PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,155 per share · Prices as of the 2026-10-02 close
Nexteel returned to consecutive operating profits in the first and second quarters of 2026 after an operating loss in the fourth quarter of 2025, but profit levels remain far below the 2023 peak, while a pending US anti-dumping final ruling and a large damages lawsuit remain unresolved variables.
The 2025 annual operating margin fell to 7.2%, sharply down from 25.4% in 2023 and 27.1% in 2022.
After an operating loss of about KRW 3.0 billion in the fourth quarter of 2025, the company posted operating profits of roughly KRW 2.7 billion in the first quarter of 2026 and KRW 5.5 billion in the second quarter.
In March 2026, the US Department of Commerce's preliminary review found a 0.00% dumping margin for Nexteel, but this is preliminary and a final determination has not yet been announced.
In November 2025, Canada-based CSV filed a damages lawsuit worth roughly KRW 266.5 billion against the company, which also received a preliminary notice of designation as an unfaithful disclosure entity for delayed disclosure.
In July 2026, the company decided to acquire a 50% stake in Texas-based pipe distributor Tex-Isle, Inc. for about KRW 73.8 billion, expanding its US local production and distribution footprint.
Founded in 1990 and listed on the KOSPI market in August 2023, Nexteel is a steel pipe manufacturer headquartered in Pohang, Gyeongsangbuk-do, with core production facilities in Pohang and Gyeongju as well as a production subsidiary in Texas, United States.
Its main products are oil country tubular goods (OCTG, comprising Casing and Tubing) used in oil and gas drilling, line pipe for transporting crude oil and gas, and standard pipe for construction and plumbing, with a focus on energy-related steel pipe.
Export sales as a share of total pipe sales stood at 68.9% in 2021, 77.0% in 2022, and 73.7% in 2023, reflecting an export-oriented structure that far outweighs domestic sales.
In 2023, the company brought a new large-diameter (26-inch) facility online at its Gyeongju No.1 plant, positioned as one of the largest of its kind in Asia.
The domestic steel pipe industry is an oligopoly in which four major players—SeAH Steel, Hyundai Steel Pipe (formerly Hyundai Steel), Husteel, and Nexteel—hold the bulk of the US export quota, securing stable export volumes to the United States.
The company is investing in wind-power foundation pipe facilities (spiral and roll-bending) at its Pohang plant; the roll-bending line alone involves an investment of about KRW 219.1 billion, with the completion timeline pushed back two years from an original 2026 target to 2028.
In July 2026, the company decided to acquire a 50% stake in Texas-based pipe distributor Tex-Isle, Inc. for approximately KRW 73.8 billion in cash, further expanding its US local production and distribution base.
As a result, Nexteel's business structure carries heavy dependence on energy pipe exports to the United States, making its earnings highly sensitive to US trade policy and shale/gas development cycles.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩178B | ₩14.6B | 8.2% |
| 2025Q3 | ₩121.9B | ₩5.4B | 4.5% |
| 2025Q4 | ₩94.3B | -₩3B | −3.2% |
| 2026Q1 | ₩100.6B | ₩2.7B | 2.7% |
| 2026Q2 | ₩167.5B | ₩5.5B | 3.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩668.4B | ₩181.3B | ₩144.2B | 27.1% | 50.5% | 106.1% |
| 2023 | ₩619.1B | ₩157.3B | ₩129.6B | 25.4% | 29.1% | 44.4% |
| 2024 | ₩552.4B | ₩63.2B | ₩34.8B | 11.4% | 7.5% | 48.8% |
| 2025 | ₩551B | ₩39.9B | ₩36B | 7.2% | 7.8% | 50.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
On an annual basis, revenue declined gradually over four years, from KRW 668.4 billion in 2022 to KRW 619.1 billion in 2023, KRW 552.4 billion in 2024, and KRW 551.0 billion in 2025.
Meanwhile, the operating margin fell sharply from 27.1% in 2022 and 25.4% in 2023 to 11.4% in 2024, and further to 7.2% in 2025, showing clear margin erosion.
Net income attributable to owners also dropped substantially, from KRW 144.2 billion in 2022 and KRW 129.6 billion in 2023 to KRW 34.8 billion in 2024 and KRW 36.0 billion in 2025.
On a quarterly basis, after posting revenue of KRW 178.0 billion, operating profit of KRW 14.6 billion, and net income of KRW 9.8 billion in the second quarter of 2025, revenue fell to KRW 121.9 billion in the third quarter while net income held at a similar KRW 9.5 billion, before the company swung to an operating loss of about KRW 3.0 billion and a net loss of about KRW 3.2 billion in the fourth quarter on revenue of KRW 94.3 billion.
The company returned to profit in the first quarter of 2026, with revenue of KRW 100.6 billion, operating profit of about KRW 2.7 billion, and net income of about KRW 2.8 billion, and in the second quarter revenue rose sharply to KRW 167.5 billion with operating profit improving to about KRW 5.5 billion.
