Nanya Technology (2408) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 46.4% quarter-over-quarter to TWD 10.526 billion, with shipment volume up nearly 70% QoQ and 6.1% YoY, but ASP declined by mid-single digits QoQ and mid-teens YoY; net loss widened to TWD 4.109 billion, with EPS at -1.32.

• Gross profit, operating income, EBITDA, and net income all remained negative, with gross margin at -20.6% and net loss deepening from Q1.

• Market conditions for non-AI DRAM bottomed out at the end of Q2, with recovery seen in June; AI-related demand, especially for HBM and DDR5, continues to drive growth.

• Operating expenses rose due to higher R&D spending, while free cash flow remained negative.

Financial highlights

• Net sales: TWD 10.526 billion, up 46.4% QoQ and 6.1% YoY; gross loss: TWD 2.165 billion; gross margin: -20.6%.

• Operating loss: TWD 4.5 billion; operating margin: -42.8%; EBITDA: -TWD 743 million.

• Net loss: TWD 4.109 billion; EPS: -1.32; book value per share: TWD 49.91.

• Free cash flow: -TWD 3.7 billion; cash balance declined from TWD 62.6 billion to TWD 52.5 billion.

• Exchange rate impact was unfavorable by TWD 1.124 billion, with income tax benefit of TWD 516 million.

Outlook and guidance

• Gross margin is expected to turn positive in Q3, with significant improvement in EPS; net margin may turn positive in Q4.

• Bit shipment for 2025 is expected to increase by over 40% YoY, up from previous >30%.

• DRAM market expected to remain stable in 2H 2025, with continued AI-driven demand and transition from DDR4 to DDR5.

• 2025 CAPEX plan set at up to TWD 19.6 billion.