Amkor Technology — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for Q3 2026 were $1.991 billion, compared to $1.987 billion in Q3 2025 and $1.898 billion in Q2 2026.
• Gross profit was $364 million (18.3% margin), up from $284 million (14.3% margin) in Q3 2025 and $319 million (16.8% margin) in Q2 2026.
• Operating income was $225 million (11.3% margin), an increase from $159 million (8.0% margin) in Q3 2025 and $200 million (10.5% margin) in Q2 2026.
• Net income attributable to Amkor was $191 million, or $0.76 per diluted share, compared to $127 million ($0.51 per share) in Q3 2025 and $174 million ($0.70 per share) in Q2 2026.
• EBITDA was $435 million, up from $340 million in Q3 2025 and $400 million in Q2 2026.
• Total cash and short-term investments stood at $2.4 billion as of September 30, 2026.
• Total debt was $2.5 billion as of September 30, 2026.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $868.3 million, compared to $451.1 million in the same period in 2025.
• Net cash used in investing activities for the nine months ended September 30, 2026, was $1.34 billion, compared to $554.5 million in 2025.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $833.5 million, compared to $518.9 million in 2025.
• Inventory increased to $603.8 million at September 30, 2026, from $437.8 million at December 31, 2025.

Guidance and Future Outlook:

• Q4 2026 net sales guidance is $1.9 billion to $2.0 billion.
• Q4 2026 gross margin guidance is 18.0% to 19.0%.
• Q4 2026 net income guidance is $160 million to $185 million, or $0.65 to $0.75 per diluted share.
• Full-year 2026 capital expenditures are updated to approximately $2.5 billion.

Business Segments and Product Lines:

• Advanced products generated $1.632 billion in net sales for Q3 2026, compared to $1.684 billion in Q3 2025 and $1.557 billion in Q2 2026.
• Mainstream products generated $359 million in net sales for Q3 2026, compared to $303 million in Q3 2025 and $341 million in Q2 2026.
• Packaging services accounted for 88% of net sales in Q3 2026, while test services accounted for 12%.
• Communications end markets (smartphones, tablets) represented 37% of net sales in Q3 2026, down from 51% in Q3 2025 and 42% in Q2 2026.
• Computing end markets (data center, infrastructure, PC/laptop, storage) represented 26% of net sales in Q3 2026, up from 19% in Q3 2025 and 22% in Q2 2026.
• Automotive, industrial, and other end markets represented 22% of net sales in Q3 2026, up from 16% in Q3 2025 and 22% in Q2 2026.
• Consumer end markets represented 15% of net sales in Q3 2026, up from 14% in Q3 2025 and 14% in Q2 2026.
• Net sales from the top ten customers comprised 66% of total net sales in Q3 2026, down from 73% in Q3 2025 and 66% in Q2 2026.

Market and Competitive Landscape:

• Management noted record revenue in Computing and Automotive & Industrial end markets.
• Management cited expected weakness in Communications end markets.
• The company is advancing key customer programs and benefiting from expanding customer commitments.

Risks and Challenges:

• Risks include dependence on the cyclical semiconductor industry, vulnerability to global economic downturns, and fluctuations in raw material costs and availability.
• Challenges include difficulty achieving high capacity utilization rates due to high fixed costs, absence of backlog, and short-term customer commitments.
• Risks related to substantial indebtedness, interest rate increases, and restrictive covenants are noted.
• Potential risks include trade restrictions, tariffs, export controls, and geopolitical conflicts affecting international operations.
• The company faces risks regarding warranty claims, product liability, and litigation.

Management Commentary and Tone:

• Kevin Engel, President and CEO, described the quarter as "strong," highlighting record revenue in Computing and Automotive & Industrial sectors and continued margin expansion.
• Management stated the company is executing on strategy, advancing customer programs, and making disciplined investments to meet future demand.

Other Key Points:

• The company paid a quarterly dividend of $0.08352 per share on September 22, 2026.
• During Q3 2026, the company purchased approximately $32 million of common stock under its repurchase program.
• For the nine months ended September 30, 2026, the company paid $62.1 million in dividends and $32.3 million for repurchases of common stock.
• The company raised $1.15 billion in proceeds from long-term debt and paid $108.4 million in payments of long-term debt during the nine months ended September 30, 2026.
• Capital expenditures payable increased to $496.1 million at September 30, 2026, from $243.5 million at December 31, 2025.
• The company is the world's largest U.S. headquartered OSAT and offers advanced packaging, wafer-level processing, and system-in-package solutions.