SK IE Technology (A361610) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q25 was KRW 58.2 billion, down slightly quarter-over-quarter but up 12% year-over-year, with profitability improving 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.

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.

• Operating profit reached KRW 69.6 billion, operating margin at 120%, up 35 percentage points year-over-year.

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

• Net profit for 1Q25 was KRW 21.6 billion, a significant improvement from the previous quarter.

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.

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