Samsung Electro-Mechanics (A009150) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached KRW 2,902.1B, up 16% year-over-year and 0.5% sequentially, with net income at KRW 222.8B, a 7% increase year-over-year.

• Q4 saw continued growth in AI-related revenue, offsetting seasonal inventory adjustments, with strong demand in AI server, power, industrial, and automotive applications.

• Package Solution Division Q4 revenue rose 9% QoQ and 17% YoY, driven by increased supply to big tech and automotive customers.

• Optic Solution Division Q4 revenue increased 2% QoQ and 9% YoY, with growth in both IT and automotive camera modules.

• Operating profit margin was 8.3%, down from 9.0% in Q3 2025 but up from 4.6% in Q4 2024.

Financial highlights

• Q4 Package Solution Division revenue: KRW 644.4 billion, up 9% QoQ and 17% YoY.

• Q4 Optic Solution Division revenue: KRW 937.2 billion, up 2% QoQ and 9% YoY.

• Gross profit for Q4 2025 was KRW 602.6B, up 37% year-over-year, with a gross margin of 20.8%.

• Operating profit was KRW 239.5B, up 108% year-over-year but down 8% sequentially.

• Cash at period end was KRW 2,701.2B, up 34% year-over-year.

Outlook and guidance

• 2026 MLCC market expected to see solid demand in industrial and automotive sectors, driven by AI infrastructure and xEV adoption.

• High-end FCBGA demand from AI, server, and network applications projected to remain strong.

• Q1 MLCC shipment expected to remain similar to Q4, with ASP rising due to new flagship launches and high-end demand.

• Full year 2026 outlook anticipates continued growth in AI, server, and automotive, with investments in capacity and new business areas.

• Continued demand for high-performance camera modules in flagship smartphones and automotive applications anticipated.