Quanta Computer (2382) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking Q1 2025 results with revenue at NT$485.7 billion, up 87.6% year-over-year, and net income at NT$19.5 billion, a 61.6% increase, driven by strong AI server and general compute server demand.

• Basic EPS for Q1 2025 was NT$5.06, compared to NT$3.13 in Q1 2024.

• Sales momentum was supported by improved supply conditions for AI servers and customer demand pull-in due to U.S. tariff uncertainties.

• Gross margin for Q1 2025 was 7.92%, slightly down from 8.48% in Q4 FY2024 but up from 4.52% in Q1 FY2024.

• Total assets as of March 31, 2025, stood at TWD 1,043.9 billion, with equity attributable to owners at TWD 192.9 billion.

Financial highlights

• Revenue reached NT$486 billion, up 16.4% sequentially and 87.6% year-over-year.

• Gross profit was NT$38.5 billion, up 23.8% quarter-on-quarter and 75.3% year-over-year.

• Operating profit hit NT$24.6 billion, up 62.3% year-over-year; operating margin at 5.07%.

• Net income after tax was NT$19.5 billion, up 22.8% quarter-on-quarter and 61.6% year-over-year; EPS at NT$5.06.

• Cash and short-term investments as of March 31, 2025, totaled NT$214.6 billion.

Outlook and guidance

• High single-digit sequential revenue growth expected in Q2, with upside potential, but demand is front-loaded and visibility beyond 90 days is limited.

• AI server revenue expected to grow triple digits year-over-year, general server slightly up, and automotive up single digits.

• Margin dilution anticipated due to higher ASP AI server ramp and evolving product mix.

• Cautiously optimistic for the rest of the year, with profit growth expected to outpace costs.

• Management expects adoption of new IFRS standards in 2026 and 2027 to have no significant impact.