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AMKOR TECHNOLOGY, INC. (AMKR)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered strong upside: revenue $1.99B (+31% q/q, +7% y/y) and EPS $0.51, both above high-end guidance, driven by record Communications and Computing on advanced packaging ramps; gross margin expanded 230 bps sequentially to 14.3% .
  • Clear estimate beats: Revenue beat S&P Global consensus by ~$55M and EPS beat by ~$0.09; Q4 guide brackets consensus but includes a ~$30M asset-sale benefit in gross margin, implying underlying margins lower than headline guide midpoint * *.
  • Strategic updates are material catalysts: Arizona advanced packaging/test campus investment raised to $7B with 750k sq ft cleanroom and up to 3,000 jobs (phase 1 mid-2027, production early 2028); CEO succession effective 1/1/26 (Rutten retiring year-end; COO Kevin Engel to succeed) .
  • Capital and returns: Liquidity fortified (new $1B revolver, $500M term loan, $500M 2033 notes; redemptions of 2027 notes in Q3 and remaining $400M in Oct) and quarterly dividend raised to $0.08352 per share .

What Went Well and What Went Wrong

  • What Went Well

    • Advanced packaging ramps: “record revenue in our Communications and Computing end markets,” high-density fan-out ramping with additional products moving to production in Q4; AI/HPC pipeline strong .
    • Operating leverage: Gross margin up 230 bps q/q to 14.3% on higher volume; EBITDA rose to $340M; EPS more than doubled q/q to $0.51 .
    • Strategic footprint: Broke ground on Arizona campus; total investment increased to $7B to align with U.S. customer demand and foundry partner; targeted for AI/HPC, mobile and auto .

  • What Went Wrong

    • Mix and costs constrain margins: Material content higher with advanced SiP; year-on-year gross margin pressure from higher manufacturing costs as leading-edge scales; Q4 guide includes ~$30M asset sale boosting gross margin .
    • Japan underutilization: Footprint optimization underway; actions expected to yield ~100 bps corporate gross margin improvement by end of 2027, indicating persistent near-term drag .
    • Consumer softness: Wearables lifecycle drove y/y decline; communications to taper sequentially in iOS in Q4, partly offset by Android .

Financial Results

Quarterly trend (2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($B)$1.32 $1.51 $1.99
Gross Margin (%)11.9% 12.0% 14.3%
Operating Income ($M)$32 $92 $159
Diluted EPS ($)$0.09 $0.22 $0.51
EBITDA ($M)$197 $259 $340

YoY compare

MetricQ3 2024Q3 2025
Revenue ($B)$1.86 $1.99
Gross Margin (%)14.6% 14.3%
Operating Income ($M)$149 $159
Diluted EPS ($)$0.49 $0.51
EBITDA ($M)$309 $340

Actual vs S&P Global consensus and guidance

PeriodRevenue Consensus ($B)Revenue Actual/Guide ($B)EPS Consensus ($)EPS Actual/Guide ($)
Q2 2025$1.422*$1.511 $0.160*$0.22
Q3 2025$1.933*$1.987 $0.422*$0.51
Q4 2025$1.833*Guide: $1.775–$1.875 $0.434*Guide: $0.38–$0.48

Values marked with * were retrieved from S&P Global.

Segment/Product mix and End Markets

MetricQ3 2024Q2 2025Q3 2025
Advanced products revenue ($M)$1,568 $1,228 $1,684
Mainstream products revenue ($M)$294 $283 $303
Packaging services (%)90% 88% 89%
Test services (%)10% 12% 11%
Top 10 customers (% of sales)74% 72% 73%
Communications (%)52% 40% 51%
Computing (%)16% 22% 19%
Auto/Industrial/Other (%)16% 20% 16%
Consumer (%)16% 18% 14%

KPIs and Balance Sheet

KPIQ2 2025Q3 2025
Cash + Short-term investments ($B)$2.0 $2.1
Total Debt ($B)$1.6 $1.8
Debt/EBITDA (x)1.5x 1.7x
EBITDA Margin (%)17.1% 17.1%
2025 CapEx Guidance ($M)$850 $950 (raised)
Dividend/share$0.08269 paid Jun 25 Increased to $0.08352 payable Dec 23

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net SalesQ4 2025n/a$1.775B–$1.875B New
Gross MarginQ4 2025n/a14.0%–15.0% incl. ~$30M asset-sale benefit New
Net IncomeQ4 2025n/a$95M–$120M New
Diluted EPSQ4 2025n/a$0.38–$0.48 New
OpExQ4 2025n/a~ $120M New
Effective Tax RateFY 2025~20% (as reiterated) ~20% (excl. discrete) Maintained
Capital ExpendituresFY 2025~$850M ~ $950M Raised
Arizona Campus InvestmentMulti-yearPrior <$7B (not formal guidance)Increased to $7B, 750k sq ft cleanrooms; jobs up to 3,000; Phase 1 mid-2027, production early 2028 Increased scope
DividendNext payment$0.08269 per share (prior) $0.08352 per share, payable Dec 23, 2025 Increased

