PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩1,600 per share · Prices as of the 2026-10-02 close
KCC Glass swung back to a small operating profit in the second quarter of 2026 after posting a full-year operating loss in 2025, but the company remains caught between structural weakness in its core glass business and growth in its interior materials segment.
2025 consolidated revenue was KRW 1.9006tn with an operating loss of KRW 75.2bn, reversing from the prior year's profit
Q2 2026 revenue reached KRW 577.1bn with operating profit of KRW 4.8bn, the first quarterly profit in five quarters
The glass business faces structural pressure from the domestic construction downturn and competition from imported flat glass
The interior materials (HomeCC) segment is expanding growth via premium flooring and B2C remodeling products
Overseas production and export diversification is underway through the Indonesian flat glass plant
KCC Glass was established in 2020 through a spin-off from KCC, specializing in architectural and automotive glass as well as interior building materials, with its business organized into three segments: glass, interior materials, and concrete piles.
The glass segment produces architectural flat and processed glass along with automotive safety glass, while the interior segment covers PVC flooring such as engineered flooring and LVT, lamifilm, and B2C materials and installation services under the HomeCC brand.
The pile business is a smaller unit producing and selling concrete piles. The company operates several large-format interior and building materials retail stores, including its Incheon outlet, the largest of its kind in Korea with roughly 30,000 product lines.
On overseas expansion, the company decided in 2021 to establish an Indonesian subsidiary, which began producing architectural glass in 2024, and is expanding exports to Southeast Asia based on annual production capacity of about 438,000 tons.
The company has said that glass once accounted for around 70 percent of revenue, but that share has gradually declined as the interior business has gained emphasis.
The glass business is closely tied to construction market conditions, so when housing starts and orders slow, performance tends to weaken accordingly, prompting the company to respond through premiumization and diversification of its interior lineup and participation in overseas trade shows.
In the domestic B2C interior and remodeling market, the company competes against comprehensive building materials makers such as LX Hausys and Hyundai L&C.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩512.9B | -₩35.4B | −6.9% |
| 2025Q3 | ₩481.2B | -₩14.2B | −3.0% |
| 2025Q4 | ₩457.8B | -₩19.9B | −4.4% |
| 2026Q1 | ₩466.6B | -₩10.1B | −2.2% |
| 2026Q2 | ₩577.1B | ₩4.8B | 0.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩119.2B | ₩94B | 8.3% | 6.5% | 53.2% |
| 2023 | ₩1.7T | ₩95B | ₩81.7B | 5.7% | 5.5% | 49.4% |
| 2024 | ₩1.9T | ₩57.2B | ₩37B | 3.0% | 2.5% | 67.5% |
| 2025 | ₩1.9T | -₩75.2B | -₩83.6B | −4.0% | −6.1% | 67.8% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Annual revenue rose steadily from KRW 1.4437tn in 2022 to KRW 1.6801tn in 2023 and KRW 1.9033tn in 2024, but operating profit shrank over the same period from KRW 119.2bn in 2022 to KRW 95.0bn in 2023 and KRW 57.2bn in 2024, before the company posted revenue of KRW 1.9006tn and an operating loss of KRW 75.2bn in 2025, turning negative.
Net income attributable to owners followed the same pattern, moving from profits of KRW 94.0bn in 2022, KRW 81.7bn in 2023, and KRW 37.0bn in 2024 to a net loss of KRW 83.6bn in 2025.
Operating cash flow also swung from solid inflows of KRW 173.1bn in 2023 and KRW 203.6bn in 2024 to an outflow of KRW 18.0bn in 2025, reflecting the profitability deterioration in cash generation as well.
On a quarterly basis, operating losses ran from KRW 35.4bn in Q2 2025 to KRW 14.2bn in Q3 and KRW 19.9bn in Q4, before narrowing sharply to a loss of KRW 10.1bn on revenue of KRW 466.6bn in Q1 2026.
In Q2 2026, revenue reached KRW 577.1bn with an operating profit of KRW 4.8bn, the first quarterly operating profit in five quarters, though net income attributable to owners remained negative at roughly KRW 11.8bn.
