Giant Confronts Steep Revenue Decline Amid US Import Restrictions

The world’s largest bicycle manufacturer, Taiwan’s Giant, is navigating significant headwinds. A sharp drop in revenue for the 2025 fiscal year and new regulatory obstacles in the United States are pressuring the industry leader. While profitability metrics have shown unexpected resilience, a US import ban is creating substantial uncertainty in this crucial market.

For the recently concluded fiscal year, consolidated revenue fell 15.5% to NT$60.25 billion. Net profit stood at NT$723 million. Despite the challenging environment, the company managed to increase its gross margin slightly to 19.8%. This was partly driven by a shift in its business model, with the share of original equipment manufacturing (OEM) business rising from 26% to 33%.

US Customs Dispute Disrupts Operations

The situation in the United States remains particularly acute. Since September 2025, US Customs has restricted imports from Taiwan under a Withhold Release Order. The financial impact of this measure became starkly evident in February 2026, when monthly revenue plummeted by approximately 40% compared to the same period last year.

Should investors sell immediately? Or is it worth buying Giant?

Management is actively working to resolve the logistical standstill. Talks were held with US customs officials in early March aimed at lifting the import restrictions, for which Giant has already submitted a formal petition. A favorable outcome is seen as essential for fully restoring supply capabilities to the North American market.

Shareholder Returns and Strategic Product Launches

Even amid these operational challenges, Giant plans to reward its shareholders. The board has proposed a cash dividend of NT$1.8 per share. A final decision on this distribution will be made at the annual general meeting scheduled for June 18, 2026. Until then, the pending decision from US customs authorities is likely to be the primary driver of the stock’s trajectory.

Concurrently, the company is focusing on new product lines to stimulate demand. To counter fluctuating sales in Europe and the US, Giant launched updated versions of its Giant Propel and Liv EnviLiv road bike series in the first quarter of 2026. This product offensive is part of a strategy to manage ongoing complexities in global supply chains and intense competitive pressures, as the firm aims for stabilization in the current year.