KOSPISteel & Metals071090

Histeel

₩3,455▼ 4.69%2026-10-02 close

Market Cap

₩69.6B

Turnover

₩2.8B

Volume

800,000 shares

Shares out.

20.2M

PER

81.1×

PBR

0.5×

EPS

₩44

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Anti-Dumping Risk Cleared, Quarterly Profit Returns

Histeel has cleared its US anti-dumping duty burden and posted two consecutive profitable quarters in 2026, yet it still booked an operating and net loss for full-year 2025, underscoring the quarter-to-quarter volatility that remains in its earnings profile.

1
The US Department of Commerce finalized a 0% dumping margin for Histeel in the annual administrative review of heavy-walled rectangular welded carbon steel pipe (September 2026)
2
Both Q1 and Q2 2026 turned profitable at the operating and net-income level, reversing the losses seen in Q3-Q4 2025
3
Full-year 2025 revenue rose slightly to KRW 256.6 billion, but the company posted an operating loss of KRW 3.3 billion and a net loss of KRW 4.6 billion for the year
4
The company continues to target seismic-resistant demand in Japan and Southeast Asia with its large-diameter square pipe product 'Hi-Column' from the Haman plant
5
The stock trades without a cash dividend, limiting its income appeal

Business structure

Histeel is a steel pipe manufacturer established in 2003 through a spin-off from Hanil Steel and re-listed on the KOSPI the same year.

The company operates its headquarters and ERW/SAW pipe production lines in Dangjin, South Chungcheong Province, and a dedicated large-diameter square pipe plant in Haman, South Gyeongsang Province, while holding HISTEEL PIPE&TUBE INC, a US sales subsidiary, and Hi-Power, a heat-treatment subsidiary.

Its product lineup spans small- and mid-diameter pipes through 60-inch-class heavy-walled large-diameter pipe, serving line pipe for oil and gas transport, oil country tubular goods (OCTG), shipbuilding and industrial pipe, and seismic-resistant square pipe for construction and civil engineering, giving it a broad spread of end markets.

The Haman plant, operating since 2022, is Korea's only dedicated facility for the seismic large square pipe 'Hi-Column,' holding domestic KS D 3864 certification as well as Japan's BCR and BCP certifications that underpin its entry into the Japanese construction market.

Its customer base includes domestic and overseas construction firms, steel structure fabricators, shipbuilders, and plant operators, with exports reaching roughly 30 countries.

In the domestic pipe industry, the company competes with SeAH Steel, Husteel, and Nexteel, while US tariff policy and anti-dumping rulings remain key variables determining competitiveness in that market.

More recently, the company has been raising the share of higher value-added products such as high-manganese steel pipe and corrosion-resistant, high-strength grades to reduce exposure to raw material price swings and defend margins.

Earnings trend

Quarterly revenue · Operating profit

₩58.9B₩1.8B25Q2₩54B-₩3.4B25Q3₩73.2B-₩2.2B25Q4₩54.9B₩1.8B26Q1₩81.3B₩3.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩316.4B₩16.9B2022₩256.7B₩3.4B2023₩246.3B₩900M2024₩256.6B-₩3.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩58.9B	₩1.8B	3.0%
2025Q3	₩54B	-₩3.4B	−6.2%
2025Q4	₩73.2B	-₩2.2B	−3.0%
2026Q1	₩54.9B	₩1.8B	3.2%
2026Q2	₩81.3B	₩3.2B	4.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩316.4B	₩16.9B	₩11.5B	5.3%	7.7%	96.3%
2023	₩256.7B	₩3.4B	₩1.3B	1.3%	0.9%	81.2%
2024	₩246.3B	₩900M	-₩1.1B	0.4%	−0.7%	80.7%
2025	₩256.6B	-₩3.3B	-₩4.6B	−1.3%	−3.2%	81.8%

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

Earnings analysis

Consolidated revenue for 2025 came to KRW 256.6 billion, a modest increase from KRW 246.3 billion in 2024, but operating profit turned negative at KRW -3.3 billion and net income attributable to owners swung to KRW -4.6 billion.

In 2024, operating profit had been positive at KRW 0.9 billion even though net income was already negative at KRW -1.1 billion, while 2023 saw revenue of KRW 256.7 billion with operating profit of KRW 3.4 billion and net income of KRW 1.3 billion, staying marginally profitable. 2022 was the strongest of the past four years, with revenue of KRW 316.4 billion, operating profit of KRW 16.9 billion, and net income of KRW 11.5 billion, after which profitability clearly deteriorated over the following three years through 2025.

On a quarterly basis, Q3 2025 revenue was KRW 54.0 billion with an operating loss of KRW 3.4 billion and a net loss of KRW 2.7 billion, and Q4 2025 revenue rose to KRW 73.2 billion yet the loss continued, with an operating loss of KRW 2.2 billion and a net loss of KRW 1.9 billion.

