1. TSI Q2 2025 Performance: What Happened?
TSI reported KRW 55.7 billion in revenue, KRW 2.2 billion in operating profit, and a net loss of KRW 1.5 billion for Q2 2025. Although revenue and operating profit surpassed expectations, they declined by 27.5% and 68%, respectively, compared to the same period last year. The net loss, a significant shift from a KRW 10 billion profit in Q2 2024, raises substantial concerns.
2. Why the Underperformance?
The disappointing results stem from project delays and cancellations previously highlighted in TSI’s business reports. These issues, coupled with increased fixed costs and struggles with cost management, have significantly impacted profitability.
- Project Delays and Cancellations
- Cost Management Issues and Increased Fixed Costs
3. Navigating the Future: Can TSI Recover?
Despite the booming secondary battery market, TSI’s struggles with project acquisition and execution are hindering its ability to capitalize on this growth. High interest rates and volatile raw material prices add further pressure. Moving forward, TSI must prioritize project normalization, secure new orders, improve profitability, and strengthen its financial health.
4. Investor Action Plan: What Should You Do?
The current investment recommendation for TSI is a “Sell” or “Underweight.” Short-term downward pressure on the stock price is anticipated, making it crucial for investors to re-evaluate their strategies. Closely monitor project progress, profitability improvement efforts, financial health indicators, and the competitive landscape within the secondary battery market.
Frequently Asked Questions
Why were TSI’s Q2 2025 earnings so disappointing?
A combination of project delays and cancellations, poor cost management, and increased fixed costs contributed to the weak performance.
Should I sell my TSI stock now?
Analysts recommend a “Sell” or “Underweight” rating, suggesting investors should reconsider their current holdings.
Does TSI have any chance of recovery?
A turnaround is possible if TSI can normalize its projects, secure new orders, improve profitability, and strengthen its financial position. Continuous monitoring is crucial.