PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Dongil Rubber Belt posted an improved 5.1% operating margin in 2025, but its dependence on a few large customers such as Caterpillar and volatile non-operating items across quarters remain notable features.
2025 revenue reached KRW 364.6 billion with operating profit of KRW 18.56 billion, a 5.1% operating margin, the highest in the past four years.
Revenue rose for four consecutive quarters from KRW 88.6 billion to KRW 103.5 billion over 2025Q3-2026Q2.
In 2026Q1, net income attributable to owners (KRW 10.37 billion) exceeded operating profit (KRW 7.78 billion), suggesting a meaningful non-operating contribution.
The rubber track business is expanding new customer relationships in the Americas, Japan, and Europe on the back of supply to global heavy equipment makers such as Caterpillar and John Deere.
The debt ratio declined for four straight years, from 74.9% in 2022 to 48.7% in 2025, reflecting steady balance-sheet improvement.
Dongil Rubber Belt operates through a rubber belt division, an other rubber products division, and other segments, producing power transmission belts, conveyor belts, rubber tracks, medical devices, and construction materials respectively.
Power transmission belts from the rubber belt division supply a wide range of industrial applications including automobiles, agricultural machinery, and home appliances, while conveyor belts are used in high-temperature, heavy-load environments such as POSCO steel mills and cement plants.
The core of the other rubber products division is rubber tracks and undercarriage systems used in excavators and combines, with major customers including domestic conglomerates such as Hyundai Mobis, POSCO, and Hyundai Steel, alongside global construction and agricultural equipment makers like Caterpillar, Bobcat, John Deere, and Kubota.
The company achieved a Platinum grade in Caterpillar's supplier evaluation and has received multiple top-supplier awards from John Deere, underscoring its quality credentials. In rubber tracks, it competes with Japan's Bridgestone, and management stated in early 2024 that the company ranked second globally.
The company has also diversified into seismic isolation systems for civil engineering and construction, as well as healthcare (medical devices), moving beyond its traditional industrial rubber product base. Its largest shareholder is holding company DRB Dongil Co., Ltd.
(KRX:004840); Dongil Rubber Belt was established via a spin-off in 2012 and became a subsidiary of DRB Dongil in 2013.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩89.2B | ₩6B | 6.7% |
| 2025Q3 | ₩88.6B | ₩2.7B | 3.1% |
| 2025Q4 | ₩99.4B | ₩7.1B | 7.1% |
| 2026Q1 | ₩95.4B | ₩7.8B | 8.2% |
| 2026Q2 | ₩103.5B | ₩7.5B | 7.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩390.4B | ₩8.1B | ₩7.8B | 2.1% | 3.7% | 74.9% |
| 2023 | ₩357.8B | ₩13.7B | ₩9.6B | 3.8% | 4.3% | 67.2% |
| 2024 | ₩337B | ₩9.6B | ₩10.9B | 2.8% | 4.8% | 54.7% |
| 2025 | ₩364.6B | ₩18.6B | ₩10.7B | 5.1% | 4.5% | 48.7% |
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
Annual revenue declined from KRW 390.4 billion in 2022 to KRW 357.8 billion in 2023 and KRW 337.0 billion in 2024, before rebounding to KRW 364.6 billion in 2025.
Operating margin fluctuated from 2.1% in 2022 to 3.8% in 2023 and 2.8% in 2024, then rose to 5.1% in 2025, the highest level in the past four years, suggesting improved cost control and pricing pass-through.
On a quarterly basis, operating profit fell sharply from KRW 5.97 billion in 2025Q2 (on revenue of KRW 89.18 billion) to KRW 2.71 billion in 2025Q3 (on revenue of KRW 88.63 billion), before recovering to KRW 7.07 billion, KRW 7.78 billion, and KRW 7.51 billion in 2025Q4, 2026Q1, and 2026Q2 respectively, alongside revenue growth to KRW 99.36 billion, KRW 95.37 billion, and KRW 103.55 billion.
