Solus Advanced Materials (336370) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales rose 7.7% year-over-year and 0.8% quarter-over-quarter to KRW 145.1 billion, driven by increased supply of copper foil for Al accelerators and OLED materials.

• The company operates in three main segments: Copper Foil/Battery Foil, OLED, and Advanced Materials, with a global footprint and a focus on high-end battery materials and OLED display components.

• For the nine months ended September 2025, consolidated revenue was KRW 446.6 billion, with the Copper Foil/Battery Foil segment contributing 79% of sales.

• EBITDA turned negative, down 253.3% year-over-year, due to higher fixed costs and reduced supply to major battery copper foil customers.

• Operating profit and net income remained negative, reflecting ongoing margin pressures and restructuring.

Financial highlights

• Q3 2025 sales: KRW 1,451 billion (+7.7% YoY, +0.8% QoQ).

• EBITDA: -KRW 5.3 billion (turned to deficit QoQ, -253.3% YoY).

• Operating profit: -KRW 21.1 billion (-14.5% margin).

• Net income: -KRW 2.91 billion for Q3 2025.

• Net loss attributable to owners: KRW -66.8 billion for 9M 2025 (9M 2024: KRW 4.6 billion profit).

Outlook and guidance

• Plans to diversify battery copper foil customer base in Europe, expand high-end product volumes, and strengthen strategic marketing.

• OLED business to expand OEM supply and accelerate new material development and mass production.

• Full-scale supply expansion expected from 2026, with volume and profitability stabilization strategies.

• The company is expanding capacity in North America with a new battery foil plant in Quebec, targeting mass production in 2026 to capture growing EV and ESS demand.

• OLED and advanced materials segments are investing in new product lines and expanding production capacity, aiming for growth in IT, automotive, and display markets.