Yageo (2327) Q1 2026 earnings summary

Executive summary

• Net sales reached NT$38,166 million (NT$38.17 billion), up 6.1% sequentially and 22.7% year-over-year, driven by strong A.I. application demand and growth in both standard and specialty products.

• Gross margin improved to 38.1%, up 0.8 percentage points quarter-over-quarter and 2.5 points year-over-year, reflecting favorable product mix and cost improvements.

• Operating income rose 10.1% sequentially and 48.7% year-over-year; net income increased 18.5% quarter-over-quarter and 44.7% year-over-year, reaching NT$8.04 billion.

• EPS grew to NT$3.90, up 18.5% sequentially and 44.7% year-over-year.

• The group completed the full acquisition of Shibaura Electronics in January 2026, expanding its sensor business.

Financial highlights

• EBITDA margin reached 31.7%, up 1.1 percentage points quarter-over-quarter and 3.7 points year-over-year.

• Free cash flow increased to NT$8,742 million, reflecting stable cash generation and inventory optimization.

• Net financial debt as a percentage of LTM EBITDA improved to 33% from 59% in the previous quarter.

• Cash and cash equivalents increased to NT$86.64 billion as of March 31, 2026, from NT$66.37 billion a year earlier.

• Net cash from operating activities was NT$8.98 billion, up from NT$7.33 billion in Q1 2025.

Outlook and guidance

• Continued positive momentum expected from A.I.-related applications and robust demand across product categories.

• Management is assessing the impact of new IFRS standards effective in 2027 and 2028, with early adoption possible.

• The group continues to monitor global market conditions and regulatory changes, especially regarding foreign exchange and interest rate risks.

• Focus remains on balancing financial flexibility and funding future growth opportunities.