Vanguard International Semiconductor (5347) Q3 2025 earnings summary

Executive summary

• Net revenue for 3Q25 reached NT$12,349 million, up 5.6% quarter-over-quarter and 4.6% year-over-year.

• Net income attributable to shareholders was NT$1,703 million, down 16.6% sequentially and 20.0% year-over-year.

• For the nine months ended September 30, 2025, net revenue was NT$35,997,518 thousand, up 11% year-over-year; net income reached NT$6,104,060 thousand, a 17% margin.

• Diluted EPS for 3Q25 was NT$0.91; for the nine months, basic EPS was NT$3.35 and diluted EPS was NT$3.30.

• The independent auditor's review found the financial statements present fairly, in all material respects.

Financial highlights

• Gross profit margin for 3Q25 was 26.8%, within guidance; for the nine months, gross margin was 28%.

• Operating income for 3Q25 was NT$1,832 million, a 3.4% decrease from 2Q25; for the nine months, operating income was NT$5,966,702 thousand (17% margin).

• Cash and financial instruments totaled NT$50,738 million at quarter end; cash and cash equivalents at period end were NT$47,430,675 thousand.

• Total assets as of September 30, 2025, were NT$170,307 million.

• Net working capital was NT$39,130 million.

Outlook and guidance

• 4Q25 wafer shipment expected to decrease by 6% to 8% quarter-over-quarter.

• Blended ASP projected to increase by 4% to 6% quarter-over-quarter.

• Gross profit margin guidance for 4Q25 is 26.5% to 28.5%.

• LTA income (non-wafer revenue) to contribute an extra ~1% of revenue in 4Q25.

• Expansion in Singapore with a new 12-inch wafer fab through joint venture VSMC, supported by a NT$66 billion syndicated loan.