AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the second quarter of 2026(1).
Consolidated revenues in the second quarter of 2026 were NT$70.89 billion, up by 2.7% quarter-over-quarter and up by 2.4% year-over-year. AUO’s net profit attributable to owners of the Company for the second quarter of 2026 was NT$1.34 billion, with a basic EPS(2) of NT$ 0.18.
Highlights of consolidated results for the second quarter of 2026
- Revenues of NT$70.89 billion
- Operating profit of NT$0.22 billion
- Net profit attributable to owners of the Company at NT$1.34 billion
- Basic EPS(2) was NT$0.18
- Gross margin was 13.0%
- Operating margin was 0.3%
- EBITDA(3) margin was 10.6%
(1) All financial information was prepared by the Company in accordance with Taiwan IFRS. ADLINK Technology Inc. ("ADLINK") convened its annual general meeting of shareholders in late June 2025, during which a full re-election of the Board of Directors was conducted. As a result of the election, AUO secured a majority of the ordinary director seats. Accordingly, effective June 30, 2025, ADLINK has been included in AUO’s consolidated financial statements.
(2) Basic EPS in the second quarter of 2026 was calculated based on the weighted average outstanding shares of the reporting quarter (7,547 million shares).
(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.
Looking back at the second quarter, consolidated revenue increased 2.7% QoQ. Display revenue declined slightly by 0.3% QoQ due to softer consumer electronics demand. Mobility Solutions grew 3% QoQ, supported by solid automotive order momentum, while Vertical Solutions increased 11% QoQ on continued recovery in smart vertical applications and commercial and industrial display demand. Profitability improved as our transformation strategy continued to enhance product mix and operating efficiency. Both operating profit and net income attributable to owners of the parent returned to positive territory, with net income attributable to owners of the parent reaching NT$1.34 billion. To support second-half production and shipment, inventory days increased slightly to 58 days. Meanwhile, the net debt-to-equity ratio further improved to 28.1%, remaining at a healthy level.
Looking ahead to the third quarter, consumer electronics demand is expected to remain soft. The automotive team continues to deepen customer engagement, with demand remaining stable. Vertical Solutions business is expected to maintain steady growth. The Company will continue to closely monitor market conditions and customer demand, while focusing on product mix optimization and inventory management to support stable revenue and profitability.