ChipMOS TECHNOLOGIES Inc. (NASDAQ: IMOS) reported fourth‑quarter 2025 results that beat expectations, with revenue of NT$6,521.1 million (US$207.9 million) and earnings per share of US$0.46. The quarter’s earnings surpassed analyst estimates of US$0.34, a beat of $0.12 or 35%, driven by a 20.8% year‑over‑year rise in revenue and a 14.3% gross margin that improved from 10.8% in the prior year.
The jump in gross margin reflects a shift toward higher‑margin memory solutions for data‑center and AI applications, as well as disciplined cost control. Pricing power in the high‑value memory segment helped offset the modest increase in raw‑material costs, allowing ChipMOS to lift its net profit margin to 7.66% from 6.8% in Q4 2024.
Full‑year 2025 revenue reached NT$23,932.9 million (US$762.9 million), up 5.5% from the previous year, but net profit fell sharply to NT$495.1 million (US$15.8 million) from NT$1,420.0 million (US$45.3 million) in 2024. The decline is largely attributable to a swing from foreign‑exchange gains in 2024 to losses in 2025 and higher losses from associates, which eroded earnings despite the revenue growth.
Management expressed confidence in the second half of 2025, citing continued momentum in the memory segment and strategic investments in automotive panels and OLED. The board also approved a cash distribution of NT$1.23 per share from capital surplus, and the company reaffirmed its share‑repurchase program and dividend policy, signaling a commitment to shareholder returns.
Investors reacted positively to the results, with the market citing the strong Q4 revenue growth, the significant margin expansion, and the cash distribution as key drivers. The upbeat reaction reflects confidence in ChipMOS’s ability to capitalize on the data‑center and AI demand while maintaining liquidity to fund future investments.
The earnings beat and margin improvement suggest short‑term operational strength, but the full‑year net‑profit decline highlights the impact of foreign‑exchange volatility and associate losses. Management’s guidance for the remainder of 2025 remains cautious, emphasizing the need to navigate headwinds while pursuing high‑margin opportunities.
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