Samsung Electro-Mechanics (A009150) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached KRW 2,902.1B, up 16% YoY and 0.5% QoQ, with net income at KRW 222.8B, a 7% YoY increase.

• Q4 saw continued AI-related revenue growth, with strong demand for AI server and power applications, and solid performance in industrial and automotive MLCCs, Flip-chip BGA, and camera modules.

• Package Solution Division Q4 revenue reached KRW 644.4B, up 9% QoQ and 17% YoY, driven by increased supply to big tech customers.

• Optic Solution Division Q4 revenue was KRW 937.2B, up 2% QoQ and 9% YoY, with growth in both IT and automotive camera modules.

• Operating profit margin was 8.3%, down from 9.0% in Q3 2025 but up from 4.6% in Q4 2024.

Financial highlights

• Gross profit for Q4 2025 was KRW 602.6B, up 37% YoY, with a gross margin of 20.8%.

• Operating profit was KRW 239.5B, up 108% YoY but down 8% QoQ.

• Pre-tax profit reached KRW 268.9B, up 36% YoY.

• Q4 MLCC shipments decreased QoQ due to seasonality, but AI-related shipments remained solid; blended ASP increased QoQ due to a higher mix of high-end products.

• Q4 BGA market demand slightly decreased QoQ due to seasonality, but ARM CPU-related new product demand increased.

Outlook and guidance

• 2026 MLCC market expected to see solid demand in industrial and automotive sectors, driven by AI infrastructure and xEV adoption.

• FCBGA demand projected to remain strong, with capacity expected to reach full utilization and potential for further expansion.

• Camera module business to focus on high-end, differentiating technologies for IT, automotive, and humanoid applications.

• CapEx is expected to increase YoY in 2026, with investments in new overseas plants, high-end MLCC, package substrates, and new business areas like glass substrates.

• Q1 2026 expected to deliver both QoQ and YoY growth, with strong AI, server, and automotive demand offsetting seasonal IT softness.