LITEON Technology (2301-tw) today reported the second quarter consolidated sales of NT$52.7 billion, up 21% Q-o-Q and 30% Y-o-Y. Gross margin reached 27.2%, up 5.1 percentage points Y-o-Y; operating margin increased to 15.6%, an increase of 6.3 percentage points Y-o-Y, with both margins achieving record highs. Revenue from the cloud computing business grew by more than 70% Y-o-Y. Driven by strong demand for next-generation AI data centers, deferred shipments of advanced products from the first quarter, a higher contribution from high-value businesses, economies of scale from expanded global capacity, and improved operational efficiency through smart manufacturing initiatives, LITEON’s net profit for the second quarter reached NT$7.1 billion, while EPS climb to NT$3.14, up 126% Y-o-Y, both delivering the Company's strongest quarterly performance to date.
For the first half of 2026, consolidated revenue totaled NT$96.1 billion, up 25% Y-o-Y. Gross margin reached 24.7%, up 2.4 percentage points Y-o-Y; operating margin increased to 12.8%, up 3.2 percentage points Y-o-Y. Net profit for the first half year reached NT$10.9 billion, and EPS reached NT$4.80, up 66% Y-o-Y. All major profitability indicators achieved record highs. Following approval by the Board, the Company will distribute a cash dividend of NT$2.5 per share for the second quarter of 2026.
“Our long-term strategy in AI data center infrastructure are beginning to bear fruit. Supported by growing demand for AI power solutions, energy storage, and cloud infrastructure, both revenue and profitability reached new highs in the first half of the year. As AI-related high-value businesses continue to account for a larger share of revenue, ongoing product mix optimization has further enhanced our Return on Invested Capital (ROIC),” said Anson Chiu, President of LITEON Technology. “Looking ahead, LITEON will continue to deepen its presence in AI infrastructure through strategic investments and key technology initiatives, further strengthening our long-term competitiveness and growth momentum.”
To support rapidly growing demand for high-efficiency power and integrated system solutions in the AI era, LITEON has increased its 2026 CAPEX to NT$18 billion.
The previously announced US$919 million strategic investment in McKinney, Texas, will establish a manufacturing hub encompassing smart manufacturing, operations management, engineering, and R&D capabilities. The facility will focus on AI infrastructure and energy management solutions, including HVDC Power Racks, to support the evolving power architecture requirements of next-generation AI data centers while further enhancing LITEON's global manufacturing flexibility and service capabilities.
Looking ahead to the third quarter of 2026, LITEON expects its core businesses to maintain both Q-o-Q and Y-o-Y growth momentum, with AI-related revenue expected to exceed 30% of total annual revenue. Growth will be driven primarily by the ramp-up of next-generation 8.5kW power supply units (PSU) and backup battery units (BBU), as well as stable shipments of 110kW Power Shelves. Development of the HVDC Power Racks continues to progress, with the 800 VDC Power Rack expected to complete validation in the second half of the year.
In addition, demand for advanced IT power applications continues to increase, while the LEO satellite power business is expected to deliver multiple-fold Y-o-Y growth. As a key supplier in these markets, these businesses are expected to become key growth drivers going forward.