Ecopro Co (086520) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue rebounded to KRW 931.7 billion, with operating profit improving from a KRW 50 billion loss last year to a profit of over KRW 10 billion, driven by cathode materials, lithium, and Indonesia investment.

• Profitability was supported by structural improvements, internal cost innovations, new order acquisitions, and investment gains, with continued positive earnings expected in the second half of 2025.

• The first phase of smelting investment in Indonesia was completed, with four projects expected to yield an average annual profit of KRW 180 billion and secure stable raw material sourcing.

• Operates as a holding company with two main business pillars: battery materials (cathode, precursor, lithium, recycling) and environmental solutions (air pollution, water treatment).

• Group structure includes 22 consolidated subsidiaries, with recent expansion in Hungary and Indonesia.

Financial highlights

• Q2 2025 consolidated revenue: KRW 931.7 billion, up 15% QoQ; operating profit: KRW 16.2 billion, expanding profit margin.

• EcoPro HN revenue grew 13% QoQ to KRW 39 billion; operating profit KRW 3.7 billion, with improved profit margin.

• EcoPro Materials revenue fell 43% QoQ to KRW 78.1 billion, with an operating loss of KRW 28.8 billion due to lower ASP and shipment volume.

• Indonesia investment contributed Q2 revenue of KRW 84.2 billion and operating profit of KRW 44.6 billion.

• 2025 H1 consolidated revenue: KRW 1.74 trillion, down from KRW 3.13 trillion in 2024 H1; operating loss: KRW 17.6 billion in 2025 H1.

Outlook and guidance

• Positive earnings trajectory expected to continue through H2 2025, with strong European EV demand and ESS sales growth.

• Indonesia project full consolidation anticipated to further improve profitability.

• EcoPro Materials expects non-captive sales share to exceed 50% in H2 2025 and reach 60-70% in 2026.

• New product launches and customer diversification targeted, including high-voltage mid-nickel and LFP lines.

• Environmental business expects gradual top and bottom line growth, supported by government incentives and stricter regulations.