Songwon Industrial Group released its financial results for the third quarter of 2025. The Group reported consolidated sales of 258,616 million KRW in the quarter, a decline compared to sales in the same period of the previous year. The company recorded a gross profit margin of 13.6% and a net profit of 1,697 million KRW.

For the first nine months of 2025, consolidated sales totaled 799,777 million KRW, reflecting a slight decline from the same period in 2024. The Group recorded year-to-date net profit of 5,073 million KRW and a gross profit margin of 14.3%.

The company provided a detailed breakdown of its financial performance:

Credit: SONGWON

The global chemical industry continued to experience volatility in the third quarter. Division Industrial Chemicals recorded quarterly sales of 187,517 million KRW compared to the prior year’s period and year-to-date sales of 586,669 million KRW. Division Performance Chemicals reported quarterly sales of 71,099 million KRW and year-to-date sales of 213,108 million KRW.

Division Industrial Chemicals faced ongoing weak market conditions, intense competition, high energy costs in Europe, and the effects of trade measures on Asian markets. Improved pricing, lower raw material costs, and favorable currency effects helped mitigate some of the impact. Polymer Stabilizers saw lower volumes due to weaker demand in the United States and the removal of Hindered Amine Light Stabilizers from the portfolio, though turnover and margins remained aligned with expectations. Fuel and Lubricant Additives maintained steady volumes with softening revenues shaped by raw material pricing and geopolitical factors. Coatings recorded lower volumes and revenues in the quarter due to weaker demand and persistent pricing pressure.

Division Performance Chemicals delivered solid performance despite ongoing challenges. BU Tin recorded lower volumes due to weaker demand in Japan and EMEA and continuing global logistics constraints, but revenues held firm. PVC defended market share in Korea and remained active in new opportunities, with strong development in EMEA. Solution Polyurethanes and Thermoplastic Polyurethanes performed in line with expectations due to strong overseas sales.

Songwon anticipates a challenging fourth quarter influenced by seasonal factors, subdued global demand, overcapacity, and year-end inventory reductions. Despite expectations of slightly lower volumes compared to 2024, improved pricing and cost efficiency are expected to support turnover and gross margin. Strategic initiatives, including a new greenfield One Pack Systems plant in Saudi Arabia, are positioned to support future growth and help the company respond to evolving customer needs.

The full third-quarter report is available at www.songwon.com/investors/reports-publications.