ASE Technology (ASX) Q4 2025 earnings summary

Executive summary

• Consolidated revenue grew 12% year-over-year in 2025, led by strong ATM segment growth, robust LEAP services, and testing business, with net income up 25% to NT$40.7 billion and basic EPS at NT$9.37.

• Gross profit and operating income increased significantly both quarterly and annually, with gross margin improving to 17.7% and operating margin to 7.9%.

• ATM business accounted for 60% of consolidated revenue and 87% of operating profit, reflecting a shift toward higher-margin services.

• Capital expenditures focused on machinery, facilities, and automation, supporting future growth in advanced packaging and testing.

Financial highlights

• Q4 2025 consolidated net revenues were NT$177,915 million, up 10% year-over-year and 6% sequentially; gross margin was 19.5%, up 2.4 points sequentially.

• Q4 net income was NT$14,713 million, up 58% year-over-year; basic EPS was NT$3.37.

• FY 2025 net revenues were NT$645,388 million, up 8% year-over-year; net income attributable to shareholders was NT$40,658 million, up 25%.

• Full-year ATM revenue grew 19%, with packaging up 17% and test up 32%; ATM gross margin reached 23.5%.

• EMS business declined 5% annually, with gross margin at 9.1% and operating margin at 2.9%.

Outlook and guidance

• 2026 revenue uptrend expected, led by AI, automotive, and industrial recovery; ATM leading-edge revenue projected to double to at least US$3.2 billion.

• Q1 2026 revenue expected to decline 5%-7% QoQ due to seasonality; gross margin to decline 50-100 bps QoQ but remain in structural range.

• ATM gross margin for 2026 expected to improve each quarter, reaching the upper end of the structural range in H2.

• CapEx to remain aggressive, with an additional $1.5 billion in machinery planned for 2026, two-thirds for leading-edge services.

• Increased capital expenditure planned for R&D, advanced capacity, and smart factory infrastructure.