HIMX · Himax Technologies, Inc.

Himax Technologies delivered Q1 2026 results at the high end of guidance across key metrics, with revenues of $199.0 million reflecting a 2.0% sequential decline but buoyed by 11.7% growth in large display drivers to $24.2 million from restocking by a leading panel maker. Small and medium-sized driver sales of $135.8 million dipped 2.4% amid seasonal weakness, with automotive drivers down double-digits due to Lunar New Year, inventory control, and subsidy tapering, offset by smartphone OLED and tablet gains. Non-driver revenues fell 7.7% to $39.0 million on lower ASIC Tcon and automotive Tcon shipments, though robust design-win pipeline signals recovery. Gross margin held at 30.4%, supported by revenue mix, while operating expenses dropped 8.4% QoQ to $50.3 million due to tape-out timing, yielding operating profit of $10.2 million (5.1% margin) and after-tax profit of $8.0 million or 4.6 cents per diluted ADS, beating guidance. Balance sheet remains strong with $287.6 million in cash and equivalents, lean inventories at $151.7 million, and DSO improved to 86 days. Capex of $2.9 million focused on R&D equipment. Q2 guidance signals rebound with 10-13% revenue growth, 32% gross margin, and 8.6-10.3 cents EPS, driven by inventory restocking and new automotive mass production in 2H26. Management highlights upward momentum from automotive Tcon local dimming design-wins, WiseEye AI adoption in smart glasses, and CPO progress with FOCI, diversifying beyond display drivers into high-margin areas like AI, AR, and optics despite cost pressures from memory tightness and gold prices. Annual dividend of 25.2 cents per ADS (payable July 10, 2026) at 100% payout underscores cash flow confidence.