Hyundai Steel Company (004020) Q2 2025 earnings summary

Executive summary

• Achieved positive operating profit in 2Q 2025, driven by increased sales volume, lower raw material costs, and improved subsidiary performance.

• Consolidated revenue rose to KRW 5,946bn in 2Q 2025, up KRW 382bn quarter-over-quarter and KRW 96bn year-over-year.

• Net profit improved to KRW 37bn in 2Q 2025 from a net loss in the previous quarter.

• Revenue for H1 2025 was KRW 11.51 trillion, down from KRW 23.23 trillion in FY2024 and KRW 25.91 trillion in FY2023, reflecting a challenging market environment.

• The company maintained a strong liquidity position with cash and cash equivalents of KRW 954.7 billion at the end of June 2025.

Financial highlights

• Consolidated operating profit reached KRW 102bn in 2Q 2025, up KRW 121bn sequentially and KRW 4bn year-over-year.

• Operating margin improved to 1.7% from -0.3% in the prior quarter.

• Gross margin for H1 2025 was 6.1%, down from 7.0% in H2 2024 and 10.2% in FY2023.

• Basic EPS for H1 2025 was -162 KRW, compared to -88 KRW in H2 2024 and 3,506 KRW in FY2023.

• Total assets at June 2025 were KRW 33.65 trillion, with total liabilities of KRW 14.25 trillion and equity of KRW 19.41 trillion.

Outlook and guidance

• Flat product prices expected to remain stagnant due to oversupply, while long product prices are stable as production cuts offset slow demand.

• The company is pursuing a dual-route carbon reduction strategy, focusing on process improvements and a new EAF to meet carbon neutrality goals by 2050.

• Major investment in a $5.8 billion EAF steel plant in Louisiana, USA, targeting commercial production in early 2029.

• Gradual recovery in steel demand is expected as global economic stimulus and lower interest rates take effect.