1. What Happened? : SGC Energy’s Q2 Earnings Analysis

SGC Energy recorded sales of KRW 618.5 billion, operating profit of KRW 34 billion, and net profit of KRW 0.2 billion in Q2 2025. The near doubling of operating profit compared to the previous quarter is a notable achievement.

2. Why? : Analyzing the Drivers of Earnings Fluctuation

The main driver of the surge in operating profit is the strong performance of the power/energy sector. Rising REC prices and robust steam demand fueled the improvement. The favorable order intake in the construction/real estate sector also contributed positively.
However, high debt-to-equity ratio (269.87%), increased interest expenses, and continued losses in the glass segment suppressed net profit.

3. So What? : Outlook by Business Segment

  • Power/Energy: Continued growth is expected due to the effects of biomass co-firing and CCU facility operation.
  • Glass: High uncertainty remains due to rising raw material prices and intensifying competition.
  • Construction/Real Estate: Despite a healthy order backlog, the construction market slowdown and rising raw material prices are risk factors.

4. Investor Action Plan

If you are considering investing in SGC Energy, you should pay attention to the following:
Positive factors: Growth potential of the power/energy sector
Negative factors: High debt-to-equity ratio, uncertainty in the glass segment
It is advisable to review the detailed performance of each business segment and financial outlook through the business report to be announced in the future and make investment decisions.