SK hynix (000660) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached KRW 17.64 trillion, up 42% year-over-year but down 11% sequentially, marking the second highest quarterly record, driven by strong AI-related memory demand and inventory accumulation.

• Operating profit was KRW 7.44 trillion, up 158% year-over-year, with a 42% margin, the second highest in company history.

• Net profit reached KRW 8.11 trillion, a 323% increase year-over-year, with a net margin of 46%.

• High-value DRAM and HBM sales, including 12-layer HBM3E and DDR5, drove profitability, while NAND faced pricing pressure but remained profitable.

• Operating margin improved for the eighth consecutive quarter.

Financial highlights

• EBITDA was KRW 10.77 trillion with a 61% margin; depreciation and amortization expenses were KRW 3.33 trillion.

• Gross margin improved to 57% from 39% a year ago; gross profit was KRW 10.1 trillion.

• Cash and cash equivalents rose to KRW 14.3 trillion at quarter-end; interest-bearing debt increased to KRW 23.3 trillion.

• Net debt-to-equity ratio improved to 11%; debt-to-equity ratio at 29%.

• Basic EPS increased to KRW 11,756 from KRW 2,788 a year earlier.

Outlook and guidance

• DRAM shipments expected to rise by low teens percent and NAND by over 20% sequentially in Q2.

• HBM demand projected to double year-over-year, with HBM3E 12-high comprising over half of Q2 shipments.

• HBM4 samples shipped to major customers; mass production planned within 2025.

• Market volatility expected due to global tariff policies and macro uncertainties; prudent CapEx and supply chain collaboration planned.

• Committed to annual cash dividend of KRW 1,500 per share for 2025–2027, with potential for additional returns if free cash flow allows.