Nanya Technology (2408) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 46.4% quarter-over-quarter to TWD 10.526 billion, driven by a 70% increase in bit shipments, despite a mid-single digit decline in ASP and unfavorable exchange rates.

• Gross profit, operating income, EBITDA, and net income all remained negative, with net loss widening to TWD 4.109 billion and EPS at -1.32, mainly due to lower ASP, higher R&D expenses, and significant FX headwinds.

• DRAM market saw recovery in non-AI segments at the end of Q2, while AI-related demand continued to strengthen, especially for HBM and DDR5.

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

• Report covers consolidated financials for the three months ended March 31, 2025 and 2024, reviewed by independent auditors with no material misstatements identified.

Financial highlights

• Net sales: TWD 10.526 billion (up 46.4% QoQ, up 6.1% YoY).

• Gross profit: -TWD 2.165 billion (gross margin: -20.6%, down from -15.0% in Q1).

• Operating income: -TWD 4.5 billion (operating margin: -42.8%).

• EBITDA: -TWD 743 million (margin: -7.1%).

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

Outlook and guidance

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

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

• DRAM market anticipated to remain stable in H2 2025, with AI and non-AI demand both contributing.

• Continued operational improvements and inventory management anticipated.

• New IFRS 18 standard on financial statement presentation will be effective January 1, 2027; the group is evaluating its impact.