Solus Advanced Materials posted first-quarter 2026 consolidated revenue of 192.6 billion won and an operating loss of 22.0 billion won. Revenue rose 13.6 percent from the previous quarter, but the operating loss widened 43.8 percent from a year earlier.

The company faced overlapping burdens from fixed costs and power prices while battery foil output had not fully recovered. Revenue increased, but profitability did not return.

By business segment, the battery foil unit recorded the largest growth. First-quarter battery foil revenue rose to 61.0 billion won from 41.5 billion won in the previous quarter, up 47 percent. The company attributed the gain to normalized supply to major global OEMs and battery customers as electric vehicle demand recovered.

Revenue from copper foil rose 9.7 percent from the previous quarter to 104.5 billion won. The company said supply of HVLP copper foil increased steadily as demand expanded for high value-added products such as AI accelerators.

The OLED materials unit posted 27.1 billion won in revenue, down 17.1 percent from the previous quarter. The company cited delays in panel approvals by overseas customers and a cost-cutting trend among panel makers.

From the second quarter, the company expects expansion in battery foil volumes to gather pace. Supplies to 3 of 4 new customers secured last year will start from the second quarter, and battery foil for EV and ESS applications will be supplied to a total of 7 customers. Battery foil supply volume in the second quarter is expected to expand to about double the first-quarter level.

As the rise in supply leads to higher utilization rates and directly eases fixed-cost burdens, the company expects a gradual improvement in profitability toward the second half as it also increases the share of high value-added products. It plans to expand the number of customers to as many as 12 this year.

The OLED division completed an integrated production base for emissive and non-emissive materials in Hamyeol, North Jeolla Province, in February. Using a site with production scale doubled from before, it plans full-scale supply of products with IP from the second quarter and initial revenue from Green Host products.

Over the mid to long term, the company also expects benefits from the EU Industrial Acceleration Act, or IAA. It expects its battery foil plant in Hungary to receive direct benefits as in-bloc production becomes more entrenched.

CEO Geun-man Kwak (곽근만) of Solus Advanced Materials said demand for battery foil was rising rapidly due to a recovery in the global electric vehicle market and growth in ESS, and that portfolio competitiveness based on multiple global customers was directly linked to expanding supply. He said the company would focus on restoring profitability through higher utilization and improved product mix as battery foil volumes for EV and ESS applications were expected to increase sharply from the second quarter.