Ecopro Co (086520) Q1 2025 earnings summary

Executive summary

• Q1 2025 marked a turnaround to consolidated operating profit, ending a loss streak and signaling improved earnings and financial soundness, with EBIT and EBITDA both returning to positive territory.

• Revenue increased 24% QoQ to KRW 806.8 billion, driven by strong battery materials demand, new model launches, and inventory restocking.

• Profitability improvements were supported by favorable exchange rates, inventory valuation gains, and increased demand from major OEMs.

• The group operates as a holding company with two main business pillars: battery materials and environmental solutions, maintaining a diversified portfolio of subsidiaries and ongoing global expansion.

• Major investments continue in global battery materials capacity, R&D, and upstream raw material security, with expansion in North America and Europe.

Financial highlights

• Q1 2025 consolidated revenue was KRW 806.8 billion, up 24% QoQ, with operating income of KRW 55.0 billion and net loss of KRW -10.8 billion.

• EBIT improved to KRW 14 billion in Q1 2025 from a loss of KRW -998 billion in 4Q24; EBITDA reached KRW 513 billion.

• Inventory valuation gains contributed KRW 78.3 billion to consolidated results, reversing prior losses.

• Cash and cash equivalents at Q1 2025 were KRW 857.7 billion; consolidated debt ratio at 123%, with subsidiaries' ratios around 100% and HN at 49%.

• Inventory optimization led to a 27% QoQ reduction for Materials and 11% QoQ drop consolidated.

Outlook and guidance

• Profitability is expected to improve further in 2025, with the incorporation of PT Green Eco Nickel in Q2 and increased equity method profits from Indonesian investments.

• European EV market projected to grow 15% in 2025; cathode annual sales expected to rise 40% YoY.

• Lithium business to see 20% QoQ sales growth in Q2, with further customer diversification in H2.

• HN expects order inflow and top-line growth in Q2, with new business launches and product evaluations underway.

• The group is expanding battery materials production in North America and Europe to address IRA/CRMA risks and meet global EV/ESS demand.