Samsung Electro-Mechanics (009150) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 3,209.1 billion, up 17.2% YoY and 11% QoQ, with operating profit at KRW 280.6 billion and net profit at KRW 249.2 billion, surpassing expectations despite a one-off retirement pay expense.

• Pre-tax profit was KRW 316.4 billion; total assets increased to KRW 15,660.5 billion.

• Major customer Samsung Electronics and affiliates accounted for about 30% of total sales.

• Net income included a one-time severance expense of KRW 71.4 billion.

Financial highlights

• Gross profit grew to KRW 660.3 billion, with a gross margin of 20.6% and operating margin at 8.7%.

• Cash at period end was KRW 3,243.3 billion, up 28% YoY.

• Net cash from operating activities was KRW 478.9 billion, up from KRW 314.6 billion in Q1 2025.

• Basic EPS for ordinary shares was KRW 3,298; dividend payout for the period was KRW 177.7 billion.

• Total assets increased 18% YoY to KRW 15,660.5 billion.

Outlook and guidance

• Q2 is expected to see continued strong demand for high-end MLCCs, Flip Chip BGA substrates, and camera modules, especially for AI, automotive, and data center applications.

• Full-year guidance remains positive, with expectations of full utilization in the second half and significant revenue growth in FCBGA.

• CapEx for 2026 is expected to more than double YoY, with further increases planned over the next three years to support AI-driven demand.

• Continued investment in capacity expansion and R&D to support growth in high-value segments.

• Dividend policy aims for payout ratio above 20%, with flexibility for future investments.