Trio-Tech Revenue Soars 58% on Semiconductor Demand, Returns to Profit

TL;DR

**TRT is back in the black with surging semiconductor revenue, making it a speculative buy as the chip cycle heats up.**

AI Summary

Trio-Tech International (TRT) reported a significant increase in revenue for the three months ended September 30, 2025, reaching $15.514 million, up 58.3% from $9.799 million in the same period last year. This growth was primarily driven by its Semiconductor Back-end Solutions segment, which saw revenue jump 66.5% to $11.452 million from $6.879 million. The Industrial Electronics segment also contributed positively, with revenue increasing 39.1% to $4.052 million. Net income attributable to common shareholders improved substantially, turning a loss of $0.236 million in Q1 2024 into a profit of $0.077 million in Q1 2025. Operating income, however, decreased by 65.4% to $0.046 million from $0.133 million, largely due to a 6.5% increase in total operating expenses to $2.539 million. A key strategic move was the agreement to acquire the remaining 50% of Trio-Tech (Malaysia) Sdn. Bhd. for approximately $3.357 million, aiming for full ownership. Cash and cash equivalents rose to $12.262 million from $10.890 million at June 30, 2025, reflecting strong cash flow from operating activities of $0.933 million. Risks include international business operations, particularly in Asia, and the ongoing U.S.-China trade tensions.

Why It Matters

This 10-Q reveals TRT's strong top-line growth, particularly in its core semiconductor segment, which is crucial for investors looking for exposure to the booming chip industry. The return to net income profitability, albeit modest at $0.077 million, signals a positive shift from the previous year's loss, potentially attracting growth-oriented investors. The planned acquisition of the remaining 50% of Trio-Tech (Malaysia) Sdn. Bhd. for $3.357 million indicates a strategic consolidation effort to enhance operational control and potentially improve margins, which could impact future competitive positioning against larger industry players. For employees and customers, this growth suggests stability and continued demand for TRT's specialized testing services and equipment.

Risk Assessment

Risk Level: medium — The company faces medium risk due to its significant international exposure, particularly in Asia, as highlighted by the 'risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability.' Additionally, the filing explicitly mentions 'the trade tension between U.S. and China' and 'uncertainties relating to our ability to operate our business in China' as ongoing concerns, which could materially impact operations given its substantial presence in the region.

Analyst Insight

Investors should consider TRT as a potential growth play given its strong revenue rebound in the semiconductor sector and return to profitability. Monitor the integration of the Trio-Tech (Malaysia) acquisition and its impact on future earnings, as well as geopolitical developments affecting its Asian operations, particularly in China.

Financial Highlights

debt To Equity

0.39

revenue

$15.514M

operating Margin

0.03%

total Assets

$47.378M

total Debt

$1.645M

net Income

$0.077M

eps

$0.02

gross Margin

16.66%

cash Position

$12.262M

revenue Growth

+58.3%

Revenue Breakdown

Key Numbers

• $15.514M — Total Revenue (Increased 58.3% from $9.799 million in Q1 2024)
• $11.452M — Semiconductor Back-end Solutions Revenue (Increased 66.5% from $6.879 million in Q1 2024)
• $0.077M — Net Income Attributable to Common Shareholders (Turned from a loss of $0.236 million in Q1 2024)
• $0.046M — Income from Operations (Decreased 65.4% from $0.133 million in Q1 2024)
• $3.357M — Purchase Price for Trio-Tech (Malaysia) Acquisition (Cash payment for remaining 50% stake)
• $12.262M — Cash and Cash Equivalents (Increased from $10.890 million at June 30, 2025)
• $0.933M — Net Cash Provided by Operating Activities (Positive cash flow compared to a use of $1.857 million in Q1 2024)
• 4,350,555 — Shares Outstanding (As of November 1, 2025)
• $0.02 — Basic Earnings Per Share (Positive EPS compared to -$0.06 in Q1 2024)

Key Players & Entities

• Trio-Tech International (company) — Registrant and parent company
• Lodestar Enterprise Sdn. Bhd. (company) — Seller of 50% stake in Trio-Tech (Malaysia) Sdn. Bhd.
• Trio-Tech International Pte. Ltd (Singapore) (company) — Wholly-owned subsidiary acquiring stake in Trio-Tech (Malaysia) Sdn. Bhd.
• Trio-Tech (Malaysia) Sdn. Bhd. (company) — Target of 50% acquisition by Trio-Tech International
• Ministry of Investment, Trade and Industry in Malaysia (regulator) — Approving authority for the acquisition
• U.S. Securities and Exchange Commission (regulator) — Regulator for 10-Q filing
• NYSE American (regulator) — Stock exchange where TRT is listed
• Universal (Far East) Pte. Ltd. (company) — Subsidiary that changed functional currency
• FASB (regulator) — Issued ASU 2023-09 on income tax disclosures

