Amkor Technology Reports Financial Results for the Third Quarter 2025 and Announces CEO Succession Plan
TEMPE, Ariz.--( BUSINESS WIRE)--Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the third quarter ended September 30, 2025 and a chief executive officer succession plan.
Third Quarter 2025 Highlights
“Amkor delivered third quarter revenue of $1.99 billion, a 31% sequential increase, fueled by demand for Advanced packaging, which set a new revenue record,” said Giel Rutten, Amkor’s president and chief executive officer. “This quarter, we executed steep production ramps, achieved record revenue in our Communications and Computing end markets, and broke ground on our new Advanced packaging and test campus in Arizona, reinforcing our commitment to enable our customers' technology roadmaps and strengthen U.S. semiconductor manufacturing.”
The company also announced that Mr. Rutten has informed the Board of Directors of his intention to retire as president and chief executive officer at the end of 2025. He will remain a member of the company’s Board of Directors. “Giel has been instrumental in focusing Amkor’s strategy on leadership in Advanced packaging and orienting the company towards high growth markets, including high performance computing and AI,” said Susan Kim, the company’s Chairman of the Board. “Giel has been a highly effective CEO and has positioned the company for significant long-term growth. We thank him for his dedicated work and are pleased that he will continue as member of the Board.”
Following its succession planning process, the company’s Board of Directors announced that it has appointed Mr. Kevin Engel, chief operating officer, to succeed Mr. Rutten as president and chief executive officer, effective January 1, 2026, and that Mr. Engel will join the Board at that time. Mr. Rutten and Mr. Engel will work together on executing a smooth leadership transition. “Kevin is an industry veteran with more than twenty years of experience with Amkor. He is uniquely qualified to lead the company when Giel retires and to continue the company’s close collaboration with leading semiconductor companies,” said Ms. Kim.
Quarterly Financial Results
($ in millions, except per share data)
Q3 2025
Q2 2025 (2)
Q3 2024
Net sales
$1,987
$1,511
$1,862
Gross margin
14.3%
12.0%
14.6%
Operating income
$159
$92
$149
Operating income margin
8.0%
6.1%
8.0%
Net income attributable to Amkor
$127
$54
$123
Earnings per diluted share
$0.51
$0.22
$0.49
EBITDA (1)
$340
$259
$309
(1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.”
(2) During the three months ended June 30, 2025, our results include a $32 million net benefit to operating income and EBITDA due to a contingency payment related to our acquisition of Nanium in May 2017. Net income and earnings per diluted share also include a $16 million and $0.07 benefit, respectively.
At September 30, 2025, total cash and short-term investments was $2.1 billion, and total debt was $1.8 billion. In October 2025, the company redeemed the remaining $400 million of its outstanding senior notes due 2027.
The company paid a quarterly dividend of $0.08269 per share on September 23, 2025. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.
Business Outlook
The following information presents Amkor’s guidance for the fourth quarter 2025 (unless otherwise noted):
Conference Call Information
Amkor will conduct a conference call on Monday, October 27, 2025, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337.
About Amkor Technology, Inc.
Amkor Technology, Inc. (Nasdaq: AMKR) is the world’s largest U.S. headquartered OSAT and is a global leader in outsourced semiconductor packaging and test services. With a strong track record of innovation, a broad and diverse geographic footprint and solid partnerships with lead customers, Amkor delivers high-quality solutions that enable the world’s leading semiconductor and electronics companies to bring advanced technologies to market. The company’s comprehensive portfolio includes advanced packaging, wafer-level processing, and system-in-package solutions targeting applications for smartphones, data centers, artificial intelligence, automobiles and wearables. For more information visit amkor.com
AMKOR TECHNOLOGY, INC.
Selected Operating Data
Q3 2025
Q2 2025
Q3 2024
Net Sales Data:
Net sales (in millions):
Advanced products (1)
$
1,684
$
1,228
$
1,568
Mainstream products (2)
303
283
294
Total net sales
$
1,987
$
1,511
$
1,862
Packaging services
89
%
88
%
90
%
Test services
11
%
12
%
10
%
Net sales from top ten customers
73
%
72
%
74
%
End Market Distribution Data:
Communications (smartphones, tablets)
51
%
40
%
52
%
Computing (data center, infrastructure, PC/laptop, storage)
19
%
22
%
16
%
Automotive, industrial and other (ADAS, electrification, infotainment, safety)
16
%
20
%
16
%
Consumer (AR & gaming, connected home, home electronics, wearables)
14
%
18
%
16
%
Total
100
%
100
%
100
%
Gross Margin Data:
Net sales
100.0
%
100.0
%
100.0
%
Cost of sales:
Materials
57.5
%
52.9
%
58.4
%
Labor
9.2
%
11.7
%
8.7
%
Depreciation
7.5
%
9.6
%
7.4
%
Other manufacturing
11.5
%
13.8
%
10.9
%
Gross margin
14.3
%
12.0
%
14.6
%
(1) Advanced products include flip chip, memory and wafer-level processing and related test services.
(2) Mainstream products include all other wirebond packaging and related test services.
