PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩750 per share · Prices as of the 2026-10-02 close
Kisco Corp continues to post operating losses for five straight quarters amid a construction downturn and shrinking rebar demand, while maintaining balance-sheet stability through low leverage and positive operating cash flow.
2025 annual revenue fell to KRW 486.6bn, down sharply from the prior year, with an operating loss of KRW 38.7bn
Operating losses persisted through the most recent four quarters (2025Q3-2026Q2), with the widest loss in 2026Q1 before a revenue rebound in 2026Q2
Domestic rebar demand has hit a three-year low as of first-half 2026, with utilization at major rebar makers remaining depressed
Debt ratio stood at 12.4% in 2025, reflecting conservative leverage, and operating cash flow remained positive despite the net loss
Policy variables such as potential expansion of domestic production tax credits and tightening EU CBAM rules remain in play for the steel sector
Kisco Corp is a Changwon-headquartered rebar-focused steelmaker operating a 120-ton electric arc furnace and rolling facilities. Rebar accounts for roughly 93-94% of total revenue, with the remainder coming from steel pipe and forged products.
Its main customers are construction companies, distributors, and the Public Procurement Service, and the company is heavily dependent on steel scrap as its primary raw material.
Kisco's domestic rebar market share is estimated in the low-to-mid teens percentage range, positioning it alongside Hyundai Steel, Dongkuk Steel, Daehan Steel, Hwanyoung Steel, YK Steel, Korea Steel, and Korea Special Steel as one of the eight major domestic rebar producers.
Among these, Kisco, Daehan Steel, and Hwanyoung Steel are classified as the three specialized rebar makers given their especially high rebar exposure. Because its business is closely tied to construction activity, changes in domestic construction orders and starts have a direct impact on earnings.
The company is pursuing cost reduction through low-cost raw material sourcing, customer diversification, and digital transformation of production processes. As of the most recent quarter, treasury shares are reported at roughly 13% of outstanding shares, which constrains the freely tradable float.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩122.3B | -₩2.6B | −2.1% |
| 2025Q3 | ₩121.7B | -₩9.8B | −8.0% |
| 2025Q4 | ₩126.4B | -₩15.8B | −12.5% |
| 2026Q1 | ₩111.7B | -₩14.3B | −12.8% |
| 2026Q2 | ₩173.8B | -₩6.3B | −3.6% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.1T | ₩121.5B | ₩79.8B | 11.4% | 10.1% | 18.7% |
| 2023 | ₩905.1B | ₩86.6B | ₩68.2B | 9.6% | 8.0% | 14.2% |
| 2024 | ₩600B | ₩1.8B | ₩23.5B | 0.3% | 2.9% | 10.9% |
| 2025 | ₩486.6B | -₩38.7B | -₩8.9B | −8.0% | −1.2% | 12.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-17
Kisco's earnings trajectory from 2022 to 2025 shows a clear downward path.
Revenue fell from KRW 1,064.2bn with operating profit of KRW 121.5bn (11.4% operating margin) in 2022, to KRW 905.1bn and KRW 86.6bn (9.6%) in 2023, before collapsing to KRW 600.0bn in revenue and just KRW 1.8bn in operating profit (0.3% margin) in 2024.
In 2025, revenue fell further to KRW 486.6bn (down 18.9% year over year) and the company swung to an operating loss of KRW 38.7bn (-8.0% margin) and a net loss of KRW 8.9bn.
On a quarterly basis, the trailing four-quarter window (2025Q3-2026Q2) shows operating losses in every quarter: KRW 121.7bn revenue with a KRW 9.8bn operating loss in 2025Q3, KRW 126.4bn revenue with a KRW 15.8bn operating loss in 2025Q4 (though net income turned positive at KRW 2.1bn on one-off items), the widest operating loss of KRW 14.3bn on KRW 111.7bn revenue in 2026Q1, and a sharp revenue rebound to KRW 173.8bn in 2026Q2 that still came with a KRW 6.3bn operating loss.
This pattern of recovering sales alongside persistent losses suggests that even with higher shipment volumes, scrap cost pressure and thin product spreads have not been resolved.
Still, 2025 operating cash flow remained positive at KRW 24.3bn despite the net loss, and the debt ratio fell to 12.4%, the lowest of the past four years, indicating balance-sheet health was not materially impaired.
Owners' equity declined from KRW 810.4bn in 2024 to KRW 770.8bn in 2025, reflecting the net loss combined with dividend payments.
The domestic rebar industry sits squarely in the path of the construction downturn. Industry estimates put first-half 2026 domestic rebar demand at roughly 6.59 million tons, a three-year low.
In response, major steelmakers have been cutting output, with rolling-based utilization at the eight major rebar makers surveyed at around 66.4% in July 2026, remaining below the 70% threshold.
On the cost side, steel scrap prices have shown mixed signals, with several major domestic mills cutting purchase prices in August even as some global scrap benchmarks edged higher.
In the second week of August, Hyundai Steel led a wave of scrap purchase price cuts that included Kisco among other mills, yet insufficient underlying construction demand was cited as the key factor still constraining any rebar price rebound.
Against this backdrop, combined first-half 2026 revenue at the three specialized rebar makers—Daehan Steel, Kisco, and Hwanyoung Steel—rose year over year, but their combined operating loss reportedly widened, illustrating how export expansion and price-increase attempts have been offset by rising input costs. On the policy front, discussions around the so-called "K-Steel Act,
No specific company-level capacity expansion or new-product guidance has been confirmed, and the earnings outlook remains heavily tied to rebar market conditions and cost variables.
As of July 2026, domestic rebar distribution prices were forming around KRW 860,000-870,000 per ton, and industry-wide attempts at price normalization were observed, including a price hike announced by Dongkuk Steel, though order recovery remained unclear even after entering the August construction peak season.
