At a glance. Systems Electronics used its FY2025 investor conference to date a BBU ramp and put an HVDC SKU on the calendar: 11 kW and 5.5 kW mass production in 2026Q2, 3 kW in 2026Q3, and a 25 kW HVDC BBU in development with two customers, volume possible in 2027–2028. Earnings were the trough. Pegatron is in as the largest corporate shareholder. Management has met NVIDIA and is not a supplier.
What changed this year
The mix flipped toward the growth lines. Energy systems (BBU) went from 10% of 2024 sales to 20%; industrial PCs from 14% to 23%; TPMS from 77% to 57%. Group revenue was NT$3.394bn (~US$108m), +9.1%. IPC monthly sales, once NT$20–30m, are now close to NT$100m (~US$3.2m).
Three capital moves closed around the year-end. The energy subsidiary was recapitalised for the BBU build-out; a strategic investment in Celxpert was meant to firm battery-cell supply; and Pegatron came in via private placement as the largest single corporate shareholder. Combined with year-end cash of NT$2.61bn (~US$83m), deployable cash after the Pegatron money is more than NT$3bn (~US$95m).
Profit was sacrificed for the build. Operating profit was −NT$17m. R&D rose about NT$50m (~US$1.6m) for BBU, drone and IPC work; R&D plus admin together were up nearly NT$150m (~US$4.8m) on the Texas plant and headcount. Management called 2025 the earnings trough.
The numbers
| FY 2025 | Value | Change |
|---|---|---|
| Revenue | NT$3.394bn (~US$108m) | +9.1% |
| Gross profit | NT$798m (~US$25m) | — |
| Gross margin | 23.5% | — |
| Operating profit | −NT$17m | trough year |
| Net income (parent) | NT$53m (~US$1.7m) | — |
| EPS | NT$0.27 (~US$0.01) | — |
Liquidity is not the constraint: current ratio near 3, quick ratio about 2.6. One automated BBU line costs about NT$100m (~US$3.2m); several more are affordable on the cash pile.
NVIDIA 800V read-through
This is a BBU name, not a PSU name, and the HVDC disclosure is specific.
Shipping-class products: 11 kW and 5.5 kW due to mass-produce in 2026Q2, 3 kW in 2026Q3. The HVDC product is a 25 kW BBU, in development with two customers (one domestic, one overseas). It will not mass-produce in 2026; volume is framed as 2027–2028. The call said HVDC, not 800V.
Customer set, as named: CSPs, colocation operators, server makers, and international power brands — not NVIDIA. Asked why CSPs (Google and Amazon were named) are more aggressive on BBU than NVIDIA, management said CSPs design their own NPUs and own the data-center infrastructure; NVIDIA sells the compute platform. Systems has met NVIDIA and is not a supplier.
Two supporting claims: it says it is the only BBU maker with a US production site, and that it was first to put in a fully automated BBU line (competitors have used the layout as a reference). Super-capacitors were described as complementary — they handle surge current and protect the lithium pack — and the company has been asked to quote, but there is no volume programme. BMS is in-house, not Celxpert's; management's view is that PSU majors such as Delta may choose not to build BBUs themselves given their own margin targets.
Segments that moved
| Line | 2025 share | 2024 share |
|---|---|---|
| TPMS | 57% | 77% |
| Industrial PCs (incl. drones) | 23% | 14% |
| Energy systems (BBU) | 20% | 10% |
BBU is the energy-systems line. Automotive-grade design rules, US manufacturing, and full automation are the three points management keeps repeating. 2028 ambition: energy systems above 50% of group sales, and a top-three global BBU position.
IPC is the high-margin companion. New projects keep landing; the named drone work with Quantum Systems and Vantage Robotics produced a four-aircraft demo in January 2026, plus a military-grade ground control station. At any time the company has 3–5 long-cycle (5–7 year) IPC projects running, some priced in the millions to tens of millions of NT dollars per unit.
TPMS is the mature cash business, roughly flat with the car market, with a Bluetooth patent that has reopened talks with European and US OEMs.
Pegatron cooperation is already running: joint purchasing, shared US manufacturing (Systems' Plano plant and Pegatron's Georgetown plant), and complementary selling into server and BBU channels.
Guidance
- Energy systems (BBU): 2026 revenue 2–3× the 2025 base of NT$400–500m (~US$13–16m).
- Industrial PCs: 2026 revenue NT$1.0–1.2bn (~US$32–38m), 1–1.5× the 2025 NT$400–500m; long-run growth 30–40% a year.
- TPMS: roughly flat.
- Gross margin: BBU 25%+, IPC 30%+; group GM expected to improve as those lines gain share. BBU is framed as a data-center safety part that customers will not swap for a 3–5% price gap.
- Opex ratio: R&D in dollars keeps rising; the ratio is expected to fall as sales scale, lifting net profit.
- Capacity: 2.5 BBU lines now (two fully automated, one semi), about NT$3bn (~US$95m) of annual output. Next year 6.5 lines, Taiwan plus the US; some capacity reserved for samples and new-project trials. Each line is about NT$1bn (~US$32m) of annual output.
