Lotte Energy Materials Co., Ltd. (KRX: 020150), South Korea's leading producer of electrodeposited copper foil (Elecfoil) for lithium-ion batteries and AI accelerator substrates, posted its first consolidated net profit following the global EV battery demand downturn in the first quarter of 2026. Improving utilization rates and recovering product costs helped narrow its operating loss to near breakeven.
The company reported a consolidated net income of KRW 3.9 billion (approximately USD 2.8 million) for the three months ended March 31, 2026, swinging from a net loss of KRW 54.8 billion (approximately USD 39.7 million) in Q1 2025, according to its quarterly report filed with Korea's Financial Supervisory Service on May 15, 2026.
Profitability Recovery Underway
Revenue for Q1 2026 edged up 1.2% year-on-year to KRW 159.8 billion (approximately USD 115.8 million), a modest top-line improvement that masked a more significant transformation in cost structure. Gross margin improved dramatically to positive 8.9%, compared to a negative 14.9% in Q1 2025, as raw copper input costs moderated and factory throughput recovered.