However, second-quarter net income was only about KRW 450 million, meaning the operating profit improvement did not fully flow through to the bottom line, which can be interpreted as reflecting non-operating items or tax-related factors.
Over the trailing four quarters from the third quarter of 2025 through the second quarter of 2026, net income attributable to owners totaled roughly KRW 9.5 billion, less than a tenth of the full-year 2023 figure.
Market commentary has attributed part of the 2024 earnings collapse to the fading of a one-off benefit from a prior anti-dumping duty refund, suggesting that the recent profit recovery is occurring without such one-off effects, distinguishing it from earlier patterns.
Since the United States tightened trade protectionism in 2018, Korea's steel pipe industry has been subject to an annual export quota of roughly 1.03 million tons to the US in lieu of a 25% high anti-dumping tariff, with four major players—SeAH Steel, Hyundai Steel Pipe, Husteel, and Nexteel—holding most of that quota in an oligopolistic structure.
In March 2026, the US Department of Commerce's preliminary results of an administrative review covering OCTG exports from September 2023 to August 2024 calculated a 0.00% dumping margin for both Nexteel and SeAH Steel, effectively finding no dumping, although this is a preliminary result and a separate final determination is still pending.
That preliminary ruling itself came after repeated delays caused by a US federal government shutdown and a backlog in electronic administrative filings, meaning the timeline for the final determination could also remain fluid.
Demand for Nexteel's core OCTG and line pipe products is closely tied to US shale and natural gas development investment, as illustrated by the case of Korea's large offshore drilling project known as the 'Daewanggorae' project, which was halted after an unsuccessful drilling attempt and directly affected earnings expectations.
Separately, in 2026 sentiment toward Korean steel stocks broadly improved amid China's steel production cuts and Iran's export ban on steel slabs and plates, with major producers such as POSCO raising distribution prices for hot- and cold-rolled steel sheets.
However, it remains to be separately confirmed how much of this general steel price increase would flow through to the profitability of an energy-pipe specialist like Nexteel.
Overall, Nexteel sits in an industry environment where favorable signals from easing tariff risk coexist with uncertainty stemming from a still-pending final ruling and project-based demand volatility.
The company is expanding its footprint by deciding in July 2026 to acquire a 50% stake in Texas-based pipe distributor Tex-Isle, Inc. for about KRW 73.8 billion, strengthening its US local production and distribution base in a move that could serve as a buffer against US trade risk.
Its wind-power foundation pipe investment at the Pohang plant, with about KRW 219.1 billion allocated to the roll-bending line, has seen its completion timeline extended two years from an original 2026 target to 2028, meaning new revenue contribution is likely to materialize only well into the future.
The 26-inch large-diameter facility at the Gyeongju No.1 plant, operational since 2023 and billed as one of the largest of its kind in Asia, is still assessed as making only a limited contribution to earnings so far.
The Texas production subsidiary operates with an annual capacity of about 120,000 tons, and whether its utilization rate rises is flagged as one of the key variables for future profitability improvement.
The US Department of Commerce's administrative review of OCTG anti-dumping duties produced a preliminary 0.00% margin in March 2026, but a final determination has not yet been announced, so its eventual effect on US export conditions remains to be seen.
Regarding the roughly KRW 266.5 billion damages lawsuit filed by Canada's CSV, the company has stated it retained local legal counsel to respond, and the outcome and pace of the proceedings remain a variable that could weigh on future financial burden.
Whether the pattern of consecutive profits in the first and second quarters of 2026, following the fourth-quarter 2025 loss, continues, or whether the second quarter's pattern of limited net income despite higher revenue repeats, will need further confirmation in coming quarterly results.
The current price-to-book multiple appears to sit below the upper end of the historical trading band the stock has occupied, though whether it represents a discount or a modest premium to net asset value can shift over time.
The price-to-earnings multiple is on the higher side relative to the band that prevailed during the 2023 net income peak, but this largely reflects the fact that net income itself contracted sharply from the 2022–2023 peak to 2024–2025, meaning earnings compression—rather than a rise in the share price—has played a significant role in pushing the multiple up.
On the dividend side, the company has a recent history of paying dividends, but given the wide year-to-year earnings swings, including the fourth-quarter operating loss noted earlier, future dividend levels or continuity will depend on each fiscal year's results and board decisions.
Earnings can be characterized as having moved from high profitability in 2022–2023 through a substantial contraction in 2024–2025, and into an early-stage recovery phase in 2026 marked by a swing from loss to profit.
When interpreting valuation, this earnings volatility should be considered alongside non-operating uncertainties such as the pending anti-dumping final determination and the ongoing lawsuit.
