SKC (011790) Q1 2025 earnings summary

Executive summary

• Revenue in 1Q25 reached KRW 438.5 bn, up 9.9% year-over-year and 3.2% sequentially from 4Q24.

• Operating loss narrowed to KRW -74.5 bn, with an improved margin of -17.0% compared to -19.4% in 4Q24.

• Net loss attributable to common shareholders was KRW -104.9 bn, a significant improvement from KRW -260.1 bn in 4Q24.

Financial highlights

• EBITDA improved to KRW -29.9 bn from KRW -35.8 bn in 4Q24.

• Profit before tax was KRW -127.0 bn, a sharp recovery from KRW -276.6 bn in the previous quarter.

• Net debt reduced to KRW 3,081.2 bn from KRW 3,548.2 bn at the end of 2024.

Outlook and guidance

• EV battery material sales expected to rise in 2Q25 with higher utilization at North America plants and customer inventory build-up due to tariff policy changes.

• Semi material segment anticipates a surge in sales to big tech customers and improved operating margin with high-value socket sales.

• Chemical segment expects PG sales outside the US to grow, but SM spreads to remain under pressure.

• New long-term supply agreements for copper foil and increased production orders for test sockets from major tech and data center customers.