Nanya Technology (2408) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached NT$18.779 billion, up 78.4% quarter-over-quarter and 130.9% year-over-year, marking a return to profitability with gross margin at 18.5%, net margin at 8.3%, and EPS of NT$0.50, driven by higher ASP and shipment growth.

• Free cash flow turned positive at NT$3.843 billion, and net cash increased to NT$24.1 billion.

• CapEx for 2025 is targeted at NT$16 billion, below the original approval of NT$19.2 billion, with board approval for a cap at NT$19.6 billion.

• Strong demand for AI and cloud server DRAM, with DDR4 and LPDDR4 still significant in consumer and mobile segments.

• For the nine months ended September 30, 2025, operating revenue was NT$36.49 billion, up 32% year-over-year, but the period ended with a net loss of NT$4.48 billion.

Financial highlights

• Q3 2025 net sales were NT$18.779 billion, up from NT$10.526 billion in Q2 and NT$8.133 billion in Q3 2024.

• Gross profit for Q3 2025 was NT$3.465 billion, reversing a loss in Q2.

• Operating income was NT$1.119 billion (6% margin), up from a Q2 loss of NT$4.5 billion.

• Net income for Q3 2025 was NT$1.563 billion (8.3% margin), compared to a Q2 loss of NT$4.102 billion.

• EBITDA reached NT$4.731 billion, with a margin of 25.2%.

Outlook and guidance

• Q4 shipment expected to be flat or slightly up from September levels, with positive outlook for Q4'25 and beyond.

• Revenue growth in coming quarters to be driven mainly by ASP increases, with limited shipment growth due to capacity constraints.

• 2025 bit shipment plan revised up to 50% YoY growth.

• DRAM demand in 2026 to be driven by AI and cloud server adoption, with expanding applications in edge and custom solutions.

• CapEx for 2026 likely to remain low until new fab is ready in 2027.