Delta Electronics (Thailand) (DELTA) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $1.334 billion (THB 44.49 billion), up 18.2% year-over-year and 7.1% quarter-over-quarter, driven by AI-related solutions and global growth momentum.

• Net profit was $139 million (THB 4.63 billion for Q2, THB 10,117 million for H1), down 22% year-over-year due to FX volatility, non-operating factors, and higher tax and legal expenses.

• Operational stability and resilience maintained despite U.S. tariff changes, global uncertainties, and market volatility, with strong performance in industrial automation, medical, and data center segments.

• Structural demand for AI, digitization, and decarbonization continues to support long-term prospects, with resilient demand in Southeast Asia, India, and Europe.

• Basic earnings per share for H1 2025 was THB 0.81, down from THB 0.87 year-over-year.

Financial highlights

• Q2 2025 revenue: THB 44.5 billion, up 6.5% year-over-year and 4.2% quarter-over-quarter; H1 2025 revenue: THB 87.2 billion, up 9.4% year-over-year.

• Q2 gross profit: THB 11.1 billion (25% margin), with margin down nearly 2% due to strong THB; H1 gross profit: THB 22.04 billion (25.3% margin), up 14.8% year-over-year.

• Q2 operating profit: THB 5.10 billion (11.5% margin), down 12.4% year-over-year; H1 operating profit: THB 11.55 billion (12.4% margin), up from prior periods.

• Q2 net profit: THB 4.63 billion (10.4% margin), down 29.5% year-over-year; H1 net profit: THB 10.12 billion (11.6% margin), down 6.9% year-over-year.

• Decline in profitability attributed to FX losses, higher freight/customs expenses, patent dispute settlements, and top-up tax accruals.

Outlook and guidance

• Double-digit revenue growth targeted for 2025, led by AI and data center segments.

• Q3 and H2 2025 expected to see continued strong demand, especially in data center infrastructure.

• Global growth for 2025 revised up to 3.0%, with Thailand's export growth forecast at 2.3% and EV sales expected to rise 40%.

• Southeast Asia data center market projected to grow at 14% CAGR, reaching $30 billion by 2030.

• The Group is expanding production capacity and R&D through new investments in subsidiaries and infrastructure.