SK Innovation Returns to Profit with KRW 2.16T Q1 Operating Income — Energy Rebound

SK Innovation reported Q1 2026 consolidated operating profit of KRW 2.162 trillion — a return to profitability (heukja-jeonhwan) from losses in the comparable period. The result reflects broad-based recovery across SK On (EV batteries), SK Enmove (lubricants), and SK Geo Centric (chemicals), supported by elevated energy prices and easing battery headwinds.

SK On, the EV battery unit that had weighed on consolidated results through 2024 and into 2025 with operating losses amid EV demand softness and pricing pressure, appears to have turned the corner. The scale of the consolidated swing — returning to KRW 2.16 trillion in operating income — implies meaningful improvement at the battery business, combined with strong performance in energy and chemical segments benefiting from the Iran-driven energy price cycle. Segment-level breakdowns were not available at publication time.

SK Innovation's turnaround is part of a broader Q1 2026 earnings recovery for Korean conglomerates. HD Hyundai (267250.KS) reported the same day that its operating profit doubled (+120.4% YoY) to KRW 2.835 trillion, driven by shipbuilding and energy refining. The common factor is elevated energy prices that have expanded refining margins and downstream chemical spreads since the Iran conflict escalated in late 2025.

KOSPI closed at a record 7,844.01 on May 13 (+2.63%), with broad participation from energy, industrials, and technology stocks — consistent with the Q1 2026 earnings picture now emerging from Korea's major conglomerates.

Key items to watch: SK On's standalone operating margin recovery trajectory, order pipeline for next-generation solid-state batteries, and whether the energy segment's margin advantage persists as geopolitical pressures ease.

Not investment advice. Verify all figures with primary sources before acting.