Powertech Technology (6239) Q2 2025 earnings summary

Executive summary

• 2Q25 revenue reached NT$18.1B, up 16.6% QoQ but down 7.8% YoY; 1H25 revenue totaled NT$33.6B, down 11.5% YoY.

• Net income for 2Q25 was NT$1.28B, down 19.2% QoQ and 44.9% YoY; 1H25 net income was NT$2.85B, down 35% YoY.

• Gross margin for 2Q25 was 15.9%, down 1.1ppts QoQ and 3.1ppts YoY; 1H25 gross margin was 16%, down from 18% YoY.

• EPS for 2Q25 was NT$1.30, down 17.7% QoQ and 46.9% YoY; 1H25 EPS was NT$2.88, down from NT$4.77 YoY.

• Capital expenditures in 1H25 were NT$9.34B, supporting growth in AI, HPC, and ADAS applications.

Financial highlights

• 2Q25 operating income was NT$1.84B, up 18.7% QoQ but down 28.7% YoY; 1H25 operating income was NT$3.38B, down 27% YoY.

• Non-operating income swung negative to -NT$268M in 2Q25 from +NT$256M in 1Q25.

• Cash and cash equivalents at June 30, 2025, were NT$20.44B, down from NT$22.24B at year-end 2024.

• Net cash from operating activities was NT$9.89B, up from NT$8.83B YoY; net cash used in investing activities was NT$8.84B, up from NT$2.91B YoY.

• Net worth per share as of June 30, 2025 was NT$69.23.

Outlook and guidance

• 3Q25 outlook is solid due to advance orders amid global trade and tariff adjustments, but 2H25 market sentiment remains cautious.

• DRAM demand in 3Q25 expected to rise from inventory replenishment and new device launches; high-performance memory for AI to drive modest growth.

• NAND packaging/testing orders to grow in 3Q25, driven by smartphone/PC replacement and cloud SSD demand.

• Logic business to benefit from power module products and OOC customer order transfers in 2H25; advanced packaging (2.5D/3DIC) progressing as planned.

• Management is monitoring inflation, interest rates, and US reciprocal tariffs for future impact.