Solus Advanced Materials announced on July 24 that it recorded a consolidated operating loss of 21.3 billion won and sales of 101.9 billion won for the second quarter of 2026.
Sales increased by about 31% compared to 77.8 billion won in the same period last year and rose approximately 16% from 88.1 billion won in the previous quarter. The operating loss slightly increased from 20.8 billion won year-on-year but decreased by 35.8% from 32.4 billion won in the previous quarter.
While profitability is improving due to expanded sales and increased operating rates, ongoing losses are attributed to rising raw material prices caused by the war and the impact of the new OLED factory expansion.
The battery foil segment recorded sales of 75 billion won, a 63% increase from the same period last year, driven by increased orders from existing major customers and new client acquisitions. The demand for energy storage system (ESS) products has also surged due to the expansion of AI data centers. In Europe, the recovery in demand for electric vehicles (EVs) has led to increased supply of products for EVs and ESS, contributing to overall growth.
The company expects profitability to improve gradually starting in the third quarter as the effects of a product mix shift toward high-value products are reflected. It anticipates that increased supply to major North American customers and expanded production by European clients, including CATL, will drive performance.
In the OLED division, sales reached 26.9 billion won, a 15% decrease compared to the previous year. This decline is attributed to seasonal off-peak effects in the first half, which led to reduced sales volumes from major customers and delays in OEM approval schedules from clients in China.
The copper foil (circuit foil) segment, which has completed its sale process, is not included in this quarter's results.
Gwak Geun-man, CEO of Solus Advanced Materials, stated, "The demand for battery foil from North American and European customers continues to expand. We expect that improvements in product mix and the effects of new project production will lead to increased average operating rates and a foundation for profitability in the second half of the year."
Meanwhile, Solus Advanced Materials has secured the only production base in Europe through its battery foil plant in Hungary. To respond to increasing customer demand, the company decided to invest 40 billion won in its Hungarian subsidiary last month.
* This article has been translated by AI.
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