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
CS Bearing turned profitable in 2024 and extended clear revenue and operating profit growth through 2025, now facing a policy inflection point as Korea's offshore wind special act takes effect alongside a large-scale government bidding roadmap.
2025 revenue reached KRW 126.1 billion with operating profit of KRW 11.1 billion, lifting the operating margin to 8.8%, a sharp improvement from the prior year.
Second-quarter 2026 revenue of KRW 37.8 billion marked the highest of the last five quarters, though the operating margin dipped temporarily in the first quarter of the same year, showing continued quarter-to-quarter volatility.
Korea's offshore wind special act took effect on March 26, 2026, introducing a government-led planned-siting system, and the government announced an annual bidding roadmap targeting 55GW by 2035.
CS Wind is the largest shareholder with an affiliated stake, and the company counts GE, Vestas, and Siemens Gamesa among its global turbine customers.
The completion of the Hanan plant sale and the shift to a single Vietnam-based production system are cited as background factors behind the recent earnings improvement.
CS Bearing specializes in manufacturing pitch bearings and yaw bearings for wind turbines. Pitch bearings connect the blade to the rotor while yaw bearings connect the tower to the nacelle, and both are produced by machining forged carbon alloy steel rings.
Its major customers are global wind turbine makers including GE, Vestas, and Siemens Gamesa, with a particularly long-standing supply track record with GE. The largest shareholder is CS Wind, a wind tower manufacturer that holds a substantial affiliated stake in the company.
The company previously operated both a domestic Hanan plant and a Vietnam plant, but has since completed the sale of the Hanan facility and consolidated into a single Vietnam-based production system.
This shift is aimed at securing labor-cost competitiveness while focusing on developing high-value-added large bearings for offshore wind applications.
Competitively, the market includes large global bearing makers as well as Chinese manufacturers, and the company positions its Vietnam-based cost competitiveness and long-standing relationships with major customers such as GE and Vestas as key strengths.
The company has also been working to diversify its customer base to reduce past concentration on a single major client.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩32B | ₩2.8B | 8.7% |
| 2025Q3 | ₩32.2B | ₩3.3B | 10.4% |
| 2025Q4 | ₩33.7B | ₩3.7B | 11.1% |
| 2026Q1 | ₩28.8B | ₩1.8B | 6.3% |
| 2026Q2 | ₩37.8B | ₩3.4B | 9.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩49B | -₩8.8B | -₩17.4B | −18.0% | −20.0% | 78.9% |
| 2023 | ₩76.6B | ₩57,074,357 | -₩1.6B | 0.1% | −1.9% | 74.8% |
| 2024 | ₩105.4B | ₩2.1B | ₩2.5B | 2.0% | 2.7% | 57.8% |
| 2025 | ₩126.1B | ₩11.1B | ₩11.2B | 8.8% | 11.1% | 53.1% |
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
Consolidated 2025 revenue came to KRW 126.15 billion, up roughly 19.7% from KRW 105.41 billion in 2024, while operating profit surged to KRW 11.09 billion from KRW 2.11 billion in 2024, more than a fivefold increase.
The operating margin rose sharply from 2.0% in 2024 to 8.8% in 2025, and net profit attributable to owners reached KRW 11.23 billion, about 4.5 times the KRW 2.51 billion recorded in 2024.
Looking further back, 2022 saw a wide loss with revenue of KRW 49.0 billion, an operating loss of KRW 8.83 billion (margin of -18.0%), and a net loss of KRW 17.38 billion, while 2023 revenue grew to KRW 76.6 billion but operating profit was near breakeven at KRW 57 million and the net result was still a loss of KRW 1.61 billion.
In other words, the company moved through a loss-making phase in 2022-2023 before turning profitable in 2024 and expanding profit scale further in 2025.
On a quarterly basis, revenue and operating profit rose together from KRW 31.98 billion and KRW 2.77 billion in the second quarter of 2025 to KRW 32.16 billion and KRW 3.35 billion in the third quarter, and KRW 33.66 billion and KRW 3.73 billion in the fourth quarter.
However, the first quarter of 2026 saw revenue fall to KRW 28.84 billion and operating profit to KRW 1.83 billion, temporarily pushing the operating margin down to the low single digits, before recovering in the second quarter of 2026 to revenue of KRW 37.80 billion and operating profit of KRW 3.42 billion, the highest quarterly revenue in the past five quarters.
