Foxconn approves record USD 0.22 per share cash dividend for 2025

TAIPEI: Shareholders of Taiwan-based manufacturing giant Hon Hai Precision Industry Co. approved on Friday a proposal to issue a record-high cash dividend per share of NTUSD 7.2 (USD 0.22) on the company’s 2025 earnings, Focus Taiwan CNA reported.

The NTUSD 7.2 (USD 0.22) cash dividend was the highest since Hon Hai, known internationally as Foxconn, went public on the Taiwan Stock Exchange in 1991. Based on its 2025 earnings per share of NTUSD 13.61 (USD 0.42), the dividend payout ratio will be 52.90 per cent, marking the seventh consecutive year the company has had a payout ratio of higher than 50 per cent.

The iPhone assembler and AI server is expected to issue a total of NTUSD 100.93 billion (USD 3.08 billion) in cash dividends. In 2025, Hon Hai posted a new high for net profit of NTUSD 189.35 billion (USD 5.78 billion), up 24 per cent from a year earlier, yielding earnings per share of NTUSD 13.61 (USD 0.42). Its consolidated sales of NTUSD 8.1 trillion (USD 247.31 billion), up 18 per cent from a year earlier, also smashed records.

In its annual report, Hon Hai said that with spending in AI infrastructure expected to grow at a two-digit pace globally this year, it expected to use its strong automated production capabilities and global supply network to support its clients on AI, according to Focus Taiwan CNA.

Speaking at the annual meeting, Hon Hai Chairman Young Liu said AI applications are expected to continue to drive up the company’s bottom line, to EPS above NTUSD 20 (USD 0.61) in two years, after exceeding NTUSD 10 (USD 0.31) in EPS for the fifth consecutive year in 2025.

Liu described AI as the company’s core source of development over the past 10 years as it has continuously launched new applications and products that are very competitive in terms of speed, quality, engineering services, flexibility and costs. Currently, Hon Hai has a more than 40 per cent share of the global AI server market, according to Liu.

Liu said Hon Hai’s shipments of AI server racks are expected to double in 2026 from a year earlier, as the company capitalises on more than USD 700 billion in capital expenditure by Amazon, Microsoft, Google and Meta this year. According to Liu, Hon Hai invests more than NTUSD 100 billion (USD 3.05 billion) a year in research and development, which accounts for 1.5 per cent to 2 per cent of the company’s annual revenue.

Liu said Hon Hai currently has 241 production sites worldwide rolling out a wide range of products, including EVs, an AI data center ecosystem, aerospace products and semiconductors, under a “build, operate, localize” (BOL) model to take on challenges created by “a single country’s tariff policies,” Focus Taiwan CNA reported. (ANI)