Nanya Technology (2408) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$18.779 billion, up 78.4% quarter-over-quarter and 130.9% year-over-year, marking a return to profitability with gross margin at 18.5%, net margin at 8.3%, and EPS of NT$0.50.

• Free cash flow became positive at NT$3.843 billion, and net cash increased to NT$24.1 billion.

• Positive business outlook driven by AI, cloud, and advanced technology development, with continued focus on DDR4, DDR5, and technology ramp-up.

• For the nine months ended September 30, 2025, operating revenue was NT$36.49 billion, up 32% year-over-year, but the period ended with a net loss of NT$4.48 billion.

• Comprehensive loss for the nine months was NT$3.39 billion, compared to NT$7.87 billion in the prior year.

Financial highlights

• Revenue for Q3 2025 was NT$18.779 billion, up from NT$10.526 billion in Q2 and NT$8.133 billion in Q3 2024, driven by a 40% ASP increase and mid-20s shipment growth.

• Gross profit for Q3 2025 was NT$3.465 billion, with margin improving to 18.5% from -20.6% in Q2.

• Operating income was NT$1.119 billion (6% margin), up from a Q2 loss of NT$4.5 billion.

• EBITDA reached NT$4.731 billion, up from negative NT$743 million in Q2.

• Book value per share increased to NT$50.78.

Outlook and guidance

• Q4 shipment expected to be flat or slightly up from September levels, with revenue growth mainly from ASP increases.

• 2025 bit shipment plan revised up to 50% YoY growth.

• CapEx for 2025 guided at NT$16 billion, with next year's CapEx to remain low until new fab readiness in 2027.

• Positive demand outlook for AI, cloud, and edge solutions, with robust AI-driven upcycle anticipated.

• Management expects no material impact from new IFRS standards effective in 2026 and 2027.