PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩800 per share · Prices as of the 2026-10-02 close
Korea's largest logistics operator has expanded volumes and market share through seven-day delivery, but falling box prices, front-loaded investment and higher fuel costs pushed its first-half 2026 operating margin down to the low 3% range.
For 2025, revenue was KRW 12.285tn with operating profit of KRW 508.1bn (4.1% margin); revenue grew but operating profit fell from KRW 530.7bn in 2024.
Quarterly operating profit peaked at KRW 159.6bn in 4Q25, then fell to KRW 92.1bn in 1Q26 and KRW 101.6bn in 2Q26, taking the quarterly margin down to around 3%.
On the company's preliminary 2Q26 disclosure, O-NE parcel volume rose 12.1% year on year and dawn/same-day volumes jumped 65%, yet operating profit fell across every division.
The global division is being restructured through subsidiary clean-ups and a focus on the US and India, and the Elwood logistics center in Illinois began operations in early September 2026.
Heavy infrastructure spending has pushed the debt ratio higher while the payout ratio remains low, making the balance between growth investment, shareholder returns and financial soundness the key watch point.
CJ Logistics is an integrated logistics company built on four pillars: parcel and e-commerce (O-NE), contract logistics (CL), global, and construction.
Founded in 1930, it joined the CJ Group in 2011 and merged with CJ GLS in 2013, and today runs transport, port handling, construction, contract logistics and domestic and overseas parcel businesses, with the construction arm building logistics and specialized facilities.
On the company's preliminary 2Q26 disclosure, divisional revenue was KRW 984.8bn for O-NE parcel and KRW 1,206.0bn for global, KRW 900.1bn for contract logistics, and KRW 289.1bn for construction, so global operations and domestic logistics together form the bulk of the top line.
In parcel, the Maeil O-NE service offers 365-day delivery including Sundays and holidays, pushing into the weekend and late-night delivery space that Coupang's Rocket Delivery had effectively monopolized.
By company count, 1Q26 parcel pickups reached 425mn boxes and market share was 45.0%, recovering 1.1 percentage points from 43.9% for full-year 2024.
Contract logistics splits into warehousing and distribution (W&D) and packaging and delivery (P&D): in 2Q26, W&D revenue rose 12% on higher volumes from key clients with retail and pharmaceutical verticals growing at double digits, while P&D transport grew 7% on recognition of previously won contracts.
The global division operates 92 entities across 33 countries in contract logistics, air and ocean forwarding and international express, and is being steered toward end-to-end capability that links local contract logistics with global forwarding.
Its customer base centers on large e-commerce platforms plus retail, food and pharmaceutical shippers, and domestically it competes simultaneously with parcel carriers such as Hanjin and Lotte Global Logistics and with Coupang's in-house network. In terms of ownership, it sits within the chain running from CJ Corp through CJ CheilJedang to CJ Logistics.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩3T | ₩115.2B | 3.8% |
| 2025Q3 | ₩3.1T | ₩147.9B | 4.8% |
| 2025Q4 | ₩3.2T | ₩159.6B | 5.0% |
| 2026Q1 | ₩3.2T | ₩92.1B | 2.9% |
| 2026Q2 | ₩3.4T | ₩101.6B | 3.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩12.1T | ₩411.8B | ₩181.6B | 3.4% | 5.1% | 140.3% |
| 2023 | ₩11.8T | ₩480.2B | ₩224.8B | 4.1% | 6.2% | 131.4% |
| 2024 | ₩12.1T | ₩530.7B | ₩248.5B | 4.4% | 6.3% | 130.6% |
| 2025 | ₩12.3T | ₩508.1B | ₩242.1B | 4.1% | 5.8% | 132.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On an annual basis, results improved from KRW 12,130.7bn revenue and KRW 411.8bn operating profit (3.4% margin) in 2022 to KRW 11,767.9bn and KRW 480.2bn (4.1%) in 2023 and KRW 12,116.8bn and KRW 530.7bn (4.4%) in 2024.
In 2025 revenue rose to KRW 12,284.7bn but operating profit slipped to KRW 508.1bn for a 4.1% margin, and net profit attributable to owners of KRW 242.1bn came in below the KRW 248.5bn of 2024.
