Lotte Energy Materials (A020150) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw a significant decline in sales due to reduced EV demand from major clients and continued underutilization of production capacity.

• Ongoing operating losses and negative net income were reported, with expectations for gradual improvement through product diversification.

Financial highlights

• Revenue for Q3 2025 was KRW 144 billion, down 32% year-over-year and 29.9% quarter-over-quarter.

• Operating profit remained negative at KRW -34 billion, with a continued deficit margin of -23.9%.

• EBITDA was negative at KRW -11 billion, and net income was also negative at KRW -25 billion.

• Gross profit margin dropped to 6.0% in Q3 2025 from 14.9% in Q2 2025.

Outlook and guidance

• Despite a slowdown in the North American EV market, performance is expected to improve through expansion into high-value-added elecfoil for AI and ESS applications.

• Anticipated sales ramp-up for AI-focused elecfoil and ESS products starting in 2026, with new client qualifications expected in 2025.