- Plano, Texas: 100,000 sq ft. PCBA shipments from 2026Q2, then BBU and TPMS automation. Lead times cut from 5–6 weeks to 2–3 weeks.
- 2028: group revenue of NT$10bn (~US$317m).
Management Q&A
Q: What is the 2026 operating outlook, how do the three divisions rank on growth, and will revenue rise sharply quarter by quarter?
A: Energy systems have the strongest growth, with revenue expected to rise 2–3×. Industrial PCs are next, with revenue expected to grow 1–1.5× to NT$1.0–1.2bn. TPMS is expected to be roughly flat. Overall revenue growth is described as clear.
Q: As BBU and IPC mix rises, what is the 2026 group gross-margin range?
A: IPC gross margin is about 30% or higher, and BBU can be held above 25%. Because those two lines are a larger share of sales, group gross margin is expected to improve. BBU is a data-center safety part, so customers will not switch suppliers for a 3–5% price gap, which should keep the margin relatively stable.
Q: How are recent BBU customer shipments progressing, what revenue is expected this year, and how should the margin trend be read?
A: BBU revenue is expected to more than double this year, and gross margin can be held above 25%. If group revenue reaches NT$10bn in 2028, BBU is meant to contribute more than 50%.
Q: Does BBU have customers besides US CSPs, and what is the 25 kW BBU development status?
A: Besides CSPs, the customer set includes colocation operators, server makers and international power-supply houses. A 25 kW BBU (an HVDC product) is in development with customers, but it will not mass-produce this year; volume is more likely next year or the year after.
Q: What is the cadence of BBU line additions and the capex plan?
A: The company currently has 2.5 lines — two fully automated and one semi-automated — with a combined output value of nearly NT$3bn. Next year it plans to expand to 6.5 lines, with some of the added capacity reserved for sampling and new-project trial production.
Q: Is cash on hand enough to fund the expansion?
A: After including proceeds from the Pegatron private placement, cash on hand exceeds NT$3bn, which management called more than enough. A BBU line costs about NT$100m, so adding several lines is not a funding problem.
Q: After 2026 sales scale up, where is the operating-expense ratio expected to land?
A: Research-and-development spending will rise in dollars, but revenue is expected to grow faster, so operating expenses as a percentage of sales should fall. Net profit should therefore increase.
Q: Under current tariff policy, what is the advantage of manufacturing in the United States?
A: The advantage is not only tariffs. More important is cutting logistics time from four weeks to a few days, which lowers customer inventory and working-capital pressure and makes the supply chain more flexible. Local service and validation are also faster — production in the customer's "backyard" — and those values, management said, exceed the tariff itself.
Q: What is the progress of satellite-communications power-management systems at the Texas plant?
A: The US plant is just getting started, and Made-in-USA has opened opportunities that were not available before, including automotive and satellite communications. Those programmes are still in business development, with no clear mass-production timetable.
Q: Are super-capacitors a future trend for BBUs?
A: Yes. Super-capacitors can handle instantaneous high-current demand and protect lithium-battery life, so they complement BBUs. The concept is already used in data centers, and the company has been asked to quote, but there is no mass-production programme yet.
Q: Besides BBUs, where else are the company's lithium-battery modules used?
A: The group is split: Systems focuses on high-power, high-voltage applications such as BBUs, while Celxpert focuses on consumer electronics and drones. The addressable set is broad — anywhere a stable energy supply is needed.
Q: Why have CSPs adopted BBUs more aggressively than NVIDIA, and is there a path into NVIDIA's supply chain?
A: CSPs such as Google and Amazon design their own NPUs and have more experience owning data-center infrastructure, including BBUs, while NVIDIA focuses on the compute platform. The company has met NVIDIA several times but is not yet a supplier.
Q: Does BMS technology come from Celxpert, and will power-supply houses absorb it?
A: BMS is the company's own core technology and is different from Celxpert's. Power-supply majors such as Delta may have the capability, but given their business strategy and margin targets they will not necessarily build BBUs themselves, so a specialist division of labour remains.
Q: Why choose the United States when peers put BBU plants in Thailand, and what is the core competitive advantage?
A: The US choice is about sitting close to end customers and the AI cluster, not merely following power-supply houses. The stated core advantages are an automotive-grade quality mindset, local US manufacturing, and fully automated lines that management says lead peers.
Q: Is the drone business positioned as a module supplier or a system integrator, and what is the 2026–2027 growth outlook?
A: It is positioned as a system integrator, offering a full stack from compute modules and complete vehicles to ground-control stations. The business grows as projects and is expanding into robots and automated guided vehicles; the industrial-PC division as a whole is expected to sustain 30–40% annual growth.
Q: How many IPC projects with a 5–7 year life cycle are running, and how many similar programmes are expected to be added in 2026?
A: There are always 3–5 projects running, and the R&D team has been enlarged so it can take on more. Project scale and unit prices vary — some units can run to several million or even tens of millions of NT dollars — and together they support steady departmental growth.
Disclaimer
English notes on Systems Electronics' investor conference of 10 March 2026, covering FY 2025. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.