Samsung Electro-Mechanics (A009150) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 2,738.6 billion, up 10% sequentially and 4.8% year-over-year, with operating profit at KRW 200.5 billion, up 74% sequentially and 9.2% year-over-year.

• Net income was KRW 133.7 billion, with basic EPS of KRW 1,770, and net margin at 4.9%.

• Major customer Samsung Electronics and affiliates accounted for 33.6% of total sales.

Financial highlights

• Gross profit margin improved to 18.6%, with gross profit at KRW 508.8 billion, up 16% sequentially and 7% year-over-year.

• Cash and cash equivalents at quarter-end were KRW 2,542.3 billion, up 26% sequentially and year-over-year.

• Total assets stood at KRW 13,292.5 billion, with equity of KRW 9,047.9 billion.

• Dividend payout for Q1 2025 was KRW 136.1 billion.

• Liability to equity ratio rose to 48%, with debt to equity at 22%.

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.

• Continued investment in capacity expansion and R&D, with KRW 1,524 billion invested in Q1 2025.

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