Himax Technologies, Inc. Reports Fourth Quarter and Full Year 2025 Financial Results; Provides First Quarter 2026 Guidance

Core Viewpoint - Himax Technologies reported Q4 2025 financial results that met guidance expectations, with a sequential revenue increase and a stable gross margin, while providing a cautious outlook for Q1 2026 due to macroeconomic uncertainties and anticipated declines in revenue and gross margin [1][3][4][11]. Financial Performance - Q4 2025 net revenues were $203.1 million, a sequential increase of 2.0%, exceeding the company's guidance of flat quarter-over-quarter [3][4]. - Gross margin for Q4 2025 was 30.4%, consistent with the guidance of flat to slightly up from 30.2% in the previous quarter [3][4]. - Q4 profit per diluted ADS was 3.6 cents, at the high end of the guidance range of 2.0 to 4.0 cents [3][4]. - Full year 2025 revenues totaled $832.2 million, an 8.2% decline compared to 2024, with gross margin slightly up at 30.6% [11][12]. Segment Performance - Revenue from large display drivers in Q4 2025 was $21.7 million, a 14.2% increase from the previous quarter, outperforming guidance [4][5]. - Small and medium-sized display driver segment revenues totaled $139.1 million, reflecting a slight decline of 1.3% sequentially [6]. - Non-driver sales reached $42.3 million, a 7.9% increase from the previous quarter, driven by increased ASIC Tcon shipments [7]. Q1 2026 Guidance - Company expects Q1 2026 revenues to decline by 2.0% to 6.0% quarter-over-quarter, with gross margin anticipated to be flat to slightly down [1][47]. - Profit per diluted ADS for Q1 2026 is projected to be in the range of 2.0 cents to 4.0 cents [1][47]. Industry Outlook - The automotive sector outlook remains limited due to uncertain government policies and consumer sentiment, but sales are expected to rebound in Q2 2026 [2][18]. - Himax is optimistic about its long-term automotive display IC business, supported by a strong design-win pipeline and new technology offerings [19]. - The company continues to expand into ultralow power AI technologies and other emerging areas, which are expected to drive future growth [20][21]. Strategic Initiatives - Himax is focusing on expanding its WiseEye AI technology, which is gaining traction in smart glasses and other applications [24][46]. - The company is also advancing its Co-Packaged Optics (CPO) initiatives, aiming for mass production readiness in 2026 [25][26]. - Himax's automotive display IC business is positioned to benefit from the shift towards OLED technologies and advanced display solutions [33][34].