Financial Performance - Fourth quarter revenue for 2025 was $391.6 million, a 15.4% increase year-over-year, and the full year revenue grew by 13%[3][4] - GAAP gross profit for the fourth quarter was $121.9 million, with a gross profit margin of 31.1%, compared to 32.7% in the fourth quarter of 2024[4][6] - GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, up from $8.2 million, or $0.18 per diluted share, in the same quarter last year[8][9] - Non-GAAP adjusted net income was $15.7 million, or $0.34 per diluted share, compared to $12.5 million, or $0.27 per diluted share, in the fourth quarter of 2024[9][10] - EBITDA for the fourth quarter was $41.9 million, representing 10.7% of revenue, down from 12.0% in the fourth quarter of 2024[12] - Net sales for Q4 2025 reached $391.578 million, a 15.4% increase from $339.298 million in Q4 2024[24] - Gross profit for Q4 2025 was $121.930 million, up 10.3% from $110.884 million in Q4 2024[24] - Net income attributable to common stockholders for Q4 2025 was $10.202 million, a 23.8% increase from $8.241 million in Q4 2024[24] - Non-GAAP adjusted net income for Q4 2025 was $15.678 million, compared to $12.465 million in Q4 2024, representing a 25.5% increase[25] - Diluted earnings per share (EPS) for Q4 2025 was $0.22, up from $0.18 in Q4 2024, marking a 22.2% increase[24] - For the twelve months ended December 31, 2025, net income was $66.141 million, a 50.3% increase from $44.024 million in 2024[28] - Non-GAAP diluted EPS for the twelve months ended December 31, 2025 was $1.22, compared to $1.31 in 2024, reflecting a decrease of 6.9%[28] Operational Metrics - Cash flow from operations for the fourth quarter was $38.1 million, with free cash flow totaling $12.4 million, including $25.7 million in capital expenditures[13] - Free cash flow (FCF) for Q4 2025 was $12.4 million, indicating the cash generated after capital expenditures[42] - Total operating expenses for Q4 2025 were $108.725 million, an increase from $98.967 million in Q4 2024, indicating a rise of 9.8%[24] - GAAP operating expenses for the fourth quarter were $108.7 million, or 27.8% of revenue, compared to 29.2% in the fourth quarter of 2024[7] - Research and development expenses increased to $41.150 million in Q4 2025, compared to $33.207 million in Q4 2024, reflecting a 23.9% rise[24] Market Insights - The automotive market saw a 25% increase in revenue for the full year, contributing significantly to overall growth[3] - The company expects first quarter 2026 revenue to be approximately $395 million, a 19% increase year-over-year, with a GAAP gross margin of 31.5%[16] Balance Sheet Highlights - The company had approximately $382 million in cash and cash equivalents as of December 31, 2025[14] - Total assets as of December 31, 2025, were $2.448 billion, an increase from $2.386 billion as of December 31, 2024[47] - Cash and cash equivalents increased to $367.212 million in 2025 from $308.671 million in 2024, showing a growth of approximately 19%[47] - Total stockholders' equity rose to $1.878 billion in 2025, compared to $1.795 billion in 2024, marking an increase of about 4.6%[47] - Long-term debt increased to $24.224 million in 2025 from $19.563 million in 2024, indicating a rise of approximately 23.5%[47] - Accounts receivable decreased to $307.055 million in 2025 from $325.517 million in 2024, a decline of about 5.7%[47] - Inventories slightly decreased to $471.546 million in 2025 from $474.948 million in 2024, a reduction of approximately 0.7%[47] Other Financial Metrics - The company recorded a gain of $13.730 million from the disposal of a subsidiary during the twelve months ended December 31, 2025[28] - The company reported a net interest expense of $5.680 million for Q4 2025, compared to $4.426 million in Q4 2024, reflecting an increase of approximately 28.3%[45] - EBITDA for Q4 2025 was $41.943 million, compared to $40.746 million in Q4 2024, reflecting a year-over-year increase of approximately 2.9%[45] - Net income for Q4 2025 was $10.202 million, up from $8.241 million in Q4 2024, representing a growth of approximately 24%[45]

Group 1 - Diodes' stock surged by 27.4% following the release of its strong Q4 results, which exceeded Wall Street forecasts for both sales and earnings [1][2] - The company reported non-GAAP earnings per share of $0.34 on sales of $391.58 million, surpassing analyst estimates of $0.27 and $380.03 million respectively. Year-over-year, adjusted earnings per share increased by approximately 26%, while revenue grew by about 15% [2] - The growth in demand for AI servers contributed to a 25% year-over-year increase in the computing business, alongside double-digit sales growth in the automotive and industrial sectors [2] Group 2 - For Q1, Diodes is targeting revenue of around $395 million, indicating a year-over-year growth of approximately 19%, with a gross margin expectation of about 31.5% [3] - Management has set ambitious three-year targets, aiming for $2 billion in annual revenue by the end of the forecast period, up from $1.48 billion last year. They also expect gross margins to exceed 35%, an increase from 31% last year [4]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

