AUO (2409) investor relations material

Executive summary

• Q1 2026 revenue was TWD 69.031 billion, down 1.6% QoQ and 4.3% YoY, with a 2% forex tailwind from NTD depreciation.

• Gross margin improved to 11.9% from 10.7% in Q4 2025; OP margin at -0.9%, narrowing OP loss to TWD 600-636 million.

• Net loss attributable to owners was TWD 1.14 billion, reversing a profit in Q4 2025; basic EPS was negative TWD 0.15.

• EBITDA reached TWD 6.6 billion (9.6% margin).

• Transformation continues toward value-added solutions, with Micro-LED, AI, and automotive tech as key growth drivers.

Financial highlights

• Gross profit for Q1 2026 was TWD 8.183 billion, up 8.8% QoQ but down YoY; operating expenses decreased 6.4% QoQ.

• Display revenue down 3% QoQ, Mobility Solutions down 3% QoQ, Vertical Solutions up 2% QoQ.

• Cash and cash equivalents at quarter-end were TWD 53.064 billion, down 4.6% QoQ and 21.3% YoY; borrowings at TWD 104.9 billion.

• Net cash from operations: TWD 2.9 billion; CapEx: TWD 2.8 billion; depreciation: TWD 7.3 billion.

• Net cash used in financing activities was TWD 4.06 billion, mainly for debt repayment.

Outlook and guidance

• Q2 Mobility Solutions revenue expected to grow low to mid-single digits QoQ.

• Q2 Vertical Solutions revenue to grow high single digits QoQ, driven by new projects and green solutions.

• Q2 Display revenue expected to decrease slightly due to softer consumer electronics demand.

• Full-year 2026 depreciation expected at TWD 28 billion; CapEx capped at TWD 20 billion.

• Cautious view for H2 2026 due to macro uncertainties, energy prices, and inflation.