Honda Motor (NYSE:HMC) Q3 2026 Earnings call February 10, 2026 03:00 AM ET Company ParticipantsEiji Fujimura - Director and Managing Executive OfficerNoriya Kaihara - Director, EVP and Representative Executive OfficerNone - Translator 1None - Translator 2Conference Call ParticipantsNone - AnalystNoneI thank you very much for taking time out of your busy schedule to attend our briefing today. We would now like to start Honda Motor Co., Ltd.'s financial results briefing for the third quarter of fiscal year en ...

Financial Data and Key Metrics Changes - In Q3 2025, consolidated revenue was NT$59.13 billion, with a gross margin of 29.8% and net income attributable to stockholders of NT$14.98 billion, resulting in earnings per share of NT$1.2 [4][5] - Revenue increased slightly by 0.02% compared to the previous quarter, primarily due to higher wafer shipments, despite a 3% unfavorable impact from the NT dollar exchange rate [5] - Year-over-year, revenue for the first three quarters grew by 2.2% to NT$175.7 billion, while net income per share decreased from NT$3.12 in 2024 to NT$2.54 in 2025 [5][6] Business Line Data and Key Metrics Changes - The communication and computer segments saw an increase in sales mix, while the consumer segment declined by nearly 4 percentage points to 29% in Q3 2025 [7] - The 22-nanometer and 28-nanometer technology nodes remained the main focus, with their combined revenue reaching about 35% [7] - The capacity utilization rate improved to 78%, with wafer shipments reaching 1 million 12-inch equivalent wafers [4][9] Market Data and Key Metrics Changes - North America accounted for approximately 25% of total revenue in Q3 2025, up from 20% in the previous quarter, while Asia's share declined to 63% [7] - The company anticipates continued demand growth across most market segments, particularly in smartphones and notebooks [9] Company Strategy and Development Direction - UMC is focusing on differentiated specialty technologies, with the 22-nanometer technology platform expected to contribute significantly to revenue growth in 2026 [9][10] - The company plans to maintain a balanced capacity split between Taiwan and overseas locations to enhance supply chain resilience [29] - UMC is preparing for advanced packaging solutions to meet the growing demand in AI and HPC markets, with a focus on deep trench capacitor technology [44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the business outlook for 2026, expecting continued growth driven by 22-nanometer and specialty process technologies [15][16] - The geopolitical landscape and potential tariffs were acknowledged as risks, but management emphasized a focus on technology differentiation and customer trust [28][29] - The company expects wafer shipments to remain flat in Q4 2025, with gross margins projected to be in the high 20% range [10][21] Other Important Information - Annual capital expenditures are projected to reach NT$1.8 billion, with 90% allocated to 12-inch and 8-inch technologies [8] - Cash reserves remain above NT$100 billion, and total equity is NT$361 billion at the end of Q3 2025 [6] Q&A Session Summary Question: Near-term outlook and end market trends - Management indicated that Q4 wafer shipments are expected to grow in the low teens, supported by differentiated technology and strong demand recovery [14][15] Question: Gross margin expectations - Management expects Q4 gross margins to remain in the high 20% range, influenced by depreciation and product mix [20][21] Question: Geopolitical uncertainties and tariffs - Management acknowledged potential tariff impacts but emphasized a focus on maintaining competitive positioning through geographic diversification [28][29] Question: Pricing trends for 22 and 28-nanometer technologies - Management stated that pricing strategies remain consistent, with expectations for firm pricing in the upcoming year [61][62] Question: Update on U.S. collaboration and 12-nanometer technology - The collaboration with Intel is progressing well, with early product takeout expected in 2027 [77][87] Question: Advanced packaging and market opportunities - UMC is developing advanced packaging solutions, including deep trench capacitors, to address future market demands [44][92]