GlobalWafers (6488) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NT$14.5 billion, down 9.5% quarter-over-quarter and 8.7% year-over-year, with gross margin at 18.4% and net profit margin at 13.6%.

• Cumulative revenue for the first three quarters of 2025 was NT$46.1 billion, nearly flat year-over-year, but gross and net profit margins declined significantly.

• Net profit for Q3 2025 rose 17.1% sequentially, mainly due to mark-to-market gains on Siltronic shares and exchangeable bonds.

• Major milestones included ramping up new 12-inch wafer fabs in Japan, Italy, and the U.S., with strong customer qualifications and government subsidies supporting expansion.

• R&D progress included prototype completion and pilot production of square silicon and 12-inch SiC wafers.

Financial highlights

• Q3 2025 consolidated revenue was NT$14.5B (-9.5% QoQ, -8.7% YoY); gross margin: 18.4%; net profit margin: 13.6%; EPS: NT$4.12.

• Cumulative revenue for the first three quarters was NT$46.1B (-0.4% YoY); net profit: NT$5.1B (-45.5% YoY); EPS: NT$10.68.

• EBITDA margin in Q3 was 30.2%, mainly due to valuation gains from Siltronic shares.

• CapEx for the first three quarters was NT$26.1B, significantly lower than last year as major investments completed in 2024.

• Cash and cash equivalents at September 30, 2025 were NT$15.95B, down from NT$41.73B at September 30, 2024.

Outlook and guidance

• Gross margin will remain under pressure in 2025 due to higher depreciation and pilot costs from new fabs; government subsidies will partially offset this.

• Mass production ramp-up for new fabs in Italy and Missouri expected in Q1/Q2 2026; further subsidy inflows anticipated in H1 2026.

• Wafer demand expected to recover steadily as inventory adjustments near completion and AI applications expand.

• Global GDP growth projected to moderate but remain resilient, supported by AI investment and easing policy rates.

• Management continues to monitor climate-related risks and global minimum tax regulations.