PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩400 per share · Prices as of the 2026-10-02 close
After a large loss provision in Q4 2025, Kolon Global posted consecutive profitable quarters in H1 2026, but the trailing annual figure still shows a net loss.
FY2025 revenue was KRW 2,684.4bn with operating profit of just KRW 3.65bn, while the owners' net loss reached KRW 191.2bn, largely due to a Q4 big-bath provision.
Operating and net profit turned positive for two consecutive quarters in H1 2026, with Q2 operating profit rising 173.6% year-on-year to KRW 52.2bn.
The trailing four-quarter (2025Q3-2026Q2) sum of owners' net profit remains negative at about KRW -92.7bn, reflecting the lingering base effect of the Q4 2025 loss.
The company has set 2026 management targets of KRW 3.1tn in revenue, KRW 120bn in operating profit, and KRW 4.5tn in new orders.
The debt ratio has declined from 403.0% in 2022 to 332.3% in 2025, but leverage remains high at over 300%.
Kolon Global operates as a diversified company built around three pillars: construction (civil works, buildings, housing), trading, and leisure/asset management (AM). The construction segment centers on civil engineering, building, and housing, and the company holds brands such as Hanulchae, Lindengrove, and Polis.
The company previously operated an auto distribution business, but this was spun off in January 2023 into a separate entity, Kolon Mobility Group, so auto sales are no longer part of Kolon Global's consolidated revenue.
At the end of 2025, Kolon Global absorbed MOD, a golf/resort/hotel operator, and Kolon LSI, an asset management specialist, adding leisure and AM as a new business pillar.
Q2 leisure and AM segment revenue rose 304.2% year-on-year to KRW 85.7bn, reflecting peak-season effects at hotels, resorts and golf courses along with merger synergies.
The construction segment has been increasing its share of non-housing, industrial and plant projects, including an engine maintenance facility for Korean Air, a research facility for Tokyo Electron Korea, and an ADC DP expansion for Samsung Electronics.
The company also holds the largest domestic track record in onshore wind power and is expanding into offshore wind and hydrogen production as growth areas. The trading segment handles imports and exports of steel and chemical materials, creating network synergies with the construction business.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩734.4B | ₩19.1B | 2.6% |
| 2025Q3 | ₩607.4B | ₩27.7B | 4.6% |
| 2025Q4 | ₩698.6B | -₩52.7B | −7.5% |
| 2026Q1 | ₩631.2B | ₩22B | 3.5% |
| 2026Q2 | ₩750.5B | ₩52.2B | 7.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2.6T | ₩166.7B | ₩145.5B | 6.4% | 25.7% | 403.0% |
| 2023 | ₩2.7T | ₩12.8B | ₩300M | 0.5% | 0.1% | 364.3% |
| 2024 | ₩2.9T | -₩56.7B | ₩24.1B | −1.9% | 4.0% | 356.4% |
| 2025 | ₩2.7T | ₩3.7B | -₩191.2B | 0.1% | −27.5% | 332.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Full-year 2025 revenue was KRW 2,684.4bn, down from KRW 2,912.0bn in 2024, while operating profit was a mere KRW 3.65bn (an operating margin of 0.1%).
The owners' net loss widened sharply to KRW 191.2bn, reversing from a KRW 24.1bn profit in 2024, driven by a lump-sum provision in Q4 for potential losses at four sites: Daejeon Seonhwa 3-cha and Bongmyeong, Incheon Songdo, and the Gwangju Docheok logistics center.
Indeed, the Q4 2025 operating loss reached KRW 52.7bn and the owners' net loss KRW 149.6bn, meaning most of the annual loss was concentrated in that single quarter.
By contrast, Q3 2025 was solid with revenue of KRW 607.4bn, operating profit of KRW 27.7bn, and net profit of KRW 12.8bn, and profitability continued into 2026 with Q1 operating profit of KRW 22.0bn and net profit of KRW 11.5bn, followed by Q2 operating profit of KRW 52.2bn and net profit of KRW 32.6bn.
