Far EasTone Telecommunications (4904) Q2 2026 earnings summary

Executive summary

• Achieved record-breaking Q2 and H1 2026 results, with all KPIs exceeding guidance and industry-leading growth across revenue, EBITDA, operating income, and EPS.

• Consolidated revenue for H1 2026 was NT$56.47 billion, up 6.9% YoY, with net income of NT$7.90 billion, a 16.1% increase.

• Growth driven by 5G upgrades, consumer essential services, handset sales, ICT project deliveries, and successful integration of Far Eastern Electronic Toll Collection Co. (FETC).

• The period saw the consolidation of new subsidiaries, including InSynerger Technology and Renova Cloud HK Limited, expanding presence in energy management and cloud services.

Financial highlights

• Q2 2026 revenue: NT$28.66 billion, up 13.6% YoY; EBITDA: NT$10.15 billion, up 8.1% YoY; net income: NT$4.01 billion, up 18.8% YoY; EPS: NT$1.11, up 18.8% YoY.

• H1 2026 revenue: NT$56.47 billion, up 10.1% YoY; EBITDA: NT$20.23 billion, up 7.2% YoY; operating income: NT$9.92 billion, up 16.5% YoY; net income: NT$7.72 billion, up 16.7% YoY; EPS: NT$2.14, up 16.7% YoY.

• Cash and cash equivalents at June 30, 2026 were NT$7.30 billion, up from NT$5.82 billion a year earlier.

• Net cash from operating activities was NT$17.19 billion for H1 2026; net cash used in investing and financing activities was NT$4.55 billion and NT$12.47 billion, respectively.

• Year-to-date free cash flow: NT$14.5 billion; CapEx: NT$3.0 billion, in line with annual guidance.

Outlook and guidance

• Expects continued strong performance in H2 2026, focusing on accelerating growth in consumer essential services, scaling AI project delivery, and timely delivery of smart ICT projects.

• Some ICT project revenues delayed to next quarter due to project completion timing.

• 5G standalone deployment and LEO satellite service readiness progressing as planned.

• The Group is assessing the impact of new IFRS standards effective from 2027 and 2028.