Lotte Energy Materials (A020150) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose 18.9% sequentially, driven by higher copper prices, FX effects, and stronger ESS and Al Elecfoil sales.

• Operating loss remained similar due to lower utilization from a temporary North American customer suspension.

• Full-year 2025 revenue declined 24.9% year-over-year, mainly from weak EV demand in North America and lower utilization at EV customers.

• Operating loss widened year-over-year, with net income turning to a significant loss.

Financial highlights

• Q4 2025 revenue: KRW 1,709B, up 18.9% QoQ but down 8.3% YoY.

• Q4 2025 operating loss: KRW -338B (margin -19.8%), similar to previous quarter.

• Q4 2025 EBITDA: KRW -96B (margin -5.6%), continued deficit.

• Q4 2025 net income: KRW -315B (margin -18.5%), deepening loss.

• FY2025 revenue: KRW 6,775B, down 24.9% YoY; operating loss: KRW -1,452B (margin -21.4%); net loss: KRW -1,623B (margin -23.9%).

Outlook and guidance

• 1H 2026: Recovery at EV customers expected to remain slow.

• 2H 2026: ESS sales projected to increase as major customers shift capacity; Al Elecfoil to support profitability turnaround.

• Utilization expected to rise with Malaysia Lines 5 and 6 starting operations.

• Profitability anticipated to improve significantly YoY, supported by product diversification (ESS, AI, Mobile).