ENNOSTAR (3714) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was NT$5,603 million, down 2.4% QoQ and 16.3% YoY, with net loss attributable to parent company at NT$613 million and basic EPS of negative NT$0.83.

• For the nine months ended September 30, 2025, revenue was NT$16,975 million, down 10% YoY, and net loss widened to NT$1,933 million.

• Operating margin for Q3 was negative 15.3%, and gross margin declined to 5.7% from 6.9% in Q2 and 16.5% in Q3 2024.

• The company is accelerating integration, with Ennostar Corporation established and Lextar integration set for January 1st next year.

• The group faced challenging market conditions, with significant declines in Epi/Chip and Packages/Modules segments.

Financial highlights

• Net non-operating income for Q3 was NT$250 million, a positive swing from a loss of NT$48 million in Q2, driven by reduced forest losses and gains from subsidiary liquidation.

• EBITDA margin for Q3 was 1.7%, down from 2.6% in Q2 and 14.9% in Q3 2024.

• Cash and cash equivalents at quarter-end were NT$14,328 million, with net cash position at NT$13,838 million after loans.

• Inventory turnover improved to 78 days from 83 in Q2.

• CapEx for Q3 was NT$243 million; for the nine months, capital expenditures totaled NT$811 million.

Outlook and guidance

• Q4 revenue from tensing expected to decline double-digit percentage points QoQ but grow double-digit YoY; full-year tensing revenue to grow single-digit YoY.

• Special lighting revenue anticipated to decline double-digit percentage points both QoQ and YoY, with a conservative full-year outlook.

• Display segment Q4 revenue expected flat or slightly down QoQ, with a single-digit YoY decline; full-year display revenue to decline slightly YoY.

• Micro-LED products entering pilot production, with mass production and more substantial revenue contribution expected next year.

• The company offset losses with capital surplus and distributed cash dividends of NT$664 million (NT$0.9 per share) in 2025.