Hon Precision (7769) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached TWD 10,725 million, a significant decrease from TWD 30,271 million in Q1 2025, reflecting a shift in business dynamics.

• Gross margin remained stable at 56.24% in Q1 2026 compared to 56.54% in Q1 2025, indicating resilient profitability despite lower sales.

• Net income for Q1 2026 was TWD 4,624 million, representing 43.1% of revenue, up from 40.8% in Q1 2025.

Financial highlights

• Revenue for Q1 2026: TWD 10,725 million; Q1 2025: TWD 30,271 million; Q1 2024: TWD 13,992 million.

• Gross profit for Q1 2026: TWD 6,032 million (56.2% margin); Q1 2025: TWD 17,114 million (56.5%).

• Operating profit for Q1 2026: TWD 5,360 million (50.0% margin); Q1 2025: TWD 15,046 million (49.7%).

• Net income for Q1 2026: TWD 4,624 million (43.1% margin); Q1 2025: TWD 12,362 million (40.8%).

• EPS for Q1 2026: TWD 25.70; Q1 2025: TWD 75.71; Q1 2024: TWD 32.95.

Outlook and guidance

• Continued demand growth expected for Israeli customer ASIC Switch and large-scale engineering data qualification in 2H26.

• U.S. EV major's AI chip ramp-up and new handler shipments scheduled for 3Q26.

• Cold plate revenue contribution in 2026 projected to exceed historical averages.