Nanya Technology (2408) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached TWD 18.779 billion, up 78.4% sequentially and 130.9% year-over-year, driven by higher ASP and bit shipments.

• Gross profit turned positive at TWD 3.465 billion (18.5% margin), reversing a loss in Q2; net income was TWD 1.563 billion (8.3% margin), with EPS of NT$0.50.

• Free cash flow improved to TWD 3.843 billion, and net cash increased to TWD 24.1 billion after debt repayment.

• Q3 marked a return to profitability after several loss-making quarters, with a positive outlook for Q4 and beyond, supported by robust AI and cloud demand.

• 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.

Financial highlights

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

• EBITDA reached TWD 4.731 billion, compared to negative TWD 743 million in Q2.

• Earnings per share improved to TWD 0.5 from a Q2 loss of TWD 1.3.

• Book value per share increased to TWD 50.78.

• Cash and cash equivalents at September 30, 2025 were NT$52.31 billion, down from NT$61.16 billion a year earlier.

Outlook and guidance

• Q4 shipments expected to be flat or slightly up from September levels; revenue growth to be driven mainly by ASP increases.

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

• CapEx for 2025 targeted at TWD 16 billion, with next major capacity expansion not until 2027.

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

• The company does not expect to incur material top-up tax liabilities under the Global Minimum Tax regime.