Compal Electronics (2324) Q1 2026 earnings summary

Executive summary

• Consolidated revenue for Q1 2026 was NT$201.3 billion, up 5% sequentially and 1.1% year-over-year.

• Net income for Q1 2026 was NT$2,391M, a 27% increase from the previous quarter but a 9% decrease year-over-year.

• EPS for Q1 2026 was NT$0.45, compared to NT$0.32 in Q4 2025 and NT$0.50 in Q1 2025.

• Gross margin remained stable at 5.3%, while operating margin was 2.5%.

• The review report was qualified due to certain non-significant subsidiaries' financials not being audited, representing 4.7% of assets and 2.7% of comprehensive income.

Financial highlights

• Net sales revenue increased to NT$201.3 billion from NT$199.1 billion year-over-year.

• Gross profit for Q1 2026 was NT$10,597M, down 5% sequentially but up 1% year-over-year.

• Operating profit remained stable at NT$2,644M, flat sequentially and down 2% year-over-year.

• Non-operating gain of NT$447M in Q1 2026, driven by FX gains and higher interest income.

• Pre-tax income rose 23% sequentially to NT$3,091M, but fell 10% year-over-year.

Outlook and guidance

• Management highlighted ongoing innovation and expansion in AI, automotive, and healthcare sectors.

• Strategic investments and new product launches are expected to support future growth.

• The group is evaluating the impact of IFRS 18, which will affect income statement presentation from 2028.

• No significant impact expected from other new standards not yet endorsed.