Delta Electronics Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = NT$4.94t | Revenue (TTM) = NT$654.54b
Market Cap = NT$4.94t | Estimated Revenue = NT$791.09b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = NT$4.82t | Revenue (TTM) = NT$654.54b
Enterprise Value = NT$4.82t | Forward Revenue = NT$791.09b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🧮 Calculation
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🧮 Calculation
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🧮 Calculation
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🧮 Calculation
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Delta Electronics Stock Analysis
Analyst Opinions
28 Analysts have issued a Delta Electronics forecast:
Analyst Opinions
28 Analysts have issued a Delta Electronics forecast:
Delta Electronics Events
Past Events
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FEB
26
Q4 2025 Earnings Call
7 months ago
|
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OCT
30
Q3 2025 Earnings Call
11 months ago
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StocksGuide Free
Delta Electronics — Q4 2025 Earnings Call
1. Management Discussion
Hello, everyone. Welcome to the first earnings conference of this year. And before we officially start our -- I mean, today's conference, I would like to say Happy New Year to everyone. So now we will have our IR, Rodney, to report the financial numbers for the -- for Q4 and 2025.
So as usual, we have announced our financial numbers yesterday, and we also uploaded our financial reports -- financial report yesterday. So if you need more details, you can actually find the financial report on our website.
So our Q4 revenue reached TWD 161.6 billion, marking a record high for a single quarter. This represents a 42% year-over-year growth and an 8% sequential increase, mainly driven by strong data center demand.
So this sequential increase was actually above normal seasonality. But just because in terms of the contributions from the data center business has been increasing, I mean, for the last couple of quarters. So the normal seasonality has become a little bit different, I mean, from -- it was -- from it was before.
So in terms of the GP margin, gross profit in Q4 was TWD 55.9 billion, up 59% year-over-year and 7% quarter-over-quarter, marking a new all-time high. GP margin in Q4 was 34.6% versus 30.8% a year ago and 34.9% in Q3. Year-over-year, R&D and SG&A expenses increased 17% and 24%, respectively, leading OpEx up 21%, with profit surging 147%.
Sequentially, OpEx rose 7%, reflecting 2% and 11% increases in R&D and SG&A expenses, respectively, with profit growing 6%. As a percentage of sales, R&D expenses declined to 8.1% this quarter compared with 9.8% a year ago and 8.5% last quarter. SG&A expenses were 10.2% versus 11.6% a year ago and 9.9% in the previous quarter.
So benefiting from improved economies of scale, OpEx ratio in Q4 dropped to 18.3% from 21.4% a year ago and 18.4% last quarter. Operating profit was up 147% year-over-year and 6% sequentially, bringing our Q4 operating margin to 16.3% compared with 9.4% a year ago and 16.5% in Q3.
So in terms of the segmentation performance, Infrastructure delivered the strongest growth with revenues up 94% year-over-year and 12% quarter-over-quarter. Power Electronics also posted solid growth, while Automation recorded modest but improving momentum. In contrast, mobility remained under pressure with sales down 31% year-on-year and 15% quarter-over-quarter.
From a profitability standpoint, Infrastructure delivered the strongest performance with profit up 287% year-over-year and 25% quarter-over-quarter. Power Electronics also posted solid growth, rising 93% year-over-year and 1% quarter-over-quarter.
In contrast, mobility and Automation saw year-over-year profit declines of 27% and 83%, respectively. Quarter-over-quarter, mobility recorded a profit drop, while Automation swung to a profit. So now operating income was negative TWD 800 million in Q4 compared with negative TWD 900 million a year ago and positive TWD 2.2 billion in Q3. The negative income in Q4 was mainly due to the write-offs after a careful review of the assets at year-end. So in Q4, we had TWD 25.6 billion profit before tax. And then our Q4 EBITDA was TWD 32.7 billion, up 92% year-over-year and down 7% quarter-over-quarter.
Q4 tax expense was about TWD 6 billion. The effective tax rate was 23.4% and net profit after tax was about TWD 17.3 billion. So the Q4 EPS was TWD 6.67. So now let's have a look at the full year cumulative results. So the revenue was TWD 554.9 billion in 2025, up 32% year-over-year. Gross margin was up 9 -- sorry, 39% year-over-year with a GP margin of 34.3% versus 32.4% a year ago.
So on a year-over-year basis, R&D expenses, I mean, increased 17%. SG&A rose 21% and OpEx grew 19%. Operating profit increased 76% year-over-year. By segment, Infrastructure delivered the strongest performance with sales up 82% year-over-year and profit surging 413%. Power Electronics also posted solid growth with sales up 25% and profit up 37% year-over-year.
Automation saw modest revenue growth, while profit declined 39%. Mobility remained under pressure, while -- with sales down 16% year-over-year and profit turned to a loss.
So in 2025, we had about TWD 3.9 billion, I mean, nonoperating profit. In total, we had TWD 87.9 billion pretax income and EBITDA was TWD 117.9 billion. So tax expense was about TWD 19.9 billion, representing an effective tax rate of 22.7%. As a result, net profit after tax was TWD 60.1 billion and translating this number into EPS.
EPS was TWD 23.14. And yesterday, I mean, we -- during the Board meeting, we actually proposed a cash dividend for this year, which was TWD 11.6 per share. So now we are open to the Q&A session.
