Solum (248070) Q2 2025 earnings summary

Executive summary

• Achieved highest quarterly sales since 2023 3Q, driven by strengthened global sales and business strategy execution.

• The company operates globally in electronic components and ICT, with 24 consolidated subsidiaries and a diversified product portfolio including power modules, 3IN1 boards, ESL, and IoT products.

• Recent business expansion includes new subsidiaries in cosmetics and healthcare, and entry into new markets such as Singapore, Brazil, and Australia.

• Mega Project for a major North American customer progressing well, expected to drive mid-term topline growth.

• Acquired GDK Cosmetics, a stable cash-generating business, with positive impact expected from 3Q.

Financial highlights

• 2Q25 sales reached KRW 402.6 bn, up 8.6% year-over-year and 5.2% sequentially.

• Consolidated revenue for H1 2025 was KRW 799.97 billion, down from KRW 1.59 trillion in H1 2024.

• Operating profit was KRW 12.2 bn in 2Q25, down 8.3 bn year-over-year but up 0.7 bn sequentially.

• Net income attributable to owners was KRW 13.03 billion for H1 2025, compared to KRW 39.52 billion in H1 2024.

• Gross margin improved to 16.5% in 2Q25, up 0.5 percentage points year-over-year; H1 2025 gross margin was 16.6%.

Outlook and guidance

• Sales and profit in Electronics expected to recover to normal levels in 3Q with improved production utilization.

• The company is expanding into healthcare and secondary battery reuse, targeting high-growth markets such as wearable healthcare devices and EV battery recycling.

• GDK Cosmetics acquisition anticipated to positively impact consolidated financials starting 3Q.

• Plans include further product diversification, global market expansion, and continued investment in R&D and new business lines.