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SK Innovation (096770) investor relations material

SK Innovation Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary31 Oct, 2025

Executive summary

  • Achieved a turnaround in operating profit, moving from a loss of KRW 417.6 billion in Q2 to a profit of KRW 573.5 billion in Q3 2025, driven by strong refining and E&S performance.

  • Signed a 1 GWh ESS supply agreement with Flatiron Energy Development, securing up to 7.2 GWh supply rights through 2030 and expanding LFP battery portfolio.

  • SK On and SK Enmove merger effective November 1, 2025, expected to strengthen financials and create new business synergies, including immersion cooling and battery package businesses.

  • Secured first mass production and supply of LFP batteries, diversifying the product lineup.

Financial highlights

  • Q3 sales rose KRW 1,226.6 billion QoQ to KRW 20,533.2 billion, driven by refinery and petrochemical revenue growth.

  • Operating profit turned positive at KRW 573.5 billion, up KRW 991.1 billion QoQ, due to higher crude prices and refining margins.

  • EBITDA rose to KRW 1,366.8 billion from KRW 379.2 billion in the previous quarter.

  • Profit before tax swung from a loss of KRW 1,260.8 billion to a profit of KRW 69.0 billion QoQ.

  • Non-operating loss narrowed to KRW 504.5 billion, with FX-related and product derivative losses reduced.

Outlook and guidance

  • Refining margins expected to remain firm due to OPEC+ production, geopolitical risks, and seasonal factors.

  • Battery business anticipates continued European sales growth but U.S. sales may decline due to subsidy removal and tariffs; will accelerate ESS business expansion.

  • Lubricants demand expected to soften in Q4 due to seasonality.

  • Petrochemical market to remain weak amid U.S.-China trade conflict, with focus on optimizing capacity and operations.

  • Capex for 2026 projected to be about 50% lower than 2025 as major investments conclude.

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Frequently asked questions

SK Innovation Ltd. is a South Korean energy and chemical company engaged in petroleum refining, battery manufacturing, and specialty chemicals. The company operates in various segments, including oil exploration and production, petrochemicals, and electric vehicle (EV) batteries. It develops and supplies lithium-ion batteries for automotive and energy storage applications while also focusing on sustainable and eco-friendly energy solutions. The company is headquartered in Seoul, South Korea, and its shares are listed on the KRX.

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