Over the trailing four quarters (Q3 2025 through Q2 2026), cumulative net income attributable to owners stood at around negative KRW 56.0bn, keeping the annualized figure in loss territory.
The debt ratio eased from 53.2 percent in 2022 to 49.4 percent in 2023 before rising again to 67.5 percent in 2024 and 67.8 percent in 2025, indicating a modest increase in balance-sheet leverage.
On balance, revenue scale has held up while cost and fixed-cost pressure has weighed on the profit line, and whether the Q2 2026 return to profit marks a genuine turning point remains to be confirmed by subsequent quarters.
Korea's building materials industry structurally suffers from a lag between the recovery signal of housing starts and its actual reflection in revenue, given the gap between starts and completions.
According to Ministry of Land, Infrastructure and Transport data, nationwide housing starts from January to July this year totaled 138,383 units, up 11.1 percent from the same period last year, while completions over the same period fell 41.4 percent year over year to 135,513 units, delaying the point at which finishing-materials makers see the benefit in their top line.
The glass segment is closely tied to construction market conditions, such that a decline in starts and orders tends to translate directly into weaker results, and intensifying competition from imported flat glass along with pressure on domestic pricing has also weighed on the segment in recent years.
Against this backdrop, building materials companies are turning to existing-home remodeling and the B2C market to offset the decline in new completions, supported by a trend in which nationwide housing transaction volume from January to July rose 8.8 percent year over year to 459,459 units, providing a base for moving- and remodeling-related demand.
Rival LX Hausys demonstrated the payoff of a B2C pivot, with second-quarter revenue of KRW 939.7bn, up 14.7 percent year over year, and operating profit of KRW 54.9bn, up 329 percent, highlighting B2C strategy as a differentiating factor within the sector.
Meanwhile, early-stage inputs such as cement and ready-mix concrete tend to benefit first from a construction recovery, while finishing-material segments such as glass and interior products typically see the effect materialize with a lag.
The government has expanded its 2026 SOC budget compared with the prior year and continued a stance of easing redevelopment and reconstruction regulations, though the pace of recovery in the private housing market, particularly outside the capital region, is still viewed as limited.
The company attributed its Q2 2026 improvement to higher revenue and profit driven by production and organizational efficiency gains, and said it plans to pursue further profitability improvement in the second half through an expanded mix of high-value-added products and market diversification.
In the interior segment, the company launched the premium PVC flooring line SenseRay targeting the North American and European markets, and has been building overseas networks by participating in major flooring trade shows abroad.
Domestically, in response to declining new completions, the company is targeting existing-home renovation demand through selectable remodeling offerings such as the HomeCC Space Package, which lets customers choose only the rooms they want to renovate.
In the glass segment, stabilizing operations and expanding exports from the Indonesian plant are cited as a medium-to-long-term growth driver, alongside continued development of high-value-added glass products such as high-insulation and smart glass.
Still, given that domestic housing completions continue to fall sharply, the finishing-materials-centric business structure means the felt timing of a revenue recovery could lag behind the recovery in housing starts.
The company has said its overseas expansion remains at an early stage but expects performance to improve from a longer-term perspective, so the shifting revenue mix between the interior and glass segments and the growing contribution of overseas sales will likely be key indicators to monitor in coming quarters.
The current share price trades at a substantial discount to book value, with the price-to-book ratio positioned well below 1x. This can be linked to the pattern of a full-year net loss in 2025 and a continuing net loss on a trailing four-quarter basis.
Compared with the 2022–2024 period, when both the glass and interior businesses remained profitable, the recent profit deterioration appears to be reflected in the market's valuation assessment.
On dividends, the company has maintained a certain level of per-share cash dividend even through the recent loss-making stretch, illustrating a balance between financial capacity and dividend policy.
Whether the Q2 2026 return to operating profit proves durable could shift how the market weighs the share price against net asset value, a question that will require confirmation from subsequent quarterly results.
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 2026-09-04
Q2 2026 revenue reached KRW 577.1bn with an operating profit of KRW 4.8bn, marking the first quarterly operating profit in five quarters. The company said production and organizational efficiency gains contributed to the improvement.
