L&F (066970) Q4 2025 earnings summary

Executive summary

• FY25 shipments rose 34% year-over-year, led by record Hi-Ni cathode sales despite a slowdown in global EV demand.

• Revenue reached KRW 2.15 trillion, up 13% year-over-year, with a significant operating profit recovery in the second half.

• Q4'25 saw a 69% year-over-year revenue increase and a 273% sequential surge in operating profit, driven by strong Hi-Ni shipments and favorable material prices.

Financial highlights

• Q4'25 revenue was KRW 617.8 billion, down 5% sequentially but up 69% year-over-year.

• Q4'25 operating profit reached KRW 82.4 billion (OPM: 13%), up 273% sequentially, supported by a KRW 77.9 billion reversal of lithium inventory valuation losses.

• FY25 operating profit improved 72.9% year-over-year, with a turnaround to profitability in the second half.

• Q4'25 ending cash balance was KRW 382.9 billion, up 21% sequentially, reflecting improved cash flow from warrant exercises and treasury stock sales.

Outlook and guidance

• FY26 product shipments are expected to grow 20% year-over-year, with record NCM cathode sales driven by Hi-Ni products.

• Full-year operating profit is projected to remain positive, with further improvement as raw material inventory is depleted and material prices rise.

• Non-China LFP cathode production is set to begin in Q3'26, targeting AI data centers, ESS, and mid-to-low price EV markets.