However, net income attributable to owners followed a different path: in 2025Q2 it was only KRW 0.28 billion despite KRW 5.97 billion of operating profit, while in 2026Q1 it reached KRW 10.37 billion, exceeding the KRW 7.78 billion operating profit for that quarter.
This indicates that sizable non-operating items (likely including foreign exchange, equity-method gains, or one-off factors) affected both periods, making net income difficult to predict from operating results alone.
Trailing four-quarter (2025Q3-2026Q2) net income attributable to owners totaled KRW 25.72 billion, already well above the full-year figures for 2024 (KRW 10.89 billion) or 2025 (KRW 10.66 billion).
On the cash flow side, operating cash flow swung from a large inflow of KRW 41.96 billion in 2023 to KRW 13.24 billion in 2024 and an outflow of KRW 5.13 billion in 2025, reflecting significant year-to-year volatility likely tied to raw material procurement, inventory management, and the timing of large-contract revenue recognition.
The industrial rubber products market that Dongil Rubber Belt operates in is divided between traditional segments such as power transmission and conveyor belts and construction/agricultural machinery components such as rubber tracks and undercarriage systems, with the latter viewed as having relatively greater growth potential amid expanding outsourcing by global heavy equipment makers.
In the rubber track market, Japan's Bridgestone holds a leading position while Dongil Rubber Belt pursues a challenger position, building supply relationships with multiple global OEMs including Caterpillar, John Deere, Bobcat, and Kubota.
For the nine months through Q3 2025, consolidated revenue rose 3.9% year-on-year, operating profit rose 30.0%, and net income rose 29.6%, confirming that improving industry conditions were flowing through to financial results.
The rubber track segment is pursuing new customer development and market share gains centered on OE supply to global construction equipment makers in the Americas, Japan, and Europe.
In the more mature domestic market for power transmission and conveyor belts, performance is tied to utilization rates and maintenance demand in Korea's steel and cement industries, including customers such as POSCO and Hyundai Steel.
Natural and synthetic rubber price movements directly affect the cost structure, and the degree to which these costs can be passed through to selling prices has consistently been identified as a key driver of margin direction.
In May 2024, the company signed a rubber track supply contract worth KRW 277.6 billion with Caterpillar in the United States, running from June 1, 2024 to May 31, 2027, over which the revenue is expected to be recognized.
At the time of signing, this contract size was equivalent to roughly 77.6% of the prior year's revenue, meaning the progress of this contract and whether it is renewed upon expiry could have a meaningful impact on future results.
The Vietnam plant expansion completed by the end of 2024 was aimed at increasing production capacity to meet rising rubber track demand, with management stating this would support global market share gains.
The company has also established the DRB-KAIST Sketch the Future research center with KAIST to pursue AI-driven innovation in product design and development processes, which has been cited as a factor supporting medium-to-long-term competitiveness through shorter new product lead times.
The rubber track segment continues to seek new OE customer relationships in the Americas, Japan, and Europe, attempting to diversify its customer base beyond Caterpillar and John Deere.
The actual pace of this customer diversification and whether new contracts are disclosed will likely serve as indicators of the sustainability of future revenue growth.
Dongil Rubber Belt's shares trade at a level below the company's net asset value, meaning the stock has continued to trade at a discount to book value.
On the earnings side, the relatively low operating margins seen from 2022 through 2024 improved in 2025, and trailing four-quarter net income has already exceeded prior full-year figures, which can be read as a phase of earnings recovery.
However, quarterly net income has repeatedly moved in a different direction from operating profit, so whether this earnings recovery reflects a structural improvement in the core business or a temporary effect from non-operating items is something that will require confirmation from additional quarterly results.
The company has continued to pay cash dividends in recent years, and the continuity of this shareholder return policy is also worth monitoring.
Given that its market capitalization places it among smaller-cap names within the KOSPI chemicals sector, it is also worth noting that price volatility tied to trading volume and supply-demand conditions can be relatively pronounced.
