Hua Hong Semiconductor (1347) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached a record $659.9 million, up 22.4% year-over-year and 3.9% sequentially, with gross margin at 13.0%, both meeting guidance and expectations, driven by higher wafer shipments and improved average selling price.

• Net profit attributable to shareholders was $17.5 million in Q4 2025, reversing a loss in Q4 2024 but down from Q3 2025.

• Full-year 2025 revenue was $2,402.1 million, up 19.9% year-over-year, with gross margin at 11.8% and net profit attributable to shareholders of $54.9 million.

• Maintained high capacity utilization at 106.1% for the year, driven by AI demand, consumer recovery, and specialty technology platforms.

• Strategic capacity expansion advanced, with Fab Nine phase one completed ahead of schedule and Fab Five acquisition progressing.

Financial highlights

• Q4 2025 gross profit was $85.5 million, up 39.1% year-over-year; operating expenses rose 17.7% to $130.2 million, mainly due to labor and depreciation.

• Other income net was $34.1 million, compared to a $40.5 million loss in Q4 2024, mainly from FX gains and government subsidies.

• Q4 net loss narrowed 80.6% year-over-year to $18.7 million; net profit margin improved to -2.8% from -17.9% in Q4 2024.

• Basic EPS for Q4 was $0.010; full-year EPS $0.032; annualized ROE for Q4 was 1.2%, full-year ROE 0.9%.

• Full-year operating expenses were $425.6 million, up 17.9% year-over-year, mainly from increased R&D.

Outlook and guidance

• Q1 2026 revenue expected at $650–$660 million, with gross margin projected at 13–15%.

• Management remains confident in capturing growth opportunities amid global semiconductor changes.