Cash flow from operations, however, jumped to KRW 902.4bn in 2025 from KRW 606.2bn in 2024, so cash generation relative to earnings held up, and the debt-to-equity ratio stood at 132.9% at end-2025.
Quarterly, operating profit improved from KRW 115.2bn in 2Q25 to KRW 147.9bn in 3Q25 and KRW 159.6bn in 4Q25, a period when parcel division operating profit of KRW 62.8bn marked the fastest growth since 1Q21, with automation and cost efficiencies offsetting the burden of seven-day delivery expansion.
Operating profit then fell back to KRW 92.1bn in 1Q26 and KRW 101.6bn in 2Q26, while revenue over the same span grew from KRW 3,214.5bn to KRW 3,380.0bn, repeating a pattern of expanding scale alongside a margin compressed to around 3%.
Net profit attributable to owners also narrowed from KRW 82.6bn in 4Q25 to KRW 34.6bn in 1Q26 and KRW 34.6bn in 2Q26.
Management said of 2Q26 that volume expansion drove revenue growth while cost increases from external variables such as higher oil prices and pre-emptive service and infrastructure investment worsened profitability, and press reports noted that one-off costs arising from a business divestment widened the drop in net profit.
On the cost side, one encouraging signal is the company's statement that first-half unit operating costs fell 2.2% year on year, making investment effects visible.
Summing the four quarters from 3Q25 to 2Q26 gives roughly KRW 12,838.1bn of revenue, about KRW 501.1bn of operating profit and KRW 222.9bn of net profit attributable to owners, leaving the annualized earnings scale on a track similar to 2025.
The variable that reshaped Korea's parcel market is seven-day delivery. After CJ Logistics launched it in January 2025, Hanjin followed in April of that year and Lotte Global Logistics in January 2026, and industry participants now describe seven-day delivery as basic infrastructure rather than a differentiator.
Standardization of the service also means permanently higher cost structures, and in the early phase the company inevitably absorbed higher labor costs from weekend and holiday staffing plus greater center operating expenses.
On pricing, downward pressure has persisted: one broker judged that domestic parcel average selling prices keep declining and CJ Logistics is proving to be the only player able to convert that into volume growth, while Hana Securities projected 8% year-on-year volume growth in the third quarter with a narrowing decline in average price per box.
Competition now extends beyond traditional carriers to e-commerce platforms with their own networks, and as fast-delivery competition intensifies among Coupang Rocket Delivery, Naver and Kurly, the company is broadening from pure parcel into guaranteed-arrival, dawn delivery and fulfillment services.
In contract and third-party logistics, analysts noted that large contracts won from late 2024 have required a longer stabilization spending period due to greater operational complexity, even as new order momentum continues.
Global forwarding sits in a downcycle, where despite a slowdown tied to conflict in the Middle East, strategic-country operations in the US and India plus cross-border e-commerce volumes defended revenue.
Overall, volume and share metrics are moving in favor of the top-tier operator, but the pricing and cost cycle has yet to confirm a recovery.
The company's second-half execution plan is explicit.
In the third quarter it intends to continue fulfillment-center productivity projects in W&D to cut operating costs, and in P&D to scale integrated transport volumes linked to its middle-mile platform The Unban, while in global it plans to strengthen an end-to-end system connecting forwarding with strategic-country contract logistics.
On strategic direction, CEO Shin Young-soo told a second-half 2026 town hall meeting that it is time to raise the quality of growth beyond scale, strengthening new volumes and profitability at home through delivery, fulfillment and digital middle-mile capabilities while expanding business scope and the customer base abroad.
Investment plans are also specified: from 2026 to 2028 the company plans annual average spending of KRW 200-250bn on recurring and technology investment and KRW 180-230bn on new last-mile delivery (dawn and same-day) plus global contract logistics hubs, and the 142.2% debt ratio at end-June sits within its stated 130-150% management target for 2026-2028 but near the upper bound.
Overseas, the Elwood logistics center in Illinois, co-invested with Korea Ocean Business Corporation, has completed development and begun operations with about 102,775 square meters of floor area, and the partners plan to begin procedures to have it designated a US Foreign Trade Zone.