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
Operating margin reached 5.1% in 2025, the highest level in the past four years and above the 2022-2024 average. This appears to reflect a combination of revenue growth and cost management effects, and quarterly operating profit has remained in the KRW 7-8 billion range through 2026. If this trend continues, it could support the durability of the profitability improvement.
The company counts global construction and agricultural equipment makers such as Caterpillar, John Deere, Bobcat, and Kubota among its customers, and it achieved a Platinum grade in Caterpillar's supplier evaluation. This suggests recognition from global corporations in terms of quality and reliability.
The rubber track segment is expanding its customer base by developing new relationships in the Americas, Japan, and Europe.
The debt ratio fell for four consecutive years, from 74.9% in 2022 to 48.7% in 2025, steadily strengthening financial stability. This could serve as a positive factor in securing financial flexibility for future investment or shareholder returns.
The Caterpillar supply contract signed in 2024 was equivalent to roughly 77.6% of the prior year's revenue at the time of signing, indicating substantial reliance on a single customer and contract.
The contract runs through May 2027, and earnings volatility could increase depending on whether it is renewed or its scope changes upon expiry.
In 2025Q2, net income attributable to owners was only KRW 0.28 billion despite operating profit of KRW 5.97 billion, while in 2026Q1 net income of KRW 10.37 billion exceeded operating profit of KRW 7.78 billion. Such large non-operating swings make it difficult to forecast future net income purely from operating results.
Fluctuations in natural and synthetic rubber prices directly affect the cost structure, and the ability to pass these costs through to selling prices has been identified as a key margin driver.
Given the significant share of overseas customers and revenue, the company is also exposed to foreign exchange fluctuations, which can be one source of the non-operating volatility seen in quarterly results.
The large Caterpillar contract accounts for a substantial share of revenue, so any change in that customer's ordering policy or a downturn in its business could have a significant impact on sales.
While the customer base is partially diversified with John Deere, Bobcat, and Kubota, exposure to a small number of large customers remains.
Prices of raw materials such as natural and synthetic rubber fluctuate with global market conditions and directly affect costs. With a high share of overseas revenue, the company is also exposed to exchange rate movements, and these factors have contributed to uncertainty in forecasting quarterly results.
The rubber track and undercarriage segment is linked to global construction and agricultural equipment cycles, while the conveyor belt segment is tied to capacity utilization in heavy industries such as steel and cement. A slowdown or reduced investment in these end markets could translate into weaker demand.
The Q3 2026 earnings disclosure is expected around this time, and it will be important to check whether the four-quarter revenue growth streak and the 5%-plus operating margin level are maintained.
This marks the expiry of the KRW 277.6 billion rubber track supply contract with Caterpillar; whether it is renewed or a follow-on contract is disclosed will be an important variable for revenue continuity.
International natural and synthetic rubber price trends should be monitored continuously to assess how cost burdens and pricing pass-through capacity affect future operating margins.
The regular shareholders' meeting is expected to disclose the confirmed FY2026 results and dividend policy, providing an opportunity to check the continuity of shareholder return policy.
Dongil Rubber Belt showed signs of profitability recovery in 2025, posting a 5.1% operating margin, the highest in four years, while its debt ratio declined for four consecutive years, improving its financial structure.
The rubber track business, built on global blue-chip customers such as Caterpillar and John Deere, has been expanding its customer base in the Americas, Japan, and Europe, which stands out as a positive factor.
On the other hand, the concentration risk from the large Caterpillar contract, which accounts for a substantial share of revenue, along with quarterly net income volatility that has moved in a different direction from operating profit, are factors that make earnings difficult to predict.
Exposure to raw material prices and foreign exchange, as well as sensitivity to end-market cycles in construction equipment, agricultural machinery, and steel, also warrant continued attention.
The stock trades at a discount to net asset value, and how this valuation interacts with future earnings trends will require further confirmation through upcoming quarterly results and developments regarding the renewal of the Caterpillar contract.
Report written 2026-09-05 · Data as of 2026-09-04
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