Airtac’s First Three-Quarter EPS Tops Last Year as Q4 Revenue Holds Steady
Table of Contents
You might want to know
- How did Airtac’s earnings in the first three quarters compare with its full-year result last year?
- Which businesses are expected to drive growth through 2027?
Airtac’s Earnings and Business Outlook
Pneumatic components manufacturer Airtac (亞德客-KY, 1590-TW) held an investor conference on the 29th, reporting earnings per share (EPS) of NT$44.14 for the first three quarters. That result already surpassed its EPS of NT$42 for all of last year and set a new historical high. Company spokesperson Tsao Yung-hsiang said the business is benefiting from a recovery in traditional industries and strong demand related to artificial intelligence (AI) and automation. Three growth engines—linear guides, electronic control systems, and semiconductor-specific components—are beginning to contribute in turn. Based on current customer feedback and order visibility, the company expects fourth-quarter revenue to remain broadly level with the third quarter, outperforming the usual seasonal slowdown. For 2027, it expects linear-guide revenue to grow by more than 30% year over year.
Airtac announced unaudited financial results for the third quarter and the first three quarters. In the third quarter, revenue in renminbi was RMB2.427 billion, with a gross margin of 49.4%. Gross profit was RMB1.198 billion, operating profit was RMB823 million, and net income after tax was RMB600 million. Converted into New Taiwan dollars, quarterly consolidated revenue was NT$11.512 billion and net income after tax was NT$2.847 billion, translating into EPS of NT$14.23.
For the first three quarters, consolidated revenue totaled RMB7.238 billion and net income after tax reached RMB1.897 billion. On a New Taiwan dollar basis, revenue was NT$33.69 billion and net income after tax was NT$8.828 billion. EPS came to NT$44.14, exceeding the NT$42 reported for the entire previous year. The first-three-quarter result therefore set a new historical EPS high before the year had ended.
Management also addressed questions about tariffs and geopolitical tensions. Airtac said that many customers are establishing production capacity overseas, but their equipment supply chains continue to rely heavily on China’s efficiency and cost advantages. As an upstream supplier of pneumatic components, Airtac supplies equipment manufacturers in China whose complete machines are then exported to overseas markets. In this way, the company may benefit indirectly from the reshaping of supply chains amid geopolitical changes.
The company added that higher global tariff barriers have led some traditional-industry customers to move production capacity back to China. This shift is supporting demand for machine tools, general machinery, packaging, and textile equipment. Airtac expects these traditional-industry segments to maintain double-digit growth in 2027. Its outlook reflects a combination of overseas capacity expansion and continued reliance on Chinese equipment supply chains, rather than a simple move away from China.
Linear guides are one of the company’s key growth initiatives. Although the market faces some price competition, Airtac says its product quality and delivery-time advantages have helped it continue to expand market share. Capacity utilization has risen to more than 40%. The company aims to reach 50% by the end of 2026, at which level the gross margin is expected to be about 30%. If utilization exceeds 80%, the gross margin could rise further to 40%. These targets indicate that the profitability of the business could improve as production capacity is used more fully.
Airtac expects linear-guide revenue to grow by more than 30% in 2027. Over the longer term, it aims to build the business to RMB3 billion within 10 years. The company’s strategy is to expand sales while improving utilization, with quality and delivery performance serving as differentiators in a competitive market. The projected revenue growth and margin potential depend on customer demand, production ramp-up, and the company’s ability to maintain its competitive position.
Electronic control systems are another important area. Airtac said the business has a gross margin of as much as 60% and is continuing to grow at a double-digit rate this year. The company sees market potential of RMB3 billion over the next 10 years. Alongside electronic controls, it is developing electric cylinders and working to manufacture key components in-house. These products could serve future demand from humanoid robots and automated robotic arms, though the company’s comments describe a potential opportunity rather than a specific near-term revenue forecast.
In semiconductor-specific components, Airtac is seeking to benefit from China’s policy of encouraging domestic procurement. It is actively approaching customers in both the front-end and back-end stages of semiconductor manufacturing. The company said product development is progressing slightly ahead of expectations. Some products began shipping gradually in the fourth quarter of this year, contributing revenue earlier than initially anticipated. Airtac’s 10-year target for the segment is annual revenue of RMB1 billion.
The company is also adapting general-specification products it has developed over time to support semiconductor customers. Revenue from these products has increased from RMB5 million per month a year ago to RMB13 million per month currently. This increase points to a growing contribution from semiconductor-related demand, while the company’s longer-term target remains contingent on continued customer adoption and product development.
For the fourth quarter, Tsao said the period is typically a seasonal low point for the industry. Nevertheless, based on customer feedback and current order visibility, Airtac expects revenue to be level with the third quarter. That would represent better performance than the seasonal decline seen in previous years. For the full year, the company has maintained its targets of more than 20% revenue growth in renminbi and an operating margin of 34%.
Airtac also highlighted its financial position and capital-return policy. The company said its financial condition is sound and cash flow is strong. It plans to raise its cash-dividend payout ratio from 55% to 65% to return more value to shareholders. The payout ratio could rise further in the coming years, according to the company. Management described this plan as a reflection of confidence in future operations, while the company’s financial results and growth plans will remain important factors for investors assessing that outlook.
Key Insights Table
| Aspect | Description |
|---|---|
| First-three-quarter EPS | NT$44.14, above last year’s full-year EPS of NT$42 and a new historical high. |
| Third-quarter results | Revenue was RMB2.427 billion, gross margin was 49.4%, and EPS was NT$14.23. |
| Fourth-quarter outlook | Revenue is expected to be broadly level with the third quarter, despite the usual seasonal slowdown. |
| Full-year targets | Airtac maintained its targets of more than 20% revenue growth in renminbi and a 34% operating margin. |
| Linear guides | Utilization is above 40%; the company targets 50% by the end of 2026 and expects revenue growth of more than 30% in 2027. |
| Other growth businesses | Electronic controls have gross margins of as much as 60%; semiconductor-specific components are beginning to ship. |
| Shareholder returns | The planned cash-dividend payout ratio is increasing from 55% to 65%, with the possibility of further increases. |
Afterwards...
Airtac enters the final quarter with record year-to-date EPS, a broadly steady revenue outlook, and several developing growth businesses. Its near-term performance will depend on whether customer orders hold up through the seasonal low period, while its longer-term prospects are linked to the expansion of linear guides, electronic controls, and semiconductor-specific components. The company’s stated targets provide measurable milestones, including higher capacity utilization and revenue growth expectations for 2027. Investors will also be watching how the company balances expansion, margins, and its planned increase in cash dividends as these businesses mature.
Last edited at：2026/10/29
