ISU Petasys (007660) Q2 2026 earnings summary

Executive summary

• Achieved consolidated 2Q26 sales of KRW 379.9B, up 12% QoQ, and operating profit of KRW 77.1B, up 15% QoQ, driven by AI ASIC/network demand and capacity expansion.

• H1 2026 consolidated revenue reached KRW 720.2B, with operating income of KRW 144.3B, up 46% and 61% YoY, respectively.

• Net income for H1 2026 was KRW 110.2B, a 58% YoY increase.

• Growth supported by high-value product focus, especially AI accelerators and switches, and expanded customer demand.

• Continued expansion of production capacity, including new plant investments and automation.

Financial highlights

• 2Q26 consolidated sales: KRW 379.9B (+12% QoQ, +50% YoY); operating profit: KRW 77.1B (+15% QoQ, +62% YoY); OPM: 20.3%.

• YTD 2Q26 sales: KRW 720.2B; net income: KRW 110.2B; OPM: 20.0%; debt ratio: 71%.

• ISUPetasys Korea 2Q26 sales: KRW 308.2B (+12% QoQ); operating profit: KRW 54.9B (+20% QoQ).

• ISUPetasys Hunan (China) 2Q26 sales: KRW 86.7B (+10% QoQ); operating profit: KRW 16.9B (-1% QoQ).

• Gross margin improved to 25.7% in H1 2026 from 23.6% in H1 2025.

Outlook and guidance

• Sales growth expected to continue, driven by AI demand and ongoing capacity expansion.

• Mass production of new AI accelerators and switches scheduled for Oct. 2026.

• Order backlog expanded to KRW 622.2B in 2Q26, reflecting strong customer demand.

• Plant 6 capacity expansion to increase sales capacity by 25% by 1Q27, with further expansion planned.

• Focus on product portfolio diversification and global supply chain optimization.