分组1 - Diodes reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +30.77% [1] - The company achieved revenues of $391.58 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.02%, and up from $339.3 million year-over-year [2] - Diodes has outperformed the S&P 500 with a share price increase of about 23.9% since the beginning of the year, compared to the S&P 500's gain of 1.7% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $378.6 million, and for the current fiscal year, it is $2.42 on revenues of $1.63 billion [7] - The Electronics - Semiconductors industry, to which Diodes belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Fourth quarter revenue grew 15% year-over-year to $391.6 million, with full year revenue increasing 13% to $1.5 billion [5][10] - Gross profit for the fourth quarter was $121.9 million, representing 31.1% of revenue, compared to 32.7% in the prior year quarter [11] - GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, up from $8.2 million, or $0.18 per diluted share in the prior year [14][15] - Free cash flow increased to $137.2 million for the full year, up from $46.4 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from the computing market grew 25% for the full year, primarily driven by AI server-related applications [6][30] - Automotive revenue increased 20% for the full year, with a 6% sequential growth in the fourth quarter [27] - Industrial revenue was flat sequentially but increased 13% for the full year [29] - Consumer market revenue was down 5% sequentially but up 8% for the full year [33] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% in the fourth quarter [26] - The automotive and industrial markets combined accounted for 42% of product revenue, a 1% increase from the previous quarter [26] - Channel inventory decreased, indicating a recovery in demand across markets [25] Company Strategy and Development Direction - The company aims to achieve $2.5 billion in revenue and $1 billion in gross profit by focusing on automotive, industrial, and AI server-related applications [8][9] - A three-year interim target of $2 billion in annual revenue with approximately $700 million in gross profit has been introduced [8] - Continued investment in product mix improvements and manufacturing efficiency is prioritized to drive margin expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market demand improving in 2026, particularly in key segments [40] - The company anticipates a strong first quarter 2026 with revenue guidance of approximately $395 million, representing a 19% year-over-year increase [22] - Management highlighted the importance of maintaining a strong backlog and booking ratio, indicating a positive outlook for recovery [56] Other Important Information - The effective income tax rate for the fourth quarter was approximately 14.9%, with an expected rate of 18% for 2026 [14] - Total debt at the end of the fourth quarter was approximately $56 million, with cash and equivalents totaling around $382 million [20] Q&A Session Summary Question: Can you walk us through the targets and how you see getting there? - Management emphasized commitment to achieving long-term goals and highlighted the importance of driving share in key market segments [37] Question: Is the gross margin improvement due to operational efficiencies? - Management confirmed that improvements in cost structure and manufacturing efficiency are contributing to gross margin enhancements [39] Question: Should the interim goal be contemplated for calendar 2028? - Management confirmed that the interim goal is indeed targeted for achievement by 2028 [44] Question: What is the impact of manufacturing services agreements ending this year? - Management indicated that the end of these agreements is expected to positively impact gross profit margins starting next year [48] Question: How is the company addressing potential seasonality from the Lunar holiday? - Management acknowledged the typical impact of the holiday but noted strong backlog and bookings, leading to a positive outlook for Q1 [56]

Financial Data and Key Metrics Changes - Fourth quarter revenue grew 15% year-over-year to $391.6 million, with full year revenue increasing 13% to $1.5 billion [5][10] - Gross profit for the fourth quarter was $121.9 million, representing 31.1% of revenue, down from 32.7% in the prior year quarter [11] - GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, compared to $8.2 million, or $0.18 per diluted share in the prior year [14][15] - Free cash flow for 2025 was $137.2 million, a significant increase from $46.4 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from the automotive market grew 6% sequentially and 20% for the full year, driven by improved inventory and demand [27] - The computing market saw a 25% increase for the full year, primarily due to AI server-related applications [6][30] - Industrial market revenue increased 13% for the full year, with solid momentum across power, sensing, and automation applications [29] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% in the fourth quarter [26] - The automotive and industrial markets combined accounted for 42% of product revenue, a one percentage point increase from the previous quarter [26] Company Strategy and Development Direction - The company aims to achieve $2.5 billion in revenue and $1 