Nanya Technology (2408) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached TWD 49.087 billion, up 63.1% quarter-over-quarter and 582.9% year-over-year, driven by a significant increase in ASP and strong DRAM demand, marking a turnaround from a net loss in Q1 2025.

• Net income for Q1 2026 was TWD 26.058 billion, with a net margin of 53.1%, compared to a loss in Q1 2025.

• Gross margin improved to 67.9% from 49% sequentially, and operating margin rose to 61.3% from 39.1%.

• Book value per share increased to TWD 62.25 from TWD 54.99 in the previous quarter.

• Q2 2026 is expected to see further improvement, with high gross margins projected to be sustainable.

Financial highlights

• ASP increased by over 70% quarter-over-quarter and more than 200% year-over-year.

• Free cash flow for Q1 was TWD 28.478 billion, with net cash at TWD 68.2 billion, excluding private placement proceeds.

• CapEx for Q1 2026 was TWD 2.8 billion; full-year CapEx is expected to reach TWD 52 billion, mainly for new FAB construction.

• EBITDA reached TWD 33.01 billion, with an EBITDA margin of 67.2%.

• Book value per share rose to TWD 62.25.

Outlook and guidance

• Q2 2026 performance is expected to surpass Q1 2026, with sustained high gross margins.

• Full-year 2026 bit shipment is targeted to grow around 15% year-over-year.

• CapEx for 2026 will focus 70% on clean room and facility construction, 30% on wafer equipment.

• Dividend payout for 2025 is TWD 4.65 billion (TWD 1.35 per share), with future payout ratios to be balanced against CapEx needs.

• New FAB construction is on schedule, with equipment move-in targeted for Q1 2027.