Ecopro Co (086520) Q2 2026 earnings summary

Executive summary

• Revenue continued to grow in 2Q26, with consolidated sales reaching KRW 8,208 billion, up from KRW 8,183 billion in the previous quarter and KRW 7,151 billion in 2Q25.

• The group operates as a holding company with core businesses in battery materials and environmental solutions, supporting subsidiaries through investment, resource procurement, and strategic guidance.

• Major subsidiaries include battery materials (Ecopro BM, Ecopro Materials) and environmental solutions (Ecopro HN), with global expansion and vertical integration across the battery value chain.

• Recent years saw significant investments, new plant constructions, and strategic partnerships, including major supply contracts with global EV and battery manufacturers.

• The company is expanding its value chain through upstream resource sourcing, urban mining, and future business areas such as next-gen battery and semiconductor materials.

Financial highlights

• 2Q26 consolidated EBIT was KRW 329 billion (4.0% margin), down from KRW 564 billion (6.9%) in 1Q26 and KRW 162 billion (1.7%) in 2Q25.

• EBITDA for 2Q26 was KRW 838 billion (10% margin), compared to KRW 1,062 billion (13%) in 1Q26.

• Net income for 2Q26 was KRW 492 billion, a decrease from KRW 2,365 billion in 1Q26.

• Consolidated revenue for H1 2026 was KRW 1,639.8 billion, down from KRW 3,413.0 billion in H1 2025.

• Cash and equivalents increased 44% QoQ to KRW 13,364 billion, driven by PRS settlement proceeds.

Outlook and guidance

• Indonesian smelter utilization is expected to recover, supporting future profitability.

• Environmental business is projected to continue improving, and stable lithium profitability is anticipated.

• Earnings recovery is expected in 2H26 for the holding company, with stable revenue and earnings in lithium.

• The company targets stable dividends with a payout ratio around 30% of controlling interest net income, balancing growth investments and shareholder returns.

• Ongoing expansion in battery materials and environmental solutions, with new facilities and R&D to support growth in EV, ESS, and semiconductor markets.