Hyundai Steel Company (004020) Q3 2025 earnings summary

Executive summary

• Achieved stable operating profit in 3Q 2025 despite a decline in revenue, supported by improved product mix and lower raw material costs.

• Revenue for the first nine months of 2025 was KRW 17.24 trillion, down from KRW 23.23 trillion year-over-year, reflecting a challenging market environment and lower steel demand.

• Operating income for the same period was KRW 176 billion, a significant decrease from KRW 798 billion in the prior year, with net income attributable to owners at KRW 18 billion.

• Enhanced global sales capabilities and competitiveness through new facilities, certifications, and digital transformation initiatives.

• Maintained a strong liquidity position with cash and cash equivalents of KRW 1.06 trillion at quarter-end.

Financial highlights

• Consolidated revenue for 3Q 2025 was KRW 5,734bn, down KRW 212bn quarter-over-quarter but up KRW 110bn year-over-year.

• Operating profit reached KRW 93bn, a decrease of KRW 9bn sequentially but up KRW 42bn year-over-year; operating margin at 1.6%.

• Net profit was KRW 18bn, down KRW 19bn from the previous quarter but up KRW 34bn year-over-year.

• Gross profit for the period was KRW 1.13 trillion, with a gross margin of 6.6%, down from 7.1% year-over-year.

• Basic earnings per share for the period was KRW 130, compared to a loss of KRW 32 per share in the prior year.

Outlook and guidance

• Flat product imports reduced due to provisional tariffs; prices remain stable as inventories are high.

• The company expects gradual recovery in steel demand as global inflation stabilizes and fiscal stimulus in major economies takes effect.

• Strategic focus remains on high-value products, carbon reduction initiatives, and expansion into the U.S. market with a new electric arc furnace plant in Louisiana targeting automotive steel.

• Long product prices held steady despite production cuts and weak demand.

• Iron ore and coking coal prices stabilized after a temporary uptick; scrap prices show a mild downward trend.