Amkor Technology Inc.

10/27/2026 | Press release | Distributed by Public on 10/27/2026 13:02

Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Overview
Amkor is the world's largest U.S. headquartered outsourced semiconductor assembly and test provider ("OSAT"). We are an industry leader in developing and commercializing advanced packaging and test technologies, which we believe provide substantial value to our customers. Our primary financial objective is profitable sales growth. To achieve this goal, we are focused on leveraging our technology leadership and innovation, providing our customers with a geographically diverse manufacturing footprint, partnering with lead customers in the key markets of high-performance computing ("HPC") and artificial intelligence ("AI"), automotive, Internet-of-Things ("IoT") and mobile communications, selectively growing our scale and scope through strategic investments and optimizing utilization of existing assets.
Amkor is a global leader in advanced semiconductor packaging and test technologies. Our technology leadership encompasses areas such as high density fan-out ("HDFO"), 2.5D integration, advanced flip chip, fine pitch bumping, wafer-level processing and advanced system-in-package ("SiP") solutions which support the industry's drive toward smaller form factors, higher integration, improved performance and lower power consumption. We provide turnkey solutions that include package design, wafer bump, wafer probe, wafer back-grind, packaging, burn-in, system level and final test and drop shipment services. Our extensive line of packaging and test services covers analog, digital, logic, mixed signal, memory, sensors and radio frequency devices. This breadth of services allows customers to limit the number of suppliers and focus their resources on semiconductor design and wafer fabrication. Our commitment to technology leadership is reinforced by ongoing investment in research and development, and we intend to continue to leverage our investments in advanced technology to meet the demand for these services in key markets.
Amkor's broad and strategically located manufacturing footprint is a key differentiator, enabling us to deliver flexible, resilient and cost-effective solutions to customers worldwide. With facilities located in key manufacturing regions in Asia and Europe, we provide customers with multiple options to mitigate risk, diversify supply chains and support regionalization initiatives. As a U.S. headquartered OSAT, we are expanding our manufacturing footprint with the construction of a new facility in Arizona. Construction began in the second half of 2025, and we believe that this investment will strengthen our ability to serve customers seeking to regionalize their supply chains and will enhance our participation in U.S. semiconductor initiatives. In addition, we continue to scale production in our Vietnam facility, which opened in 2024, further increasing our capacity and operational flexibility in Asia. Our scale and geographic diversity allow us to qualify production at multiple sites and optimize asset utilization.
Amkor has built long-standing relationships with most of the world's leading semiconductor companies over the last five decades. Our operational excellence, high quality, reliability and predictability have been key to attracting and retaining customers. Our collaborative approach enables us to work closely with customers and suppliers to co-develop proprietary process technologies, accelerate time-to-market, improve quality and lower costs. We work closely with lead customers to deliver advanced packaging solutions tailored to evolving industry needs.
HPC supporting AI and increasing demand for improved networking speed and storage within data centers, cloud computing, PCs and laptops are driving increasing demand for semiconductors and advanced packaging in the computing end market. Increasing semiconductor content in automobiles is driving demand for advanced packaging to enable safety features such as advanced driver assistance systems ("ADAS"), in-car computing, radar and digital cockpit features such as infotainment displays and telematics. Increasing battery voltage, higher voltage power converters, onboard chargers, automotive inverter components and microcontrollers also require innovative power packaging solutions. Hearables, watches and augmented and virtual reality devices integrate multiple functions, such as processors, sensors and connectivity devices, into small form factors, which requires innovation in advanced packaging. We have a strong position across multiple device functionalities within premium and high-tier smartphones. We are collaborating with industry leaders as smartphones transition to include artificial intelligence and drive semiconductor growth through the adoption of new wireless standards, integration of a broad range of applications, enhanced features and higher performance requirements to support increased data processing. The trend to greater functionality drives miniaturization and innovation enabled by advanced packaging.
As a supplier in the semiconductor industry, our business is cyclical and impacted by broad economic factors. Historical trends indicate there has been a strong correlation between worldwide gross domestic product levels, consumer spending and semiconductor industry cycles. The semiconductor industry has experienced significant and sometimes prolonged
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cyclical upturns and downturns in the past. We cannot predict the timing, strength or duration of any correction, economic slowdown, recession or subsequent economic recovery.
