Solus Advanced Materials (A336370) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales reached KRW 157.6 billion, up 29.9% year-over-year but down 4.9% sequentially, with Battery Foil contributing 81% of sales.

• EBITDA dropped 32.0% year-over-year and 78.5% quarter-over-quarter to KRW 1.7 billion, reflecting increased fixed cost burden from reduced supply to Europe/North America.

• Operating loss widened to KRW -153 million in Q1 2025 from KRW -113 million in Q4 2024, with net loss attributable to owners at KRW -15.7 billion.

• Operates in Copper Foil/Battery Foil, OLED, and Advanced Materials segments, with global manufacturing and R&D presence.

• Significant investments in capacity expansion, especially in North America and Europe, to meet growing EV and ESS demand.

Financial highlights

• Q1 2025 consolidated revenue: KRW 157.6 billion; gross profit: KRW 11.6 billion with a 7.4% margin.

• Net loss for Q1 2025 was KRW -31.9 billion, compared to a net profit of KRW 1.26 billion in Q1 2023.

• Total assets reached KRW 2.13 trillion as of March 2025, with a debt ratio of 101%.

• Cash and cash equivalents at Q1 2025: KRW 140.5 billion.

• Total liabilities: KRW 1,073.8 billion.

Outlook and guidance

• Battery copper foil sales in Europe are expected to recover as EV demand rebounds and local supply expands.

• Ongoing expansion of North American battery foil plant, targeting 25,000 tons annual capacity by 2026.

• Focus on high-end battery foil for EV and ESS markets, with anticipated double-digit CAGR in global ESS demand.

• Copper foil segment aims to grow high-end product supply for AI market customers.

• OLED segment expanding into new materials and increasing production capacity to 103 tons by 2027.