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, server, and enterprise SSD demand, with strong contributions from DRAM, NAND, and HBM segments.

• Operating profit reached KRW 11.4 trillion, up 24% QoQ and 62% YoY, with a 47% operating margin, surpassing KRW 10 trillion for the first time.

• Net income was KRW 12.6 trillion, up 80% QoQ and 119% YoY, with a net profit margin of 52%.

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

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

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 mid single digits QoQ.

• NAND ASP rose by low-teen percent QoQ, supported by price recovery and higher enterprise SSD mix; NAND bit shipments fell by mid single digits QoQ, but enterprise SSD shipments grew by double digits.

• EBITDA was KRW 14.95 trillion, with an EBITDA margin of 61%; gross profit was KRW 14.03 trillion, gross margin 57%.

• 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.

• Basic EPS for Q3 was KRW 18,242; diluted EPS KRW 17,850.

Outlook and guidance

• DRAM demand growth expected to rise from high teens this year to over 20% next year; NAND device growth to improve from mid teens this year to high teens in 2026.

• HBM4 shipments to start in Q4 2025, with full-scale expansion in 2026; 1c-nanometer DRAM ramp-up and 321-layer NAND migration planned.

• CapEx in 2026 will increase to support AI-driven demand, with ongoing discipline and focus on optimal investment.

• Full customer demand for all DRAM and NAND production secured for next year.

• Fixed annual cash dividend of KRW 1,500 per share for 2025–2027, with potential for additional returns based on free cash flow.