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JONBUR Research · Update note

Hyundai Steel · 004020 · Steel & Materials

Hyundai Steel Q3 Preliminary Earnings: Operating Profit Down 73.9% Year on Year on Flat Revenue

Why this report

Written after:

Hyundai Steel reported preliminary Q3 2026 operating profit of ₩12.3B, down 73.9% from a year earlier, on revenue of ₩4.57T that was up 0.9%. The result confirms the thin-margin picture in our earlier report, while a swing to a quarterly net profit is a partial offset.

Written Oct 30, 2026 · Data as of Oct 29, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

On 2026-10-30 the company released preliminary results for July to September 2026. These are provisional figures and may differ from final ones.

Revenue was ₩4.57T, down 5.5% from Q2 (₩4.84T) and up 0.9% from Q3 2025 (₩4.53T). Operating profit was ₩12.3B, up 10.8% from ₩11.1B in Q2 but down 73.9% from ₩47.1B a year earlier. That implies an operating margin of roughly 0.3% for the quarter.

Pre-tax profit from continuing operations was ₩40.3B, against a loss of ₩32.5B in Q2 and a profit of ₩5.8B a year earlier. Net income was ₩43.5B, a swing from a ₩18.9B loss in Q2 and a ₩2.7B loss a year earlier.

For the first nine months, revenue was ₩13.89T (up 2.8%) and operating profit was a loss of ₩49.1B, against a loss of ₩16.5B a year earlier. Nine-month net income was ₩1.2B, against a loss of ₩58.9B a year earlier.

A separate consolidated filing on the same day was also issued. News headlines on the same day cite a different Q3 operating profit of ₩87.1B, down 6.5% year on year. The excerpt we have does not explain the gap between that figure and the ₩12.3B in this filing, so we cannot reconcile them. The ₩87.1B figure appears to come from the consolidated filing, whose details are not in our data.

What it changes for the thesis

Our previous report described a large steelmaker whose profitability has shrunk sharply, with a 0.9% trailing operating margin and small net losses, and said it was unclear whether earnings would recover. This filing does not change that picture: the operating profit in this filing is very low and the nine-month figure is a loss. Revenue is stable rather than falling in the quarter versus a year earlier, which is a small point in its favour.

The jump in quarterly net income is a different signal from operating results. The filing does not explain what drove it, so we cannot say whether it is recurring. Because the headline figures differ between the two filings, the consolidated numbers deserve to be read before drawing conclusions about the earnings trend.

What it changes for the valuation

The model has no fair value estimate for this company, and the previous report had none either, so there is no change to compare. The shares closed at ₩26,300 on 2026-10-29, before the release, down 12.3% over one month and 22.8% over one year, within a 52-week range of ₩23,650 to ₩50,400. Market capitalisation was about ₩3.51T.

Price-to-book and price-to-sales are both 0.2, and the dividend yield is 1.9%. Price-to-earnings and EV/EBITDA are not available. These multiples are based on data through the first half of 2026 and do not yet include the Q3 figures. Foreign ownership was 14.3%, down from 16.9% sixty days earlier.

Closing view

The filing shows stable revenue but very low operating profit, which is consistent with the weak profitability in our earlier report. The quarterly net profit is a better headline than the operating result, but its source is not disclosed in the excerpt. The gap between this filing and the figures in the news headlines limits what can be concluded now. The consolidated results and the full quarterly report will be needed to judge whether earnings are stabilising. This note is not a recommendation.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 30, 2026Update noteEarningsHyundai Steel Q3 Preliminary Earnings: Operating Profit Down 73.9% Year on Year on Flat Revenue
  2. Oct 13, 2026InitiationHyundai Steel: Thin Margins and a Near-Zero Net Result as the Share Price Falls 17.6% in a Month

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information