ASE Technology (ASX) Q3 2025 earnings summary

Executive summary

• Net revenues for Q3 2025 reached NT$168,569 million, up 11.8% sequentially and 5.3% year-over-year, with net income attributable to shareholders at NT$10,870 million, a 45% increase quarter-over-quarter and 12% year-over-year.

• Basic EPS was NT$2.50, up 44% sequentially and 11% year-over-year.

• Both ATM and EMS businesses outperformed sales and profitability expectations, driven by high utilization in advanced packaging and testing lines, and robust AI-related demand.

• Profitability benefited from higher factory loading but was negatively impacted by NT dollar appreciation against the US dollar.

• AI and LEAP services continue to drive growth, with strong customer demand and a shift toward pre-booking capacity.

Financial highlights

• Consolidated net revenues reached NT$168,569 million, up 12% sequentially and 5% year-over-year; gross profit was NT$28,877 million with a gross margin of 17.1%.

• Operating profit was NT$13,201 million, up NT$3 billion sequentially and NT$1.7 billion year-over-year; operating margin was 7.8%.

• Net income was NT$10,870 million, up NT$3.4 billion sequentially and NT$1.2 billion year-over-year; effective tax rate was 19%.

• EBITDA for the quarter was NT$32,613 million.

• Cash and cash equivalents stood at NT$75,142 million as of September 30, 2025.

Outlook and guidance

• Q4 2025 consolidated revenue expected to grow 1%-2% quarter over quarter; gross and operating margins to increase by 70-100 basis points.

• ATM Q4 revenue projected to grow 3%-5% sequentially, with gross margin up 100-150 basis points.

• EMS Q4 revenue expected to be flat or slightly down; operating margin to remain similar to Q4 2024.

• Full-year ATM revenue expected to exceed target, growing over 20% year-over-year in USD terms; leading-edge revenue on track for $1.6 billion in 2025.

• Management commentary highlights continued focus on margin improvement and operational efficiency, while cautioning about industry cyclicality, regulatory changes, and geopolitical risks.