Delta Electronics (2308) Q2 2025 earnings summary

Executive summary

• Q2 sales reached a record NT$124.0B, up 20% YoY and 4% QoQ; operating margin rose to a record 15.1%.

• Strong data-center demand and passive-component shipments supported record gross profit and margin; currency appreciation against the U.S. dollar tempered reported revenue growth.

• 1H25 revenue was NT$242,954M, up 24.8% YoY; net income rose 54% to NT$24,179M and EPS was NT$9.31.

Financial highlights

• Q2 gross profit was NT$44.0B, up 25% YoY; gross margin was 35.5%, versus 34.1% in Q2 2024 and 31.8% in Q1.

• Q2 operating profit was NT$18.7B, up 42% YoY and 33% QoQ; EBITDA reached NT$26.8B, up 24% YoY, with a 21.6% margin.

• Q2 net profit after tax was NT$13.9B, up 40% YoY and 36% QoQ; EPS was NT$5.37, versus NT$3.94 in Q1 and NT$2.76 in Q2 2024.

• 1H25 gross profit was NT$81,837M and operating profit was NT$32,705M, versus NT$62,250M and NT$20,527M a year earlier.

Outlook and guidance

• If conditions remain smooth, H2 is expected to outperform H1; management said it was too early to assess next year’s outlook.

• Hyperscaler data-center investment remains aggressive, with no significant turbulence expected in the H2 AI outlook; longer-term returns depend on revenue and profit conversion.

• R&D spending is expected to remain substantial, with the expense ratio targeted near 9%, subject to revenue growth.

• Continued focus on margin improvement, innovative energy-efficient solutions, and growth in infrastructure and electronics; the solution-provider business model is expanding.