Yageo (2327) Q4 2025 earnings summary

Executive summary

• Q4 2025 net revenue reached TWD 36 billion, up 9% sequentially and 20% year-over-year, driven by AI applications and Shibaura acquisition.

• Full year 2025 revenue was TWD 133 billion, up 9.3% year-over-year, with specialty products and AI demand as key growth drivers.

• AI-related applications contributed 13% of Q4 revenue, with growth across all sectors and products.

• Successful acquisition of Shibaura in Q4 2025, with results included from November, impacting product and regional sales mix.

• Gross margin improved to 37.3% in Q4 2025 and 36.2% for FY2025, reflecting favorable product mix and cost improvements.

Financial highlights

• Q4 2025 gross margin was 37.3%, up 1.1 percentage points sequentially and 4.1 points year-over-year.

• Operating margin for Q4 was 24.3%, up 1.4 points sequentially and 6.4 points year-over-year; EBITDA margin reached 30.6%.

• Q4 net income was TWD 6.8 billion, up 6.2% sequentially and 82% year-over-year; EPS was TWD 3.29.

• Full year 2025 net income was nearly TWD 24 billion, up 22% year-over-year; EPS was TWD 11.51.

• Free cash flow in Q4 was TWD 8.6 billion, 27% higher than Q3; FY2025 free cash flow was TWD 6.1 billion.

Outlook and guidance

• Q1 2026 guidance expects net sales, gross margin, and operating margin to be slightly better than Q4 2025, despite seasonal effects.

• Utilization rates guided to increase 3–5% quarter-on-quarter for both premium and standard products.

• AI-related demand expected to remain a key growth driver across product categories and segments.

• Industrial and European segments anticipated to continue improving.

• No major capacity expansion planned for 2026; focus remains on efficiency and debottlenecking.