United Microelectronics Corp. Sponsored ADR (UMC.US)Q4 revenue beats expectations but profit slightly below expectations Q1 guidance tends to be conservative.

United Microelectronics Corp. Sponsored ADR (UMC.US) announced its fourth quarter performance for 2025. The financial report shows that the company's revenue reached $1.97 billion, a 2.4% year-on-year increase, surpassing market expectations by $60 million; however, the GAAP earnings per share were $0.129, slightly lower than the market expectation of $0.01. Key financial and operational indicators show structural adjustments. In terms of profitability, the fourth quarter gross profit margin was 30.7% and the operating profit margin was 19.8%. In terms of technology nodes, the revenue contribution from the 22/28-nanometer process reached 36%. In terms of capacity and efficiency, the quarterly wafer shipments of United Microelectronics Corp. Sponsored ADR decreased by 0.6% to 994,000 pieces (approximately 12 inches) compared to the previous quarter, with a total capacity of 1.305 million pieces and an overall capacity utilization rate maintained at 78%. The company's operating cash flow in the fourth quarter reached 33 billion New Taiwan Dollars, with cash and cash equivalents increasing to 110.66 billion New Taiwan Dollars. Accounts receivable turnover days shortened by 3 days to 47 days, while inventory days increased by 1 day to 77 days. The total capacity in the fourth quarter was 1.305 million pieces (approximately 12-inch wafers). Due to maintenance of 8-inch and 12-inch fabs, it is expected that the total capacity in the first quarter of 2026 will slightly decrease to 1.283 million pieces (approximately 12 inches). In terms of capital expenditures and capacity planning, the company's capital expenditure in the fourth quarter was $501 million, with a total annual capital expenditure of $1.6 billion in 2025. The cash capital expenditure budget for 2026 is set at $1.5 billion. The first quarter performance outlook is cautious. Wafer shipments are expected to remain stable, average selling prices (in USD) are expected to remain strong, gross margin is expected to decrease to around the 20% range, and capacity utilization rate is expected to be in the mid-70% range.