At the same time, the number of consolidated subsidiaries fell by 22 from 114 at end-2025 to 92 at end-June 2026, with some entities in China, Africa and Southeast Asia wound down.
On broker estimates, Shinhan Securities in an August 2026 report projected 2026 consolidated revenue of KRW 13,176bn and operating profit of KRW 476.5bn, while Hana Securities around the same time maintained a KRW 120,000 target price and a buy rating, projecting operating profit of KRW 470.4bn for 2026 and KRW 548.0bn for 2027.
Ultimately, the key second-half question is whether volume growth can outrun pricing and cost pressure and translate into margin recovery.
For this company the discount to book value stands out more than the earnings multiple. On both its own calculation basis and the Korea Exchange's published basis, the price-to-book ratio sits well below one time, confirming that the shares trade at a discount to reported net assets.
The earnings multiple likewise remains in single digits against KRW 222.9bn of net profit attributable to owners over the past four quarters, which can be read as reflecting both a phase of quarterly operating margins compressed to around 3% and a low multiple relative to assets.
On dividends, the fiscal 2024-2026 policy pairs a cap of using up to 20% of free cash flow with a stated minimum per-share floor, but shrinking cash headroom from investment spending has led to repeated execution at that floor, and the payout ratio over the past three years stayed at or below 7%, far under the roughly 30% KOSPI average, so the dividend yield runs below the market average.
As for directional views, Hana Securities in an August 2026 report cited changes in the parcel market's competitive structure and expanded shareholder returns as factors that could influence the share price.
The multiple debate therefore hinges on the direction of price per box, when the investment cycle ends, and whether shareholder-return policy changes.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
On the company's preliminary tally, 2Q26 O-NE division total volume rose 12.1% year on year, above the industry growth rate, with dawn and same-day volumes surging 65%. First-quarter market share of 45.0% recovered from 43.9% for full-year 2024.
Improving volume and share simultaneously while pricing is squeezed leaves room for margin improvement through scale economics. Indeed, first-half unit operating costs fell 2.2% year on year.
While cutting the number of countries, cities, entities and hubs abroad, global revenue fell only about 1% and operating profit actually rose, making the restructuring away from low-margin entities and duplicated networks clearly visible, analysts noted.
First-quarter 2026 global operating profit rose 52.6% year on year to KRW 17.7bn. In addition, the Elwood center connects to major rail and road networks enabling two-day delivery across the US, and clusters of large global retailers' logistics hubs sit nearby. Securing a profit stream distinct from the domestic parcel cycle offers portfolio diversification.
Cash flow from operations reached KRW 902.4bn in 2025, well above KRW 606.2bn in 2024, showing that core cash generation held up even under margin pressure. Total equity grew from KRW 4,034.3bn in 2022 to KRW 4,439.6bn in 2025, while the debt ratio eased from 140.3% to 132.9% over the same period.
The price-to-book ratio sits well below one time, leaving a wide gap between asset value and market price. That said, the common market observation is that closing such a gap requires a catalyst such as margin recovery or a change in return policy.
Operating profit of KRW 92.1bn in 1Q26 and KRW 101.6bn in 2Q26 sits well below the KRW 159.6bn of 4Q25, taking the quarterly operating margin down toward 3%. In 2Q26, revenue rose in every division while operating profit fell across all of them.
The operating margin declined 0.8 percentage points from 3.8% in 2Q25 to 3.0% in 2Q26. A stretch in which volume growth does not translate into profit growth could persist.
The debt ratio was 132.9% at end-2025, but it rose 9.3 percentage points to 142.2% by end-June 2026.
The company issued KRW 400bn of perpetual bonds in two tranches in 2024 and raised a further KRW 450bn of corporate bonds in February 2026, with perpetual coupons of 4.88-5.28% and bond rates of 3.40-3.93%, while roughly KRW 1.1tn of bond maturities cluster in 2027-2031.
If the investment cycle stretches out, interest costs and refinancing needs could amplify net profit volatility. Non-operating factors also played into net profit attributable to owners staying at KRW 34.6bn in each of 1Q26 and 2Q26.
