Samsung plans to complete 10T won share-repurchase plan in Oct.

Samsung plans to complete 10T won share-repurchase plan in Oct.

Samsung Electronics has announced plans to complete its 10T won share-repurchase plan by October 2025. This move comes as part of the company's ongoing strategy to return capital to shareholders and strengthen its financial position. The share-repurchase plan, which was announced in November 2024, aims to buy back shares worth KRW 10 trillion (~$7.8 billion) [1].

The decision to accelerate the share-repurchase plan is likely driven by Samsung's robust cash generation. The company reported free cash flow of KRW 8.1 billion over the last twelve months, which is backing the buyback plan [1]. Samsung's management has been delivering for shareholders with consistent dividends and share buybacks, despite facing challenges such as falling memory chip prices and uncertainty over tariffs and export rules [1].

The share-repurchase plan is part of Samsung's broader strategy to maintain a strong balance sheet and enhance shareholder value. The company's ability to generate significant free cash flow allows it to pursue such initiatives, even during challenging market conditions. Samsung's management has been cautious about M&A, focusing instead on organic growth and capital allocation to high-growth areas like AI and 5G [1].

However, Samsung faces several headwinds that could impact its ability to execute the share-repurchase plan. The company is grappling with a cyclical downturn in the memory market, tight U.S. export controls on AI chips, and new U.S. tariffs set to take effect in August 2025 [1]. These factors could potentially affect Samsung's cash flow and profitability in the near term.

Looking ahead, Samsung's performance will be closely watched by investors. The company's Q2 earnings release, scheduled for July 31, 2025, will provide insights into its operating profit guidance and updates on memory chip prices [1]. Additionally, the implementation of U.S. tariffs and progress on Samsung's new U.S. foundry in Texas will be important factors to monitor [1].

In conclusion, Samsung's plan to complete its 10T won share-repurchase plan by October 2025 is a positive development for shareholders. However, the company's ability to execute this plan will depend on its ability to navigate the challenges posed by the memory market downturn, U.S. export controls, and new tariffs.

References:
[1] https://finimize.com/content/ssnlf-asset-snapshot