PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩550 per share · Prices as of the 2026-10-02 close
Holding company Kolon returned to profit in the second quarter of 2026 as its major subsidiaries improved in tandem, though the risk of large one-off losses like the one seen in the fourth quarter of 2025 has not disappeared.
Consolidated revenue reached KRW 1.7067 trillion and operating profit KRW 99.8 billion in Q2 2026, both up year-on-year, with net income turning positive.
Key affiliates including Kolon Industries (equity method), Kolon Global, and Kolon Mobility Group all contributed evenly to the improvement.
In full-year 2025 the company posted operating profit but a net loss attributable to owners, and over the most recent four quarters (Q3 2025–Q2 2026) that figure remains in loss territory.
Kolon Global is expanding non-housing and plant-related order intake, while Kolon Industries is preparing for growth in new materials such as aramid and mPPO.
The stock trades at a level well below book value per share, and periods of net loss have made price-to-earnings comparisons difficult to apply.
Kolon (002020) is the holding company of the Kolon Group under Korea's Fair Trade Act, engaging in decision-making on core business investments, subsidiary development support, licensing of the Kolon brand and other intellectual property, and market research and management advisory services.
Its consolidated subsidiaries include Kolon Global, Kolon Mobility Group, Kolon Benit, and Kolon TissueGene, while Kolon Industries and Kolon Life Science are equity-method affiliates whose results flow into net income rather than consolidated revenue.
This means Kolon Industries' sales are not added directly to Kolon's consolidated top line but affect net profit only through equity-method gains or losses.
Kolon Global operates construction (housing, non-housing, and plant) alongside a leisure and asset-management business merged last year, and is expanding its non-housing and plant-related weighting.
Kolon Mobility Group runs premium import car sales and used-car operations, and recently acquired an auction-house business to link new cars, used cars, after-sales service, and data.
Equity-method affiliate Kolon Industries runs industrial materials such as airbags, tire cord, and aramid, chemical products including petroleum resin, and fashion brands, serving as the group's core cash cow.
The portfolio also includes pharmaceutical and biotech affiliates such as Kolon Life Science and Kolon Pharma, as well as newer ventures like Kolon Spacewalks.
The holding company itself generates relatively little direct manufacturing or sales revenue beyond brand licensing and advisory fees, so its results are largely driven by the operating performance of its consolidated and equity-method affiliates.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩1.5T | ₩42.1B | 2.9% |
| 2025Q3 | ₩1.4T | ₩67.6B | 4.7% |
| 2025Q4 | ₩1.5T | -₩88.8B | −5.8% |
| 2026Q1 | ₩1.5T | ₩98.8B | 6.5% |
| 2026Q2 | ₩1.7T | ₩99.8B | 5.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩5.7T | ₩311B | ₩137.2B | 5.5% | 14.2% | 287.7% |
| 2023 | ₩5.9T | ₩102.9B | ₩8.6B | 1.7% | 0.8% | 299.2% |
| 2024 | ₩6T | -₩89.6B | ₩157.6B | −1.5% | 9.5% | 199.9% |
| 2025 | ₩5.9T | ₩60.5B | -₩158.5B | 1.0% | −8.5% | 207.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Annual results have swung significantly.
In 2022 revenue was KRW 5.6599 trillion with operating profit of KRW 311.0 billion (5.5% margin) and net income attributable to owners of KRW 137.2 billion, but in 2023, despite revenue rising to KRW 5.8942 trillion, operating profit fell to KRW 102.9 billion (1.7%) and owners' net income dropped sharply to KRW 8.6 billion.
In 2024 operating profit was a loss of KRW 89.6 billion, yet owners' net income was a profit of KRW 157.6 billion, illustrating how heavily non-operating items such as equity-method gains and one-off factors can swing the bottom line.
In 2025 revenue was KRW 5.8861 trillion with operating profit of KRW 60.5 billion (1.0%), returning to an operating profit, but owners' net income posted a large loss of KRW 158.5 billion.
On a quarterly basis, operating profit deteriorated sharply to a loss of KRW 88.8 billion and owners' net loss to KRW 111.7 billion in Q4 2025, before recovering to operating profit of KRW 98.8 billion and net income of KRW 13.6 billion in Q1 2026, and operating profit of KRW 99.8 billion and net income of KRW 21.3 billion in Q2 2026.
Kolon reported consolidated Q2 2026 revenue of KRW 1.7067 trillion, operating profit of KRW 99.8 billion, and net income of KRW 55.4 billion, with revenue up 13.5% and operating profit up 129.4% year-on-year.
