W-Scope Chungju Plant (393890) Q4 2025 earnings summary

Executive summary

• Revenue in 4Q25 was KRW 27.1bn, down 2.0bn QoQ but up 9.6bn YoY, reflecting a partial recovery from prior lows.

• Operating and net losses continued, with operating profit at -39.3bn and net profit at -43.9bn in 4Q25.

• Ongoing cost reduction and manufacturing innovation initiatives are in place, but lower utilization rates increased fixed costs.

Financial highlights

• Gross profit for 4Q25 was -35.9bn, with a margin of -132.4%, indicating continued negative profitability.

• EBITDA for 4Q25 was -24.2bn, with a margin of -89.2%.

• CAPEX dropped sharply to 19.5bn in 4Q25 from 47.3bn in 3Q25.

• Cash balance declined to 26.9bn in 4Q25 from 48.8bn in 3Q25.

Outlook and guidance

• ESS segment expects demand surge from a key customer and plans to add a new Korean client in 2026.

• EV segment targets US and Japanese customers, with anticipated deal progress in 2026.

• Operating profit is expected to improve sequentially, with a turnaround targeted in 2H26 as utilization rises.

• Global separator market projected to grow 15% YoY in FY26, with North America ESS market up 59%.