On the cost side, scrap purchase price cuts and mixed movements in international benchmarks leave the direction of the cost-price spread unclear.
Policy variables such as whether steel will be included in domestic production tax credits and the tightening of the EU's Carbon Border Adjustment Mechanism are cited as factors that could affect earnings and export profitability from the second half of 2026 onward.
Hyundai Motor Securities projected in a February 2026 report that domestic rebar demand in 2026 would increase year over year and that earnings would improve on rising rebar prices, but subsequent first- and second-quarter 2026 results still showed operating losses, meaning the realization of that view has not yet been confirmed by quarterly results.
The company maintains its stated policy of continuing cost reduction, securing low-cost raw materials, diversifying sales channels, and improving production efficiency through digital transformation.
Key points to watch for the second half include whether order volumes recover with the peak season, whether scrap prices stabilize, and whether government tax support is finalized.
Kisco's share price trades at a level below stated book value per share, reflecting a discount to net assets that has persisted. Compared with the company's five-year average trading multiples, valuation has not clearly re-rated even through the recent earnings downturn.
On the earnings side, the shift from profitability in 2022-2023, to a modest profit in 2024, to a loss in 2025 means conventional earnings-based valuation metrics are difficult to apply cleanly to the most recent period.
On the dividend side, the company has a track record of paying dividends even in a net-loss year, suggesting its shareholder-return policy remains intact, though the sustainability of future payouts depends on earnings recovery.
Hyundai Motor Securities issued a target price in a February 2026 report based on an appropriate price-to-book multiple derived from a sustainable profitability assumption and book value, but given the considerable time that has passed since that report, it should not be carried forward as a reflection of the current situation.
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 2026-08-17
The 2025 debt ratio of 12.4% was the lowest of the past four years, and operating cash flow remained positive at KRW 24.3bn even amid a net loss. This suggests the balance sheet itself has not been materially impaired. A conservative financial policy provides some cushion to withstand the current industry downturn.
Revenue rebounded sharply from KRW 111.7bn in 2026Q1 to KRW 173.8bn in 2026Q2, while the operating loss narrowed from KRW 14.3bn to KRW 6.3bn. This points to a possible recovery in shipment volumes as the peak season approaches.
Whether this translates into sustained profitability improvement, however, requires confirmation over additional quarters.
The company paid a dividend even in a net-loss year in 2025, indicating continuity in its shareholder-return policy. Treasury shares are reported at roughly 13% of shares outstanding as of the most recent quarter, constraining the freely tradable float. These factors serve as reference points for gauging the company's approach to shareholder returns.
Domestic rebar demand has hit a three-year low as of first-half 2026, and a fundamental demand recovery is difficult to expect as long as the construction downturn persists. Given that rebar accounts for 93-94% of revenue, exposure to this risk is very high.
The company posted an operating loss in every quarter from 2025Q2 through 2026Q2. That losses persisted even in 2026Q2, when revenue rebounded, shows cost-price spread pressure remains unresolved. As long as low-utilization conditions persist, fixed-cost burden could constrain any earnings recovery.
Utilization at the eight major rebar makers has remained below 70%, and the combined operating loss at the three specialized rebar producers reportedly widened in first-half 2026.
Structural difficulties, where export expansion or price-hike attempts are offset by rising raw material costs, are apparent across the industry.
If domestic construction orders and starts fail to recover, weak rebar demand could persist for an extended period. Deteriorating financial conditions at smaller construction companies could also raise the risk of delayed receivables collection.
The construction cycle is difficult to predict given its dependence on government policy, interest rates, and real estate market conditions.
Steel scrap prices fluctuate significantly based on domestic and international benchmarks, and profitability can deteriorate quickly if the spread between input costs and selling prices narrows. Recently, domestic purchase price cuts and rising international prices have appeared simultaneously, creating mixed signals. Cost management capability remains a key determinant of earnings.
Changes in the trade environment, such as the EU's tightening Carbon Border Adjustment Mechanism and anti-dumping tariffs imposed by various countries, could affect export profitability. Domestically, whether steel will be included in production tax credits remains unconfirmed, leaving policy uncertainty.
The capital burden of investing in low-carbon transition equipment is also a factor to consider over the medium to long term.
Third-quarter 2026 results are expected around this time; check whether the 2026Q2 revenue rebound translates into profitability improvement and whether operating losses narrow further.
Monitor whether steel is included in domestic production tax credits during deliberation of the government's 2026 tax reform bill.
Check the direction of the cost-price spread through fourth-quarter rebar benchmark price adjustments and steel scrap price trends.
Track the Korea Iron & Steel Association's monthly rebar demand and utilization statistics to confirm whether actual shipment volumes recover as the construction peak season arrives.
Kisco Corp is navigating a difficult stretch, posting an annual loss in 2025 and operating losses in each of the most recent four quarters, amid structural industry pressure from a construction downturn and shrinking rebar demand.
Still, a low debt ratio of 12.4% and operating cash flow that remained positive even during the net-loss period indicate the balance sheet has not been materially impaired.
The sharp revenue rebound in 2026Q2 versus 2026Q1, alongside a narrower loss, hints at a possible volume recovery tied to the peak construction season, though it is still too early to conclude that cost-price spread pressure has been fully resolved.
At the industry level, low utilization across the eight major rebar makers and policy uncertainty around tax support and trade measures remain live variables.
The dividend track record and high treasury stock ratio serve as reference points on shareholder returns, but their future sustainability depends on the pace of earnings recovery. Investors should weigh the upcoming third-quarter results together with rebar market and policy developments before forming a view.
Report written 2026-09-05 · Data as of 2026-09-04
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