158% Increase Year-on-Year
Revenue Reaches 17.6 Trillion Won, Up 42% from Last Year
Rising Demand for Memory Semiconductors Including HBM
SK Hynix recorded an operating profit of over 7 trillion won in the first quarter of this year. This marks the highest first-quarter operating profit in the company's history and significantly exceeds the market forecast of 6.5929 trillion won. The strong performance is attributed to robust sales of high value-added products such as High Bandwidth Memory (HBM) 3E and Double Data Rate (DDR) 5.
On April 24, SK Hynix announced in a regulatory filing that its consolidated operating profit for the first quarter of 2025 (January to March) was provisionally tallied at 7.4405 trillion won, up 158% from the same period last year. Revenue reached 17.6391 trillion won, representing a 42% increase year-on-year. Net profit was reported at 8.1082 trillion won, with a net profit margin of 46%.
This quarter's revenue and operating profit are the second highest on record, following the previous quarter's all-time highs. It is the largest first-quarter operating profit in the company's history. The operating margin improved by 1 percentage point from the previous quarter to 42%, marking the eighth consecutive quarter of improvement.
An SK Hynix official explained, "In the first quarter, the memory market improved faster than expected due to the combination of intensified competition in artificial intelligence (AI) development and increased inventory buildup demand. In response, we expanded sales of high value-added products such as HBM3E 12-layer and DDR5."
Despite concerns over US tariffs triggered by Trump, growing demand for core high value-added memory semiconductors?including HBM, DDR5, and enterprise solid-state drives (eSSD)?appears to have driven operating profit. DRAM and NAND shipment volumes increased by more than 10% and over 20%, respectively, compared to the previous quarter, and this sales expansion contributed to improved performance.
Kim Woohyun, Chief Financial Officer (CFO) of SK Hynix, stated, "We will further enhance investment efficiency by adhering to the 'Capex Discipline' principle and focusing on products with high demand visibility and secured profitability. As a leader in AI memory, we will strengthen cooperation with our partners, overcome technological barriers, and strive for continuous profit generation based on industry-leading competitiveness."
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