Advantech (2395) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$17.351 billion, up 25% year-on-year and 6% quarter-on-quarter, near the high end of guidance.

• Net income was NT$2.734 billion, a 37% year-on-year increase, with EPS at NT$3.17.

• All major business sectors and regions reported double-digit year-on-year growth, with Intelligent Service up 41% and Europe up 25%.

• North America, Europe, China, and Emerging Markets grew 23%, 25%, 11%, and 18% year-on-year, respectively, while North Asia declined 5%.

• Profitability improved, with gross margin at 40.5% and operating profit margin at 16.9%.

Financial highlights

• Gross profit was NT$7.028 billion (40.5% margin), up 27% year-on-year.

• Operating profit reached NT$2.924 billion (16.9% margin), up 53% year-on-year.

• EPS for Q1 2025 was NT$3.17; diluted EPS was NT$3.14.

• Effective tax rate for Q1 was 17%.

• Q1 revenue in USD was $528 million, up 19% year-on-year.

Outlook and guidance

• Full-year 2025 growth is expected to be above 15% in the worst case and above 20% in the best case, though this is not official guidance.

• Management expects continued growth in all business units, focusing on digital transformation, IoT, and AI-driven solutions, but notes ongoing uncertainties including tariffs and geopolitical risks.