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 2026-09-05
The US Department of Commerce's March 2026 preliminary review calculated a 0.00% dumping margin for Nexteel, raising the possibility that trade risk on its core export product, OCTG, could ease. However, as this is only a preliminary result, the final determination could still differ. If the final ruling confirms the preliminary result, uncertainty around US export conditions could be reduced.
In July 2026, the company decided to acquire a 50% stake in Texas-based pipe distributor Tex-Isle, Inc., broadening its US local production and distribution base. Combined with its existing Texas production subsidiary, this could enhance its ability to respond to US trade risk. However, the timing and scale of the new acquisition's earnings contribution have yet to be confirmed.
After posting an operating loss in the fourth quarter of 2025, the company generated operating profits in both the first and second quarters of 2026. Second-quarter revenue of about KRW 167.5 billion rose sharply from the prior quarter, also signaling a revenue recovery.
However, net income improvement lagged behind the improvement in revenue and operating profit, so whether this trend continues will need to be confirmed in coming quarterly results.
Net income attributable to owners over the trailing four quarters totaled roughly KRW 9.5 billion, still far below the KRW 129.6 billion recorded for the full year 2023. In the second quarter, despite higher revenue, net income was only about KRW 450 million, leaving questions about earnings quality. It should also be considered that the profit recovery remains at an early stage.
The damages sought in the lawsuit filed by Canada's CSV amount to roughly KRW 266.5 billion, far exceeding the company's full-year 2025 net income attributable to owners of KRW 36.0 billion.
The company also received a preliminary notice of designation as an unfaithful disclosure entity related to delayed disclosure of the matter, highlighting disclosure management risk as well. The lawsuit's outcome and the progress of related review procedures warrant continued monitoring.
About KRW 219.1 billion is being invested in the roll-bending line for wind-power foundation pipe, with completion pushed back two years from 2026 to 2028. With a substantial period remaining until completion, this could weigh on cash flow in the interim.
Operating cash flow was negative in 2023, underscoring the need to continue monitoring the balance between investment and cash flow.
The US Department of Commerce's administrative review of OCTG anti-dumping duties remains at the preliminary stage, with the timing and outcome of the final determination not yet fixed. If the final ruling differs from the preliminary result, US export conditions could change. In addition, the US export quota system itself remains in place, representing a structural volume constraint.
A damages lawsuit worth roughly KRW 266.5 billion filed by Canada's CSV is ongoing, and the company received a preliminary notice of designation as an unfaithful disclosure entity related to delayed disclosure of the matter.
Depending on the lawsuit's outcome, financial burden could arise, and the eventual designation decision could also affect market confidence.
Demand for the company's core OCTG and line pipe products is heavily dependent on the US shale and natural gas development investment cycle. As illustrated by the case of a large domestic offshore drilling project being halted, the success or failure of individual projects can directly affect earnings expectations. The business's characteristic of large quarter-to-quarter earnings swings should also be taken into account.
The third-quarter 2026 earnings release should be checked to see whether the revenue recovery and profit improvement trend seen through the second quarter continues.
It should be confirmed whether the US Department of Commerce's final determination in the OCTG anti-dumping administrative review matches the preliminary 0.00% dumping margin.
The closing of the 50% stake acquisition in Tex-Isle, Inc. and the timing and scope of its consolidation into earnings should be confirmed.
Follow-up procedures and outcomes related to the roughly KRW 266.5 billion damages lawsuit filed by Canada's CSV and the unfaithful disclosure designation matter should continue to be monitored.
Progress on the roll-bending pipe facility for wind-power foundations (an investment of about KRW 219.1 billion) and any further schedule changes should be monitored.
Nexteel swung to consecutive operating profits in the first and second quarters of 2026 following an operating loss in the fourth quarter of 2025, but net income over the trailing four quarters remains less than a tenth of the full-year 2023 figure, indicating the profit recovery is still at an early stage.
The US Department of Commerce's March 2026 preliminary review, which calculated a 0.00% dumping margin, raised the possibility of easing trade risk, but this is not yet confirmed pending the final determination.
The roughly KRW 266.5 billion damages lawsuit filed by Canada's CSV and the associated preliminary notice of unfaithful disclosure designation remain separate financial and reputational burdens apart from operating performance.
At the same time, mid- to long-term business expansion is underway through the Tex-Isle stake acquisition in Texas and the wind-power foundation pipe facility investment, though facility completion has been delayed to 2028 and the timing of the new acquisition's earnings contribution has yet to be confirmed.
Revenue has trended down gradually since 2022, while the operating margin has fallen sharply from its 2022–2023 highs to 2024–2025 levels, making the stability of the ongoing profit recovery the key point to observe going forward.
Overall, positive factors—easing tariff risk signals and expanding US localization—coexist with negative factors, including low absolute profit levels, litigation, and delayed capital investment, making it important to track upcoming quarterly results, the anti-dumping final determination, and the progress of the lawsuit in sequence.
Report written 2026-09-05 · Data as of 2026-09-04
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