SK Hynix Q3 2025: Operating Profit Hits KRW 11.38T

SEOUL, South Korea - SK hynix Inc. reported operating profit of KRW 11,383 billion for the third quarter ended September 30, according to preliminary financial results released Wednesday.

Revenue totaled KRW 24,449 billion. Operating margin was 47 percent.

Net profit was KRW 12,598 billion. Net margin was 52 percent.

The figures were based on consolidated Korean International Financial Reporting Standards.

Revenue in the second quarter was KRW 22,232 billion.

Revenue in the third quarter of 2024 was KRW 17,573 billion. Operating profit in the second quarter was KRW 9,213 billion.

Operating profit in the third quarter of 2024 was KRW 7,030 billion.

DRAM products accounted for 78 percent of revenue. NAND products accounted for 20 percent of revenue. Other products accounted for 2 percent of revenue.

DRAM bit shipments increased by a high single-digit percentage from the second quarter. DRAM average selling prices increased by a mid-single-digit percentage from the second quarter.

NAND bit shipments decreased by a mid-single-digit percentage from the second quarter. NAND average selling prices increased by a low-teen percentage from the second quarter.

Shipments of DDR5 modules of 128 gigabytes or larger increased by more than 100 percent from the second quarter, according to the company.

Cash and cash equivalents, including short-term financial instruments, totaled KRW 27,854 billion at quarter's end. The figure was KRW 16,962 billion at the end of the second quarter.

The figure was KRW 10,858 billion at the end of the third quarter of 2024.

Interest-bearing debt totaled KRW 24,079 billion. Short-term borrowings were KRW 2,180 billion.

The current portion of long-term borrowings was KRW 7,070 billion.

Bonds outstanding totaled KRW 11,025 billion. Long-term borrowings were KRW 3,804 billion.

The debt-to-equity ratio was 24 percent. The net debt-to-equity ratio was negative 4 percent.

Cost of goods sold was KRW 10,420 billion. Selling, general, and administrative expenses were KRW 2,646 billion. Depreciation and amortization were KRW 3,566 billion. Gross profit was KRW 14,029 billion. EBITDA was KRW 14,949 billion.

Cash flow from operating activities was KRW 14,368 billion.

Cash used in investing activities was KRW 5,154 billion, including KRW 5,033 billion for the acquisition of property, plant, and equipment.

Cash from financing activities was KRW 1,375 billion.

Basic earnings per share were KRW 18,242. Diluted earnings per share were KRW 17,850. Basic shares outstanding were 690 million. Diluted shares outstanding were 712 million.

The company stated it completed supply discussions with customers for HBM products for the calendar year 2026.

The company stated HBM4 completed development in September and entered mass production. Shipments will begin in the fourth quarter, according to the company.

The company stated it secured customer demand for DRAM and NAND production for the calendar year 2026. Equipment installation began at the M15X facility.

Capital expenditure for calendar year 2026 will increase from calendar year 2025, the company stated. Specific figures were not disclosed.

Fourth-quarter DRAM bit shipments are projected to increase by a low single digit from the third quarter.

Fourth-quarter NAND bit shipments are projected to increase by a low single-digit percentage from the third quarter, including Solidigm.

The company projected DRAM demand bit grow by a high-teen percentage for calendar year 2025 and over 20 percent for calendar year 2026.

The company projected NAND demand growth in the mid-teens for calendar year 2025 and in the high-teens for calendar year 2026.

The company stated it plans to accelerate migration to 1cnm process technology. The company stated it plans to increase the output of 321-layer TLC and QLC products.

Chief Financial Officer Kim Woohyun said the memory market is evolving, with demand expanding across product areas.

The company aims to address customer needs through its products and technology, Kim said.