ISU Petasys (007660) Q1 2025 earnings summary

Executive summary

• Achieved strong revenue and operating profit growth in Q1 2025, driven by increased demand in data center, AI network, and server PCB markets.

• Expansion in high-value multilayer PCB products and robust performance from both domestic and China subsidiaries.

• Operating income surged 107% to KRW 47.7 billion, and net income rose 118% to KRW 38.3 billion compared to Q1 2024.

• Gross margin improved significantly, reflecting a higher mix of high-value products and operational efficiency.

• Major investments in capacity expansion and new plant construction are underway to meet growing demand.

Financial highlights

• Consolidated Q1 2025 revenue: ₩2,525B, up 26.5% year-over-year; operating profit: ₩477B, up 107.4% year-over-year.

• Standalone Q1 2025 revenue: ₩2,096B, operating profit: ₩334B, with operating margin at 15.9%.

• China subsidiary Q1 2025 revenue: ₩538B, operating profit: ₩175B, operating margin at 21.0%.

• Net income (consolidated) Q1 2025: ₩383B.

• Gross profit margin increased to 26.3% from 19.0% in Q1 2024.

Outlook and guidance

• Data center, AI switch, and server PCB demand expected to remain strong, with continued growth in 800G network products.

• China subsidiary anticipates stable multilayer product sales and further expansion in AI server and network equipment markets.

• Ongoing investments in production capacity, new product lines, and technology to support future growth.