AirTAC International Group (1590) Q1 2026 earnings summary

Executive summary

• Pneumatic demand has entered a recovery cycle, with expectations for a sustained upcycle lasting over two to three years.

• Revenue and order book exceeded expectations in Q1 2026, driven by strong demand across multiple industries.

• Continuous product development and brand improvement are expected to drive annual revenue growth 10% above industry average.

Financial highlights

• Q1 2026 consolidated revenue was RMB 2.192 billion, up 32% year-over-year.

• Gross profit reached RMB 1.052 billion, up 33% year-over-year, with a gross margin of 48.0%.

• Operating income was RMB 728 million, up 45% year-over-year; operating margin was 33.2%.

• Net profit was RMB 585 million, up 36% year-over-year; net margin was 26.7%.

• EPS for Q1 2026 was TWD 13.35.

Outlook and guidance

• Raised 2026 guidance to mid-teens to high-teens percent revenue growth and 33% OP margin for the year.

• Expect double-digit revenue growth in electronics, battery, and auto segments in 2026.

• Linear guide business expected to reach 50% utilization by year-end, with gross margin improvement as utilization rises.

• Semiconductor product launches to begin in 2H 2026, with meaningful revenue contribution expected from 2027/2028.