SK hynix Announces 1Q25 Financial Results

Rhea-AI Summary

SK hynix reported strong Q1 2025 financial results with revenues of 17.6391 trillion won and operating profit of 7.4405 trillion won, marking their second-highest quarterly performance. The company achieved a net profit of 8.1082 trillion won with a 46% net margin.

The operating margin improved to 42%, marking the eighth consecutive quarter of growth. The company's success was driven by increased memory market demand for AI systems and inventory accumulation. Notable achievements include expanded sales of 12-layer HBM3E and DDR5 products.

Cash and cash equivalents rose to 14.3 trillion won, improving debt and net debt ratios to 29% and 11% respectively. The company expects HBM demand to double compared to last year, with 12-layer HBM3E projected to represent over 50% of total HBM3E revenues in Q2 2025.

Positive

• Revenue reached 17.6391T won, second-highest quarterly record
• Operating profit of 7.4405T won with 42% margin, 8th consecutive quarterly growth
• Net profit increased 323% YoY to 8.1082T won
• Cash position improved to 14.3T won with reduced debt ratios
• HBM3E expected to represent over 50% of HBM3E revenues in Q2

Negative

• 11% QoQ decrease in revenue from 19.767T won
• 8% QoQ decline in operating profit from 8.0828T won

• Revenues at 17.6391 trillion won, operating profit at 7.4405 trillion won, net profit at 8.1082 trillion won
• Both revenues, operating profit achieve 2nd highest quarterly records and operating margin improves for 8th consecutive quarters
• Company will strive to continue profit-centered growth based on AI memory leadership

SEOUL, South Korea, April 23, 2025 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it recorded 17.6391 trillion won in revenues, 7.4405 trillion won in operating profit (with an operating margin of 42%), and 8.1082 trillion won in net profit (with a net margin of 46%) in the first quarter this year.

Both revenues and operating profit are the 2nd highest records following last quarter when the company achieved its best quarterly results. Operating margin improved by 1%p compared to the previous quarter to 42%, resulting in 8th consecutive quarterly growth. 

SK hynix explained that memory market ramped up faster than expected due to competition to develop AI systems and inventory accumulation demand. The company responded to the demand with an expansion in sales of high value-added products such as 12-layer HBM3E and DDR5.

The company believes the strong financial results despite a low seasonality reflect its outstanding competitiveness compared to the past. The company plans to focus on enhancing the business fundamentals to achieve distinguished financial outcome, even in times of market correction. 

Based on the financial result, cash and cash equivalents increased by 0.2 trillion won to 14.3 trillion won at the end of the first quarter, compared to the end of 2024, leading to an improvement in the debt and net debt ratio to 29% and 11%, respectively. 

SK hynix will continue to strengthen collaboration with supply chain partners to meet customer needs despite demand fluctuation amid global uncertainties.

Due to the characteristics of the HBM market that supply volume is mutually agreed a year in advance, the company maintains its earlier projection that HBM demand will approximately double compared to the last year. As a result, sales of 12-layer HBM3E are expected to favorably increase to account for over 50% of total HBM3E revenues in the second quarter.

In addition, the company started to supply LPCAMM2^[1], high performance memory module for AI PC, to customers in the first quarter and plans to supply SOCAMM^[2], a low-power DRAM module for AI servers, when demand ramps up. 

[1] Low-Power Compression Attached Memory Module (LPCAMM2): LPDDR5X-based module solution that provides power efficiency and high performance as well as space savings. It has the performance effect of replacing two existing DDR5 SODIMMs with one LPCAMM2

[2] Small Outline Compression Attached Memory Module (SOCAMM): A low-power DRAM-based memory module for AI server

For NAND, the company plans to actively respond to demand for high-capacity eSSD, while maintaining profitability-first operation with cautious approach for investment. 

"In compliance with the 'Capex Discipline', SK hynix will focus on products with demand feasibility and profitability to enhance investment efficiency," said Kim Woohyun, Chief Financial Officer. "As an AI memory leader, we will strengthen collaboration with partners and carry out technological innovation in efforts to continue profit growth with industry-leading competitiveness."

1Q25 Financial Results (K-IFRS)

*Unit: Billion KRW
	1Q25	QoQ		YoY
		4Q24	Change	1Q24	Change
Revenues	17,639.1	19,767.0	-11 %	12,429.6	42 %
Operating Profit	7,440.5	8,082.8	-8 %	2,886.0	158 %
Operating Margin	42 %	41 %	1%p	23 %	19%p
Net Income	8,108.2	8,006.5	1 %	1,917.0	323 %

* Financial information of the earnings is based on K-IFRS
* Please note that the financial results discussed herein are preliminary and speak only as of April 24, 2025. Readers should not assume that this information remains operative at a later time.

 

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM") and flash memory chips ("NAND flash") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

Media Contact
SK hynix Inc.
Global Public Relations

Technical Leader
Kanga Kong, Minseok Jang, Sooyeon Lee 
E-Mail: global_newsroom@skhynix.com 

FAQ

What were SK hynix (HXSCL) Q1 2025 earnings results?

SK hynix reported Q1 2025 revenues of 17.6391T won, operating profit of 7.4405T won (42% margin), and net profit of 8.1082T won (46% margin).

How much did SK hynix (HXSCL) revenue grow year-over-year in Q1 2025?

SK hynix revenue grew 42% YoY from 12.4296T won in Q1 2024 to 17.6391T won in Q1 2025.

What is SK hynix (HXSCL) outlook for HBM demand in 2025?

SK hynix projects HBM demand to approximately double compared to 2024, with 12-layer HBM3E expected to exceed 50% of total HBM3E revenues in Q2 2025.

How has SK hynix (HXSCL) debt position changed in Q1 2025?

SK hynix improved its financial position with debt ratio at 29% and net debt ratio at 11%, while cash and equivalents increased to 14.3T won.

What new products did SK hynix (HXSCL) launch in Q1 2025?

SK hynix began supplying LPCAMM2, a high-performance memory module for AI PC, and plans to launch SOCAMM, a low-power DRAM module for AI servers.