Samsung Electro-Mechanics (A009150) Q1 2025 earnings summary

Executive summary

• Q1 revenue reached KRW 2,738.6 billion, up 10% QoQ and 5% YoY, with operating profit at KRW 200.5 billion, up 74% QoQ and 9% YoY.

• Net profit was KRW 133.7 billion, with net margin at 4.9%, and total assets increased 4% QoQ to KRW 13,292.5 billion.

• Operating profit margin was 7.3%, and net income dropped 36% YoY.

Financial highlights

• Gross profit rose to KRW 508.8 billion, up 16% QoQ and 7% YoY, with gross margin at 18.6%.

• Liability to equity ratio rose to 48% from 47% in Q4 and 42% in Q1 2024.

• Debt to equity ratio increased to 22% from 17% YoY.

• Equity/capital adequacy ratio was around 68%, slightly higher than previous quarters.

• Cash at period end was KRW 2,542.3 billion, up 26% QoQ and YoY.

Outlook and guidance

• Q2 industrial and automotive MLCC demand expected to remain strong, driven by AI server and ADAS adoption.

• BGA and FCBGA substrate demand projected to increase in Q2, especially for AI accelerators and servers.

• IT camera module demand may soften seasonally, but automotive and high-performance camera module demand is expected to grow.

• Tariff-related uncertainties and macroeconomic risks may impact demand and visibility.