Korea Electric Power (015760) Q4 2026 earnings summary

Executive summary

• Consolidated revenue for 2025 was KRW 97.4345 trillion, up 4.3% year-over-year, with operating income of KRW 13.5248 trillion and net income of KRW 8.7372 trillion, reflecting a 141.2% increase in net income and improved profitability.

• Sales growth was driven by a 4.6% increase in electricity sales price, despite a 0.1% decrease in sales volume.

• Cost of goods sold and SG&A decreased by 1.3%, with significant reductions in fuel costs (down 13.8%) and power purchase costs (down up to 2.2%).

• Interest expense fell by KRW 325.6 billion year-over-year to KRW 4.3395 trillion.

Financial highlights

• Power sales volume was 549.4 TWh, a 0.1% decrease year-over-year due to weaker industrial demand.

• EBITDA margin improved to 28.0% in 2025 from 23.9% in 2024, with operating margin at 13.9% and net profit margin at 9.0%.

• ROE increased to 8.8% in 2025 from 3.4% in 2024.

• RPS expense for 2025 was KRW 3.9897 trillion (consolidated), with borrowings at KRW 129.8 trillion as of Q4.

Outlook and guidance

• Power sales volume is expected to slightly increase in 2026, supported by higher economic growth and more operating days.

• Generation mix in 2026 is projected to see increased nuclear contribution, decreased coal, and stable LNG share; nuclear capacity factor expected in mid-high 80%, coal mid-40%, LNG early to mid-20%.

• Committed to achieving net zero emissions by 2050, with a roadmap to reduce national carbon emissions by up to 61% by 2035.

• Plans to phase out coal-fired power by 2050 and expand renewable and nuclear generation.