Third-Quarter Revenue and Profit Both Hit Peaks
Passive component maker Yageo (2327) announced third-quarter results on October 29. Benefiting from strong AI application demand, continued product mix optimization and price adjustment effects, quarterly consolidated revenue reached NT$49.532 billion, up 11.4% from the previous quarter and up 49.7% year-on-year, a record quarterly high and 7 consecutive quarters of revenue growth. On the profit side, net profit attributable to owners of the parent company in the third quarter reached NT$11.981 billion, up 27.2% QoQ and 88.5% YoY, with quarterly EPS of 5.83.
41% Gross Margin, First-Three-Quarters EPS of 14.32
Yageo's third-quarter gross margin was 41%, up 2.5 percentage points QoQ and 4.8 percentage points YoY; operating margin was 29.5%, up 3.1 percentage points QoQ and 6.6 percentage points YoY. Cumulative consolidated revenue for the first three quarters reached NT$132.154 billion, up 36.3% year-on-year; cumulative net profit after tax for the first three quarters was NT$29.4 billion, up 74.1% year-on-year, with cumulative EPS of 14.32, showing continued improvement in operating fundamentals.
AI Share Near 20%, MLCC Share Climbs
Yageo said that as AI demand remains strong, AI-related revenue has risen to nearly 20%. Strong AI demand further drove shipments and revenue share of key products such as multilayer ceramic capacitors (MLCC) and tantalum capacitors, with MLCC revenue share rising from 19.1% in the second quarter to 21.5% in the third quarter, and resistor products also growing to 15.3%.
Capacity Expansion of 10% to 15%, Q4 Aims for Moderate Growth
On capacity, Yageo said that to meet strong demand in the coming quarters and into 2027, it will adopt a strategy of quarterly capacity increases and expansion, with future capacity expected to rise about 10% to 15% from current levels. Some new capacity is expected to come online in the second quarter of 2027, with the rest entering mass production in the second half of next year. Looking to the fourth quarter, although traditionally an off-season for consumer electronics, with undiminished AI momentum, a high book-to-bill ratio, and dual engines of standard and specialty products, capacity utilization is expected to stay above 95%, revenue is expected to grow moderately from the third quarter, and gross margin and operating margin are also expected to be slightly better than the third quarter, with full-year revenue and profit both positioned to hit new highs.