Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 6 of last 7 quarters
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Allient's record bookings and 60% growth in data center power quality sales underscore the accelerating demand for electrical infrastructure to support AI compute density. The company's active/passive filters and line reactors are critical for stabilizing power in data centers, positioning Allient as a key supplier in the AI infrastructure buildout. Management's confidence in continued growth and capacity expansion signals sustained investment in this segment.
Allient delivered a strong Q2 with revenue up 10% to $153.8 million, record gross margin of 34.9%, and adjusted EPS up 42% to $0.80. Orders hit a record $201.3 million (book-to-bill 1.31x), with strength across Industrial (+17%), Aerospace & Defense (+16%), and Medical (+9%), while Vehicle declined 7%. Data center and infrastructure sales grew 60% to $16.3 million, and the company highlighted its power quality solutions (active/passive filters, line reactors) for AI-driven data centers. Operating margin improved to 10.2%, the highest in a decade, and net debt leverage improved to 1.63x.
Management expressed strong confidence in the second half of 2026, citing record bookings, a 1.31x book-to-bill ratio, and $298 million in backlog (most converting within 3-9 months). They expect continued growth in data center power quality, industrial automation, and Aerospace & Defense, with a full product launch for drones/unmanned systems at AUSA in October. They reiterated full-year restructuring costs of $2-3 million, capex of $12-15 million, and a tax rate of 21-23%. The tone was optimistic, with management noting strong order intake continuing into Q3.
“The quality of the quarter was evident across the P&L with strong top line growth, record gross margin and a significant increase in earnings. We also saw excellent order activity with record bookings in the quarter and in the period that resulted in a 1.31x book-to-bill ratio.”
on Q2 performance
“This opportunity is centered on the power quality layer of the data center, where our Allient Power portfolio brings deep domain expertise. Through active and passive harmonic filters, line reactors and related solutions, we help customers reduce harmonics, stabilize and clean the electrical waveform and meet stringent power quality standards, including IEEE 519 compliance.”
on Data center opportunity
“STAN is how we work. At its core, STAN is designed to unleash more of the organization's potential by empowering our teams to act with urgency, ownership and accountability.”
on STAN initiative
Is the data center revenue growth (up 60%) in line with order growth? Has it continued into Q3?
Dick Warzala confirmed data center order growth is in line with revenue growth and that order intake and shipments remain strong one month into Q3.
Were there any unusual large orders in the record bookings? Does the backlog imply a significant step-up in revenue?
Warzala explained that large blanket orders are only booked when within 1 year and scheduled for production, so some visibility isn't yet in backlog. He noted lead times have expanded, encouraging customers to order earlier, and that no single area drove the $200M bookings—demand is broad-based.