Darfon Electronics (8163) Q2 2026 earnings summary

Executive summary

• Achieved strong quarterly revenue growth of 24.8% sequentially and 8.9% year-over-year, driven by a rebound in the green energy channel business.

• Consolidated net sales for the six months ended June 30, 2026, were NT$13,541,859 thousand, up from NT$12,386,110 thousand year-over-year, with net income of NT$93,111 thousand, a significant improvement from a net loss of NT$27,278 thousand in the prior year period.

• Net income rose 86.8% quarter-over-quarter and 208.5% year-over-year, outpacing revenue growth and reflecting structural profitability improvements.

• Two major acquisitions completed: 85% of SoFlow Mobility GmbH (SMG) and 100% of Hitron Electronics Corp. (HEC), both included in consolidated results from their respective acquisition dates.

• The review report is qualified due to certain subsidiaries and equity-method investees not being reviewed by independent auditors.

Financial highlights

• 2Q26 net sales reached NT$7,517 million, up from NT$6,025 million in 1Q26 and NT$6,903 million in 2Q25.

• Gross profit margin was 16.6%, up from 16.1% in 2Q25 and 18.0% in 1Q26; gross margin for the six months was 17%, consistent with the prior year.

• Operating income increased to NT$148 million, up 87.9% sequentially and 17.1% year-over-year; operating income for the six months was NT$227,245 thousand, up from NT$159,125 thousand year-over-year.

• Net income for 2Q26 was NT$61 million, with basic EPS of NT$0.31; basic and diluted EPS for the six months were both NT$0.51, compared to NT$0.43 in the prior year.

• Free cash flow for IH26 was negative NT$414 million, reflecting higher capital expenditures.

Segment performance

• Green energy segment showed significant rebound, contributing to overall revenue growth.

• Intelligent products contributed NT$7,933,836 thousand in revenue for the six months, while green energy products contributed NT$5,608,023 thousand.

• Product mix continues to shift toward green energy and integrated components, with IT peripherals declining as a share of revenue.

• Revenue growth was observed in both segments year-over-year.