 | – | – |
| Fiscal 2026 income tax expenseGAAP | −$228K | – | – |
| Fiscal 2026 net incomeGAAP | $219K | – | – |
| Fiscal 2026 net loss attributable to common shareholdersGAAP | $34,000 | – | – |
| Fiscal 2026 basic loss per share from net lossGAAP | $ (0.00 ) | – | – |
| Fiscal 2026 diluted loss per share from net lossGAAP | $ (0.00 ) | – | – |
| Fiscal 2026 total backlogother | $24.2M | – | more than double |
| Fiscal 2026 SBS backlogother | approximately $19.8 million | – | – |
| Fiscal 2026 IE backlogother | approximately $4.4 million | – | – |
| Fiscal 2026 net cash provided by operating activitiesGAAP | $3.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 Semiconductor Back-end SolutionsStrong demand for semiconductor reliability testing services, including AI-related chip testing. | $12.1M | – | approximately 85% |
| Q4 fiscal 2026 Industrial ElectronicsRevenue compared with $4.1 million in the prior-year quarter. | $2.8M | – | – |
| Fiscal 2026 Semiconductor Back-end SolutionsCustomers expanded advanced computing programs and diversified testing activity across Southeast Asia. | $49M | – | 99% |
| Fiscal 2026 Industrial ElectronicsThe Company reported encouraging activity across aerospace, display solutions, and other industrial markets. | $13.6M | – | 15% |
Fiscal 2027 outlook
- NoteThe Company anticipates a progressive increase in production volumes beginning in the second quarter of fiscal 2027.
- NoteThe Company anticipates year-over-year growth in its IE operations.
- NoteApproximately $7.9 million of the previously announced $14.2 million in burn-in board-related orders remained to be delivered.
- NoteDuring the first quarter of fiscal 2027, the Company received an additional purchase order of approximately $1.5 million.
- NoteThe recently announced three-year production burn-in contract has minimum billings of approximately $4.7 million over the term and potential to scale to $6 million.
- NoteFirst-quarter bookings to date in Industrial Electronics total approximately $4.6 million.
What drove it
- Strong demand for semiconductor reliability testing services, including AI-related chip testing.
- Customers expanded advanced computing programs and diversified testing activity across Southeast Asia.
- The Company cited AI, high-performance computing, EV and autonomous-vehicle semiconductors as sources of demand for semiconductor back-end testing services.
- The expanded Malaysian footprint includes approximately 104,000 square feet of additional space in Perai, Penang.
- The Company expects phased installation of system-level and electrical test capabilities in the expanded facility.
- IE first-quarter bookings to date reflect demand across aerospace, display solutions, and other industrial markets.
Concerns
- Fiscal 2026 gross margin was 17% of revenue, compared with 25% of revenue in fiscal 2025.
- Q4 fiscal 2026 gross margin was 19% of revenue, compared with 25% of revenue in the prior-year quarter.
- Fiscal 2026 operating loss was $204,000, compared with operating income of $254,000 in fiscal 2025.
- Q4 fiscal 2026 operating loss was $266,000, compared with operating income of $467,000 in Q4 fiscal 2025.
- The Company cited higher general and administrative expenses associated with increased corporate activity, including the stock split and investor relations and communications initiatives, and higher stock-based compensation expense related to share-price appreciation.
- Q4 fiscal 2026 IE revenue was $2.8 million, compared with $4.1 million in the prior-year quarter.
What to watch
- Delivery of approximately $7.9 million remaining from the previously announced $14.2 million in burn-in board-related orders.
- Production-volume progression beginning in the second quarter of fiscal 2027 as expanded Malaysian capacity is equipped.
- Execution of the three-year production burn-in contract, which has minimum billings of approximately $4.7 million over the term and potential to scale to $6 million.
- Whether IE converts first-quarter bookings to date of approximately $4.6 million into the anticipated year-over-year growth.
- Gross-margin and operating-profit performance as production volumes and capacity expand.
Balance sheet and cash flow
- Cash, cash equivalents, short-term deposits and restricted term deposits totaled approximately $28.5 million, compared with approximately $19.5 million at June 30, 2025.
- Cash and cash equivalents were $ 21,428 (in thousands) at June 30, 2026, compared with $ 10,890 (in thousands) at June 30, 2025.
- Short-term deposits were $ 4,294 (in thousands), compared with $ 5,817 (in thousands).
- Restricted term deposits were $ 819 (in thousands) in current assets and $ 1,948 (in thousands) in non-current assets, compared with $ 816 (in thousands) and $ 1,935 (in thousands), respectively.
- Lines of credit were $ - (in thousands), compared with $ 141 (in thousands).