billion in gross profit by focusing on automotive, industrial, and AI server-related applications [8][9] - Management emphasized the importance of product mix improvements and cost efficiency to drive margin expansion [9][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market demand improving in 2026, particularly in key segments [41] - The company anticipates a 19% year-over-year revenue growth for the first quarter of 2026, indicating a strong outlook [22][42] Other Important Information - The company introduced over 650 new part numbers in 2025, with 40% targeted for the automotive market [27] - Cash flow provided by operations was $215.5 million for the full year, an increase of $96.1 million compared to the previous year [19] Q&A Session Summary Question: Can you walk us through the targets and how you see getting there? - Management reiterated commitment to achieving long-term goals and emphasized the importance of driving share in key market segments [38] Question: Is the gross margin improvement due to leverage or operational efficiencies? - Management indicated that improvements in cost structure and manufacturing efficiency are contributing to gross margin improvements [40] Question: Should we contemplate the interim goal as something to achieve by calendar 2028? - Management confirmed that the interim goal is indeed targeted for achievement by 2028 [45] Question: What is the impact of manufacturing services agreements ending this year? - Management acknowledged the agreements are concluding and indicated that benefits from new wafer fabs will start contributing to gross profit next year [49] Question: How is the company addressing the supply interruption and its impact on margins? - Management stated that they are using the opportunity to deepen relationships with customers and expand their portfolio [56]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $391.6 million, a 15.4% increase year-over-year, and a full year revenue of $1.5 billion, up 13% from 2024 [10][11] - Gross profit for the fourth quarter was $121.9 million, representing 31.1% of revenue, compared to 32.7% in the prior year quarter [11] - GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, compared to $8.2 million, or $0.18 per diluted share in the prior year quarter [14][15] Business Line Data and Key Metrics Changes - The computing market saw a 25% increase for the full year, primarily driven by AI server-related applications [5] - Automotive revenue grew 6% sequentially and 20% for the full year, indicating improved inventory and demand [26] - Industrial revenue was flat sequentially but increased 13% for the full year, with strong demand in power, sensing, and automation applications [29] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% in the fourth quarter [25] - The automotive and industrial markets combined accounted for 42% of product revenue, a one percentage point increase from the previous quarter [25] - The company introduced over 650 new part numbers in 2025, with 40% targeting the automotive market [26] Company Strategy and Development Direction - The company aims to achieve $2.5 billion in revenue and $1 billion in gross profit by focusing on automotive, industrial, and AI server-related applications [8][9] - Continued emphasis on product mix improvements and manufacturing efficiency to drive margin expansion [9] - The company is strategically supporting key customers in automotive and communication markets to enhance design win momentum [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market recovery, particularly in key segments, and anticipates above-seasonal revenue results in the coming quarter [6][22] - The company expects a 19% year-over-year revenue increase for the first quarter of 2026, indicating strong demand [22][43] - Management highlighted the importance of improving cost structure and product mix to enhance gross margins [41][49] Other Important Information - Cash flow provided by operations was $38.1 million for the fourth quarter, with free cash flow of $12.4 million [19] - The company returned $33.8 million to shareholders through a stock buyback program, contributing to a positive net cash flow of $57.6 million for the full year [20] Q&A Session Summary Question: Can you walk us through the targets and how you see getting there? - Management emphasized commitment to achieving long-term goals and highlighted the importance of driving share in key market segments [38] Question: Is the gross margin improvement due to operational efficiencies? - Management confirmed that improvements in cost structure and manufacturing efficiency are contributing to gross margin enhancement [41] Question: What is the outlook for growth through the year? - Management indicated a promising market demand and suggested using Q1 guidance as a reference for the full year [42][43] Question: Should we consider the new targets as achievable by calendar 2028? - Management confirmed that the interim goal is set for achievement by 2028 [46] Question: What is the impact of underutilization charges on gross margins? - Management acknowledged that underutilization charges are a key factor in gross margin improvement, alongside product mix enhancements [49] Question: Can you clarify the status of manufacturing services agreements? - Management indicated that these agreements are coming to an end, with expected benefits from new wafer fabs starting next year [51]

