1. What Happened?: ALUCO’s Q2 2025 Earnings Breakdown

ALUCO reported mixed results for Q2 2025. Revenue declined 5.4% year-over-year to ₩165.3 billion, while operating profit increased 7.5% to ₩11.5 billion. However, net income swung to a loss of ₩1.8 billion, primarily due to increased financial expenses and foreign exchange losses.

2. Why These Results?: Drivers of Performance

  • Positive Factors: Growth in the EV and industrial materials markets contributed to improved performance in the aluminum extrusion segment. Supply contracts with major battery manufacturers like LG Energy Solution and SK On are positive indicators for future growth.
  • Negative Factors: Low factory utilization rates and volatility in raw material prices and exchange rates are impacting profitability. The low utilization rate at the Daejeon plant is a significant contributor to fixed cost burdens.

3. What’s Next?: Outlook and Investment Strategy

ALUCO is well-positioned to benefit from the expanding EV market. However, managing risks related to low factory utilization and external market factors is crucial. Investors should consider the following:

  • Continued EV Market Growth: Sustained growth in the EV market will be a key driver for ALUCO’s future performance.
  • Cost Efficiency and Productivity Improvements: Addressing the low factory utilization rate and implementing cost-cutting measures are essential for improving profitability.
  • Macroeconomic Factors: Monitoring changes in raw material prices, exchange rates, and the potential for a global economic slowdown is critical.

4. What Should Investors Do?: Action Plan

Investors considering ALUCO should carefully evaluate the company’s growth potential in the EV market alongside its ability to manage risks. Focus on the long-term growth prospects rather than short-term price fluctuations, and carefully consider the timing of investment through continuous monitoring.