Songwon: Sales and Profitability Rise Significantly in the Second Quarter of 2026

South Korean specialty chemicals producer Songwon significantly increased both sales and earnings in the second quarter of 2026. Group sales rose by 23.8% year on year to KRW 328.5 billion. Gross profit doubled to KRW 78.1 billion, while the gross margin increased from 14.6% to 23.8%.

Operating profit reached KRW 39.8 billion, compared with KRW 8.6 billion in the second quarter of 2025. EBITDA increased from KRW 18.1 billion to KRW 50.8 billion, with the EBITDA margin improving accordingly from 6.8% to 15.5%. Songwon posted a net profit for the period of KRW 29.6 billion, compared with a loss of KRW 1.5 billion in the prior-year quarter.

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For the first half of 2026, the company reported sales of KRW 597.7 billion, up 10.5% from the prior-year period. Operating profit rose by 239.8% to KRW 66.4 billion. Net profit for the period reached KRW 47.7 billion, compared with KRW 3.4 billion in the first half of 2025.

The Industrial Chemicals business was the main growth driver. Its second-quarter sales increased by 27.0% to KRW 242.5 billion. According to the company, customers secured additional volumes amid supply chain uncertainty, rising input costs and the geopolitical situation. The polymer stabilizers business in particular benefited from stronger demand and tighter market supply, resulting in higher sales volumes, selling prices and margins.

Demand for fuel and lubricant additives also developed more strongly than expected. Sales volumes exceeded first-quarter 2026 levels, partly due to precautionary customer orders. In coatings, price adjustments to offset higher raw material and freight costs led to increased sales, while volumes remained largely stable.

The Performance Chemicals business increased quarterly sales by 15.6% to KRW 86.0 billion. In tin intermediates, higher tin prices supported sales and margins, while demand from the automotive and catalyst industries remained weak. In the PVC business, geopolitical uncertainty prompted customers to diversify their sourcing and accelerate the qualification of alternative products, according to the company.

For solution-based and thermoplastic polyurethanes, business remained broadly stable compared with the first quarter. Slightly lower sales volumes were offset by price adjustments in response to higher raw material costs and by advance orders placed to secure supply.

For the third quarter of 2026, Songwon expects the business environment to remain at a similar level to the second quarter based on current demand and order patterns. However, geopolitical and macroeconomic uncertainties, supply chain disruptions and fluctuating raw material prices continue to make it difficult to forecast future demand. Visibility beyond the third quarter therefore remains limited.

More information: www.songwon.com

Songwon Industrial Co., Ltd., Ulsan, Korea

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