SK IE Technology (A361610) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was KRW 50.8 billion, down KRW 10.8 billion quarter-over-quarter and KRW 130.4 billion year-over-year, reflecting weak demand and lower product sales to key customers.

• Q3 2024 marked by continued investment in capacity expansion, R&D internalization, and a focus on high-quality separator products for EV and IT markets.

• LIBS sales volume in Q3 was 62 million square meters, down about 10% quarter-over-quarter.

• Downstream demand uncertainty persists, but gradual volume recovery is expected, especially with new North American customer shipments starting in July.

• Strategic partnerships and long-term supply contracts with major battery manufacturers underpin revenue streams.

Financial highlights

• Q3 2024 consolidated revenue: ₩158.6 billion, down sharply from ₩648.3 billion in Q3 2023.

• Operating loss of ₩199.1 billion in Q3 2024, compared to operating profit of ₩50.1 billion in Q3 2023.

• Net loss of ₩146.6 billion for Q3 2024, versus net profit of ₩82.2 billion in Q3 2023.

• Assets at end-Q3 2024 were KRW 4,056.9 billion, down KRW 26.9 billion from end-2023.

• Cash and cash equivalents at Q3 2024: ₩345.9 billion, down from ₩538.3 billion at year-end 2023.

Outlook and guidance

• Ongoing expansion in Poland expected to increase total production capacity to 2.7 billion m² by 2025.

• Q4 2024 expected to see some recovery in utilization rate due to new project shipments, but uncertainty remains.

• 2025 volume is anticipated to be significantly higher than 2024, driven by customer diversification and new projects.

• North American market expansion is planned regardless of U.S. election outcome, with final investment decisions expected in H1 2025.

• R&D focus on next-generation separators and carbon capture membranes to diversify future revenue streams.