Amkor Technology(AMKR) - 2025 Q3 - Quarterly Results

Financial Performance - Amkor reported third quarter revenue of $1.99 billion, a 31% sequential increase, driven by demand for Advanced packaging [2]. - Gross margin for Q3 2025 was 14.3%, compared to 12.0% in Q2 2025 and 14.6% in Q3 2024 [3]. - Net income attributable to Amkor was $127 million, with earnings per diluted share of $0.51, reflecting a significant increase from $54 million and $0.22 in Q2 2025 [4]. - EBITDA for Q3 2025 was $340 million, up from $259 million in Q2 2025 [3]. - Net income for the nine months ended September 30, 2025, was $203,587 thousand, compared to $249,734 thousand for the same period in 2024, reflecting a decrease of 18.5% [23]. - Cash flows from operating activities provided $451,126 thousand in the nine months ended September 30, 2025, down from $551,260 thousand in 2024, a decline of 18.2% [23]. Guidance and Future Outlook - Amkor's guidance for Q4 2025 includes net sales projected between $1.775 billion and $1.875 billion, with a gross margin of 14.0% to 15.0% [9]. - The company plans to increase full year 2025 capital expenditures to approximately $950 million [9]. - The company anticipates continued investment in equipment and facilities to support customer demand, reflecting a strategic focus on capacity expansion [24]. Assets and Liabilities - Total cash and short-term investments as of September 30, 2025, was $2.1 billion, while total debt stood at $1.8 billion [6]. - Total assets increased to $8,187,482 thousand as of September 30, 2025, up from $6,944,328 thousand at December 31, 2024, representing a growth of 17.9% [21]. - Total current liabilities rose to $2,260,982 thousand as of September 30, 2025, compared to $1,455,275 thousand at December 31, 2024, an increase of 55.3% [21]. - Long-term debt increased to $1,264,501 thousand as of September 30, 2025, from $923,431 thousand at December 31, 2024, marking a rise of 37.0% [21]. - Total stockholders' equity increased to $4,342,944 thousand as of September 30, 2025, from $4,183,165 thousand at December 31, 2024, a growth of 3.8% [21]. Cash Flow and Investments - Cash, cash equivalents, and restricted cash at the end of the period totaled $1,556,414 thousand, up from $959,926 thousand, indicating a significant increase of 62.1% [23]. - The company reported a net cash used in investing activities of $554,517 thousand for the nine months ended September 30, 2025, compared to $501,752 thousand in 2024, an increase of 10.5% [23]. Market and Customer Insights - The company’s top ten customers accounted for 73% of net sales in Q3 2025 [11]. - Communications end market represented 51% of total sales, while computing accounted for 19% [11]. Strategic Initiatives - Amkor's new Advanced packaging and test campus is under construction in Arizona, emphasizing its commitment to U.S. semiconductor manufacturing [2]. Industry Risks - The company faces risks related to the cyclical nature of the semiconductor industry, which may impact future performance and financial results [25].