OCI Holdings Company (A010060) Q2 2025 earnings summary

Executive summary

• Q2 sales revenue was KRW 776 billion, down 18% year-over-year, with an operating loss of KRW 78 billion as all major subsidiaries faced macroeconomic and U.S. policy headwinds.

• OCI TerraXas/TerraSus and DCRE posted significant losses, with TerraXas/TerraSus hit by declining sales and operational halts, and DCRE affected by land valuation losses.

• Management is focused on strategic realignment in response to U.S. policy changes, including the Inflation Reduction Act and OBBB Act, while maintaining financial stability.

Financial highlights

• Q2 sales fell 18% year-over-year to KRW 776 billion; operating income turned negative at KRW 78 billion.

• Net income was a loss of KRW 76 billion, compared to a loss of KRW 15 billion in Q1.

• EBITDA dropped to KRW -15.4 billion from KRW 105 billion in Q1.

• Net debt ratio increased to 12% from 5.4% due to bond issuance; net debt at KRW 553 billion.

• Total assets at Q2 end were KRW 7,653 billion, with liabilities of KRW 3,054 billion and equity of KRW 4,599 billion.

Outlook and guidance

• OCI TerraXas/TerraSus plant scheduled to restart in Q3 as demand is expected to recover with new U.S. policy enactment.

• DCRE sales and operating income expected to grow in Q3, driven by construction progress and pre-sale of Complex 8.

• OCI Enterprises to start ODM business and complete a 220 MW project sale in Q3.

• Anticipated improvement in earnings in the second half of the year as market demand recovers, though semiconductor demand remains sluggish.