Yageo (2327) investor relations material

Executive summary

• Net sales reached NT$38,166 million, up 6.1% sequentially and 22.7% year-over-year, driven by strong A.I. application demand and growth in both standard and specialty products.

• Gross margin improved to 38.1%, up 0.8 percentage points quarter-over-quarter and 2.5 points year-over-year, reflecting favorable product mix and cost improvements.

• Operating income rose 10.1% sequentially and 48.7% year-over-year; net income increased 18.5% quarter-over-quarter and 44.7% year-over-year.

• EPS grew to NT$3.90, up 18.5% sequentially and 44.7% year-over-year.

Financial highlights

• EBITDA margin reached 31.7%, up 1.1 percentage points quarter-over-quarter and 3.7 points year-over-year.

• Free cash flow increased to NT$8,742 million, reflecting stable cash generation and inventory optimization.

• Net financial debt as a percentage of LTM EBITDA improved to 33% from 59% in the previous quarter.

• ROE (annualized) rose to 15.9% from 14.1% in the previous quarter and 13.6% a year ago.

Outlook and guidance

• Continued positive momentum expected from A.I.-related applications and robust demand across product categories.

• Focus remains on balancing financial flexibility and funding future growth opportunities.