Compal Electronics Inc (LUX:COMEL)
$ 5.45 (0%) Market Cap: 4.64 Bil Enterprise Value: 4.73 Bil PE Ratio: 27.69 PB Ratio: 1.22 GF Score: 79/100

Q2 2026 Compal Electronics, Inc. Earnings Call Transcript

Aug 13, 2026 / 06:00 AM GMT
Release Date Price: $5.45

Key Points

Positve
  • Non-PC revenue grew 52% year-over-year, driven by AI server ramp-up, with non-PC mix up 5 percentage points to 35%.
  • AI servers now account for 70-80% of server revenue, with Q1 2026 server revenue already equaling all of FY2025.
  • Net profit for Q2 2026 increased 59% quarter-over-quarter and substantially year-over-year, with EPS at 0.73.
  • Gross profit dollar grew 4% quarter-over-quarter and year-over-year, despite margin dilution from component costs.
  • Company is expanding server capacity with new sites in Taiwan and the US, targeting 30-40% server revenue contribution by 2027.
Negative
  • Gross margin declined to 4.6% due to rising component costs, particularly memory prices, which diluted the margin ratio.
  • Notebook shipments fell 13% year-over-year due to component supply constraints and price increases, with FY26 PC shipments expected to decline mid-teens.
  • Consumer demand for smart devices (watches, tablets) is weak, with revenue expected to decline in Q3 due to high prices.
  • Component cost inflation is expected to continue into 2027, potentially worsening margin pressure.
  • Cash conversion cycle days increased to 52 days, and liability ratio rose to 71% due to business expansion.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

2324.TW - Compal Electronics, Inc.
Q2 2026 Compal Electronics, Inc. Earnings Call
Aug 13, 2026 / 06:00AM GMT

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Presentation
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Unidentified_1 [1]
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Okay, thank you, Kathy. Good afternoon. Welcome to Compell's Q2 2026 results conference call. I am Randy Abrams, Head of Taiwan Research at UBS, and I'm joined here by Mr. Tony Bonadero, CEO, Mr. Jack Wang, CFO and spokesperson, and Ms. Tina Chang, Senior Director and Head of IR.

Just to note too, as the operator mentioned, 2:30, there will be a Taiwan drill. That the cellular speed may come down. So for better connection, you can join Wi-FY at that time from 2:30 on. But with that, I'll turn it over to Tina. She'll start with a financial review, followed by Tony for the business update and guidance, and then we'll be happy to open up to questions. With that, over to Tina.

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