We operate in a capital-intensive industry. Servicing our current and future customers requires that we incur significant operating expenses and continue to make significant capital expenditures, which are generally made in advance of expected revenues and without firm customer commitments. We fund our operations, including capital expenditures and other investments and servicing principal and interest obligations with respect to our debt, from cash flows from our operations, existing cash and cash equivalents, borrowings under available debt facilities and/or proceeds from any additional debt or equity financing. Our liquidity is affected by, among other factors, volatility in the global economy and credit markets, the performance of our business, our capital expenditures and other investment levels, other uses of our cash, including any payments of dividends and purchases of stock under any stock repurchase program, any acquisitions or investments in joint ventures and any decisions we might make to either repay debt and other long-term obligations out of our operating cash flows or refinance debt at or prior to maturity with the proceeds of debt or equity financings. As of September 30, 2026, we had cash and cash equivalents and short-term investments of $1,603.0 million and $773.2 million, respectively.
Our results of operations and cash flows have historically fluctuated significantly from quarter to quarter due to many factors, including the seasonality of our business, the cyclical nature of the semiconductor industry and other factors discussed in the "Risk Factors" section in Part II, Item 1A of this Form 10-Q. We continue to monitor the recent changes in global trade policy, including tariffs and related trade actions announced by the U.S. and other countries. The degree to which such tariffs and other related actions impact our business, financial condition and results of operations will depend on future developments, which are uncertain. We will continue to make prudent investments, and we will closely manage capacity expansion and control costs in response to any changes in market conditions.
Financial Summary
Our net sales increased $3.6 million, or 0.2%, to $1,990.6 million for the three months ended September 30, 2026 compared to $1,987.0 million for the three months ended September 30, 2025, primarily due to growth in the computing and automotive and industrial end markets, partially offset by a decrease in the communications end market.
Gross margin for the three months ended September 30, 2026 increased to 18.3% compared to 14.3% for the three months ended September 30, 2025. The increase in gross margin was primarily due to an increase in the proportion of products sold with lower material content.
Operating income margin for the three months ended September 30, 2026 increased to 11.3% compared to 8.0% for the three months ended September 30, 2025, primarily due to the increase in our gross margin discussed above.
Our capital expenditures totaled $1,236.8 million for the nine months ended September 30, 2026 compared to $472.5 million for the nine months ended September 30, 2025. Our spending was primarily focused on investments in advanced packaging and test equipment and the Arizona Facility.
Net cash provided by operating activities was $868.3 million for the nine months ended September 30, 2026 compared to $451.1 million for the nine months ended September 30, 2025. This increase was primarily due to higher operating profits, changes in contract liabilities due to customer advance payments and changes in working capital.
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Results of Operations
The following table sets forth certain operating data as a percentage of net sales for the periods indicated:
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 2026 2025
Net sales 100.0 % 100.0 % 100.0 % 100.0 %
Cost of sales:
Materials 50.7 % 57.5 % 52.2 % 54.6 %
Labor 10.1 % 9.2 % 10.3 % 10.8 %
Depreciation 8.6 % 7.5 % 8.8 % 9.0 %
Other manufacturing costs 12.3 % 11.5 % 12.2 % 12.7 %
Gross margin 18.3 % 14.3 % 16.5 % 12.9 %
Selling, general and administrative 5.0 % 4.2 % 4.9 % 4.4 %
Research and development 2.0 % 2.1 % 2.2 % 2.7 %
Operating income 11.3 % 8.0 % 9.4 % 5.9 %
Net income attributable to Amkor 9.6 % 6.4 % 8.0 % 4.2 %
Net Sales
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands, except percentages)
Net sales $ 1,990,557 $ 1,986,968 $ 3,589 0.2 % $ 5,573,223 $ 4,819,935 $ 753,288 15.6 %
The increase in net sales for the three months ended September 30, 2026 compared to the three months ended September 30, 2025 was primarily due to growth in the computing and automotive and industrial end markets, partially offset by a decrease in the communications end market. The computing and automotive and industrial end markets both grew 37% for the three months ended September 30, 2026 compared to 2025, primarily due to strength in datacenter and ADAS applications. The communications end market decreased 28% for the three months ended September 30, 2026 compared to 2025, primarily driven by timing for transfer of SiP programs from our factories in Korea to Vietnam and related preproduction activities.
