SK (034730) Q4 2024 earnings summary

Executive summary

• FY24 consolidated revenue was KRW 124.69tn and operating profit KRW 2.36tn; pretax income returned to profit at KRW 1.10tn, supported by semiconductor-related earnings amid challenging energy, chemical and battery markets.

• Major unlisted subsidiaries’ combined revenue grew 6.4% YoY, while EBITDA declined 11.5% due to SK pharmteco’s losses after CBM consolidation.

Financial highlights

• FY24 consolidated revenue declined from KRW 128.80tn to KRW 124.69tn; operating profit fell from KRW 4.75tn to KRW 2.36tn.

• FY24 consolidated pretax income was KRW 1.10tn versus a loss of KRW 0.85tn in FY23.

• FY24 separate revenue was KRW 3.71tn and operating profit KRW 1.00tn, down from KRW 4.14tn and KRW 1.55tn, respectively.

Outlook and guidance

• FY25 major unlisted subsidiary revenue is expected to continue growing, with EBITDA improving as SK pharmteco losses narrow and SK materials’ profitability strengthens.

• SK siltron expects FY25 profit growth from stronger semiconductor demand, customer diversification, cost optimization and disciplined CAPEX; SiC wafer revenue target is >50% YoY growth, with EBITDA turnaround expected in 2H.

• SK materials CIC expects FY25 growth from value-added products, customer expansion and cost reductions; SK pharmteco expects revenue growth and improved profitability through partnerships and operational improvements.

• IT services FY25 growth is expected from financial and public-sector projects and AI service expansion.