The rapid narrowing of losses from a KRW 10.1bn operating loss in Q1 to profit in Q2 can be read as a signal of improving cost structure.
The HomeCC brand is expanding its share of premium products such as flooring, lamifilm, and eco-friendly G-PET film, growing the interior segment's weight in the business. The recently launched HomeCC Space Package targets partial-remodeling demand during a period of declining new completions. LX Hausys's clear performance improvement from B2C expansion suggests the strategy has some validity.
The Indonesian flat glass plant began operating in 2024 with annual capacity of about 438,000 tons and is expanding exports to Southeast Asia and elsewhere, leveraging its geographic advantage. This is cited as a buffer reducing reliance on the domestic construction cycle.
The company acknowledges the overseas expansion is still at an early stage but expects it to contribute to results over the longer term.
Nationwide housing completions fell 41.4 percent year over year from January to July, delaying the point at which the finishing-materials-centric glass and interior segments see revenue benefits. Even as starts rise, there is typically a multi-year lag before the effect reaches actual revenue contribution. This adds uncertainty to the durability of any near-term earnings improvement.
The glass business is closely tied to construction market conditions, structurally weakening whenever starts and orders decline. Intensifying competition from imported flat glass and pressure on domestic pricing are also cited as persistent burdens.
The swing to a full-year operating loss in 2025 can be read as this structural pressure materializing fully in results.
The debt ratio rose from 49.4 percent in 2023 to 67.5 percent in 2024 and 67.8 percent in 2025. Operating cash flow also swung from an inflow of KRW 203.6bn in 2024 to an outflow of KRW 18.0bn in 2025, weakening cash generation. With the annual net loss persisting, the cushion in financial capacity appears to have narrowed relatively.
Korea's housing market shows pronounced regional polarization, with limited prospects for recovery in regional construction activity. If the sharp decline in completions persists, the recovery in finishing-materials revenue could be delayed further than expected.
Whether the government's expanded SOC investment and regulatory easing translate into actual capital execution also needs monitoring.
Fluctuations in key raw materials such as glass and PVC, as well as energy costs, directly affect margins. A sharp rise in international commodity prices or logistics costs could compress near-term profitability due to lags in passing costs through to selling prices. Expanding overseas production, such as the Indonesian plant, also introduces exposure to currency fluctuations.
Korea's architectural flat glass market has historically faced pressure on domestic pricing from competition with imported flat glass. In the interior segment, B2C competition with comprehensive building materials makers such as LX Hausys and Hyundai L&C is also intensifying. Continued inflow of low-cost imported glass could constrain margin recovery in the domestic glass business.
The Q3 2026 earnings disclosure is expected around this time, allowing a check on whether the Q2 return to operating profit continued and how the glass and interior segments each contributed to the change.
Monthly housing statistics from the Ministry of Land, Infrastructure and Transport should be tracked to gauge the gap between starts and completions and estimate when this translates into actual finishing-materials revenue.
Utilization rates at the Indonesian plant and the expansion of export volumes, along with changes in the sales mix of high-value-added glass products such as smart glass, should be monitored.
The revenue contribution of B2C remodeling products such as the HomeCC Space Package and the trend in the interior segment's operating profit should be reviewed to assess tangible progress in the business portfolio shift.
KCC Glass posted a full-year operating and net loss in 2025 before showing a modest but genuine turn to quarterly operating profit in Q2 2026.
Even so, on a trailing four-quarter basis the company remains in a net loss position, and balance-sheet pressures such as a rising debt ratio and a swing to negative operating cash flow are also evident.
The glass segment continues to face structural pressure from the domestic construction downturn and import competition, while the interior segment has held up relatively better on the back of B2C remodeling demand and premium product expansion.
Overseas production and export diversification through the Indonesian plant is cited as a medium-to-long-term growth driver but remains at an early stage. The current share price trades at a substantial discount to net asset value, which can be interpreted as the market's reflection of recent earnings weakness.
Q3 2026 results, housing starts and completions data, and the shifting contribution of the interior and overseas businesses will likely be the key indicators for gauging the direction of the earnings trend going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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