Advanced Energy Industries Inc

• Debt to equity is about 0.87x.
• [TRIGGER] 8-K: 8-K (sec_8k_material) on AEIS — filing_type=8-K; max_severity=medium; ignored_items=['9.01']; material_items=['2.02']; all_items_found=['2.02', '9.01']; severity_per_code={'2.02': 'medium'}; contributing_watchers=sec_8k_material (source=sec_8k_material; url=0000927003-26-000030)
• Unaudited Consolidated Statements of Operations (In millions, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended June 30, ​ Six Months Ended June 30, ​ ​ ​ ​ 2026 ​ 2025 ​ ​ ​ 2026 ​ ​ ​ 2025 Revenue, net ​ $ 574.1 ​ $ 441.5 ​ $ 1,085.1 ​ $ 846.1 Cost of revenue ​ 338.0 ​ 278.1 ​ 648.1 ​ 532.2 Gross profit ​ 236.1 ​ 163.4 ​ 437.0 ​ 313.9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ Research and development ​ 65.0 ​ 59.0 ​ 127.4 ​ 113.2 Selling, general, and administrative ​ 69.4 ​ 60.2 ​ 131.7 ​ 119.2 Amortization of intangible assets ​ 5.2 ​ 5.6 ​ 10.5 ​ 11.1 Restructuring, asset impairments, and other charges ​ 1.4 ​ 7.0 ​ 4.0 ​ 8.2 Total operating expenses ​ 141.0 ​ 131.8 ​ 273.6 ​ 251.7 Operating income ​ 95.1 ​ 31.6 ​ 163.4 ​ 62.2 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest income ​ ​ 8.2 ​ ​ 6.6 ​ ​ 14.0 ​ ​ 13.5 Interest expense ​ ​ ( 3.3 ) ​ ​ ( 4.2 ) ​ ​ ( 7.4 ) ​ ​ ( 8.4 ) Loss on induced conversion of debt ​ ​ ( 31.8 ) ​ ​ — ​ ​ ( 31.8 ) ​ ​ — Other expense, net ​ ( 1.6 ) ​ ( 4.7 ) ​ ( 1.6 ) ​ ( 8.1 ) Income from continuing operations, before income tax ​ 66.6 ​ 29.3 ​ 136.6 ​ 59.2 Income tax provision ​ 12.1 ​ 3.8 ​ 14.8 ​ 8.8 Income from continuing operations ​ 54.5 ​ 25.5 ​ 121.8 ​ 50.4 Loss from discontinued operations, net of income tax ​ ( 0.4 ) ​ ( 0.3 ) ​ ( 0.9 ) ​ ( 0.5 ) Net income ​ $ 54.1 ​ $ 25.2 ​ $ 120.9 ​ $ 49.9 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic weighted-average common shares outstanding ​ 38.9 ​ 37.6 ​ 38.3 ​ 37.6 Diluted weighted-average common shares outstanding ​ 42.3 ​ 37.8 ​ 42.3 ​ 38.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per share: ​ ​ ​ ​ ​ ​ ​ ​ Continuing operations: ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 1.40 ​ $ 0.68 ​ $ 3.18 ​ $ 1.34 Diluted earnings per share ​ $ 1.29 ​ $ 0.67 ​ $ 2.88 ​ $ 1.33 Discontinued operations: ​ ​ ​ ​ ​ ​ ​ ​ Basic loss per share ​ $ ( 0.01 ) ​ $ ( 0.01 ) ​ $ ( 0.02 ) ​ $ ( 0.01 ) Diluted loss per share ​ $ ( 0.01 ) ​ $ ( 0.01 ) ​ $ ( 0.02 ) ​ $ ( 0.01 ) Net income: ​ ​ ​ ​ ​ ​ ​ ​ Basic earnings per share ​ $ 1.39 ​ $ 0.67 ​ $ 3.16 ​ $ 1.33 Diluted earnings per share ​ $ 1.28 ​ $ 0.67 ​ $ 2.86 ​ $ 1.31 ​ The accompanying notes are an integral part of these unaudited consolidated financial statements.
