Kolon Industries (120110) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached ₩1.2374 trillion, up 0.5% year-over-year and 2.9% quarter-over-quarter, led by industrial materials, chemicals, and fashion, with improved profitability across core segments.

• Operating profit surged to ₩61.9 billion, up 130.1% year-over-year and 531.6% quarter-over-quarter, driven by strong chemical performance, fashion turnaround, and removal of one-off costs.

• Net income was ₩79.7 billion, a 302.6% increase year-over-year, reflecting improved margins and profitability.

• Segment performance improved year-over-year, with industrial materials and chemicals showing strong growth due to increased sales of high-value products and resumed production.

• Completed merger of Kolon E&P and absorption of Kolon Glotech’s automotive materials division, expanding portfolio and operational scale.

Financial highlights

• Sales: ₩1.2374 trillion (YoY +0.5%, QoQ +2.9%).

• Operating profit: ₩61.9 billion (YoY +130.1%, QoQ +531.6%).

• Net income: ₩79.7 billion (YoY +302.6%).

• Gross margin: 27.2% (up from 24.2% YoY); operating margin: 5%; EBITDA margin: 8%.

• R&D expenses were ₩22.2 billion, 1.79% of sales.

Outlook and guidance

• Profitability outlook for industrial materials depends on passing on raw material cost increases amid geopolitical risks.

• Management targets continued growth in industrial materials and chemicals, leveraging expanded capacity and new product launches.

• Chemical segment focusing on stable raw material procurement amid Strait of Hormuz disruptions.

• Ongoing investments in capacity expansion for aramid pulp, PMR resins, and new mPPO facility for electronics.

• Fashion segment expects continued growth from new product sales and overseas expansion.