2. Question Answer
So I have 2 questions. So for the first question, I would like to know, would you have any guidance on the OpEx increase of this year? And then also, do you have any guidance for the CapEx for this year as well?
So for the OpEx increase, this year, I think the OpEx will continue to increase. So first of all, because we continue to have a lot of innovations and R&D need to be invested because we have, I mean, many new -- sorry, we have many new products. So we continue to need to invest a lot into the R&D and innovations of our products.
And secondly, because we -- okay. So for -- sorry, for the expenses, because we continue to -- we actually are expanding our service team in other regions because we are -- our solution business -- our solutions businesses have been increasing, I mean, within the company. So we need to have more sales force and more FAEs and so on and so forth to serve our clients in different regions.
So that is also part of the reasons we actually expect an increase, I mean, of the OpEx this year. And speaking of the -- okay. Speaking of the CapEx, I think the CapEx this year is probably going to be slightly higher than the CapEx of 2025.
Okay. So the next question is related to the GP margin in Q4. So could you please give us more, I mean, colors on your GP margin in Q4?
So because the GP margin in Q4 was actually softer compared to the third quarter. So my answer to that question is, I think because our GP margin is very much subject to the overall mix -- product mix of the companies. So there are actually -- because we have, I mean, very diversified and many different product lines. So the GP margin is always going to be a little bit lumpy.
But I think our GP margin currently, as I always said, I think it's actually quite healthy. I mean, it's at a quite healthy level, but we just can't really guarantee that we will always continue to, I mean, to achieve, I mean, the new record high of GP margin.
So I think that is actually our expectation -- a healthy expectation for the GP margin.
So yesterday, according to the financial report, I actually noticed that you actually mentioned -- I mean you actually mentioned asset, the write-offs of some of your assets on your financial reports. So can I say -- is this kind of write-offs is actually one-off or we will continue to see this kind of write-offs going forward.
So I think that is actually kind of a regular practice at the year-end of every year, I can't really say that we will -- I mean, actually expect to see such I mean, write-offs every year. But we always take this cautious and conservative approach to review our assets at year-end. So that is basically like that.
So next question, what percentage of total revenue does liquid cooling represent currently? And what level could it reach in 2026?
So in 2025, I think liquid cooling-related revenue accounts for approximately 9% of our total revenue with the majority coming from system-level solutions. But we are not in a position to provide guidance for 2026. Particularly, in terms of mix, given the diversified nature of our business and multiple variables involved.
That said, with the continued expansion of AI data centers, I think our AI-related businesses, including the liquid cooling business and our power-related businesses or the liquid cooling market is actually experiencing a strong growth momentum. And so we see significant opportunities ahead.
So I think in terms of the AI investment, actually, the main demand driver for the AI deployment is actually still mainly coming from the major hyperscalers, especially in the U.S. So if you look at the numbers and the investment, I mean, the CapEx numbers they have announced. So for this year, supposedly, their investment -- the absolute number of their investments are actually not less than the previous year.
So of course, the CapEx investment is one thing, but there are always some other bottlenecks or uncertainties. For example, the lack of labors and the lack of the materials. So we can be totally sure about the pace of the deployment of their investments. But still, given that -- given the commitment from those major CSPs, the commitment into the AI investment from those major CSPs, so we remain actually cautious optimistic about the demand for this year. So although there might be some uncertainties and/or maybe just some ups and downs in this long-term AI cycle, but for the long run, we do believe that it is just a very early stage of this -- the new era of AI. So we remain pretty optimistic for the long-term opportunity.
So the next question is related to the potential bottleneck in terms of the power outage in the U.S. So I know that -- actually, Delta has always been very ambitious in terms of your opportunities in the energy infrastructure business. So can you tell us more about your plans or your opportunities in this space?
So I think that is actually a universal issue in many different countries and for many different types of our customers. We do have this ambition to address this issue, but -- and actually, the architecture change in the -- the power architecture change in the data center is also somewhat related to this power efficiency issue. So we will continue to work on this and let's see then what we can achieve.
So in terms of the outlook for this year, can you please give us some updates or just more colors for this -- for main segments?
So I think as we -- as our Chairman just mentioned, this year, I think the main growth driver will continue to be the AI data centers. So we actually expect to see a pretty healthy or solid growth momentum for our Power Electronics and our Infrastructure business.
And even though -- and I'm speaking of the Mobility business, even though I think the market has been actually experiencing a pretty struggling and pretty challenging period. But still, in the long run, we still believe this -- the EV, it's actually one of the key to address the carbon emission issues. So we will continue to stay in this market. But just in terms of the clientele, I think we -- actually, as everybody knows that in terms of the customers, we actually had or have -- still have like much more customers. There are the European OEMs or the American OEMs.
But as everybody knows that the Chinese OEMs they actually have been really, really dominant in the global market. So we will continue to try to approach the Chinese OEMs. And hopefully, our exposure to the Chinese OEM customers can continue to increase going forward.
And then speaking of the Automation business, as we just reported last year, we actually had a very modest growth for Automation segment. But still, we can really say that -- I can really say that we have already seen very clear signs of recovery in the China market. So the only thing I can say is the market is probably, has already been bottoming out a little bit, but still not a very strong signs of recovery yet. So hopefully, of course, we do hope to see the growth for this year can accelerate. But that is something actually out of our control.
