Samsung Electro-Mechanics (009150) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached KRW 3,457.2 billion, up 8% QoQ and 24% YoY, with operating profit at KRW 440.4 billion, up 57% QoQ and 107% YoY.

• Net profit was KRW 315.7 billion, up 143% YoY and 27% QoQ, with total assets at KRW 16,566 billion.

• Revenue for the first half of 2026 increased 20.7% YoY to KRW 6,666.3 billion, with operating income at KRW 720.9 billion.

• The company maintained a robust financial position, with an equity ratio of 63.6%.

Financial highlights

• Gross profit margin improved to 24.4% in Q2 2026 and 22.6% for H1 2026.

• Operating profit margin rose to 12.7% in Q2 2026 and 10.8% for H1 2026.

• Cash and cash equivalents increased to KRW 3.31 trillion, up 30% YoY.

• Dividend payout for the period was KRW 177.7 billion, with a payout ratio of 25.2%.

• Liability to equity ratio at 57%, debt to equity at 28%, and equity ratio at 64%.

Outlook and guidance

• Q3 is expected to see continued strong demand for high-end MLCCs and FC-BGA, driven by AI, data center, and automotive sectors.

• Supply for key products is expected to tighten, with further ASP increases and new long-term supply contracts anticipated.

• The company plans to continue investing in capacity expansion and R&D, focusing on high-value products for IT, automotive, and AI server markets.

• Dividend policy aims to maintain a payout ratio above 20%, balancing shareholder returns and growth investments.