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1–Q2 2025)Current Period (Q3 2025)Trend
AI/HPC & High-Density Fan-Out (RDL)Launched first HDFO in Q2; pipeline across CPUs/GPUs/networking; test platform expansion; compute up 18% 1H y/y Ramps continued; another HDFO product to production in Q4; strong long-term compute outlook Improving
2.5D programsImpacted earlier by export controls; diversifying to networking/customer #2; lifetime extended; fungible capex Slight near-term moderation; positive pipeline under review with customers Stabilizing
Communications (iOS/Android)New iOS SiP socket regained; Q3 seasonal strength expected; Q4 uncertain Q3 Comms +67% q/q; Q4 slight iOS taper offset by Android; y/y up >20% in Q4 Improving in 2H
Automotive & IndustrialTroughing; ADAS/infotainment advanced packaging driving growth; mainstream soft ADAS-led growth; sequential stability; inventory balance improving; modest growth into Q4 Gradual recovery
Supply chain & substratesWatching export controls/tariffs; proactive substrate sourcing; potential constraints Pockets of tightness in advanced lines; substrate supply monitored with strategic procurement Mixed risk
Japan footprintQ2 flagged rationalization plans; details forthcoming Actions underway; path to ~100 bps corporate GM improvement by end-2027 Positive by 2027
Arizona projectGroundbreaking 2H25; complementary to TSMC; potential acceleration Groundbreaking completed; scope increased to $7B; schedule set (2027/2028) Accelerating
Test capacityKorea K5 turnkey expansion phase 1 end-2025; phase 2 1H27 Continued tester upgrades; turnkey strategy reiterated On plan

Management Commentary

  • “Amkor delivered third quarter revenue of $1.99 billion and EPS of $0.51, both exceeding the high end of our guidance. Revenue increased 31% sequentially, driven by robust demand for advanced packaging.” — Giel Rutten, CEO .
  • “We marked a major milestone with the groundbreaking of our new advanced packaging and test campus in Arizona… increased the total projected investment to $7 billion.” .
  • “We expect to begin to see results [from Japan optimization] in Q4 2025… we see a path to improving corporate gross margins by around 100 basis points exiting 2027.” — Megan Faust, CFO .
  • “Gross margin is projected to be between 14% and 15% [in Q4], which includes an anticipated benefit from asset sales of around $30 million.” — CFO .

Q&A Highlights

  • Margins and mix: Underlying Q4 gross margin flow-through is in line with the model; higher material content vs last year’s seasonal mix shift; ~$30M asset sale lifts reported margins .
  • Communications dynamics: Q4 guided slightly down on iOS, offset by Android; regained iOS socket ramping as planned; premium-tier AI at the edge a multi-year content driver .
  • Compute ramps: High-density fan-out shipping, more products to production; 2.5D moderation near term with positive pipeline; test capacity upgrades ongoing .
  • Japan footprint: Rationalization benefits targeted by end-2027; Q3 baseline for ~100 bps gross margin improvement path .
  • Arizona scope: $7B reflects capacity increase (not cost inflation), co-located near foundry partner to enable turnkey U.S. supply chain .

Estimates Context

  • Q3 beats: Revenue $1.987B vs $1.933B consensus; EPS $0.51 vs $0.422; both above guidance high end driven by advanced packaging ramps in Communications/Computing *.
  • Q4 guide vs Street: Net sales guide $1.775–$1.875B brackets $1.833B consensus; EPS guide $0.38–$0.48 brackets $0.434 consensus; note guide includes ~$30M asset-sale benefit in gross margin *.
  • Prior quarter: Q2 revenue $1.511B vs $1.422B consensus; EPS $0.22 vs $0.160, aided by a $32M non-routine benefit at EBIT/EBITDA and $0.07 EPS tailwind *.

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Advanced packaging is the core growth engine: record Communications and Computing revenues underscore leverage to AI/HPC and premium smartphones; ramps extend into Q4 and 2026 .
  • Margin trajectory improving but mixed near term: sequential expansion in Q3; Q4 headline GM aided by asset sale; structural tailwinds include Japan footprint actions (~100 bps by end-2027), Vietnam scaling, and leading-edge mix maturation .
  • U.S. onshoring catalyst: Arizona campus scope increased to $7B with foundry alignment; timeline set (phase 1 mid-2027, production early 2028), positioning AMKR at the center of domestic advanced packaging .
  • Balance sheet ready for investment cycle: expanded revolver, term loan, and 2033 notes; continuing redemptions of 2027 notes; liquidity supports multi-year capex and dividend growth .
  • FY25 capex raised to $950M (from $850M) to accelerate Arizona and leading-edge capacity/test; expect more detail with 2026 capex guide next call .
  • Near-term watch items: Q4 mix (iOS taper vs Android strength), substrate/tight capacity pockets, and progression of Japan optimization; estimate revisions likely trend up post-Q3 beat with cautious Q4 underlying margin due to asset-sale uplift .

Additional source documents and disclosures:

  • Q3 2025 8-K and press release (financials, guidance, CEO succession) .
  • Q3 2025 earnings call transcript (strategy, margin drivers, Q&A detail) .
  • Q2 2025 press release and call (prior guidance, non-routine item, mix) .
  • Q1 2025 press release and call (early-year trends, strategic pillars, test expansion) .
  • Dividend increase press release (Nov 12, 2025) .