So the first question is actually related to the capacity. So in terms of the capacity issue, I think we still have actually pretty tight capacity in order to fulfill the customers' demand. So last year, actually at the year-end of last year, we had 3 new factories in Thailand, Three of our new factories in Thailand have been going online at the year-end of last year. And then we continue to have some new capacity plans for other regions.
So not just -- I mean, not just Thailand. Actually, this year, we even visited Mexico. But still, we are still in the process of evaluating whether the environment, the overall environment in Mexico is suitable for us to further expand our capacity in the America regions.
So the next question is related to what is the time line and shipment scale for power racks? Could this become the next growth driver?
So actually assuming no major disruptions, we expect to see initial shipments of power racks this year. However, the actual contribution will depend on customer demand and broader supply chain coordination. So visibility remains limited. Conceptually, power racks integrate additional components such as relays, breakers, cabling, PDU, ADS, BBU, PCS and even liquid cooling systems, which meaningfully expand the addressable revenue opportunity for us.
So I want to circle back a little bit to the -- to your opportunities in the energy infrastructure market. So I know that you have this hydrogen energy business, which aims to address this power insufficiency issue. So do you have any other like plans? Or do you have any other new product lines, which might actually help with this power insufficiency issue in the background of increasing power usage due to the AI deployment.
So I think we just actually briefly mentioned that the new architecture in the data center, which is actually refers to this 800-volt DC is actually part of the solutions to solve this energy issue. Because in terms of this new power architecture, actually, the AI data centers all have been -- they are all using a lot of energy and electricity. So something that we can actually do to help with the situation or issue is we help our customers to try to save as much as energy as possible by saving or reducing the energy loss during this energy conversion process. So that is actually one way that we help with this energy or electricity insufficiency issue.
And the other one is actually the one you just mentioned, which is related to our hydrogen energy business. So as we previously explained in our earnings conference. This hydrogen energy actually compared to the traditional power -- discrete power generation solutions, actually, in terms of the power conversion efficiency is maybe higher, much higher than the traditional solution. So it can up to maybe 65% conversion efficiency for this hydrogen energy.
But in terms of the contribution or the shipment, I think we are actually expecting to have some very initial shipment at the end of this year. But if we want to see like more -- slightly maybe more meaningful contribution from this hydrogen energy business, we may need to wait until maybe next year or even maybe for the longer run.
So you just mentioned that you already have some clients, they are testing your products. They're testing your fuel cell products currently. So what kind of customers they are. Are they like the CSPs or other types of customers?
For the hydrogen energy fuel cells, actually, the clients currently, they are the utility companies instead of the CSPs. So I think there is still for the CSP clients, penetrating into the CSP clients. I think still, it's still going to take some time to penetrate into the CSP clients.
So the next question is, can you please give us some maybe breakdown or split in terms of your power products for maybe GPU servers or maybe like ASIC servers.
Actually, we don't really have the -- we don't really provide the details for this kind of split. And actually, we provide a lot of different products, including our AC products, AC powers and DC converters for different type of data center clients. So it's actually not that simple to really separate different type of our products for different type of the platforms or for different customers.
Speaking of our DC/DC converter business, we actually do not comment on specific customer programs. However, given the expected meaningful increase in the market demand, we actually remain cautiously optimistic about our overall DC/DC business this year. Generally speaking, the whole industry or the whole architecture is still in the stage of -- is still evolving. So just like many Silicon Valley guys are talking about, maybe we can actually put our -- we actually set up or set up the data centers in the space.
So I think there might be some advantages of, if you try to put the data centers or set up the data centers in the space. But there is still some other problems that you have to solve. For example, in terms of the cooling, how do you plan to cool down the equipment. If you put those equipment or data center equipment in the space. So there are many different conceptional ideas are being raised in this stage, especially, during the innovation of technology.
So the only thing I can say is we actually must continue to innovate in line with market trends and customer needs in order to sustain our competitiveness.
So my next question is actually, can you please give us maybe some rough breakdown or split between your AI servers and your traditional servers.
No, we think that actually it's not easy to separate AI server revenues -- AI server power revenues and traditional server power revenues.
So can you give us maybe some guidance for the Q1 seasonality because traditionally, we all know about the first quarter, historically should be the lowest season for the whole year. But just because, I mean, the product mix, the business mix has been changed over the years -- over the quarters. So can you please maybe just give us some ideas or some clues about the first quarter seasonality. And the second question is related to the high-voltage DC. As I recall that you actually not just have -- you don't just have the 800-volt DC, you also have the plus/minus, 400 volt DC. So can you please tell us the adoption rate by the CSP clients for these 2 different types of high-voltage DC power.
So I think as we -- as Chairman said, different customers actually have different preference for these 2 types of HVDC power. So -- but we do provide both solutions. So it's not a problem for us.
And then speaking of the seasonality because as everybody knows that in the first quarter because there are actually fewer working days in the first quarter because of the Chinese New Year holidays. So theoretically, the second quarter is very likely going to be better than the first quarter given that reason.
