Korea Electric Power (015760) Q1 2026 earnings summary

Executive summary

• Achieved consolidated revenue of ₩24.4 trillion in Q1 2026, up 0.7% year-over-year, with operating profit of ₩3.8 trillion and net income of ₩2.5 trillion.

• Separate revenue slightly decreased by 0.6% year-over-year, but operating profit rose by 9.8% to ₩2.1 trillion.

• The company maintained a strong liquidity position with cash and cash equivalents of ₩2.0 trillion and total assets of ₩257.8 trillion.

• Net income increased 6.7% year-over-year on a consolidated basis and 14.7% on a separate basis.

• Major investments continued in power grid expansion, renewable energy, and overseas projects.

Financial highlights

• Q1 2026 revenue: ₩24.4 trillion (+0.7% YoY); operating income: ₩3.8 trillion; net income: ₩2.5 trillion.

• Consolidated operating expenses rose 0.7% year-over-year, mainly due to a 4.1% increase in fuel costs and higher depreciation.

• EBITDA margin improved to 28.0% in 2025 from 23.9% in 2024.

• ROE turned positive at 3.7% in 2025 after negative results in prior years; annualized ROE for Q1 2026 was 4.9%.

• Operating margin: 15.5% and net margin: 10.3% for Q1 2026.

Outlook and guidance

• Plans to achieve 2050 net zero through coal phase-out, nuclear and renewables expansion, and grid digitalization.

• 11th Basic Plan targets 33% renewables and 35% nuclear share in power generation by 2038.

• Ongoing investments in new nuclear, LNG, and renewable capacity to meet rising demand from advanced industries.

• Continued focus on financial stability, cost control, and maintaining high credit ratings.

• Guidance includes further capital expenditures in domestic and overseas projects.