SK Hynix Posts Record-Breaking Q1 Operating Profit of 7.4 Trillion Won, Surpassing Expectations

Up 158% Year-on-Year
Sales Reach 17.6 Trillion Won, a 42% Increase
Rising Demand for Memory Semiconductors Such as HBM
Second Quarter Outlook Remains Uncertain

SK Hynix posted an operating profit of over 7.4 trillion won in the first quarter of this year, delivering a "surprise performance" that surpassed market expectations. Despite the typical seasonal slowdown, the company attributed this result to customers advancing their purchasing schedules due to the U.S.-led tariff war. Sales of high-value-added products such as high-bandwidth memory (HBM) and fifth-generation double data rate (DDR5) memory drove the strong performance. However, as a significant portion of this growth was due to early purchases, there are projections that the outlook for the second quarter is somewhat uncertain.

On April 24, SK Hynix announced that, on a consolidated basis, its operating profit for the first quarter of this year was provisionally tallied at 7.4405 trillion won, a 157.8% increase compared to the same period last year. This figure exceeded the market consensus of 6.5993 trillion won by 13%, setting an all-time high for first-quarter results. It also surpassed the company-wide operating profit of Samsung Electronics’ semiconductor division, which stood at 6.6 trillion won.

SK Hynix Headquarters, Icheon, Gyeonggi. Photo by Kang Jinhyung

Revenue reached 17.6391 trillion won, up 41.9% from a year earlier, while net profit surged 323% to 8.1082 trillion won. Both revenue and operating profit marked the second-highest quarterly levels on record, following the fourth quarter of last year (revenue of 19.767 trillion won and operating profit of 8.0828 trillion won).

The company explained, "The memory market recovered faster than expected as AI development competition and inventory buildup demand overlapped. The expansion of sales for high-value-added products such as HBM3E 12-layer and DDR5 played a key role."

Analysts noted that the company’s strategy of shifting its product mix was the main driver behind the earnings recovery. In the first quarter, sales of HBM3E 12-layer products ramped up in earnest, and from the second quarter, the company expects these products to account for more than half of total HBM3E revenue. Last month, SK Hynix became the first in the world to provide samples of its next-generation HBM4 12-layer product to customers, with mass production targeted within the year.

Additionally, next-generation memory such as low-power modules for AI servers (SOCAMM) and memory for high-performance laptops (LPCAMM2) began shipping to some customers starting in the first quarter. For NAND flash, the company is responding to increased demand for high-capacity enterprise solid-state drives (eSSD).

Alongside these developments, improvements in the company’s financial structure have strengthened its ability to respond to uncertainties. Cash and cash equivalents stood at 14.311 trillion won, up 200 billion won from the end of last year, while the debt-to-equity and net debt ratios fell to 29% and 11%, respectively.

The first plant (P1) within the Yongin Semiconductor Cluster is targeted for completion in the second quarter of 2027, and the Cheongju M15X facility is scheduled to begin operations in the fourth quarter of this year. The company also plans to flexibly adjust its new fab operation strategies in response to changes in demand.

Chief Financial Officer Kim Woohyun stated, "We will focus facility investments on products with secured profitability to enhance efficiency," adding, "We will continue sustainable growth based on our technological leadership in the AI memory market."

This content was produced with the assistance of AI translation services.