＊ 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 Ohio

14 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