GlobalWafers (6488) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year as expansion shifted from construction to execution, with new capacities ramping up and operational focus on efficiency and yield improvement.

• AI and high-performance computing drove structural demand, supporting both advanced and mature node wafer markets.

• Revenue for 2025 was NT$60.6 billion, down 3.2% year-over-year, with Q4 revenue at NT$14.5 billion, nearly flat sequentially.

• Net profit for 2025 was NT$7.3 billion, a 25.7% decrease year-over-year; EPS was NT$15.29, down from NT$21.06.

• Strategic investments in global capacity and renewable energy positioned the group for long-term growth.

Financial highlights

• GlobalWafers 2025 revenue: NTD 60.6B (down 3.2% YoY); USD revenue flat at $1.947B.

• Gross margin: 24.1% for 2025, down from 31.6% in 2024; Q4 rebounded to 25.7% due to improved efficiency and non-recurring items.

• Operating margin: 14.3% for 2025, down from 22.5% in 2024; Q4 at 16.4%. Net margin: 12.1% for 2025; Q4 at 15.2%.

• EPS: NTD 15.29 for 2025; Q4 EPS NTD 4.6. Dividend payout: NTD 7.7 per share (50.4% payout ratio).

• CapEx decreased significantly to NTD 31.9B in 2025 from NTD 48.3B in 2024.

Outlook and guidance

• 2026 revenue expected to be flat or slightly higher YoY, with AI and diversified applications as key drivers.

• Gross margin expected to gradually improve as utilization rises and product mix shifts to higher value.

• AI and advanced node demand are expected to drive moderate ASP improvement and higher utilization in 2026.

• Inventory normalization and gradual recovery in mature nodes are anticipated, with stable orders and shipments.

• CapEx to decline further in 2026 and 2027, unless new expansions are triggered by customer commitment and government support.