Himax Technologies (HIMX) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $199.2 million, down 7.3% sequentially but better than guidance, driven by strong automotive IC and T-CON sales.

• Gross margin for Q3 2025 was 30.2%, in line with guidance; EPS was $0.006 per diluted ADS, beating expectations.

• Automotive business remained the largest revenue contributor, accounting for over 50% of total revenues, with resilient demand for TDDI and T-CON technologies.

• WiseEye AI and smart glasses businesses are entering rapid growth, expected to become key growth engines.

• FY2024 revenue was $906.8 million, down 4.1% year-over-year, but profit rose 57.6% to $79.8 million, with EPS up 57.4% to $0.456.

Financial highlights

• Q3 2025 gross margin: 30.2%; EPS: $0.006 per diluted ADS; after-tax profit: $1.1 million.

• Operating loss for Q3 2025 was $0.6 million (operating margin -0.3%), mainly due to higher employee bonuses.

• Cash and equivalents at quarter end: $278.2 million, down from $332.8 million last quarter due to dividend and bonus payouts.

• Operating cash inflow: $6.7 million, down from $16.5 million prior quarter.

• FY2024 OPEX declined 5.6% year-over-year due to strict cost controls and lower employee bonus compensation.

Outlook and guidance

• Q4 2025 revenue expected to be flat sequentially, with gross margin flat to slightly up depending on product mix.

• Q4 2025 profit per diluted ADS estimated at $0.02–$0.04.

• Automotive driver IC sales projected to grow single-digit year-over-year in 2025.

• WiseEye and AR/AI smart glasses revenues projected to grow substantially over the next few years.

• CPO business expected to see meaningful revenue contribution starting 2027, with mass production in 2028.