Himax Technologies (HIMX) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was $203.1M, up 2% sequentially, with profit and EPS at the high end of guidance and gross margin at 30.4%.

• Full year 2025 revenue was $832.2M, down 8.2% YoY, with net profit at $43.9M ($0.25 per diluted ADS), reflecting macroeconomic and geopolitical headwinds.

• Automotive and AI-related applications remained resilient, while consumer electronics demand was soft; non-driver IC and WiseEye AI businesses showed strong growth.

• Operating expenses for Q4 were $54.9M, down 9.6% QoQ but up 11.6% YoY, reflecting cost controls and increased R&D.

Financial highlights

• Q4 2025 operating profit was $6.8M (3.4% margin), up from a loss in Q3 but down YoY; after-tax profit was $6.3M, or 3.6 cents per diluted ADS.

• Q4 gross margin was 30.4%, slightly up from 30.2% in Q3; full year gross margin was 30.6% (2024: 30.5%).

• Cash and equivalents at year-end were $286.2M, up from $224.6M a year ago; Q4 operating cash inflow was $16.8M.

• Q4 inventories were $152.7M, with DSO at 88 days, down from 96 days a year ago.

Outlook and guidance

• Q1 2026 revenue expected to decline 2–6% sequentially; gross margin to be flat to slightly down; profit per diluted ADS guided at $0.02–$0.04.

• Q1 is expected to be the trough, with sales rebounding in Q2 and stronger momentum in H2 2026 as inventories remain lean and new automotive projects ramp up.

• CPO revenue contribution limited in 2026, with meaningful impact expected from 2027 onward.