ENNOSTAR (3714) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue declined 7.1% quarter-over-quarter to NT$5,208 million, with a negative operating margin of 25.2% and net loss margin of 15%.

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

• Seasonality, less favorable product mix, forex headwinds, and challenging market conditions contributed to losses; inventory control and cash flow remained robust.

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

• Net loss attributable to parent company widened to NT$782 million in Q4 2025 and NT$2,715 million for 2025.

Financial highlights

• Q4 operating margin was -25.2%; net profit margin was -15%; loss per share was NT$1.07.

• Full-year gross margin was 6%.

• Cash flow from operations remained positive in Q4 and totaled NT$2.1 billion for the year.

• CapEx for 2025 was NT$1,270 million; inventory turnover improved to 75 days.

• EBITDA margin for Q4 2025 was -7.2%.

Outlook and guidance

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

• 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 accelerate in 2026, becoming a key growth driver.

• Automotive chip revenue to slide in Q1, but packaging and modules to offset; TV backlight chips to grow double digits in Q1.

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