SKC (011790) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q25 reached KRW 467.3 bn, up 13.9 bn year-over-year and 28.8 bn quarter-over-quarter.

• Operating loss narrowed to -70.2 bn, with OP margin at -15.0%, improving 1.9 percentage points sequentially.

• Net profit improved significantly to -4.0 bn from -117.8 bn in the previous quarter, with profit to common shareholders turning positive at 3.4 bn.

Financial highlights

• EBITDA loss reduced to -25.3 bn, a sequential improvement of 2.7 bn.

• Profit before tax was -172.2 bn, down 45.1 bn quarter-over-quarter.

• Net debt decreased to 2,587.8 bn from 2,822.1 bn at the end of FY2024.

• Cash and cash equivalents increased to 1,023.6 bn.

Outlook and guidance

• EV battery material segment expects 40% topline growth in 3Q25, driven by strong EV and ESS demand in North America.

• Semi material segment anticipates historic high quarterly revenue and profit stabilization, with growth led by Big Tech and new integrated solutions.

• Chemical segment faces weaker North American sales due to US tariffs, partially offset by diversification in EU and Asia.