Solus Advanced Materials (A336370) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached KRW 192.6 billion, up 22.2% YoY and 13.6% QoQ, driven by increased supply to existing and new battery copper foil customers.

• EBITDA turned to a loss YoY due to higher fixed costs and electricity rates from war impacts, but improved 61.8% QoQ to KRW -1.3 billion.

• Battery copper foil sales rose 47.0% QoQ and 2.0% YoY; copper foil sales up 9.7% QoQ and 53.5% YoY; OLED sales declined 17.1% QoQ and 8.8% YoY.

Financial highlights

• Operating profit margin for Q1 2026 was -11.4%, with an operating loss of KRW -22.0 billion.

• Gross profit for Q1 2026 was KRW 11.6 billion, with a gross margin of 6.0%.

• Net income for Q1 2026 was a loss of KRW -13.5 billion.

• Debt ratio increased to 128% as of December 2025, with borrowings at KRW 876.0 billion and cash at KRW 66.6 billion.

Outlook and guidance

• 2026 revenue is targeted at KRW 533 billion, with a turnaround expected in the battery copper foil business through portfolio diversification and supply expansion.

• Battery copper foil sales are projected to grow 114% YoY, with a focus on high-end products and ESS volumes.

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