KT: Profits Retreat From 2025 Peak as Shares Trade Near 52-Week Low

Thesis

The data supports a picture of a large, steady telecom whose profits recovered sharply in 2025 and have since slipped. The trailing operating margin is 6.9% versus 8.7% in 2025, and trailing net income of ₩1.3T compares with ₩1.7T. Valuation is low against book value (P/B 0.7) and the yield is 4.8%, and a cash dividend decision was filed on 2026-10-13. Free cash flow of ₩4.4T is large relative to net income. What the data does not show is why profit fell, since no news headlines, guidance or flow data are available. The multiples also cannot be compared fully with peers, because only SK Telecom has P/E and P/B values.

Business overview

KT is a KOSPI-listed telecom company founded on 1981-12-10 and listed on 1998-12-23, with 252,021,685 listed shares. Market capitalization is ₩12.6T and enterprise value is ₩16.6T. By market cap it is smaller than SK Telecom (₩17.1T) and larger than LG Uplus (₩6.3T). Revenue has grown from ₩24.9T in 2021 to ₩28.2T in 2025, with annual growth between 0.2% and 6.9%. Operating profit has been more volatile, ranging from ₩809B in 2024 to ₩2.5T in 2025.

Financial analysis

These figures come from filed financial statements (DART). Trailing twelve-month revenue to H1 2026 is ₩27.4T, operating income is ₩1.9T and net income is ₩1.3T. That gives an operating margin of 6.9%, a net margin of 4.7% and ROE of 7.4%. In 2025 revenue was ₩28.2T, operating income ₩2.5T (8.7% margin), net income ₩1.7T and ROE 10.2%. 2024 was weak, with an operating margin of 3.1% and ROE of 2.9%. The balance sheet shows liabilities to equity of 118.7%, cash of ₩3.0T and borrowings of ₩7.1T. Trailing free cash flow is ₩4.4T.

Valuation

The current P/E is 9.7, the P/B is 0.7 and the P/S is 0.5. At the end of 2025 the P/E was 7.7 and the P/B 0.8, so the P/E has risen as earnings fell while the P/B is slightly lower. Among peers, SK Telecom shows a P/E of 22.9 and a P/B of 1.1, so KT is lower on both. Peer multiples for LG Uplus and the smaller companies are not available. EV/EBITDA is not available. The dividend yield is 4.8%.

Catalysts

• A cash dividend decision and a record-date closure decision were filed for 2026-10-13, which bear on the shareholder payout.
• KT filed a corporate value-up plan on 2026-08-12, alongside preliminary earnings.
• On 2026-09-09 KT filed to terminate a treasury-share acquisition trust contract, and on 2026-09-11 it filed the treasury-share acquisition result report.
• The H1 2026 report was filed on 2026-08-14, and the next results will show whether margins stabilize near the trailing 6.9%.
• A 5%+ holding report was filed on 2026-07-30, though the data does not say who filed it.

Risks

• Trailing operating income of ₩1.9T is below 2025's ₩2.5T, so profit momentum has weakened.
• Profit has been volatile, as the 2024 operating margin of 3.1% shows against 8.7% in 2025.
• Borrowings of ₩7.1T and liabilities to equity of 118.7% leave leverage that matters if earnings fall further.
• The price is only about 3.7% above its 52-week low and 28.1% below its 52-week high, showing weak recent sentiment.
• Investor flows, foreign ownership, short balance and news are not available, so the drivers of recent price moves cannot be assessed.

Closing view

The evidence is mixed. KT has steady revenue, strong trailing free cash flow, a low P/B of 0.7 and a 4.8% dividend yield. Against that, profits have fallen from the 2025 level, leverage is meaningful and the share price is near its yearly low. Missing data on flows, news and most peer multiples limits how firm any conclusion can be, so the trend in upcoming earnings and the dividend decision are the main items to follow.

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).

Report history

1. Oct 13, 2026InitiationKT: Profits Retreat From 2025 Peak as Shares Trade Near 52-Week Low