Nanya Technology (2408) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached TWD 30.094 billion, up 60.3% sequentially and 357% year-over-year, driven by higher ASP and shipment volumes.

• Full-year 2025 revenue was TWD 66.587 billion, a 95.1% increase from 2024, with net income of TWD 6.603 billion, reversing a loss in the prior year.

• Gross margin for Q4 was 49%, with net margin at 36.8% and EPS of TWD 3.58; full-year gross margin was 22.5% and EPS TWD 2.13.

• Strong cash flow generation and debt repayment improved the net cash position, with free cash flow of TWD 12.929 billion and net cash at year-end of TWD 38.5 billion.

• Comprehensive income for 2025 was TWD 5.10 billion, reflecting improved operational performance and positive investment results.

Financial highlights

• Q4 gross profit was TWD 14.759 billion (49% margin), up from TWD 3.465 billion (18.5%) in Q3.

• Operating income in Q4 was TWD 11.781 billion (39.1% margin), up from TWD 1.119 billion (6%) in Q3.

• Full-year 2025 operating income was TWD 5.243 billion (7.9% margin), compared to a loss of TWD 10.555 billion in 2024.

• Book value per share at year-end was TWD 54.99, up from TWD 53.27 in 2024.

• Cash and cash equivalents at year-end 2025 were TWD 58.07 billion.

Outlook and guidance

• Q1 2026 ASP expected to rise by at least 10%, possibly exceeding 20%, driven by continued tight supply and strong demand.

• 2026 shipment growth targeted in the teens percentage year-over-year, with new fab ramping up in phases starting mid-2026.

• CapEx for 2026 planned at TWD 50 billion, with 30% allocated to wafer capacity and 70% to new fab construction.

• Management notes ongoing economic uncertainty, including geopolitical risks, inflation, and DRAM market demand volatility.

• Dividend payout guidance for 2025 earnings is 45%-55%, with a lower ratio expected for 2026 to preserve cash for expansion.