AUO Corp. posted a NT$3.29 billion ($102.4 million) net profit in the first quarter, returning to profitability after a challenging period as panel demand recovered and margins improved.
The Taiwanese display maker reported consolidated revenue of NT$72.1 billion in Q1, marking a 21.2% year-on-year increase and 5% quarter-on-quarter growth. Gross margin recovered to 12.2%, pushing the company’s core business back into the black with an operating profit of NT$1.14 billion.
Chairman Peng Shuang-lang addressed growing concerns about US-China tariff tensions, noting that while display panels themselves face limited direct impact, end customers could face greater pressure. AUO’s exposure remains relatively contained, with only 2% of sales directly shipped to the US market.
Looking ahead to Q2, CEO Ko Fu-jen expects slight revenue declines in the display business after an unusually strong first quarter that saw some customers pulling orders forward in anticipation of tariffs. However, recent exemptions for flat-panel displays from the highest US tariff rates have partially mitigated immediate concerns.
The company has established an emergency response platform to monitor rapidly changing tariff implementations, with Ko citing USMCA benefits for automotive display products shipped through Mexico as a strategic advantage.
