GlobalWafers (6488) investor relations material

Executive summary

• Q2 2026 revenue rose 8.8% quarter-over-quarter to TWD 15.2 billion, though down 5.0% year-over-year; H1 2026 revenue was TWD 29.2 billion, a 7.6% decrease YoY.

• Net profit for Q2 2026 surged to TWD 3.78 billion, up 99.3% sequentially and 124.7% YoY, with net margin at 24.8%.

• AI and high-performance computing continue to drive demand, with customer inventories normalizing and broad-based recovery across industrial, memory, and mature node applications.

• A fire at the Novara, Italy fab impacted part of the 8-inch line, but recovery is underway with insurance coverage mitigating financial impact.

• Long-term agreements are expanding, including a record 10-year LTA signed, with more customers seeking capacity assurance.

Financial highlights

• Q2 2026 revenue: TWD 15.2 billion (+8.8% QoQ); H1 2026 revenue: TWD 29.2 billion.

• Gross profit for H1: TWD 6.1 billion; gross margin: 20.7%.

• Operating margin for H1: 9.9%; net profit margin: 19.4%, boosted by non-operational gains from Siltronic share valuation.

• Q2 EPS: TWD 7.9; H1 EPS: TWD 11.87, both showing strong growth over prior periods.

• Cash and cash-related assets at Q2 end: TWD 52.9 billion; liquidity and financial structure remain strong.

Outlook and guidance

• Sequential revenue growth expected in Q3, though Novara fire may temper gains; long-term growth outlook remains robust due to AI, advanced packaging, and specialty wafer demand.

• Meaningful revenue and prepayment growth anticipated from 2027 as new capacity ramps and product mix improves.

• Depreciation costs will rise in H2 and into next year as new equipment and sites ramp up.

• AI demand remains structurally robust, with hyperscalers increasing AI-related capex and broadening demand across advanced and mature nodes.

• Customer inventory levels are normalizing, and order visibility is improving across end markets.