L&F’s Q2 Earnings Shock: What Happened?

L&F reported revenue of KRW 520.1 billion, an operating loss of KRW 121.2 billion, and a net loss of KRW 111.9 billion in Q2 2025. These figures fell far short of market expectations. While losses decreased compared to Q1, the company remains in the red.

Analyzing the Causes: Why the Underperformance?

  • Intensified Competition in the Secondary Battery Market: Intense competition led to pricing pressure, impacting profitability.
  • Rising Raw Material Prices: Increasing prices of raw materials, including crude oil, contributed to higher production costs.
  • Exchange Rate Fluctuations: Fluctuations in the KRW/USD and KRW/EUR exchange rates directly impacted L&F’s profitability as an export-oriented company.
  • Global Economic Slowdown: The overall economic downturn could lead to decreased demand for secondary batteries.

L&F’s Rebound Potential: What’s Next?

L&F’s large order backlog and ongoing efforts to improve its financial structure are positive signs. However, given the uncertainties surrounding the details of these orders and the overall market situation, a short-term recovery is uncertain. Long-term prospects will depend on continued R&D investment and effective management strategies.

Action Plan for Investors: What Should You Do?

Investors should make informed decisions based on further information gathering and market analysis. Carefully consider the details of the order backlog, the company’s financial restructuring plan, and its risk management strategies related to raw material price and exchange rate fluctuations.