EcoPro BM (247540) Q2 2026 earnings summary

Executive summary

• Sales and profits declined sharply in 2Q26/H1 2026, mainly due to weak EV demand in North America and Europe, and stagnant OEM model changes.

• Manufactures high-nickel cathode materials for lithium-ion batteries, maintaining global market leadership for two consecutive years (2022–2023).

• Main customers are battery cell manufacturers, notably Samsung SDI and SK On, with 94.7% of sales to these clients.

• Expanded product portfolio to include mid-nickel, LMR, LFP, and sodium-ion cathode materials.

• EBITDA margin improved slightly to 7.1% in 2Q26 from 6.4% in 1Q26, but down from 9.9% YoY.

Financial highlights

• 2Q26 revenue was KRW 5,767 bn, down 5% QoQ and 26% YoY; H1 2026 consolidated revenue was KRW 1,182.1 billion.

• Operating profit dropped 14% QoQ and 63% YoY to KRW 18.0 bn in 2Q26; H1 2026 operating income was KRW 39.0 billion.

• Net income for 2Q26 was -KRW 5 bn, a significant decline from KRW 122 bn in 1Q26; H1 2026 net income was KRW 11.7 billion.

• Cash and equivalents increased 37% QoQ to KRW 4,671 bn in 2Q26; at June 2026, cash and cash equivalents were KRW 467.1 billion.

• Basic EPS for H1 2026: -91 KRW, compared to 403 KRW in FY2025.

Outlook and guidance

• North American market expected to remain slow due to the end of consumer subsidies.

• Plans to expand production capacity in Europe (Hungary) and invest in next-generation battery materials, including sodium-ion and solid-state batteries.

• Strategic focus on securing raw material supply and cost competitiveness.

• Non-EV sectors, especially Power Applications, are expected to grow, driven by data center expansion and E-bike demand in Southeast Asia.

• European OEM model changes to negatively impact sales, but new vehicle launches may offset this.