Diodes Incorporated Reports 14.5% Revenue Growth to $366.2 Million in Latest Quarter

Diodes Incorporated reported significant financial growth in its latest quarterly results, with net sales reaching $366.2 million for the three months ended June 30, 2025, marking a 14.5% increase from $319.8 million in the same period last year. The company also saw a 10.3% rise from the previous quarter's sales of $332.1 million. Gross profit for the quarter was $115.3 million, up 7.4% from $107.4 million year-over-year, although the gross profit margin decreased slightly to 31.5% from 33.6% due to lower factory utilization and market pricing pressures. Net income surged to $46.1 million, a substantial increase from $8.0 million in the prior year, translating to earnings per share of $0.99, compared to $0.17 in the same quarter of 2024.

In comparison to the previous fiscal period, Diodes experienced a notable increase in both revenue and profitability. For the six months ended June 30, 2025, net sales totaled $698.3 million, a 12.3% increase from $621.7 million in the same period of 2024. The company’s operating expenses also rose, reflecting increased investments in research and development, which amounted to $79.2 million for the first half of 2025, compared to $67.2 million in 2024. This increase in expenses was attributed to higher salaries and benefits, as well as marketing costs.

Strategically, Diodes has made significant moves, including the acquisition of a 43% interest in ATX Semiconductor SDN through a joint venture agreement with Global Advanced Packaging Test Limited. This partnership aims to enhance testing and packaging synergies. Additionally, the company completed the sale of its 56.4% stake in TF Semiconductor Solutions, Inc. to Microchip Technology Incorporated, resulting in a gain of approximately $13.7 million. These strategic developments are part of Diodes' ongoing efforts to strengthen its market position and expand its operational capabilities.

Operationally, Diodes reported a strong demand across its product lines, particularly in Asia, which contributed to a reduction in channel inventory. The company noted that distribution point of sales increased in all global regions, with double-digit growth in Asia year-over-year. As of June 30, 2025, Diodes had cash and cash equivalents of $317.0 million, along with access to $225.0 million in unused borrowing capacity under its revolving credit facility, indicating a solid liquidity position to support future growth initiatives.

Looking ahead, Diodes anticipates continued improvement in market conditions and demand, particularly in the consumer electronics sector. However, the company also acknowledged challenges related to factory utilization and pricing pressures that may limit gross margin expansion in the near term. Management remains optimistic about leveraging its strategic investments and operational efficiencies to drive further growth and enhance shareholder value in the coming quarters.