PI Advanced Materials (178920) Q2 2025 earnings summary

Executive summary

• Achieved significant quarter-over-quarter (QoQ) gains in 2Q25 despite a minor year-over-year (YoY) decline in sales, with strong operational recovery and improved utilization rates.

• Robust demand for graphite sheets and advanced industrials drove sales growth, offsetting high customer inventory from the previous quarter.

• Export sales increased, particularly for graphite sheets, while domestic advanced industrials also saw notable growth.

Financial highlights

• 2Q25 sales reached KRW 72.5bn, up 13.1% QoQ but down slightly YoY; EBITDA was KRW 23.1bn, up 34.7% QoQ.

• EBITDA margin improved to 31.8% in 2Q25 from 26.7% in 1Q25; operating profit rose to KRW 16.2bn, up 81.7% QoQ.

• Net profit for 2Q25 was KRW 11.7bn, up 93.4% QoQ; net profit margin increased to 16.2%.

• Gross profit margin for 1H25 was 29.1%, up from 27.2% in 1H24.

Outlook and guidance

• Market uncertainties are expected to persist in 2H25 due to macroeconomic challenges and tariff impacts.

• Growth drivers include rising demand for next-generation smartphones and premium models with on-device AI.

• Strategy focuses on expanding specialty film sales, acquiring new customers in Europe and North America, and maintaining profitability through operational discipline.