Q2 operating profit rose 173.6% year-on-year, driven primarily by a 1.9 percentage point improvement in the construction segment's cost ratio to 87.7%.
Still, the trailing four-quarter (2025Q3-2026Q2) sum of owners' net profit remains at KRW -92.7bn, indicating the base effect from the large Q4 loss has not been fully worked off. Operating cash flow turned positive to KRW +72.4bn in 2025 from KRW -213.3bn in 2024, a notable improvement in cash generation.
Looking further back, 2022 delivered a strong 6.4% operating margin and KRW 145.5bn in owners' net profit, so the multi-year trajectory shows a swing from downturn toward a recovery attempt.
Korea's construction industry faces a dual landscape: housing pre-sale demand remains sluggish and project-financing (PF) risk concerns persist, while orders in industrial and plant segments such as semiconductors, data centers, logistics and defense have held up relatively well.
Kolon Global has reshaped its portfolio to reduce housing concentration risk, with non-housing orders accounting for more than half of its KRW 3,057.2bn in new orders in 2025, at KRW 1,658.6bn.
In H1 2026, the company continued to secure new orders worth KRW 985.4bn, centered on non-housing and industrial projects such as an integrated water supply project for the Yongin semiconductor industrial complex (KRW 126.5bn) and a Kumho Tire manufacturing plant (KRW 39.9bn).
Large domestic peers are similarly pursuing cost-ratio improvement and PF risk management, aligning with an industry-wide shift toward profitability-focused, selective order-taking.
In renewable energy, Kolon Global holds the largest domestic track record in onshore wind and is expanding into offshore wind and hydrogen production, positioning itself to benefit from government energy-transition policy.
The leisure and asset management segment is seen as a buffer against construction-cycle volatility, given its ability to generate steady monthly cash flow independent of the building cycle.
The company has set 2026 targets of KRW 4.5tn in new orders, KRW 3.1tn in revenue and KRW 120bn in operating profit, explaining that the risk provisions taken in the late-2025 big bath have created a structure in which 2026 revenue should flow through more directly to profit.
H1 new orders of KRW 985.4bn represent roughly 22% of the annual target, while cumulative H1 operating profit of KRW 74.2bn represents about 62% of the KRW 120bn annual goal, putting progress ahead of a straight-line pace.
For H2, the company says revenue recognition will accelerate on existing order backlogs such as the Korean Air engine maintenance facility and the Yongin semiconductor industrial complex project.
The leisure and AM segment, in its first full year after the merger, is targeting stable operating revenue of about KRW 280bn in sales and KRW 20bn in operating profit for 2026. Management has also said it will continue pursuing shareholder value initiatives including dividend expansion.
These remain company-set guidance figures, however, and H2 cost-ratio management and the risk of additional costs at large sites remain key variables for whether the targets are met.
Kolon Global tends to trade at a level below its book value per share, reflecting a discount to net asset value. However, because trailing four-quarter net profit remains in loss territory, conventional earnings-based multiple comparisons are difficult to apply meaningfully at this time.
In periods like 2022, when the operating margin recovered to around 6% and net profit was reliably positive, earnings-based valuation discussion was more feasible, but the 2023-2025 stretch alternated between losses and modest profits, making it hard to anchor a multiple.
On the dividend side, the company has indicated plans to expand distributions, but the current dividend yield is understood to run below the construction sector average.
Ultimately, whether the current valuation gap to book value narrows or widens will likely hinge on how durable the recent earnings normalization proves to be.
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 2026-08-23
Both Q1 and Q2 of 2026 posted operating and net profits, with Q2 operating profit rising 173.6% year-on-year to KRW 52.2bn. The construction segment's cost ratio improved 1.9 percentage points to 87.7%, providing a basis for the profitability recovery. Cumulative H1 operating profit already exceeds half of the annual guidance.
Non-housing orders exceeded half of new orders in 2025, and in H1 2026 the company continued to win industrial and plant projects such as a semiconductor industrial complex and a tire manufacturing plant. This reflects a structural shift to reduce exposure to the housing pre-sale cycle.
