ASE Technology (ASX) Q2 2025 earnings summary

Executive summary

• Unconsolidated revenue grew 9% year-over-year in the first half of 2025, with ATM revenues up 18% and testing business up 31%, driven by leading-edge advanced packaging and testing.

• Net revenues reached NT$150,750 million in Q2 2025, up 7.5% year-over-year and 1.8% sequentially.

• CapEx for machinery reached $1.9 billion and facility automation $0.9 billion in H1 2025, reflecting aggressive investment in capacity expansion.

• Management is confident in long-term growth, supported by AI-driven demand and ongoing investments in R&D, capacity, and automation.

• The independent auditor's review concluded the financial statements present fairly, in all material respects, the Group's financial position and performance.

Financial highlights

• Q2 2025 consolidated net revenues were NT$150,750 million, up 7% year-over-year and 2% sequentially; US dollar sales up 7% sequentially and 11% year-over-year.

• Gross profit for Q2 2025 was NT$25,687 million (17.0% margin), up 11% year-over-year and 3% sequentially.

• Operating profit reached NT$10,193 million, with a 6.8% margin, up 0.3 points sequentially and 0.4 points year-over-year.

• Net income for Q2 was NT$7,521 million, down 3% year-over-year.

• EBITDA for the quarter was NT$27,426 million; net debt to equity stood at 0.52 as of June 30, 2025.

Outlook and guidance

• Q3 2025 consolidated revenue expected to grow 12%-14% QoQ in USD terms (6%-8% in TWD); ATM revenue to grow 9%-11% QoQ in USD (3%-5% in TWD).

• Q3 gross margin projected to decrease by 1-1.2 points and operating margin by 0.1-0.3 points QoQ due to currency headwinds.

• Management expects to return to structural margin range in 2026 as ramp-up costs ease and efficiency improves.

• Revenue uptrend expected to continue into 2026 and beyond, driven by AI proliferation and semiconductor demand.

• Ongoing investment in R&D, human capital, advanced capacity, and smart factory infrastructure to support multi-year growth.