Aerospace Industrial Development (2634) Q4 2025 earnings summary

Executive summary

• 2025 earnings softened due to AJT delay penalties and currency headwinds, but revenue recovered in the second half, driven by defense and commercial growth.

• Nearly NT$25 billion in new orders were secured in 2025, split between military, commercial, and technology services.

• The company is expanding in drones, composites, and digital transformation, aiming for a strategic global supply chain position.

• Revenue for Q1 2026 was NT$7,587 million, up from NT$7,539 million in Q1 2025, with net profit rising to NT$261 million from NT$238 million year-over-year.

• Gross profit margin improved to 8% from 6% year-over-year, driven by higher sales in Aero/Industrial Engine and Industrial Technology Services.

Financial highlights

• 2025 revenue was NT$35.45 billion, down from NT$39.34 billion in 2024.

• Net profit for 2025 was NT$0.73 billion, with EPS at NT$0.778, compared to NT$2.30 in 2024.

• Gross margin declined to 7% in 2025 from 10% in 2024.

• Operating profit for Q1 2026 was NT$272 million, up from NT$198 million year-over-year.

• Earnings per share increased to NT$0.28 (basic and diluted) from NT$0.25 year-over-year.

Outlook and guidance

• Focus on completing AJT production, expanding military aircraft upgrades, and developing UAV/counter-UAV markets.

• Commercial business aims for incremental orders, customer base expansion, and high-value forging/casting capabilities.

• Technology services to capture energy storage and low-carbon opportunities.

• The company continues to invest in equipment upgrades and international cooperation projects, maintaining sufficient capital for expansion and operations over the next 12 months.

• Management is assessing the impact of new IFRS standards, including IFRS 18, on future financial reporting.