Korea Zinc Company (010130) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated sales of KRW 16.59 trillion and operating income of KRW 1.23 trillion in 2025, driven by higher precious and rare metal prices, zinc price recovery, and improved recovery rates.

• Net profit rebounded to KRW 775 billion in 2025, a significant turnaround from a loss in 4Q24.

• Strategic decision to build an integrated non-ferrous metals smelter in the U.S. to secure global supply chain and long-term growth, with a total investment of about USD 7.4 billion.

• U.S. project aims to produce 13 types of non-ferrous metals and semiconductor-grade sulfuric acid.

Financial highlights

• 4Q25 consolidated sales: KRW 4,763 billion (+603 QoQ, +1,351 YoY); full-year 2025 sales: KRW 16.59 trillion (+37.6% YoY).

• Operating profit: KRW 429 billion in 4Q25 (+156 QoQ, +309 YoY); full-year operating income: KRW 1.23 trillion (+70.3% YoY).

• Net profit: KRW 212 billion in 4Q25 (+142 QoQ, +458 YoY); full-year net income: KRW 775 billion (+298% YoY).

• Cash and cash equivalents: KRW 3.45 trillion at year-end.

• Dividend per share: KRW 20,000 (2025), payout ratio 52.6%.

Outlook and guidance

• 2026 expects solid earnings growth, driven by rising silver prices, increased copper capacity, and robust demand from AI, data centers, and energy transition sectors.

• U.S. smelter project expected to enhance global supply chain resilience and long-term growth, with EBITDA margin estimated at 17–19% over project life.

• Company maintains a policy of stable dividends and total shareholder return above 40% of average consolidated net income for 2024–2026.

• Advancing a profitability-focused business structure with improved product mix centered on copper and zinc.