DB HiTek CO (000990) Q4 2025 earnings summary

Executive summary

• Q4 2025 consolidated revenue reached KRW 387.8bn, up 4% QoQ and 37% YoY, with operating profit at KRW 70.4bn, down 13% QoQ but up 99% YoY.

• Standalone growth was stronger, but consolidated results were diluted by weaker subsidiary performance.

Financial highlights

• Gross profit for Q4 2025 was KRW 134.5bn, up 54% YoY, with a gross margin of 35%.

• EBITDA for Q4 2025 was KRW 109.6bn, up 43% YoY, with an EBITDA margin of 28%.

• Net profit for Q4 2025 was KRW 54.0bn, up 6% YoY, but down 41% QoQ due to non-recurring items.

• Q3 2025 included a KRW 14.4bn gain from disposal of equity method investments; Q4 2025 had a KRW 9.8bn loss from disposal of subsidiary PP&E.

Outlook and guidance

• FY2026 targets: revenue of KRW 1.5tn and operating profit of KRW 300bn.

• 8-inch foundry market expected to grow 4% YoY in 2026, with utilization improving from 77% in Q1 to 88% in Q4.

• Annual utilization rate for 2026 forecasted at 98%, up 2%pt YoY.

• Operating margin expected in the mid-to-high 20% range for 2026.

• Flexible pricing strategy and disciplined CapEx planned, with focus on R&D competitiveness.