SK Square (402340) Q1 2026 earnings summary

Executive summary

• Achieved record-high consolidated operating income of KRW 8,278,295 million, up sharply year-over-year, driven by increased equity method gains and higher dividend income from subsidiaries.

• Net income reached KRW 8,380,985 million, with NAV rising by KRW 22.8tn YoY to KRW 123.0tn, primarily due to the increased value of the SK hynix stake.

• Basic EPS surged to KRW 63,608 from KRW 12,185 in the prior year.

• Revenue for Q1 2026 was KRW 300,349 million, down from KRW 345,945 million in Q1 2025.

Financial highlights

• Consolidated revenue was KRW 300.3bn for 1Q26.

• Dividend income rose to KRW 273.9bn, up KRW 83.4bn YoY.

• NAV per share reached KRW 932,398.

• Total assets increased to KRW 38,983,425 million; liabilities: KRW 2,720,500 million; shareholders' equity: KRW 36,262,900 million.

• Debt ratio improved to 7.50% from 9.01% at the previous year-end.

Outlook and guidance

• Expect continued favorable pricing in memory due to AI-driven demand and constrained supply.

• Plans to implement additional shareholder return measures, including dividends and share buybacks, with details to be finalized within the year.

• Announced a shareholder return policy for 2026–2028, targeting at least 30% of recurring dividend income for returns, including share buybacks and cash dividends.

• For 2026, the plan includes a KRW 1,100 billion share buyback and KRW 2,000 billion in cash dividends.