FAQ

Risk Factors

• International Operations [high — operational]: The company's operations are heavily reliant on international business, particularly in Asia. This exposes TRT to risks associated with geopolitical instability, currency fluctuations, and varying regulatory environments in these regions.
• U.S.-China Trade Tensions [medium — market]: Ongoing trade tensions between the U.S. and China can disrupt supply chains, increase costs, and impact demand for semiconductor-related products. This is a significant concern given the global nature of the semiconductor industry.
• Acquisition Integration Risk [medium — financial]: The acquisition of the remaining 50% of Trio-Tech (Malaysia) Sdn. Bhd. for $3.357 million introduces integration risks. Failure to successfully integrate the subsidiary could lead to operational inefficiencies and impact financial performance.
• Supply Chain Disruptions [medium — operational]: The company's reliance on global supply chains, especially for semiconductor components, makes it vulnerable to disruptions. Events like natural disasters, pandemics, or geopolitical issues can impact the availability and cost of raw materials and finished goods.

Industry Context

Trio-Tech International operates within the semiconductor equipment and services sector, a highly cyclical industry influenced by global demand for electronics and technological advancements. The industry is characterized by significant R&D investment, long product development cycles, and intense competition from both established players and emerging companies. Recent trends include increasing demand for advanced packaging solutions and automation in manufacturing.

Regulatory Implications

TRT's international operations, particularly in Asia, expose it to a complex web of international trade regulations, tariffs, and export controls. Changes in these regulations, such as those related to U.S.-China trade relations, could materially impact the company's supply chain, costs, and market access.

What Investors Should Do

1. Monitor the integration of Trio-Tech (Malaysia) Sdn. Bhd.
2. Analyze the sustainability of revenue growth.
3. Evaluate operating expense management.
4. Assess the impact of geopolitical risks.

Key Dates

• 2025-09-30: End of Q1 2025 — Reported significant revenue growth of 58.3% and a swing from net loss to net income.
• 2025-11-01: Shares Outstanding Date — Indicates the number of shares outstanding for EPS calculation, which was 4,350,555.
• 2025-09-30: Balance Sheet Date — Shows cash and cash equivalents at $12.262M, an increase from June 30, 2025.
• 2025-09-30: Statement of Operations Date — Details revenue and cost of sales for the period, highlighting gross margin.
• 2025-09-30: Statement of Cash Flows Date — Reveals positive net cash from operating activities of $0.933M.

Glossary

Semiconductor Back-end Solutions

Refers to the manufacturing processes that occur after the initial wafer fabrication, including assembly, testing, and packaging of semiconductor devices. (This is a key revenue driver for TRT, showing substantial growth in the current period.)

Industrial Electronics

Electronic components and systems used in industrial applications, such as automation, control systems, and power management. (Another significant segment contributing to TRT's overall revenue.)

Non-controlling interest

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership interest of outside shareholders. (TRT's non-controlling interest turned from a negative value (-$37K) to a positive value ($88K), indicating a change in ownership structure or profitability of subsidiaries.)

Accumulated other comprehensive income-translation adjustments

Gains or losses arising from the translation of foreign currency financial statements into the reporting currency of the parent company. (This line item reflects the impact of foreign currency exchange rates on TRT's consolidated equity.)

Operating lease right-of-use assets

An asset recognized under accounting standards for lessees, representing the right to use an underlying asset for the lease term. (The increase in these assets from $864K to $1.401M suggests new lease agreements or changes in lease terms.)

Contract liabilities

Obligations to transfer goods or services to a customer for which the entity has received consideration from the customer. (A small but present liability indicating advance payments from customers for future services or goods.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Trio-Tech International has demonstrated robust revenue growth, with total revenue increasing by 58.3% to $15.514 million, primarily fueled by its Semiconductor Back-end Solutions segment. The company has successfully transitioned from a net loss of $0.236 million to a net profit of $0.077 million. However, operating income saw a significant decline of 65.4% due to a 6.5% increase in operating expenses. Cash flow from operations has improved dramatically, turning a significant outflow in the prior year to a positive inflow of $0.933 million.

