Winbond Electronics (2344) Q3 2025 earnings summary

Executive summary

• Returned to profitability in 3Q25, driven by strong memory business performance and improved gross margins.

• CMS business achieved record revenue, while Flash business maintained global leadership in NOR Flash.

• Consolidated financial statements for the nine months ended September 30, 2025, were reviewed by independent auditors, with no material misstatements identified.

• The group operates in customized memory solutions, flash memory, and logic IC segments, with all segments contributing to revenue.

• Expansion projects and new product launches are underway, with significant CAPEX planned for 2026–2027.

Financial highlights

• Net sales reached NT$21,771M in 3Q25, up 3.6% QoQ and 2.1% YoY.

• Operating revenue for the nine months ended September 30, 2025, was NT$62,781M, nearly flat YoY.

• Net income was NT$2,701M in 3Q25, reversing a loss in 2Q25; nine-month net income was NT$1,387.8M, down YoY.

• EPS for 3Q25 was NT$0.65; YTD EPS at NT$0.12; nine-month EPS was NT$0.29.

• Gross margin for 3Q25 improved to 46.7%; nine-month gross margin was 32%.

Outlook and guidance

• NOR Flash prices expected to rise due to higher material costs and demand recovery.

• SLC NAND supply remains tight, supporting sustained price increases.

• DDR4/DDR3 contract prices projected to rise into 2026 due to supply gaps.

• 16nm CMS process to enter mass production in 2026; CUBE project to contribute in 2027.

• The group is monitoring the impact of Pillar Two income tax legislation and new IFRS standards.