Hon Hai Precision Industry (2317) Q4 2025 earnings summary

Executive summary

• FY25 revenue totaled NTD 8,103,105 million, up 18% year-over-year, with Q4 revenue at NTD 2,606,372 million, up 22% YoY and 27% QoQ.

• Net profit for FY25 attributable to owners was NTD 189,354 million, up 24% year-over-year; consolidated net profit reached NTD 215,034 million, a 25% increase.

• Gross margin remained stable at 6%, while operating profit margin improved to 3% from 3% in 2024.

• Q4 net profit margin declined to 1.73% from 2.17% a year ago.

• Strong growth in cloud/networking and smart consumer electronics segments.

Financial highlights

• Q4 gross profit was NTD 153,327 million, up 17% year-over-year.

• Q4 operating income rose 33% year-over-year to NTD 85,591 million.

• FY25 operating income increased 29% year-over-year to NTD 259,223 million.

• FY25 EPS was NTD 13.61, up from NTD 11.01 in FY24; diluted EPS was NTD 13.40.

• Free cash flow for FY25 was NTD 53,089 million, up from NTD 29,690 million in FY24.

Outlook and guidance

• FY26 expects year-over-year growth in cloud/networking and smart consumer electronics.

• 1Q26 guidance indicates stable or growing performance in major segments.

• Strong AI server demand projected, with high double-digit QoQ growth in 1Q26 shipments.

• The Board approved a cash dividend of NT$7.20 per share for 2025, up from NT$5.80 in 2024.

• The Group aims to maintain a gearing ratio below 70% and continue strategic investments and capital expenditures.