Chroma ATE (2360) Q3 2025 earnings summary

Executive summary

• Q3 net sales reached TWD 6.41 billion, up 14% year-over-year, with core testing equipment accounting for 96% of sales.

• Q3 net income was TWD 5.11 billion, up 253% year-over-year, driven by a one-time gain from the sale of residential apartments.

• For the first three quarters, net sales totaled TWD 19.73 billion, a 27% year-over-year increase.

• Net income for the first three quarters was TWD 9.28 billion, up 140% year-over-year.

• EPS for the first three quarters was TWD 21.67, more than double the prior year.

Financial highlights

• Q3 gross margin was 60%, with gross profit at TWD 3.8 billion; gross margin for the first three quarters was 38%, down from 41% year-over-year.

• Q3 operating income was TWD 1.85 billion, up 23% year-over-year but down 16% sequentially; for the first three quarters, operating income was TWD 6.21 billion, up 58%.

• Non-operating items contributed TWD 3.19 billion in Q3, mainly from the apartment sale.

• Free cash flow for the first three quarters was TWD 5.06 billion, up 166% year-over-year.

• Cash and short-term investments as of September 2025 were TWD 7.17 billion, up 42% from December 2024.

Outlook and guidance

• Strong demand for AI server power and new AI power infrastructure expected to drive growth in 2026.

• Semiconductor sector expected to maintain growth, with customer orders and new product cycles supporting another strong year.

• Power business and test instrument segments projected to see multi-year growth, especially with 800V HVDC products rolling out next year.

• Double-digit growth anticipated for both power and semiconductor segments in 2026.

• Management notes substantial risks and uncertainties for forward-looking statements.