Net profit attributable to owners also expanded from KRW 1.71 billion in the second quarter of 2025 to the KRW 4.3-4.4 billion range in the third and fourth quarters, before fluctuating to KRW 2.09 billion and KRW 3.17 billion in the first and second quarters of 2026, respectively.
Summing the trailing four quarters (third quarter 2025 through second quarter 2026), both revenue and profit remain at solid annualized levels, supporting the view that the 2025 profit recovery is a continuing trend rather than a one-off event.
Korea's offshore wind industry is shifting from an individual private-developer-led model to a government-led planned-siting system, following the enforcement of the Offshore Wind Power Promotion and Industry Development Special Act on March 26, 2026.
The government established an Offshore Wind Power Committee under the Prime Minister's Office to review and decide on the designation of preliminary and development zones, aiming to shorten project timelines that previously took six to ten years.
In a mid-to-long-term bidding roadmap announced in June 2026, the government stated it would supply at least 4GW annually toward a cumulative 55GW target by 2035, with volumes rising from 4.0GW in 2026 to 5.0GW in 2027, 6.0GW in 2028, and 7.0GW in 2029.
In the first-half 2026 fixed-price competitive bidding for offshore wind, five projects totaling 1,786MW were selected, marking the first time a 2-to-1 bidding ratio was achieved since competitive bidding began in 2022.
This policy and order momentum is seen as a factor that could create a favorable business environment for component supplier CS Bearing alongside affiliates CS Wind (towers) and CS Wind Offshore (substructures).
However, it should also be considered that offshore wind projects are larger in scale than onshore projects and involve complex permitting and community acceptance procedures, which can create a time lag between policy announcements and actual revenue recognition.
Globally, major turbine makers such as GE, Vestas, and Siemens Gamesa continue to emphasize cost competitiveness in their supply chains, a dynamic in which Vietnam-based producers are viewed as having a relative pricing advantage.
The company is understood to have continued expanding capacity centered on its Vietnam production base, and past brokerage reports suggested that a ramp-up in new orders from Vestas could require additional capacity expansion beyond existing plant capabilities.
With the Hanan plant sale and the transition to a single Vietnam production system now complete, utilization rates under this new structure and the pace of volume growth from new customers are likely to be key variables shaping future profit trends.
On the industry side, the designation of preliminary offshore wind zones under the new special act is expected to move forward within 2026, making it worth monitoring whether Korea's offshore wind project pipeline becomes more concrete.
On the customer side, since production schedules and order flow from major turbine makers such as GE, Vestas, and Siemens Gamesa directly affect the timing of component revenue recognition, changes in individual customers' operating conditions could be reflected in results.
CS Wind, the largest shareholder, is also reported to be expanding onshore and offshore wind orders in the United States and Europe, meaning order flow at the affiliate level could indirectly affect component demand.
However, most of these plans and order-related items are based on disclosures, investor relations materials, or brokerage analysis, and their concrete status will need to be confirmed through future filings.
Having moved through a loss-making phase in 2022-2023 before turning profitable in 2024 and substantially expanding profit in 2025, a key point to watch is whether the company's valuation has been reassessed in line with this earnings recovery.
The stock appears to trade at a level broadly commensurate with the pace of profit recovery relative to its historical trading range, and its price relative to net asset value sits in a range that has not diverged sharply.
Dividend payments have not been confirmed in recent disclosures, suggesting the current phase weighs more toward profit reinvestment and balance sheet improvement than shareholder returns.
Samsung Securities, in a March 2026 report, presented a buy rating and a target price of KRW 9,700 for CS Bearing, and stated that the consensus target price based on two covering brokerages at the time was KRW 9,800.
It should be noted that such target prices are analyst estimates as of a specific point in time and are subject to change depending on subsequent earnings and industry developments.
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
The trajectory from losses in 2022-2023 to profitability in 2024 and an 8.8% operating margin in 2025 has broadly continued into the first half of 2026. Second-quarter 2026 revenue hit the highest level of the past five quarters, offsetting the temporary slowdown seen in the first quarter. If this continued improvement is sustained, it could also positively support balance sheet stabilization.
