W-Scope Chungju Plant (A393890) Q1 2025 earnings summary

Executive summary

• Revenue in 1Q25 declined sharply to KRW 16.3bn, down from KRW 122.4bn in 1Q24 and KRW 17.5bn in 4Q24, reflecting a significant contraction year-over-year and sequentially.

• Operating profit turned negative at -KRW 48.4bn (-276.5%), compared to a small profit in 1Q24, indicating a substantial deterioration in profitability.

• Net profit also turned negative at -KRW 51.7bn, a steep drop from KRW 3.3bn in 1Q24, highlighting ongoing losses.

Financial highlights

• Gross profit margin fell to -251.4% in 1Q25 from 4.0% in 1Q24, indicating severe margin pressure.

• EBITDA dropped to -KRW 33.8bn (-193.1%) in 1Q25 from KRW 15.1bn (12.3%) in 1Q24.

• CAPEX was KRW 142.2bn in 1Q25, down from KRW 175.0bn in 4Q24 and KRW 147.4bn in 1Q24.

Outlook and guidance

• 2Q25 revenue expected to increase due to higher US shipments for a main customer.

• Ongoing efforts to reduce losses and aggressively pursue new large orders.

• From 2026, plans to diversify customer base and achieve rapid global growth, targeting double-digit operating margins after 2028.