EcoPro BM (247540) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw strong consolidated revenue growth, with KRW 8,068B reported, up 13% QoQ, driven by robust secondary battery and environmental businesses, and supported by European EV sales and steady non-EV demand.

• Consolidated Indonesian subsidiary GEN, boosting both revenue and asset base.

• Notable valuation gain from derivatives linked to BM's stock price.

• Operating profit was KRW 20.9 billion, down 50% QoQ due to a high base effect from a one-time gain in Q4 2025.

• Average selling price increased 2% QoQ, reflecting higher metal prices and exchange rates.

Financial highlights

• EV-related revenue rose 24% QoQ, led by shipment recovery to Europe.

• Power applications revenue grew 20% QoQ, supported by AI-related construction and e-bike demand.

• ESS-related revenue increased 4% QoQ, driven by data center and renewable energy demand.

• EBIT rose to KRW 602B (7.3% margin), compared to KRW 468B (6.5%) in the previous quarter.

• Net income improved to KRW 2,110B, reversing prior losses.

Outlook and guidance

• Annual guidance remains unchanged; Q2 expected to see continued growth, especially in Europe, despite North American market risks.

• Hungary cathode plant scheduled for mass production in 2Q26, with ramp-up to 10,000 tons in 2026 and 30,000 tons in 2027.

• Expansion of customer base expected through new OEM cathode sales.

• Anticipated revenue growth from increased ESS precursor sales and higher Indonesia smelter utilization.

• Environmental sector performance expected to recover with semiconductor client CAPEX acceleration.