Lotte Energy Materials (020150) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue declined quarter-over-quarter due to logistics delays in Europe impacting EV sales, but was partially offset by strong ESS and circuit foil sales.

• Operating profit improved significantly, driven by higher productivity and inventory revaluation gains amid rising copper prices.

• Net income turned positive, reversing losses from previous quarters.

Financial highlights

• Q1 2026 consolidated revenue was KRW 1,598 billion, down 6.5% sequentially but up 1.1% year-over-year.

• Operating loss narrowed to KRW 50 billion (margin -3.1%), a significant improvement from previous quarters.

• EBITDA turned positive at KRW 195 billion (margin 12.2%).

• Net income reached KRW 39 billion (margin 2.4%), turning profitable both sequentially and year-over-year.

Outlook and guidance

• Battery foil shipments expected to grow in Q2 as ESS conversion accelerates and power tools demand rises.

• Circuit foil shipments projected to increase QoQ, supported by full-scale shipments of high-value-added Al-related products.

• Plans to scale up solid electrolyte and nickel-plated copper foil for all-solid-state batteries, targeting commercialization in 2028.