W-SCOPE Corporation (6619): FY2025 Results Summary — Losses Widen on Weak EV Demand; ESS Ramp-Up Guides Recovery

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W-SCOPE Corporation (6619), a membrane film specialist that develops, manufactures and sells separators, a core material in Li-ion batteries, announced its full-year results for the fiscal year ending January 2026 (February 2025 – January 2026) on 19 March 2026. Note: W-SCOPE’s fiscal year ends in January; this site classifies the completed fiscal year as FY2025, while the tables below keep the presentation’s own labels (“FY Jan. 26” for the completed year and “FY 2026 (ending Jan. 27)” for guidance). Sales came to 3,630 million yen, with an operating loss of 4,919 million yen, a recurring loss of 11,412 million yen and a net loss of 12,465 million yen. In the presentation, the company is abbreviated as WS, consolidated subsidiary W-SCOPE KOREA CO., LTD. as WSK, and equity-method affiliate W-SCOPE CHUNGJU PLANT CO., LTD. as WCP.

Consolidated Results (FY Jan. 26 Full Year)

Sales were 3,630 million yen, a change of -27,416 million yen versus FY Jan. 25 (YoY 11.7%; the presentation defines YoY(%) as FY Jan. 26 actual divided by FY Jan. 25 actual). The company notes that consolidated financial statements include WSK, and that operating results of WCP are recorded as equity-method investment loss/income in non-operating loss/income after Q3 of FY Jan. 25. EV demand in Europe continues to be weak, with no clear timeline for recovery. Sales for the separator business totaled 2,210 million yen (7.4% YoY), and sales for the IEM business totaled 1,419 million yen (up 6.3% YoY), driven by new orders. The operating loss was 4,919 million yen (a change of -3,911 million yen YoY): COGS and SG&A decreased by 23,504 million yen reflecting weak volumes, while the drop in sales volume continued to impact the separator business, with marginal profit remaining below fixed costs. The recurring loss of 11,412 million yen reflects a loss on equity-method investment of 6,331 million yen due to the poor business performance of WCP. The net loss of 12,465 million yen includes an impairment loss of 579 million yen for WSK and a loss on sale of shares of subsidiaries and associates of 468 million yen.

Item (Mil. JPY)	FY Jan. 26 (Full Year)	FY Jan. 25 (Full Year)	YoY*
Sales	3,630	31,047	11.7%
Operating profit (OP)	-4,919	-1,008	―
EBITDA	-3,386	4,110	―
Recurring profit (RP)	-11,412	-3,239	―
Net profit (NP)	-12,465	-3,265	―
NP attributed to the parent’s shareholders	-12,465	-3,713	―
Depreciation	1,533	5,118	30.0%
R&D	669	1,019	65.7%
CAPEX	1,135	28,157	4.0%

*YoY(%) = FY Jan. 26 actual / FY Jan. 25 actual, rounded to the first decimal place, as defined in the presentation. The FY Jan. 25 operating figure is shown as -1,008 million yen per the presentation’s OP waterfall chart (P.7), which is consistent with the stated YoY change of -3,911 million yen.

Sales by Application

For WS+WSK (post deconsolidation of WCP), consumer separator sales were 1,470 million yen (40.5% of total), automotive/EV separator sales were 740 million yen (20.4%), and IEM sales were 1,419 million yen (39.1%), for a total of 3,630 million yen. WCP, which is no longer consolidated, recorded consumer separator sales of 2,398 million yen (20.6%) and automotive/EV separator sales of 9,258 million yen (79.4%), for a total of 11,657 million yen. Figures of less than one million are rounded down.

Company	Separator: Consumer	Separator: Automotive/EV	IEM	Total
WS+WSK — Amounts (Mil. JPY)	1,470	740	1,419	3,630
WS+WSK — % of total	40.5%	20.4%	39.1%	100%
WCP — Amounts (Mil. JPY)	2,398	9,258	―	11,657
WCP — % of total	20.6%	79.4%	―	100%

FY 2026 Guidance (Fiscal Year Ending January 2027)

For FY 2026 (ending Jan. 27), the company guides for sales of 6.0 billion yen (separator 3.7 billion yen, IEM 2.3 billion yen), driven by the launch of ESS separator sales and steady IEM orders (+¥2.3 billion YoY; the accompanying note states sales revenue is expected to increase by 2.37 billion yen year-on-year). Operating profit is guided at -2.4 billion yen, planned to improve by approximately 2.5 billion yen year-on-year due to increased sales revenue and cost reduction effects. Recurring profit is guided at -4.4 billion yen (of which loss on equity-method investment: -1.8 billion yen), with a significant second-half recovery driven by WCP’s ESS sales growth resulting in a full-year improvement of 6.6 billion yen year-on-year. The assumed exchange rate is US$1 = 150 yen = 1,400 KRW. On ESS projects, one project is scheduled to start mass-production supply in 1H, followed by another in 2H, and ESS demand is projected to exceed EV demand in 2H; group separator sales are shown at 13.3 billion yen for 2026 H1 and 23.8 billion yen for 2026 H2 (including WCP). The company also states it is improving both operating and recurring profits, with a target to turn a profit next fiscal year.

(JPY in billions)	H1	H2	Full Year
Sales — Separator	2.0	1.6	3.7
Sales — IEM	0.9	1.3	2.3
Sales — Total	3.0	3.0	6.0
Operating Profit	-1.2	-1.2	-2.4
Recurring Profit	-2.9	-1.5	-4.4
of which: loss on equity-method investment	-1.6	-0.2	-1.8

New Customer Initiatives

The presentation summarizes new customer initiatives. For ESS, Customer A (Asia/USA) has obtained customer approval for the product and manufacturing line, with estimated full-scale supply start in FY27 Jan. Q1, and Customer B (USA) has completed the product SPEC agreement with the customer approval process continuing, with estimated supply start in FY27 Jan. Q3; both are described as high visibility and factored into FY26 forecasts. For EV, Customers C (Asia/USA), D (USA) and E (USA) are in ongoing customer assessment of product samples, with estimated supply starts in FY28 Jan. Q1, FY28 Jan. H1 and FY28 Jan. H2, respectively. For IEM, Customer F (Asia) has a delay in project start caused by client circumstances (timing TBD), and Customer G (Asia) is in ongoing customer assessment of product samples with an estimated start in FY28 Jan.

Shareholder Returns

Dividend and shareholder return information cannot be confirmed from the materials.

WCP (Equity-Method Affiliate) Financial Results

W-SCOPE CHUNGJU PLANT CO., LTD. (WCP), listed on KOSDAQ since September 2022 (393890), is an equity-method affiliate in which W-SCOPE holds 35.51% (including indirect shareholdings). The appendix presents WCP’s consolidated K-IFRS financial statements in millions of KRW: for FY Dec. 2025, sales were 110,812 million KRW, the operating loss was 127,642 million KRW, the net loss was 162,065 million KRW, and EPS was -4,789 KRW. As of the end of Dec. 2025, WCP’s total assets were 1,945,436 million KRW and total shareholders’ equity was 894,477 million KRW. Figures of less than one million are rounded down.

Item (Mil. KRW)	FY Dec. 2023	FY Dec. 2024	FY Dec. 2025
Sales	304,986	322,073	110,812
Operating income/loss	46,391	-70,938	-127,642
Net income/loss	53,621	-72,205	-162,065
EPS (KRW)	1,591	-2,142	-4,789

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.