WIN Semiconductors (3105) Q2 2026 earnings summary

Executive summary

• 2Q26 consolidated revenue reached NT$5,257 mn, up 15% QoQ and 39% YoY, with gross margin improving to 28.2% and operating margin rising to 14.1%.

• Net income attributable to owners was NT$977 mn in 2Q26, with EPS at NT$2.3, both showing strong sequential growth.

• For the six months ended June 30, 2026, consolidated operating revenue rose to NT$9,847 mn, up from NT$7,356 mn YoY, with net profit attributable to owners at NT$1,510 mn, reversing a loss in the prior year.

• Gross margin improved to 27% from 18% YoY for 1H26, and basic EPS was NT$3.56 compared to a loss per share of NT$0.96 in the prior period.

• The foundry segment remained the primary revenue driver, with significant contributions from Asia and the Americas.

Financial highlights

• Gross profit for 2Q26 was NT$1,485 mn, up 23% QoQ and 113% YoY; net income for 2Q26 was NT$905 mn, up 102% QoQ.

• 1H26 net revenue was NT$9,847 mn, up 34% YoY, with gross margin at 27.4% and net margin at 13.7%.

• Operating expenses declined 5% QoQ and 9% YoY in 2Q26, with opex rate dropping to 14%.

• Cash and cash equivalents stood at NT$5,320 mn as of 2Q26, down from NT$7,067 mn at year-end 2025.

• Debt ratio improved to 30.31% from 38.93% YoY.

Outlook and guidance

• 3Q26 consolidated revenue expected to increase by low-teens percentage QoQ.

• Gross margin for 3Q26 projected to remain in the low-thirties percentage range.

• The company expects continued growth in the foundry segment, supported by robust demand in Asia and the Americas.

• New IFRS standards effective in 2027 and 2028 are not expected to have a significant impact.

• A new syndicated loan of US$170 million is planned to refinance maturing debt in 2027.