SKC (011790) Q3 2025 earnings summary

Executive summary

• Revenue reached KRW 506.0bn in 3Q25, up 14% year-over-year and 8% sequentially, with operating loss narrowing to KRW -52.8bn and OP margin improving to -10.4%.

• Net loss widened to KRW -99.0bn, mainly due to higher depreciation and one-off commission fees, despite EBITDA loss narrowing to KRW -7.8bn.

• Productivity gains in Malaysia and restructuring in the semiconductor segment contributed to operational improvements.

Financial highlights

• Revenue increased by KRW 62.3bn year-over-year and KRW 38.7bn quarter-over-quarter.

• Operating loss improved by KRW 17.4bn sequentially, with OP margin up 4.6 percentage points.

• EBITDA loss narrowed by KRW 16.5bn quarter-over-quarter.

• Net profit to common shareholders dropped to KRW -90.7bn from KRW 3.4bn in the previous quarter.

Outlook and guidance

• EV battery material segment targets record-high revenue in 4Q25, driven by continued sales growth and new ESS copper foil supply to a Canadian client.

• Semi material segment expects another record quarter as customers ramp up Al and high-end productions, with further margin improvement.

• Chemical segment anticipates higher PG sales but limited profitability due to narrowing SM spread.

• Ongoing asset divestments and active net debt management are planned, with a net debt target below KRW 2.5tn.