Trio-Tech Gains After Q3 Results Highlight AI, EV Chip Demand

Trio-Tech International (NYSE:TRT) shares spiked after it reported fiscal third-quarter 2026 results on Thursday.

The semiconductor testing company reported strong revenue growth, driven by demand for AI and automotive chips for EVs.

Sales rose to $16.511 million from $7.384 million a year earlier. The company did not provide analyst estimates for revenue or earnings.

Profitability Improves Despite Margin Pressure

GAAP net loss attributable to common shareholders narrowed to $38,000, or approximately breakeven per diluted share, from a net loss of $495,000, or $0.06 per diluted share, in the prior-year quarter.

Operating loss improved to $81,000 from $343,000 a year earlier. Gross margin rose to $2.6 million from $2 million, while margin percentage declined to 16% from 27% due to a higher mix of lower-margin testing services.

Semiconductor Back-End Solutions revenue climbed 141% year over year to $13.1 million from $5.4 million, driven by higher testing volumes.

Industrial Electronics revenue increased 76% to $3.4 million from $2 million, supported by industrial, commercial and aerospace-related demand.

Liquidity And Expansion Plans

Cash, cash equivalents, short-term deposits, and restricted cash totaled $18.3 million as of March 31, 2026, compared with $19.5 million as of June 30, 2025.

Following the quarter, Trio-Tech raised about $10 million through a registered direct equity offering to support working capital and expand AI and automotive-related testing capacity.

The company announced about $5.3 million in Burn-In Board orders tied to a next-generation AI GPU platform and later received an additional $2.5 million in orders.

Trio-Tech also signed a lease for an additional 104,000 square feet in Malaysia to expand its capacity for AI-related testing services.

Outlook And Risks

Trio-Tech CEO S.W. Yong said Trio-Tech is “well-positioned as a key partner for semiconductor reliability,” particularly for customers in the AI and EV automotive markets.

The company expects increased demand for semiconductor back-end testing services and cited risks including semiconductor volatility, tariffs, U.S.-China trade tensions, currency fluctuations, and regulatory changes.

Price Action: TRT shares were trading 31.81% higher at $18.48 at the time of publication on Friday.

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