Kumho Petro Chemical (011780) Q2 2025 earnings summary

Executive summary

• 2Q 2025 sales reached KRW 1,773.4 bn, down 7.1% sequentially and 4.3% year-over-year.

• 2025 H1 consolidated revenue rose 4.6% YoY to KRW 3,681.6B; operating profit fell 6.0% YoY to KRW 185.8B.

• Operating profit declined 45.9% quarter-over-quarter and 45.3% year-over-year to KRW 65.2 bn.

• Net income dropped 53.9% sequentially and 56.2% year-over-year to KRW 57.6 bn.

• Major segments: synthetic rubber (58.3% of sales), synthetic resin (25.8%), fine chemicals (4.3%), others (11.6%).

Financial highlights

• EBITDA for 2Q 2025 was KRW 143.3 bn, down 25.4% from the previous quarter and 21.3% year-over-year.

• Net income attributable to owners: KRW 182.6B; basic EPS: KRW 7,046.

• Total assets: KRW 8,282.1B; equity: KRW 6,118.6B; liabilities: KRW 2,163.5B.

• Cash and equivalents stood at KRW 568.3 bn at quarter-end.

• Dividend paid in April 2025: KRW 50.5B (common), KRW 6.8B (preferred).

Outlook and guidance

• Synthetic Rubbers: Weak demand expected due to tariff uncertainty; focus on high-value products and NB Latex profit improvement.

• Synthetic Resins: Prices and demand expected to weaken due to oversupply and off-season effects.

• Phenol Derivatives: Profitability to decline further due to major maintenance and weak market prices.

• Focus on expanding high-value product sales and improving profitability in ABS and other products.

• Ongoing investment in R&D for new materials and eco-friendly processes.