Ecopro Co (086520) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue reached KRW 931.7 billion, recovering to Q2 2024 levels, with operating profit at KRW 16.2 billion, reversing a KRW 50 billion loss last year.

• Profitability was driven by structural improvements in cathode materials, cost innovations, and returns from Indonesian investments.

• Indonesia investment phase 1 completed, generating significant annual profit and visible returns, with further integration and technology initiatives underway.

• Operates as a holding company with two main business pillars: battery materials (cathode, precursor, lithium, recycling) and environmental solutions (air pollution, water treatment).

• Group structure includes 22 consolidated subsidiaries, with recent expansion in Hungary and Indonesia.

Financial highlights

• Q2 consolidated revenue rose 15% QoQ to KRW 931.7 billion; operating profit reached KRW 16.2 billion, expanding profit margin.

• Ecopro HN's revenue grew 13% QoQ to KRW 39 billion, with operating profit at KRW 3.7 billion due to COGS reduction and product mix improvement.

• Ecopro Materials' revenue fell 43% QoQ to KRW 78.1 billion, with an operating loss of KRW 28.8 billion, impacted by lower ASP and shipment volume.

• Indonesian investment contributed KRW 84.2 billion in revenue and KRW 44.6 billion in operating profit in Q2.

• Cash and cash equivalents at period end: KRW 821.4 billion.

Outlook and guidance

• Positive earnings trajectory expected to continue through H2 2025, supported by new customer wins and European EV market strength.

• ESS demand in the U.S. and Korea is expected to remain solid, with benefits from national projects and resumed subsidies in Europe.

• Ecopro Materials anticipates non-captive sales share to exceed 50% in H2 2025 and reach 60-70% in 2026.

• Green Eco Nickel acquisition to finalize in Q3, improving profitability through low-cost raw materials.

• Battery materials market expected to grow with global EV and ESS expansion; company expanding production in North America, Europe, and Indonesia.