TECO Electric & Machinery Co., Ltd. (TWSE: 1504) today (May 28) held its 2026 Annual Shareholders’ Meeting, during which shareholders approved the 2025 financial statements and earnings distribution proposal. The Board of Directors proposed a cash dividend of NT$2 per share, representing a payout ratio of 82.6%, underscoring TECO’s commitment to delivering stable returns to shareholders.
Chairman Morris Li also outlined the Company’s future business strategy, emphasizing aggressive expansion into AI Data Center (AIDC) infrastructure opportunities. By integrating modular prefabrication, power equipment, MEP engineering, and energy management capabilities, TECO aims to fully participate in the global AI infrastructure supply chain while continuing to increase the proportion of revenue generated from North America and Southeast Asia, creating the next wave of growth momentum.
In 2025, TECO’s consolidated revenue reached NT$59.09 billion, representing approximately 7% year-over-year growth. The increase was primarily driven by strong performance in the Smart Energy Business Group, particularly engineering revenue associated with offshore wind farm projects and Taiwan Power Company’s grid resilience initiatives. Consolidated operating profit declined mainly because engineering projects, despite substantial revenue growth, carry relatively lower gross margins. In addition, TECO increased investments in talent recruitment, production line expansion, and R&D to support future growth, especially for AI data center infrastructure and new product development.
Transformation Strategy Delivering Results, New Businesses Contributing Revenue
Over the past two years, TECO has focused on solution integration and service-oriented transformation, advancing its brand repositioning strategy. In 2025, the Company was named among the “Top 25 Taiwan International Brands” for the first time, reflecting the gradual realization of its transformation initiatives.
Leveraging the hair-pin motor technology acquired through EVK Motor Co., TECO launched its oil-cooled hair-pin motor “E-Axle Solution,” successfully entering both European and domestic electric bus supply chains. Through the acquisition of Shenchang Electric, TECO expanded into the transformer business, extending its reach from Taiwan into the North American power market and generating additional revenue streams.
Meanwhile, NCL Energy, acquired last year, secured MEP contracts for hyperscale data centers in Malaysia and Thailand from a U.S.-based CSP operator, with total contract value reaching approximately NT$2.5 billion. TECO also maintained its leadership position in Taiwan’s offshore wind engineering market by securing the 500MW onshore substation project for the Fengmiao Offshore Wind Project.
In HVAC solutions, TECO upgraded its large-scale chiller production capacity to the 1,000-ton level, successfully entering the North American market. Following its strategic share-swap alliance with Hon Hai Technology Group (Foxconn), the two companies have deepened collaboration in factory energy-saving improvement and smart manufacturing, successfully securing equipment orders for Foxconn’s new domestic and overseas plants.
These achievements align with TECO’s corporate vision of becoming “a key driver in realizing global electrification, intelligence, and green energy.”
Continuing Transformation in 2026 Through Strategic Alliances and High-Growth Markets
TECO stated that it will continue executing its transformation strategy in 2026 by accelerating the deployment of global production lines for key equipment products while leveraging mergers, acquisitions, and strategic alliances to rapidly enter high-margin markets.
In May, TECO’s Board approved and completed the signing of an acquisition agreement with Malaysia-based Dynaciate Engineering Hdn. Bhd., accelerating the Company’s expansion into Southeast Asia’s AI data center infrastructure market and the global modular prefabrication sector.
In Taiwan, TECO is utilizing existing factory sites to establish new production lines for transformers, UAV powertrain systems, robotic joint modules, power conversion systems (PCS), and 1,000-ton-class chillers. In Southeast Asia, the Company is building a busway manufacturing facility in Penang, Malaysia, to supply nearby hyperscale data centers with critical power distribution equipment, further strengthening TECO’s technological leadership in power and electrical equipment.
Additionally, TECO’s newly established Energy and System Automation Business Group is actively expanding into ESCO energy services, partnering with major hospitals and government institutions on large-scale comprehensive energy-saving projects.
TECO at 70: Creating a New Era
As TECO celebrates its 70th anniversary this year, Chairman Morris Li introduced the slogan “Move to Lead” to emphasize the Company’s ongoing transformation journey. Centered around the “One TECO” integration strategy, TECO aims to become a global provider of integrated energy and power solutions.
The Company will continue to focus on AI data center infrastructure, modular prefabricated products, smart industrial parks, and energy-saving improvement projects, while deepening its presence in North America and Southeast Asia. TECO expects these initiatives to drive record-high revenue and profitability, maximizing value for all shareholders.
