ASX earnings call summary

Prepared Highlights

• Q1 2025 consolidated net revenues declined 9% sequentially and increased 12% year-over-year (prepared).
• Gross profit of $24.9 billion, gross margin 16.8%, up 0.4 ppts sequentially and 1.1 ppts year-over-year (prepared).
• Operating profit $9.7 billion, operating margin declined 0.4 ppts sequentially, improved 0.9 ppts year-over-year (prepared).
• Net income $7.6 billion, down $1.8 billion sequentially, up $1.9 billion year-over-year (prepared).
• Fully diluted EPS $1.64; basic EPS $1.75 (prepared).
• ATM business revenues $86.7 billion, down 2% sequentially, up 17% year-over-year; ATM gross margin 22.6% (prepared).
• LEAP (leading-edge advanced packaging) services accounted for 10% of ATM revenues in Q1 vs. 6% for full year 2024 (CEO).
• Test business grew 2% sequentially in Q1; test as % of ATM revenue sustained at 18%; target to reach 19%–20% by year-end (CEO).
• EMS business revenues $62.3 billion, down 17% sequentially, up 5% year-over-year; EMS gross margin 8.9% (prepared).
• Machinery and equipment CapEx in Q1: $892 million (packaging $395M, testing $472M, EMS $23M, interconnect $2M); plus $410M on facilities (prepared).
• EBITDA for Q1: $27.6 billion; net debt to equity 41%; expected to peak near 60% in Q3 2025 (prepared).
• Official guidance (Q2 2025): ATM revenues to grow 9%–11% quarter-over-quarter; ATM gross margin to increase 140–180 bps quarter-over-quarter. EMS revenues to decline 10% year-over-year; EMS operating margin to decline 100 bps year-over-year (CEO).
• Mgmt quotes:
  • “Volatility is the enemy of sound, long-term planning and strategy.” (CEO)
  • “We need to minimize the short-term noise in order to reach the long-term signal.” (CEO)
  • “Test is becoming a more strategically critical component of our overall strategy.” (CEO)
  • “We continue to believe we can gain market share in testing throughout the year.” (CEO)
  • “We are not making any changes for the year’s projection at this point, and that’s on the revenue as well as on CapEx for the year.” (CFO)

Prepared Metrics

Q&A Batch (1-2 of 2)

Q1 — Brad Lin

• Topic: 关税影响与行业需求复苏（消费电子、工业、汽车）
• Key points:
  • 管理层明确表示调整定价不是解决关税问题的方案。
  • 集团直接对美出口占比极低：EMS出货<10%可转至其他地点；ATM几乎无直接对美出货。
  • 若有关税影响，对竞争对手的冲击将大于公司自身。
  • 除汽车外其他行业逐步复苏；高端汽车势头更好，低端MCU等仍在去库存。
  • 预计2025年汽车业务将实现增长。
• Mgmt stance: 中性偏积极，强调自身直接暴露有限且可通过转移产能应对，同时认为竞争格局有利。

Q2 — Jason Tsang

• Topic: Q2分板块收入展望及先进封装（面板级封装、硅光子）技术进展
• Key points:
  • 管理层拒绝按客户或细分市场给出Q2具体指引，因涉及特定客户信息。
  • Q2通常是季节性淡季，当前产品变化更多反映制造周期，不宜判断趋势。
  • 面板级封装：正在建立并校准试点线，客户认证时间表为2025年下半年至2026年，实际采用取决于客户。
  • 公司已长期投资该技术，代工合作伙伴同步推进，技术方案按计划进行。
• Mgmt stance: 中性，对指引持谨慎态度；对先进封装技术进展表述积极但强调以客户需求为驱动。