Financial Performance - The company aims for a gross profit of $1.0 billion based on $2.5 billion in net sales and a gross margin of 40%, with interim targets of $2.0 billion in annual net sales and approximately $700 million in gross profit, or over 35% gross margin [18]. - In 2025, the total net sales reached $1,482.1 million, an increase from $1,311.1 million in 2024, but a decrease from $1,661.7 million in 2023 [42]. - Direct sales contributed $522.4 million to total net sales in 2025, compared to $479.8 million in 2024 and $530.4 million in 2023, showing fluctuations in direct sales performance [42]. - The Asia region generated $1,156.8 million in net sales in 2025, up from $1,020.3 million in 2024, while Europe and Americas saw declines in sales [42]. - The company serves over 50,000 customers globally, with direct sales and EMS customers accounting for 35% of net sales in 2025, down from 37% in 2024 [40]. - The backlog of orders is subject to cancellation or modification, indicating potential volatility in future sales forecasts [49]. - Diodes' net sales are historically affected by the cyclical nature of the semiconductor industry, with the fourth quarter typically showing the smallest revenue [75]. - Inflation did not have a material effect on net sales or net income in fiscal year 2025 [296]. Market Segments and Strategy - The company operates in a single segment of standard semiconductor products, with sales primarily through operations in Asia, the Americas, and Europe [19]. - The company focuses on high-margin market segments, including automotive and industrial, and is investing in technology leadership and selective strategic acquisitions to enhance its product portfolio [21]. - The company plans to expand its addressable market by developing enhanced performance devices and cultivating new customers within targeted markets [31]. - Recent acquisitions include a joint venture with Global Advanced Packaging Test Limited and the acquisition of Fortemedia, aimed at enhancing the company's product offerings in voice processing technologies [34]. - The company emphasizes rapid introduction of innovative semiconductor products, particularly in AI applications, IoT, and automotive markets, to maintain and extend market share [30]. - The company’s product focus includes discrete semiconductor products, analog products, mixed-signal products, and frequency control products, catering to various high-growth end-user applications [36]. - The computing segment accounted for 27% of product revenue in 2025, up from 25% in 2024 and 23% in 2023, indicating a growing demand in this area [37]. - The automotive segment maintained a steady 19% of product revenue across the last three years, highlighting consistent demand in this market [37]. Manufacturing and Operations - The company maintains a low-cost manufacturing base and a hybrid manufacturing model to enhance cost competitiveness and flexibility [33]. - The company focuses on developing smaller, more thermally efficient packaging, which is critical for maintaining product functionality and performance [38]. - The company invested approximately $78.4 million in capital expenditures in 2025, an increase from $73.0 million in 2024, reflecting ongoing investment in manufacturing capabilities [45]. Human Capital and Management - The company emphasizes the importance of human capital management, recognizing its role in driving financial success and innovation [60]. - As of December 31, 2025, Diodes had a total of 7,989 employees, with 6,753 in Asia, 790 in Europe, and 446 in the Americas [66]. Financial Liabilities and Risks - Outstanding principal long-term debt was $25.7 million and short-term debt was $30.3 million as of December 31, 2025 [294]. - A 1.0% increase or decrease in interest rates would affect annual interest rate expense by approximately $0.6 million [294]. - If the Chinese Yuan, Taiwanese dollar, Euro, and British Pound Sterling were to weaken or strengthen by 1.0% against the U.S. dollar, the company would experience a currency transaction gain or loss of approximately $3.5 million [290]. - The weighted-average discount rate assumption for the defined benefit plan was 5.5% as of December 31, 2025 [293]. - The company has a defined benefit plan in the U.K. that is underfunded, reflecting a liability of approximately $1.2 million as of December 31, 2025 [293]. - The company has entered into hedging arrangements to mitigate foreign currency fluctuations [290]. Related Party Relationships - The company maintains relationships with related parties, including Keylink, Nuvoton, and Atlas, which are considered mutually beneficial [72].

Fourth Quarter 2025 Financial Results Diodes Incorporated (DIOD) Plano, TX, USA February 10, 2026 Safe Harbor Statement Page 1 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as ...

Investor Relations Diodes Incorporated (DIOD) Plano, TX, USA February 10, 2026 Safe Harbor Statement Page 1 Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such statements include statements containing forward-looking words such as "expect," "anticip ...