Hyundai Steel Company (004020) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased to KRW 5,740bn, up KRW 250bn sequentially and 3.2% year-over-year, but profit declined due to FX volatility and higher raw material costs.

• Net loss attributable to owners was KRW 41.0bn, compared to KRW 1bn profit in the previous quarter and KRW -54bn/-55.1bn a year ago.

• Operating profit dropped to KRW 16bn from KRW 43bn in 4Q 2025, with margin narrowing to 0.3%.

• Gross margin improved to 6.1% from 5.2% year-over-year.

• Completed divestitures of Hyundai IFC and Qingdao Hyundai Machinery, and invested in Hyundai Steel USA Corp.

Financial highlights

• Consolidated gross profit was KRW 353bn, down KRW 23bn sequentially but up KRW 61bn year-over-year.

• Total assets at March 31, 2026: KRW 35,036bn; liabilities: KRW 15,195bn; equity: KRW 19,841bn.

• Cash and cash equivalents increased to KRW 1,683bn from KRW 1,343bn at year-end 2025.

• Capital expenditures for property, plant, and equipment were KRW 552.7bn in Q1 2026.

• Non-consolidated operating profit was a loss of KRW -72bn, reversing from a profit of KRW 106bn in 4Q 2025.

Outlook and guidance

• Product prices are trending upward due to improved supply-demand balance, with HRC and rebar prices rising.

• The company is investing in a new electric arc furnace steel mill in the US, targeting commercial production in early 2029.

• Market recovery is expected as global fiscal policies and lower interest rates support demand, but near-term steel market conditions remain weak.

• Focus remains on high-value products, carbon reduction, and global expansion.

• Iron ore and coal prices are under downward pressure due to stabilized supply and oversupply outlook.