Primax Electronics (4915) Q2 2026 earnings summary

Executive summary

• 2Q26 revenue reached NT$17.21bn, up 18% year-over-year, driven by strong consumer audio and professional audio project growth.

• Gross margin declined to 14.8%, down 2.7 percentage points YoY, due to RMB appreciation, cost pressures, and unfavorable product mix.

• EPS for 2Q26 was NT$1.26, a 21.3% decrease YoY and 3.1% lower sequentially.

• R&D expenses rose 2% YoY to NT$881mn, representing 5.1% of revenue, reflecting continued investment in technology innovation.

Financial highlights

• Operating margin for 2Q26 was 3.7%, down 1.1ppt YoY and 0.6ppt QoQ.

• Net income for 2Q26 was NT$580mn, down 20.9% YoY.

• 1H26 revenue totaled NT$33.13bn, up 12.8% YoY; 1H26 net income was NT$1.18bn, down 19.9% YoY.

• Free operating cash flow for 2Q26 was negative NT$785mn, with ending cash balance at NT$11.33bn.

Outlook and guidance

• 3Q26 revenue expected to grow at mid-teens YoY, led by consumer speaker projects and Auto/AloT products, though soft PC demand may offset growth.

• Gross margin may remain under pressure due to product mix shifts and persistent cost pressures.

• Opex ratio likely to be lower than 3Q25.

• Information Products revenue expected to decline slightly YoY and QoQ; Smart Lifestyle and Auto/AloT segments to drive growth.