LITEON Technology (2301-tw) reported second-quarter consolidated sales of NT$52.7 billion, up 21% Q-o-Q and 30% Y-o-Y. Gross margin reached a record 27.2% and operating margin a record 15.6%, up 5.1 and 6.3 percentage points Y-o-Y, respectively. Cloud business grew more than 70% Y-o-Y. Supported by strong AI demand, deferred shipments of high-end products from Q1, a greater contribution from high-value businesses, economies of scale from global capacity expansion, and improved operational efficiency through smart manufacturing, net profit rose to a record NT$7.1 billion, while EPS also hit a new high of NT$3.14, up 126% Y-o-Y.

For the first half of 2026, consolidated revenue totaled NT$96.1 billion, up 25% Y-o-Y. Gross margin and operating margin reached 24.7% and 12.8%, respectively, while net profit reached NT$10.9 billion and EPS increased 66% Y-o-Y to NT$4.80. All major profitability indicators achieved record highs. The Board approved a cash dividend of NT$2.5 per share for Q2 2026.

“Our long-term AI infrastructure strategy is delivering results. Strong demand for AI power solutions, energy storage, and cloud infrastructure drove record-high revenue and profitability in the first half of the year, while the growing contribution of high-value AI businesses further improved our product mix and ROIC,” said Anson Chiu, President of LITEON Technology. “We will continue to strengthen our AI infrastructure capabilities through strategic investments and technology development to drive long-term growth.”

To support growing AI demand, LITEON has increased its 2026 Capex to NT$18 billion. The previously announced US$919 million investment in McKinney, Texas, will establish a manufacturing hub integrating smart manufacturing, operations, engineering, and R&D. Focused on AI infrastructure and energy management solutions, including HVDC Power Racks, strengthening LITEON's global manufacturing and service capabilities for next-generation AI data centers.

Looking ahead to Q3 2026, LITEON expects continued Q-o-Q and Y-o-Y growth across its core businesses, with AI-related revenue projected to account for more than 30% of annual revenue. Growth will be driven by mass production of next-generation 8.5kW PSUs and BBUs, shipments of 110kW Power Shelves, and continued progress in the HVDC Power Rack portfolio, including validation of the 800 VDC Power Rack in the second half of the year. Demand for advanced IT power applications remains strong, while the LEO satellite power business is expected to achieve multiple-fold Y-o-Y growth. As a key supplier, LITEON remains well positioned for continued growth.

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