SK hynix Inc.

SK hynix reported third-quarter revenue of KRW 104.6 trillion, up 32% quarter on quarter and 328% year on year. Operating profit was KRW 83.3 trillion, up 38% quarter on quarter and 632% year on year, with an operating margin of 80%; net income was KRW 39.8 trillion and net profit margin was 38%. EBITDA was KRW 87.7 trillion with an 84% margin, while depreciation and amortization totaled KRW 4.3 trillion. At quarter end, cash and cash equivalents were KRW 114.5 trillion, interest-bearing debt was KRW 15.8 trillion, and net cash was KRW 98.7 trillion. For the fourth quarter, management expects DRAM shipments to grow meaningfully by mid-20% sequentially, driven by 1c-node production expansion and increased HBM4 output, while NAND bit shipments are expected to increase by mid-single digits sequentially. Management said HBM4 should overtake HBM3E in both volume share and revenue in Q4. Looking ahead, management expects 2027 DRAM and NAND market growth to be around mid-20% and high-teen percent, respectively, and said capital expenditures in 2027 will increase significantly versus 2026 as it invests in leading-edge processes and the Yongin fab.

CEO Kwak Noh-Jung emphasized that the bigger story is not just record earnings but a structural shift in the business: customer trust from technological leadership is turning into long-term agreements and better demand visibility. He said SK hynix aims to extend its leadership in memory, including HBM, into next-generation products and become the first partner customers turn to for future AI infrastructure needs. His tone was confident and shareholder-focused, linking future growth, investment returns, and increased shareholder distributions.

CFO Kim Woo-Hyun said tight supply-demand conditions in AI memory continued to drive price increases in both DRAM and NAND, with revenue of KRW 104.6 trillion and operating profit of KRW 83.3 trillion setting new records. He highlighted product mix improvements from HBM4, server DRAM, and enterprise SSDs, and said the company generated strong cash with KRW 114.5 trillion of cash and cash equivalents versus KRW 15.8 trillion of debt. He also detailed the capital return plan: approximately KRW 100 trillion for fiscal 2026, including KRW 30 trillion or more in cash dividends and KRW 60 trillion or more in buybacks/cancellations, with a KRW 20,000 per share third-quarter dividend totaling KRW 14 trillion.

Analysts pressed management on whether AI infrastructure investment can keep rising despite slow monetization, and the company answered that AI customers are already seeing revenue growth, stronger cloud backlogs, more paying users, and broader participation from nontech and sovereign AI buyers. Questions also focused on the dividend versus buyback mix, with management saying it balanced sustainable cash dividends against share repurchases because it believes the stock is undervaluing earnings and cash flow. On LTAs, management said more than 50% of 2027-2028 capacity is secured and, together with volumes under discussion, DRAM and HBM are effectively sold out through 2029.