PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩180 per share · Prices as of the 2026-10-02 close
Eugene Corp, the leading domestic ready-mixed concrete and building materials company, has maintained quarterly operating profit in the black, but non-operating items such as equity-method gains and losses from affiliates have driven large swings in net income each quarter.
2025 annual operating profit came to KRW 32.4 billion (operating margin 2.4%), down from KRW 55.0 billion (3.9%) a year earlier, though the company has kept operating profit positive for four consecutive years.
Net income attributable to owners swung sharply on a quarterly basis, from a large loss of about KRW -141.0 billion in Q4 2025 to a swing back to roughly KRW 65.5 billion in Q1 2026.
The main driver of the 2024 net loss was an impairment charge tied to the YTN equity investment, and similar non-operating swing factors appear to have continued influencing results since then.
A June 2026 strike by the ready-mixed concrete transport union in the greater Seoul area disrupted the supply chain, a factor that could affect upcoming quarterly results.
The price-to-book ratio trades at a substantial discount to net asset value, and the company has a history of paying dividends.
Eugene Corp's core business is the manufacturing and sale of ready-mixed concrete, and it is regarded as the leading domestic company in ready-mixed concrete and basic building materials.
The company operates a nationwide network of remicon plants and distribution channels; because remicon must reach construction sites within a short window after production, the industry is inherently regional, with utilization rates structurally lower than in general manufacturing due to made-to-order production.
In 2013 the company entered building materials distribution, expanding into a comprehensive network covering rebar, structural steel, piles, cement, dry mortar, insulation and boards, as well as tile, sanitary ware, windows and paint.
Through network synergies with affiliate Dongyang, the company offers one-stop material supply, and it also holds upstream raw-material assets such as a sand business site in Incheon and quarries in Paju and Gongju.
Eugene Corp holds roughly a 29.86% stake in Dongyang and, through the special-purpose entity Eugene ENT, has secured a stake in YTN, extending its portfolio into media and affiliate investments.
The domestic remicon market is contested by rivals including Samhpyo Industries, Aju Industries, Ssangyong Remicon, Sungshin Remicon and Chunma Concrete, and major remicon players have recently been visibly diversifying into real estate development, hotel operations and media as new growth engines.
The building materials distribution business serves a broad customer base from large plant sites to small and mid-sized construction sites, partially cushioning the cyclicality of the core remicon business.
As a result, Eugene Corp's business structure has a dual character: one axis directly exposed to the construction cycle through remicon and building materials manufacturing and distribution, and another axis where equity-method gains and losses from affiliate investments such as Dongyang and YTN also weigh on reported results.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩347.6B | ₩11B | 3.2% |
| 2025Q3 | ₩320.2B | ₩7.4B | 2.3% |
| 2025Q4 | ₩381.4B | ₩22.9B | 6.0% |
| 2026Q1 | ₩335.5B | ₩11.8B | 3.5% |
| 2026Q2 | ₩368.3B | ₩14.2B | 3.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩54.7B | ₩28.6B | 3.9% | 3.2% | 116.6% |
| 2023 | ₩1.5T | ₩84.4B | ₩65.7B | 5.7% | 6.7% | 114.1% |
| 2024 | ₩1.4T | ₩55B | -₩57.7B | 3.9% | −6.5% | 131.3% |
| 2025 | ₩1.3T | ₩32.4B | -₩10.2B | 2.4% | −1.2% | 125.6% |
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
On an annual basis, revenue rose from KRW 1,407.7 billion with operating profit of KRW 54.7 billion (3.9% margin) in 2022 to KRW 1,473.4 billion in revenue and KRW 84.4 billion in operating profit (5.7% margin) in 2023, with net income attributable to owners of about KRW 65.7 billion.
In 2024, however, revenue fell to KRW 1,393.3 billion, operating profit declined to KRW 55.0 billion (3.9% margin), and net income attributable to owners swung to a loss of roughly KRW -57.7 billion.
In 2025, revenue further declined to KRW 1,332.7 billion and operating profit to KRW 32.4 billion (2.4% margin), though the net loss attributable to owners narrowed to about KRW -10.2 billion.
On a quarterly basis, operating profit remained positive throughout the window, at KRW 11.0 billion in Q2 2025, KRW 7.4 billion in Q3 2025, KRW 22.9 billion in Q4 2025, KRW 11.8 billion in Q1 2026 and KRW 14.2 billion in Q2 2026.
