OCI Holdings Company (A010060) Q1 2025 earnings summary

Executive summary

• Q1 sales revenue reached KRW 947 billion with operating income of KRW 49 billion and a 5.1% margin, reversing a loss from Q4 due to improved Poly-Si sales, cost normalization, and a low base effect at DCRE.

• Net income was negative at KRW -15 billion, but EBITDA improved to KRW 107 billion, with an EBITDA margin of 11.4%.

• Most major subsidiaries, except the chemical business, improved operating results despite a market downturn.

Financial highlights

• Sales increased 10.9% quarter-over-quarter to KRW 947 billion, with operating income swinging from a loss of KRW -108 billion in Q4 2024 to a profit of KRW 49 billion in Q1 2025.

• Net debt reduced to KRW 258 billion, and the debt ratio improved to 67.0%.

• Net debt lowered through receivables collection, land sales, and debt repayment.

• Total assets stood at KRW 7,967 billion, with a leverage ratio of 67%.

Outlook and guidance

• Polysilicon operating rates to be reduced in Q2 to manage inventory and working capital.

• OCI TerraSus expects normal operations in 2H 2025 as tariff and solar policy uncertainties ease, with operations adjusted in Q2 2025 due to delayed demand recovery.

• U.S. solar cell production to begin in Q1 next year, with preparations on track and a target of 1 GW commercial operation.

• Targeting business turnaround in the second half of the year, with new sales contracts and strategic partnerships.

• DCRE to recognize sales from Complex 7 upon completion, with ongoing pre-sale and related expenses to be reflected.