And then speaking of the 800 DC and plus/minus 400 volt DC, because in terms of the deployment, in terms of the pace of deployment because they are all based on the needs of our customers, so it's actually hard for us to forecast the pace of their pulling our merchandise. But still, I think, generally speaking, in terms of the sales contributions from this high-voltage DC, I think next year should actually be the main year in terms of we start to see some more meaningful contribution from the power rack business instead of this year.
So my next question is still related to the capacity issue, we just discussed at the beginning of the conference. So because you mentioned that you actually are considering to maybe expand your capacity in Thailand or maybe the U.S. or maybe even Mexico. So if you have any new capacity or new factories in those regions, are they only related to your power products? Or maybe you have plans for both power and liquid or the cooling products as well for those new factories in different regions.
So I think we always plan our capacity. We always plan our capacity based on our long-term plans instead of any short-term needs because it always takes like a few years at the very least, maybe 2 to 3 years to complete the whole construction of new factory. So we can only have some rough estimate. Let's say that we may need -- like we may need more new capacity and then we want those capacity to serve maybe the clients in different regions. So I think -- but there are always some dynamics and always some flexibility in terms of the capacity planning, especially for different type of products.
So we can actually decide which factory for which product later. So we need to just think of think about which region we might want to increase our capacity at this stage. So now we -- I think we can still have like 1 last question before we call it a day.
So the final question, I think, is actually related to whether Delta has any plan on the AI robots.
So I think currently, at this stage, I think we have actually still more industrial robots, which we really have the mass production for these kind of products. But speaking of the AI robot or service robot, we actually just established a robot research center. I think it was last year. So this is actually for the long-term innovation and the long-term plan for this area.
So I think in order to achieve for those so-called service robots to be more reliable and to be more realistic for the actual use, I think it's going to take maybe a few years before that. So I think there are actually some areas or some areas or some problems have to be tackled before we see that really happen. So including the sensor or the sensing technology, including the communication capability and also including the communication between the edge and cloud.
And then also, you need to consider the safety issues if you want to really deploy the service robot in the live environment. So it's not like the factories environment. It's actually much more simple. It's much more simple. So I do believe it's actually going to take some time to achieve that.
So I think, as I said, I think, what we have been seeing now, they are still mainly more for demonstration purpose instead of they can be actually used in the real environment. So that is my perspective.
So okay, thank you for joining our earnings conference today. So I will see you on the next quarter. So thank you.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Delta Electronics — Q4 2025 Earnings Call
📊 Quarter at a Glance
- Revenue: Q4 revenue 161.6B TWD, +42% YoY, +8% QoQ
- GP Margin: 34.6% in Q4 (vs 30.8% YoY; 34.9% Q3); gross profit 55.9B
- Operating Margin: 16.3% in Q4 (vs 9.4% YoY; 16.5% Q3); OpEx up 21% YoY
- Full-year 2025: Revenue 554.9B TWD, +32% YoY; net profit after tax 60.1B; EPS 23.14
- Dividend: Board proposed cash dividend of 11.6 TWD per share
🎯 What Management Says
- R&D & Services: OpEx will rise this year due to ongoing innovation and expanding regional service teams to support the solutions business
- AI Center Focus: AI data-centers remain the main growth driver; CapEx to be slightly higher than 2025; capacity expansion in Thailand and potentially the Americas; focus on Chinese OEM exposure
- Long-term Bets: Hydrogen energy and 800-volt data-center architecture to boost efficiency and growth, with initial hydrogen shipments later this year
🔭 Outlook & Guidance
- OpEx & CapEx trajectory: OpEx to rise further for R&D and regional service expansion; CapEx expected to be slightly higher than 2025
- Growth driver: AI data centers to sustain solid momentum in Power Electronics and Infrastructure; Mobility/Automation for the near term remains challenging
- Risks: CSP investment pace, labor/material bottlenecks, and demand visibility for AI deployment remain uncertainties
❓ Analyst Q&A
- OpEx/CapEx questions: Management confirmed OpEx will rise and CapEx will be higher than 2025, but refused precision guidance, citing ongoing innovation and expansion needs
- Power racks & HVDC: Initial shipments expected this year; contribution depends on customer demand and supply chains; customers show varied preference for 800V DC vs. ±400V DC
- Hydrogen energy timeline: Early shipments by year-end; CSP penetration still longer term; utilities are current test clients
⚡ Bottom Line
Delta delivered a record Q4 with strong data-center demand lifting margins and a 2025 revenue up 32%. The company signals ongoing, disciplined investment in R&D and service expansion to ride AI-focused growth, plus longer-term bets on hydrogen energy and 800V DC efficiency. A meaningful dividend is planned, but near-term profitability depends on AI capex cycles and mix shifts.
Delta Electronics — Q3 2025 Earnings Call
1. Management Discussion
So welcome to our Q3 analyst meeting. So today, we have so many attendance, so many visitors coming to join our 3Q 2025 Analyst Meeting. So as usual, we will have Rodney to report the financial numbers at the beginning, and then we will have the Q&A session.
