SK hynix (000660) investor relations material

Executive summary

• Q2 2026 revenue reached a record KRW 79.32 trillion, up 51% quarter-on-quarter and 257% year-on-year, driven by robust AI infrastructure demand, tight supply, and high-value product sales.

• Operating income was KRW 60.54 trillion, up 61% quarter-on-quarter and 557% year-on-year, with an operating margin of 76%.

• Net profit surged to KRW 93.92 trillion, net profit margin 118%, supported by significant non-operating gains.

• Cash and equivalents rose to KRW 88 trillion, while interest-bearing debt decreased to KRW 18.6 trillion, improving financial ratios.

• Secured long-term agreements with around 10 key customers, supporting business stability and growth.

Financial highlights

• DRAM ASP rose ~30% quarter-on-quarter, NAND ASP increased by mid-50%, and enterprise SSD revenue doubled sequentially.

• EBITDA was KRW 64.56 trillion (margin 81%), net non-operating profit KRW 62.2 trillion, including KRW 63.3 trillion from investment gains.

• Net profit was KRW 93.92 trillion, up 133% quarter-on-quarter and 1,242% year-on-year.

• Debt-to-equity ratio improved to 7% in Q2 from 12% in Q1.

• Cash and cash equivalents reached KRW 88 trillion, up 33.6 trillion from the previous quarter.

Outlook and guidance

• AI-driven memory demand expected to remain strong, with DRAM demand projected to grow mid-20% and NAND high teens year-on-year in 2026.

• DRAM shipments forecasted to rise ~10% in Q3, NAND bit shipments to increase low single digits.

• Multi-year contracts and technological innovation position the company for sustained structural demand growth.

• Plans to reinforce production capacity and financial health while maintaining CapEx discipline.

• Tight supply-demand conditions likely to persist, with major tech customers expanding infrastructure investments.