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.

• Revenue for H1 2025 was KRW 362.9 billion, down from KRW 902.3 billion in the previous year’s first half, with an operating loss of KRW 77.1 billion and a net loss attributable to owners of the parent of KRW 95.0 billion.

• The company operates in two main segments: materials (Elecfoil for batteries, AI, IT) and construction (curtain wall, building exteriors), with significant overseas expansion and R&D in next-generation battery materials.

• Major investments include ongoing capacity expansions in Malaysia and Spain, targeting the fast-growing EV and ESS markets.

• Operating losses narrowed in Q2 2025 compared to the previous quarter, reflecting higher sales volumes and production optimization.

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.

• Consolidated revenue for H1 2025: KRW 362.9 billion (down from KRW 902.3 billion YoY).

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.

• The company is focused on expanding high-end Elecfoil production capacity in Malaysia and Spain to capture EV and ESS market growth.

• R&D efforts are ongoing in next-generation battery materials, including solid-state electrolytes and LFP cathode materials.

• Management expects continued demand growth in battery and AI-related materials, with ongoing innovation to improve cost and quality competitiveness.