PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩70 per share · Prices as of the 2026-10-02 close
TCC Steel returned to operating profit in Q2 2026 after five consecutive quarterly losses following its nickel-plated steel capacity expansion, yet its owner-attributable net loss widened, leaving operating and non-operating trends diverging.
FY2025 consolidated revenue was KRW 611.5bn with an operating loss of KRW 10.9bn and an owner net loss of KRW 7.4bn
Q2 2026 revenue reached KRW 182.7bn with operating profit of KRW 1.17bn, ending five straight quarters of operating losses
The company is the sole domestic producer of nickel-plated steel for cylindrical battery cans, supplied to processors serving LG Energy Solution and Samsung SDI
Line 4 completion in August 2023 lifted nickel-plated steel capacity from 70,000 to 200,000 tons, making utilization recovery a key variable
Tin-plated steel faces intensifying competition from Chinese and Japanese entrants in Southeast Asia, while US steel tariffs pressure export conditions
TCC Steel was founded in 1959 and listed on the KOSPI in 1984 as a specialized surface-treated steel manufacturer.
Its core products are tin-plated steel and electrolytic chromium-coated steel used in food and industrial packaging cans, alongside nickel-plated, copper-plated, laminated, and super-tin steel used in electronics and secondary batteries.
In 2001 the company became the first in Korea to develop nickel-plated steel, and in 2009 it made its first deliveries to LG Chem (now LG Energy Solution) and Samsung SDI, entering the cylindrical battery case material market.
This nickel-plated steel is supplied through partner processors to LG Energy Solution and Samsung SDI, giving the company an effectively monopolistic position domestically. In August 2023, the company completed a dedicated Line 4 for nickel-plated steel, expanding annual capacity from 70,000 to about 200,000 tons.
Meanwhile, the tin-plated steel business, the foundation of its can materials segment, faces intensifying competition as Chinese and Japanese producers expand into emerging markets such as Southeast Asia.
Can materials such as tin-plated and electrolytic chromium-coated steel still account for the larger share of revenue, though the nickel-plated steel segment for batteries continues to gradually expand its share.
More recently, higher US steel tariffs have weighed on export conditions, prompting the company to pursue emerging-market sales expansion and a higher share of direct exports.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩155.4B | -₩3.4B | −2.2% |
| 2025Q3 | ₩148.6B | -₩5.4B | −3.7% |
| 2025Q4 | ₩151.8B | -₩3.9B | −2.6% |
| 2026Q1 | ₩174.7B | -₩4B | −2.3% |
| 2026Q2 | ₩182.7B | ₩1.2B | 0.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩684.4B | ₩44B | ₩29.3B | 6.4% | 14.4% | 143.0% |
| 2023 | ₩624.4B | ₩11.3B | -₩7.8B | 1.8% | −3.4% | 138.1% |
| 2024 | ₩582.1B | ₩12.3B | ₩20.2B | 2.1% | 7.9% | 121.6% |
| 2025 | ₩611.5B | -₩10.9B | -₩7.4B | −1.8% | −3.0% | 130.7% |
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
FY2025 consolidated revenue rose to KRW 611.5bn from KRW 582.1bn in 2024, but operating profit swung to a loss of KRW 10.9bn, reversing the KRW 12.3bn operating profit posted in 2024. Owner-attributable net income also flipped from a KRW 20.2bn profit in 2024 to a KRW 7.4bn loss in 2025.
The operating margin trended downward from 6.4% in 2022 to 1.8% in 2023, 2.1% in 2024, and -1.8% in 2025.
On a quarterly basis, the company posted five consecutive operating losses from Q2 2025 through Q1 2026 (KRW -3.37bn, -5.45bn, -3.91bn, and -3.98bn, respectively), before returning to operating profit in Q2 2026 with revenue of KRW 182.7bn and operating profit of KRW 1.17bn.
However, the owner-attributable net loss widened to KRW -6.02bn in that same quarter, suggesting that operating-line improvement and separate non-operating factors moved in opposite directions.
This points to nickel-plated steel utilization recovery and price defense in can materials supporting the operating line, while other factors weighed on the bottom line.
Notably, operating cash flow improved steadily despite weak earnings, moving from KRW -12.0bn in 2022 to KRW 5.8bn in 2023, KRW 17.9bn in 2024, and KRW 25.0bn in 2025. The debt ratio eased slightly from 143.0% in 2022 to 130.7% in 2025 but remains elevated.
TCC Steel's business rests on two pillars: traditional can materials (tin-plated and electrolytic chromium-coated steel) and its growth driver, nickel-plated steel for battery casings.
The can materials market is a stable business tied to food and beverage packaging demand, but competition on price and volume is intensifying as Chinese and Japanese producers expand into emerging markets such as Southeast Asia.
Nickel-plated steel demand is directly linked to the cylindrical battery cycle, particularly Tesla's 4680 battery ramp, and the company maintains an effectively monopolistic domestic supply position.
A 2025 DB Securities research note estimated nickel-plated steel utilization at 20-30% against the 200,000-ton capacity base, and noted that automakers including Rivian and Mercedes-Benz were also planning to adopt 46-series cylindrical cells.
The same analysis suggested that full-scale operation of LG Energy Solution's 16GWh Arizona plant could add further demand for nickel-plated steel.
That said, these were analyst estimates from early 2025, and the actual pace of utilization recovery will depend on the production schedules of automakers and battery makers downstream.
