Samsung Electro-Mechanics (A009150) investor relations material

Executive summary

• Q1 revenue reached KRW 3,209.1 billion, up 11% QoQ and 17% YoY, with operating profit at KRW 280.6 billion, up 17% QoQ and 40% YoY, surpassing market expectations despite a one-off retirement pay expense of KRW 71.4 billion.

• Net profit was KRW 249.2 billion, and pre-tax profit was KRW 316.4 billion; total assets increased 18% YoY to KRW 15,660.5 billion.

Financial highlights

• Gross profit grew 30% YoY to KRW 660.3 billion, with a gross margin of 20.6%.

• Cash at period end was KRW 3,243.3 billion, up 28% YoY.

• Liability to equity rose to 55% from 49% QoQ; debt to equity increased to 26% from 22% QoQ; equity ratio at 64%.

• All divisions reported revenue growth, with notable increases in high-end and AI-related products.

Outlook and guidance

• Q2 is expected to see continued strong demand for high-end MLCCs, Flip Chip BGA substrates, and camera modules, especially for AI, automotive, and data center applications.

• Full-year guidance remains positive, with expectations of full utilization in the second half and significant revenue growth in FCBGA.

• CapEx for 2026 is expected to more than double YoY, with further increases planned over the next three years to support AI-driven demand.

• Full-scale supply of AI datacenter networking substrates to a new big-tech customer to begin.

• Continued focus on next-generation high-performance camera modules and automotive camera solutions.