SK hynix tops 100 trillion won in sales, locks in over half of 2027–28 capacity

SK hynix reported its first quarter with revenue above 100 trillion won on October 28, alongside long-term orders covering more than half of its production capacity for 2027 and 2028. It expects HBM4 to lead its HBM shipments and revenue in Q4.

The company has signed long-term agreements with 14 major customers. The figure covers total capacity, including other memory.

In its July 29 second-quarter announcement, SK hynix put the number of long-term customers at around 10. That release also said mass shipments of HBM4 had already begun during the second quarter, with output set to rise in the second half.

HBM connects multiple DRAM chips vertically to move large amounts of data. SK hynix’s September 2025 development announcement described HBM4 with 2,048 input/output terminals, twice the previous generation’s number. The company described using a stacking process that fills the gaps between chips with protective material to safeguard their connecting circuits.

SK hynix plans to bring its M15X facility to full capacity by the end of 2026 to raise HBM4 production. It expects HBM4 to overtake HBM3E in both HBM shipment volume and revenue during the fourth quarter.

The company forecasts demand exceeding supply through 2030, citing advanced-process complexity and the time needed to build fabs. Capital expenditure is expected to rise substantially next year as Yongin production and infrastructure investment progress, with timing and scale adjusted to customer demand, profitability and investment efficiency.

Profit and shareholder returns

For July 1 through September 30, revenue reached 104.6155 trillion won and operating profit 83.3338 trillion won, up 327.9% and 632.1% year over year. Sequential increases were 31.9% and 37.6%. Net profit fell 57.7% sequentially to 39.7756 trillion won, while rising 215.7% year over year. The presentation lists foreign-exchange-related losses of 11.63 trillion won and investment-asset-related losses of 22.92 trillion won. These are preliminary consolidated K-IFRS results, with external audit incomplete.

SK hynix expects approximately 100 trillion won in shareholder returns for fiscal 2026, including at least 30 trillion won of cash dividends and at least 60 trillion won of repurchases and cancellations. The total includes the 40 trillion won program approved in August; it is an annual plan spanning several decisions.

The board approved 20 trillion won of repurchases on October 28. Approximately half is intended for cancellation for shareholder returns and half for employee compensation. Compensation purchases are excluded from the annual return total. The separate buyback filing schedules market purchases from October 29 through January 28, 2027. The compensation allocation may change when awards are finalized. The planned purchase is 14.92 million common shares, calculated using the previous closing price. The eventual count may change with market prices.

The quarterly dividend is 20,000 won per common share, comprising a 10,000-won earnings-based dividend and a 10,000-won special dividend tied to Kioxia investment gains. The separate dividend filing lists about 14.1035 trillion won in total, subject to the number of circulating shares at the record date.

The record date is November 30. The dividend filing specifies payment within one month, without an exact day; the presentation expects December. The annual return plan runs through the fiscal 2026 year-end dividend payment. That final dividend will be determined after the accounts are finalized and the required procedures completed.