Asbis Profit Jumps 337% as AI Servers Drive Q3 Sales, but Margins Narrow

Asbis reported third-quarter 2026 revenue of USD 2.19 billion, up 135% year on year, as sales of artificial intelligence servers transformed the electronics distributor’s business. Net profit rose 337% to USD 51.8 million and EBITDA reached USD 78.5 million. But the rapid expansion came with thinner gross margins and negative operating cash flow.

The group’s revenue of USD 2,186.7 million exceeded market expectations of USD 2,170 million. EBITDA was more than 10% above the USD 71 million consensus, while net profit beat the USD 46 million forecast, according to a November 5 analysis by IPOPEMA Securities prepared under the Warsaw Stock Exchange’s analytical coverage support programme.

AI servers account for more than half of revenue

Sales of AI servers reached USD 1,185.5 million in the quarter, accounting for roughly 54% of group revenue. Smartphone sales totalled USD 548.4 million. AI server revenue was more than twice that of smartphones and increased more than sixfold from a year earlier.

Asbis, traditionally known for distributing consumer electronics, is increasingly supplying equipment for data centres. IPOPEMA forecasts AI server sales of approximately USD 3.89 billion for the whole of 2026, compared with about USD 699 million in 2025. Its forecast for smartphone revenue is around USD 1.76 billion.

Nvidia and AMD technology underpin server-rack demand

The expansion involves components and complete server racks equipped with graphics processing units. Asbis distributes systems using Nvidia and AMD technology, often in cooperation with Supermicro.

In its second-quarter materials, Asbis reported an order book covering approximately 11,700 GPU racks, 80% of them Nvidia-based. At that time, the order book was valued at around USD 860 million and covered roughly 1,100 projects. These figures refer to the second quarter and are not an updated order book as of the end of September.

IPOPEMA believes deliveries of complete racks are a major driver of growth. Analysts also suggest that newer chips, including GB300 and the forthcoming Vera Rubin architecture, could raise the value of individual deliveries. This is an analyst scenario, not a confirmed management forecast.

EBITDA rises as gross margins weaken

EBITDA increased to USD 78.5 million from approximately USD 26 million a year earlier. The group’s international logistics network allows it to scale sales without a proportional increase in overheads.

Revenue rose almost 29% quarter on quarter, while selling, general and administrative expenses increased by around 5%. Cost discipline helped Asbis beat EBITDA forecasts despite a decline in gross profitability.

The gross margin fell to 6.16%, about 0.9 percentage points lower both year on year and quarter on quarter. IPOPEMA attributes the pressure to the sales mix: complete server systems may carry lower margins than Asbis’s traditional distribution products.

The brokerage estimates gross margins of around 5% on AI servers, compared with approximately 6% for iPhones, 8% for laptops and 15% for own-brand products. These are IPOPEMA’s assumptions, not category margins disclosed by Asbis. A larger AI server business could therefore continue to weigh on the group’s percentage margin even as revenue and operating profit increase.

Working capital absorbs cash

Net cash flow from operating activities was negative USD 46.4 million, compared with positive USD 4.7 million a year earlier. Growth in inventories and receivables exceeded USD 385 million, partly offset by an increase of approximately USD 300 million in payables. Free cash flow was negative USD 48.8 million.

IPOPEMA says supplying complete server racks may require more working capital than the earlier distribution of AI components, where customer prepayments played an important role. Strong revenue growth does not therefore translate automatically into higher cash generation.

The Netherlands leads regional sales

The Netherlands was Asbis’s largest market in the third quarter, generating USD 604.8 million, or almost 28% of group revenue. Sales also exceeded USD 200 million in each of Ukraine, Kazakhstan and Taiwan.

IPOPEMA maintains Hold rating

IPOPEMA described the results as slightly positive, citing stronger-than-expected EBITDA and net profit alongside effective cost control. It also highlighted the deterioration in gross margins and cash flow.

The brokerage maintained its Hold recommendation and a target price of PLN 159.80 per share. Against a November 4 share price of PLN 157, that implied upside of approximately 2%. Future performance will depend not only on AI infrastructure orders but also on delivery margins and the group’s ability to finance growing working-capital requirements.

Sources: IPOPEMA Securities, Asbis analysis dated November 5, 2026, Warsaw Stock Exchange analytical coverage support programme; Asbis quarterly report. Original Polish article.

For information only. This article does not constitute investment advice or a recommendation to buy or sell financial instruments.