ASE Technology (ASX) Q2 2025 earnings summary

Executive summary

• Unconsolidated revenues grew 9% year-over-year in H1 2025, with ATM revenues up 18% and testing business up 31%, driven by leading-edge advanced packaging and testing, which now exceed 10% of ATM revenues compared to 6% in 2024.

• Machinery CapEx reached US$1.9 billion and building/facility/automation CapEx was US$0.9 billion in H1 2025, mainly for advanced packaging and testing.

• Revenue uptrend is expected to continue into 2026 and beyond, fueled by AI proliferation and semiconductor recovery, with significant investments in R&D, human capital, and smart factory infrastructure.

• Market dynamics are shaped by global AI-driven data center expansion, upgrade cycles, and anticipated multiple waves of AI edge applications over the next decade.

Financial highlights

• Q2 2025 consolidated net revenues were NT$150,750 million, up 7–7.5% year-over-year and 2% sequentially; gross profit was NT$25,687 million (17.0% margin), and operating profit was NT$10,193 million (6.8% margin).

• Net income attributable to shareholders was NT$7,521 million, down 3% year-over-year; basic EPS was NT$1.74.

• Excluding PPA expenses, Q2 2025 net income was NT$8,288 million and basic EPS was NT$1.91.

• ATM Q2 revenues were NT$92,565 million, up 19% year-over-year and 7% sequentially; gross margin was 21.9%.

• EMS Q2 revenues were NT$58,770 million, down 7% year-over-year and 6% sequentially; gross margin improved to 9.4%.

Outlook and guidance

• Q3 2025 consolidated revenue expected to grow 12–14% quarter-over-quarter in USD (6–8% in NT); gross margin to decrease by 1–1.2 points, operating margin by 0.1–0.3 points.

• ATM Q3 revenue projected to grow 9–11% quarter-over-quarter in USD (3–5% in NT); gross margin to decrease by 0.9–1.1 points.

• EMS Q3 revenue expected to grow 18–20% quarter-over-quarter in USD (12–14% in NT); operating margin to increase by 0.3–0.5 points.

• NT dollar appreciation since May is expected to have a 5% negative impact on ATM Q3 gross margin; excluding currency impact, ATM gross margin would be around 26%.

• Ongoing investment in R&D, human capital, advanced capacity, and smart factory infrastructure to support multi-year growth.