Winbond Electronics (2344) H2 2025 earnings summary

Executive summary

• Net sales for 4Q25 reached NT$26,625M, up 22.3% QoQ and 42.4% YoY, with net income of NT$3,095M, a significant turnaround from a loss in 4Q24.

• Full-year 2025 net sales grew 9.6% YoY to NT$89,406M, with net income at NT$3,177M and EPS of NT$0.88.

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

• Gross margin improved to 35% from 29% year-over-year, driven by higher sales and improved product mix.

• Flash Memory products contributed significantly to both revenue and gross profit, identified as a key audit matter.

Financial highlights

• Operating revenue: NT$89.4 billion in 2025, up from NT$81.6 billion in 2024.

• Net income: NT$3.18 billion in 2025, up from NT$710 million in 2024.

• Basic and diluted EPS: NT$0.88 in 2025, up from NT$0.14 in 2024.

• EBITDA for 4Q25 was NT$7,457M; free cash flow for 2025 was NT$4,687M, reversing a negative FCF in 2024.

• Total assets: NT$192.2 billion at year-end 2025, up from NT$177.8 billion in 2024.

Outlook and guidance

• NOR Flash and SLC NAND markets expected to see continued price uptrends in 2026 due to tight supply and strong demand.

• CMS contract pricing and order visibility expected to improve in 2026, with new 16nm CMS products driving future revenue.

• Flash and CMS capacity expansions are underway, with phased ramp-up from 2H26.

• The company is assessing the impact of new IFRS standards effective from 2026 and 2027, including IFRS 18 on financial statement presentation.

• No material tax exposure related to Pillar Two income tax legislation as of December 31, 2025.