L&F Co (066970) Q1 2026 earnings summary

Executive summary

• Achieved record high quarterly revenue of KRW 739.6 billion in Q1 2026, up 20% QoQ and 103% YoY, driven by both price and volume growth, especially in Hi-Ni shipments.

• Operating profit reached KRW 117.3 billion, up 42% QoQ, with an operating margin of 16%, supported by higher utilization, raw material price increases, and FX gains.

• Product mix shifted further toward Hi-Ni, with 87% of shipments, and ultra Hi-Ni comprising 88% of Hi-Ni sales.

Financial highlights

• Revenue: KRW 739.6 billion (QoQ +20%, YoY +103%).

• Operating profit: KRW 117.3 billion (QoQ +42%), OPM 16%.

• Net profit: KRW -65.3 billion, but excluding BW exercise, net profit was KRW 61.0 billion (margin 8%).

• Inventory assets increased 27% QoQ to KRW 758.2 billion, reflecting strong Hi-Ni shipments.

• Ending cash balance at KRW 258.9 billion, down 32% QoQ due to investment and debt repayment.

Outlook and guidance

• Expects all-time high quarterly shipments and continued record sales, with margin improvement from higher product prices and utilization.

• Full-scale LFP supply launch with 30K ton plant completion in Q2 2026 and SOP by end Q3; expansion to 60K tons planned for H1 2027.

• Rising non-China LFP demand and new client acquisition underway.