SK hynix (000660) Q4 2025 earnings summary

Executive summary

• Q4 2025 achieved record-high revenue of KRW 32.83 trillion, up 34% QoQ and 66% YoY, driven by strong AI infrastructure investment and surging demand for memory products, especially HBM and server DRAM.

• Operating profit for Q4 reached KRW 19.2 trillion, up 68% QoQ and 137% YoY, with an operating margin of 58%.

• Full-year 2025 revenue was KRW 97.1 trillion, up 47% YoY, and operating profit was KRW 47.2 trillion, up 101% YoY, reflecting strategic focus on AI memory and high-value products.

• Strengthened technology leadership with industry-first HBM4 sample shipments and mass production readiness, and advanced DRAM and NAND product developments.

Financial highlights

• Q4 DRAM shipments grew by low single digits, with high-density DDR5 modules up 50% QoQ; DRAM ASP rose 20% QoQ.

• NAND shipments increased 10% QoQ, with ASP up nearly 30% QoQ.

• Q4 EBITDA was KRW 22.73 trillion (69% margin); net profit was KRW 15.25 trillion (46% margin).

• Cash and equivalents at year-end were KRW 34.94 trillion, up KRW 20.8 trillion YoY; borrowings fell to KRW 22.2 trillion; debt ratio dropped to 18%.

• Q4 gross margin was 69%, up 11 percentage points YoY.

Outlook and guidance

• AI-driven demand for high-performance memory is expected to remain strong, with server SSD shipments projected to grow by high teens % in 2026.

• DRAM and NAND demand growth in 2026 expected at over 20% and high teens %, respectively.

• DRAM shipments to remain stable in Q1 2026; NAND shipments to decline slightly due to base effect.

• CapEx for 2026 will increase significantly YoY, but CapEx-to-revenue ratio will be maintained in the mid-30% range.

• Anticipates continued supply tightness and plans to maximize advanced node production and accelerate tech migration.