As infrastructure spending and interest costs rose together, shareholder returns and value-up measures were pushed down the priority list; the payout ratio stayed at or below 7% over the past three years, far under the KOSPI average, and no specific corporate value enhancement plan has been disclosed.
Total dividends amounted to less than 5% of that year's free cash flow, and commentators noted that the 'within 20% of free cash flow' framing works as a ceiling rather than a target, resulting in repeated minimum payouts.
The company says it continues to review shareholder returns and will decide capital expenditure flexibly in light of market conditions. Until a change in return policy is confirmed, this remains part of the bear case.
The company attributed the 2Q26 decline in global division operating profit to higher oil prices from Middle East conflict and concerns about a global slowdown. One brokerage judged that post-conflict oil price increases would raise contract logistics costs and likely weigh on port cargo volumes as well.
Fuel and raw material prices feed directly into parcel and contract logistics costs, and passing them into prices happens with a lag. Should domestic consumption soften at the same time, the volume growth rate itself could slow.
With seven-day delivery now established as basic infrastructure, defending prices through service differentiation alone has become harder.
Shinhan Securities was reported to expect price increases only in the second half of next year given market restructuring, applied gradually and focused on customers heavily reliant on dawn and same-day delivery, so the timing of any pricing recovery is not yet set.
Regulatory variables such as the fading of expectations for revision of the Distribution Industry Development Act have already been cited, meaning policy can cut both ways. Relationships with large e-commerce players expanding their own networks carry a dual character as both customer and competitor.
Plans for hundreds of billions of won annually in technology and hub investment over 2026-2028 front-load depreciation and early operating costs during the build-out.
Analysts noted that large W&D contracts are requiring a longer-than-expected stabilization spending period as operational complexity rises, so how quickly new facilities reach normal utilization will shape margins.
Overseas, restructuring is underway, including liquidation of Southeast Asian subsidiaries and the sale of the Myanmar entity, which can produce recurring one-off gains and losses. The construction division is volatile: 2Q26 revenue rose 41.2% while operating profit plunged 86.8%.
Preliminary 3Q26 results. Hana Securities projected 8% volume growth, a narrower decline in average price per box and higher operating profit than in the second quarter, so whether the actual operating margin rebounds from the low 3% range is the first checkpoint for a turn in the pricing and cost cycle.
Third-quarter report filing. Watch where the debt ratio, 142.2% at end-June, moves within the company's 130-150% management target, and track the consolidated subsidiary count as a gauge of overseas restructuring progress.
Ramp-up of the Elwood center in the US and progress on the plan to begin Foreign Trade Zone designation procedures. Linked volumes with the Secaucus hub on the East Coast and any disclosure of new local contract logistics wins will indicate the global division's profit contribution.
Corporate parcel contract renewal season. Against the view that price increases would come only in the second half of 2027, how prices are set in renewed contracts will determine the direction of 2027 parcel margins.
Confirmation of full-year 2026 results and the dividend decision. The existing dividend policy covers fiscal years 2024-2026 and thus expires, so it is worth checking whether a new dividend and shareholder-return policy is presented and in what form, such as cash dividends or treasury share use.
CJ Logistics' recent results can be summed up as scale expanding while margins compress. From 2025 revenue of KRW 12,284.7bn and operating profit of KRW 508.1bn (4.1% margin), profit retreated versus 2024, and quarterly operating margins fell to around 3% with KRW 92.1bn in 1Q26 and KRW 101.6bn in 2Q26.
The causes are fairly clear: front-loaded investment tied to seven-day, dawn and same-day delivery expansion coincided with cost increases from external variables such as higher oil prices.
On the other side, volumes rose 12.1% year on year with dawn and same-day deliveries surging 65% and first-half unit costs fell 2.2%, so a path from scale to profit remains open.
The global division is being reshaped through entity clean-ups and a US and India focus, now joined by the Elwood center start-up, while the higher end-June debt ratio, bond maturities clustered from 2027 and a low payout ratio support the opposite argument.
Valuation sits at a discount to net assets, but whether that gap narrows depends on observable variables: the direction of pricing, the end of the investment cycle, and any change in return policy. This report is for information purposes only and contains no buy or sell recommendation or target price.
Report written 2026-09-05 · Data as of 2026-09-04
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