Samsung Electro-Mechanics (A009150) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached KRW 2.889 trillion, up 4% QoQ and 10% YoY, with operating profit at KRW 260.3 billion, up 22% QoQ and 16% YoY, and net profit at KRW 219.8 billion.

• Net income rose 69% QoQ and 91% YoY in Q3 2025, with improved profitability across all divisions.

• Revenue for the first nine months of 2025 increased 7.8% YoY to KRW 8,412.3 billion, driven by growth across all business segments.

• Operating income for the nine months was KRW 673.8 billion, down from KRW 735.0 billion in the prior year due to higher costs and investments.

• The company operates in three main segments: Component (MLCC, Inductor, Chip Resistor), Package Solutions (semiconductor substrates), and Optical Solutions (camera modules).

Financial highlights

• Q3 pretax profit was KRW 281.7 billion; total assets at quarter-end were KRW 13,842.2 billion, up 5% QoQ and 10% YoY.

• Gross profit for Q3 was KRW 600.5 billion, with a margin of 20.8%; for the nine months, gross profit was KRW 1,674.8 billion, margin 19.9%.

• Cash and cash equivalents at period-end were KRW 2,767.4 billion, up from KRW 2,013.3 billion at the previous year-end.

• Dividends paid during the period totaled KRW 136.1 billion.

• Earnings per share for the nine months was KRW 6,396.

Outlook and guidance

• Q4 expected to see some seasonality and inventory adjustments, but automotive and AI-related demand remains robust.

• Continued investment in capacity expansion and R&D, focusing on high-value products and new applications such as 5G and AI.

• For 2026, tight supply dynamics in MLCC and strong substrate demand for AI and servers are anticipated.

• Dividend policy aims to maintain a payout ratio above 20%, with future adjustments based on investment needs and cash flow.

• Focus remains on expanding capacity and technology leadership in high-end MLCCs, substrates, and camera modules.