SeAH Besteel Holdings posts net loss of 12.372 billion won in third quarter

Key Facts

SeAH Besteel Holdings reported a consolidated net loss of 12.372 billion won in the third quarter of 2026, compared with a profit of 33.866 billion won in the same period last year and 35.167 billion won in the second quarter. The results cover the period from July 1 to September 30, according to a disclosure table carried by DigitalToday. The loss attributable to the owners of the parent company was 12.994 billion won, compared with a profit of 33.693 billion won a year earlier and 34.727 billion won in the previous quarter. The results showed that revenue rose year on year while declining quarter on quarter. The company said the figures were preliminary and consolidated, and were prepared under Korean IFRS before the external audit was completed.

Revenue was 1.056333 trillion won, up 14.1% from the third quarter of 2025, but down 7.0% from the second quarter of 2026. Operating profit, meanwhile, was 14.440 billion won, down 46.4% year on year and 75.9% quarter on quarter. The loss before tax was 19.836 billion won, after the company reported pretax profit of 46.302 billion won a year earlier and 49.882 billion won in the previous quarter. Thus, annual revenue growth coincided with a sharp drop in operating profit and a shift to losses in pretax profit and net profit. The disclosure did not identify a specific cause for the loss.

The picture for the first nine months of 2026 differed from that of the latest quarter alone. Cumulative revenue rose 13.2% to 3.159643 trillion won, while operating profit increased 17.7% to 105.372 billion won, compared with the same period a year earlier. But cumulative net profit fell 23.0% to 44.692 billion won. These figures show year-on-year improvement in revenue and operating profit since the start of the year, alongside a decline in net profit, before the quarterly loss in the third quarter.

Among subsidiaries, SeAH Besteel reported sales of 575.917 billion won and operating profit of 2.995 billion won, but incurred a net loss of 9.227 billion won. SeAH Changwon Special Steel posted sales of 414.915 billion won and operating profit of 12.904 billion won, alongside a net loss of 17.558 billion won. SeAH Aerospace & Defense Materials, meanwhile, reported sales of 31.708 billion won, operating profit of 4.709 billion won and net profit of 2.144 billion won. The results highlight differing performance across the group’s units, with the aerospace and defense unit posting a net profit while the two steel companies recorded net losses.

In earlier estimates cited in a report on Daol, the expected pressure on profitability was attributed to lower scrap and nickel prices and the resulting decline in selling prices, alongside the use of high-cost raw materials. These factors remain attributable to the earlier analyst estimate, as the results disclosure did not establish them as causes of the loss recorded in the third quarter. On new product expansion, SeAH Besteel said on October 6 that it had developed and marketed special steel for robot reducers and began mass production after an initial supply to SPG in February. It said the material is intended for the flexspline component in robot reducers and that it plans to develop additional grades of special steel for humanoid robots.

The company said in June that the SeAH Superalloy Technologies production facility in Texas was targeted for completion during the second half of 2026, with planned annual capacity of 6,000 tons. In July, SeAH said it had secured manufacturing technologies for two key materials for hydrogen infrastructure, as part of its expansion into the hydrogen materials market. These announcements place the development of robotics, aerospace and hydrogen-related materials among the group’s announced activities, alongside the U.S. superalloy facility, whose target completion date remained in the second half of the year.