Eternal Materials expects operations in 2026 to outperform 2025, driven primarily by growth in precision equipment and scaling shipments of semiconductor advanced packaging materials. The company has increased raw material procurement to mitigate supply risks amid rising oil prices tied to Middle East tensions.
Despite oil price volatility, Eternal Materials said short-term stability has been maintained, but it will monitor mid- to long-term developments and may adjust its product mix and pricing mechanisms to reflect cost changes. The company maintains a safety stock of about one to 1.5 months in Taiwan to avoid short-term shortages and has boosted raw material purchases to guard against supply disruptions.
Two growth engines to lift revenue and margins
Eternal Precision Mechanics, a subsidiary approximately 60% owned by Eternal Materials, is identified as the first major growth driver. As the world's largest maker of mid-to-high-end vacuum lamination machines, the subsidiary reported an optimistic order intake and is expected to deliver stronger revenue and profit growth in the second half of 2026 compared with the same period in 2025. Vacuum lamination equipment demand is supported by robust appetite for advanced build-up film substrates, providing order visibility through the end of 2026.
The second growth engine is the company's push into advanced semiconductor packaging materials. Revenue contributions began in 2026 with initial small-volume shipments in the first quarter of 2026 and anticipated volume increases from the second quarter of 2026 onward. Eternal Materials expects shipments to scale up in the second half of the year to meet customer demand for a stable supply, projecting quarter-over-quarter growth across 2026.
China demand shows tentative recovery
The company reported weaker demand in China since the second half of 2025. Still, it noted improving signs tied to infrastructure projects and broader economic recovery, which could support a rebound in Chinese revenue and profits in 2026 versus 2025. Early 2026 shipment trends highlighted a rebound in key Chinese indicators, with synthetic resin shipments increasing for infrastructure-related products and specialty materials maintaining a larger share of higher-value offerings. Demand for electronic materials, including dry film photoresist, remained stable.
February 2026 monthly revenue fell to NT$2.436 billion (US$75.9 million), down 19.29% year-on-year, resulting in a pre-tax loss of NT$71 million, attributed to fewer working days during the Lunar New Year holiday and a failure to achieve economies of scale. Cumulative revenue for January and February 2026 totalled NT$6.326 billion with a reported pre-tax profit of NT$281 million, roughly matching the same period in 2025; earnings per share before tax were NT$0.24.
Stable segments underpin cautious outlook
In 2025, the company's revenue mix comprised about 48.22% synthetic resins and roughly 25% each for electronic materials and specialty materials. Eternal Materials confirmed steady shipments across these divisions and said synthetic resins and specialty materials remain competitive in China, supporting market share and an optimized product mix. The company plans careful raw material management to maximize order efficiency. It expects the longer-term effects of oil price movements to remain manageable while staying prepared to adjust operations as needed.
Article translated by Jingyue Hsiao and edited by Jerry Chen