The increase in net sales for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 was due to growth across all end markets. The automotive and industrial and computing end markets grew 33% and 27%, respectively, for the nine months ended September 30, 2026 compared to 2025, primarily due to strong demand across advanced applications. Additionally, the communications and consumer end markets both grew 6% for the nine months ended September 30, 2026 compared to 2025, primarily driven by increased supported content in premium tier smartphones during the first half of the year and strength in traditional consumer products.
Gross Profit and Gross Margin
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands, except percentages)
Gross profit $ 363,529 $ 284,490 $ 79,039 $ 921,151 $ 623,970 $ 297,181
Gross margin 18.3 % 14.3 % 4.0 % 16.5 % 12.9 % 3.6 %
Our cost of sales consists principally of materials, labor, depreciation and manufacturing overhead. Since a substantial portion of the costs at our factories is fixed, there tends to be a strong relationship between our revenue levels and gross margin. Accordingly, relatively modest increases or decreases in revenue can have a significant effect on margin and on labor and other manufacturing costs as a percentage of revenue, depending on product mix, utilization, foreign currency exchange rate movements and seasonality. We have expanded our business in advanced packaging, which tends to have
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higher material costs than our other products. An increase in production of these higher material cost products could have an impact on our profitability, depending on overall utilization.
Gross profit and gross margin increased for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to an increase in the proportion of products sold with lower material content.
Gross profit and gross margin increased for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to higher factory utilization driven by the increase in net sales and an increase in the proportion of products sold with lower material content, partially offset by increased overhead and employee compensation costs.
Selling, General and Administrative
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands, except percentages)
Selling, general and administrative $ 99,026 $ 83,211 $ 15,815 19.0 % $ 274,917 $ 211,541 $ 63,376 30.0 %
Selling, general and administrative expenses increased for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to increased employee compensation and software maintenance costs.
Selling, general and administrative expenses increased for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily due to the prior year net amount recognized for a cash receipt subject to bankruptcy proceedings related to our Nanium acquisition in May 2017 ("Nanium Insolvency Receipt"). The increase in selling, general and administrative expenses in 2026 compared to 2025 was also due to higher employee compensation and software maintenance costs, partially offset by a gain on disposal of fixed assets in 2026. The amount recognized from the Nanium Insolvency Receipt for the nine months ended September 30, 2025, net of amounts remitted to the selling shareholders, was $32.4 million. The gain recognized from the disposal of fixed assets for the nine months ended September 30, 2026 was approximately $21 million.
Research and Development
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands, except percentages)
Research and development $ 39,792 $ 42,352 $ (2,560) (6.0) % $ 121,382 $ 130,012 $ (8,630) (6.6) %
Research and development activities are focused on developing new packaging and test services and improving the efficiency and capabilities of our existing production processes. The costs related to our technology and product development projects are included in research and development expense until the project moves into production. Once production begins, the costs relating to production become part of the cost of sales, including ongoing depreciation for the equipment previously held for research and development activities.
Research and development expenses decreased for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, primarily due to projects moving into production, partially offset by development projects in new advanced packaging technologies.
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Other Income and Expense
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands, except percentages)
Interest expense
$ 17,916 $ 21,231 $ (3,315) (15.6) % $ 52,597 $ 54,850 $ (2,253) (4.1) %
Interest income (22,728) (17,109) (5,619) 32.8 % (59,120) (46,554) (12,566) 27.0 %
Foreign currency (gain) loss, net (547) (62) (485) >100% 2,066 10,725 (8,659) (80.7) %
Other, net (92) 470 (562) >(100)% (336) (4) (332) >100%
Total other (income) expense, net $ (5,451) $ 4,530 $ (9,981) >(100)% $ (4,793) $ 19,017 $ (23,810) >(100)%
Interest expense decreased for the three months ended September 30, 2026 compared to the three months ended September 30, 2025, primarily due to increased capitalized interest associated with construction of the Arizona Facility.