So as usual, we are going to review the financial numbers of Q3. Q3 revenues reached TWD 150.3 billion, marking a record high quarterly result. This represents a 34% year-on-year growth and a 21% sequential increase. Driven by strong shipments from server powers and liquid cooling systems, Q3 revenue was above normal seasonality. Gross profit in Q3 was TWD 52.4 billion, up 34% year-over-year and 19% quarter-over-quarter, marking a new all-time high. GP margin for Q3 was 34.9%, slightly down from 35.5% in Q2 and flattish from a year ago.
OpEx in Q3 increased by 21% year-over-year and 9% quarter-over-quarter. With SG&A expenses growing faster than R&D spending, benefited from improved economics of scale, OpEx ratio declined to 18.4% compared to 20.3% a year ago and 20.4% in Q2. R&D expenses as a percentage of revenue stood at 8.5% versus 9.6% a year ago and 9.5% in Q2. SG&A expenses as a percentage of revenues were 9.9% compared to 10.6% a year ago and 10.9% in Q2. Supported by operating leverage. OP margin in Q3 further improved to 16.5%, up from 15.1% in Q2 and 14.6% a year ago, reaching another record high. Operating profit increased by 51% year-over-year and 33% quarter-over-quarter.
Segment-wise, driven by robust data center demand, infrastructure recorded both the strongest year-over-year and quarter-over-quarter revenue growth, followed by Power Electronics. In contrast, Mobility continued to face challenges amid market weakness, while Automation was also affected by broader macro headwinds. From an earnings perspective, all segments except Automation saw varying degrees of sequential improvement. On a year-over-year basis, Infrastructure delivered the strongest profit growth, followed by Power Electronics. On the other hand, Mobility swung to a loss and Automation also came under pressure from the slow economy. So in terms of the non-op, Q3 was TWD 2.2 billion versus TWD 900 million in Q2 and TWD 1.3 billion a year ago.
In Q3, we had TWD 27 billion profit before tax, up 53% year-on-year and 38% quarter-over-quarter. Q3 EBITDA reached 33 -- sorry, TWD 35.4 billion, up 45% year-over-year and 32% quarter-over-quarter, setting another all-time high. So the Q3 tax expense was about TWD 6.1 billion. The effective tax rate in Q3 was 22.5%. Net profit after tax was about TWD 18.6 billion, up 51% year-on-year and 33% Q-on-Q. And Q3 EPS was TWD 7.16, achieving a new historical high.
So now we have a look at accumulated numbers for the first 3 quarters of the year. So the revenue was TWD 393.3 billion in the first 3 quarters, up 28% from a year ago. Gross profit increased by 32% year-over-year with a GP margin of 34.1% compared to 33% in the same period last year. The operating expense in the first 3 quarters was up by 18 -- sorry, 19% year-on-year with SG&A up 20% and R&D up 17%. OpEx ratio dropped to 19.5% from 21% a year ago with the SG&A expense ratio contracting to 10.4% from 11.1% a year ago. And R&D expense ratio decreased to 9.1% from 9.9%. So OP increased by 56% year-on-year and OP margin in the first 3 quarters improved to 14.6% from 20 -- sorry, 12% a year ago.
So for the first 3 quarters, the Infrastructure segment again showed the strongest growth, followed by Power Electronics and a modest 4% increase from Automation. And while the Mobility continued to struggle due to the sluggish demand. And then earnings-wise, both Power Electronics and Infrastructure showed substantial profit improvement while the profits of Automation and Mobility both shank from a year ago.
So for the first 3 quarters, we had about TWD 4.7 billion up slightly higher than a year ago. In terms of the profit before cash, we had TWD 62.2 billion, pre-tax income, up 50% from a year ago. And our EBITDA was TWD 85.2 billion, up 40% from a year ago. The tax expense was around TWD 13.9 billion, representing a 22.4% effective rate and a net profit after tax in the first 3 quarters was TWD 42.8 billion versus TWD 28.1 billion a year ago. So the EPS in the first 3 quarters of the year was TWD 16.47 versus TWD 10.8 a year ago, representing a 53% year-on-year growth.
2. Question Answer
So first of all, a big congrats on your very strong performance for the third quarter. So my first question is related to your -- capacity planning for your liquid cooling and other data center-related businesses? And then can you also please walk us through the company -- the latest progress in the solid-state transformers. And then also the 800 HVDC. How should we think of the sales -- the contributions in 2027? So can you give us a rough idea?
So in terms of the current capacity -- the capacity is actually pretty tight. It's actually pretty tight. So we are actually building many new factories. So by the end of this year, that we may complete some of these factories. And then we may have 3 new factories in Thailand are likely to be, I mean, complete in terms of the construction by the end of this year.
And then in the meanwhile, we also have the discussions with our customers. So for example, for those non-American market orders, customers -- or most customers, they actually agree to -- agree that their products to be made in China. So that is also a pretty helpful and beneficial in terms of our capacity flexibility. But anyway, in terms of the capacity, we continue to expand the capacity because we are seeing pretty strong demand from our customers.
So in terms of the 800 HVDC, I think it's still going to take some time before it become more meaningful to our revenues.
And then in terms of the dollar amount of the CapEx for this year for the -- actually, for the first 3 quarters, it was around TWD 29.7 billion. And for the whole year, I think it's going to be somewhere around TWD 40 billion. And for the next year, I think, in terms of the dollar amount, should be quite similar to this year. But in terms of the compensation of the CapEx, I think for next year, it's going to be more related to the automation -- the factory automation and equipment procurement and setting.
