Himax Forecasts Up to 30% Revenue Growth in Q2 2025 on Strong Automotive IC Performance

Mei 16, 2025 Posting Komentar

Insights from the Earnings Call: Himax Technologies (HIMX) First Quarter 2025 Results

Management View

CEO Jordan Wu emphasized that the first-quarter revenues stood at the upper limit of projections at $215.1 million, marking a 3.7% rise compared to last year, driven by robust sales in automotive integrated circuits along with effective cost management. The gross margin remained steady at 30.5%, aligning with forecasts.
Jessica Pan, the CFO, mentioned that the company’s earnings per diluted American Depositary Share (ADS) for the first quarter came out to be $0.114, surpassing expectations thanks to reduced operational costs.
Automotive integrated circuit sales continued to be a primary source of income, accounting for more than half of all revenues. The significant increase from the previous year can be attributed to customers' continuing trust in Himax’s technological solutions.
Non-driver IC revenue fell compared to the previous quarter because there were no one-off deliveries during that time, though they still saw significant support from their automotive timing controller products. Operating costs dropped by 7% sequentially, which was a result of stringent expense management.
Himax declared a yearly cash dividend of $0.37 per ADS, scheduled for payment on July 11, 2025, which equates to an 81.1% distribution rate of the prior year’s earnings.

Outlook

Himax anticipates that their revenues for the second quarter of 2025 will fluctuate within a range from a 5.0% decline to a 30% rise compared to the previous period, with expected gross margins approximately at 31%, contingent upon the specific products sold.
Automotive integrated circuit sales, encompassing both Touch and Display Driver Integration (TDDI) and conventional Dual-Data-Rate Image Compression (DDIC), are expected to drop by approximately 15% compared to the previous period. However, these figures should still see growth due to increasing uptake of TDDI technology and robust design wins currently in progress.
The firm expects greater uptake of OLED technology within the automotive sector and various other markets as new initiatives move into large-scale manufacturing before the end of this year.

Financial Results

In the first quarter, revenues amounted to $215.1 million, consistent with our projections. The gross margin climbed to 30.5%, an increase from 29.3% recorded over the previous year.
The uptake of TDDI technology along with strong design processes fueled expansion within the automotive sector.
The operating income amounted to $19.8 million, which represents 9.2% of total sales. The after-tax profit summed up to $20.0 million, equivalent to $0.114 per diluted American Depositary Share (ADS).
Inventories totaling $129.9 million showed a consistent decrease, indicating attempts to mitigate supply chain uncertainties. The operating cash flow remained positive at $56.0 million.

Q&A

Anonymous Analyst: Can you clarify how the verification process for CPO works? According to President Wu, the verification includes working together with Himax, FOCI, and various industry collaborators to set up both product and process validations. The company anticipates an increase in sample deliveries this year, aiming for full-scale production by 2026.
Analyst: How does the forecast look for automotive IC growth in 2025 according to Wu? Despite poor macroeconomic clarity, he pointed out significant prospects for TDDI and Tcon technologies, bolstered by robust market position and successful design achievements.

Sentiment Analysis

Experts showed guarded enthusiasm regarding Himax’s potential in the automotive industry and consumer products sector, with attention towards broader economic instabilities and trade tariffs' effects.
During their prepared statements, management kept an assured tone, highlighting their position as industry leaders and praising recent tech improvements. However, they also recognized broader economic difficulties and admitted uncertainty regarding the latter part of the year.
During the question-and-answer segment, analysts sought clearer insights into CPO schedules and car market demands, mirroring worries about worldwide economic climates.

Quarter-over-Quarter Comparison

In Q1 2025, the revenue amounted to $215.1 million, indicating a decrease of 9.3% compared to the previous quarter but still showing an increase when measured against the same period last year, consistent with typical seasonal trends.
The gross margin stayed consistent at 30.5%, which reflects a positive shift in product assortment along with effective cost reduction strategies.
The uptake of Automotive TDDI technology kept fueling income increases, compensating for drops in smartphone and tablet IC sales.
The management style stayed uniform, emphasizing strategic expansion into sectors like automotive OLEDs and WiseEye AI technology.

Risks and Concerns

The management recognized how worldwide trade conflicts and broad economic instability affect consumer demand, notably within the automobile sector.
Uncertainty related to tariffs and cautious consumer buying patterns continue to be significant risks.
Himax persists in managing risks via diversified supply chains and cost reduction strategies.

Final Takeaway

In the first quarter of 2025, Himax Technologies showcased remarkable durability by reaching revenues and profits at the upper limit of their forecasts, even amid typical seasonal hurdles. Their core driver of expansion continues to be automotive integrated circuits, bolstered by their dominance in touch display driving interface (TDDI) and timing controller (TCon) innovations. Despite ongoing global economic instability and trading frictions posing difficulties, Himax has strategically emphasized creativity and adaptable supply chains, setting them up favorably for forthcoming development. For the second quarter of 2025, the company anticipates cautiously positive outcomes with an expected sequential rise in revenue potentially hitting as much as 30%, largely thanks to strides made within automotive electronics and organic light-emitting diode (OLED) sectors.

Review the complete earnings call transcript here.

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