Chunghwa Telecom Co., Ltd.

Q2 2026 consolidated revenue reached TWD 61.36 billion, up 8.2% year over year, and the company said this was its highest second-quarter revenue since 2010. Income from operations rose 5.7% year over year, EPS was TWD 1.38 versus TWD 1.31 a year ago, and EBITDA increased 4.1% to TWD 23.52 billion with an EBITDA margin of 38.32%. For the first half, revenue increased 7.8% year over year, operating income rose 5.2% to TWD 26.36 billion, net income increased 3.9% to TWD 20.75 billion, EPS was TWD 2.68 versus TWD 2.57, and EBITDA rose 3.8% to TWD 46.82 billion. Management said Q2 results came in above the high end of guidance across revenue, operating income, net income, EPS, and EBITDA, and reiterated confidence in achieving full-year targets. CapEx in the first half was TWD 9.85 billion, down 14.3% year over year, and first-half free cash flow was TWD 21.89 billion.

President Lin framed the quarter as strong across both the core telecom business and new growth areas, emphasizing that revenue, operating income, net income, and EPS all exceeded the high end of guidance. He stressed that AI infrastructure is becoming a strategic pillar, pointing to the launch of the Lunping AI data center, the Taichung colocation MOU with Taiwan Stock Exchange, and the IOWN/AAA Hub strategy as long-term differentiators. His tone was confident and forward-looking, with repeated references to converting infrastructure investment into long-term financial returns.

The CFO highlighted that Q2 consolidated revenue of TWD 61.36 billion grew 8.2% year over year, while operating income rose 5.7%, EPS reached TWD 1.38, and EBITDA was TWD 23.52 billion with a 38.32% margin. For the first half, she cited revenue of TWD 26.36 billion operating income, TWD 20.75 billion net income, EPS of TWD 2.68, and EBITDA of TWD 46.82 billion, all supporting confidence in full-year targets. On the balance sheet, she noted a 31% reported debt ratio, 23.72% adjusted debt ratio, current ratio of 122.3%, net debt-to-EBITDA of 0, and interest-bearing debt ratio of about 5%. She also said first-half CapEx was TWD 9.85 billion, down 14.3% year over year, with more CapEx expected in the second half, and first-half free cash flow at TWD 21.89 billion.

Analysts focused on the durability of the international ICT surge, asking how much of it is project-based and what long-term visibility management sees. Management said demand is being driven by AI infrastructure, international connectivity, and data center services in the U.S. and Southeast Asia, and later said U.S. AI supply-chain opportunities alone could amount to several billion NT dollars over the next two to three years. Another question centered on the Lunping AIDC investment and expected IRR; management declined to disclose project IRR or total capital needed, but said build-out will be phased and investment decisions follow a disciplined capital allocation framework. On IOWN, management said it is still early-stage, revenue will take time, and the initiative is intended to link distributed AIDCs and build future competitive advantage in next-generation networking.