Coretronic said shipments of its energy-saving and imaging products will fall in the first quarter of 2026 due to seasonal factors and fewer working days, while projecting 10–20% year-on-year shipment growth for both categories across 2026. The company reported stronger fourth-quarter revenue and modest annual results.
Consolidated revenue for the fourth quarter of 2025 was NT$11.297 billion (US$358 million), up 14% sequentially and year-on-year. Gross margin for the quarter was 18.1%, operating profit reached NT$270 million, and net income attributable to shareholders was NT$200 million.
Full-year 2025 consolidated revenue was NT$39.577 billion, nearly flat versus NT$39.669 billion in 2024. Gross margin edged down to 17.3% from 17.8% a year earlier, which management attributed mainly to unfavorable exchange-rate movements. Operating profit for 2025 was NT$131 million and net income after tax totaled NT$358 million.
Outlook and capacity shifts
President Sara Lin said traditional seasonality and calendar effects will reduce shipments of energy-saving products in the first quarter of 2026 compared with the fourth quarter, though volumes are expected to increase versus the first quarter of 2025. She reiterated a company-wide target of 10–20% annual growth in shipments of energy-saving products in 2026. Lin also flagged supply-chain restructuring and tariff pressures linked to geopolitical tensions as ongoing challenges.
Coretronic plans to expand manufacturing capacity at its Vietnam facility and to scale OLED module production in China to capture larger-size display orders. The company introduced front-light modules for e-paper and reflective displays to target outdoor signage and education markets, and is prioritizing automotive displays and green eye-care technologies to comply with tightening regulations in Europe and the US. Lin said the firm is actively developing active anti-peep technology for driver and passenger information displays.
Segment performance and headwinds
Energy-saving products generated NT$5.502 billion in fourth-quarter revenue, a 2% sequential decline but a 12% increase year-on-year. Shipments were about 8.26 million units, down 3% from the third quarter but up 14% from the fourth quarter of 2024. Full-year 2025 revenue for the segment reached NT$19.266 billion with shipments near 30.83 million units, supported by higher monitor and automotive product sales.
Imaging segment revenue was NT$2.626 billion in the fourth quarter, with shipments above 157,000 units—up 29% and 22% respectively from the third quarter. Compared with the fourth quarter of 2024, revenue rose 1.5% while shipments fell 8.6%. Full-year imaging revenue was NT$9.687 billion with shipments around 624,000 units, declines of 24% and 28% year-on-year that Coretronic linked to reciprocal tariffs and currency fluctuations affecting demand.
Lin forecast a roughly 30% drop in imaging shipments for the first quarter of 2026, citing customary off-season patterns and ongoing economic uncertainty. She said demand through the first half of 2026 remains unclear, given defense budget constraints in some markets, inflationary pressures, evolving US tariff policies, and cautious global GDP forecasts.
Growth drivers and market expectations
Despite short-term headwinds, Coretronic identified several potential demand drivers. The company expects the FIFA World Cup 26 to support home projector sales and anticipates stabilization in the engineering projector market as global economic conditions improve. New automotive projection products for interior and exterior applications, and several logistics-related projectors entering mass production, were cited as contributors to an expected 10–20% increase in shipments of imaging products in 2026 compared with 2025.
The company's strategic focus on diversified manufacturing locations, expanded OLED capacity, product extensions into reflective displays, and continued development of automotive and eye-care technologies underscores an approach aimed at mitigating tariff and exchange-rate risks while capturing recovering end-market demand.
Article translated by Jingyue Hsiao and edited by Joseph Tsai
