Hua Hong Semiconductor (1347) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached a record $659.9 million, up 22.4% year-over-year and 3.9% sequentially, driven by higher wafer shipments and improved ASP.

• Full-year 2025 revenue was $2,402.1 million, up 19.9% year-over-year, with gross margin at 11.8%.

• Net profit attributable to shareholders for Q4 was $17.5 million, reversing a $25.2 million loss in Q4 2024; full-year net profit attributable to shareholders was $54 million, down 5.6% year-over-year.

• Maintained high capacity utilization, averaging 106% in Q4 and above 100% for both 8-inch and 12-inch fabs.

• No dividend proposed for 2025, as funds are retained for capacity expansion and R&D.

Financial highlights

• Q4 2025 gross margin was 13%, up 1.6 percentage points year-over-year but down 0.5 points sequentially due to labor costs.

• Operating expenses for Q4 2025 were $130.2 million, up 17.7% year-over-year and 29.6% sequentially, mainly due to labor and depreciation.

• Other income net was $34.1 million, compared to a $40.5 million loss in Q4 2024, mainly from foreign exchange gains and government subsidies.

• Net cash from operating activities for 2025 was $650 million, up 41.5% year-over-year.

• R&D investment reached $199.4 million, representing 11.53% of revenue.

Outlook and guidance

• Q1 2026 revenue is expected between $650 million and $660 million, with gross margin projected at 13%-15%.

• Management remains confident in capturing growth opportunities amid global semiconductor shifts, focusing on expanding 12-inch production and accelerating R&D.

• Ongoing capacity expansion at Wuxi Fab Nine, with phase two equipment move-in and full capacity target for Q3 2026.