SKC

● Successfully turned EBITDA positive for the first time in 10 quarters, recording KRW 10 billion in Q1

● Continued improvement expected in Q2 with expanded sales of copper foil for ESS… Acceleration of glass substrate certification

● Capital increase proceeding smoothly… Employee stock ownership survey shows 132% oversubscribed demand

SKC (CEO Jong-woo Kim) announced on the 27th that it successfully achieved a positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the first quarter of 2026, driven by performance improvements across all business sectors, including secondary batteries, semiconductors, and chemical materials.

According to its Q1 2026 earnings release, SKC disclosed on the 27th that it recorded consolidated revenue of 496.6 billion won and an operating loss of 28.7 billion won. While still in the red, the operating loss narrowed significantly compared to the previous quarter. Most notably, EBITDA—a key indicator of cash-generating capability—reached 10 billion won, marking the company's first positive quarterly EBITDA since the second quarter of 2023.

Looking at the business sectors, the secondary battery materials business recorded revenue of 156.9 billion won, achieving significant growth in scale compared to both the previous quarter and the same period last year. Notably, copper foil sales in North America increased by 95% compared to the previous quarter, and sales for Energy Storage Systems (ESS) also rose by 132%, leading the performance improvement. Along with this, productivity at the Malaysia plant improved, leading to a positive quarterly EBITDA for the Malaysian entity, signaling a full-scale recovery in profitability.

The semiconductor materials business continued its steady growth, recording revenue of 68.3 billion won and an operating profit of 23.6 billion won. By accelerating its shift toward a profitability-centered business structure, the unit achieved an operating margin of 34.5%, breaking its record for quarterly operating profit. Increased demand for AI data centers and sales of memory products contributed to the results, and the expansion of high-value products led to improved profitability.

The chemical business recorded a "surprise profit" that exceeded market expectations. It recorded revenue of 270.8 billion won and an operating profit of 9.6 billion won, successfully turning a profit compared to the previous quarter. Profitability recovered rapidly due to the reflective benefits of supply instability caused by geopolitical issues in the Middle East, along with expanded sales of high-value PG (Propylene Glycol).

The glass substrate business is picking up speed in preparation for customer reliability evaluations. The company is establishing its production foundation in stages by enhancing product design completeness while upgrading manufacturing data management and operating systems. To strengthen manufacturing reliability, it has also expanded its ecosystem collaborations. In the second quarter, the company plans to produce samples for reliability evaluation and review new projects currently under discussion with multiple clients.

The positive momentum in each business sector is expected to continue in the second quarter. The secondary battery materials business expects continued revenue growth as major customers begin full operation of new lines and ESS sales expand. The Malaysia plant is expected to enter a "full operation" phase, aiming for a production and sales ratio of over 70%. The semiconductor materials business plans to invest in expanding its first plant and constructing a second plant in Vietnam based on its stable growth foundation.

Meanwhile, the capital increase intended to accelerate the glass substrate business and improve the financial structure is proceeding smoothly. A recent demand survey for the employee stock ownership plan showed an oversubscription of 132% relative to the allocated volume, confirming employees' confidence in the company’s future growth potential.

An SKC official stated, “Achieving a positive EBITDA in the first quarter is a meaningful achievement that confirms the recovery of the fundamental competitiveness of our core businesses.” They added, “We anticipate gradual performance improvements under a management policy focused on cash generation and profitability. We plan to successfully finalize the ongoing capital increase to enhance financial stability and accelerate our momentum for securing future growth engines.” [End]