In 2025, the global economy continued to expand at a gradual pace amid ongoing uncertainties arising from geopolitical tensions, global trade policies, and the direction of interest rates in major economies. These factors continued to affect global trade, supply chains, and investment decisions across various industries. In Thailand, such impacts were reflected in the export sector and automotive industry, which remained under pressure from uneven recovery in external demand, elevated financial costs, and increasing competition from other manufacturing countries. Meanwhile, domestic consumption, although partially supported by the tourism sector and certain economic stimulus measures, remained constrained by high household debt and the gradual recovery of purchasing power. Consequently, Thailand’s short-term economic outlook continues to face challenges, requiring businesses to adapt continuously in order to enhance competitiveness and create long-term value.

Recognizing the volatility of the global economy, the Board of Directors established the Company’s operating direction for fiscal year 2025/2026 with a focus on leveraging innovation and technology to strengthen competitiveness in the global market, alongside driving organic growth and developing new S-Curves continuously. In addition, the Company has intensively implemented the “USE” policy, comprising U: Utilization – maximizing resource utilization, S: Save – prudent cost management and savings, and E: Efficiency – enhancing operational efficiency. This policy aims to improve operational performance, reduce cost burdens, and increase business agility. At the same time, the Company places emphasis on prudent liquidity management by maintaining an appropriate level of cash reserves to support operations and future growth opportunities, while reinforcing the Company’s long-term resilience and operational flexibility.

For fiscal year 2025/2026, the Company reported total sales revenue of 13,508 million Baht, representing an decrease of 2%, and net profit of 1,312 million Baht, representing an increase of 62% compared to the previous year. The thermal insulation business under the Aeroflex brand achieved growth in line with targets both domestically and internationally, particularly in the United States market, supported by investments in industrial and infrastructure sectors such as semiconductors, cloud systems, and data centers. At the same time, the Company has prepared mitigation plans to address uncertainties related to trade policies and logistics costs in order to minimize potential future impacts.

For the automotive parts and accessories business under the Aeroklas brand, demand from OEM customers remained limited amid the gradual recovery of the automotive industry in Thailand and overseas, as well as intensified market competition. Nevertheless, the Company utilized this period to restructure costs, enhance operational efficiency, and develop new products in preparation for future market recovery. In Australia, the Company focused on prudent expense management alongside operational improvement initiatives, while 4 Way Suspension Products Pty., Ltd. continued to demonstrate improved operating performance, driven by demand for new products in both the Australian and international markets. Meanwhile, the plastic packaging business under the EPP brand continued to emphasize cost control, production efficiency enhancement, and leveraging internationally recognized manufacturing standards to expand its industrial customer base and strengthen competitiveness amid increasingly intense market competition.

In addition, the Company systematically optimized its cost structure and working capital management while enhancing resource utilization efficiency throughout the production process. Overall, the joint venture business demonstrated improved performance.

Based on the Company’s operating performance, the Board of Directors resolved to approve an interim dividend payment for the operating results ended 30 September 2025 at the rate of Baht 0.07 per share, totaling Baht 196 million, which was paid to shareholders on 9 December 2025. Furthermore, the Board resolved to propose to the 2026 Annual General Meeting of Shareholders the approval of an annual dividend payment at the rate of 0.13 Baht per share, totaling 364 million Baht. Combined with the interim dividend, the total annual dividend payment will amount to 560 million Baht, representing 42.6% of net profit (Payout Ratio).

The Group’s success lies in being a global leader in innovation, manufacturing, and distribution for sustainable growth.

Creative Innovation Organization

The Company drives its organization through innovation by continuously focusing on research and development, production process improvement, and the creation of new S-Curves to strengthen its global competitiveness.

The insulation business under the Aeroflex brand focuses on developing high-performance insulation products for buildings and industrial applications, including AERO-ROOF thermal insulation, AEROCOUSTIC-SP sound absorption insulation, and prefabricated insulated metal sheet roofing systems (EPDM cool rubber), in order to address energy efficiency, safety, and quality of life requirements. Meanwhile, the automotive parts and accessories business under the Aeroklas brand works closely with original equipment manufacturers (OEMs) to develop specialized lightweight products that support the future direction of the automotive industry. The plastic packaging business under the EPP brand emphasizes Innovative Production Leaning to enhance production efficiency, reduce resource consumption per unit, and strengthen cost management capabilities throughout the production value chain.

In addition, the Company collaborates with educational institutions to apply AI technology, particularly Retrieval-Augmented Generation (RAG), in developing internal knowledge management systems. This initiative helps improve operational efficiency, reduce long-term costs, and further enhance the Company’s competitiveness.

Global Market

Aeroflex USA Inc. continues to expand its customer base into project and industrial segments, supported by strong demand in the United States, particularly investments in industrial and infrastructure sectors, enabling the Company to further strengthen growth in its key market.

For the Australian business under Aeroklas Asia Pacific Group (AAPG), the Company continues to focus on business recovery through organizational restructuring, cost control, and operational efficiency enhancement across all levels in order to establish a stronger foundation for future growth.

The Company works closely with its overseas subsidiaries and joint venture partners to strengthen corporate governance, improve operational efficiency, and support sustainable business growth.

To Create Sustainable Growth

The Company has systematically implemented succession planning for senior executives to support leadership transition and ensure business continuity. The Board of Directors has approved the appointment of Dr. Chalieo Vitoorapakorn as Chief Executive Officer of the Company, effective from 1 August 2026 onwards, to continue the Company’s vision, strategies, and management approach in support of stable and sustainable organizational growth.

The Board of Directors places great importance on conducting business under good corporate governance principles, taking into consideration environmental, social, and governance management alongside balancing business growth, risk management, and value creation for all stakeholder groups.

On behalf of the Board of Directors, we would like to express our sincere appreciation to our shareholders, customers, business partners, and all employees for their continued trust and support. The Company remains committed to conducting business with transparency, adhering to good corporate governance principles, continuously enhancing organizational capabilities, and creating economic value together with social and environmental responsibility to achieve stable and sustainable long-term growth.