EcoPro BM (247540) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw a significant recovery in core earnings, with key segments and subsidiaries returning to profitability due to higher metal prices, increased capacity utilization, and inventory valuation reversals, even without one-off gains from Indonesian smelter investments.

• Strategic investments in nickel smelters and upstream raw materials are expected to yield significant results in 2026, driving full-scale growth as all four Indonesian smelters become operational and consolidated.

• The group is focusing on growth in the energy storage system (ESS) market, diversifying its customer base, and expanding into next-generation battery materials and the solid-state battery value chain.

• Annual sales in some segments declined due to delayed customer CAPEX and utilization, but a rebound is expected as semiconductor recovery and customer investments accelerate.

Financial highlights

• Q4 2025 consolidated revenue was KRW 9,594 billion, up from KRW 7,336 billion in Q3 2025; full-year 2025 revenue was KRW 34,315 billion.

• Q4 2025 EBIT was KRW 662 billion, a turnaround from a loss of KRW -2,930 billion in Q3 2025; EBIT margin improved to 9.0% from -9.4% sequentially.

• EcoPro Materials Q4 2025 revenue was KRW 115.2 billion (up 82% QOQ), with operating profit of KRW 3.3 billion, marking a turnaround.

• Cash and cash equivalents surged 111% QOQ to KRW 11,866 billion, driven by a KRW 800 billion PRS transaction.

• EcoPro HN Q4 2025 revenue was KRW 39.2 billion (up 38% QOQ), with flat operating profit at KRW 2.3 billion.

Outlook and guidance

• 2026 is expected to be a year of full-scale growth, with all four Indonesian smelters operational and consolidated from January, and annual profit contribution from Indonesian smelters expected to exceed KRW 220 billion.

• Earnings momentum is projected to accelerate, especially in lithium and precursor businesses, with EcoPro Materials expecting precursor sales volume to rise 90% YoY in 2026 and external sales ratio targeted to reach 70%.

• EcoPro HN projects over 50% YoY revenue growth in 2026, driven by semiconductor and environmental businesses, with a rebound expected in GHG Reduction & Chemical Filter as customer CAPEX recovers.

• Upward revision of profit estimates tied to rising metal prices and exchange rates; further upside from North American ESS shipments and smelter ramp-up.