Korea Zinc Company (010130) Q1 2026 earnings summary

Executive summary

• Achieved record consolidated sales of KRW 6.1 trillion in Q1 2026, up 27.3% QoQ and 58.4% YoY, driven by strong zinc, lead, and precious metals performance.

• Consolidated operating profit reached KRW 746 billion, up 74.1% QoQ and 175.2% YoY, with OPM improving to 12.3%.

• Net profit rose to KRW 354 billion, up 67.2% QoQ and 118.2% YoY.

• The group operates in non-ferrous metals, trading, waste management, energy, and battery materials, with 85 consolidated subsidiaries.

• Major developments include a large-scale investment in a US integrated non-ferrous metals smelter and ongoing shareholder litigation.

Financial highlights

• Q1 2026 consolidated revenue: KRW 6,072.0 billion, up from KRW 3,832.8 billion in Q1 2025.

• Operating income: KRW 746.1 billion (Q1 2025: KRW 271.1 billion); net income attributable to owners: KRW 354.6 billion (Q1 2025: KRW 162.5 billion).

• Gross profit increased to KRW 953 billion, up 54.8% QoQ and 134.6% YoY.

• EBITDA surged to KRW 847 billion, up 70.5% QoQ and 132.2% YoY.

• Basic EPS: KRW 17,388 (Q1 2025: KRW 8,945).

Outlook and guidance

• 2Q26 expects continued earnings stabilization through high-margin product sales despite metal price volatility and geopolitical risks.

• The group targets stable quarterly dividends (KRW 5,000/share for Q1 2026) and maintains a shareholder return policy of 40%+ over 2024–2026.

• US smelter project aims for commissioning in 2029, with significant capital commitments and strategic supply chain positioning.

• Silver and gold prices expected to remain elevated, supporting profitability.

• SMC anticipates increased production and sales as logistics normalize post-flooding.