Financial Performance - Net sales increased by $390.3 million or 6.2% to $6,708.0 million in 2025 from $6,317.7 million in 2024, driven by higher sales across all end markets [220][227]. - Gross margin decreased to 14.0% in 2025 from 14.8% in 2024, primarily due to increased overhead and employee compensation costs [221][229]. - Operating income margin increased to 7.0% in 2025 from 6.9% in 2024, attributed to a cash receipt related to the Nanium acquisition [222]. - Selling, general and administrative expenses decreased by 8.2% to $331.8 million in 2025, primarily due to the recognition of the Nanium Insolvency Receipt [231]. - Research and development expenses increased by 2.3% to $166.7 million in 2025, focused on new packaging and test services [232]. - Total other expense, net increased to $22,766 thousand in 2025 from $7,439 thousand in 2024, representing a more than 100% increase [234]. Cash Flow and Investments - Net cash provided by operating activities was $1,095.6 million for 2025, compared to $1,088.9 million for 2024, mainly due to higher operating profits [224]. - Cash used in investing activities increased by $84.7 million to $(885,044) in 2025, primarily due to higher payments for property, plant, and equipment [261]. - Free cash flow for 2025 was $307,873, down from $359,275 in 2024, reflecting increased capital expenditures [264]. - The company sold receivables totaling $154.4 million in 2025 under non-recourse factoring arrangements, slightly down from $158.6 million in 2024 [243]. - The company’s cash flow from operating activities was impacted by changes in contract liabilities and higher operating profits [260]. Capital Expenditures and Future Outlook - Capital expenditures totaled $904.6 million in 2025, representing 13.5% of net sales, compared to $743.8 million or 11.8% of net sales in 2024 [223]. - The company expects capital expenditures in 2026 to be approximately $2.5 billion to $3.0 billion, significantly higher than the $904.6 million spent in 2025 [258]. - The company is expanding its manufacturing footprint with a new facility in Arizona, which began construction in the second half of 2025 [213]. Debt and Interest - As of December 31, 2025, the company had total debt of $1,445.2 million, with $162.4 million due within 12 months [248]. - Interest expense increased to $75,444 thousand in 2025 from $64,945 thousand in 2024, reflecting a 16.2% increase due to higher average outstanding debt [234]. - Interest income decreased to $(62,397) thousand in 2025 from $(65,541) thousand in 2024, a decline of 4.8%, primarily due to lower interest rates [235]. - The company has a total fixed rate debt of $956,171,000 with an average interest rate of 4.0% [291]. - The company has a total variable rate debt of $500,000,000 with an average interest rate of 5.4% [291]. - Total debt maturities amount to $1,456,171,000, with the largest portion of $444,016,000 due in 2030 [291]. Tax and Foreign Exchange - Income tax expense decreased to $68,503 thousand in 2025 from $75,481 thousand in 2024, a reduction of $6,978 thousand, with an effective tax rate of 15.4% [236]. - The company recognized a foreign exchange gain of $4.4 million for the year ended December 31, 2025, compared to a loss of $8.8 million in 2024 [287]. - Approximately 90% of net sales for the year ended December 31, 2025 were denominated in U.S. dollars, with the remaining in Japanese yen [285]. - A 10% appreciation of foreign currencies against the U.S. dollar could have resulted in a $163 million decrease in operating income for 2025 [285]. - The company employs natural hedging techniques and forward contracts to manage foreign currency risk [283]. Dividends - The company paid total quarterly cash dividends of $81.9 million in 2025 and anticipates continuing future dividends, subject to Board discretion [256].

