Himax Technologies (HIMX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $215.1 million, up 3.7% year-over-year but down 9.3% sequentially, at the high end of guidance.

• Gross margin was 30.5%, flat sequentially and up from 29.3% a year ago, driven by favorable product mix and cost optimizations.

• Q1 2025 profit was $20.0 million ($0.114 per diluted ADS), up 59.9% year-over-year and exceeding guidance due to lower operating expenses.

• Automotive IC business was the largest revenue contributor, accounting for over 50% of revenue, with strong year-over-year growth and leadership in TDDI and DDIC.

• Continued investment in ultralow power AI, AR glasses, and co-packaged optics, with robust design win pipelines and mass production ramping up.

Financial highlights

• Q1 operating income was $19.8 million (9.2% of sales), up year-over-year but down sequentially.

• Operating expenses fell 7.0% sequentially and 9.8% year-over-year to $45.7 million.

• Cash and equivalents stood at $281 million as of March 31, 2025.

• Inventory declined for the 10th consecutive quarter, reaching $129.9 million.

• Positive operating cash flow of $56.0 million in Q1.

Outlook and guidance

• Q2 2025 revenue expected to range from a 5.0% decrease to a 3.0% increase sequentially; gross margin projected around 31.0%.

• Q2 profit per diluted ADS estimated at $0.085–$0.115.

• Market visibility for the second half of 2025 remains low due to macroeconomic and tariff uncertainties, with supply chain restructuring underway.

• Continued focus on automotive, TDDI, WiseEye AI, and non-driver product expansion.