Kumho Petro Chemical (011780) Q2 2026 earnings summary

Executive summary

• Achieved significant revenue and profit growth in 2Q 2026, with sales up 27.4% QoQ and 27.9% YoY, and operating profit surging 470.7% QoQ and 419.9% YoY.

• Net income rose 211.8% QoQ and 421.4% YoY, reflecting strong operational performance across divisions.

• Revenue for the first half of 2026 increased 27.9% YoY to KRW 4,048.1 billion, with operating income up 46.6% to KRW 398.4 billion and net income up 36.2% to KRW 396.7 billion.

• Growth was driven by higher sales volumes and improved product spreads, especially in synthetic rubber and resin segments, despite ongoing geopolitical risks and raw material price volatility.

• The company continued its shareholder return policy, executing significant treasury share buybacks and cancellations, and maintained a strong capital structure.

Financial highlights

• Sales reached KRW 2,268.1 bn, operating profit KRW 339.0 bn, EBITDA KRW 416.8 bn, and net income KRW 300.3 bn for 2Q 2026.

• Consolidated revenue: KRW 4,048.1 billion (up 27.9% YoY).

• Operating income: KRW 398.4 billion (up 46.6% YoY).

• Gross margin improved to 14.0% from 9.0% YoY.

• Basic EPS: KRW 15,530 (up from KRW 11,300 YoY).

Outlook and guidance

• Synthetic Rubbers: Short-term price strength expected due to Middle East tensions, but mid-quarter price adjustment likely on weak derivative demand.

• Synthetic Resins: Limited price declines expected despite weak demand, supported by oil price rises and production cuts.

• Phenol Derivatives: Spreads expected to narrow due to weak downstream demand.

• The company is focused on global expansion in synthetic rubber and related businesses, with ongoing reviews for new ESG and eco-friendly projects.

• Management expects continued volatility in raw material prices and foreign exchange rates due to geopolitical tensions, but aims to mitigate risks through supply chain optimization and product mix improvements.