L&F Co (066970) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q 2025 reached 5,201 billion KRW, up 42.6% quarter-over-quarter, driven by strong new product sales and increased shipment volumes.

• Operating loss narrowed by 13.6% quarter-over-quarter to -1,212 billion KRW, with ongoing margin pressure from raw material prices and FX rates.

• Shipment volume rose 55% quarter-over-quarter, led by Hi-Ni products, which now account for 85% of shipments.

• Inventory valuation losses and fixed cost burdens persisted, but inventory write-downs are expected to decrease in coming quarters.

Financial highlights

• Revenue: 5,201 billion KRW in 2Q 2025, up 42.6% quarter-over-quarter.

• Operating loss: -1,212 billion KRW, improved from -1,403 billion KRW in 1Q 2025.

• Net loss: -1,126 billion KRW, with a net margin of -22%.

• Gross margin remained negative at -988 billion KRW.

• End-of-quarter cash balance fell to 1,476 billion KRW, down 51.6% quarter-over-quarter.

Outlook and guidance

• Shipment growth trend expected to continue, with full-year 2025 shipment volume projected to rise 30–40% year-over-year.

• Hi-Ni product shipments and market share recovery to drive further volume increases.

• Inventory valuation losses expected to decrease as raw material purchase contracts end.

• LFP business expansion planned, with mass production targeted for 4Q 2026 and supply to North American EV and ESS markets.