Core Insights - Amkor Technology (AMKR) shares have experienced a significant decline of 16.8% from their 52-week high, despite a remarkable 97.4% increase over the past six months, outperforming the broader technology sector [1][8] - The company's strong performance is attributed to rising demand for advanced packaging solutions, particularly in AI and high-performance computing, with a focus on the High Density Fan Out (HDFO) platform [2][9] Financial Performance - In Q4, AMKR reported net sales of $1.89 billion, a 16% year-over-year increase, exceeding Zacks Consensus Estimate by 3.35%. EPS reached 69 cents, surpassing expectations by 60.5% [5] - For 2025, AMKR's sales were $6.71 billion, reflecting a 6% year-over-year growth, driven by advancements in computing and automotive sectors [5] Future Projections - For the fiscal first quarter, AMKR anticipates sales between $1.6 billion and $1.7 billion, indicating a potential 25% year-over-year growth at the midpoint. Gross margin is expected to normalize between 12.5% and 13.5% [6] - The company plans to invest $2.5 billion to $3 billion in capital expenditures in 2026, primarily for the Arizona facility and HDFO capacity expansion in Korea [6][9] Competitive Landscape - AMKR faces stiff competition from ASE Technology, which has a larger scale and customer base, as well as from Taiwan Semiconductor and Intel, which are enhancing their own packaging capabilities [11] - The competitive pressure is compounded by AMKR's ambitious capacity expansion plans, which may increase execution risks [11][12] Valuation Concerns - AMKR's forward price-to-earnings ratio stands at 28.15x, above the sector median of 25.17x, raising concerns about valuation as the company enters a capital-intensive phase [12] - The normalization of margins and reliance on timely capacity buildouts and customer program ramps contribute to the perception of a stretched valuation [12] Conclusion - AMKR is positioned for growth in advanced packaging, supported by strong Q4 results and investments in AI-driven computing programs. However, the company must navigate increasing competition and execution risks as it scales its operations [14]

Core Viewpoint - Amkor Technology has announced the pricing of a secondary offering of 10 million shares of common stock by the Kim Family, indicating a significant move in the company's equity structure [1] Group 1 - The secondary offering consists of 10 million shares, which may impact the stock's liquidity and market perception [1] - The shares are being sold by the Kim Family, suggesting a potential shift in their investment strategy or liquidity needs [1] - This offering could provide Amkor with additional capital, although it is primarily a sale by existing shareholders [1]

Core Viewpoint - Investors should closely monitor Amkor Technology, Inc. (AMKR) due to significant movements in the options market, particularly the March 20, 2026 $3 Call which has high implied volatility [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectation of future price movements, with high levels suggesting anticipation of a significant price change or an upcoming event that could lead to a rally or sell-off [2] - High implied volatility in options can attract traders looking to sell premium, as they aim to benefit from the decay of options value if the stock does not move as much as expected [4] Group 2: Analyst Sentiment - Amkor currently holds a Zacks Rank 3 (Hold) in the Electronics – Semiconductors industry, which is in the top 36% of the Zacks Industry Rank [3] - Over the past 60 days, two analysts have raised their earnings estimates for the current quarter, while one has lowered them, resulting in a net increase of the Zacks Consensus Estimate from 19 cents per share to 23 cents [3]

Core View - Amkor expects first quarter GAAP EPS between 18 cents and 28 cents, exceeding the analyst estimate of 21 cents, with revenue projected between $1.6 billion and $1.7 billion, above the $1.53 billion estimate [1] Analyst View - Amkor delivered a beat-and-raise quarter, with most metrics exceeding consensus expectations [2] - The company guided FY26 CapEx to a record level, significantly above Street expectations, indicating management's confidence in long-term advanced packaging growth [2] - Following the earnings call, estimates for FY26 and FY27 were modestly increased [2] Revenue Growth Projections - Revenue is expected to rise by 11% in FY26 and 16% in FY27, driven by cyclical recovery and the ramp-up of 2.5D/HDFO technology, initially in Korea and later in Arizona [3] Technical Analysis - Amkor is trading above key moving averages, indicating a bullish trend, positioned 5.1% above its 20-day SMA, 13.9% above its 50-day SMA, and 73.6% above its 200-day SMA [4] - The RSI is at 61.22, suggesting a neutral but slightly bullish stance, indicating potential for upward movement [5] - Over the past 12 months, Amkor's stock has surged by 113.34%, reflecting strong investor interest and positive sentiment [5] Stock Performance - Amkor's stock is currently trading at 92.2% of its 52-week range, nearing recent highs, indicating a strong uptrend [6] - At the time of publication, Amkor shares were up 0.71% at $54.25, close to its 52-week high of $55.17 [6]

