PI Advanced Materials (178920) Q3 2026 earnings summary

Executive summary

• Q3 2026 sales were KRW 55.5bn, down 18.8% YoY, amid weak mobile demand and chipflation; EBITDA margin rose to 35.0% from 29.3%.

• 9M revenue fell to KRW 197.1bn from KRW 205.0bn, while operating and net income increased; cash rose and borrowings declined.

Financial highlights

• Q3 sales were KRW 55.5bn, down 18.8% YoY and 28.3% QoQ; gross profit was KRW 19.4bn and gross margin 34.9% versus 27.2% YoY.

• Q3 EBITDA was KRW 19.5bn versus KRW 20.1bn YoY, with margin rising to 35.0% from 29.3%; operating profit was KRW 12.5bn versus KRW 11.6bn, with margin at 22.6% from 17.0%.

• Q3 net profit was KRW 9.3bn versus KRW 8.4bn YoY; net margin increased to 16.7% from 12.3%.

• 9M gross profit was KRW 71.9bn versus KRW 58.3bn YoY; operating income was KRW 49.6bn versus KRW 36.4bn, and net income was KRW 37.3bn versus KRW 26.0bn.

• 9M operating cash flow was KRW 50.5bn versus KRW 52.5bn YoY; basic EPS was KRW 1,271 versus KRW 885.

Outlook and guidance

• Q4 outlook cited greater demand volatility, customer inventory-management swings and year-end inventory adjustments.

• Plans include flexible responses to smartphone-launch demand, higher-value product mix, specialty-material expansion and faster entry into non-film products and new industries.

• Development targets EVs, flexible displays, semiconductors and advanced industries; a 3,000-tonne/year PI varnish line for EV-specific production is planned, with completion extended to December 31, 2028.

• R&D priorities include application development and collaborative projects in megatrend industries; flexible-display growth is expected to support PI film and varnish demand.