Key Financial Figures

• $815 — erm obligations. Restricted deposits of $815 and $804 as at September 30, 2025 and 2
• $804 — ations. Restricted deposits of $815 and $804 as at September 30, 2025 and 2024, resp
• $1,925 — the other hand, restricted deposits of $1,925 and $1,898 as at September 30, 2025 and
• $1,898 — hand, restricted deposits of $1,925 and $1,898 as at September 30, 2025 and 2024, resp

Filing Documents

• trt20250930_10q.htm (10-Q) — 1570KB
• ex_864433.htm (EX-31.1) — 8KB
• ex_864434.htm (EX-31.2) — 8KB
• ex_864435.htm (EX-32) — 5KB
• 0001437749-25-034999.txt ( ) — 9497KB
• trt-20250930.xsd (EX-101.SCH) — 90KB
• trt-20250930_cal.xml (EX-101.CAL) — 86KB
• trt-20250930_def.xml (EX-101.DEF) — 520KB
• trt-20250930_lab.xml (EX-101.LAB) — 467KB
• trt-20250930_pre.xml (EX-101.PRE) — 587KB
• trt20250930_10q_htm.xml (XML) — 1819KB

Financial Statements

Financial Statements 1 (a) Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited), and June 30, 2025 1 (b) Condensed Consolidated Statements of Operations and Comprehensive Income / (Loss) for the Three Months Ended September 30, 2025 (Unaudited), and September 30, 2024 (Unaudited) 2 (c) Condensed Consolidated Statements of Shareholders' Equity for the Three Months Ended September 30, 2025 (Unaudited), and September 30, 2024 (Unaudited) 4 (d) Condensed Consolidated Statements of Cash Flows for the Three Months Ended September 30, 2025 (Unaudited), and September 30, 2024 (Unaudited) 5 (e) Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 38 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults upon Senior Securities 39 Item 4. Mine Safety Disclosures 39 Item 5. Other Information 39 Item 6. Exhibits 39

Signatures

Signatures 40 -i- Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS The discussions of Trio-Tech International's (the "Company") business and activities set forth in this Quarterly Report on Form 10-Q (this "Quarterly Report") and in other past and future reports and announcements by the Company may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and assumptions regarding future activities and results of operations of the Company. In light of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the following factors, among others, could cause actual results to differ materially from those reflected in any forward-looking statements made by or on behalf of the Company: market acceptance of Company products and services; changing business conditions or technologies and volatility in the semiconductor industry, which could affect demand for the Company's products and services; the impact of competition; problems with technology; product development schedules; delivery schedules; changes in military or commercial testing specifications which could affect the market for the Company's products and services; difficulties in profitably integrating acquired businesses, if any, into the Company; or the divestiture in the future of one or more business segments; risks associated with conducting business internationally and especially in Asia, including currency fluctuations and devaluation, currency restrictions, local laws and restrictions and possible social, political and economic instability; changes in U.S. and global financial and equity markets, including market disruptions and significant interest rate fluctuations; the trade tension between U.S. and China; inflation; the war in Ukraine and Russia, the ongoing conflict between Israel and Hamas; other economic, financial and regulatory factors beyond the Company's control and uncertainties relati

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TRIO-TECH INTERNATIONAL AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES) September 30, June 30, 2025 2025 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 12,262 $ 10,890 Short-term deposits 5,101 5,817 Trade accounts receivable, less allowance for expected credit losses of $ 59 and $ 35 , respectively 15,860 10,804 Other receivables 705 608 Inventories, less provision for obsolete inventories of $ 823 and $ 851 , respectively 2,404 2,262 Prepaid expense and other current assets 494 384 Restricted term deposits 815 816 Total current assets 37,641 31,581 NON-CURRENT ASSETS: Deferred tax assets 92 91 Investment properties, net 330 345 Property, plant and equipment, net 5,753 6,021 Operating lease right-of-use assets 1,401 864 Other assets 236 231 Restricted term deposits 1,925 1,935 Total non-current assets 9,737 9,487 TOTAL ASSETS $ 47,378 $ 41,068 LIABILITIES CURRENT LIABILITIES: Lines of credit $ - $ 141 Accounts payable 7,821 1,896 Accrued expense 2,969 3,036 Contract liabilities 255 250 Income taxes payable 93 122 Current portion of bank loans payable 257 256 Current portion of finance leases 32 43 Current portion of operating leases 527 540 Total current liabilities 11,954 6,284 NON-CURRENT LIABILITIES: Bank loans payable, net of current portion 365 428 Operating leases, net of current portion 874 324 Deferred tax liabilities 9 10 Other non-current liabilities 32 31 Total non-current liabilities 1,280 793 TOTAL LIABILITIES $ 13,234 $ 7,077 EQUITY TRIO-TECH INTERNATIONAL SHAREHOLDERS' EQUITY: Common stock, no par value, 15,000,000 shares authorized; 4,312,805 shares issued outstanding as at September 30, 2025 and June 30, 2025, respectively $ 13,490 $ 13,490 Paid-in capital 6,037 5,979 Accumulated retained earnings 12,114 12,037 Accumulated oth

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View this 10-Q filing on SEC EDGAR