FIT Hon Teng (6088) H2 2025 earnings summary

Executive summary

• Revenue for the year ended December 31, 2025 was US$5,003 million, up 12.4% year-over-year; net profit was US$157 million, up 1.9% year-over-year.

• 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%).

• Gross profit increased 7.6% to US$946 million, but gross margin declined to 18.9% from 19.7% due to product mix and higher precious metals costs.

• No final dividend was declared for 2025.

Financial highlights

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

• Basic EPS rose 1.4% to US2.20 cents; diluted EPS unchanged.

• Income tax expense increased 23.2% to US$82 million, mainly due to withholding tax and higher profits in some regions.

• Cash and cash equivalents at year-end were US$1,067 million; total bank borrowings rose to US$1,794 million.

• Capital expenditures were US$420 million, mainly for new production complexes and facility upgrades.

Outlook and guidance

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

• Cloud segment seen as a key growth driver; prudent approach in consumer interconnects due to memory supply constraints.

• Auto mobility to leverage recent acquisition and focus on EV and autonomous driving technologies.

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