Foxconn posts net profits but cuts guidance
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The news: The world’s largest contract electronics maker, Foxconn, downgraded its full-year outlook citing uncertainty prompted by trade tariffs.
The numbers: The company saw 1Q25 net profit surge 91% on the year to TW$42.12 billion ($2.15 billion), far exceeding the TW$37.8 billion average of 13 analyst estimates compiled by LSEG. Operating profit was up 27% over the same period.
Foxconn’s AI server business grew strongly, with revenue increasing over 50% compared to the same period last year. The company expects AI server revenue in to nearly double in Q2 on-quarter and on-year.
The context: The top iPhone assembler for Apple and maker of Nvidia’s AI servers indicated that despite the growth being seen, it will expand at a slower pace than its March outlook projected. The company is exposed to shifts in US trade policy as it holds a large manufacturing footprint in China and Mexico.
Foxconn chairman Young Liu said: “The US tariff policy has been evolving swiftly over the past month and leading to not-insignificant impact on the global supply chain … That together with forex fluctuations have led us to become more cautious about outlook.” The company does not provide numerical guidance.
Formally known as Hon Hai Precision Industry, the Taiwanese company warned that for every TW$1 rise by the Taiwanese currency against the US dollar, on a yearly average, will reduce Foxconn’s revenue be around 3%.
Earlier this month the Taiwanese dollar surged on speculation that exporters were scrambling to convert US dollar holdings to Taiwanese dollars amid tariff uncertainty. Taiwan’s currency has gained around 8% against the US dollar since the beginning of the year.
Foxconn also said it is seeking to expand its footprint in electric vehicles, and last week announced it had signed a memorandum of understanding with Mitsubishi for the supply of an EV model.