Core Viewpoint - Amkor Technology reported strong financial results for the quarter ended December 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1]. Financial Performance - Revenue for the quarter was $1.89 billion, reflecting a year-over-year increase of 15.9% [1]. - Earnings per share (EPS) for the same period was $0.69, compared to $0.43 a year ago, indicating substantial growth [1]. - The reported revenue surpassed the Zacks Consensus Estimate of $1.83 billion by 3.35% [1]. - The company achieved an EPS surprise of 60.47%, with the consensus EPS estimate being $0.43 [1]. Market Comparison - Over the past month, shares of Amkor Technology have returned -5.6%, while the Zacks S&P 500 composite experienced a -0.2% change [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]. End Market Distribution - Communications (smartphones, tablets) accounted for 49% of revenue, slightly above the two-analyst average estimate of 48.4% [4]. - Consumer markets (AR & gaming, connected home, home electronics, wearables) represented 14%, exceeding the estimated 13.7% [4]. - Automotive, industrial, and other sectors (ADAS, electrification, infotainment, safety) contributed 18%, closely aligning with the average estimate of 18.1% [4]. - Computing (data center, infrastructure, PC/laptop, storage) made up 19%, in line with the two-analyst average estimate of 19.8% [4].

分组1 - Amkor Technology reported quarterly earnings of $0.69 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.43 per share a year ago, resulting in an earnings surprise of +60.47% [1] - The company achieved revenues of $1.89 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.35%, and up from $1.63 billion year-over-year [2] - Amkor Technology has outperformed the S&P 500, gaining about 25% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $1.56 billion, and for the current fiscal year, it is $1.59 on revenues of $7.1 billion [7] - The Electronics - Semiconductors industry, to which Amkor Technology belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Amkor Technology holds a Zacks Rank 1 (Strong Buy), suggesting that the stock is expected to outperform the market in the near future [6]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with EPS at $0.69, outperforming guidance [5][12] - Full year 2025 revenue grew 6% to $6.7 billion, with net income of $374 million and EPS of $1.50 [14][15] - Gross profit for Q4 was $315 million, with a gross margin of 16.7% [13] - Full year gross margin was 14%, impacted by the ramp-up of the Vietnam facility [15] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, with a 1% increase for the full year [12] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, driven by AI-related devices [12] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, supported by advanced automotive content [12] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year [13] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, driven by AI and HPC demand [10][11] - Communications and automotive markets are also projected to see strong growth in 2026 [16] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [8] - Focus on advanced packaging platforms, including HDFO and test, critical for AI and HPC [9] - Construction of the Arizona campus is underway, with significant capital expenditures planned for 2026 [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, positioning the company for growth [5][6] - The outlook for Q1 2026 revenue is between $1.6 billion and $1.7 billion, reflecting a 25% year-on-year increase [16] - The effective tax rate for 2026 is expected to be around 20% [16] Other Important Information - Capital expenditures for 2026 are projected to be between $2.5 billion and $3 billion, with a significant portion for facility expansion [17] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity at $3 billion [16] Q&A Session Summary Question: CapEx guidance and investment changes - Management clarified that the high CapEx guidance includes significant spending for the Arizona facility and equipment for advanced packaging [19][21] Question: Government incentives and CapEx - The CapEx number is net of government incentives, which will come in after the investment periods [24][25] Question: Computing segment growth and data center programs - The computing segment is expected to see a significant ramp in data center HDFO programs, with one program anticipated to reach high volume [27][29] Question: Communication segment outlook - Management noted relative strength in the Android segment and positive expectations for iOS in Q1 [46][48] Question: Partnership with TSMC - The partnership with TSMC is ongoing, focusing on technology and manufacturing needs for the U.S. supply chain [49][50] Question: Balance sheet management and cash needs - The company can operate comfortably with $500 million on the balance sheet and expects a decrease in interest expense despite potential debt increases [58][59]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with full year revenue growing 6% to $6.7 billion [12][14] - EPS for Q4 was $0.69, with net income of $172 million, and full year net income was $374 million, resulting in EPS of $1.50 [14][15] - Gross profit for Q4 was $315 million, with a gross margin of 16.7%, while full year gross profit was $939 million, with a gross margin of 14% [13][15] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, and 1% for the full year, driven by strong demand in iOS [12][14] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, supported by AI-related PC devices [12][14] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, driven by advanced automotive content [12][14] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year [12][14] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, with strong contributions from AI and HPC [10][11] - Communications, computing, and automotive markets are projected to see strong year-on-year growth in Q1 2026 [16] - The automotive market is expected to remain flat in unit sales, but increased semiconductor content per vehicle is anticipated [40] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [8][10] - Focus on advanced packaging platforms, including HDFO and Flip Chip, critical for next-generation AI and HPC [9][10] - Construction of the Arizona campus is underway, with significant capital expenditures planned for facility expansion and advanced packaging capacity [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, emphasizing strong customer engagements [5][11] - The company anticipates a strong start to 2026, with revenue guidance for Q1 between $1.6 billion and $1.7 billion, reflecting a 25% year-on-year increase [16][17] - Management is monitoring export control and trade policies, which are factored into Q1 guidance [11] Other Important Information - Capital expenditures for 2026 are expected to increase to $2.5 billion-$3 billion, with a significant portion allocated for facility expansion [17] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity of $3 billion, a 30% increase from the prior year [16] Q&A Session Summary Question: CapEx guidance and its implications - The CapEx projection includes 65%-70% for facilities, with significant spending on the Arizona project expected to peak in 2026 [19][21] - Customer commitments for HDFO projects are contributing to the high CapEx numbers [20][23] Question: Growth expectations in computing - Computing is expected to show 20% year-on-year growth, with data center HDFO programs anticipated to ramp significantly [27][29] Question: Margin outlook and impacts - Q1 margins are impacted by a one-time asset sale, but the company expects to achieve a 30% incremental flow-through for the full year [41][43] Question: Partnership with TSMC - The partnership with TSMC is ongoing, focusing on technology and manufacturing needs in the U.S., with increasing customer interest [49][51]

