Ecopro Co (086520) investor relations material

Executive summary

• Q3 consolidated revenue was KRW 810.7bn and EBIT KRW 11.2bn; weaker battery-material sales, lower metal prices and unfavorable FX pressured results.

• Smelter recovery supported revenue and HN profitability improved, while Materials’ operating loss widened.

• Q4 revenue growth is expected as upstream utilization recovers and new orders convert, but reverse-lag effects, metal prices and FX may weigh on margins.

Financial highlights

• Q3 consolidated EBITDA was KRW 66.4bn, or 8.2% of revenue; net loss was KRW 135.1bn.

• Consolidated assets were KRW 10.7972tn, liabilities KRW 5.9312tn and equity KRW 4.866tn at Q3-end, down 5.6%, 6.5% and 4% QoQ, respectively.

• Consolidated cash and equivalents were KRW 920.3bn, down 31% QoQ; inventories were KRW 1.1827tn, down 6.8% QoQ.

Outlook and guidance

• HN expects faster revenue contribution from air-pollution-control projects; Micron orders are expected to support ~50% FY 2026 revenue growth YoY.

• HN expects Q4 growth led by greenhouse-gas reduction projects, which represented ~80% of Q3-end backlog, and stable clean-room filter volumes tied to HBM investment.

• CNG expects full utilization and a sharp earnings recovery from Q4 on North American feedstock supply; Innovation sales should rise as new-customer shipments ramp up.

• Materials expects new North American precursor sales, Black Mass tolling clients through EcoPro CLS, and higher MHP sales as GEN utilization normalizes.

• Expected earnings drivers include lower nickel refining costs, higher Hungary plant utilization, environmental orders and new cathode-material project orders.