1. IS Dongseo Q2 Earnings: What Happened?

IS Dongseo reported consolidated revenue of KRW 634.3 billion (down 58.1% YoY) and operating profit of KRW 86.1 billion (down 49.2% YoY) for Q2 2025. The sluggish performance of the construction segment significantly impacted the overall results.

2. Reasons for the Decline: Why These Results?

  • Construction Market Downturn: The overall construction market slump, rising construction costs, and PF risks directly impacted the construction segment’s performance.
  • Environmental Business Decline: Due to the downturn in related industries, the environmental business also experienced a decrease in revenue and operating profit.
  • Early Stages of Battery Recycling: Market uncertainties and intensifying competition slowed the growth of the battery recycling business.

3. Key Takeaways from the Upcoming IR

  • Construction Segment Turnaround Strategy: Investors will look for concrete strategies and feasibility plans to improve performance in the construction segment.
  • Battery Recycling Growth Roadmap: The company needs to present a clear vision for the future of its battery recycling business, including plans to enhance market competitiveness, technological advancements, and profitability improvements.
  • Financial Health and Risk Management: Debt management, improvement in operating cash flow, and strategies to address risk factors should be addressed.

4. Action Plan for Investors

Despite the short-term downturn, investors should pay close attention to the growth potential of the battery recycling business and the company’s turnaround efforts. Carefully reviewing the information presented in the IR presentation is crucial for making informed investment decisions.