In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
Non-GAAP Financial Measure Reconciliation:
(in millions)
Q3 2025
Q2 2025
Q3 2024
EBITDA Data:
Net income
$
127
$
55
$
123
Plus: Interest expense
21
17
16
Plus: Income tax expense
28
28
19
Plus: Depreciation & amortization
164
159
151
EBITDA
$
340
$
259
$
309
AMKOR TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended September 30,
For the Nine Months Ended September 30,
2025
2024
2025
2024
Net sales
$
1,986,968
$
1,861,589
$
4,819,935
$
4,688,574
Cost of sales
1,702,478
1,589,105
4,195,965
4,002,072
Gross profit
284,490
272,484
623,970
686,502
Selling, general and administrative
83,211
80,753
211,541
262,379
Research and development
42,352
42,364
130,012
120,103
Total operating expenses
125,563
123,117
341,553
382,482
Operating income
158,927
149,367
282,417
304,020
Interest expense
21,231
15,622
54,850
47,866
Other (income) expense, net
(16,701
)
(8,130
)
(35,833
)
(39,273
)
Total other expense, net
4,530
7,492
19,017
8,593
Income before taxes
154,397
141,875
263,400
295,427
Income tax expense
27,715
19,185
59,813
45,693
Net income
126,682
122,690
203,587
249,734
Net income attributable to non-controlling interests
(93
)
(121
)
(1,453
)
(1,371
)
Net income attributable to Amkor
$
126,589
$
122,569
$
202,134
$
248,363
Net income attributable to Amkor per common share:
Basic
$
0.51
$
0.50
$
0.82
$
1.01
Diluted
$
0.51
$
0.49
$
0.81
$
1.00
Shares used in computing per common share amounts:
Basic
247,158
246,480
247,035
246,239
Diluted
248,302
247,922
248,054
247,798
AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, 2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
1,495,656
$
1,133,553
Short-term investments
614,703
512,984
Accounts receivable, net of allowances
1,399,446
1,055,013
Inventories
399,892
310,910
Other current assets
98,393
61,012
Total current assets
4,008,090
3,073,472
Property, plant and equipment, net
3,833,008
3,576,148
Operating lease right of use assets
101,015
109,730
Goodwill
19,076
17,947
Restricted cash
60,758
759
Other assets
165,535
166,272
Total assets
$
8,187,482
$
6,944,328
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
547,447
$
236,029
Trade accounts payable
925,268
712,887
Capital expenditures payable
368,308
123,195
Short-term operating lease liability
24,665
26,827
Accrued expenses
395,294
356,337
Total current liabilities
2,260,982
1,455,275
Long-term debt
1,264,501
923,431
Pension and severance obligations
82,996
70,594
Long-term operating lease liabilities
54,426
57,983
Other non-current liabilities
181,633
253,880
Total liabilities
3,844,538
2,761,163
Stockholders’ equity:
Preferred stock
—
—
Common stock
294
293
Additional paid-in capital
2,047,017
2,031,643
Retained earnings
2,475,936
2,335,132
Accumulated other comprehensive income (loss)
11,889
7,510
Treasury stock
(226,770
)
(225,033
)
Total Amkor stockholders’ equity
4,308,366
4,149,545
Non-controlling interests in subsidiaries
34,578
33,620
Total equity
4,342,944
4,183,165
Total liabilities and equity
$
8,187,482
$
6,944,328
AMKOR TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the Nine Months Ended September 30,
2025
2024
Cash flows from operating activities:
Net income
$
203,587
$
249,734
Depreciation and amortization
476,277
445,470
Other operating activities and non-cash items
(113
)
22,558
Changes in assets and liabilities
(228,625
)
(166,502
)
Net cash provided by operating activities
451,126
551,260
Cash flows from investing activities:
Payments for property, plant and equipment
(472,531
)
(458,067
)
Proceeds from sale of property, plant and equipment
5,142
5,097
Proceeds from foreign exchange forward contracts
51,947
32,185
Payments for foreign exchange forward contracts
(45,784
)
(58,430
)
Payments for short-term investments
(588,012
)
(441,851
)
Proceeds from sale of short-term investments
140,961
44,361
Proceeds from maturities of short-term investments
350,819
367,522
Other investing activities
2,941
7,431
Net cash used in investing activities
(554,517
)
(501,752
)
Cash flows from financing activities:
Proceeds from short-term debt
—
5,012
Payments of short-term debt
—
(9,731
)
Proceeds from long-term debt
1,000,000
58,727
Payments of long-term debt
(360,527
)
(147,603
)
Payments for debt issuance costs
(13,235
)
—
Payments of finance lease obligations
(44,246
)
(56,359
)
Payments of dividends
(61,299
)
(58,196
)
Other financing activities
(1,830
)
819
Net cash provided by (used in) financing activities
518,863
(207,331
)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash
6,630
(2,868
)
Net increase (decrease) in cash, cash equivalents and restricted cash
422,102
(160,691
)
Cash, cash equivalents and restricted cash, beginning of period
1,134,312
1,120,617
Cash, cash equivalents and restricted cash, end of period
$
1,556,414
$
959,926
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following:
Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.