SONGWON Industrial Group announces Q3/2025 financial results

Ulsan, South Korea – November 13, 2025 – SONGWON Industrial Group (www.songwon.com) today released its financial results for the 3rd quarter of 2025. During Q3/2025, the Group achieved consolidated sales of 258,616 million KRW, marking a -9.5% decline in revenue over sales recorded in the same quarter of the previous year of 285,779 million KRW. SONGWON reported a gross profit margin of 13.6% (Q3/2024: 17.6%) and a net profit of 1,697 million KRW.

During the first nine months of 2025, the Group reported consolidated sales of 799,777 million KRW, reflecting a marginal decline of -1.9% over the prior-year period (815,052 million KRW). Net profit was 5,073 million KRW and the gross profit margin stood at 14.3%, down from 16.5% in YTD September 2024.

In Million KRW	Q3			YTD September
In Million KRW	2025	2024	∆%	2025	2024	∆%
Sales	285,616	285,779	-9.5%	799,777	815,052	-1.9%
Gross profit	35,189	50,203	-29.9%	144,559	134,505	-14.8%
Gross profit margin	13.6%	17.6%		14.3%	16.5%
Operating profit	5,391	22,163	-75.7%	24,920	50,710	-50.9%
EBITDA	15,373	31,608	-51.4%	55,397	79,617	-30.4%
EBITDA margin	5.9%	11.1%		6.9%	9.8%
EBIT	4,075	21,599	-81.1%	23,436	49,132	-52.2%
EBIT margin	1.6%	7.6%		2.9%	6.0%
Profit for the period	1,697	11,492	-85.2%	5,073	28,729	-82.3%

The global chemical industry continued to face volatility in the 3^rd quarter of 2025, with challenging market dynamics influencing SONGWON’s overall results. Division Industrial Chemicals achieved Q3/2025 sales of 187,517 million KRW (Q3/2024: 216,115 million KRW) and YTD September 2025 sales of 586,669 million KRW, down 4.7% from 615,716 million KRW in the same period in 2024. Division Performance Chemicals reported sales of 71,099 million KRW in Q3/2025 (Q3/2024: 69,664 million KRW) and 213,108 million KRW YTD September 2025, up 6.9% from 199,336 million KRW in YTD September 2024.

In Q3/2025, Division Industrial Chemicals continued to face weak market conditions, intense competition, high energy costs in Europe and the effects of U.S. trade measures on Asian markets. However, improved pricing, lower raw material costs and favorable currency effects helped lessen the impact. In Q3/2025, Polymer Stabilizers saw lower volumes, driven by weaker demand in the U.S. and the removal of Hindered Amine Light Stabilizers from the product portfolio. Despite the volume decline, both turnover and margins stayed in line with expectations, supported by higher prices, beneficial exchange rates and lower manufacturing costs. Although market conditions were challenging in Q3/2025, Fuel and Lubricant Additives maintained steady volumes, supported by stable customer demand. Compared to the same quarter in 2024, revenues softened slightly, shaped by formula-linked raw material pricing, geopolitical factors, U.S. trade actions and the ongoing slowdown in China. Following a solid first half year, Coatings experienced a decline in volumes and revenues in Q3/2025, primarily due to weaker demand from the automotive and construction sectors and persistent pricing pressure across its markets.

Division Performance Chemicals delivered solid results in Q3/2025 despite ongoing market challenges. BU Tin reported lower volumes in the 3rd quarter, mainly due to weaker demand in Japan and EMEA, the intense competition across the other regions and ongoing global logistics challenges. However, revenues remained firm throughout the quarter, supported by higher tin ingot prices. While demand in Korea and Japan remained weak throughout Q3/2025, PVC successfully defended SONGWON’s market share and continued to explore new opportunities, with solid development in EMEA boosting performance overall. Despite subdued demand in Korea due to the continuing recession, Solution Polyurethanes and Thermoplastic Polyurethanes delivered results in line with expectations in Q3/2025 on the back of strong overseas sales.

Looking ahead, SONGWON anticipates that Q4/2025 will remain challenging and shaped by seasonal factors, weak global demand and industry overcapacities. Traditional year-end inventory reductions are expected to further compound these challenges, with customer caution and shorter lead times continuing to make forecasting difficult. Despite slightly lower full-year volumes compared with 2024, improvements in pricing and cost efficiency are expected to sustain turnover and gross margin. Strategic initiatives, including the recently announced greenfield investment in a new One Pack Systems (OPS) plant in Saudi Arabia, will support future growth. By executing its strategic priorities and maintaining operational agility, SONGWON aims to strengthen its market position, deliver long-term value and remain well-positioned to meet evolving customer and market expectations.

The Q3/2025 Report can be downloaded at: https://www.songwon.com/investors/reports-publications.