SKC (011790) Q1 2025 earnings summary

Executive summary

• Revenue in Q1 2025 reached KRW 438.5 billion, up 9.9% year-over-year and 3.2% sequentially from 4Q24.

• Operating loss narrowed to KRW 74.5 billion, with an improved margin of -17.0% compared to -19.4% in 4Q24.

• Net loss attributable to common shareholders was KRW 104.9 billion, a significant improvement from KRW 260.1 billion in 4Q24, though another source reports a net loss of KRW 119.3 billion attributable to owners of the parent.

• The company completed major divestitures and business restructurings, including the sale of FCCL, CMP PAD, fine ceramics businesses, and several subsidiaries to focus on core high-value materials.

• The audit opinion for the quarter was unqualified, with no significant uncertainties related to going concern.

Financial highlights

• EBITDA improved to KRW -29.9 billion from KRW -35.8 billion in 4Q24.

• Profit before tax was KRW -127.0 billion, a sharp recovery from KRW -276.6 billion in the previous quarter.

• Net debt reduced to KRW 3,081.2 billion from KRW 3,548.2 billion at the end of 2024.

• Cash and cash equivalents at quarter-end were KRW 368.9 billion.

• Total assets stood at KRW 6.87 trillion, liabilities at KRW 4.64 trillion, and equity at KRW 2.23 trillion.

Outlook and guidance

• EV battery material sales expected to rise in 2Q25 with higher utilization at North America plants and customer inventory build-up due to tariff policy changes.

• Semi material segment anticipates a surge in sales to big tech customers and improved operating margin with high-value socket sales.

• Chemical segment expects PG sales outside the US to grow, but SM spreads to remain under pressure.

• Ongoing focus on high-value materials and cost optimization following recent divestitures.

• Continued investment in R&D and capacity expansion for battery copper foil, especially in Poland and Malaysia.