Samsung Electro-Mechanics (A009150) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached KRW 2,784.6 billion, up 2% QoQ and 8% YoY, with operating profit at KRW 213 billion, up 6% QoQ and 1% YoY; net profit was KRW 129.7 billion, down 3% QoQ and 25% YoY.

• Growth was driven by strong demand in industrial and automotive MLCCs, AI server substrates, and specialty camera modules.

Financial highlights

• Q2 pre-tax profit was KRW 171.4 billion; total assets at quarter-end were KRW 13,200.5 billion, down 1% QoQ.

• Gross profit rose 11% QoQ and 9% YoY to KRW 565.4 billion, with a gross margin of 20.3%.

• SG&A expenses increased 14% from Q1 2025 and 15% from Q2 2024.

• Cash at period end was KRW 2,541.3 billion, nearly flat QoQ and up from KRW 2,355.4 billion a year ago.

• Liability to equity ratio ranged from 46% to 50%, and equity/assets adequacy ratio remained stable at 68%.

Outlook and guidance

• Q3 expected to see continued solid demand for industrial and automotive MLCCs, AI server substrates, and high-spec camera modules.

• FCBGA substrate demand for servers and AI accelerators projected to continue growing in H2 2025.

• External uncertainties remain due to tariffs and FX fluctuations, but high-value product mix and new launches are expected to drive further QoQ growth.