CJ Logistics (000120) Q1 2026 earnings summary

Executive summary

• Sales reached KRW 3.21tn in Q1 2026, up 7.4% year-over-year, with operating profit at KRW 92.1bn (+7.9% YoY) and net income at KRW 37.9bn (-7.4% YoY).

• All major business segments—Contract Logistics, Parcel (O-NE), Global, and Construction (E&C)—contributed to growth, with Global segment leading at 36.4% of total revenue.

• Revenue growth was driven by strong volume gains in O-NE and new contract wins in CL and Global segments.

• Earnings growth was supported by major U.S. customer onboarding and improved construction progress in E&C.

Financial highlights

• Gross profit increased 2.4% YoY to KRW 316.4bn, with gross margin at 9.8%.

• Operating profit margin remained flat at 2.9% YoY, and net margin was 1.2% for the quarter.

• Net income declined 7.4% YoY due to a temporary increase in effective tax rate and lower equity method gains.

• Basic EPS for Q1 2026 was KRW 1,542, compared to KRW 1,600 in Q1 2025.

• Total assets rose to KRW 10.93tn, up KRW 587.8bn YoY, with total equity at KRW 4,470.2bn at quarter-end.

Outlook and guidance

• O-NE aims to optimize service offerings, expand market share, and sustain volume growth through differentiated services.

• CL targets 3PL volume expansion and vertical-focused contract wins, with continued operational cost efficiency improvements.

• Global segment focuses on leveraging strategic hubs, expanding into new sectors, and enhancing automation and productivity.

• The company maintains a progressive dividend policy, targeting at least KRW 800 per share annually through 2026, with dividends set at 20% of free cash flow, even in years with negative free cash flow.