PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Backed by expanding semiconductor fab investment, EcoPro HN's chemical filter and environmental equipment businesses have shown a clear recovery since bottoming in the third quarter of 2025, while new ventures in battery auxiliary materials, electronic materials, and carbon credits are emerging as the next growth axis.
Operating profit reached about KRW 5.0 billion and KRW 5.8 billion in Q1 and Q2 2026, respectively, clearly above the roughly KRW 2.3 billion levels of Q3-Q4 2025, showing a quarterly improvement trend.
Full-year 2025 revenue of KRW 141.1 billion fell sharply from KRW 234.5 billion in 2024, but revenue has been rising again in 2026 on the back of semiconductor customer demand and expanded environmental equipment orders.
Beyond its four core environmental solutions—cleanroom chemical filters, particulate matter reduction, greenhouse gas reduction, and water treatment—the company is expanding into battery auxiliary materials such as cathode dopants, crucibles, and electrolyte additives, as well as a carbon credit (SDM) business.
The company's high reliance on affiliates within the EcoPro group means its results are sensitive to the pace of group battery value-chain investment and to cyclical conditions in downstream industries such as semiconductors, petrochemicals, and steel.
The debt ratio eased from 112.8% in 2022 to 50.6% in 2025, but operating cash flow turned negative at about KRW -4.9 billion in 2025.
EcoPro HN was established in 2021 through a spin-off of EcoPro's environmental business division and provides total environmental solutions in Korea spanning diagnostics, materials, equipment, and maintenance.
Based on 2025 figures, revenue by segment consisted of KRW 54.8 billion from cleanroom chemical filters, KRW 36.8 billion from greenhouse gas (GHG) reduction solutions, KRW 21.2 billion from particulate matter (PM) reduction solutions, and KRW 24.6 billion from water treatment solutions, with chemical filters and GHG reduction forming the largest pillars.
Chemical filters are consumable products that remove hazardous gases from semiconductor and display processes, with demand tied to customers' fab utilization rates, while the GHG reduction business processes perfluorinated compounds (PFCs) from semiconductor processes using a commercialization technology the company claims was a world first.
PM reduction and water treatment are order-based equipment businesses serving power generation, petrochemical, and steel customers, and tend to see revenue recognition concentrated in specific quarters.
More recently, the company has upgraded its water treatment solution (EWT), which purifies high-concentration saline wastewater from cathode and precursor production lines for reuse as industrial water while recovering valuable metals, deepening its linkage to the battery value chain.
In new businesses, the company is developing battery auxiliary materials—cathode dopants that enhance energy density and stability, long-life crucibles with increased reuse cycles, and electrolyte additives—currently going through customer approval processes, and is also expanding into electronic materials such as next-generation memory packaging materials.
It is also developing an SDM (Sustainable Development Mechanism) carbon credit business model, supplying nitrous oxide (N2O) reduction equipment to nitric acid manufacturers in China and selling the certified reduction credits in Korea's domestic carbon market.
Key customers include affiliated cathode and precursor makers such as EcoPro BM and domestic semiconductor, power generation, and petrochemical companies, giving the company a relatively high dependence on captive volume from group affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩39B | ₩3.7B | 9.4% |
| 2025Q3 | ₩28.4B | ₩2.3B | 8.2% |
| 2025Q4 | ₩39.2B | ₩2.3B | 5.9% |
| 2026Q1 | ₩34.7B | ₩5B | 14.5% |
| 2026Q2 | ₩51.5B | ₩5.8B | 11.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩218.2B | ₩41.4B | ₩32.4B | 19.0% | 37.4% | 112.8% |
| 2023 | ₩228.9B | ₩41.8B | ₩33.5B | 18.2% | 30.3% | 104.2% |
| 2024 | ₩234.5B | ₩24.2B | ₩21.5B | 10.3% | 7.3% | 57.5% |
| 2025 | ₩141.1B | ₩11.7B | ₩13.2B | 8.3% | 4.3% | 50.6% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Looking at annual results, revenue rose modestly from KRW 218.2 billion in 2022 to KRW 228.9 billion in 2023 and KRW 234.5 billion in 2024, before falling sharply to KRW 141.1 billion in 2025, while operating profit declined markedly from KRW 41.4 billion in 2022 and KRW 41.8 billion in 2023 to KRW 24.2 billion in 2024 and KRW 11.7 billion in 2025.
Net income attributable to owners also fell from KRW 32.4 billion (2022) and KRW 33.5 billion (2023) to KRW 21.5 billion (2024) and KRW 13.2 billion (2025), with revenue and profit contracting together.
The operating margin narrowed from a high of 19.0% in 2022 and 18.2% in 2023 to 10.3% in 2024 and 8.3% in 2025, indicating that the profitability decline outpaced the revenue decline.