By contrast, net income attributable to owners swung dramatically regardless of the operating trend, from roughly KRW +83.5 billion in Q2 2025 and KRW +37.7 billion in Q3 2025, to about KRW -141.0 billion in Q4 2025, then back to about KRW +65.5 billion in Q1 2026 and KRW -10.6 billion in Q2 2026.
This pattern suggests the volatility in net income is driven far more by non-operating items, such as equity-method gains and losses from affiliates, than by the core remicon and building materials operations.
Indeed, the 2024 net loss has been traced to the equity-method loss from a roughly 29.86%-owned affiliate, Dongyang, together with a large impairment charge on the YTN investment held through the special-purpose entity Eugene ENT.
As a result, operating profit has followed a relatively gradual trend even as revenue declined, while the net income line has repeatedly reversed direction quarter to quarter based on affiliate-related items.
The domestic construction cycle remains mired in a prolonged downturn, still reflecting the sharp drop in construction starts seen in 2022-2023.
Industry data show that domestic cement shipments fell 12.8% year over year to 38.1 million tons, the lowest level in 34 years since 1991, and remicon demand has followed a similar trajectory.
Industry forecasts point to 2026 remicon demand of about 91.1 million cubic meters, a further 0.4% decline from the prior year, suggesting the demand slump could persist.
That said, the Korea Institute of Civil Engineering and Building Technology (CERIK) has projected that 2026 construction orders will rise 4.0% year over year to KRW 231.2 trillion, led by the public sector, implying a bifurcated market in which public and civil-engineering demand partly offsets weakness in private building.
Against this backdrop, the top three remicon groups, Samhpyo, Aju and Eugene, have been restructuring their businesses by leveraging owned land for real estate development, hotel operations and media as new growth avenues.
Meanwhile, remicon mixer trucks have been subject to an 18-year ban on capacity additions since the policy took effect in 2009, running through 2027, which has shifted bargaining power in transport toward labor unions and contributed to the June 2026 remicon transport shutdown in the greater Seoul area, highlighting supply-chain risk for construction sites.
Eugene Corp is viewed as maintaining a relatively stable market position through this downturn, underpinned by its position as the clear leader in remicon and its nationwide distribution network.
For 2026, construction orders are expected to see a moderate recovery centered on the public sector, civil engineering and large-scale metropolitan projects, though divergence across sub-sectors and companies is likely to deepen further.
Because industry forecasts still call for a slight decline in remicon and cement demand in 2026, cost control and pricing policy, rather than a structural volume recovery, are likely to be the key swing factors for earnings.
The June 2026 remicon transport strike in the greater Seoul area raised concerns about disruptions even at major semiconductor construction sites such as Samsung Electronics' Pyeongtaek plant and SK Hynix's Yongin plant, and any recurrence of similar labor disputes could again bring supply disruptions and cost pressure to the fore.
The government operates a remicon supply-coordination scheme that gives priority delivery to public and government-ordered construction sites, which could relatively favor companies with a larger public-sector revenue mix during periods of supply instability.
The high share of aging buildings in Seoul and the backlog of redevelopment projects awaiting construction starts are cited as factors that could support urban redevelopment-related demand over the medium to long term.
That said, volatility in equity-method gains and losses tied to affiliate investments such as Dongyang and YTN remains a variable that could continue to determine the direction of quarterly net income, meaning uncertainty around net income estimates is likely to persist separately from the operating trend.
The current share price trades at a substantial discount to net asset value per share, which can be interpreted as reflecting both the volatility in the net income line and the broader construction downturn.
Earnings-based multiples are difficult to interpret consistently given that recent quarterly net income has alternated between losses and profits, so it may be more useful to track the durability of any profit recovery than to directly compare current multiples with those seen during the profitable 2023 period.
On the dividend side, Eugene Corp has a track record of paying consistent cash dividends, positioning it closer to a dividend-paying value stock than a non-dividend growth name.
However, because net income has not yet fully and durably turned from loss to profit, whether the discount to book value narrows alongside any earnings recovery signal, or persists amid continued industry weakness, will likely depend on upcoming quarterly results and the trend in affiliate-related gains and losses.
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
Even as revenue declined every year since 2023, operating profit remained positive for four consecutive years from 2022 to 2025, and it stayed positive in every recent quarter as well. This suggests cost and expense management has functioned to some degree even amid the construction downturn.
