Faraday Technology (3035) Q1 2025 earnings summary

Executive summary

• Revenue surged 151.9% sequentially and 188.4% year-over-year to NT$7,438 million in 1Q25, driven by strong mass production and advanced packaging sales.

• Net income rose 41.1% sequentially and 26.4% year-over-year to NT$352 million, with EPS at NT$1.33.

• First half 2025 revenue is projected to surpass full-year 2024 revenue.

• Launched "Fabless OSAT Service" and proprietary 3D packaging technologies to address demand in heterogeneous integration.

• Record number of new projects in advanced process and packaging in 1Q25.

Financial highlights

• Gross profit increased 19.2% sequentially and 25.7% year-over-year to NT$1,508 million.

• Operating income nearly doubled sequentially to NT$369 million, up 16.5% year-over-year.

• Gross margin declined to 20.3% from 42.8% in 4Q24 and 46.5% in 1Q24.

• Operating margin was 5.0% in 1Q25, down from 6.4% in 4Q24 and 12.3% in 1Q24.

• Net income margin dropped to 4.7% from 8.4% in 4Q24 and 10.8% in 1Q24.

Segment performance

• Mass production revenue soared 201.3% sequentially and 305.6% year-over-year to NT$6,581 million, accounting for 88.5% of total revenue.

• IP revenue decreased 8.3% sequentially but grew 22.6% year-over-year to NT$403 million, representing 5.4% of total revenue.

• NRE revenue rose 38.0% sequentially but fell 27.7% year-over-year to NT$454 million, with a 6.1% revenue share.

• HPC & AI applications drove 78.1% of mass production revenue in 1Q25.

• NRE revenue expected to rise further in 2Q25, potentially setting a new single-quarter record.