Earnings

Amkor's Third-Quarter Profit Climbs To $191 Million On Wider Margins, But Sales Stay Flat

The chip packager's gross margin reached 18.3% from 14.3% a year earlier, while sales of $1.99 billion barely moved.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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Amkor's Third-Quarter Profit Climbs To $191 Million On Wider Margins, But Sales Stay Flat

Amkor Technology, which provides outsourced semiconductor packaging and test services, reported third-quarter net sales of $1.99 billion, about level with $1.987 billion a year earlier, while net income rose to $191 million from $127 million. The company reported the results Monday and guided to fourth-quarter sales of $1.9 billion to $2.0 billion.

Margins widen on flat sales

Gross margin reached 18.3%, up from 16.8% in the second quarter and 14.3% a year earlier. Operating income was $225 million against $159 million in the third quarter of 2025, and earnings were $0.76 per diluted share versus $0.51. Sales rose from $1.898 billion in the second quarter.

The cost of materials fell to 50.7% of sales from 57.5% a year earlier. EBITDA, the company's adjusted earnings measure before interest, taxes and depreciation, was $435 million versus $340 million.

CEO Kevin Engel said Amkor "delivered a strong quarter, with record revenue in Computing and Automotive & Industrial end markets and continued margin expansion, despite expected weakness in Communications."

Communications shrinks as computing grows

Communications, which covers smartphones and tablets, fell to 37% of sales from 51% a year earlier. Computing, which includes data centers, rose to 26% from 19%, and automotive, industrial and other climbed to 22% from 16%. Consumer was 15%, up from 14%.

By product group, advanced products brought in $1,632 million, down from $1,684 million a year earlier, while mainstream products rose to $359 million from $303 million. Amkor's top ten customers made up 66% of sales, compared with 73% a year ago.

The company's profile shows Apple at 29.8% and Qualcomm at 11.1% of 2025 net sales.

Spending surges ahead of the outlook

For the fourth quarter, Amkor expects gross margin of 18.0% to 19.0% and net income of $160 million to $185 million, or $0.65 to $0.75 per diluted share. It updated full-year 2026 capital spending to about $2.5 billion.

Payments for property, plant and equipment reached $1,236.8 million in the first nine months, versus $472.5 million a year earlier. Long-term debt stood at $2,317.7 million at September 30, against $1,282.8 million at the end of 2025, and cash and short-term investments totaled $2.4 billion.

The quarter followed an announced $1.3 billion agreement with NVIDIA to expand capacity in South Korea. Amkor also bought back about $32 million of stock in the quarter. Management holds its earnings call at 5:00 p.m. Eastern Monday.

Amkor's fourth-quarter guidance brackets the $1.99 billion it just posted, so the margin gains carry the outlook.

Sources

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