ENNOSTAR (3714) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue declined 7.1% quarter-over-quarter and 5.4% year-over-year to NT$5,208 million, impacted by seasonality, less favorable product mix, and softer consumer demand.

• Full-year 2025 revenue was NT$22,183 million, down 9% from 2024, with a net loss of NT$2,715 million and a loss per share of NT$3.69.

• Operating margin for Q4 was -25.2%, with a net profit margin of -15% and a loss per share of NT$1.07.

• Intense competition in the LED industry, forex losses, and challenging market conditions pressured profitability.

• Premium applications (professional lighting, sensing, automotive) increased revenue share to 25% in Q4 2025.

Financial highlights

• Q4 cash position was NT$30.4 billion, with net cash of NT$12.8 billion after borrowings.

• Inventory turnover improved to 75 days in Q4 2025, down from 85 days in Q4 2024.

• Positive operating cash flow in Q4 and full-year 2025 (NT$2.1 billion), despite operating losses.

• CapEx for 2025 was NT$1,270 million, down from NT$1,430 million in 2024; proactive debt repayment continued.

• Cash and cash equivalents at year-end 2025 were NT$13,385 million, down from NT$14,677.8 million in 2024.

Outlook and guidance

• 2026 focus is on improving profitability through product mix optimization and cost reduction.

• Proceeds from factory disposals will be invested in future-oriented technologies.

• Q1 2026: Sensing revenue expected down low single digit QoQ, flat YoY; specialty lighting to grow double digits QoQ, single digit YoY; display revenue slightly down QoQ, flat YoY.

• Micro-LED revenue expected to grow at a higher rate in 2026, becoming a key driver.

• Automotive revenue in Q1 2026 expected to be slightly down; chip business to recover from Q2.

• TV and IT backlight chips to grow double digits in Q1 2026; overall segment to see low single-digit growth.

• 2026 CapEx planned at NT$2 billion, mainly for automotive and advanced display.