Solus Advanced Materials (336370) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose to KRW 189.9 billion, up 31.0% YoY and 15.7% QoQ, driven by strong battery copper foil sales to Europe and North America.

• Operates in battery foil, OLED, and advanced materials segments, with battery foil accounting for 71.96% of sales, OLED 26.08%, and advanced materials 5.21%.

• Major restructuring included the sale of Circuit Foil Luxembourg and Solus BioTech, and a significant capital increase via bonus issue in January 2024.

• EBITDA loss narrowed to KRW 4.6 billion, improving 36.1% YoY and 73.6% QoQ due to higher sales and better capacity utilization.

• The company is expanding production capacity in Hungary and Canada to meet growing EV and ESS demand.

Financial highlights

• Q2 2026 sales: KRW 1,019 billion, up 15.7% QoQ and 31.0% YoY.

• 2026 H1 consolidated revenue: KRW 189,933 million, down from KRW 309,984 million in 2025 H1.

• Operating loss: KRW 53,678 million (2025 H1: KRW 81,180 million loss).

• Net income from continuing operations: KRW 56,374 million (2025 H1: KRW -138,394 million).

• Cash and equivalents at period end: KRW 70,289 million.

Outlook and guidance

• Plans to expand North American shipments via long-term contracts and ESS projects, and increase European sales and profitability through portfolio optimization.

• Battery foil capacity to expand to 100,000 tons, with a new Canadian plant targeting 2027 mass production.

• OLED business to focus on mass production of new products and expanding applications, targeting new customer wins and model expansion.

• European EV market expected to grow 36% YoY in H2 2026, with battery deployment projected at 160 GWh.

• North American EV sales projected to rise 5% YoY in H2 2026, with ESS installations up 24% YoY.