ChipMOS TECHNOLOGIES (8150) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$6,144 million, up 7.1% sequentially and 1.2% year-over-year, driven by strong memory product demand and improved utilization rates.

• Gross margin improved to 12.4%, up 5.8 percentage points quarter-over-quarter, reflecting operational leverage and pricing power.

• Net profit attributable to the company was NT$352.2 million, reversing a loss in Q2, with EPS at NT$0.50 per share.

• For the nine months ended September 30, 2025, revenue was NT$17,411.8 million, nearly flat year-over-year, with a net loss of NT$4.6 million due to lower gross margin and higher costs.

• Significant treasury share buybacks and the sale of the Unimos Shanghai stake were completed to support share price and employee incentives.

Financial highlights

• Q3 2025 operating profit was NT$370 million, up significantly from Q2 but down year-over-year; operating margin was 6.0%.

• Net non-operating income swung positive to NT$69 million, mainly due to FX gains.

• Free cash flow for the first nine months was NT$1,521 million, a turnaround from negative free cash flow in the prior year.

• CapEx for Q3 was NT$797 million, focused on testing, LCD driver, assembly, and bumping.

• Cash and cash equivalents as of September 30, 2025, were NT$12,977 million.

Outlook and guidance

• Memory market momentum is expected to remain solid in Q4, led by DRAM and enterprise NAND demand from AI and cloud data centers.

• DRAM demand is rebounding, while flash momentum may slow due to customer inventory adjustments.

• DDIC demand for TV and smartphones is expected to be soft, but automotive panel and OLED demand remain stable.

• Management is cautious on end consumer demand due to global economic uncertainties.

• Mixed-signal and AI-related applications are targeted for future growth, with ongoing capital investments and product portfolio expansion.