Projects with quality clients such as Korean Air, Tokyo Electron Korea, and Samsung Electronics help stabilize revenue.
The newly formed leisure and AM segment, created via the year-end 2025 merger with MOD and Kolon LSI, saw Q2 revenue rise 304.2% year-on-year and operating profit rise 610.5%. Its ability to generate steady monthly cash flow independent of the construction cycle could help smooth earnings volatility. The company expects stable annual operating income from this segment.
Due to the base effect of the large Q4 2025 loss, the sum of owners' net profit for 2025Q3-2026Q2 remains at KRW -92.7bn. Despite two consecutive profitable quarters, the annual figure has not yet fully offset the loss. Whether earnings normalization is firmly established will require confirmation from further quarterly results.
The debt ratio stood at 332.3% at the end of 2025, an improvement from 403.0% in 2022 but still above 300%. PF-related contingent liabilities and interest expenses, typical of the construction industry, are cited as factors amplifying earnings volatility.
In Q1 2026, the company posted operating profit but still recorded a net loss due to non-operating factors such as equity-method losses.
The 2026 targets of KRW 3.1tn in revenue and KRW 120bn in operating profit are company-set guidance, and favorable H1 progress does not guarantee achievement through H2. The possibility of new risk sites emerging beyond the previously loss-affected Daejeon, Incheon, and Gwangju sites cannot be ruled out.
Quarterly results can vary significantly due to the seasonality and completion-timing patterns typical of the construction industry.
The company carries a highly leveraged structure with a debt ratio above 300%, and in Q4 2025 it recognized lump-sum PF-related potential losses at specific sites. If the real estate market recovery is delayed, the possibility of similar additional cost recognition cannot be ruled out. Changes in funding rates directly affect the interest expense burden.
Non-operating factors such as equity-method losses and derivative valuation gains/losses have repeatedly caused large swings in quarterly net profit. In Q1 2026, the company posted a net loss despite operating profit being positive, due to such factors.
There is a possibility that operating performance improvements may not translate directly into net profit improvements.
Housing pre-sale conditions, government real estate policy, and raw material and labor cost changes directly affect construction profitability.
Although risk has been diversified through greater non-housing and industrial plant orders, the company remains exposed to shifts in investment plans by specific clients such as semiconductor and defense sectors.
New businesses such as offshore wind may see their progress pace affected by permitting and regulatory schedules.
Q3 2026 earnings are due to be released, and it will be important to check whether the H1 cost-ratio improvement and profitable trend continue, along with progress against the annual guidance of KRW 3.1tn revenue and KRW 120bn operating profit.
It will be worth confirming whether additional costs recur at the sites that caused the large Q4 2025 loss—Daejeon Seonhwa 3-cha and Bongmyeong, Incheon Songdo, and the Gwangju Docheok logistics center.
Progress toward the annual new-order target of KRW 4.5tn and whether the non-housing/industrial plant share continues to expand should be monitored.
Progress on permitting, construction start, and equity investment participation should be checked to see whether this new business pillar is gaining concrete substance.
It should be checked whether management's stated dividend-expansion policy translates into an actual board resolution, and at what scale.
Kolon Global has continued its attempt at earnings normalization, posting two consecutive quarters of operating and net profit in H1 2026 following a large loss provision, or 'big bath,' recognized in Q4 2025.
Improved cost ratios in construction, diversification of orders toward non-housing and industrial plant projects, and merger synergies in the leisure and asset management segment appear to be the main drivers of the recent improvement.
However, on a trailing four-quarter basis (2025Q3-2026Q2), the company still shows an owners' net loss, and a debt ratio above 300% along with volatile non-operating items remain structural burdens.
The company's 2026 targets of KRW 3.1tn in revenue and KRW 120bn in operating profit look achievable based on H1 progress alone, but H2 cost-ratio management and the absence of new risk sites will determine the outcome.
The stock tends to trade at a discount to book value, and how this gap evolves alongside the durability of the earnings recovery will be a key point to watch going forward.
Investment decisions should be based on each reader's own analysis and risk tolerance, and this report 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.