Samsung Electro-Mechanics (A009150) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached KRW 2,784.6 billion, up 2% QoQ and 8% YoY, with operating profit at KRW 213 billion, up 6% QoQ and 1% YoY; net profit was KRW 129.7 billion, down 3% QoQ and 25% YoY.

• Growth was driven by strong demand in industrial and automotive MLCCs, AI server substrates, and specialty camera modules.

• Revenue for H1 2025 increased by 6.5% YoY to KRW 5,523.3 billion, with all three business segments contributing.

• The company maintained a strong financial position with total assets of KRW 13.2 trillion and a low net debt-to-equity ratio of 7.88%.

Financial highlights

• Q2 pre-tax profit was KRW 171.4 billion; gross profit rose 11% QoQ and 9% YoY to KRW 565.4 billion, with a gross margin of 20.3%.

• SG&A expenses increased 14% QoQ and 15% YoY; cash at period end was KRW 2,541.3 billion.

• Liability to equity ratio ranged from 46% to 50%, equity/assets adequacy ratio stable at 68%.

• Gross profit for H1 2025 was KRW 1,074.2 billion, with EPS at KRW 3,486.

Outlook and guidance

• Q3 expected to see continued solid demand for industrial and automotive MLCCs, AI server substrates, and high-spec camera modules.

• FCBGA substrate demand for servers and AI accelerators projected to grow in H2 2025.

• The company plans to continue investing in capacity expansion and R&D, focusing on automotive, AI, and server applications.

• Dividend payout ratio expected to remain above 20%, with adjustments based on investment needs and cash flow.