Q1 2026, however, turned profitable even as revenue fell to KRW 54.9 billion, posting operating profit of KRW 1.8 billion and net income of KRW 2.2 billion, and Q2 2026 extended the streak with revenue of KRW 81.3 billion, operating profit of KRW 3.2 billion, and net income of KRW 3.3 billion.

Combined net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 0.9 billion, as the second-half profits largely offset the first-half losses.

Operating cash flow deteriorated in 2025 to KRW -3.2 billion, compared with KRW 3.7 billion in 2024 and KRW 19.8 billion in 2023, a point worth monitoring alongside the swings in quarterly profitability.

Industry analysis

Korea's steel industry has faced production cuts amid an onslaught of low-priced Chinese steel and weak domestic demand, yet certain product categories such as pipe and long steel products have posted double-digit export growth.

Reports indicate that steel products exported to the United States surged 80% year-on-year this month, with export growth rates of 28.76% and 32.29% in August and September respectively, while pipe exports jumped 40.53% year-on-year in August and continued rising 30.8% in the first 20 days of this month.

Industry sources note that demand for some Korean products persists despite tariffs because of a supply shortfall in the US steel market.

At the same time, heightened Middle East geopolitical risk has driven a spike in US oil country tubular goods (OCTG) spot prices, and some analysis suggests that a recovery in US drilling activity could help domestic pipe makers' profitability improve starting in the second half.

Against this backdrop, Histeel holds both general-purpose ERW/SAW pipe and line pipe products alongside specialized items such as Hi-Column from its Haman plant, spreading risk across the US, Japanese, and Southeast Asian markets.

Still, domestic competitors such as SeAH Steel, Husteel, and Nexteel similarly carry significant US export exposure, meaning US trade policy and tariff shifts remain a common variable affecting the entire sector.

Outlook

In September 2026, Histeel secured a final 0% dumping margin ruling from the US Department of Commerce in the annual administrative review of heavy-walled rectangular welded carbon steel pipe, effectively eliminating the cash-deposit burden on that product line.

That said, the ruling does not exempt all of Histeel's steel exports to the US from tariffs, and other US trade measures such as Section 232 duties may still apply separately.

Operationally, in May 2026 the company signed a roughly KRW 37.6 billion (about USD 25 million) pipe supply contract with its US subsidiary HISTEEL PIPE&TUBE INC, running from May 20 to December 31, 2026 and equivalent to roughly 14.65% of recent annual revenue; the company has noted that contract terms could change depending on the counterparty's circumstances, making the year-end contract outcome a point to watch.

Strategically, the company continues to push its Hi-Column large square pipe from the Haman plant into Japan's seismic-code-driven construction market and into new Southeast Asian markets, while also expanding higher value-added products such as high-manganese steel pipe and corrosion-resistant, high-strength grades to improve its margin structure.

Industry-wide, analysis points to rising OCTG prices tied to a recovery in US drilling activity potentially benefiting domestic pipe makers' profitability in the second half, making it worth watching how this sector-wide shift feeds through to Histeel's results in the back half of 2026.

Valuation

PER

81.1×

PBR

0.5×

ROE

0.6%

EPS

₩44

BPS

₩7,422

Dividend per share

₩0

Histeel's shares trade below their per-share net asset value, which on a price-to-book basis represents a discount relative to total equity.

On the earnings side, however, the company is still in the process of transitioning from a full-year loss in 2025 to two consecutive profitable quarters in the first half of 2026, with quarterly profit levels still small and volatile, so price-to-earnings multiples warrant caution in interpretation.

On the dividend front, the absence of recent cash dividends limits the stock's appeal from a shareholder-return perspective. The debt ratio has eased somewhat from 96.3% in 2022 to the low-to-mid 80% range in 2023-2025, but the balance sheet still carries a relatively high level of liabilities versus equity.

Overall, this is a period where an asset-side discount and earnings-side volatility coexist, with the quality and durability of profits not yet fully established.

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

Bull factors

US Anti-Dumping Risk Removed

The US Department of Commerce's September 2026 final ruling fixed the dumping margin at 0% for heavy-walled rectangular welded carbon steel pipe, effectively removing the cash-deposit burden on US exports of that product.

Both Dongbu Steel and Histeel received 0% rulings alongside non-selected firm Kukje Steel, easing trade-related risk across the industry. Because this was a final rather than preliminary ruling, it can be read as securing relatively stable export conditions for this specific product line.

Two Consecutive Profitable Quarters in H1 2026

After posting consecutive operating and net losses in Q3-Q4 2025, both operating profit and net income attributable to owners turned positive in both Q1 and Q2 2026. Notably, Q2 revenue of KRW 81.3 billion was the highest among the quarters reviewed, showing simultaneous improvement in scale and profitability.

On a trailing four-quarter basis, the second-half profits largely offset the first-half losses, laying groundwork for a potential improvement in annual results.

