AIXTRON orders jump 122% to €274.9 million as demand for optical communications equipment accelerates
Key Facts
AIXTRON equipment orders jumped 122% year over year to €274.9 million in the third quarter of 2026, compared with €124.0 million in the same period of 2025, according to full results published by the company on October 29. The increase outpaced quarterly revenue growth, which rose 54% to €183.6 million from €119.6 million. Optoelectronics accounted for about 68% of equipment orders, while power electronics represented 24%. The company said the expansion of AI-related data center networks is the most important structural driver of demand for high-speed optical connections. AIXTRON reaffirmed its 2026 revenue guidance of €560 million, with a gross margin of about 42% and an operating margin of between 17% and 20%.
The revenue outlook strengthened as the equipment order backlog rose to €549.4 million on September 30, 2026, compared with €286.5 million a year earlier and €257.8 million at the end of 2025. The company said this balance provides revenue visibility through 2027. The widening gap between orders and quarterly revenue reflects strong inflows of new orders during the quarter. However, the company described the recovery in power electronics as being in its early stages, with momentum improving in gallium nitride and silicon carbide technologies. Its chief executive said improved customer utilization of their equipment, renewed orders and preparations to expand production capacity provide increasing evidence of this recovery.
AIXTRON’s profitability improved alongside higher revenue and a shift in its product and regional mix. Gross margin rose to 48% in the third quarter from 39% a year earlier, while operating profit increased to €56.7 million from €15.4 million. The operating margin was 31%, compared with 13% in the third quarter of 2025. The company attributed the margin improvement to a more favorable mix of products and geographies, as well as higher revenue. But revenue for the first nine months remained slightly below the previous year, at €358.1 million, down 3% from €369.5 million.
The company recorded free cash flow of €289.9 million in the first nine months of 2026, an increase of €179.6 million from €110.3 million in the same period a year earlier. It said higher customer advance payments were the main driver of this cash flow. On the pace of demand, AIXTRON said the transition from 800-gigabit to 1.6-terabit optical transceivers will take place gradually. It linked this to customers completing qualification stages and supply chains maturing. The company expects the optoelectronics segment to drive strong growth in 2027, alongside continued improvement in power electronics indicators.
In the telecommunications sector, Cogeco Communications reported a 1.9% decline in revenue for the fourth quarter of its 2026 fiscal year to C$695.5 million. On a constant-currency basis, the decline was 2.8%, according to a company statement published on October 28. The company said its Canadian operations recorded year-over-year growth in adjusted EBITDA for the fourth consecutive quarter, alongside a return to growth in internet subscribers. By contrast, it said its U.S. operations faced intense competition and elevated customer losses during the quarter. It added that initiatives including wireless services, its Willow digital brand, television and new sales channels are aimed at addressing pressures in the U.S. market.
Cogeco announced a 2.0% increase in its quarterly dividend to C$1.007 per share, compared with C$0.987 a year earlier, after its board approved the dividend on October 28. The company set November 11, 2026, as the record date and November 25 as the payment date. It also forecast net capital expenditures of between C$425 million and C$475 million for fiscal 2027, and free cash flow of between C$500 million and C$550 million on a constant-currency basis. It said the expected level of capital expenditures would be lower than the previous year. The fourth-quarter results conference call was scheduled for October 29, 2026, at 8:00 a.m. Eastern Daylight Time.
AIXTRON’s calendar includes publication of its 2026 annual financial report on March 4, 2027, followed by its first-quarter 2027 report on April 29. This follows the company’s publication of full quarterly results on October 29, after releasing preliminary information on the third quarter on October 15. While the current results focus on order inflows tied to optoelectronics, the company continues to point to an emerging recovery in power electronics. Management expects 2027 to be a strong year for growth, led by optoelectronics. That outlook remains tied to the gradual transition to faster transmission technologies and a continued recovery in demand for power equipment.