WIN Semiconductors (3105) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated revenue reached TWD 4.794 billion, up 7% quarter-on-quarter and 29% year-on-year, with gross margin at 31.8% due to higher-margin product shipments and improved mix.

• Full-year 2025 revenue was TWD 16.638 billion, down 4.7% year-on-year, with EPS at TWD 4.00 and net income of TWD 1.694 billion, more than doubling year-on-year.

• Product mix shifted toward higher-margin segments like infrastructure, aerospace, and AI data centers, reducing reliance on mature smartphone markets.

• Maintained positive operating cash flow and stable operating expenses, with about 50% of OPEX allocated to R&D over the past ten quarters.

• Consolidated financial statements for 2025 and 2024 were audited with an unmodified opinion, confirming fair presentation in accordance with IFRS and local regulations.

Financial highlights

• Q4 2025 gross margin improved to 31.8%, up 4.9 percentage points sequentially, with net income attributable to the parent company at TWD 1.029 billion and EPS at TWD 2.43.

• Full-year 2025 gross margin was 24.2%, up 1 percentage point year-on-year; net income was TWD 1.694 billion; EPS was TWD 4.00.

• Q4 operating margin rose to 13.9%, and net margin reached 20.0%; ROE for 2025 was 4.3%.

• Total assets at year-end 2025 were TWD 60.73 billion, with a debt ratio of 30.86%.

• Operating cash flow was TWD 4.95 billion in 2025.

Outlook and guidance

• Q1 2026 revenue expected to decline by high single digits quarter-on-quarter due to seasonality and annual maintenance; gross margin projected to be in the mid-twenties.

• Cellular PA segment expected to grow in Q1, while infrastructure, Wi-Fi, and optical segments will enter a low season.

• Depreciation expense in 2026 expected to decrease by 10%-20% year-on-year; CapEx for 2026 projected at around TWD 2 billion.

• Adoption of new IFRS standards in 2026 and 2028 is not expected to have significant impact.

• The group is monitoring climate-related risks and implementing carbon reduction plans to qualify for preferential carbon fee rates.