Equity-method affiliate Kolon Industries posted standalone Q2 revenue of KRW 1.3565 trillion and operating profit of KRW 98.7 billion, up 7.8% and 118.0% respectively, with industrial materials, chemicals, and fashion all contributing evenly.
Consolidated subsidiary Kolon Global posted Q2 operating profit of KRW 52.2 billion, up 173.6% year-on-year, stabilizing its construction cost ratio at around 87.7%, while Kolon Mobility Group exceeded targets on expanded premium import and used-car sales.
Kolon's cumulative first-half 2026 results were revenue of KRW 3.2255 trillion and operating profit of KRW 198.6 billion, with a Q1 net loss of KRW 44.7 billion offset by a Q2 net profit of KRW 55.4 billion to leave a cumulative first-half net profit of KRW 10.7 billion.
However, the sum of owners' net income over the most recent four quarters (Q3 2025 through Q2 2026) remains a net loss, with volatility in non-operating items such as interest expense, equity-method losses, and real-estate project-financing write-downs cited as a factor that lowers the predictability of results.
As a pure holding company, Kolon's industry cycle exposure differs by affiliate. In the industrial materials and chemicals segment where Kolon Industries operates, global aramid demand is in a growth phase, with domestic players including Kolon, Hyosung, and Taekwang competitively expanding capacity.
South Korea's aramid production capacity is understood to account for a meaningful share of the global total, and Kolon Industries continues to expand aramid pulp capacity at its Gumi plant.
In tire cord, Kolon Industries and HS Hyosung Advanced Materials compete over next-generation products such as hybrid tire cord (HTC), with both companies focused on developing high-durability materials for electric vehicles.
In chemicals, demand is rising for mPPO, an insulating material used in AI semiconductor substrates (CCL), and Kolon Industries is expanding related production lines.
In construction, amid a continued slowdown in the housing market, opportunities in non-housing and plant projects are relatively more prominent, and Kolon Global is pursuing a strategy of reducing housing dependence by expanding this segment.
In auto retail, premium brand demand and used-car market growth are intertwined, and Kolon Mobility Group is building a business model spanning new to used cars through its acquisition of an auction-house operation.
Management has indicated it will continue affiliate-specific profitability improvement strategies in the second half.
Kolon Industries' manufacturing division plans to expand its weighting toward higher value-added industrial material products and consolidate core business capabilities, while its fashion division is expected to expand distribution channels and strategic product planning.
Kolon Global expects revenue from quality non-housing and plant projects such as a Korean Air engine maintenance facility and a Yongin semiconductor industrial complex to be recognized in full during the second half, pursuing stable profitability through continued cost-ratio improvement and selective order-taking.
Kolon Mobility Group plans to expand its sales and service infrastructure and leverage its recently acquired auction-house business to build out a mobility ecosystem linking new cars, used cars, after-sales service, and data.
Samsung Securities noted in a March 2026 report that Kolon Industries' operating profit had declined for four consecutive years since 2021, but suggested profit growth could resume in 2026 as tire cord profitability recovers, aramid losses narrow, and mPPO capacity expansion and improving petroleum resin supply-demand dynamics converge.
Kolon Industries has been pursuing an expansion that roughly doubles its aramid production capacity, and its long-loss-making film division is reportedly in spin-off or sale negotiations.
If this business restructuring is completed, profitability across the consolidated and equity-method affiliates could improve, though the timing and scale of execution remain undetermined.
Kolon's stock trades at a level well below its book value per share, meaning market capitalization sits at a considerable discount to total shareholders' equity.
However, with owners' net income posting a loss in 2025 and remaining in loss territory over the most recent four quarters, price-to-earnings comparisons are currently difficult to apply meaningfully.
This discount to net asset value has been a persistent feature over multiple years, which is generally interpreted as related to the holding-company discount whereby the market value of subsidiary stakes is not fully reflected in the parent's share price.
While results have shown a swing from loss to profit across several quarters, a recurrence of a large one-off loss such as the one seen in Q4 2025 could again swing annual figures significantly.
On dividends, the fact that a cash dividend was maintained even amid a 2025 net loss attributable to owners is worth noting from a shareholder-return perspective, though the sustainability of future dividends will likely depend on the stability of earnings recovery.
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 2026-08-21
In Q2 2026, Kolon Industries (equity method), Kolon Global, and Kolon Mobility Group all showed improved results, lifting consolidated operating profit and net income simultaneously.
The fact that affiliates across different industries such as industrial materials, chemicals, construction, and import auto retail improved at the same time provides a buffer against sector-specific risk. Cumulative first-half revenue and operating profit also showed solid growth.