Interest income increased for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, primarily due to increases in our cash and cash equivalent and available-for-sale debt investment balances. In addition, the increase in interest income for the nine months ended September 30, 2026 compared to 2025 was partially offset by lower interest rates.
The changes in foreign currency (gain) loss, net for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were primarily due to the weakening of the U.S. dollar compared to the foreign currencies of our subsidiaries and the associated impact on our unhedged net monetary exposures in 2025.
Income Tax Expense
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2026 2025 Change 2026 2025 Change
(In thousands)
Income tax expense $ 39,243 $ 27,715 $ 11,528 $ 79,891 $ 59,813 $ 20,078
Income tax expense, which includes foreign withholding taxes, minimum taxes and certain tax credits, reflects the applicable tax rates in effect in the various countries where our income is earned and is subject to volatility depending on the relative mix of earnings in each location. Income tax expense increased for the three and nine months ended September 30, 2026 compared to the three and nine months ended September 30, 2025, primarily due to an increase in income before income taxes.
During the nine months ended September 30, 2026 and 2025, our subsidiaries in Singapore and Vietnam operated under various conditional reduced tax rates. The conditional reduced tax rates granted to certain operations in Korea expired during 2025. As these conditional reduced tax rates expire, income earned in these jurisdictions will be subject to higher statutory income tax rates, which may cause our effective tax rate to increase.
See Note 4 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q for additional information about our income tax expense.
Liquidity
We assess our liquidity based on our current expectations regarding sales and operating expenses, capital spending, dividend payments, stock and debt repurchases, debt service requirements, lease obligations and other funding needs. Based on this assessment, we believe that our cash flow from operating activities, together with existing cash and cash equivalents, short-term investments and availability under our credit facilities, will be sufficient to fund our working capital, capital expenditures, dividend payments, debt service, debt repurchases and other financial requirements for at least the next 12 months.
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Our liquidity is affected by, among other factors, volatility in the global economy and credit markets, the performance of our business, our capital expenditure levels, other uses of our cash including any dividends and purchases of stock or debt under any repurchase program, any acquisitions, joint ventures or other investments and our ability to either repay debt out of operating cash flow or refinance it at or prior to maturity with the proceeds from debt or equity offerings. There can be no assurance that we will generate the necessary net income or operating cash flows, or be able to borrow sufficient funds, to meet the funding needs of our business beyond the next 12 months due to a variety of factors, including the cyclical nature of the semiconductor industry and other factors discussed in Part II, Item 1A of this Form 10-Q.
Our primary source of cash and the source of funds for our operations are cash flows from operations, current cash and cash equivalents, short-term investments, borrowings under available credit facilities and proceeds from debt or equity financings. Please refer to Note 7 and Note 11 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q for additional information on our investments and borrowings, respectively.
As of September 30, 2026, we had cash and cash equivalents and short-term investments of $2,376.2 million. Included in our cash and short-term investments balances as of September 30, 2026 is $1,356.5 million held offshore by our foreign subsidiaries. We have the ability to access cash held offshore by our foreign subsidiaries primarily through the repayment of intercompany debt obligations. If we were to distribute this offshore cash to the United States as dividends from our foreign subsidiaries, the dividends generally would not be subject to U.S. federal income tax, but the distributions may be subject to foreign withholding and state income taxes.
For certain accounts receivable, we use non-recourse factoring arrangements with third-party financial institutions to manage our working capital and cash flows. Under these arrangements, we sell receivables to a financial institution for cash at a discount to the face amount. Available capacity under these arrangements is dependent on the level of our trade accounts receivable eligible to be sold, the financial institutions' willingness to purchase such receivables and the limits provided by the financial institutions. These factoring arrangements can be reduced or eliminated at any time due to market conditions and changes in the creditworthiness of customers. For the nine months ended September 30, 2026 and 2025, we sold receivables totaling $30.4 million and $88.7 million, respectively, net of discounts and fees, which were insignificant for the respective periods.
We operate in a capital-intensive industry. Servicing our current and future customers may require that we incur significant operating expenses and make significant investments in equipment and facilities, which are generally made in advance of the related revenues and without firm customer commitments.
