Delta Electronics (2308) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached NT$118.9 billion, up 30% year-on-year and 4% quarter-over-quarter, setting a new quarterly record, mainly driven by strong data center and power electronics demand.

• Gross profit was NT$37.8 billion, with gross margin improving to 31.8% from 29.5% a year ago, reflecting higher sales and operational efficiency.

• Operating profit rose 90% year-on-year and 31% quarter-over-quarter to NT$14.0 billion, with operating margin at 11.8%.

• Net profit after tax was NT$10.2 billion, up 78% year-on-year and 43% quarter-over-quarter, with net margin at 8.6%; EPS was NT$3.94.

• Comprehensive income for the period reached NT$17.7 billion, with significant contributions from foreign currency translation.

Financial highlights

• EBITDA was NT$23.0 billion, up 54% year-on-year and 35% quarter-over-quarter, representing 19.3% of sales.

• OPEX was NT$23.8 billion, up 21% year-on-year but down 3% quarter-over-quarter; OPEX ratio was 20%.

• R&D expenses accounted for 9.3% of sales; SG&A for 10.7%.

• Net cash from operating activities was NT$16.3 billion, up from NT$15.1 billion a year earlier.

• Total assets as of March 31, 2025, were NT$566.6 billion, with equity attributable to owners at NT$245.0 billion.

Outlook and guidance

• OPEX growth expected to moderate in coming quarters, but OPEX ratio may not remain at 20% due to revenue seasonality.

• Q2 revenues may grow seasonally compared to Q1, but significant uncertainties remain due to tariff policies and global economic conditions.

• No definitive guidance for Q3 and Q4 due to ongoing tariff and supply chain uncertainties.

• The company continues to focus on energy-efficient solutions and transformation from product to solution provider, targeting growth in power electronics, mobility, automation, and infrastructure.

• No significant impact expected from new or upcoming IFRS standards based on current assessment.