• Unaudited Consolidated Statements of Cash Flows (In millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six Months Ended June 30, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 CASH FLOWS FROM OPERATING ACTIVITIES: ​ ​ ​ ​ Net income ​ $ 120.9 ​ $ 49.9 Less: loss from discontinued operations, net of income tax ​ ( 0.9 ) ​ ( 0.5 ) Income from continuing operations, net of income tax ​ 121.8 ​ 50.4 Adjustments to reconcile net income to net cash from operating activities: ​ ​ ​ ​ Depreciation and amortization ​ 32.3 ​ 31.7 Stock-based compensation ​ 39.5 ​ 26.6 Amortization of debt issuance costs and debt discount ​ ​ 2.1 ​ ​ 1.6 Loss on induced conversion of debt ​ ​ 31.8 ​ ​ — Deferred income taxes ​ 1.4 ​ 0.5 Impairment charge on long-lived assets ​ ​ 0.5 ​ ​ 1.6 Other ​ ​ ( 0.3 ) ​ ​ ( 0.5 ) Changes in operating assets and liabilities, net of assets acquired ​ ​ ​ ​ Accounts receivable, net ​ ( 79.9 ) ​ ( 34.9 ) Inventories ​ ( 128.3 ) ​ ( 32.6 ) Other assets ​ ( 20.9 ) ​ ( 3.9 ) Accounts payable ​ 92.5 ​ 49.7 Operating lease right-of-use assets and operating lease liabilities, net ​ ​ ( 1.5 ) ​ ​ 3.2 Other liabilities and accrued expenses ​ ( 11.0 ) ​ ( 17.7 ) Net cash from operating activities from continuing operations ​ 80.0 ​ 75.7 Net cash from operating activities from discontinued operations ​ ( 1.0 ) ​ ( 1.6 ) Net cash from operating activities ​ 79.0 ​ 74.1 ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM INVESTING ACTIVITIES: ​ ​ ​ ​ Purchases of long-term investments ​ ​ ( 1.4 ) ​ ​ ( 1.6 ) Purchases of property and equipment ​ ( 86.1 ) ​ ( 42.0 ) Net cash from investing activities ​ ( 87.5 ) ​ ( 43.6 ) ​ ​ ​ ​ ​ ​ ​ CASH FLOWS FROM FINANCING ACTIVITIES: ​ ​ ​ ​ Payment of debt issuance costs ​ ​ ( 0.1 ) ​ ​ ( 1.9 ) Dividend payments ​ ​ ( 7.9 ) ​ ​ ( 7.7 ) Payment of acquisition holdback ​ ​ — ​ ​ ( 1.5 ) Purchase and retirement of common stock ​ ​ ( 0.5 ) ​ ​ ( 23.7 ) Net payments related to stock-based awards ​ ( 39.1 ) ​ ( 8.0 ) Proceeds from issuance of 2031 Notes, net ​ ​ 1,129.3 ​ ​ — Premiums paid for Capped Call – 2031 Notes ​ ​ ( 69.0 ) ​ ​ — Payments related to induced conversion – 2028 Notes ​ ​ ( 440.5 ) ​ ​ — Proceeds from Note Hedges and Warrants unwind – 2028 Notes ​ ​ 44.6 ​ ​ — Net cash from financing activities ​ 616.8 ​ ( 42.8 ) ​ ​ ​ ​ ​ ​ ​ Effect of currency translation on cash, cash equivalents and restricted cash ​ ( 1.0 ) ​ 3.7 ​ ​ ​ ​ ​ ​ ​ NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH ​ 607.3 ​ ( 8.6 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period ​ 791.2 ​ 722.1 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period ​ $ 1,398.5 ​ $ 713.5 ​ The accompanying notes are an integral part of these unaudited consolidated financial statements.

Bull / Bear case

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