Hyundai Steel Company (004020) Q1 2025 earnings summary

Executive summary

• Revenue declined both year-over-year and quarter-over-quarter, with consolidated revenue at KRW 5,564bn in 1Q 2025, down KRW 384bn YoY and KRW 49bn QoQ.

• Operating profit remained negative at KRW -19bn, an improvement from KRW -46bn in 4Q 2024, but down from KRW 56bn in 1Q 2024.

• Net profit was negative at KRW -54bn, a further decline from KRW -9bn in the previous quarter and KRW 32bn in 1Q 2024.

• Performance was impacted by a slow recovery in the steel market and lingering effects from a strike in late 2024.

Financial highlights

• Consolidated gross profit rose to KRW 292bn in 1Q 2025, up KRW 22bn QoQ but down KRW 73bn YoY.

• Operating margin improved to -0.3% from -0.8% in the previous quarter, but down from 0.9% a year ago.

• Non-consolidated revenue was KRW 4,290bn, down KRW 194bn QoQ and KRW 530bn YoY.

• Non-consolidated operating profit improved to KRW -56bn from KRW -152bn in 4Q 2024.

Outlook and guidance

• Steel prices are supported by reduced low-priced imports and production cuts, but oversupply and weak demand are pressuring raw material prices.

• HRC prices remain stable, while coal and scrap prices are declining due to increased supply and lower demand.

• Long steel prices are stable despite a slowdown in construction, supported by domestic production cuts.