- Current portion of bank loans payable was $ 246 (in thousands), compared with $ 256 (in thousands); bank loans payable, net of current portion, were $ 199 (in thousands), compared with $ 428 (in thousands).
- Total assets were $ 60,687 (in thousands), compared with $ 41,068 (in thousands).
- Total liabilities were $ 17,672 (in thousands), compared with $ 7,077 (in thousands).
- Total equity was $ 43,015 (in thousands), compared with $ 33,991 (in thousands).
- Net cash provided by operating activities increased to $3.4 million from $0.4 million in fiscal 2025.
Analysis
Trio-Tech closed fiscal 2026 with substantially higher scale. Total revenue increased 72% to $62.6 million, led by 99% growth in Semiconductor Back-end Solutions revenue to $49.0 million. Industrial Electronics revenue increased 15% to $13.6 million for the year, although Q4 IE revenue declined to $2.8 million from $4.1 million in the prior-year quarter. Management attributed SBS growth to semiconductor reliability-testing demand, including AI-related chip testing, as customers expanded advanced-computing programs and diversified testing activity across Southeast Asia.
The profitability outcome did not match the revenue growth. Fiscal 2026 gross profit was $10.4 million and gross margin was 17% of revenue, compared with $9.1 million and 25% of revenue in fiscal 2025. Total operating expense increased to $10.6 million from $8.9 million, producing an operating loss of $204,000 versus operating income of $254,000. The Company identified higher general and administrative expense related to corporate activity, the stock split, investor relations and communications initiatives, and higher stock-based compensation expense as primary factors in the year-over-year operating change.
The fourth quarter showed the same margin and earnings pressure. Revenue was $14.9 million, up approximately 40%, with SBS revenue up approximately 85% to $12.1 million. Gross margin was 19% of revenue versus 25% in the prior-year quarter, and total operating expense rose to $3.0 million from $2.2 million. The result was an operating loss of $266,000 and a net loss attributable to common shareholders of $199,000, compared with operating income of $467,000 and net income of $183,000 in Q4 fiscal 2025.
Liquidity and demand visibility improved. Net cash provided by operating activities increased to $3.4 million from $0.4 million, while cash, cash equivalents, short-term deposits and restricted term deposits totaled approximately $28.5 million at June 30, 2026. Total backlog was $24.2 million versus $11.0 million a year earlier, including approximately $19.8 million in SBS and approximately $4.4 million in IE. The outlook does not provide quantitative revenue or profit guidance, but cites remaining burn-in board orders, a new approximately $1.5 million purchase order, a three-year automotive contract, expanded Malaysia capacity, and approximately $4.6 million of IE first-quarter bookings to date.
The key fiscal 2027 execution points are conversion of the elevated backlog and order activity into revenue, the planned progressive production increase beginning in the second quarter, and recovery in margin and operating profitability. The expanded Perai, Penang facility provides approximately 104,000 square feet of additional space, while the Company expects demand across AI, high-performance computing, automotive, aerospace, display solutions and other industrial markets. The reported results establish demand momentum and improved cash generation, but also show that higher costs and lower gross margin offset much of the benefit of fiscal 2026 revenue growth.
Management, verbatim
Fiscal 2026 marked a significant step forward for Trio-Tech, with total revenue up 72% to $62.6 million and Semiconductor Back-End Solutions revenue nearly doubling to $49 million.
S.W. Yong, Chairman and CEO
We exited fiscal 2026 with a total backlog of $24.2 million, more than double the $11.0 million at the end of fiscal 2025, providing a strong foundation as we enter fiscal 2027.
S.W. Yong, Chairman and CEO
With a strong balance sheet, significantly expanded capacity in Malaysia, and growing opportunities across AI, high-performance computing, EV and autonomous-vehicle semiconductors, and Industrial Electronics, we believe we are well positioned for continued growth in fiscal 2027 and beyond.
S.W. Yong, Chairman and CEO
Not in the filing
stated, not guessed- No previous outlook section was provided, so comparison with prior guidance is unavailable.
- No quantitative fiscal 2027 revenue guidance was provided.
- No quantitative fiscal 2027 gross-margin guidance was provided.
- No quantitative fiscal 2027 operating-expense guidance was provided.
- No quantitative fiscal 2027 tax-rate guidance was provided.
- Free cash flow was not reported.
- Capital expenditures were not reported.
- Share repurchases were not reported.
- Dividends were not reported.
- No non-GAAP financial measures were reported.
- Q4 fiscal 2026 operating cash flow was not reported.
- Prior-quarter comparisons were not reported for the income-statement metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.