Nanya Technology (2408) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached NT$49.087 billion, up 63.1% quarter-over-quarter and 582.9% year-over-year, driven by a significant increase in ASP despite a mid-single-digit decline in shipment volume.

• Net income for Q1 2026 was NT$26.058 billion, with a net margin of 53.1%, compared to a loss in Q1 2025 and 36.9% in Q4 2025.

• EPS for Q1 2026 was NT$8.41, based on 3,099 million weighted average shares.

• 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 NT$62.25 at quarter end.

Financial highlights

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

• Free cash flow for Q1 was NT$28.48 billion, with net cash at NT$68.2 billion, excluding private placement proceeds.

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

• Operating income reached NT$30.11 billion, a 155.6% increase year-over-year.

• EBITDA was NT$33.01 billion, with an EBITDA margin of 67.2%.

Outlook and guidance

• Q2 2026 is expected to see further improvement in gross margin and profitability, with high gross margins seen as sustainable for the next few quarters.

• Full-year 2026 bit shipment is targeted to grow by a teens percentage year-over-year.

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

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

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