4 Sept 2026
SONGWON Industrial Group delivered a significant improvement in financial performance during the second quarter of 2026, supported by stronger sales volumes and robust demand across its additives business.
The group recorded consolidated sales of KRW 328.5 billion (USD 237.1 million) in Q2, representing a 23.8% increase compared with the same period last year. Net profit stood at KRW 29.6 billion (USD 21.4 million), marking a turnaround from the net loss reported in Q2 2025. For the first six months of the year, SONGWON generated revenues of KRW 597.7 billion (USD 431.4 million), up 10.5% year on year. Its gross profit margin also strengthened, rising 7.6 percentage points to 22.3%. Net profit for the period reached KRW 47.7 billion (USD 34.4 million).
Johannes Honegger, Group Chief Financial Officer at SONGWON, attributed the improvement to increased volumes, effective pricing and tight operational management. He said the company had also maintained supply continuity and responded to changing customer requirements despite challenging market conditions.
Industrial Chemicals drives growth
SONGWON's Industrial Chemicals division, which includes its fuel and lubricant additives operations, was the group's strongest contributor during the quarter. Revenue from the division climbed 27.0% year on year to KRW 242.5 billion (USD 175.0 million), compared with KRW 191.0 billion (USD 137.9 million) in Q2 2025. For the first half, Industrial Chemicals generated KRW 433.5 billion (USD 312.9 million), an 8.6% increase from KRW 399.2 billion (USD 288.1 million) a year earlier.
Demand for fuel and lubricant additives was stronger than SONGWON had anticipated. Volumes increased compared with the first quarter, with some customers placing additional orders as a precaution amid uncertainty surrounding supply chains and geopolitical developments.
The company said its global manufacturing footprint enabled it to respond quickly to the increase in demand. Revenue per kilogram and formula-based pricing remained broadly unchanged from the previous quarter. Polymer stabilisers also delivered a particularly strong performance during Q2. Increased demand combined with tighter supply conditions resulted in higher volumes, selling prices and margins. The coatings business also recorded a notable improvement in net sales. Pricing measures helped compensate for increases in raw material and freight expenses, while sales volumes remained relatively stable.
Performance Chemicals also records double-digit growth
SONGWON's Performance Chemicals division reported second-quarter revenue of KRW 86.0 billion (USD 62.1 million), representing a 15.6% increase from KRW 74.4 billion (USD 53.7 million) in Q2 2025. Revenue for the first half reached KRW 164.2 billion (USD 118.5 million), also up 15.6% from KRW 142.0 billion (USD 102.5 million) during the corresponding period of 2025.
Within the division, tin intermediates benefited from higher tin ingot prices, which contributed to stronger revenues and margins. However, volumes remained under pressure because of weak demand from automotive and catalyst-related applications. Geopolitical uncertainty also influenced the PVC market, creating opportunities as customers looked to diversify their supply sources and accelerate the qualification of alternative products.
The solution polyurethanes and thermoplastic polyurethanes businesses remained broadly consistent with their Q1 performance. Although volumes were slightly lower, pricing adjustments and customer pre-ordering helped support sales.
SONGWON expects market conditions in the third quarter to remain generally comparable with those seen in Q2. However, the company continues to face uncertainty stemming from geopolitical developments, macroeconomic conditions, supply chain disruptions and fluctuations in raw material costs. These factors are making it more difficult for customers to accurately forecast their requirements, limiting SONGWON's visibility beyond the third quarter.
Despite these challenges, the company's Q2 results indicate that stronger demand for fuel and lubricant additives, combined with pricing discipline and operational execution, played an important role in its return to profitability. The detailed article is published by https://www.songwon.com/ can be accessed from https://www.songwon.com/media/news/songwon-reports-strong-growth-and-improved-profitability-in-q2-2026
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