GlobalWafers (6488) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached NT$16.0 billion, up 2.7% QoQ and 4.5% YoY, with H1 2025 revenue at NT$31.6 billion, up 3.9% YoY.

• Net profit for Q2 was NT$1.68 billion (10.5% margin), and H1 2025 net profit was NT$3.14 billion, with EPS of NT$6.56.

• Major expansion across three continents continues, with US and Italy sites operational and revenue ramp-up expected from 2H25.

• Specialty wafer and 12" capacity expansion are strategic focuses, with 12" wafers projected to account for nearly two-thirds of output post-expansion.

• Cash and cash equivalents decreased to NT$22.2 billion as of June 30, 2025, from NT$44.2 billion a year earlier.

Financial highlights

• Q2 2025 gross margin was 25.8% (down 0.6pp QoQ); H1 2025 gross margin was 26.1%; operating margin was 15.9%.

• Q2 net profit margin: 10.5%; H1 net profit margin: 9.9%.

• Q2 EPS: NT$3.52; H1 EPS: NT$6.56.

• H1 2025 net profit fell 51.1% YoY to NT$3.14 billion; basic EPS for H1 2025 was NT$6.56, compared to NT$14.04 in H1 2024.

• CapEx in H1 2025 was NT$19.1 billion, reflecting ongoing investment in capacity expansion.

Outlook and guidance

• Revenue from new US and Italy expansions is expected to ramp up from 2H25 through 1H26.

• H2 2025 revenue expected to be flat or slightly better than H1 in USD terms; 2026 expected to be slightly better than 2025.

• Long-term demand remains strong in AI, robotics, healthcare, and renewables, supporting advanced wafer growth.

• Inventory normalization is underway, but recovery may be gradual amid macro and trade uncertainties.

• Declining net profit and cash position may indicate a cautious outlook.