TECO Electric & Machinery (1504) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 6.4% YoY and 16.6% QoQ, driven by strong growth in Green Mechatronic Solution and Power & Energy segments, especially in Asian and North American markets.

• Gross margin improved 1.6 ppts YoY and QoQ, mainly due to better margins in Power & Energy.

• EPS reached NT$1.12, up 62.3% YoY and 119.6% QoQ, supported by operating profit growth and valuation gains on financial assets.

Financial highlights

• Q2 2026 net sales: NT$16,600 million (+6.4% YoY, +16.6% QoQ).

• Gross margin: 25.1% (+1.6 ppts YoY and QoQ).

• Operating margin: 10.5% (+1.0 ppt YoY, +2.2 ppts QoQ).

• Net income: NT$2,711 million (+71.5% YoY, +118.9% QoQ).

• 1H26 revenue: NT$30,835 million (+5.5% YoY); EPS: NT$1.63 (+32.5% YoY).

Outlook and guidance

• 2H26 revenue expected to increase YoY and HoH for Green Mechatronic Solution, Power & Energy, and Energy & System Automation; HVAC Technologies to see YoY growth but stable HoH.

• Company-wide gross margin expected to remain stable YoY and HoH.