SK IE Technology (361610) Q2 2025 earnings summary

Executive summary

• Achieved significant sales and operating profit growth in 2Q25, driven by higher sales to North American and European customers and expansion in small ESS applications.

• The company specializes in lithium-ion battery separators (LiBS) with a global presence and is recognized as a top-tier player.

• Completed a major R&D center acquisition from SK Innovation to strengthen technological competitiveness.

• Finalized sale of Cheongju capacity and announced plans for further asset sales.

• Capital increase via third-party allotment of 10,489,508 new shares (KRW 300 billion) was resolved, impacting ownership structure.

Financial highlights

• Sales reached KRW 82.8 billion in 2Q25, up 24.6 billion QoQ and 21.2 billion YoY; H1 2025 consolidated revenue was KRW 140.96 billion.

• Gross profit was KRW 42.2 billion in 2Q25, while H1 2025 gross margin remained negative with a gross loss of KRW 24.79 billion.

• Operating profit rose to KRW 69.6 billion in 2Q25, but H1 2025 saw an operating loss of KRW 123.35 billion.

• Net profit for 2Q25 was KRW 21.6 billion, but H1 2025 recorded a net loss of KRW 40.68 billion.

• EBITDA margin increased to 56% in 2Q25 from 22% in 2Q24.

Outlook and guidance

• On track to meet 2025 sales target despite downstream industry uncertainties.

• Plans to expand customer base in high-growth ESS market and develop diversified products.

• Early 2026 launch planned for Poland Phase 2 operations; North America expansion under review.

• Expanding production capacity in Poland to target 2.7 billion m² total capacity.

• No dividend planned as reinvestment for growth is prioritized.