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.

• EPS reached NT$1.12 in Q2 2026, up 62.3% YoY and 119.6% QoQ, with 1H26 EPS at NT$1.63 (+32.5% YoY).

• Net income for Q2 2026 was NT$2,711 million (+71.5% YoY, +118.9% QoQ); 1H26 net profit attributable to owners was NT$3.82 billion, up from NT$2.60 billion YoY.

• Major acquisitions included NCL Energy Sdn. Bhd. and Lien Chang Electronic Enterprise Co., Ltd., strengthening mechatronics and energy engineering.

• Strategic partnerships in renewable energy and robotics, and a share exchange with Hon Hai Precision, supported business expansion.

Financial highlights

• Q2 2026 net sales: NT$16,600 million (+6.4% YoY, +16.6% QoQ); 1H26 revenue: NT$30,835 million (+5.5% YoY).

• Gross margin: 25.1% in Q2 2026 (+1.6 ppts YoY and QoQ); 1H26 gross margin stable at 24%.

• Operating margin: 10.5% in Q2 2026 (+1.0 ppt YoY, +2.2 ppts QoQ); 1H26 operating profit: NT$4.59 billion.

• Cash and cash equivalents increased to NT$28.47 billion as of June 30, 2026.

• Dividend payout for 2025 was NT$2.0 per share.

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.

• Continued growth anticipated in mechatronic solutions and energy engineering, leveraging acquisitions and partnerships.

• Investments in AI data center solutions and Southeast Asian expansion to drive future revenue.