Kumho Petro Chemical (011780) Q3 2025 earnings summary

Executive summary

• 3Q 2025 sales reached KRW 1,643.8 bn, down 7.3% QoQ and 10.1% YoY, with operating profit at KRW 84.5 bn, up 29.6% QoQ but down 30% YoY.

• Net income was KRW 106.9 bn, up 85.6% QoQ and 101.3% YoY, reflecting improved profitability in several divisions.

• Revenue for the first nine months of 2025 was KRW 5,325.4 bn, down 0.4% YoY, while operating income rose 2.8% to KRW 270.3 bn and net income attributable to owners reached KRW 289.5 bn.

• Gross margin improved slightly due to cost controls and product mix optimization.

• The company maintained a strong financial position, with total assets of KRW 8,428.5 bn and equity of KRW 6,234.3 bn as of September 30, 2025.

Financial highlights

• EBITDA for 3Q 2025 was KRW 162.3 bn, up 13.3% QoQ and 24% YoY.

• Pre-tax income rose to KRW 128.4 bn, up 90.2% QoQ and 108.4% YoY.

• Net income based on controlling interests increased to KRW 106.9 bn.

• Basic earnings per share for common stock was KRW 11,218 for the period.

• Cash and cash equivalents at period end were KRW 746.3 bn, up from KRW 429.3 bn at the end of 2024.

Outlook and guidance

• Synthetic Rubbers: 4Q market prices expected to remain weak due to new cracker startups in China; demand projected to slow amid uncertainty.

• Synthetic Resins: 4Q prices to stay soft due to new capacity in China and weak downstream demand.

• Phenol Derivatives: 4Q sales volumes expected to decline due to off-season and BPA maintenance.

• The company is pursuing global expansion in synthetic rubber and related businesses, with ongoing reviews for optimal global production bases and sustainable growth initiatives, including ESG and low-carbon materials.

• Market conditions remain uncertain due to global economic slowdown, trade tensions, and supply-demand imbalances, but the company aims to strengthen competitiveness through high-value products and operational efficiency.