So the next question is related to the gross margin. Could you please give us more color regarding why the GP margin, I mean, in Q3 was lower than Q2?
I think the main reason -- I mean, it's still -- was still related to the inventory reversal and inventory write-down. So the difference between that. So between Q2 and Q3, I think the difference was around like 0.6 percentage point. But generally speaking, the GP margin is still mostly related to the product mix. Despite that, I mean -- despite the fact that we actually saw a pretty strong growth, I mean increase in our revenues in Q3. But mostly, I mean the revenue was driven by the data center related business. And then for that part of the business, in terms of the GP margin inherently is naturally not higher than the component business. So it's still mostly -- I mean, the GP margin is still mostly related to the product mix.
So my next question is also related to the margins. So first, I mean, first of all, related to the GP margin. As you said, the GP margin was mostly related to the product mix. Given that the AI or AI-related or data center-related businesses actually are becoming more and more meaningful within the portfolio. But still, I mean, we saw a higher GP margin in Q2 compared to Q3. So can you give us more colors? Can you give us more colors regarding the margins? And secondly, how should we think of the OpEx rate going forward?
So first of all, I think I already covered the question before. So because the component -- I mean the strong or the rapid growth in our revenues was mainly driven by infrastructure in Q3. But the solution or the Infrastructure System business in terms of the margins is not necessarily higher or is not going to be higher than the component business -- the margin of component business. So I think that is actually the main reason.
And then speaking of the OpEx ratio. So if we are able to continue to accelerate our revenue growth that is likely or it's possible that we will continue to enjoy some operating leverage. And you see the OpEx ratio continue to decline a little bit.
So the first question is related to the tariffs. So in terms of the tariffs, basically, as we are in the ODM business. So theoretically, the tariffs are all on the customer side. But in reality, how we pay for the tariffs, how we really pay the tariffs -- sorry, how the tariffs are really be paid?
It can be negotiable. So for example, sometimes for some orders or customers, the customers they may pay the tariffs directly by themselves. But sometimes, we may pay the tariffs before -- we may pay the tariffs first. And then our customers will pay us back like maybe 1 or 2 months later. And in terms of the tariffs, I think 95% of our revenues or 95% -- more than 95% of our businesses on this FOB basis, which means that it's our customers to pay the tariffs. So that's my answer related to the tariff question.
So for your second question related to the capacity, when I said we actually had a pretty tight capacity. But still, we have some alternative ways to actually to run up our capacity, for example. Actually, most of the equipment in our factories made in-house by Delta. And then also for most of the manufacturing process are assembling projects -- process. So we actually have some flexibility to switch lines or to actually ramp up the capacity in relatively faster pace.
Actually, in reality, for example, that actually always takes -- at least a few years to construct a new plant. So for example, the plant we have today, which was built or started -- which was built like 2 years ago. And then by then, 2 years ago, the capacity was planned for maybe different business. But over time, the business landscape and demand landscape can change. So that's why we always need to have such a flexibility to -- we always need to have this flexibility to switch the production lines maybe from one product line to another.
So as I said, I mean, in order to fulfill the customers demand. So we actually have the discussions with our customers. So for those, non-American market orders, they actually agreed their products to be made in China because in China, we still have pretty much capacity.
And then in India because of the tariffs. So if we are not -- maybe not able to see the further decline in terms of the tariffs in India. So we may not be able to shift our production there. And then in Taiwan, basically, in Taiwan, I think there is some, I mean, natural ceiling in terms of the capacity because of the electricity in terms of the labor and in terms of the lands. And then also in America, in the U.S., we are building some new factories. And then we may also run some more factories in the U.S. to build up new capacity.
So for the third question, which is related to this year and last year's driver for the company. I think if you haven't to notice recent news in the U.S., actually, a data center, very recently just signed a deal with an operator. And this operator is actually a data center infrastructure construction or -- sorry, a building company, which is -- which actually provides or offers data center infrastructure. And then the deal size was around USD 40 billion.
So of course, I mean, the company -- the operator is a private equity. So we couldn't really see its revenues. But still, it means that if data centers are willing to pay such a high multiple to buy a data center infrastructure company, which means that data centers, the data center companies they are still very highly committed to the AI CapEx investment. So given that all those reasons, we do believe that for at least for this fourth quarter or for net -- for the whole next years I think the momentum should be fine.
And for the fourth quarter and first quarter, I think we are quite optimistic. But still the environment changes always change so fast. So we still need to be cautious and be prepared.
[indiscernible]?
So for next question, which is related to whether we are going to have new capacity in Thailand for your liquid cooling solution products? I think, as I said, actually for the non-U.S. orders or non-U.S. products or solutions, it's not just -- they can actually be produced in China because in terms of the components, especially those mechanical parts, the ecosystem as a supply chain is most comprehensive -- it's most comprehensive in China. So that can also kind of ease the capacity tightness a little bit.
So my next question is related to your DC/DC converter business because earlier, you mentioned that this year, the revenues is likely to drop maybe by 25% because of the platform -- because of the site changes. So how should we think of this business going forward?
