Solus Advanced Materials (336370) Q4 2025 earnings summary

Executive summary

• Sales in 4Q 2025 rose 17.0% sequentially and 2.5% year-over-year, reaching KRW 169.8 billion, driven by a rebound in copper foil and OLED segments despite a sharp YoY drop in battery copper foil sales.

• 2025 annual sales increased 8.0% YoY to KRW 616.4 billion, but EBITDA turned negative due to production adjustments and fixed costs from weak battery copper foil demand.

• The company is targeting a turnaround in 2026, focusing on battery copper foil and OLED businesses, with a projected revenue of KRW 533 billion and significant growth in battery copper foil sales.

Financial highlights

• 4Q 2025 sales: KRW 169.8 billion (+17.0% QoQ, +2.5% YoY); battery copper foil sales fell 48.1% YoY but rose 14.3% QoQ.

• Copper foil sales surged 80.2% YoY and 24.9% QoQ; OLED sales were stable (+1.6% QoQ, +0.6% YoY).

• 2025 EBITDA: KRW -2.6 billion (deficit); operating profit: KRW -71.5 billion (down 31.3% YoY).

• Gross margin for 2025: KRW 41.2 billion; operating margin: -11.6%.

Outlook and guidance

• 2026 revenue forecast: KRW 533 billion, with battery copper foil business expected to achieve its first turnaround year.

• Battery copper foil sales targeted to grow 114%, driven by portfolio diversification and new customer acquisitions.

• OLED business aims for 10% sales growth, leveraging new products and Chinese subsidiaries.

• Streamlining to focus on battery copper foil for improved profitability and market leadership.