WCP Widens Q3 Losses... "ESS Impact Expected From Q1 Next Year"

by Kang Heejong

Published 10 Nov.2025 09:48(KST)

WCP Chungju Headquarters Exterior. WCP

WCP, a company specializing in secondary battery separators, announced on November 10 that it recorded sales of 29.1 billion won and an operating loss of 31 billion won in the third quarter of 2025. Sales decreased by 55.6% compared to the same period last year (65.5 billion won) and by 23.8% compared to the previous quarter. The operating loss widened compared to the same period last year (14.7 billion won) and the previous quarter (23 billion won).

WCP stated, "Third-quarter sales were supported by stable supply to the power tool market, which focuses on small batteries, while discussions on customized specifications with domestic energy storage system (ESS) clients continued." The company added, "However, sales of separators for electric vehicles were somewhat limited due to adjustments in electric vehicle sales strategies by certain automakers."

The company explained, "Operating loss increased quarter-on-quarter due to a temporary burden of fixed costs and higher response costs following price cuts by competitors. However, we are preparing to restore profitability through cost improvements and efficiency initiatives."

WCP forecasted, "With some ESS products from major clients receiving early approval in the fourth quarter, sales are expected to increase starting in the first quarter of 2026." The company also anticipated that supply in the small battery segment, especially for power tools and mobility, would continue. For the electric vehicle segment, WCP stated that it would continue preparing for growth after 2027 by verifying technologies and expanding its client base.

The company further commented, "Although operating profit will be partially affected by the off-season, profitability is expected to gradually improve thanks to cost reductions and fixed cost savings." In particular, WCP projected that as the ESS market enters a full-fledged growth phase centered in North America and battery demand expands, diversification of separator demand will accelerate.

A company representative said, "Despite short-term performance fluctuations, we are strengthening our foundation for mid- to long-term growth based on technological competitiveness and client diversification," adding, "Starting in 2026, we expect to reach a turning point with improvements in both sales and profitability."