PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩145 per share · Prices as of the 2026-10-02 close
Dongkuk Industries' traditional cold-rolled and color-coated steel business is showing gradual improvement, while mass production of its new nickel-plated steel venture remains delayed amid slow battery demand, leaving wind-tower subsidiary Dongkuk S&C's orders to cushion group earnings.
2025 consolidated revenue was KRW 727.8 billion with operating profit of KRW 7.0 billion (1.0% margin), staying out of 2023's operating loss zone but down from KRW 12.0 billion a year earlier.
Quarterly operating losses narrowed through 2026, from about -KRW 4.6 billion in Q1 to about -KRW 0.9 billion in Q2.
The new nickel-plated steel business (brand DIKEL), whose Pohang plant was completed in September 2024, still has no fixed timeline for mass production or revenue recognition amid a cylindrical-battery demand chasm.
Subsidiary Dongkuk S&C signed a roughly KRW 31.6 billion wind-tower supply contract with Vestas in June 2026, continuing its order flow into the U.S. market.
Rising financial leverage tied to nickel-plated steel capex is a variable to watch alongside the pace of any earnings recovery.
Dongkuk Industries is a steel processor focused on cold-rolled and color-coated steel, with particular competitiveness in high-carbon cold-rolled steel for automotive use.
By segment, cold-rolled steel accounted for roughly 49% of revenue and color-coated steel about 30%, together approaching 80%, while renewable energy and construction stood at roughly 12% and 9%, respectively.
The cold-rolled specialty steel business derives 70-80% of sales from the finished-vehicle market, so results track domestic and overseas auto production cycles. Color-coated steel is produced and supplied through subsidiary DK Dongshin.
The renewable energy and construction segment is run by 49.99%-owned subsidiary Dongkuk S&C, whose core businesses are wind-tower manufacturing and wind-farm construction.
Dongkuk S&C counts GE, Vestas and Nordex-Acciona among its global wind-turbine clients, with exports overwhelmingly concentrated in the United States.
As part of diversification, the company has invested in nickel-plated steel (brand DIKEL) for cylindrical battery cases and in ferro-tungsten for defense and precision machinery.
The nickel-plated steel plant in Pohang, completed in September 2024, has annual capacity of 80,000 tons, with plans to expand to 130,000 tons depending on demand. The tungsten business proceeds through the acquired Gyeongju plant of Voltec Korea, formerly the sole domestic ferro-tungsten producer.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩195.5B | ₩5.6B | 2.9% |
| 2025Q3 | ₩175.9B | -₩5B | −2.8% |
| 2025Q4 | ₩151.8B | -₩3.3B | −2.2% |
| 2026Q1 | ₩167B | -₩4.6B | −2.7% |
| 2026Q2 | ₩163.4B | -₩900M | −0.5% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩860.5B | ₩1.2B | ₩6.5B | 0.1% | 1.6% | 57.8% |
| 2023 | ₩757B | -₩27.1B | -₩5.1B | −3.6% | −1.3% | 69.9% |
| 2024 | ₩790.3B | ₩12B | -₩6.3B | 1.5% | −1.6% | 93.1% |
| 2025 | ₩727.8B | ₩7B | -₩10B | 1.0% | −2.7% | 85.1% |
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
Consolidated revenue moved mostly lower over the past four years, from KRW 860.5 billion in 2022 to KRW 757.0 billion in 2023, KRW 790.3 billion in 2024, and KRW 727.8 billion in 2025.
Operating profit swung to a loss of KRW 27.1 billion in 2023 before returning to profit at KRW 12.0 billion in 2024 and KRW 7.0 billion in 2025. Still, the 2025 operating margin of 1.0% was lower than 2024's 1.5%, indicating a modest deterioration in earnings quality.
Net income attributable to owners went from a KRW 6.5 billion profit in 2022 to losses of KRW 5.1 billion in 2023, KRW 6.3 billion in 2024 and KRW 10.0 billion in 2025, marking three straight years of losses that have widened over time.
This suggests non-operating factors such as depreciation burdens dragged the bottom line below the operating-profit line even in years with an operating surplus.
By quarter, operating losses of about KRW 5.0 billion in Q3 2025 and KRW 3.3 billion in Q4 2025 widened to about KRW 4.6 billion in Q1 2026 before narrowing to roughly KRW 0.9 billion in Q2 2026.
Owners' net losses also eased from about KRW 8.3 billion in Q1 2026 to about KRW 4.4 billion in Q2 2026, though the company has yet to return to net profit.
On the cash-flow side, 2025 operating cash flow improved sharply to KRW 90.1 billion from -KRW 18.6 billion in 2024, while consolidated depreciation rose 22% year-on-year in the third quarter of 2025, with the nickel-plated steel facility accounting for most of the increase.
The domestic cold-rolled steel market tracks finished-vehicle and appliance demand, so a gradual recovery in auto production cycles feeds through to results.
The battery-grade nickel-plated steel market is currently a de facto monopoly of TCC Steel, the only domestic mass producer, and industry watchers expect the supply landscape to diversify once Dongkuk Industries enters.
LS Securities estimated that nickel-plated steel demand from major cylindrical-battery makers including LG Energy Solution, Samsung SDI, Tesla and Panasonic would grow from 338,000 tons in 2025 to 707,000 tons by 2030.
However, an EV demand chasm that has slowed sales growth beyond earlier expectations makes the timing of any demand recovery uncertain.
In wind power, the Ministry of Trade, Industry and Energy has set an 18.3GW capacity target by 2030 and created a fixed- and floating-platform offshore wind competitive-bidding framework to expand the market.
