Himax Technologies
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did HIMX Beat Earnings? Q3 2025 Results
Himax Technologies delivered a stronger-than-expected third quarter, with revenue of $199.16 million beating the $186.22 million consensus by 6.95% and earnings per diluted ADS of $0.01 edging past the $0.01 estimate by 20%, even as sales declined 10.4% from a year ago. The headline driver was automotive, which contributed more than half of total revenue as the company's TDDI, DDIC, and Tcon product lines all came in ahead of management's own guided range of a 12-17% sequential revenue decline, a target the company comfortably cleared with only a 7.3% sequential drop. The quarter did carry an operating loss of $618,000, largely reflecting Himax's annual September employee bonus of $8.10 million, though after-tax profit still reached $1.07 million. Looking ahead, management guides Q4 revenue flat sequentially with gross margin flat to slightly higher and profit per diluted ADS of 2.0 to 4.0 cents, while expressing confidence in multi-year automotive growth and expanding opportunities in ultralow power AI, co-packaged optics, and smart glasses components.
- Better-than-expected automotive IC and Tcon sales drove revenue outperformance vs guidance
- Automotive business remains largest revenue contributor at over 50% of total revenues
- Automotive Tcon full-year 2025 sales set to grow approximately 50% YoY
- Tcon business accounted for around 12% of total sales with notable automotive contributions
- Customers maintaining lean inventories with make-to-order model
“Despite the limited short-term visibility in the automotive market, we remain optimistic about our automotive business outlook for the next few years, backed by our leading new technology offerings and comprehensive customer coverage. Meanwhile, we continue to focus on the expansion into emerging areas beyond display ICs, including ultralow power AI, CPO, and smart glasses, all novel applications characterized by high growth potential, high added value, and high technological barriers that are well positioned to become new growth drivers for Himax soon.”
Himax Technologies CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Himax guides revenue to be flat sequentially, gross margin flat to slightly up depending on product mix, and profit per diluted ADS of 2.0 to 4.0 cents. Q4 automotive driver IC sales (TDDI and DDIC) are expected to increase single digit QoQ. Full-year 2025 automotive driver IC sales are projected to grow single digit YoY, outpacing global automotive shipment growth. Full-year 2025 automotive Tcon sales are set to grow approximately 50% YoY. Large display driver IC sales expected to increase single digit sequentially. Small and medium-sized display driver IC business expected to slightly decline QoQ. Non-driver IC revenues expected to increase single digit sequentially. The company expects automotive OLED display adoption to accelerate starting in 2027 and anticipates revenues from AR and AI glasses applications to grow substantially over the next few years. WiseEye business is entering rapid growth phase. CPO first-generation solution is being validated for 2026 mass production readiness.
HIMX YoY Financials
HIMX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.