Aerospace Industrial Development (2634) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was NT$15.68 billion, down 19% year-over-year, with profit growth slowing due to penalties from delayed AJT deliveries and a sharp USD exchange rate decline; defense is accelerating schedules while civil aviation benefits from global travel recovery.

• Net profit for H1 2025 dropped to NT$10 million, with a Q2 net loss of NT$224.5 million, reflecting lower sales and significant foreign exchange losses.

• Nearly NT$20 billion in new orders were received so far this year, spanning defense, civil, and technology services businesses.

• Recognized in the 2025 Taiwan FINI 100 for strong financial performance, governance, and international visibility.

• Total comprehensive income for the six months was negative NT$224.2 million, reflecting operating challenges and adverse currency movements.

Financial highlights

• H1 2025 sales reached NT$15.68 billion, with gross profit at NT$1.11 billion (7%), down from 10% year-over-year.

• Operating profit for H1 was NT$510 million, a 63% decrease from the prior year, while net profit was NT$10 million.

• EPS for H1 2025 was NT$0.01, compared to NT$1.46 in the prior year.

• Cash and cash equivalents at June 30, 2025 were NT$2,782 million, up from NT$2,322 million a year earlier.

• Significant non-operating losses were recorded, mainly due to net foreign exchange losses of NT$503.7 million for the six months.

Outlook and guidance

• Plans to expand business jet fuselage, next-gen passenger aircraft, unmanned vehicles, and energy systems.

• Focus on digital transformation, supply chain integration, and sustainable development.

• Management continues to assess the impact of new and upcoming IFRS standards, with no material changes to accounting policies expected.

• The company is focused on maintaining adequate capital for operations, expansion, and participation in international projects.