Have you seen any -- the big customers, they decided to use the DC/DC modules again for their new generation products. For this year, the new generation products, they are still not using the DC/DC modules. But still, I think for -- not just big customers. Actually, for other customers, we have been seeing increasing penetration, increasing our adoption rates from other customers for our DC/DC converters.
So my last question is related to your ESS, energy storage system; and your BPU business. So I think for the large scale, energy storage system, in terms of the application, it's not just for the data centers. But indeed, the -- we have been seeing increasing demand for this energy storage systems. And then in terms of the energy storage systems, there are actually some critical components and critical functions within the energy storage system, including the BMS system and battery management. So because we actually don't make the battery cells, so we will -- we need to carefully select the competitive suppliers.
Speaking of -- for the energy storage, as I said, they are used in many different -- a wide range of different applications. But in terms of SST because I think is still relatively or planting new technology and idea to the customers. So it still takes time to see the penetration rate to run up.
Okay. So for your first question, which is related to the revenue contribution in terms of our server powers and our cooling solutions. So in Q3, our server powers was around like -- sorry, 23% of our total revenues, while the cooling solutions was around 11% of our total revenues.
And the second question is related to -- our customers, they may actually think of to look for some second source for their solutions. But the question is actually, I think they are actually pretty few companies in the market, just like Delta being able to provide total solutions for customers. So how do your customers or how are your customers able to find a second source because given that there are maybe just pretty limited candidates or pretty limited suppliers in the market, being able to provide total solutions?
I think we -- of course, we do always want to provide the total solutions or provide as much as we can to the customers. But still, we already account a big portion of our customers in terms of their orders. If you were the customers, you would definitely think of, okay, I should find a second source. So it's actually pretty nature. And they also want to actually increase the competition among the suppliers. So I think it's definitely -- it's something that is definitely going to happen.
Okay. So my next question is, could you walk us through the motivation and background behind your acquisition of the Japanese company, which you announced yesterday?
Actually, our acquisition of this company is driven by our goal to integrate critical technologies in semiconductor power systems to expand both the depth and the breadth of our offerings in this space. And this Japanese company brings leading RF power expertise with a strong product portfolio and design capabilities.
On the other hand, Delta has strength in global operations, large-scale manufacturing and efficient supply chain management so together, we believe the 2 companies are expected to create strong synergies across both technology and market fronts.
So technically, the companies, this company's RF power and Delta's DC power are highly complementary. Commercially, our combined customer base helps expand product reach and R&D momentum. And the fundamental reason we acquired this company because we believe the RF power is becoming increasingly important in advanced semiconductor process. So that's the reason why we believe that it's actually a good deal for us to make.
So I think -- sorry, Chairman didn't really answer that. What is the estimated sales contribution from the AI-related business next year? So I think it's really hard to say because we actually shared the numbers. I mean we share the percentage sales percentage of the server powers and cooling solutions Q3. So we do hope to see the further increase from the data center-related business. But still, I think there are so many swing factors. So it's really difficult to forecast the percentage.
Okay. So my first question is still related to your CapEx planning -- sorry, capacity planning. So because you actually mentioned in your previous earnings call, you said no matter how high the tariffs are going to be -- are going to be in Thailand, in terms of the overall manufacturing costs, making products in the U.S. is going to be much, much higher than making the products in Thailand in terms of the manufacturing costs. So does that mean that you have actually different thoughts in terms of the U.S. manufacturing?
So I think, as I previously elaborated. I think it's not just about the manufacturing cost in the U.S. is indeed pretty expensive. But also, there are some other factors making the U.S. -- made in U.S. is even more challenging. So for example, the labors are actually one of the key bottlenecks when you think of make the products in the U.S. So there are actually many different factors you need to think of when you consider the capacity planning for your products.
But still, we do continue to expand our capacity in the U.S., but it's not going to run up -- run up very quickly. So I think it's probably going to take maybe 2 years before we see the bigger or meaningful -- more meaningful capacity in the U.S.
So before that, I think we may just brand the factories in the U.S. in order to fulfill the needs of our customers. But still, I don't think the capacity -- the U.S. capacity is going to account for a really big part as a percentage of overall capacity.
So my first question is related to your hydrogen energy. So can you please give us some updates on the hydrogen energy batteries, including your technology deployment, capacity, build-out and the [ TAM ]? And when will you begin to contribute to Delta's revenues and profit?
So Delta's hydrogen energy technologies licensed from the U.K.'s series power and used solid all-size stacks. For example, hydrogen fuel cells can generate electricity, water and heat from oxygen and hydrogen with maybe around 60% efficiency. And with the heat recovery, the overall efficiency can reach up to 85%, which is notably higher than the centralized gas turbine generators at maybe around 40% to 50%.
So because of the energy efficiency in terms of -- is much higher than -- it's much higher than the traditional gas turbine generators. So that is the reason why we acquired this company in the first place. However, as this is a new business, it requires significant resources and time. And within the next 1, 2 years, we do -- we do not expand hydrogen to make a meaningful contribution to Delta's financials.
