Samsung SDS (018260) Q1 2025 earnings summary

Executive summary

• 1Q25 revenue reached 3,490 billion KRW, up 7.5% year-over-year but down 4.2% sequentially.

• Net income was 218 billion KRW, a 10.9% increase sequentially and 0.4% higher year-over-year.

• Operating profit rose to 269 billion KRW, up 27% sequentially and 18.9% year-over-year, with margin improving to 7.7%.

Financial highlights

• Gross profit was 546 billion KRW, up 7.7% sequentially and 11.3% year-over-year; gross margin improved to 15.6%.

• SG&A expenses decreased 6.1% sequentially but increased 4.8% year-over-year.

• Non-operating gain & loss dropped to 33 billion KRW, down 52.6% sequentially and 56.6% year-over-year.

• Net income margin was 6.2%, up 0.8 percentage points sequentially but down 0.5 points year-over-year.

Outlook and guidance

• Cloud and logistics segments expected to drive growth, with continued expansion in cloud services and logistics customer base.

• Anticipated further cloud migration in finance and retail sectors, and logistics growth from new accounts and service region expansion.