SK IE Technology (A361610) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 58.2 billion, down sharply from KRW 217.9 billion in Q1 2024, reflecting a significant contraction in sales, but up 12% year-over-year with improved profitability due to the absence of prior one-off expenses and inventory reduction strategy.

• Customer portfolio diversification advanced, with new supply agreements and initial shipments to North American customers, and ongoing certification for new projects.

• Operating loss for Q1 2025 was KRW 69.6 billion, a slight increase from KRW 67.4 billion in Q1 2024, with continued negative profitability.

• Net loss attributable to shareholders was KRW 21.7 billion, improved from a net loss of KRW 62.5 billion in Q1 2024.

• The company continues to invest in expanding production capacity, particularly in Poland, with total assets rising to KRW 4.25 trillion.

Financial highlights

• Gross profit for 1Q25 was KRW 42.2 billion, with a gross profit margin of 73%, up 19 percentage points year-over-year, but gross loss widened to KRW 42.2 billion in Q1 2025 from KRW 33.5 billion in Q1 2024.

• Finance income surged to KRW 70.4 billion, mainly from foreign exchange gains, while finance costs also increased to KRW 48.6 billion.

• Basic loss per share was KRW 304, an improvement from KRW 876 in Q1 2024.

• Cash and cash equivalents at quarter-end were KRW 247.0 billion, down from KRW 276.3 billion at the previous year-end.

• EBITDA was KRW 53.7 billion, EBITDA margin at 91%, up 35 percentage points year-over-year.

Outlook and guidance

• 2Q25 is expected to see a meaningful uplift in volume from deferred shipments and new North American customer projects.

• Utilization rates at Korea and Poland plants are projected to rise due to inventory reduction and new project production.

• The company is expanding production capacity in Poland, aiming for a total capability of 2.7 billion m² upon completion of ongoing investments.

• Management expects further strengthening of technology competitiveness through internalization of R&D and continued investment in next-generation battery materials.

• ASP may fluctuate due to higher base film sales and foreign exchange rate changes.