Lotte Energy Materials (A020150) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw revenue growth of 22.0% year-over-year, driven by a resurgence in orders from major clients and improved capacity utilization despite challenging external conditions.

• Operating losses narrowed compared to the previous quarter, reflecting higher sales volumes and production optimization.

• Inventory reduction in H1 2025 lowered fixed cost burdens and set the stage for higher capacity utilization and sales growth in H2 2025.

Financial highlights

• Q2 2025 revenue reached KRW 205 billion, up from KRW 158 billion in Q1 2025.

• Operating loss reduced to KRW 31 billion in Q2 2025 from KRW 46 billion in Q1 2025.

• EBITDA improved to negative KRW 8 billion in Q2 2025 from negative KRW 23 billion in Q1 2025.

• Net loss narrowed to KRW 51 billion in Q2 2025 from KRW 55 billion in Q1 2025.

• Gross profit margin improved to 14.9% in Q2 2025 from 1.3% in Q1 2025.

Outlook and guidance

• Persistent uncertainties in the North American EV market are expected, but gradual performance improvements are anticipated through product diversification and new customer expansion.

• Capacity utilization is forecasted to reach approximately 70% in H2 2025, supporting further sales growth.