The revenue and operating profit growth look positive on the surface, but the EPS collapse from massive dilution and declining copper volumes signal underlying weakness. Monitor whether the inventory build converts to cash flow in Q3 and whether copper price tailwinds persist. The controlling shareholder PEWC now owns ~84% after the rights offering, limiting float and liquidity.
Price Chart
Executive Summary
APWC reported Q2 2026 revenue of $136.6M, up 8% YoY, and operating profit of $3.4M, up 36% YoY, driven by higher copper prices and public-sector orders. However, EPS collapsed to $0.01 (down 67% YoY) due to massive share dilution from the February 2026 rights offering, copper unit volumes fell 7% YoY, and operating cash flow was negative $18M. The prior 20-F showed operating profit plunging 36% for FY2025 and cash flow turning deeply negative, so this quarter's operating profit improvement is a modest reversal but EPS dilution and volume declines are clear negatives.
Key Facts
- Revenue grew 8% YoY to $136.6M, driven by higher copper prices and public-sector contracts.
- EPS fell to $0.01, down 67% YoY and 80% sequentially, due to a doubling of weighted average shares from the February 2026 rights offering.
- Copper unit volume (tonnage) declined 7% YoY and 3% sequentially, indicating real demand weakness beneath the revenue growth.
- Operating profit rose 36% YoY to $3.4M, but operating cash flow was negative $18.0M in Q2 vs. negative $15.5M a year ago.
- SG&A expenses increased 19.5% YoY, outpacing revenue growth.
- Inventory rose to $171.3M (+$20.7M QoQ) and short-term borrowings increased to $58.5M (+$16.6M vs. Dec 2025), reflecting working capital strain.
- The prior 20-F (filed 107 days ago) reported FY2025 operating profit down 36% and operating cash flow of -$7.8M vs. +$24.3M a year ago.
Financial Impact
Revenue up 8% YoY to $136.6M; operating profit up 36% YoY to $3.4M; EPS down 67% YoY to $0.01; operating cash outflow of $18.0M in Q2.
Risk Factors
- EPS dilution from February 2026 rights offering will continue to weigh on per-share metrics.
- Negative operating cash flow and rising short-term debt suggest working capital stress.
- Copper unit volume declining 7% YoY indicates real demand erosion beneath price-driven revenue growth.
- SG&A growing nearly 20% YoY is outpacing revenue growth and compressing margins.
- Controlling shareholder with ~84% stake creates governance risk and limits public float.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001628280-26-056972 |
| Document: apwc-form6xkfor2026q2earni.htm | 0001628280-26-056972 |
| Document: 0001628280-26-056972-index-headers.html | 0001628280-26-056972 |
| Document: 0001628280-26-056972-index.html | 0001628280-26-056972 |
| Document: 0001628280-26-056972.txt | 0001628280-26-056972 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | 6-K | $1.36 $1.29 | ▼ −5.15% | ▼ −7.87% | $1.22 (−10.29%) |
Sep 14, 2026 6w ago | Press Release | $1.36 $1.29 | ▼ −5.15% | ▼ −7.87% | $1.22 (−10.29%) |
Aug 14, 2026 10w ago | 6-K | $1.52 $1.31 | ▼ −13.82% | ▼ −11.82% | $1.22 (−19.74%) |
Aug 14, 2026 10w ago | Press Release | $1.52 $1.31 | ▲ +13.82% | ▲ +11.82% | $1.22 (+19.74%) |
May 14, 2026 23w ago | 6-K | $1.42 $1.37 | ▼ −3.52% | ▼ −2.66% | $1.22 (−14.08%) |
May 14, 2026 23w ago | Press Release | $1.42 $1.37 | ▼ −3.52% | ▼ −2.66% | $1.22 (−14.08%) |
May 1, 2026 25w ago | 6-K | $1.53 $1.45 | ▼ −5.36% | ▼ −10.64% | $1.22 (−20.26%) |
Apr 29, 2026 25w ago | 20-F | $1.57 $1.44 | ▼ −8.28% | ▼ −13.74% | $1.22 (−22.29%) |
Apr 29, 2026 25w ago | 6-K | $1.57 $1.44 | ▼ −8.28% | ▼ −13.74% | $1.22 (−22.29%) |
Apr 29, 2026 25w ago | Press Release | $1.57 $1.44 | ▼ −8.28% | ▼ −13.74% | $1.22 (−22.29%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers