Delta Electronics (Thailand) (DELTA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.245 billion (THB 42,736 million), up 18% year-over-year, with net profit at $161 million (THB 5,488 million), a 34% increase year-over-year, driven by strong demand in digitization, automation, and infrastructure.

• Operational stability was maintained despite global uncertainties, with growth led by power electronics, automation, and AI-related products.

• Main revenue drivers included power electronics (40% of sales), automation, and AI-related products, while the EV segment softened to 23% of total revenue.

• Strategic focus remains on Industry 4.0, EV ecosystems, and data centers, supported by long-term trends and regional expansion.

• Continued emphasis on innovation, resilience, and sustainability to address challenges and future opportunities.

Financial highlights

• Gross profit for Q1 was THB 10,927 million (25.6% margin), up 37.1% year-over-year, with operating profit at THB 5,700 million (13.3% margin), up 53.2% year-over-year.

• Net profit was THB 5,488 million (12.8% margin), up 27.4% year-over-year, with additional FX gains and new tax accruals.

• Cash and cash equivalents rose to THB 17,127 million, and total assets increased to THB 129,893 million at Q1 2025.

• Basic earnings per share for Q1 2025 was THB 0.44, up from THB 0.35 in Q1 2024.

• All key financial ratios, including profitability and cash flow strength, remain robust compared to the past decade.

Outlook and guidance

• Q2 2025 expected to remain robust, driven by accelerated AI and data center investments before mid-year tariff changes.

• Full-year CapEx guidance maintained at $300 million, focused on new facility construction and smart manufacturing automation.

• Growth beyond Q2 is uncertain due to potential changes in US tariffs and global economic headwinds; competitiveness depends on Thailand's tariff alignment.

• Management expects continued growth in core segments, supported by ongoing investments in capacity and R&D.

• The company is subject to new Pillar Two global minimum tax rules, with a top-up tax expense recognized in Q1 2025.