So the second question is related to your M&A strategy. So I think we actually keep looking for the good targets in the market, either for the new technology or for the market assets. But still, when it comes to the deal, whether or not we are able to close a deal, it's actually subject to many different factors. So for example, I think timing is actually one of the issues or one of the factors because for example, even though we may believe that a company is a really good target to acquire. But if the multiple, the valuation is too high for us. And we are not able to have good return from these investments. So I don't think that we will go on or we will make this deal.
And then sometimes, if the target with really good, for example, technologies, but with very poor financials. So we may also think twice or maybe very likely to decide not to acquire because we don't really want to spend so many years to turn a company around. So there are actually many reasons or manufacturers to consider when it comes to the M&A strategy. But overall, we do keep -- always give an eye in the market, and we do view this M&A as one of our main tools or growth engines to accelerate our growth.
So because everybody is really concerned about the AI. I want to ask the questions. I want to ask a question, which is related to your non-AI business. So can you give us some updates on your Mobility and your Automation business?
I think the Mobility business and Automation business, these 2 businesses have been very challenged this year. With evolving U.S. tariff policies, many manufacturers are in wait-and-see mode on capacity investment. So IA demand remains very weak. However, with lower base growth has recently turned positive, and we hope for further improvement by year-end.
Our Automation division's losses primarily -- were primarily related from the building automation, lacking scale, especially under soft commercial demand in Europe and the U.S., which has widened the losses. And the EV components market also remains depressed.
Outside China, nearly all major OEMs are seeing clear declines in EV sales this year, and many have paused or even stopped new pure EV platform development. So I think having said that, we still remain positive on the long-term EV trend, especially with solid-state battery technology. Once there is a meaningful breakthrough, it could transform the industry. So we will continue to strengthen our technology and operational base.
So what we have been always doing is there are always up cycles and down cycles for different businesses. But for example, in terms of the Automation Business, it's actually a very long-term business. So we do hope to be prepared before the market recover. So that is the whole idea.
So if you don't have any other questions, thank you for joining us today. Thank you.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Delta Electronics — Q3 2025 Earnings Call
📊 Quarter at a Glance
- Revenue: NT$150.3B (+34% YoY, +21% QoQ), record high for a quarter.
- Gross Profit: NT$52.4B (+34% YoY, +19% QoQ); GP margin 34.9% (vs 35.5% in Q2).
- OP Margin: 16.5% (record high); up 51% YoY and 33% QoQ.
- Net Profit / EPS: NT$18.6B (+51% YoY, +33% QoQ); EPS NT$7.16 (new historical high).
- Segment Mix: Infrastructure led growth; Mobility/Automation softer; Server powers ~23% of revenue, cooling ~11% in Q3.
🎯 What Management Says
- Capacity: Capacity remains tight; three new factories in Thailand expected to complete by year end; non‑U.S. orders largely produced in China to alleviate bottlenecks.
- CapEx & Automation: Full-year CapEx around NT$40B; next year similar, with emphasis on factory automation and equipment to boost throughput.
- Strategic Acquisition: Acquisition of a Japanese RF power specialist to broaden RF/DC power offerings, aiming for technology and market synergies.
🔭 Outlook & Guidance
- Momentum: Expect continued Q4 and next-year strength driven by data center AI CapEx, though macro shifts keep guidance cautious.
- CapEx: Year-into-year CapEx around NT$40B, with a similar level anticipated next year, focusing on automation.
- Risks: Tariffs and geographic mix could affect costs; non-U.S. output leaning toward China; U.S. capacity expansion remains gradual.
❓ Analyst Q&A
- Topics: Capacity expansion and geography (Thailand/China/U.S.), margin drivers from product mix and inventory effects, and the pace of AI/data-center-related growth.
- AI & M&A: AI revenue contribution remains uncertain; hydrogen energy timeline is multi-year; M&A is selective with returns in mind.
- Mobility & Automation: Tariff volatility and soft demand weigh on near-term profits, though long-term EV trends are intact.
⚡ Bottom Line
Delta Electronics delivered a strong Q3 with record revenue of NT$150.3 billion and net profit of NT$18.6 billion, led by data center infrastructure demand. Margins remain healthy at about 34.9%, supported by operating leverage. CapEx stays around NT$40 billion this year, with a similar level planned next year as capacity expands. Key risks include tariffs and macro volatility; long‑term AI/data-center momentum supports shareholder value.
Financial data from Delta Electronics
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 654,539 654,539 |
39%
39%
100%
|
|
| - Direct Costs | 421,952 421,952 |
35%
35%
64%
|
|
| Gross Profit | 232,588 232,588 |
49%
49%
36%
|
|
| - Selling and Administrative Expenses | 65,494 65,494 |
31%
31%
10%
|
|
| - Research and Development Expense | 53,110 53,110 |
24%
24%
8%
|
|
| EBITDA | 112,025 112,025 |
84%
84%
17%
|
|
| - Depreciation and Amortization | 3,770 3,770 |
0%
0%
1%
|
|
| EBIT (Operating Income) EBIT | 108,256 108,256 |
89%
89%
17%
|
|
| Net Profit | 81,621 81,621 |
87%
87%
12%
|
|
In millions TWD.
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Company Profile
The company is headquartered in Taipei City, Taipei.
StocksGuide Premium
| Head office | Taiwan |
| CEO | Mr. Cheng |
| Employees | 85,684 |
| Website | www.deltaww.com |