Financial Data and Key Metrics Changes - Q4 2025 revenue was $1.89 billion, down 5% sequentially but up 16% year-on-year, with EPS at $0.69, outperforming guidance [11][4] - Full year 2025 revenue grew 6% to $6.7 billion, with gross profit of $939 million and gross margin at 14% [14][13] - Net income for 2025 was $374 million, resulting in EPS of $1.50, with EBITDA at $1.16 billion and EBITDA margin at 17.3% [14][13] Business Line Data and Key Metrics Changes - Communications revenue grew 28% year-on-year in Q4, with a 1% increase for the full year, driven by iOS demand [11] - Computing revenue increased 6% year-on-year in Q4 and 16% for the full year, supported by AI-related PC devices [11] - Automotive and industrial revenue rose 25% year-on-year in Q4 and 8% for the full year, driven by advanced automotive content [11] - Consumer revenue declined 10% year-on-year in Q4 but grew 9% for the full year, reflecting product lifecycle impacts [12] Market Data and Key Metrics Changes - The computing segment is expected to grow over 20% in 2026, with strong contributions from AI and HPC [10] - Communications, computing, and automotive markets are projected to see strong year-on-year growth in Q1 2026 [15] - The automotive market is gradually recovering, with mainstream automotive showing three consecutive quarters of growth [11] Company Strategy and Development Direction - The company aims to elevate technology leadership, expand geographic footprint, and enhance strategic partnerships [6] - Focus on advanced packaging platforms, including HDFO and test, critical for AI and high-performance computing [6] - Construction of the Arizona campus is underway, with significant investments planned for 2026 [10][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market shifts and geopolitical challenges, emphasizing strong execution [4] - The company anticipates continued growth in advanced packaging and computing, with a focus on margin improvement [9] - Management highlighted the importance of customer commitments and partnerships in supporting capacity investments [21][30] Other Important Information - Capital expenditures for 2025 were $905 million, with expectations for 2026 CapEx to increase to $2.5 billion-$3 billion [14][15] - The company held $2 billion in cash and short-term investments at year-end, with total liquidity at $3 billion [15] Q&A Session Summary Question: CapEx guidance and investment changes - Management clarified that the high CapEx guidance includes significant spending for facilities and equipment, with a focus on supporting advanced packaging growth [18][19] Question: Government incentives and CapEx - Management indicated that government incentives would come in on a lag, with minimal offsets in the 2026 guidance [24] Question: Computing segment growth and data center programs - Management expects data center HDFO programs to ramp significantly, contributing meaningfully to revenue [26][28] Question: Communication segment outlook - Management noted relative strength in iOS and a stable outlook for Android, with expectations for premium tier benefits [44] Question: Partnership with TSMC and CapEx impact - Management confirmed ongoing discussions with TSMC regarding U.S. manufacturing and emphasized strong customer interest in the Arizona project [45][48] Question: Balance sheet management and cash needs - Management stated that the company can operate comfortably with $500 million on the balance sheet and expects a decrease in interest expense despite potential debt increases [54]