Diversification into Higher Value-Added, Multi-Region Exports

The Haman plant's Hi-Column, built on Korea's only dedicated large-diameter square pipe production system, holds Japan's BCR and BCP certifications and is being used to expand exports into Japan's seismic-code-mandated market and new Southeast Asian markets.

The company is also increasing the share of higher value-added products such as high-manganese steel pipe and corrosion-resistant, high-strength grades to lower exposure to raw material price swings and defend margins.

An export base spread across the US, Japan, and Southeast Asia reduces the risk of dependence on any single market.

Bear factors

Full-Year 2025 Loss, Recovery Still Brief

On a full-year basis, 2025 posted an operating loss of KRW 3.3 billion and a net loss of KRW 4.6 billion, and 2024's net income was already negative as well.

The profit turnaround in Q1-Q2 2026 spans just two quarters, so whether a stable, annual-level profitability recovery will follow still requires confirmation from additional quarterly results.

It is also worth bearing in mind that profitability declined markedly over the three consecutive years from 2023 to 2025 compared with 2022.

Deteriorating Operating Cash Flow

Operating cash flow in 2025 was KRW -3.2 billion, a sharp deterioration from KRW 3.7 billion in 2024 and KRW 19.8 billion in 2023.

Separately from book profit or loss, this signals a slowdown in actual cash generation, warranting continued monitoring of working-capital factors such as inventory, receivables management, and foreign exchange movements.

Ongoing Uncertainty in US Trade Policy

The final anti-dumping ruling applies only to a specific product, heavy-walled rectangular welded carbon steel pipe, and does not mean all of Histeel's steel exports to the US are tariff-free.

Other trade measures, such as Section 232 steel and aluminum tariffs, can still apply separately, leaving exposure to shifts in US trade policy. The company has also noted that the terms of its roughly KRW 37.6 billion supply contract with its US subsidiary could change depending on the counterparty's circumstances.

Risk factors

Earnings Volatility

Quarterly operating and net income flipped between loss, loss, profit, and profit over the four quarters from Q3 2025 through Q2 2026, reflecting significant volatility.

The earnings structure appears highly sensitive to external variables such as raw material (hot-rolled coil) prices, foreign exchange rates, and pricing power. This volatility reduces the reliability of forward-looking earnings projections.

Trade and Tariff Policy Shifts

US steel tariff policy and anti-dumping rules can change at any time, and this 0% ruling applies only to a specific product in a single annual review cycle. The possibility that export conditions could worsen again due to other tariff measures such as Section 232 or future review outcomes cannot be ruled out.

In markets outside the US, such as Japan and Southeast Asia, changes in local building codes and certification policies could also affect exports.

Capital Structure and Cash Flow

While the debt ratio eased from 96.3% in 2022 to the 80% range in 2023-2025, liabilities relative to equity remain elevated, and the swing to negative operating cash flow in 2025 is a factor worth watching from a funding and liquidity perspective.

With no dividend currently being paid, the potential impact of changes in external financing conditions on shareholder value is also a consideration.

What to watch next

Around mid-November 2026
The Q3 2026 earnings release will show whether the two-quarter profit streak from H1 2026 continues and whether rising US OCTG prices are feeding through to actual profitability.
Around December 31, 2026
This marks the expiration of the roughly KRW 37.6 billion pipe supply contract with US subsidiary HISTEEL PIPE&TUBE INC, making it a point to check for contract renewal or additional orders.
During Q4 2026
Tracking US drilling rig counts and OCTG spot price trends will help monitor whether the industry's anticipated second-half profitability improvement is actually materializing.
Around January-February 2027
The 2026 full-year business report and settlement disclosures will indicate whether annual operating and net income turned profitable and whether a dividend resumption is announced.

Overall view

Histeel posted an operating and net loss for full-year 2025, but both Q1 and Q2 2026 turned profitable at the operating and net-income level, showing an improving trend on a quarterly basis.

The 0% dumping margin finalized in the September 2026 US anti-dumping annual review has substantially resolved trade-related risk for that specific product, while the company's push into Japan and Southeast Asia with the Hi-Column product from its Haman plant and its US subsidiary supply contract are contributing to a more diversified business base.

Still, challenges remain: profitability declined over three consecutive years from 2023 through 2025 relative to 2022, operating cash flow turned negative in 2025, and quarterly earnings continue to swing between losses and profits.

The absence of a dividend and the structural risk that US trade policy shifts could affect the broader export environment beyond a single product should also be factored in.

Taken together, this is a period where positive signals from reduced trade risk and a quarterly earnings turnaround coexist with an as-yet unproven annual-level quality and durability of profits.

The Q3 2026 results and the degree to which the US OCTG market backdrop feeds through to actual performance will be key variables in gauging whether this trend continues.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-10-02 · Data as of 2026-10-01

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.