It is also notable that operating profit improved from KRW 11.8 billion in Q1 2026 to KRW 14.2 billion in Q2 2026.
CERIK has forecast that 2026 construction orders will rise 4.0% year over year to KRW 231.2 trillion, led by the public sector. Even if private building activity remains weak, expanded public and civil-engineering orders could partly cushion remicon volumes. Eugene Corp's nationwide distribution network also positions it relatively well to serve public-sector sites.
Because remicon mixer trucks have been under a capacity-addition ban since 2009 through 2027, new entry into the transport side of the industry is structurally limited. Eugene Corp maintains its position as the clear market leader through a nationwide network of plants, including its largest Seosuwol plant.
This structural entry barrier could work in favor of maintaining market position if the industry eventually recovers.
Domestic cement shipments hit their lowest level in 34 years, and remicon demand is forecast to decline slightly further in 2026. Revenue fell for three consecutive years, from KRW 1,473.4 billion in 2023 to KRW 1,332.7 billion in 2025. If the industry recovery is delayed, the revenue decline could continue.
The 2024 net loss was primarily driven by an equity-method loss from Dongyang and an impairment on the YTN investment, and a pattern of large quarterly swings in net income has continued since then.
Net income attributable to owners swung from a loss of about KRW -141.0 billion in Q4 2025 to a gain of about KRW +65.5 billion in Q1 2026. This non-operating uncertainty makes forecasting net-income-based results difficult.
The June 2026 strike by the ready-mixed concrete transport union in the greater Seoul area disrupted the supply chain, forcing construction sites to adjust pouring schedules.
Because mixer-truck capacity additions remain banned through 2027, transport unions hold relatively strong bargaining power, and the possibility of similar wage and freight-rate disputes recurring cannot be ruled out. This is a risk that could translate into delayed revenue recognition or higher logistics costs.
As a lagging effect of the decline in construction starts, remicon and cement demand remains structurally low, with a further decline projected for 2026. Lingering unsold housing inventory in regional markets and real estate project-financing risk could delay a recovery in private building activity. This could translate into continued downward pressure on the overall revenue base.
Equity-method valuation and impairment assessments related to affiliates such as Dongyang and YTN remain a key variable that could continue to drive net income volatility. If YTN's revenue and profitability recovery is delayed, equity-method losses could widen again.
This is a structural risk that could erode net income attributable to owners regardless of the underlying operating performance.
Remicon transport is exposed to the risk of supply disruption from labor disputes, given the mixer-truck capacity restriction and the wage and freight-rate negotiation structure with transport unions.
As the June 2026 strike showed, such disputes can affect major construction and semiconductor sites in the greater Seoul area, meaning a recurrence could lead to delayed revenue recognition or higher logistics costs.
This is when the Q3 2026 quarterly report is due, making it worth checking how much the June transport strike affected Q3 revenue and operating profit, and whether equity-method gains or losses from affiliates swung sharply again.
It is worth monitoring whether wage and freight-rate negotiations with the greater Seoul remicon transport union resume or another strike occurs, as this directly affects supply-chain stability and logistics costs.
It is worth checking whether the construction-order recovery forecast by CERIK for 2026, led by the public sector and projected at KRW 231.2 trillion (up 4.0% year over year), is actually translating into order placement and execution pace.
Because the ban on remicon mixer-truck capacity additions, in effect since 2009, is scheduled to run through 2027, it is worth watching whether the policy is extended or eased, as this could affect the transport cost structure.
Eugene Corp, the leading domestic player in remicon and building materials distribution, has demonstrated a relatively stable operating base by maintaining operating profit for four consecutive years even as revenue has declined.
However, volatility in equity-method gains and losses tied to affiliate investments in Dongyang and YTN has caused net income attributable to owners to swing sharply from quarter to quarter, creating a clear gap between operating results and the net income line.
The construction industry outlook for 2026 still points to a slight decline in remicon and cement demand, though expectations for expanded public and civil-engineering orders offer some offsetting support.
The June 2026 remicon transport strike in the greater Seoul area illustrated that supply-chain risk remains a tangible variable.
The share price trades at a substantial discount to net asset value, and whether that discount narrows will likely depend on the quality of future earnings, specifically whether the gap between operating profit and net income narrows, as well as the pace of industry recovery.
Investors will want to monitor upcoming quarterly disclosures, the trend in affiliate-related gains and losses, and whether transport labor disputes recur.
Report written 2026-09-05 · Data as of 2026-09-04
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