Ecopro Co (086520) Q3 2025 earnings summary

Executive summary

• Entered phase two of Indonesia IGIP investment after completing phase one IMIP, securing significant nickel offtake rights and profit contributions.

• Consolidated revenue increased to KRW 9,597B in 3Q25, with profitability improving due to smelter acquisition gains and higher precursor and lithium sales.

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

• Expansion in Europe underway with new plant in Hungary and entity in Germany to broaden customer base.

• Major business activities include investment management, resource procurement, and providing shared services to subsidiaries.

Financial highlights

• 3Q25 consolidated revenue: KRW 9,597B, up from KRW 9,317B in 2Q25; EBIT turned positive at KRW 162B; EBITDA improved to KRW 2,020B; net income reached KRW 1,746B.

• Operating income for the first three quarters of 2025 was KRW 167.0 billion, compared to a loss of KRW 293.0 billion in 2024.

• Cash and equivalents decreased to KRW 563.0 billion at Q3 2025, mainly due to bond repayments and acquisition payments.

• EcoPro HN Q3 sales: KRW 28.4 billion, down 27% quarter-on-quarter; operating profit: KRW 2.3 billion, down 36% quarter-on-quarter.

• EcoPro Materials Q3 sales: KRW 63.2 billion, down 19% quarter-on-quarter; operating loss: KRW 25.1 billion; net income boosted by KRW 164.3 billion bargain purchase gain.

Outlook and guidance

• GEN ramp-up and Green Eco Nickel consolidation expected to further boost revenue and margins.

• Depreciation expense to decrease significantly from Q4 due to extension of useful life of production equipment.

• The company is expanding production capacity for battery materials in North America and Europe to address geopolitical risks and meet growing demand.

• Ongoing investments in R&D and new business areas, including sodium-ion batteries and carbon reduction technologies, are expected to drive future growth.

• EcoPro Materials expects strong precursor sales growth in Q4 and improved profitability from higher cobalt prices and new orders.