KCE Electronics Public Company Limited (SET: KCE) faced a turbulent 2025, reporting a net profit of THB 832.7 million, representing a steep 49.5% decline from the THB 1,648.5 million recorded in 2024. This performance reflects a challenging year characterized by global economic uncertainty, foreign exchange volatility, and rising raw material costs.
Revenue Erosion and Currency Impacts
Total revenue fell 12.3% year-on-year to THB 13,338.6 million. While sales in U.S. dollar terms declined by a more moderate 5.32%, the appreciation of the Thai Baht significantly eroded the top line when translated, reducing recognized revenue by approximately THB 677.2 million. Furthermore, a slowdown in the global automotive segment—the company’s primary market—led to a 7.26% drop in total PCB sales volume.
Margin Compression and Operational Challenges
Profitability was squeezed as the gross margin contracted to 18.9%, down from 22% in 2024. A primary driver was the upward trend in copper prices, which increased production costs by roughly 0.93% of sales.
Additionally, production utilization dropped to 65% (compared to 71% in 2024), which increased the burden of fixed manufacturing overheads. Operational output was also temporarily dampened by technology transitions as the firm upgraded machinery for high-density interconnect (HDI) PCBs.
Strategic Shifts and Outlook
Selling and administrative expenses decreased slightly to THB 1,742.7 million. While freight costs fell, administrative expenses were pushed higher by the acquisition of sales offices in Germany and the UK, adding THB 75.6 million in consolidation costs and THB 59.5 million in non-cash amortization.
In response to market softness, management postponed the construction of a new factory, opting to prioritize automation and efficiency in existing plants. Despite the year’s headwinds, KCE maintains a disciplined financial position with a low debt-to-equity ratio of 0.11 times and a $10 million backlog heading into 2026.
