SKC (011790) Q1 2026 earnings summary

Executive summary

• Revenue in 1Q 2026 reached 4,966 billion KRW, up 13.4% year-over-year and 16% sequentially from 4Q 2025.

• Operating loss narrowed to -287 billion KRW, a significant improvement from -1,076 billion KRW in the previous quarter.

• EBITDA turned positive at 100 billion KRW, marking the first positive result since 2Q 2023.

• Net loss reduced to -756 billion KRW, improving both year-over-year and quarter-over-quarter.

• The group operates in secondary battery materials, chemicals, and semiconductor materials, with a focus on copper foil for batteries, propylene oxide/propylene glycol, and semiconductor test sockets. Recent years saw significant restructuring, including divestitures and mergers to streamline operations and improve financial health.

Financial highlights

• Gross profit improved to 417 billion KRW from a loss in the previous quarter.

• Operating margin improved, with operating loss shrinking by 789 billion KRW sequentially.

• EBITDA swung to a profit of 100 billion KRW from a loss of -547 billion KRW in 4Q 2025.

• Net loss attributable to controlling interests was -816 billion KRW, a sharp improvement from -5,422 billion KRW in 4Q 2025.

• Total assets stood at KRW 6.77 trillion, with liabilities of KRW 4.75 trillion and equity of KRW 2.01 trillion.

Outlook and guidance

• 2Q 2026 expects further sales growth in battery materials as new production lines ramp up and Malaysia plant targets over 70% production/sales share.

• Semiconductor materials segment to expand with new customer acquisitions and capacity investments in Vietnam.

• Planned rights offering to strengthen financial structure, with new shares to be listed in June.

• The company is focusing on core growth areas, especially battery materials and high-value chemicals, while continuing to divest non-core assets.

• Ongoing investments in copper foil capacity and R&D for next-generation battery and semiconductor materials are expected to support future growth.