Hyundai Steel (004020) Q2 2026 earnings summary

Executive summary

• Revenue and operating profit increased quarter-over-quarter in 2Q 2026, driven by higher sales volumes and improved product pricing, while the company operates as a major steel manufacturer with global subsidiaries and a focus on innovation and environmental initiatives.

• Net profit turned positive in 2Q 2026 compared to the previous quarter, reflecting operational improvements, but H1 2026 overall recorded a net loss attributable to owners.

• Recent strategic moves include divestiture of non-core subsidiaries and a major investment in a new U.S. electric arc steel mill targeting automotive steel and carbon reduction.

Financial highlights

• Consolidated revenue rose to KRW 6,107bn in 2Q 2026, up KRW 368bn QoQ and KRW 162bn YoY, but H1 2026 revenue was KRW 11,846,990 million, down from previous years.

• Operating profit increased to KRW 58bn in 2Q 2026, with OPM improving to 0.9%, but H1 2026 operating income was KRW 73,409 million, a sharp decline from FY2025.

• Net profit reached KRW 12bn in 2Q 2026, reversing a KRW 39bn loss in the prior quarter, but H1 2026 saw a net loss of KRW -32,557 million.

• Non-consolidated revenue grew to KRW 4,838bn in 2Q 2026, with operating profit at KRW 11bn, up KRW 84bn QoQ.

• Total assets at June 2026 were KRW 35,765,681 million, with equity of KRW 20,367,286 million and liabilities of KRW 15,398,395 million.

Outlook and guidance

• The company is advancing a $5.8 billion investment in a U.S. electric arc steel mill, aiming for commercial production in early 2029 and a focus on automotive steel and carbon reduction.

• Product prices are trending upward due to improved supply-demand dynamics and cost pass-through.

• Ongoing R&D and capital investments target product competitiveness, carbon neutrality, and digital transformation.

• Flat product prices rose as supply tightened, while long product prices increased on continued exports and higher raw material costs.