SKC (011790) Q3 2025 earnings summary

Executive summary

• Revenue reached KRW 506.0bn in 3Q25, up 14% year-over-year and 8% sequentially, with operating loss narrowing to KRW -52.8bn and OP margin improving to -10.4%.

• Net loss widened to KRW -99.0bn in 3Q25, mainly due to higher depreciation and one-off commission fees, despite EBITDA loss narrowing to KRW -7.8bn.

• For the first nine months of 2025, revenue was KRW 1.41 trillion, down from KRW 1.72 trillion in 2024, reflecting business divestitures and restructuring.

• Operating loss for the nine months was KRW 197.4bn, an improvement from a loss of KRW 276.8bn in the prior year.

• Major restructuring included divestitures of non-core and overseas businesses, and the absorption of SK Enpulse.

Financial highlights

• Revenue increased by KRW 62.3bn year-over-year and KRW 38.7bn quarter-over-quarter in 3Q25.

• Operating loss improved by KRW 17.4bn sequentially, with OP margin up 4.6 percentage points in 3Q25.

• Cash and cash equivalents increased to KRW 1,066.4bn as of 3Q25.

• Total assets at September 30, 2025, were KRW 7.07 trillion, up from KRW 6.75 trillion at year-end 2024.

• Equity attributable to owners was KRW 1.33 trillion, with a debt ratio of 182.4%.

Outlook and guidance

• EV battery material segment targets record-high revenue in 4Q25, driven by sales growth and new ESS copper foil supply to a Canadian client.

• Semi material segment expects another record quarter as customers ramp up Al and high-end productions, with further margin improvement.

• Management expects continued focus on core high-value materials and further improvement in financial structure.

• Ongoing asset divestments and active net debt management are planned, with a net debt target below KRW 2.5tn.

• The company is targeting improved profitability through cost control and business portfolio optimization.