FIT Hon Teng (6088) H2 2025 earnings summary

Executive summary

• Revenue grew 12.4% year-over-year to $5,003M in FY2025, with net income up 1.9% to $157M.

• Growth was driven by strong performance in cloud (+37.6%), consumer interconnects (+7.3%), and auto mobility (+94.0%), offset by declines in smartphones (-12.6%) and system products (-4.3%).

• Operating profit increased 23.9% year-over-year to $218M, and operating margin improved by 41 bps to 4.36%.

• Segment revenue mix in 2025: System Products 27%, Automobility 19%, Consumer Interconnects 17%, Smartphones 17%, Cloud/Datacenter 16%, Other 4%.

• No final dividend was declared for 2025.

Financial highlights

• Gross profit rose 7.6% year-over-year to $946M, though gross margin declined by 84 bps to 18.91%.

• OPEX increased 3.6% to $728M.

• Net profit margin decreased by 33 bps to 3.13%.

• Basic EPS grew 1.4% to 2.20.

• Operating profit fell 12.2% to $287M, with margin down to 5.8% from 7.3% due to a prior-year one-time gain.

Outlook and guidance

• 2026 full-year guidance projects revenue and gross profit growth above 15% year-over-year.

• Segment guidance for 2026 and 1Q26 indicates strongest growth in Cloud/Datacenter and System Products, with other segments expected to range from stable to moderate growth.

• Three-year outlook forecasts Cloud/Datacenter revenue mix rising from mid- to high-twenties percent by 2028.

• AI-driven demand expected to continue benefiting cloud and consumer interconnects, with focus on 5GAIoT, acoustics, and auto mobility.

• Macroeconomic uncertainties and supply chain risks remain, especially for system products.