Hon Hai Technology Group (Foxconn) Announces First Quarter 2025 Financial Results
·
1Q25 net profit surges 91%
on-year, operating profit up 27% on-year
·
AI server revenue in 2Q
expected to nearly double on-quarter & on-year
·
Adjusts 2025 outlook to
significant growth from strong growth citing forex
·
Hopes more EV opportunities
follow Mitsubishi milestone---14 May 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its
first quarter 2025 financial results.
In the first quarter, revenue reached a record high
for the period at NT$1.6443 trillion. Net profit attributable to the parent
company hit NT$42.1 billion, jumping 91% on year, up by NT$20.1 billion.
Earnings per share in the January-March period was NT$3.03. Looking ahead to
the second quarter, although a traditionally low season, significant growth can
be achieved both on-quarter and on-year, driven by increased demand in the
product segments of cloud and networking, and components and others. The
full-year outlook is adjusted to significant growth, as revenue conversion into
New Taiwan dollars is impacted by exchange rates. However, revenue in US
dollars remains unchanged.
In the first quarter of 2025, revenue reached
NT$1.6443 trillion, up 24% from a year ago. Gross profit was NT$100.5 billion, rising
20% for the same period, while operating profit at NT$46.5 billion, gained 27%,
and net profit (attributable to parent company) totaled NT$42.1 billion,
surging 91% at the same time. Gross profit margin, operating profit margin and
net profit margin were 6.11%, 2.83% and 2.56%, respectively, compared with
6.32%, 2.78% and 1.66% in the same period last year; both operating profit and
net profit margins improved; EPS reached NT$3.03, up by NT$1.44 from NT$1.59 in
the same period last year.
The keyword to sum up first quarter performance is
without a doubt: “A.I.” Foxconn Chairman Young Liu reiterated the view that
2025 is the first year of AI, saying that the performance of the AI server
business is quite impressive, with revenue growing by more than 50% compared to
the same period last year, indicating that demand for computing power is still
very strong. Whether AI servers or general-purpose servers, shipment
performance has improved significantly.
"As our level of automation continues to
improve, the production yield is also getting better and better. As I mentioned
at the last investor call, the performance of AI servers should be better
quarter by quarter," said Chairman Liu. AI server revenue in the second
quarter is anticipated to nearly double both on-quarter and on-year. Moreover,
we have great confidence in the growth momentum of AI servers this year.
As the AI server business continues to expand, the
proportion of the cloud and networking product segment this year will be close
to that of the smart consumer electronics product segment, he said. Despite
being confronted by the geopolitical impact on the economic and trade
environment, Foxconn foresaw four to five years ago that "regional
manufacturing" would become a trend and began expanding its manufacturing
capabilities into different regions at that time. Deploying agile supply chain
management and local production strategies, we now have a solid foothold in 233
sites worldwide.
The Group's global production bases span 24
countries. In addition to Asia as the main base, we have more than 50 sites in
the Americas, and more than 10 sites each in Europe and India. We have
accumulated many years of local operating experience and abundant human
resources in various regions. This layout allows us to respond quickly to
customer needs.
Chairman Liu pointed out that in addition to tariffs,
geopolitics, and changes in monetary policy around the world that may affect
the global economy, and even though current sales forecast have not changed
much, the exchange rate may affect revenue after conversion into New Taiwan
dollars. Compared to the view in March, the Group is more cautious and is
slightly adjusting its outlook to significant growth from strong growth.
Chairman Liu also shared news about the Group’s
cooperation with Mitsubishi Motors Corp. In the future, we expect to assist
Mitsubishi in selling models we design and develop for Oceania, he said, adding
that this hits one of our most important EV milestones: securing orders from
traditional automakers. Step by step, the Group is realizing its EV business
goals.
He said that we hope this cooperation with Mitsubishi
will lead to opportunities to team up with more international automakers in the
future, including other traditional Japanese automakers. Meanwhile, MODEL B
should officially begin mass production in the second half of this year.
On another front, with batteries being the most
critical component in electric vehicles, the Kaohsiung Ho Fa plant already has
the capacity for mass production and is providing products to customers for
testing. Subsequently, the Group will complement the planning progress of
domestic electric bus and commercial vehicle customers to assist in meeting the
annual goal of localizing electric vehicles.
In the semiconductor field, Chairman Liu pointed out
the Group has technical specifications that are superior to the industry in the
field of next-generation SiC MOSFET, which can significantly improve power
conversion efficiency and reduce energy waste; mass production is expected in
the second half of this year. The acquisition of the Fukuyama wafer plant in
Japan also goes toward expanding the Group’s semiconductor footprint.
Subsidiary Foxsemicon Integrated Technology Inc,
which is responsible for semiconductor equipment, also earlier disclosed it
would acquire FairTech Corp, which will support Foxconn in potential expansion
in the aerospace industry. This will also allow the Group to expand into the
drone industry, and, futurely by integrating existing industry technologies, to
create more applications.
About
Foxconn
Established
in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (TWSE:2317) is the
world’s largest electronics manufacturer and leading technological solutions
provider, ranking 32nd among the Fortune Global 500. In 2024, revenue totaled
TWD6.86 trillion (approx. USD208 billion). The Group’s market share in
electronics manufacturing services (EMS) exceeds 40%. The Group operates over 230
campuses across 24 countries and is one of the world’s largest employers with
approx. 900,000 employees during peak manufacturing season. The Group has
expanded its capabilities into the development of electric vehicles, digital
health, and robotics, and three key technologies – next-generation
communications technology, AI, and semiconductors – which are key to driving
its long-term growth strategy. It is dedicated to championing environmental
sustainability in the manufacturing process and serving as a best-practice
model for global enterprises. To learn more, visit www.honhai.com
2025/05/14