Third-Quarter Revenue and Profit Climb Together
Passive component maker Yageo (2327) announced its third-quarter results on the 29th, with single-quarter consolidated revenue reaching NT$495.32 hundred million, up 11.4% from the previous quarter and up 49.7% year-on-year, hitting a record single-quarter high and marking 7 consecutive quarters of revenue growth. On the profit side, net profit attributable to parent company owners in the third quarter was NT$119.81 hundred million, up 27.2% QoQ and up 88.5% YoY, with single-quarter EPS of NT$5.83.
Gross Margin at 41% on Product Mix Optimization
Yageo's single-quarter gross margin in the third quarter was 41%, up 2.5 percentage points QoQ and up 4.8 percentage points YoY; operating margin was 29.5%, up 3.1 percentage points QoQ and up 6.6 percentage points YoY. The company said operations strengthened on stronger AI application demand, product mix optimization, and price adjustment benefits. Cumulative consolidated revenue for the first three quarters was NT$1321.54 hundred million, up 36.3% YoY, net profit after tax was NT$294 hundred million, up 74.1% YoY, with cumulative EPS of NT$14.32.
As AI demand remained strong, Yageo's AI-related revenue share has risen to nearly 20%. AI demand drove shipments of multilayer ceramic capacitors 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 rising to 15.3%.
Capacity Expansion of 10% to 15%, Q4 Outlook Remains Stable
To meet demand in the coming quarters and in 2027, Yageo will adopt a strategy of quarter-by-quarter increases and capacity expansion, expecting capacity to rise about 10% to 15% from current levels, with some new capacity expected to come online in the second quarter of 2027 and the rest in mass production in the second half of next year. Looking to the fourth quarter, despite the consumer electronics off-season, driven by AI momentum and a high book-to-bill ratio, capacity utilization will stay above 95%, revenue is expected to grow moderately from the third quarter, with gross margin and operating margin slightly better than the third quarter, leaving full-year revenue and profit with a chance to hit new highs.