The enforcement of the offshore wind special act and the government's roadmap targeting 55GW by 2035 provide a favorable policy backdrop for Korea's wind value chain overall. The fact that first-half 2026 competitive bidding achieved a 2-to-1 ratio for the first time indicates genuine underlying project demand. As a component supplier, CS Bearing stands to be an indirect beneficiary of this trend.
In addition to its long-standing supply relationship with GE, the company continues to pursue customer diversification toward Vestas and Siemens Gamesa. The completion of the Hanan plant sale and the shift to a single Vietnam production system are also cited as strengths in securing labor-cost competitiveness. Synergies from shared sites and infrastructure with largest shareholder CS Wind are another factor of interest.
In the first quarter of 2026, revenue and operating margin fell noticeably from the prior quarter before recovering again in the second quarter, showing that quarterly variability remains significant.
This reflects the nature of large components, where revenue recognition can be uneven depending on order and delivery timing. While the annual trend is improving, quarterly results remain difficult to predict.
A significant portion of revenue depends on a small number of global turbine makers, so production delays or order reductions from a key customer could directly affect results. Some past brokerage reports have cited delays in a major customer's production schedule as a factor behind earnings forecast adjustments. While customer diversification is underway, this risk has not yet been fully resolved.
The offshore wind special act is still in its early implementation stage, and it remains to be seen whether follow-up procedures such as preliminary zone designation and development zone finalization proceed as scheduled.
Observers have noted that a time lag can exist between policy announcements and actual project groundbreaking that translates into revenue. Because policy expectations tend to be priced in before actual orders and revenue are confirmed, a gap can emerge between the two.
Revenue is concentrated among a small number of global turbine makers including GE, Vestas, and Siemens Gamesa, so changes in their production plans or order delays can significantly affect results.
Order volumes and price negotiation leverage for components can vary depending on the profitability conditions of wind turbine makers. While customer diversification is progressing, full diversification will take time.
The planned-siting system under the offshore wind special act is still in its early implementation stage, and uncertainty remains as to whether the designation of preliminary and development zones and related subordinate legislation will proceed as scheduled.
The possibility of procedural delays due to coordination among stakeholders such as local governments and fishery groups cannot be ruled out. Shifts in domestic or overseas policy direction could affect the actual timing of component demand realization.
Given the company's single-plant production structure in Vietnam, fluctuations in the KRW/USD and KRW/VND exchange rates, changes in local labor costs, and volatility in raw material prices such as forging steel can affect its cost structure.
Changes in global logistics costs or tariff policy could also act as variables given the export-heavy nature of the business. These external variables can contribute to greater quarterly margin volatility.
The 2026 third-quarter report is expected to be filed around this time, making it important to check whether the second-quarter revenue recovery continues and how the operating margin trends.
The government has indicated that the first batch of preliminary offshore wind zone candidates will be identified within this year, making it a point to check whether the actual project pipeline becomes more concrete.
This period may see disclosures or investor relations updates clarifying progress on new Vestas orders and the Vietnam second-plant expansion, warranting a check on whether capacity expansion translates into revenue.
The 2026 annual business report will be a point to reconfirm finalized annual results along with detailed segment revenue composition and customer-specific revenue shares.
CS Bearing has moved through a loss-making phase in 2022-2023 to turn profitable in 2024 and substantially expand profit scale in 2025, with revenue of KRW 126.1 billion and operating profit of KRW 11.1 billion, and has broadly continued an improving trend through the first half of 2026 despite some quarterly variability.
This is further layered with policy variables from the offshore wind special act enforced in March 2026 and the government's roadmap targeting 55GW of offshore wind bidding by 2035, drawing greater attention to Korea's overall wind value chain.
However, it should be considered that the company's revenue structure depends on a small number of global customers such as GE, Vestas, and Siemens Gamesa, meaning changes in their production or ordering schedules can directly affect results, and there may also be a time lag in the actual execution pace of offshore wind policy.
The shift to a single Vietnam-based production system is positive from a cost-competitiveness standpoint, but exposure to external variables such as exchange rates and raw material prices remains.
Investors will need to sequentially confirm whether this recovery trend continues through upcoming quarterly disclosures, progress on offshore wind preliminary zone designation, and customer-specific order news. This report is intended for informational purposes only and does not include a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
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.