Injection-molded parts maker Deswell's H1 sales drop on weak demand, margins prop profit

Reuters
Nov 13, 2025
Injection-molded parts maker Deswell's H1 sales drop on weak demand, margins prop profit

Overview

  • Deswell's fiscal H1 2026 net sales fall 5.5% yr/yr due to decreased demand

  • Company's gross margin rises to 23.4% from 19.5%, driven by higher-margin offerings

  • Deswell's operating income increases to $2.5 mln, net income rises to $7.5 mln

Outlook

  • Deswell highlights strategic priorities to stabilize performance amid challenging economic conditions

  • Company focuses on higher-margin offerings and new product introductions to drive growth

Result Drivers

  • DECREASED DEMAND - Co attributes decline in net sales to softened worldwide demand

  • HIGHER-MARGIN OFFERINGS - Co says electronic segment gross margin increased due to enhanced value-added services and cost control measures

  • LABOR COSTS - Co reports slight decrease in plastic segment gross margin due to increased labor costs from minimum wage hike

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Sales

$33.23 mln

H1 EPS

$0.47

H1 Net Income

$7.52 mln

H1 Operating Income

$2.51 mln

Press Release: ID:nBw6QNQyZa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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