COWAY (021240) Q1 2026 earnings summary

Executive summary

• Achieved record-high quarterly earnings in Q1 2026, with consolidated revenue of KRW 1,329.7 billion and strong profitability driven by core rental business and favorable external factors.

• Revenue grew 13.2% year-over-year, operating profit up 18.8%, and net profit surged 31.1% YoY, aided by exchange rate gains.

• Rental accounts reached 11.73 million (+10.9% YoY), with overseas accounts comprising 36% and domestic market leadership at 7.81 million accounts.

• Both domestic and overseas businesses contributed to growth, with Malaysia and Thailand showing robust expansion, while Indonesia faced temporary certification delays.

• Maintains robust R&D and ESG initiatives, with significant product launches and environmental certifications.

Financial highlights

• Q1 2026 consolidated revenue: KRW 1,329.7 billion (+13.2% YoY); operating profit: KRW 250.9 billion (+18.8% YoY); net profit: KRW 182 billion (+31.1% YoY).

• Operating profit margin: 18.9%; gross margin: 64.1%; net margin: 13.7%.

• Cash and cash equivalents at period end: KRW 542.8 billion, up from KRW 182.2 billion at year-end.

• Basic EPS: KRW 2,580 (Q1 2026) vs. KRW 1,932 (Q1 2025).

• Domestic revenue: KRW 742.8 billion (+9.5% YoY); overseas revenue: KRW 537 billion (+20.2% YoY).

Outlook and guidance

• Achieved 24% of full-year revenue and 26% of operating profit guidance in Q1, indicating a strong start toward 2026 targets.

• Management remains focused on sustainable growth, digital transformation, and ESG management.

• Expectation of business normalization and strong demand recovery in Indonesia after SNI certification in Q2.

• Quarterly dividends initiated from Q1 2026, with KRW 700 per share declared.

• Aiming for a 40% payout ratio of consolidated net income through 2027.