Semiconductor Manufacturing International (981) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $2,489 million, up 4.5% sequentially and 12.8% year-over-year, with gross margin at 19.2%, down from 22.0% in 3Q25 due to higher depreciation.

• Full-year 2025 revenue was $9,327 million, up 16.2% year-over-year, with gross margin at 21% and profit attributable to owners rising 39.1% to $685 million.

• Capacity utilization remained high, with annualized rate at 93.5% and 8-inch lines over 100%, though 4Q25 utilization declined to 85.5%.

• Capital expenditure for 2025 was $8.1 billion, exceeding projections to address robust demand and longer equipment lead times.

• China accounted for 87.6% of 4Q25 revenue, with strong growth in smartphone and consumer electronics applications.

Financial highlights

• Q4 2025 operating profit was $299 million; EBITDA was $1,405 million with a 56.5% margin; profit attributable to shareholders was $173 million.

• Full-year 2025 operating profit was $1,110 million; EBITDA was $5,256 million with a 56.4% margin; profit attributable to owners was $685 million.

• 4Q25 gross profit was $478 million, down 8.5% sequentially and 4.2% year-over-year.

• Cash and cash equivalents at year-end 2025 were $5,872 million, with total cash on hand at $11,936 million.

• End-2025 balance sheet: total assets $52.3 billion, total liabilities $17.3 billion, debt $12.6 billion, equity $35 billion.

Outlook and guidance

• Q1 2026 revenue expected to be flat sequentially, with gross margin guidance between 18% and 20%.

• 2026 revenue growth projected to outpace industry peers, with capital expenditure roughly flat year-over-year.

• 2026 depreciation expected to rise by about 30% due to new fab ramp-ups; focus on maintaining high utilization and cost efficiency.