Pegatron (4938) Q2 2025 earnings summary

Executive summary

• Net revenue for 2Q2025 reached NT$267.3Bn, up 5.4% year-over-year but down 1.9% sequentially from 1Q2025.

• Net income for 2Q2025 was NT$1.08Bn, a sharp decline of 82.6% year-over-year and 79% quarter-over-quarter.

• EPS for 2Q2025 dropped to NT$0.11, down 94.8% year-over-year and 93.2% sequentially.

• For the six months ended June 30, 2025, revenue was NT$539.8Bn, up 7.1% year-over-year, with gross profit margin at 3.4%.

• Net income attributable to owners for the six months was NT$4.59Bn, down from NT$8.84Bn year-over-year; basic EPS was NT$1.72 versus NT$3.32.

Financial highlights

• Gross profit for 2Q2025 was NT$8.38Bn, down 27.8% year-over-year and 17.6% quarter-over-quarter.

• Operating income for 2Q2025 was NT$1.47Bn, down 49.9% year-over-year and 40.8% sequentially.

• Net non-operating income fell 96% year-over-year and 93.8% sequentially, mainly due to FX losses and lower other income.

• Operating expenses for the six months were NT$14.6Bn, down from NT$16.2Bn year-over-year.

• Net cash from operating activities for the six months was NT$3.27Bn, a sharp decline from NT$25.4Bn in the prior year.

Segment performance

• Revenue from the Computing and Communication segments saw early pull-ins due to tariffs, but overall revenue declined slightly due to a less favorable product mix.

• Consumer segment revenue remained flat year-over-year.

• DMS segment contributed NT$493.6Bn in revenue for the six months, while Strategic Investment Group contributed NT$46.1Bn.

• Segment profit for DMS was NT$5.91Bn and for Strategic Investment Group NT$4.94Bn, with eliminations of NT$2.45Bn.

• Others segment contributed to the year-over-year revenue increase in 2Q2025.