Kolon Global secured KRW 985.4 billion in new orders in the non-housing segment including industrial and plant projects in the first half, reducing its dependence on housing.
Revenue from quality projects such as a Korean Air engine maintenance facility and a Yongin semiconductor industrial complex is expected to be recognized in the second half. Kolon Mobility Group has built a new growth driver by acquiring an auction-house business that links new cars, used cars, and after-sales service.
Kolon Industries has pursued an expansion roughly doubling its aramid production capacity and is increasing production lines in response to rising demand for mPPO materials used in AI semiconductor substrates. Tire cord has also shown improved operating profit as volumes with existing customers expand.
Growth in these new-material businesses could positively affect the holding company's net income through equity-method gains.
In 2025, despite a positive operating profit, owners' net income posted a loss of KRW 158.5 billion, and in Q4 2025 alone both operating profit and net income deteriorated sharply.
Analysts note that the size and timing of non-operating expenses such as interest costs, equity-method losses, and real-estate project-financing write-downs are difficult to predict. This volatility reduces the reliability of quarterly earnings estimates.
Kolon Global's construction segment improved its cost ratio to around 87.7%, but the housing market slowdown and potential real-estate project-financing risks remain a lingering burden.
Expansion in non-housing and plant segments is offsetting this, but a resurgence of housing-related risk could affect Kolon's consolidated results. Whether cost-ratio stabilization and selective order-taking can be sustained remains a key question.
Because Kolon Industries is an equity-method affiliate rather than a consolidated subsidiary, its sales are not directly reflected in Kolon's consolidated results and affect net income only through equity-method gains or losses.
The aramid segment is understood to have remained in loss until recently, and concerns about oversupply from aggressive Chinese capacity expansion persist. If the pace of improvement at equity-method affiliates lags expectations, the recovery in the holding company's net income could also be delayed.
The large deterioration in operating profit and net income in Q4 2025 shows that one-off factors can concentrate in a particular quarter.
If multiple items such as interest expense, equity-method losses, and real-estate project-financing write-downs are reflected simultaneously again, earnings volatility could rise once more. Investors reviewing quarterly results need to check for the presence of such one-off factors.
Since Kolon Global is a consolidated subsidiary that directly contributes to holding-company results, changes in the housing market and real-estate project-financing environment can directly affect Kolon's consolidated performance.
Expansion in non-housing and plant segments is diversifying this risk but has not eliminated it entirely. Delays in revenue recognition timing for large projects could cause quarterly result variability.
In the aramid and tire cord markets, competition for market share with rivals such as HS Hyosung Advanced Materials continues, and there are concerns about oversupply from Chinese capacity expansion.
Fluctuations in raw-material prices such as paraxylene (PX) and PET directly affect margins in the chemicals and industrial materials segments. These factors indirectly affect Kolon's net income through the performance of its equity-method affiliate, Kolon Industries.
At the estimated Q3 earnings release (based on the pattern of Q1 in May and Q2 in August), check whether improvement continues at Kolon Industries, Kolon Global, and Kolon Mobility Group, and whether non-operating volatility recurs.
Check whether revenue recognition for Kolon Global's large non-housing and plant projects, such as the Korean Air engine maintenance facility and Yongin semiconductor industrial complex, proceeds as planned.
Track the timing of narrowing losses or a return to profit in Kolon Industries' aramid segment, and whether the mPPO production line expansion is completed with any announcement of further investment.
Monitor progress on the reported spin-off or sale negotiations for Kolon Industries' film division, and if completed, its impact on the profitability structure of the consolidated and equity-method affiliates.
Kolon saw revenue, operating profit, and net income all rise year-on-year and turn positive in Q2 2026, driven by broad-based improvement across its subsidiaries.
However, owners' net income for full-year 2025 and over the most recent four quarters remains in loss territory, reflecting significant volatility in non-operating items such as interest expense, equity-method losses, and real-estate project-financing write-downs.
Expansion in Kolon Global's non-housing and plant order intake, growth in Kolon Mobility Group's import and used-car business, and new-material growth in Kolon Industries' aramid and mPPO businesses are cited as grounds for potential future improvement.
Conversely, housing and project-financing risk in construction, oversupply concerns in the aramid market, and the difficulty of forecasting results given dependence on an equity-method affiliate remain persistent weaknesses.
The stock trades at a level below book value per share, but with net income in loss, comparison through traditional valuation metrics remains limited for now. Whether one-off losses recur and whether improvement at key affiliates proves durable in coming quarters will be key variables to watch. This report is prepared for informational purposes and does not include a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.