ASE Technology (ASX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenues reached NT$148.2 billion, up 11.6%–12% year-over-year and down 8.7%–9% sequentially, with net income attributable to shareholders at NT$7.55 billion, a 33%–33.5% increase year-over-year but down sequentially.

• Basic EPS was NT$1.75, up from NT$1.31 in Q1 2024 and down from NT$2.15 in Q4 2024.

• Gross margin improved to 16.8%–17% from 16% year-over-year, and operating margin rose to 6.5%–7%.

• The independent auditor’s review concluded the financial statements present fairly in all material respects.

• Completed purchase price allocation for Hirschmann acquisition, with retrospective adjustment to prior results.

Financial highlights

• Gross profit for Q1 2025 was NT$24.9 billion, up 20% year-over-year and down 7% sequentially; gross margin at 16.8%.

• Operating income was NT$9.67 billion, up from NT$7.48 billion in Q1 2024.

• EBITDA for the quarter was NT$27.6 billion, up from NT$23.9 billion in Q1 2024.

• Net cash from operating activities reached NT$19.97 billion.

• Total assets as of March 31, 2025 were NT$774.2 billion, with equity at NT$335.0 billion.

Outlook and guidance

• ATM segment revenues expected to grow 9%–11% quarter-over-quarter in Q2 2025, with gross margin up 140–180 bps.

• EMS segment revenues projected to decline 10% year-over-year in Q2 2025, with operating margin down 100 bps.

• Full-year CapEx guidance remains unchanged at $2.5–$2.6 billion.

• Gross margin expected to return to structural range in the second half, barring major surprises.

• The company continues to assess the impact of new IFRS standards effective in 2026 and 2027.