Suncom Technology Expects Gradual Quarterly Growth in LEO Satellite Operations in Second Half of 2026, with Further Expansion Planned for 2027

Suncom Technology (3491-TW), a manufacturer of microwave communication components, reported a post-tax net profit of NT$308 million for the second quarter of 2026, with a total net profit of NT$561 million for the first half of the year—exceeding its annual profits in any prior year—an increase of 1.61 times year-on-year. Earnings per share (EPS) reached NT$8.15. The company held its earnings conference today (6th), expressing confidence in an upward operational trend for the second half of the year. Additionally, it forecasts that its 2027 performance will surpass this year’s results.

Suncom’s revenue in July reached NT$230 million, down 10.36% month-on-month but up 82.02% year-on-year. The company anticipates gradual recovery in shipments starting in August, along with two new orders beginning to contribute to revenue. Low Earth orbit (LEO) satellite shipments are expected to continue growing throughout the second half of 2026.

Suncom expects third-quarter 2026 revenue to exceed the second quarter’s NT$902 million, with fourth-quarter revenue projected to grow further and surpass the first-quarter 2026 record of NT$1,020 million. This growth is driven by increasing LEO satellite shipments and rising gross margins.

The company operates under a co-design partnership model with its key customers, enabling deep involvement in product development. As next-generation satellites enter mass production, Suncom’s value contribution within these products is expected to increase further.

In addition to its focus on the LEO satellite and space backbone network markets, Suncom has been actively expanding its product portfolio in recent years, including millimeter-wave amplifier modules, millimeter-wave high-speed connectivity solutions, and terahertz transmission module development projects.

Following approximately NT$800 million in capacity expansion investments in 2025, the company previously announced plans to invest over NT$1 billion in capital expenditures throughout 2026 to meet the ongoing demand for its expanding LEO product line.

Suncom self-reported Q2 2026 revenue of NT$902 million, with a gross margin of 55.6%—down 2.38 percentage points quarter-on-quarter but up 12.25 percentage points year-on-year. Quarterly post-tax net profit reached NT$308 million, up 21.61% quarter-on-quarter and 3.3 times year-on-year. Quarterly EPS stood at NT$4.47.

For the six-month period from January to June 2026, Suncom reported revenue of NT$1.922 billion, with a gross margin of 56.9%, up 9.61 percentage points year-on-year. H1 2026 post-tax net profit reached NT$561 million—surpassing all previous full-year profits—with a 1.61-fold year-on-year increase. EPS reached NT$8.15.