AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the second quarter of 2025(1).
Consolidated revenues in the second quarter of 2025 were NT$69.24 billion, down by 4.0% quarter-over-quarter and down by 6.8% year-over-year. AUO’s net profit attributable to owners of the Company for the second quarter of 2025 was NT$1.95 billion, with a basic EPS(2) of NT$0.26.
Highlights of consolidated results for the second quarter of 2025
Looking back to the second quarter, due to the higher comparison base for Display and Mobility Solutions in the first quarter and the unfavorable impact of the NT dollar's appreciation against the US dollar, revenue has declined sequentially. Nevertheless, revenue for Vertical Solutions continued to deliver sequential growth driven by demand recovery for commercial and industrial panels and volume ramp up for vertical projects, despite foreign exchange fluctuations. Overall, the Company's quarterly revenue decreased by 4.0% quarter-over-quarter, and declined by 6.8% year-over-year. In terms of profitability, even with the headwinds from unfavorable foreign exchange rates, the Company focused on product mix optimization and expense control measures, thus leading to continued profitability in the second quarter, with both gross margin and operating margin delivering sequential improvements. Net profit attributable to owners of the Company reached NT$1.95 billion, with earnings per share (EPS) of NT$0.26. Inventory turnover days stood at 53 days, and net debt-to-equity ratio was 39.4%. While these figures increased from the previous quarter, they remained at relatively healthy levels, if the Company excludes the impact from the consolidation of the balance sheets of ADLINK Technology Inc. starting from the second quarter, and the foreign exchange fluctuations.
In response to the Company's ongoing progression of the three pillars operating structure—Display, Mobility Solutions, and Vertical Solutions— the Board of Directors today approved the creation of a new position of Group Chief Executive Officer, to be held by the Company’s Chairman, Mr. Paul Peng. This position will oversee the Group's global strategy and development direction, as well as lead the Group's operational infrastructure units. Additionally, to accelerate the integration of the three pillars of business development, global presence, and organizational efficiency and synergy, the Board also approved the creation of a new position of Group Chief Operating Officer, to be held by the Company’s President, Dr. Frank Ko. This position will help the Company respond to external challenges, strengthen competitiveness, and accelerate strategic transformation. While assuming their new duties, both Mr. Paul Peng and Dr. Frank Ko, will maintain their current respective roles as Chairman and President. The new appointments will take effect on August 1, 2025.
Looking ahead to the third quarter, we still expect headwinds from unfavorable foreign exchange rates, and uncertainties from macroeconomic factors and tariffs causing brand customers to adopt a more cautious approach with lukewarm inventory build-up demand for the higher season. In response to these uncertainties, we will remain prudent and disciplined for our capital expenditures, maintain stringent operating expense management, and keep adequate cash reserves. We will also focus on optimizing product mix and reducing costs to mitigate risks in our operations.
(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the second quarter of 2025 was calculated based on the weighted average outstanding shares of the reporting quarter (7,547 million shares).
(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.