SK hynix (000660) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of KRW 24.45 trillion in Q3 2025, up 10% QoQ and 39% YoY, driven by surging AI infrastructure investments and strong DRAM, HBM, and NAND demand.

• Operating profit reached an all-time high of KRW 11.38 trillion, up 24% QoQ and 62% YoY, with a 47% operating margin, surpassing KRW 10 trillion for the first time.

• Net income was KRW 12.60 trillion, up 80% QoQ and 119% YoY, with a net profit margin of 52%.

• AI-driven demand is fundamentally shifting the memory market, with HBM, DRAM, and NAND all benefiting.

• Shipments of high-capacity DDR5 more than doubled sequentially, supporting growth.

Financial highlights

• DRAM bit shipments rose by high single digits QoQ, exceeding guidance, with strong growth in HBM3E and DDR5 for AI servers.

• DRAM ASP increased by high single digits QoQ; NAND bit shipments fell by mid single digits QoQ, but enterprise SSD shipments grew by double digits.

• NAND ASP rose by low-teen percent QoQ, supported by price recovery and higher enterprise SSD mix.

• EBITDA was KRW 14.95 trillion, with an EBITDA margin of 61%.

• Cash and cash equivalents at quarter-end were KRW 27.9 trillion, up KRW 10.9 trillion QoQ; net cash position of KRW 3.8 trillion.

Outlook and guidance

• DRAM and NAND demand growth expected to rise from high teens this year to over 20% next year, with HBM4 shipments to start in Q4 2025 and expand in 2026.

• Full customer demand for all DRAM and NAND production secured for next year; capacity essentially sold out.

• CapEx in 2026 will increase to support AI-driven demand and technology migration.