ASE Technology (ASX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenues reached NT$148,153 million, up 12% year-over-year but down 9% sequentially.

• Net income attributable to shareholders was NT$7,554 million, up 33% year-over-year but down 19% sequentially.

• Basic EPS was NT$1.75, up 34% year-over-year and down 19% sequentially.

• LEAP advanced packaging services accounted for 10% of ATM revenues in Q1, up from 6% for full year 2024.

• Completed purchase price allocation for Hirschmann acquisition, with retrospective adjustment to 1Q24 results.

Financial highlights

• Gross profit for Q1 2025 was NT$24,893 million, with gross margin at 16.8%, up year-over-year and sequentially.

• Operating income was NT$9,671 million, up 29% year-over-year and down 14% sequentially.

• EBITDA for the quarter was NT$27,628 million.

• Net non-operating gain of NT$139 million, mainly from FX hedging and associate profits.

• Net cash generated from operating activities was NT$19,973 million; net cash used in investing activities was NT$37,561 million.

Outlook and guidance

• Q2 ATM revenues expected to grow 9%-11% quarter over quarter; gross margin to increase by 140-180 bps.

• Q2 EMS revenues projected to decline 10% year over year; operating margin to decline by 100 bps.

• Full-year CapEx guidance remains unchanged at $2.5-$2.6 billion.

• Gross margin expected to return to structural range in the second half, barring major surprises.