EcoPro BM (247540) Q1 2025 earnings summary

Executive summary

• Consolidated EBIT turned positive in 1Q25, marking a turnaround with gradual profit increases expected throughout the year.

• Manufactures and sells high-nickel cathode materials for lithium-ion batteries, leading the global market for two consecutive years (2022–2023).

• Main customers are battery cell manufacturers, notably Samsung SDI and SK On, with 92.6% of sales to these clients.

• Ongoing global capacity expansion, including new plants in Hungary and Canada, to meet growing EV demand.

• Strong financial stability supports ongoing global expansion and shareholder return policies.

Financial highlights

• 1Q25 consolidated revenue reached KRW 8,068 billion, up from KRW 6,489 billion in 4Q24.

• EBIT improved to KRW 14 billion from a loss of KRW -998 billion in the previous quarter.

• EBITDA rose to KRW 513 billion from KRW -526 billion sequentially.

• Q1 2025 operating income: KRW 2.27 billion; net loss: KRW -9.97 billion; EPS: -143 KRW.

• Cash and cash equivalents at Q1 2025 end: KRW 575.7 billion.

Outlook and guidance

• Profitability is expected to improve further with increased volumes and higher operating rates.

• Continues to expand product portfolio (mid-nickel, Mn-rich, LFP, sodium cathodes) and global production capacity.

• Expects ongoing growth in EV and ESS markets, with global battery demand projected to reach 6,205 GWh by 2035.

• Faces short-term margin pressure due to raw material price volatility and global supply-demand imbalances.

• Additional equity method profits anticipated from Indonesia investments.