South Korea’s Eco&Dream (101360), a battery precursor maker, delivered a mixed report card in the third quarter: revenue recovered while its operating loss widened. Precursor shipments hit a quarterly record high, lifting sales, but weak demand and fixed-cost burdens dragged down profitability.
Eco&Dream said in a regulatory filing on Nov. 13 that it posted 25.7 billion won (approximately $19.2 million) in consolidated revenue and an operating loss of 11.9 billion won (approximately $8.9 million) for the third quarter of this year. Revenue fell 26.4% from 35 billion won (approximately $26.2 million) a year earlier, and the company swung to an operating loss. Compared with the previous quarter, revenue rose about 27%, but the operating loss widened by roughly 120%.
The precursor business was the bright spot. Third-quarter precursor sales came to 17.8 billion won (approximately $13.3 million), exceeding the 17.3 billion won (approximately $12.9 million) recorded in the entire first half in just one quarter. The gain was driven by the phased ramp-up of its Saemangeum campus starting in July and increased orders from customers as North American EV demand recovered. Helped by this, quarterly revenue grew for three straight quarters: 16.2 billion won (approximately $12.1 million) in the first quarter, 20.2 billion won (approximately $15.1 million) in the second and 25.7 billion won in the third.
Still, the year-on-year decline has not been resolved. Revenue remains below the 35 billion won posted in the third quarter of last year, held back by weakness in businesses outside precursors and deteriorating profitability.
| Category | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|
| Revenue | 16.2 billion won | 20.2 billion won | 25.7 billion won |
| Precursor sales | – | – | 17.8 billion won |
| Operating profit/loss | – | – | -11.9 billion won |
Note: Consolidated basis; precursor sales totaled 17.3 billion won in the first half.
The outlook for the fourth quarter is positive. The high-nickel NCM precursor single-sale supply contracts the company recently disclosed total 38.7 billion won (approximately $28.9 million), meaning contracts signed in just two months already cover more volume than the 37.3 billion won (approximately $27.9 million) in consolidated revenue posted in the fourth quarter of last year. With December shipments still to be added, the company expects precursor shipments to drive company-wide revenue growth.
Next year, Eco&Dream plans to respond to rising demand from existing customers centered on the Saemangeum campus and to specify supply schedules and volumes for new projects under negotiation to sustain growth. The company judges that it has entered a stage where investments to expand production capacity are translating into actual supply and sales.
“Precursor shipment growth and the expanded operation of the Saemangeum campus are combining to accelerate our growth,” a company official said. “With existing customers increasing their supply volumes, we expect precursor sales to grow further next year compared with this year.”
Market watchers say the key question is whether the revenue growth can translate into improved profitability. With the operating loss widening even as precursor sales expanded, absorbing fixed costs through higher Saemangeum campus utilization and securing profitability on new contract volumes will be decisive for future results.