Meanwhile, higher US steel tariffs continue to weigh on export channels broadly, and the company has responded by expanding sales in emerging markets and increasing its direct export share.
The company's near-term earnings trajectory will largely hinge on how quickly utilization recovers at the 200,000-ton nickel-plated steel capacity completed in 2023.
The return to operating profit in Q2 2026 can be read as an early signal of that recovery, but the widening net loss in the same quarter shows the process is not yet fully normalized.
In can materials, the company continues to expand emerging-market exports and raise its direct export share to counter US tariffs and heightened competition.
On financing, in May 2026 the company issued KRW 21 billion in 42nd-series interest-free private convertible bonds, with participation from private equity funds advised by Samsung Securities and NH Investment & Securities, likely aimed at bolstering investment or working capital.
Dividend policy was maintained despite weak earnings, with the March 2026 annual general meeting approving a KRW 70 per-share cash dividend for fiscal year 2025 (the 68th term).
Key items to watch going forward include quarterly trends in nickel-plated steel shipments and utilization, the production schedules of cylindrical battery customers including Tesla, and whether new automakers adopt the 46-series format.
While earnings are showing early signs of turning from loss to profit, the trailing four quarters still sit in net-loss territory, making price-to-earnings multiples less meaningful at this stage.
The price-to-book ratio sits at a premium to net asset value, which can be read as partly reflecting growth expectations tied to the battery materials business. The dividend yield, while the company has maintained a track record of steady payouts, appears to run below the steel sector average.
Historically, the stock's valuation band has widened considerably during periods when its secondary battery materials story drew market attention, making it useful to consider where current multiples sit within that historical range.
Ultimately, valuation appears to hinge on how much of the nickel-plated steel utilization recovery translates into an actual, sustained improvement in profitability.
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
Q2 2026 marked a return to operating profit after five consecutive quarterly losses, which can be read as a combination of nickel-plated steel volume recovery and price defense in can materials. With 200,000 tons of capacity already built, the company can scale volume without additional capex if demand recovers. As this is an early-stage recovery, confirming the trend over subsequent quarters will be important.
TCC Steel is the sole domestic producer of nickel-plated steel, supplying processors that serve LG Energy Solution and Samsung SDI. Analysis has suggested that if the 46-series format spreads further, new customers such as Rivian and Mercedes-Benz could emerge beyond Tesla. This monopolistic supply chain position could function as a barrier to entry.
Even during recent years of weak operating profit, operating cash flow steadily improved, reaching KRW 25.0bn in 2025. This suggests underlying cash generation, likely tied to inventory and receivables management, held up better than income statement metrics. If profit recovery follows, this cash flow improvement trend could become more pronounced.
With tin-plated and electrolytic chromium-coated steel accounting for a large share of revenue, expanding entry by Chinese and Japanese producers into emerging markets such as Southeast Asia is pressuring both prices and volumes. This is a structural factor making it harder to defend profitability in the can materials segment.
While Q2 2026 operating profit turned positive, the owner-attributable net loss actually widened. The fact that operating-line improvement has not translated directly into bottom-line improvement is something investors need to watch closely. The nature and persistence of non-operating factors warrant further confirmation.
Although the debt ratio improved somewhat to 130.7% in 2025, it remains at an elevated level. Combined with the burden that higher US steel tariffs place on export channels overall, the company faces both financial structure risk and trade policy risk simultaneously.
Nickel-plated steel demand depends heavily on cylindrical battery production, particularly the 46-series battery output and sales schedules of automakers including Tesla. If EV sales growth slows more than expected, capacity utilization recovery could be delayed. This remains one of the largest variables for company earnings.
The company issued KRW 21 billion in 42nd-series private convertible bonds in May 2026, and future conversion requests could result in equity dilution. The company has a history of raising funds through similar private convertible bond issuances. Conversion terms and timing warrant ongoing monitoring.
Higher US steel tariffs continue to weigh on export volumes and channel composition. The company is responding by expanding emerging-market sales and raising its direct export share, but trade policy shifts remain an external variable beyond the company's control.
The Q3 2026 quarterly report filing will show whether nickel-plated steel utilization recovery and the return to operating profit are continuing.
Progress on the ramp-up of LG Energy Solution's Arizona plant in the US and trends in Tesla's 4680 battery production and sales should be monitored.
Whether and how quickly new automakers such as Rivian and Mercedes-Benz adopt 46-series cylindrical cells should be confirmed.
The dividend resolution at the 69th (fiscal 2026) annual general meeting will indicate whether the dividend policy remains consistent.
Disclosures should be checked for whether conversion requests begin on the 42nd-series convertible bonds issued in May 2026, and the resulting scale of equity dilution.
TCC Steel operates a distinctive combination of traditional can materials and battery-related nickel-plated steel businesses.
Fiscal 2025 was a weak year, with revenue growth accompanied by both an operating loss and a net loss, but the return to operating profit in Q2 2026 after five consecutive quarterly losses marks a notable shift.
However, the widening net loss in the same quarter shows that operating-line improvement has not yet translated into full earnings normalization.
Intensifying competition in emerging can-material markets, US steel tariffs, and potential equity dilution from convertible bond issuance are factors that warrant continued attention.
Conversely, the expanded 200,000-ton nickel-plated steel capacity and the company's monopolistic supply position in the cylindrical battery market represent potential leverage points if demand recovers.
Key items to watch going forward will be the pace of quarterly improvement in nickel-plated steel utilization and whether operating-line gains eventually flow through to net income.
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.