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% 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.

• Strong demand from localization trends, industry reshuffling, and robust China and smartphone/consumer electronics segments drove growth.

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

• EBITDA for 2025 totaled $5,256 million, up from $4,380 million in 2024.

Financial highlights

• Q4 net profit from operations was $299 million; EBITDA was $1,405 million with a margin of 56.5%.

• Full-year net profit from operations was $1,110 million; EBITDA was $5,256 million with a margin of 56.4%.

• Profit attributable to the company for 2025 was $685 million.

• Operating cash flow in 2025 was $3,194 million; investing cash outflow was $6,495 million; financing cash inflow was $2,676 million.

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

Outlook and guidance

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

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

• Capacity expansion to continue in 2026, with an estimated increase of 40,000 12-inch equivalent wafers by year-end.

• Depreciation in 2026 expected to rise by about 30% year-over-year, pressuring gross margin.