Tear Sheet: Foxconn Industrial Internet Co. Ltd.

This report does not constitute a rating action. We have raised our 2026 revenue and adjusted EBITDA growth forecasts for Foxconn Industrial Internet Co. Ltd (Fii) to 25% and 22%, from 9% and 4% respectively. Fii is a key beneficiary of the buildout of global cloud infrastructure, given its substantial production scale, control of key processes and component supply, and strong relationships with Nvidia and the major cloud service providers. Fii is set to hit another EBITDA record in 2026. Fii's working capital outflow should decline in 2026 due a moderation in sales growth to 25% from 43% in 2025 and an increasing proportion of AI sales under the consignment model. Fii's receivable collection risk is minimal because the company

...Rating Component Scores Foreign currency issuer credit rating A-/Positive/-- Local currency issuer credit rating A-/Positive/-- Business risk Satisfactory Country risk Moderately High Industry risk Moderately High Competitive position Strong Financial risk Minimal Cash flow/leverage Minimal Anchor a- Modifiers Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile a-...

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