SONGWON Industrial Group announces Q1 2026 Financial Results

Publishing date: 13.05.2026

SONGWON Industrial Group today released its financial results for the 1st quarter of 2026. After a challenging 2025, SONGWON started the new year strongly, with higher revenues compared to the previous quarter and improved profitability. In Q1/2026, SONGWON Industrial Group achieved consolidated sales of 269,204 million KRW and reported a 272.5% year-on-year increase in net profit to 18,091 million KRW, partly due to a one-off adjustment to the employee benefit program. Compared to the same period of the previous year, gross profit increased 35.9% to 55,362 million KRW in Q1/2026 and the gross profit margin rose from 14.8% to 20.6%.
 

SONGWON delivered a solid performance in Q1/2026, achieving strong earnings growth against a backdrop of a complex macroeconomic environment and ongoing geopolitical tensions impacting global markets. In the 1st quarter of 2026, Division Industrial Chemicals recorded consolidated sales of 191,003 million KRW (Q1/2025: 208,133 million KRW). Division Performance Chemicals recorded consolidated sales of 78,201 million KRW, up 15.6% compared to Q1/2025 (67,620 million KRW).

SONGWON’s key Polymer Stabilizers business performed strongly in Q1/2026, supported by higher volumes compared to both the prior-year period and expectations, with January and February stronger than anticipated. In March, heightened geopolitical tensions tightened supply conditions and increased customer demand, which drove volumes higher. Compared to Q4/2025, SONGWON’s Fuel & Lubricant Additives also recorded higher volumes in Q1/2026, supported by prior-quarter destocking and timing-related logistics effects, with demand and pricing conditions stable throughout Q1/2026. After a subdued start to the quarter and a strong finish in March, Coatings recorded higher net sales and volumes in Q1/2026 compared to Q4/2025, in line with seasonal patterns.

In Q1/2026, market demand remained neutral for Tin Intermediates, with the business seeing no sustained recovery but fluctuations between lower revenues in February and a rebound in March due to the impact of the Lunar New Year holiday. During Q1/2026, market conditions were weak in Japan and EMEA, but stable in Korea and SEA, with price competition intensifying in the U.S. Despite Tin ingot prices trending downwards throughout the quarter, they remained above expectations and supported revenues. PVC saw demand improve slightly in Q1/2026, particularly in Korea, with SEA remaining stable and EMEA continuing to develop strongly, especially in Africa and the Middle East. During the 1st quarter, SONGWON maintained its market positions in existing regions and developed emerging opportunities in new markets.

SONGWON expects 2026 to remain challenging, with ongoing macroeconomic and geopolitical uncertainty, including a difficult trade environment, regulatory developments and a slowdown in key markets, weighing on customer confidence and demand visibility. Together with higher logistics costs, tighter supply conditions and industry-wide price adjustments, these factors are expected to increase volatility and limit forecasting accuracy. Going forward, the Group will closely monitor market developments, swiftly respond to changing conditions and safeguard profitability through disciplined pricing and targeted actions. By leveraging its global footprint and supply capabilities, SONGWON will focus on maintaining high product quality and reliable supply for customers, while pursuing selected opportunities aligned with its strategic priorities and adopting a prudent approach to navigating market uncertainty.