On a quarterly basis, Q3 2025 revenue fell to KRW 28.4 billion and operating profit to KRW 2.3 billion, sharply down from KRW 39.0 billion and KRW 3.7 billion in the prior quarter, with weak petrochemical and steel industry conditions and delayed capex from water-treatment and semiconductor customers cited as the main causes.
Revenue recovered to KRW 39.2 billion in Q4 2025, though operating profit stayed near the Q3 level at KRW 2.3 billion, while net income rose to KRW 3.6 billion, notably above operating profit, suggesting a one-off non-operating contribution.
In Q1 2026, revenue reached KRW 34.7 billion with operating profit of KRW 5.0 billion, a sharp increase from KRW 3.4 billion a year earlier, and Q2 2026 revenue climbed to KRW 51.5 billion with operating profit of KRW 5.8 billion, the highest levels of both metrics in the past five quarters.
This trend is attributed to steady chemical filter demand as semiconductor customers ramp up fab expansions, together with expanded orders for environmental equipment including particulate matter reduction systems for overseas power plants.
Combined net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) totaled about KRW 15.7 billion, reflecting a clear quarter-on-quarter improvement since the Q3 2025 trough.
The environmental equipment industry is a classic policy- and downstream-cycle-sensitive market, with demand driven by cleanroom utilization at semiconductor and display fabs, the capex cycle of power generation, petrochemical, and steel industries responding to emissions regulations, and the intensity of domestic and global carbon-neutrality policy.
In 2025, weak petrochemical and steel industry conditions and slower capex from semiconductor and water-treatment customers weighed on order-based segment revenue, but in 2026 solid memory semiconductor conditions have kept fab utilization high, supporting stable chemical filter demand.
There are also indications that environmental equipment investment long postponed by the cement industry may pick up as grace periods for emissions regulation come to an end.
In the power sector, individual orders have been confirmed, including direct-injection technology sales to domestic power plants such as Tongyeong and Gwangyang and a selective catalytic reduction (SCR) equipment supply contract for a heat-recovery boiler.
In terms of competitive positioning, EcoPro HN is regarded as holding a leading domestic position in chemical filters and particulate matter/GHG reduction, differentiating itself by holding both materials and equipment technology simultaneously.
However, because the environmental equipment market serving the semiconductor and battery value chains is closely tied to customers' capital spending plans, the structural tendency toward large quarter-to-quarter revenue swings is likely to persist.
In its Q1 2026 conference call, the company said it expects the earnings improvement trend to continue as semiconductor customers' capacity expansions gain momentum and order backlogs keep growing, and it projected clear year-on-year revenue growth centered on the environmental plant segment.
The particulate matter reduction business is reportedly diversifying its customer base into power generation and cement sectors and securing new orders from overseas power plants.
On the sell side, DS Investment & Securities was reported in a June 2026 report to have forecast 2026 revenue of KRW 191.4 billion, up 35.7% year-on-year, and operating profit of KRW 32.3 billion, up 175.3%, citing an expanding new-fab investment cycle in the semiconductor downstream industry.
On the new-business front, battery-related dopants, crucibles, and electrolyte additives are going through customer approval processes, and a domestic research firm stated in a December 2025 report that it expects 2026-2027 to be a growth phase in which materials-business revenue is substantially reflected.
The carbon credit (SDM) business is being developed in cooperation with Chinese nitric acid manufacturers, but its revenue scale and timing may remain fluid depending on carbon credit market prices.
The company previously presented a 2027 revenue target of KRW 950 billion at a group investor day, which, if both the recovery of the core environmental business and expansion of new businesses proceed together, could serve as a reference point for gauging the direction of medium- to long-term top-line growth.
With the most recent four quarters showing a gradual recovery since bottoming in Q3 2025, the market appears to be pricing the stock on a multiple that reflects a smaller current profit base rather than the higher operating margins the company posted back in 2022-2023.
The shares trade at a certain premium to net asset value, suggesting the market is assigning some value to the prospect of a core-business recovery alongside expansion into new areas such as battery auxiliary materials, electronic materials, and carbon credits.
On the dividend side, the per-share cash dividend is modest, leaving the dividend yield below the industry average, consistent with the company prioritizing capital allocation toward new-business investment.
That said, negative operating cash flow in 2025 indicates that the profit recovery has not yet fully translated into cash generation, making it worth watching whether future quarters show cash flow improving in tandem with earnings.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Solid memory semiconductor conditions have kept customer fab utilization high, providing stable support for chemical filter demand. This is supported by operating profit of KRW 5.0 billion and KRW 5.8 billion in Q1 and Q2 2026, respectively, more than double the levels seen in Q3-Q4 2025.
Company commentary that customer capacity expansions are accelerating and order backlogs are growing can also be read as a favorable signal.
