King Yuan Electronics Company (2449) Q1 2026 earnings summary

Executive summary

• Q1'26 revenue reached NT$10,191.9 million, up 2.3% sequentially and 39.3% year-over-year, excluding the former China subsidiary.

• Net income from continuing operations was NT$2,286.5 million, a 1.7% increase from Q4'25 and a 79% increase year-over-year.

• EPS (diluted) for Q1'26 was NT$1.86, up 1.6% sequentially but down from NT$3.51 in Q1'25 due to a prior year disposal gain.

• Total comprehensive income attributable to owners was NT$4,000.3 million, compared to NT$4,574.8 million in Q1'25.

• Disposal of King Long Technology (Suzhou) Ltd. contributed a one-time gain of NT$4,431.2 million in Q1'25.

Financial highlights

• Gross margin improved to 40% in Q1'26 from 37.7% in Q4'25 and 33% in Q1'25.

• EBITDA margin was 51.6%, up from 50.2% in Q4'25 and 45.3% in Q1'25.

• Operating income rose to NT$2,771.9 million, up 82% year-over-year.

• Depreciation & amortization rose to NT$2,486.5 million, up from NT$2,190.5 million in Q4'25.

• Free cash flow for Q1'26 was negative NT$2,149.4 million, compared to negative NT$5,455.2 million in Q4'25.

Segment performance

• Final test contributed 58.9% of Q1'26 revenue, wafer probe 32.1%, assembly 1.4%, burn-in 7.3%.

• By application, data processing accounted for 33.9%, consumer 31.1%, communication 18.9%, automotive 13.3%, industrial 2.4%.