Lotte Energy Materials posted mixed second-quarter results as revenue rebounded but its operating loss widened. Lotte Energy Materials said on Wednesday that on a preliminary consolidated basis it posted 194.2 billion won in revenue and an operating loss of 16.9 billion won in the second quarter of 2026.

Revenue rose 21.5 percent from the previous quarter, but the operating loss widened to 16.9 billion won from 5.0 billion won. Net profit, which posted a 3.9 billion won profit in the previous quarter, also swung to a 18.8 billion won loss. Profit from continuing operations before income tax also turned to a loss of 21.4 billion won from a 10.9 billion won profit in the previous quarter.

The direct driver of the revenue increase was higher demand for high-output small batteries. Sales of small batteries jumped for battery backup units for AI data centers and for power tools. Higher sales of energy storage systems in North America and steady demand for circuit boards also contributed. But revenue growth was not enough to reverse the loss structure.

Compared with a year earlier, losses narrowed. Revenue fell 5.2 percent to 194.2 billion won from 204.9 billion won, but the operating loss narrowed 45.7 percent to 16.9 billion won from 31.1 billion won. Operating margin was minus 8.7 percent, narrowing from minus 15.2 percent a year earlier.

For the first half, the company posted revenue of 354.0 billion won and an operating loss of 21.9 billion won. That was a 71.6 percent reduction from an operating loss of 77.1 billion won a year earlier. The first-half cumulative net loss attributable to owners of the parent also fell 80.1 percent to 18.9 billion won from 95.0 billion won. Losses are improving in the direction of shrinking rapidly, but the company has not yet returned to profit.