GlobalWafers (6488) Q4 2025 earnings summary

Executive summary

• 2025 marked a pivotal year as expansion shifted from construction to execution, with new capacities ramping up and operational focus on efficiency and yield improvement.

• Revenue for 2025 was NT$60.6 billion, down 3.2% year-over-year; net income declined 25.7% to NT$7.3 billion, with EPS at NT$15.29.

• Gross margin declined to 24.1% in 2025 from 31.6% in 2024, reflecting margin pressure and higher costs.

• Major capital increase, bond issuances, and significant U.S. CHIPS Act subsidies strengthened liquidity and funded expansion.

• AI, high-performance computing, and specialty wafer mix drove structural demand and long-term growth prospects.

Financial highlights

• Operating income for 2025 was NT$8.6 billion, down 38.8% year-over-year; operating margin fell to 14.3%.

• EBITDA for 2025 was NT$17.3 billion, a 3.7% decrease year-over-year; EBITDA margin at 28.6%.

• CapEx decreased to NT$31.9 billion in 2025 from NT$48.3 billion in 2024.

• Cash and equivalents at year-end 2025: NT$19.5 billion; net interest income positive at NT$1.1 billion.

• Dividend payout for 2025 set at NT$7.7 per share, with a 50.4% payout ratio.

Outlook and guidance

• 2026 revenue expected to be flat or slightly higher YoY, with AI and diversified applications as key drivers.

• Gross margin expected to gradually improve as utilization rises and product mix shifts to higher value.

• CapEx to decline further in 2026 and 2027, unless new expansions are triggered by customer commitment and government support.

• Global expansion is shifting from construction to volume ramp, with new fabs in Italy and the U.S. contributing to revenue.

• Management expects limited impact from new IFRS standards effective 2026 and 2028.