EV Advanced Materials Achieves First-Quarter Profitability... "Breaks Three-Year Deficit Cycle and Rebounds"

EV Advanced Materials, a company specializing in FPCBs, reported a turnaround in its results by posting an operating profit on both a consolidated and separate basis for the first quarter of this year. The company announced plans to make 2026 the inaugural year of full-scale profitability recovery.

According to the first-quarter report disclosed on May 15, EV Advanced Materials recorded separate sales of 11.8 billion won and an operating profit of 420 million won. On a consolidated basis, the company achieved sales of 15.9 billion won and an operating profit of 350 million won, demonstrating an improving profitability trend across the entire organization.

The company has faced difficulties in recent years due to market changes and rising costs. Its separate operating losses were 3.75 billion won in 2023, 760 million won in 2024, and 2.09 billion won in 2025, resulting in three consecutive years of deficits.

However, the company has now managed to swing to an operating profit in the first quarter of this year, breaking free from the prolonged streak of losses.

The core drivers of this performance improvement are the structural overhaul of its high-value-added FPCB business and growth in its new display business. Notably, the display business saw its first-quarter sales grow from 800 million won last year to 1.8 billion won in the first quarter of this year, marking a 125% increase. This figure amounts to approximately 67% of the total annual display business sales of 2.7 billion won recorded last year.

It is also noteworthy that the separate operating profit exceeded the consolidated figure. The company attributed this to cost savings from restructuring its Korean headquarters and the stabilization of orders for high-value-added products.

In fact, EV Advanced Materials posted separate sales of 52 billion won and an operating loss of 2.09 billion won last year, but achieved an operating profit of 420 million won in just the first quarter of this year, signaling the potential for an improved profit structure.

As an affiliate of Loa Holdings Company Group, EV Advanced Materials plans to continue focusing on expanding orders for high-value-added products and improving its cost structure to achieve annual profitability.

A company official stated, "The intensive cost-cutting efforts over the past three years have been reflected in this year's first-quarter results," adding, "This profit is not a one-off event, but is significant as it demonstrates the establishment of a sustainable profit structure."

The official continued, "We will strive to achieve annual operating profit in 2026 through expanding orders and sales of high-value-added products, and do our utmost to reward the trust of shareholders who have waited patiently despite our past underperformance."

This performance is evaluated as evidence that, with cost reductions and business structure improvements being fully realized, EV Advanced Materials is moving away from a prolonged deficit phase and transforming into a profitability-focused company.

This content was produced with the assistance of AI translation services.