The company is expanding into battery auxiliary materials such as cathode dopants, crucibles, and electrolyte additives, along with electronic materials and a carbon credit (SDM) business, diversifying revenue sources beyond a single environmental equipment business.
A domestic research firm has projected that 2026-2027 will be a phase in which materials-business revenue is substantially reflected. The captive relationship with affiliated battery materials makers could provide a favorable initial sales channel for these new businesses.
The debt ratio fell from 112.8% in 2022 to 50.6% in 2025, improving financial stability. This supports the financial flexibility needed to respond to future new-business investment or market volatility. Total equity also grew from KRW 110.6 billion in 2023 to KRW 304.7 billion in 2025, expanding the capital base.
Operating profit fell for three consecutive years, from KRW 41.8 billion in 2023 to KRW 24.2 billion in 2024 and KRW 11.7 billion in 2025, with the operating margin narrowing from 18.2% to 8.3%.
Revenue also dropped sharply from KRW 234.5 billion in 2024 to KRW 141.1 billion in 2025, reflecting a clear stall in the base business. While a recovery has emerged in 2026, whether it fully returns to the earlier high-growth level requires confirmation over additional quarters.
As seen in Q3 2025, when revenue and operating profit fell 27% and 36% quarter-on-quarter, results can swing significantly with capex adjustments in downstream industries such as petrochemicals and steel.
The high share of order-based business also creates structural volatility, with revenue concentrated in or delayed to specific quarters. Heavy reliance on captive volume from group affiliates also exposes the company to changes in the pace of intra-group investment.
The battery auxiliary materials, electronic materials, and carbon credit businesses remain at an early stage where revenue scale and timing depend on customer approvals or market prices.
The carbon credit business in particular carries a risk the company itself acknowledges: revenue can be swayed by fluctuations in carbon credit market prices. Whether these new businesses can grow fast enough to offset the contraction in the core business's revenue and profit has not yet been confirmed.
A significant portion of revenue comes from captive volume tied to affiliates within the EcoPro group's battery value chain, meaning changes in the pace of group investment or battery industry conditions can directly affect results.
The high share of intra-group transactions suggests a continued need for greater independent customer diversification.
The SDM carbon credit business sells UN-certified emission reduction credits in the domestic market, meaning revenue timing and scale remain fluid depending on carbon credit market prices. If certification or sales procedures are delayed, or if carbon prices decline, the expected revenue contribution could shrink.
Order intake and revenue recognition can vary significantly depending on the capital spending timing of multiple downstream industries, including semiconductor fab investment, power generation and cement industry investment in emissions compliance, and petrochemical/steel industry conditions.
As seen in Q3 2025, if capex delays across multiple downstream industries overlap again, a repeat slowdown cannot be ruled out.
This is the tentative timing for the Q3 2026 earnings disclosure; it will be worth checking whether the revenue and operating profit recovery seen through Q2 continues, and whether chemical filter and environmental equipment orders keep expanding.
It is worth monitoring whether customer approvals expand and mass-production volumes are reflected for the battery-related dopant, crucible, and electrolyte additive businesses. The point at which materials-business revenue actually appears in the financial statements could serve as a gauge of the new-business transition.
It is worth watching whether new environmental equipment orders expand as emissions-regulation grace periods for the cement and power industries end, and whether order wins for particulate-matter reduction equipment at overseas power plants materialize.
Progress on UN certification for N2O reduction equipment supplied to Chinese nitric acid manufacturers, and whether sales into the domestic carbon credit market begin, will be key points to watch for securing a new revenue stream.
EcoPro HN has shown improving revenue and operating profit for two consecutive quarters in early 2026, following a trough in Q3 2025, aided by expanding semiconductor fab investment.
However, having passed through a period of joint revenue and profit contraction in 2024-2025 compared with the higher operating margins of 2022-2023, how far the recovery can extend toward those earlier levels will need to be confirmed through future quarterly results.
Beyond the core chemical filter and environmental equipment business, new ventures in battery auxiliary materials, electronic materials, and carbon credits (SDM) have been presented as the next growth axis, though most remain at an early stage with uncertain timing and scale of revenue contribution.
The balance sheet has improved via a lower debt ratio and expanded equity, but negative operating cash flow in 2025 shows that the profit recovery has not yet fully translated into cash generation.
Continued monitoring is warranted for the company's dependence on captive revenue from group affiliates and for earnings volatility tied to the capex timing of downstream industries such as semiconductors, petrochemicals, steel, and power generation.
Overall, the company appears to be at a transition point where a cyclical recovery in its core environmental business is unfolding alongside new-business diversification, and it would be useful to track upcoming quarterly results and the timing of new-business revenue recognition before forming an investment judgment.
Report written 2026-09-05 · Data as of 2026-09-04
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