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]

Amkor Technology (NasdaqGS:AMKR) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Company ParticipantsBen Reitzes - Managing Director and Head of Technology ResearchCraig Ellis - Director of ResearchJennifer Jue - Head of Investor RelationsKevin Engel - CEOMegan Faust - CFOSteven Fox - Founder and CEOConference Call ParticipantsCharles Shi - Senior AnalystPeter Peng - Equity Research AnalystRandy Abrams - Head of Taiwan Research and Equity Research AnalystSteve Barger - Managing Director and Equity Resea ...

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]