PI Advanced Materials (178920) Q2 2026 earnings summary

Executive summary

• Achieved strong sales growth and improved profitability both year-over-year and quarter-over-quarter in 2Q26, driven by demand for high-value ultra-thin films and new product launches.

• Specializes in polyimide (PI) films, varnish, powder, and molded products, with 99.9% of sales from these items as of mid-2026.

• PI films are essential for FPCB, thermal management, industrial, and EV battery insulation, serving global IT and industrial clients.

• Holds global PI film market share leadership since 2014, with a diversified product portfolio and robust R&D pipeline.

• Advanced Industrials segment saw robust demand, especially in industrial and semiconductor applications, with a diversified customer base.

Financial highlights

• 2Q26 sales reached KRW 77.5bn, up 6.9% YoY and 21.0% QoQ; EBITDA was KRW 31.0bn, up 34.3% YoY and 36.4% QoQ.

• H1 2026 revenue: KRW 141.6B, down from KRW 263.4B in FY2025 and KRW 251.3B in FY2024.

• H1 2026 operating income: KRW 37.0B; net income: KRW 28.0B; EPS: KRW 954.

• Cash and cash equivalents at H1 2026: KRW 64.6B, up from KRW 50.7B at FY2025 end.

• Gross profit margin for 1H26 was 37.1%, up from 29.1% in 1H25.

Outlook and guidance

• 3Q26 expected to see continued YoY sales growth, supported by improved ASP and new product launches.

• Ongoing capacity expansion for EV-dedicated PI varnish line, with completion extended to Dec 2028 to meet growing EV market demand.

• Strategic collaboration with Arkema (new majority shareholder) to drive new applications and global market expansion.

• Persistent market demand uncertainty due to memory price volatility and geopolitical tensions; stable profitability targeted through product mix and disciplined procurement.

• Strategic inventory management and additional debt repayment under review for Q3.