ASE Technology (ASX) investor relations material

Executive summary

• Consolidated revenue grew 24% year-over-year in H1 2026, with ATM revenues up 35% year-over-year, driven by strong demand in advanced packaging and testing.

• Q2 2026 consolidated net revenues reached NT$191,064 million, up 10% sequentially and 26.7% year-over-year.

• Net income attributable to shareholders rose 180% year-over-year in Q2 2026 to NT$21,068 million, with basic EPS up 176% year-over-year to NT$4.80.

• LEAP services revenue is tracking ahead of prior guidance, with plans to double LEAP revenue in 2027.

• Significant investments in R&D, automation, and capacity to support multi-year AI-driven growth.

Financial highlights

• Q2 2026 gross profit was NT$40,150 million, gross margin 21.0%, up 1 percentage point sequentially and 4 percentage points year-over-year.

• Operating profit was NT$21,134 million, up 21% quarter-over-quarter and 107% year-over-year; operating margin 11.1%.

• EBITDA for Q2 2026 was NT$45,779 million, up from NT$38,147 million in Q1 2026.

• ATM business Q2 revenue was NT$126,148 million, up 12% sequentially and 36% year-over-year; gross margin 27.3%.

• EMS revenues grew 6% sequentially and 12% annually to NT$65,789 million; operating margin 2.4%, gross margin 8.9%.

Outlook and guidance

• Q3 2026 consolidated revenue expected to grow 21%-22% quarter-over-quarter; gross margin 20.5%-21.5%; operating margin 11.5%-12.5%.

• ATM Q3 revenue projected to grow 11%-13% quarter-over-quarter; gross margin 28%-29%.

• EMS Q3 revenue expected to grow ~40% quarter-over-quarter, mainly due to component price hikes.

• Full-year ATM revenue expected to grow 35%; LEAP revenue to double in 2027.

• CapEx raised by $2 billion for 2026, with continued heavy investment into 2027.