GlobalWafers (6488) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$15.6 billion, up 3.4% year-over-year, marking the third highest Q1 in company history.

• Net profit for Q1 2025 was NT$1.46 billion, down 58.8% year-over-year, with EPS at NT$3.05.

• Profitability declined due to increased depreciation from global expansion and a fair value loss on Siltronic AG shares.

• Maintained strong corporate governance, ranking in the top 5% of the Taipei Exchange for the seventh consecutive year.

• Cash and cash equivalents decreased to NT$28.85 billion as of March 31, 2025, reflecting significant capital expenditures and financing activities.

Financial highlights

• Gross margin for Q1 2025 was 26.4%, down from 34.3% in Q1 2024; operating margin was 16.6%, and net profit margin 9.3%.

• Q1 2025 net profit was NT$1,456 million, down 58.8% year-over-year but up 206.5% sequentially.

• CapEx totaled NT$11.6 billion; depreciation was NT$2.3 billion.

• EBITDA for Q1 2025 was NT$4,033 million, down 31.4% year-over-year but up 61.1% sequentially.

• Major capital expenditures ongoing, with NT$64.78 billion in construction-in-progress as of March 31, 2025.

Outlook and guidance

• Q2 2025 revenue expected to exceed Q1 if NT dollar remains stable.

• Gradual stabilization expected in the semiconductor market, with early signs of recovery and a potential rebound in wafer demand.

• Utilization rate in Q2 expected to be slightly better than Q1, but gross margin likely to remain flat due to rising depreciation.

• Peak depreciation forecasted for Q4 2025, then expected to stay flat for several years before declining.

• The company is evaluating the impact of new IFRS standards, including IFRS 18, which will affect income statement presentation from 2027.