The global offshore wind market is projected to grow from USD 55.6 billion in 2025 to USD 62.6 billion in 2026 and USD 206.1 billion by 2035. Because Dongkuk S&C's exports are overwhelmingly concentrated in the United States, its results are sensitive to changes in U.S. tariff and trade policy.
Since the Pohang plant's completion in September 2024, nickel-plated steel operations have continued quality testing with domestic and overseas battery-cell makers, with no formal timeline yet set for mass production or revenue recognition.
Some in the industry expect the timing of order-driven production to become clearer only after the demand chasm eases in the first half of 2026. Depreciation increases during this period are pressuring profitability, and the company has focused on improving wind-segment profitability to offset the impact.
Dongkuk S&C signed a roughly KRW 31.6 billion wind-tower supply contract with Vestas Manufacturing A/S in June 2026, with final delivery scheduled for April 2027. The contract size equals about 26.3% of Dongkuk S&C's prior-year consolidated revenue, a level that could meaningfully affect future results.
Dongkuk S&C temporarily halted production late last year to cut costs, and the company said first-half 2026 revenue would decline somewhat as a result while profitability improves.
The ferro-tungsten business targets defense and precision-machinery demand, though the pace of its market expansion is not yet clearly confirmed by disclosed figures.
Dongkuk Industries has shown a pattern in recent years of operating profit coexisting with net losses attributable to owners, making it difficult to discuss value through traditional net-income-based earnings multiples.
The share price tends to trade below net asset value, suggesting the market applies a discount to book value reflecting new-business uncertainty and continued net losses. Dividends have continued despite net losses, making their sustainability and funding source a point investors are watching.
How the profit structure evolves once nickel-plated steel production ramps up and wind-segment orders continue is likely to be a key variable for future valuation. For now, however, the timing of new-business monetization remains uncertain, a setting in which market views could diverge.
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
Quarterly results have improved, with the operating loss narrowing from about KRW 4.6 billion in Q1 2026 to about KRW 0.9 billion in Q2. Full-year 2025 consolidated operating profit of KRW 7.0 billion also kept the company out of 2023's large operating-loss zone. Operating cash flow improved sharply to KRW 90.1 billion in 2025, supporting cash generation.
Subsidiary Dongkuk S&C continued winning U.S. orders, signing a roughly KRW 31.6 billion wind-tower contract with Vestas in June 2026. The deal equals about 26.3% of Dongkuk S&C's prior-year revenue, a scale that could meaningfully affect results.
Government policy, including expanded offshore wind bidding and an 18.3GW 2030 capacity target, provides a supportive backdrop.
LS Securities estimated cylindrical-battery makers' nickel-plated steel demand would grow from 338,000 tons in 2025 to 707,000 tons in 2030. Dongkuk Industries' entry could diversify a supply landscape currently dominated by TCC Steel. Once the demand chasm eases, its early capacity investment has potential to translate into results.
Even after the plant's completion in September 2024, mass production and revenue recognition keep being pushed back amid a cylindrical-battery demand chasm. Industry observers say the timing of order-based production may only become clear after the first half of 2026, leaving uncertainty in place. Fixed costs such as depreciation continue to accrue during this period.
Debt dependency and the debt ratio have risen as the company invested in new businesses such as nickel-plated steel. Consolidated depreciation increased 22% year-on-year in Q3 2025. If new-business monetization is delayed further, financial burdens could persist.
Net income attributable to owners has posted three straight years of losses from 2023 through 2025 after a 2022 profit, with the loss size widening. Both Q1 and Q2 of 2026 also remained in net-loss territory. Even as operating profit improved, non-operating factors have continued to drag down the bottom line.
With financial leverage elevated by large-scale investment in nickel-plated steel, a delay in new-business monetization could keep interest and depreciation burdens elevated. The capacity to manage the balance sheet could also affect the pace of any earnings recovery.
As a latecomer to a nickel-plated steel market that includes established player TCC Steel and active overseas producers, Dongkuk Industries could face pricing competition. If cylindrical-battery demand growth is slower than expected, an oversupply phase could persist longer.
Because Dongkuk S&C's wind-tower revenue is overwhelmingly exposed to the United States, results could be significantly affected by changes in U.S. tariff and trade policy. Raw material prices (nickel, steel) and currency volatility are also variables that could affect costs and profitability.
The Q3 2026 quarterly report filing will confirm actual revenue and operating results, and whether nickel-plated steel revenue has begun to be recognized.
Whether battery-cell makers complete quality certification and any new supply contracts are signed for nickel-plated steel will be key indicators of when the new business could start generating revenue.
Progress on Dongkuk S&C's Vestas contract (final delivery due April 2027) and results of any additional offshore wind competitive bidding should be tracked to gauge wind-segment order momentum.
The 2026 annual audit report filing will show whether full-year revenue, operating profit and net income attributable to owners have returned to positive territory.
Dongkuk Industries' traditional cold-rolled and color-coated steel business is showing gradual improvement, while its new nickel-plated steel venture continues to see production timelines slip amid a cylindrical-battery demand chasm.
Consolidated operating profit stayed positive at KRW 7.0 billion in 2025, but net income attributable to owners posted a third straight year of losses, with the loss size widening.
The narrowing of quarterly operating losses through 2026 is encouraging, but depreciation tied to the nickel-plated steel facility continues to constrain profits.
Subsidiary Dongkuk S&C is cushioning group results through supply contracts with global wind-turbine makers such as Vestas, and government offshore-wind expansion policy provides a supportive backdrop.
Still, the timing of nickel-plated steel monetization, the actual pace of cylindrical-battery market growth, and management of financial leverage remain sources of uncertainty.
Investors will want to watch the Q3 earnings release, news on nickel-plated steel quality certification and orders, and further order flow at Dongkuk S&C.
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.