Kolon Industries (120110) Q2 2026 earnings summary

Executive summary

• Revenue reached KRW 1,356.5 billion in Q2 2026, up 7.8% YoY and 9.6% QoQ, with H1 2026 consolidated revenue at KRW 2,593.9 billion; operating profit for Q2 was KRW 98.7 billion, and H1 operating income was KRW 160.7 billion.

• Net profit was KRW 66.0 billion in Q2 2026, up 126.7% YoY but down 17.2% QoQ; H1 2026 net income was KRW 145.7 billion.

• Industrial materials led H1 sales (45.4%), followed by chemicals (30.2%), fashion (22.6%), and others (1.8%).

• Major business events included the absorption of Kolon E&P and full acquisition of Kolon Glotech.

Financial highlights

• Gross profit margin improved to 29% in Q2 2026, with operating margin at 8% and EBITDA margin at 12%; H1 2026 gross margin was 28.2%, operating margin 6.2%, and net margin 5.6%.

• Debt to equity ratio stood at 87% in Q2 2026 and 86.7% as of June 2026; net debt ratio increased to 64%.

• Total assets rose to KRW 8,074.2 billion, with equity at KRW 4,328.3 billion and total liabilities at KRW 3,745.8 billion as of June 2026.

• Basic EPS (common) was KRW 3,917 for H1 2026.

Outlook and guidance

• Management expects continued growth momentum in the Chemical segment and stable performance in Fashion, with ongoing focus on operational efficiencies, product mix improvements, and expansion in high-value materials, automotive, and eco-friendly businesses.

• New investments in PU synthetic leather and mPPO production are planned to drive future growth.

• Guidance includes ongoing portfolio optimization and global expansion, especially in automotive and electronics.