In December 2024, we signed a Direct Funding Agreement with the U.S. Department of Commerce (the "Commerce Department") for the award of up to $407 million in government incentives pursuant to the CHIPS Act, and no funds have been received to date. The award requires us to achieve construction and production milestones over the next several years. In addition, we are eligible to receive a 35% investment tax credit on qualified investments in U.S. semiconductor manufacturing under the CHIPS Act and the One Big Beautiful Bill Act ("OBBBA").
The maximum amount available to draw under the 2025 Revolving Credit Facility is $1.0 billion. The 2025 Revolving Credit Facility includes an uncommitted optional accordion of up to $200.0 million, which may be incurred in the form of revolving commitment increases or term loans. As of September 30, 2026, we had availability of $1.0 billion under the 2025 Revolving Credit Facility. As of September 30, 2026, our foreign subsidiaries also had $62.1 million available to be borrowed under term loan credit facilities.
In May 2026, we issued $1.15 billion of the 2031 Notes. The 2031 Notes were issued pursuant to, and are governed by, an indenture, dated as of May 5, 2026, between us and U.S. Bank Trust Company, National Association, as trustee. In connection with the issuance of the 2031 Notes, we entered into the Capped Calls. The net proceeds from the offering of the 2031 Notes were used to fund the cost of entering into the Capped Calls and for general corporate purposes, including capital expenditures. For additional information regarding the 2031 Notes and Capped Calls, please refer to Note 11 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
As of September 30, 2026, we had debt of $2,467.2 million, with $149.5 million payable within 12 months. As of September 30, 2026, the interest payment obligations, based on stated coupon rates for fixed rate debt and interest rates applicable at September 30, 2026 for variable rate debt, were $330.3 million during the remaining term of the debt. Interest payment obligations payable within 12 months were $64.3 million. We were in compliance with all debt
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covenants as of September 30, 2026, and we expect to remain in compliance with these covenants for at least the next 12 months. For additional information regarding our debt arrangements, please refer to Note 11 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
Certain of our debt agreements contain affirmative and negative covenants including, among others, covenants to maintain a minimum interest coverage ratio and a maximum consolidated leverage ratio, which restrict our ability to pay dividends and could restrict our operations. These restrictions do not currently have a material impact on our ability to make dividend payments or stock repurchases.
The debt of Amkor Technology, Inc. is structurally subordinated in right of payment to all existing and future debt and other liabilities of our subsidiaries. From time to time, Amkor Technology, Inc., ATSH and Guardian guarantee certain indebtedness.
In order to reduce our debt and future cash interest payments, we may from time to time repurchase or redeem our outstanding senior notes for cash or exchange shares of our common stock for our outstanding senior notes. Any such transaction may be made in the open market, through privately negotiated transactions or otherwise and would be subject to the terms of our indentures and other debt agreements, market conditions and other factors.
We lease certain machinery and equipment, office space and manufacturing facilities. As of September 30, 2026, our total remaining operating lease obligations and finance lease obligations were $98.5 million and $185.6 million, respectively, with $25.2 million and $52.2 million payable within 12 months, respectively. The lease obligations represent our future minimum lease payments including interest payments.
We have off-balance sheet purchase obligations for capital expenditures, long-term supply contracts and other contractual commitments. As of September 30, 2026, the purchase obligations were $2,687.6 million, with $2,635.3 million payable within 12 months.
We enter into customer advance payment agreements from time to time, some of which require standby letters of credit. As of September 30, 2026, we expect to receive approximately $1.9 billion of customer advance payments in the next 12 months, $200 million of which will require a standby letter of credit upon receipt. In October 2026, we entered into an advance payment agreement with a customer pursuant to which we expect to receive approximately $1.3 billion in 2027. For additional information regarding our customer advance payments, please refer to Note 1 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
Capital Returns
In November 2022, we announced our intention to return 40 percent to 50 percent of cumulative free cash flow generated over time, beginning 2022. This return may be in the form of dividends and stock repurchases, subject to a variety of factors, including strategic investments, other capital allocation priorities and Board of Directors' approval.
During the nine months ended September 30, 2026, we paid total quarterly cash dividends of $62.1 million, and we currently anticipate that we will continue to pay quarterly cash dividends in the future. However, the payment, amount and timing of future dividends remain within the discretion of our Board of Directors and will depend upon our results of operations, financial condition, cash requirements, debt restrictions and other factors.
