SeAH Besteel Holdings Reports 69.8% Increase in First-Quarter Operating Profit

Expansion of High Value-Added Products
Sales Mix Improvement Drives Growth
Recovery in Sales Volume and Price Increases
Significant Quarter-on-Quarter Performance Surge
Solid Demand in Aerospace and Defense
Subsidiaries Achieve Growth Together

SeAH Besteel Holdings announced that both its consolidated sales and operating profit increased in the first quarter of 2026.

SeAH Besteel Holdings CI.

Despite a challenging business environment, including a deterioration in global export conditions and an influx of low-priced imports, the company reported a 7.5% year-on-year increase in sales and a 69.8% rise in operating profit. This was achieved through expanding sales volume at key subsidiaries and improving the sales mix with a focus on high value-added products.

Compared to the previous quarter, results also improved significantly. Following the year-end off-season, sales volume recovered, and higher raw material prices led to increased selling prices, resulting in sales growth of 12.3% and an operating profit surge of 247.1%.

The subsidiary, SeAH Aerospace & Defense Materials, delivered solid results, driven by expanding global aviation demand and growth in the defense sector. A base effect from one-off costs in the previous quarter contributed further, with sales up 14.0% and operating profit up 58.0% quarter-on-quarter.

SeAH Besteel increased domestic sales of special steel through strategic marketing focused on industries with recovering demand, such as eco-friendly vehicles, social overhead capital (SOC), and defense, despite an influx of low-priced Chinese imports. As a result, compared to the same period of the previous year, sales rose by 6.0% and operating profit by 106.2%. Quarter-on-quarter, sales climbed 13.8% and operating profit soared by 3,212.1%, thanks to recovering sales volume and higher selling prices.

SeAH Changwon Integrated Special Steel also saw sales of stainless steel products increase due to expanded investment in semiconductor facilities and growing demand from AI data centers. Compared to the same period last year, sales were up 3.9% and operating profit up 13.3%. Quarter-on-quarter, sales increased by 11.2% and operating profit by 186.3%, driven by recovering sales volume and an expanded share of high value-added products.

SeAH Besteel Holdings forecasts continued uncertainty due to Middle East geopolitical risks and the spread of global protectionism. However, it expects the potential for negotiations between the United States and Iran to drive increased infrastructure reconstruction demand in the Middle East, and views China’s reinforced control over steel supply as a positive factor.

The company plans to expand sales of high value-added products in high-growth sectors such as eco-friendly vehicles, semiconductors, and nuclear power, while focusing on developing new markets. In addition, it aims to block the inflow of low-priced imports by responding to anti-dumping issues related to Chinese special steel products and to focus on the recovery of the domestic market.

Furthermore, SeAH Besteel Holdings will enhance its supply capabilities in the aerospace, space, and defense materials sectors by expanding synergies between its domestic subsidiaries and its U.S. special alloy manufacturing subsidiary. The company will build a global supply chain centered on SeAH Super Alloy Technologies, which is scheduled to begin commercial production in the second half of 2026, and will work to advance its special alloy material technologies.

This content was produced with the assistance of AI translation services.