Hua Hong Semiconductor (1347) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached a record $659.9 million, up 22.4% year-over-year and 3.9% sequentially, with gross margin at 13.0% and net profit attributable to shareholders of $17.5 million, reversing a loss in Q4 2024.

• Full-year 2025 revenue was $2,402.1 million, up 19.9% year-over-year, with gross margin at 11.8% and net profit attributable to shareholders of $54.9 million.

• Maintained high capacity utilization at 106.1% for the year, among the highest in the foundry industry, driven by strong demand in AI, consumer, and specialty technology platforms.

• Strategic capacity expansion advanced, with Fab Nine (Wuxi) phase one completed ahead of schedule and Fab Five (Shanghai) acquisition progressing.

Financial highlights

• Q4 2025 gross profit was $85.5 million, up 39.1% year-over-year; operating expenses rose 17.7% to $130.2 million, mainly due to labor and depreciation.

• Other income net was $34.1 million, compared to a loss of $40.5 million in Q4 2024, mainly from FX gains and government subsidies.

• Net loss for Q4 was $18.7 million, narrowing 80.6% year-over-year but widening sequentially due to year-end bonus accruals.

• Basic EPS for Q4 2025 was $0.010; full-year basic EPS was $0.032; annualized ROE was 1.2% for Q4 and 0.9% for the full year.

• Full-year operating expenses were $425.6 million, up 17.9% year-over-year, mainly from increased R&D.

Outlook and guidance

• Q1 2026 revenue expected between $650 million and $660 million, with gross margin guidance of 13% to 15%.

• Management remains confident in capturing growth opportunities amid global semiconductor shifts.