SK IE Technology (A361610) Q2 2024 earnings summary

Executive summary

• Revenue for 2Q24 was KRW 61.6B, down KRW 90.2B year-over-year but up KRW 15.4B sequentially from 1Q24.

• Operating profit improved to KRW 58.7B, a KRW 64.3B increase year-over-year and up KRW 8.7B from 1Q24.

• Net profit reached KRW 48.0B, up KRW 85.1B year-over-year and up KRW 12.3B sequentially.

• Profitability improved due to increased shipment volumes and operational cost savings, despite fixed cost pressures from low utilization.

Financial highlights

• Gross margin rose to 48% in 2Q24 from 19% in 2Q23, a 67 percentage point increase.

• Operating margin reached 95% in 2Q24, up from 4% in 2Q23.

• EBITDA margin improved to 31% in 2Q24, up 2 percentage points year-over-year.

• Net debt increased by KRW 300.3B to KRW 1,159.9B compared to FY23.

Outlook and guidance

• Sales volume is expected to increase in 2H24 compared to 1H24.

• Limited recovery in utilization rate and profitability anticipated as existing inventory is depleted.

• Initial shipments to a new North American customer began in July 2024, with ongoing efforts to diversify the customer base in the region.

• Poland PH2 operation timeline and North America expansion decisions will be based on demand and policy factors in 2025.