Diodes Incorporated Reports Q1 2025 Financial Results with $332.1M in Net Sales

Diodes Incorporated reported its financial results for the first quarter of 2025, revealing a net sales figure of $332.1 million, which represents a 10% increase from $302.0 million in the same period of 2024. However, this figure reflects a decrease of 2.1% compared to the previous quarter's sales of $339.3 million. The company's gross profit for the quarter was $104.7 million, up 5.1% from $99.6 million year-over-year, but down from $110.9 million in the fourth quarter of 2024. The gross profit margin decreased to 31.5% from 33.0% in the prior year, attributed to lower factory utilization.

The company reported a net loss of $4.4 million for the quarter, a significant decline from a net income of $14.0 million in the first quarter of 2024. This resulted in a loss per share of $0.10, compared to earnings of $0.30 per diluted share in the same quarter last year. Operating expenses increased to $103.4 million, up 19.3% from $86.6 million in the prior year, primarily due to higher selling, general, and administrative expenses. The company also recognized a $5.8 million impairment charge on an equity investment during the quarter.

In terms of operational developments, Diodes reported a cash flow from operations of $56.7 million, a notable improvement compared to a cash outflow of $31.1 million in the same quarter of 2024. The company’s cash, cash equivalents, and short-term investments totaled $343.9 million as of March 31, 2025, with an additional $225.0 million available under its revolving credit facility. The company also completed the acquisition of a minority interest in a joint venture in Taiwan for approximately $4.7 million, increasing its ownership to 100%.

Geographically, sales in Asia were particularly strong, contributing significantly to the overall increase in net sales. The automotive and industrial markets accounted for 42% of first-quarter net sales, reflecting expanding opportunities in these sectors. The company noted that channel inventory levels are normalizing, which could lead to improved gross margins as demand stabilizes. However, the company remains cautious about potential impacts from tariffs and trade barriers, which could affect costs and demand for its products.

Looking ahead, Diodes Incorporated expressed optimism about future performance, particularly as demand in the automotive and industrial markets continues to grow. The company anticipates that as channel inventory normalizes and global demand improves, it will see a more substantial expansion in gross margins. The management believes that the current liquidity position and available credit will support its operational and capital needs for at least the next 12 months.