ISU Petasys (A007660) Q1 2026 earnings summary

Executive summary

• Achieved consolidated Q1 2026 sales of KRW 340.3B, up 14% QoQ and 35% YoY, with operating profit of KRW 67.2B, up 19% QoQ and 41% YoY, and net income of KRW 50.4B (+32%), driven by strong demand for high-end data center, network, and AI-related products.

• Growth supported by expanding AI accelerator sales, capacity expansion, and increasing mix of MultiLam/HDI and high-layer PCB products.

• Order backlog rose to KRW 573.7B at end-1Q26, reflecting robust customer demand and visibility.

• Continued expansion of production capacity, including ongoing investments in new plants, automation, and technology.

• Major customer accounted for 42% of Q1 revenue, with overseas sales representing over 80% of total revenue.

Financial highlights

• 1Q26 consolidated OPM reached 19.7%, up from 18.8% in FY25; gross margin improved to 24.8% from 22.7% YoY.

• Net income for 1Q26 was KRW 50.4B, with gross profit of KRW 84.5B.

• ISUPetasys Korea posted 1Q26 sales of KRW 276.3B (+10% QoQ), operating profit of KRW 45.9B (+7% QoQ).

• ISUPetasys Hunan (China) delivered 1Q26 sales of KRW 78.8B (+21% QoQ), operating profit of KRW 17.1B (+55% QoQ), with OPM rising to 21.7%.

• Basic EPS: KRW 687 (Q1 2025: KRW 606).

Outlook and guidance

• Expects continued sales growth in 2026, driven by global demand for high-value PCBs in AI, data centers, and network infrastructure.

• MultiLam/HDI mass production ramp-up anticipated in 2H26, with capacity projected to reach 13Km²/month by 1H27.

• Ongoing investments in new production lines and plant expansions to meet rising demand.

• New product sample testing and mass production expected between 4Q26 and 1Q27.

• Plans to further diversify product portfolio and enhance customer base.