SKC (011790) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q25 reached KRW 467.3 bn, up 13.9 bn year-over-year and 28.8 bn quarter-over-quarter.

• Operating loss narrowed to -70.2 bn, with OP margin at -15.0%, improving 1.9 percentage points sequentially.

• Net profit improved significantly to -4.0 bn from -117.8 bn in the previous quarter, with profit to common shareholders turning positive at 3.4 bn.

• Focused on advanced materials for secondary batteries, semiconductors, and chemicals, with ongoing business portfolio restructuring and divestitures to enhance core competitiveness and financial stability.

• Major divestitures and M&A activities include the sale of non-core businesses, expansion in battery materials, and strategic investments in ESG and semiconductor sectors.

Financial highlights

• 2025 H1 consolidated revenue: KRW 905.8B, down from KRW 1,721.6B in H1 2024.

• Operating loss: KRW -144.6B (H1 2025), improved from KRW -276.8B (H1 2024).

• Net loss from continuing operations: KRW -101.5B (H1 2025), compared to KRW -443.5B (H1 2024).

• Net debt decreased to 2,587.8 bn from 2,822.1 bn at the end of FY2024.

• Cash and cash equivalents increased to 1,023.6 bn.

Outlook and guidance

• EV battery material segment expects 40% topline growth in 3Q25, driven by strong EV and ESS demand in North America.

• Semi material segment anticipates historic high quarterly revenue and profit stabilization, with growth led by Big Tech and new integrated solutions.

• Continued focus on high-growth battery materials and semiconductor test solutions.

• Ongoing restructuring to divest non-core and underperforming assets, with proceeds reinvested in strategic growth areas.

• Expansion of global production capacity, especially in copper foil and eco-friendly materials.