KT&G (033780) Q4 2025 earnings summary

Executive summary

• Achieved record-high annual revenue of KRW 6.58 trillion and operating profit in 2025, with double-digit growth year-over-year, driven by global CC and real estate segments.

• Overseas CC revenue exceeded domestic CC revenue for the first time, marking a significant business transition.

• Shareholder returns included a year-end dividend of KRW 4,601 per share (up 11.1% YoY) and a 14.3% share cancellation since 2024.

• Total cash return to shareholders reached KRW 1.19 trillion, with a total shareholder return ratio of 109.8% for 2025 and 103.3% for 2024-2025.

• Share price rose from KRW 107,100 to KRW 142,100 in 2025, peaking at KRW 161,801 in early 2026, with a 32.7% annual increase.

Financial highlights

• Q4 2025 consolidated revenue increased 10.1% YoY to KRW 1.71 trillion, with operating profit up 17.1% YoY to KRW 248.8 billion.

• Q4 2025 net income fell 15.7% YoY to KRW 274.2 billion due to lower currency-related non-operating profits; EPS down 15.3% YoY.

• Full-year 2025 revenue grew 11.4% YoY to KRW 6.58 trillion; operating profit up 13.5% to KRW 1.35 trillion.

• Full-year 2025 net income declined 6.1% YoY to KRW 1.09 trillion; EPS down 3% YoY to KRW 10,143.

• EBITDA for 2025 increased 14.1% YoY to KRW 1.64 trillion, with a margin of 24.9%.

Outlook and guidance

• 2026 revenue growth targeted at 3%-5%, operating profit growth at 6%-8%.

• Plans to maintain best-in-class shareholder returns, targeting over 100% total shareholder return ratio.

• Share repurchases of at least KRW 300 billion planned, with over 4% of outstanding shares to be canceled in 2026.

• Additional shareholder return from non-core asset divestiture and increased DPS planned.

• Continued focus on profit-led growth, cost competitiveness, global expansion, and new product launches in NGP and nicotine pouch segments.