PI Advanced Materials (178920) Q2 2025 earnings summary

Executive summary

• Achieved significant QoQ gains in 2Q25 despite a minor YoY sales decline, with strong operational recovery and improved utilization rates.

• Specializes in manufacturing PI films, varnish, powder, and molded products, with 99.9% of sales from these items as of mid-2025.

• Holds global market leadership in PI film since 2014, supplying to IT, automotive, and industrial sectors.

• Major shareholder changed to Arkema Korea Holding in December 2023, holding 54.07% equity.

• No subsidiaries or affiliates as of the reporting date.

Financial highlights

• 2Q25 sales reached KRW 72.5bn, up 13.1% QoQ but down YoY; EBITDA was KRW 23.1bn, up 34.7% QoQ.

• H1 2025 revenue: KRW 136.6B; operating income: KRW 24.8B; net income: KRW 17.6B; EPS: KRW 598.

• Net profit for 2Q25 was KRW 11.7bn, up 93.4% QoQ; net profit margin increased to 16.2%.

• Gross profit margin for 1H25 was 29.1%, up from 27.2% in 1H24.

• Cash and cash equivalents at period end: KRW 73.9B.

Outlook and guidance

• Market uncertainties are expected to persist in 2H25 due to macroeconomic challenges and tariff impacts.

• Ongoing investment in new PI varnish production line for EV applications, with completion extended to December 2028.

• Growth drivers include rising demand for next-generation smartphones and premium models with on-device AI.

• Focus on expanding product portfolio and global market reach, especially in high-growth sectors like EV batteries and flexible displays.

• Strategy includes expanding specialty film sales, acquiring new customers in Europe and North America, and maintaining profitability through operational discipline.