On April 23, 2026, our Board of Directors adopted a stock repurchase program (the "Stock Repurchase Program") authorizing the repurchase of up to $300.0 million of our common stock, exclusive of any fees, commissions or other expenses. Under the Stock Repurchase Program, the purchase of stock may be made in the open market or through privately negotiated transactions. The timing, manner, price and amount of any repurchases will be determined by us at our discretion and will depend upon a variety of factors including economic and market conditions, the cash needs and investment opportunities for the business, the current market price of our stock, applicable legal requirements and other factors. During the nine months ended September 30, 2026, we repurchased 0.7 million shares of common stock for an aggregate purchase price of $32.3 million. At September 30, 2026, $267.7 million was available for repurchase.
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Capital Resources
We make significant capital expenditures in order to service the demand of our customers. During the nine months ended September 30, 2026, our capital expenditures totaled $1,236.8 million, which are primarily focused on investments in advanced packaging and test equipment and the Arizona Facility.
We expect that our 2026 capital expenditures will be approximately $2.5 billion. The increase from 2025 is primarily due to the construction of the Arizona Facility. Ultimately, the amount of our 2026 capital expenditures will depend on several factors including, among others, the timing and implementation of any capital projects under review, including the progress of construction of the Arizona Facility, the performance of our business, economic and market conditions, the cash needs and investment opportunities for the business, the need for additional capacity to service anticipated customer demand, equipment lead times and the availability of cash flows from operations or financing. The primary sources of funds for our capital expenditures are cash flows from operations, current cash and cash equivalents, short-term investments, borrowings under available credit facilities and proceeds from any additional debt or equity financings. Please refer to Note 7 and Note 11 to our Consolidated Financial Statements in Part 1, Item 1 of this Form 10-Q for additional information on our investments and borrowings, respectively.
In addition, we are subject to risks associated with our capital expenditures, including those discussed in the "Risk Factors" section in Part II, Item 1A of this Form 10-Q under the caption "We make substantial investments in equipment and facilities to support the demand of our customers, which may materially and adversely affect our business if the demand of our customers does not develop as we expect or is adversely affected."
Cash Flows
Net cash provided by (used in) operating, investing and financing activities for the nine months ended September 30, 2026 and 2025, was as follows:
For the Nine Months Ended September 30,
2026 2025
(In thousands)
Operating activities $ 868,345 $ 451,126
Investing activities (1,344,185) (554,517)
Financing activities 833,512 518,863
Operating activities: Our cash flow provided by operating activities for the nine months ended September 30, 2026 increased by $417.2 million compared to the nine months ended September 30, 2025, primarily due to higher operating profits, changes in contract liabilities due to customer advance payments and changes in working capital.
Investing activities: Our cash flow used in investing activities for the nine months ended September 30, 2026 increased by $789.7 million compared to the nine months ended September 30, 2025, primarily due to higher payments for property, plant and equipment and net payments for short-term investments in the current year. Payments for property, plant and equipment can fluctuate based on the timing of purchase, receipt and acceptance of equipment.
Financing activities: The changes in financing activities for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 were primarily due to increased net debt borrowings, partially offset by payments for Capped Calls and repurchase of common stock.
We provide the following supplemental data to assist our investors and analysts in understanding our liquidity and capital resources. We define "free cash flow" as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. Free cash flow is not defined by U.S. GAAP. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, our ability to service debt, our ability to fund capital expenditures and our ability to pay dividends and the amount of dividends to be paid. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not
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deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies.
For the Nine Months Ended September 30,
2026 2025
(In thousands)
Net cash provided by operating activities $ 868,345 $ 451,126
Payments for property, plant and equipment (1,236,806) (472,531)
Proceeds from sale of and grants for property, plant and equipment 49,393 8,248
Free cash flow $ (319,068) $ (13,157)
New Accounting Pronouncements
For information regarding recently adopted and recently issued accounting standards, please refer to Note 1 to our Consolidated Financial Statements in Part I, Item 1 of this Form 10-Q.
Amkor Technology Inc. published this content on October 27, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 27, 2026 at 19:02 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]