Innio Strong 2Q Results and Record Orders, Initial FY26 Guide Above Expectations

Research evidence excerpt

Innio Strong 2Q Results and Record Orders, Initial FY26 Guide Above Expectations

j. EBITDA - 27E ($ mn) 1,087 1,088 0.1%

agreement with Rehlko. The company disclosed >15 GW in backlog and slot

reservations, with FY27 capacity now fully booked. Importantly, ~94% of the Quarterly Forecasts (FYE Dec)

company’s data center backlog and slot reservations are tied to prime power, Adj. EPS ($)

which we believe supports visibility into revenue and margin upside well into 2025A 2026E 2027E

Q1 (0.01)A 0.14

the the 2030s as equipment reaches material service timelines. Q2 (0.02)A 0.18

• Solid 2Q results. INIO reported 2Q PF EBITDA of $172mm on revenue of Q3 0.09 0.19 Q4 0.18 0.23

$938mm, well above expectations (JPMe: $147mm/$885mm, Street: FY 0.19 0.24 0.74

$146mm/$882mm). The beat was primarily driven by Service PF EBITDA of

~$110mm on revenue of $368mm (JPMe: $85mm/$320mm), while

Equipment also beat modestly with PF EBITDA of $79mm on revenue of

$569mm (JPMe: $78mm/$565mm). Service PF EBITDA margin of 29.8%

was 220bps above our estimate, with a favorable parts vs labor service mix

offsetting investments in parts, capacity, and service force. Equipment PF

EBITDA margin of ~13.8% aligned with expectations, down y/y due to growth

investments and lower pricing for early data center projects.

• Initial FY26 guidance above expectations, seems conservative. INIO looks

for FY26 PF EBITDA of $720-740mm on revenue of $3.8-3.9bn, above JPMe/

Street expectations of $721mm/$3.80bn, with equipment/services revenue

mix trending towards 65%/35%, respectively. Management sees EBITDA

growth to be 4Q weighted for the back half of the year, aligned with our

expectations, driven by the capacity ramp and shipment cadence. We expect

Equipment PF EBITDA margins to meaningfully expand in the next two