Darfon Electronics (8163) Q2 2026 earnings summary

Executive summary

• Achieved strong quarterly revenue growth of 24.8% sequentially and 8.9% year-over-year, driven by a rebound in the green energy channel business.

• Operating margin improved sequentially due to economies of scale and effective expense controls.

• Net income rose 86.8% quarter-over-quarter and 208.5% year-over-year, outpacing revenue growth and reflecting structural profitability improvements.

Financial highlights

• 2Q26 net sales reached NT$7,517 million, up from NT$6,025 million in 1Q26 and NT$6,903 million in 2Q25.

• Gross profit margin was 16.6%, up from 16.1% in 2Q25 and 18.0% in 1Q26.

• Operating income increased to NT$148 million, up 87.9% sequentially and 17.1% year-over-year.

• Net income for 2Q26 was NT$61 million, with basic EPS of NT$0.31.

• Free cash flow for IH26 was negative NT$414 million, reflecting higher capital expenditures.

Segment performance

• Green energy segment showed significant rebound, contributing to overall revenue growth.

• Product mix continues to shift toward green energy and integrated components, with IT peripherals declining as a share of revenue.