ENNOSTAR (3714) investor relations material

Executive summary

• Q4 2025 revenue declined 7.1% sequentially and 5.4% year-over-year to TWD 5.208 billion, reflecting seasonality, less favorable product mix, and softer consumer demand.

• Full-year 2025 revenue was TWD 22.18 billion, down 9% from 2024, with a net loss of TWD 2.715 billion and loss per share of TWD 3.69.

• Net loss attributable to parent company widened to TWD 782 million in Q4 2025.

• Intense competition in the LED industry and forex losses pressured profitability; value-added transformation and cost control initiatives are underway.

• Revenue from premium applications (professional lighting, sensing, automotive) accounted for 25% in Q4 2025, up from 20% in Q4 2024.

Financial highlights

• Q4 operating margin was -25.2%, net profit margin -15%, and loss per share TWD 1.07.

• Gross margin for 2025 was 5.7%; Q4 2025 gross margin was negative 2.6%.

• EBITDA margin for Q4 2025 was -7.2%.

• Cash flow from operations remained positive in Q4 and totaled TWD 2.1 billion for the year.

• Ended Q4 with TWD 30.4 billion in cash and net cash of TWD 12.8 billion after borrowings.

Outlook and guidance

• 2026 focus is on improving profitability through product mix optimization, cost reduction, and asset revitalization.

• Q1 2026: Sensing revenue expected down low single digit QoQ, flat YoY; specialty lighting to grow double digits QoQ and single digit YoY; display revenue slightly down QoQ, flat YoY.

• Micro-LED revenue projected to grow at a higher rate in 2026, becoming a key driver.

• Automotive revenue in Q1 expected to be slightly down; chip business to recover from Q2.

• TV backlight chips to grow double digits in Q1; packaging and modules to rebound.

• IT backlight chips to grow double digits in Q1; overall segment to see low single-digit growth.