Semiconductor Manufacturing International (981) Q1 2026 earnings summary

Executive summary

• First quarter 2026 revenue reached $2,505.5 million, up 0.7% sequentially and 11.5% year-over-year, with gross margin at 20.1% and profit attributable to owners at $197.4 million.

• EBITDA was $1,435.2 million, with an EBITDA margin of 57.3%.

• Operating profit declined 17% sequentially and 20% year-over-year, mainly due to lower other operating income and higher operating expenses.

• Management expressed increased optimism for the year, citing strong AI-driven demand, customer order backlog, and localization trends.

Financial highlights

• Gross profit was $503.6 million, up 5.3% sequentially but down 0.4% year-over-year.

• Net cash generated from operating activities was $685 million; net cash used in investing activities was $1,697 million; net cash from financing activities was $2,365 million.

• Capital expenditure for 1Q26 was $1,563 million, with depreciation and amortization at $1,088 million.

• Basic and diluted EPS remained at $0.02.

Outlook and guidance

• Second quarter 2026 revenue is expected to increase 14%-16% sequentially, with gross margin guidance of 20%-22%.

• 1Q26 results exceeded guidance, with revenue up 0.7% sequentially (vs. flat guidance) and gross margin at 20.1% (vs. 18%-20% guidance).

• Shipment units and blended ASP are expected to improve, driven by price increases and strong order book.