·      1Q25 net profit surges 91% on-year, operating profit up 27% on-year

·      AI server revenue in 2Q expected to nearly double on-quarter & on-year

·      Adjusts 2025 outlook to significant growth from strong growth citing forex

·      Hopes more EV opportunities follow Mitsubishi milestone

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14 May 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its first quarter 2025 financial results.

In the first quarter, revenue reached a record high for the period at NT$1.6443 trillion. Net profit attributable to the parent company hit NT$42.1 billion, jumping 91% on year, up by NT$20.1 billion. Earnings per share in the January-March period was NT$3.03. Looking ahead to the second quarter, although a traditionally low season, significant growth can be achieved both on-quarter and on-year, driven by increased demand in the product segments of cloud and networking, and components and others. The full-year outlook is adjusted to significant growth, as revenue conversion into New Taiwan dollars is impacted by exchange rates. However, revenue in US dollars remains unchanged.

In the first quarter of 2025, revenue reached NT$1.6443 trillion, up 24% from a year ago. Gross profit was NT$100.5 billion, rising 20% for the same period, while operating profit at NT$46.5 billion, gained 27%, and net profit (attributable to parent company) totaled NT$42.1 billion, surging 91% at the same time. Gross profit margin, operating profit margin and net profit margin were 6.11%, 2.83% and 2.56%, respectively, compared with 6.32%, 2.78% and 1.66% in the same period last year; both operating profit and net profit margins improved; EPS reached NT$3.03, up by NT$1.44 from NT$1.59 in the same period last year.

The keyword to sum up first quarter performance is without a doubt: “A.I.” Foxconn Chairman Young Liu reiterated the view that 2025 is the first year of AI, saying that the performance of the AI server business is quite impressive, with revenue growing by more than 50% compared to the same period last year, indicating that demand for computing power is still very strong. Whether AI servers or general-purpose servers, shipment performance has improved significantly.

"As our level of automation continues to improve, the production yield is also getting better and better. As I mentioned at the last investor call, the performance of AI servers should be better quarter by quarter," said Chairman Liu. AI server revenue in the second quarter is anticipated to nearly double both on-quarter and on-year. Moreover, we have great confidence in the growth momentum of AI servers this year.

As the AI server business continues to expand, the proportion of the cloud and networking product segment this year will be close to that of the smart consumer electronics product segment, he said. Despite being confronted by the geopolitical impact on the economic and trade environment, Foxconn foresaw four to five years ago that "regional manufacturing" would become a trend and began expanding its manufacturing capabilities into different regions at that time. Deploying agile supply chain management and local production strategies, we now have a solid foothold in 233 sites worldwide.

The Group's global production bases span 24 countries. In addition to Asia as the main base, we have more than 50 sites in the Americas, and more than 10 sites each in Europe and India. We have accumulated many years of local operating experience and abundant human resources in various regions. This layout allows us to respond quickly to customer needs.

Chairman Liu pointed out that in addition to tariffs, geopolitics, and changes in monetary policy around the world that may affect the global economy, and even though current sales forecast have not changed much, the exchange rate may affect revenue after conversion into New Taiwan dollars. Compared to the view in March, the Group is more cautious and is slightly adjusting its outlook to significant growth from strong growth.

Chairman Liu also shared news about the Group’s cooperation with Mitsubishi Motors Corp. In the future, we expect to assist Mitsubishi in selling models we design and develop for Oceania, he said, adding that this hits one of our most important EV milestones: securing orders from traditional automakers. Step by step, the Group is realizing its EV business goals.

He said that we hope this cooperation with Mitsubishi will lead to opportunities to team up with more international automakers in the future, including other traditional Japanese automakers. Meanwhile, MODEL B should officially begin mass production in the second half of this year.

On another front, with batteries being the most critical component in electric vehicles, the Kaohsiung Ho Fa plant already has the capacity for mass production and is providing products to customers for testing. Subsequently, the Group will complement the planning progress of domestic electric bus and commercial vehicle customers to assist in meeting the annual goal of localizing electric vehicles.

In the semiconductor field, Chairman Liu pointed out the Group has technical specifications that are superior to the industry in the field of next-generation SiC MOSFET, which can significantly improve power conversion efficiency and reduce energy waste; mass production is expected in the second half of this year. The acquisition of the Fukuyama wafer plant in Japan also goes toward expanding the Group’s semiconductor footprint.

Subsidiary Foxsemicon Integrated Technology Inc, which is responsible for semiconductor equipment, also earlier disclosed it would acquire FairTech Corp, which will support Foxconn in potential expansion in the aerospace industry. This will also allow the Group to expand into the drone industry, and, futurely by integrating existing industry technologies, to create more applications.

About Foxconn

Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) (TWSE:2317) is the world’s largest electronics manufacturer and leading technological solutions provider, ranking 32nd among the Fortune Global 500. In 2024, revenue totaled TWD6.86 trillion (approx. USD208 billion). The Group’s market share in electronics manufacturing services (EMS) exceeds 40%. The Group operates over 230 campuses across 24 countries and is one of the world’s largest employers with approx. 900,000 employees during peak manufacturing season. The Group has expanded its capabilities into the development of electric vehicles, digital health, and robotics, and three key technologies – next-generation communications technology, AI, and semiconductors – which are key to driving its long-term growth strategy. It is dedicated to championing environmental sustainability in the manufacturing process and serving as a best-practice model for global enterprises. To learn more, visit www.honhai.com