AirTAC International Group (1590) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 saw strong results with consolidated revenue of RMB 2.064 billion, up 21% year-on-year, and gross profit of RMB 980 million, up 25% year-on-year.

• Net profit for Q4 2025 was RMB 532 million, a 33% increase year-on-year, with EPS at NT$11.64.

• Full-year 2025 revenue reached RMB 7.931 billion, up 15% year-on-year, and net profit was RMB 1.941 billion, up 13% year-on-year.

• Management expects over 10% revenue growth and a 31% OP margin in 2026, with continued optimism for market demand.

Financial highlights

• Q4 2025 gross margin was 47.5%, operating margin 31.3%, and net margin 25.8%.

• Full-year 2025 gross margin was 46%, operating margin 30%, and net margin 24.5%.

• Net non-operating income in Q4 2025 included RMB 29 million exchange gain, RMB 9 million from equipment disposal, RMB 7 million government subsidy, and RMB 5 million interest income.

• Inventory and accounts receivable turnover days at end of 2025 were both 124 days.

Outlook and guidance

• 2026 revenue growth is guided at over 10%, with OP margin expected at 31%.

• CapEx for 2026 projected at NTD 2-3 billion; dividend payout ratio to rise to 65%.

• Management remains optimistic for 2026, expecting positive growth across electronics, battery, auto, and traditional sectors.

• Linear guide business expected to recover in 2026, with utilization rate targeted at 50% in the second half.