ENNOSTAR (3714) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was TWD 5.74 billion, up 1.9% sequentially but down 13.1% year-over-year, impacted by NT dollar appreciation and front-loading in Q1.

• Net loss attributable to parent company widened to NT$878 million, with a negative net profit margin of 15.3% and EPS loss of TWD 1.19.

• Value-added applications (automotive, sensing, professional lighting) revenue grew 5% QOQ, while automotive segment maintained a 22% revenue share.

• Inventory turnover improved to 83 days, and net cash position at quarter-end was TWD 12.4 billion.

• Consolidated H1 2025 net loss was NT$1,320 million, with a qualified audit opinion due to unreviewed subsidiaries.

Financial highlights

• Q2 net revenue: TWD 5.74 billion (+1.9% QOQ, -13.1% YOY); H1 2025 revenue: NT$11,372 million, down from NT$12,189 million YOY.

• Gross margin in Q2 was 6.9%, down from 12.2% in Q1 and 15.3% in Q2 2024; H1 2025 gross margin was 10%.

• Operating margin: -14.5% in Q2; net profit margin: -15.3%; EBITDA margin: 2.6%.

• Cash and cash equivalents at June 30, 2025: NT$13,351 million; net cash: TWD 12.4 billion.

• Inventory turnover improved to 83 days from 91 in Q1 2025.

Outlook and guidance

• Q3 shipments expected to grow, driven by year-end sales peak and restocking, but exchange rates may impact revenue.

• Focus on ramping up value-added, higher-margin products and continued R&D investment for new products in 2025.

• Sensing segment Q3 revenue expected to decline single-digit % QOQ and YOY, but full-year sensing revenue to grow single-digit % YOY.

• Special lighting Q3 revenue to rise double-digit % QOQ but decline double-digit % YOY; full-year outlook conservative.

• Display business Q3 revenue to grow single-digit % QOQ, decline single-digit % YOY; full-year revenue flat or slightly down.