Hon Hai Technology Group (Foxconn) Announces Second Quarter 2025 Financial Results
* 2Q25 operating and net profits
set highs, 1H25 net profit surges 52% YoY
* 3Q25 to see significant growth
QoQ and YoY
* In 2H, strong growth drivers
from cloud and networking & smart consumer electronics
* Demand for high performance
computing power a structural, l/t growth trend
* Stronger AI infrastructure
footprint with TECO alliance, revitalization in Ohio14 August 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its
second quarter 2025 financial results.
Second quarter revenue reached NT$1.79 trillion, with
both operating profit and net profit setting record highs for the
second-quarter period; earnings per share was NT$3.19 in the April-June period.
Looking ahead to the third quarter and entering the traditional peak season,
operations should gradually gain momentum. Overall, the third quarter will see
significant growth both on-quarter and on-year. For the full year 2025, the
outlook is unchanged for significant growth, driven by strong demand for AI
servers and stable mass production.
In the second quarter, revenue rose 16% from a year
ago to NT$1.79 trillion; at the same time gross profit was up 14% to NT$113.5
billion; operating profit rose 27% to NT$56.6 billion; and net profit
(attributable to the owners of the parent company) at NT$44.4 billion, also increased
27%. Gross profit margin, operating profit margin and net profit margin were
6.33%, 3.16% and 2.47%, respectively, compared with 6.42%, 2.88% and 2.26% in
the same period last year. EPS reached NT$3.19 in the April-June quarter, up by
NT$0.66 from NT$2.53 a year earlier.
Group Chief Financial Officer David Huang said both
operating profit margin and net profit margin increased in the second quarter
compared to the same period last year. Although the high unit price of AI
server products diluted gross profit margin, the resulting growth momentum
contributed to year-on-year increases of 16% and 14% in revenue and gross
profit, respectively. The increase in gross profit reflects the growth in AI
server shipments and improved operational efficiency, which further boosted
overall profitability and brought the operating profit margin performance in
line with expectations similar to last year.
For the first half of the year, revenue reached NT$3.44
trillion, up 20% from a year earlier. For the January-June period, gross profit
at NT$214.1 billion, rose 17%; operating profit was up 27% to NT$103.1 billion;
and net profit (attributable to the owners of the parent company) jumped 52% to
NT$86.5 billion. Gross profit margin, operating profit margin and net profit
margin were 6.23%, 3.00% and 2.52%, respectively, compared with 6.37%, 2.83%
and 1.98% in the same period last year. EPS reached NT$6.23, up by NT$2.11 from
NT$4.12 for the same period a year ago.
Foxconn’s rotating CEO system, in place for over a
year now, is running on track. In line with the Group's core values of “share,
collaborate and thrive ", the rotating CEO will take part in some of the
company's quarterly investor conference calls. Of the four quarterly calls in a
year, the Chairman will preside over the March and November sessions, reviewing
the past year's achievements and sharing the outlook for the coming year. The
rotating CEO will preside over the May and August sessions. Kathy Yang, the
current rotating CEO, participated in Foxconn's investor conference call for
the first time Thursday.
Yang stated with the arrival of traditional peak
operating season for the Group, third quarter will see significant growth
compared to the second quarter. Of the four primary product segments, the
operational drivers in the second half of the year will come from cloud and
networking, contributing the most, and smart consumer electronics, which will
also see strong growth. As for the full-year outlook, the Group maintains its
forecast for significant growth, but remains vigilant regarding changes in geopolitics,
tariffs, and global exchange rates.
Regarding AI server business, Yang affirmed its
“sustained strength”, saying that in the second quarter of this year, the
Group's AI server business continued to perform strongly, turning in an annual
growth rate of more than 60%, fully demonstrating the rapid growth of AI
computing demand and industry momentum.
Looking ahead to the third quarter, Yang said, AI
server revenue is expected to increase more than 170% year-over-year, with rack
shipments growing threefold quarter-over-quarter, reflecting continued strong
demand from customers and stable production optimization.
Based on current market demand, annual AI
server-related revenue will exceed a trillion New Taiwan dollars. In terms of
market share, Foxconn has always been a co-development partner in new products
with major customers, ensuring that we can participate in next generation upon
next generation of product development. At every stage of these customers’
important products, we will not be absent. Moreover, every iteration of AI
server racks, whether it is a GPU solution or an ASIC solution, provides
Foxconn with opportunities to acquire new customers and new orders. As a
result, Yang said she also expects Foxconn's market share in AI servers to
increase.
Looking at the ongoing capex expansion for AI
services by several major global CSP clients, market signals confirm AI is not
a temporary fad, but a true industrial revolution and a structural, long-term
growth trend. Market demand for high-performance computing power should
continue to rise. Foxconn’s goal is clear: In this AI wave, we help customers
seize this rapidly growing opportunity.
The company will also continue to expand AI server
production capacity and vertical integration. Capital expenditures reached
NT$79.8 billion in the first half of this year, representing an on-year growth
of 25%, maintaining our target for annual growth exceeding 20%.
Regarding the recently announced strategic alliance
with TECO Electric & Machinery Co and, separately, the Foxconn Ohio asset
disposal, the company stated that to further strengthen its AI infrastructure
footprint, the former leverages each company's strengths and complements their
resources, accelerating the development of a more comprehensive and competitive
modular data center (MDC) one-stop solution. In the latter, as a response to
the rapidly growing demand for AI computing power in the US market, Foxconn
will revitalize its Ohio site to manufacture cloud and networking products,
making this an important investment to further strengthen our position in the
global AI industry.
Pulling together the Group's three strategic
platforms – Smart Manufacturing, Smart EV and Smart City – Yang stated that
Foxconn will leverage the Group's "AI Factory" to train large-scale
AI models and deploy them in various fields. It will also integrate the AI
platform and Agent Store to form a complete ecosystem, allowing the value of AI
to continue to spread within the Group.
Meanwhile, progress is on schedule regarding Japan’s
Mitsubishi Motors and, separately, EV business regarding North America.
Regarding key components, the Group’s Hefa electric battery plant has fully
entered mass production stage and is gradually supplying to electric bus and
commercial vehicle customers. Before the end of the third quarter of this year,
monthly battery cell production capacity is expected to reach 25,000 units,
driven by customer demand. The company also said the MODEL B crossover EV has entered
the final stage of launch preparations, while the North American variant of the
MODEL C, an electric SUV, is also undergoing certification.
Amid attention on Foxconn's development in the
robotics industry, Yang said the Group has been working closely with NVIDIA,
especially in the development of humanoid robot brains. The two sides are
jointly training multi-skill AI models and will deploy various types of
humanoid robots in factory applications.
Lastly, Foxconn’s showroom in Neihu is complete and
constantly innovating. Book a visit! Looking ahead, on November 21-22, Hon Hai
Tech Day 2025, Foxconn’s annual flagship technology conference, kicks off at
the Taipei Nangang Exhibition Center. The focus will be on the deep integration
of the three major smart platforms with AI technology, while showcasing our
latest achievements in AI Factory, robotics, FoxBrain and more. Stay tuned!
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 28th 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 – artificial intelligence,
semiconductors and next-generation communications technology. Pulling it
together with its three intelligent platforms – Smart Manufacturing, Smart EV,
Smart City – the “3+3+3” strategy is key to driving the Group’s long-term
growth. Foxconn 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
2025/08/14