1. Inseon E&T Q2 Earnings: Key Highlights

Inseon E&T recorded sales of KRW 50.3 billion, operating profit of KRW 3.7 billion, and a net loss of KRW 2.2 billion in Q2 2025. Compared to the same period last year, sales decreased by 7.2%, operating profit decreased by 22.9%, and net income swung from a profit to a loss.

2. Reasons for the Sluggish Performance: Construction Slowdown and Market Contraction

The main reasons for this sluggish performance are the construction slowdown and waste market contraction. The construction downturn led to a decrease in waste generation, and intensified competition and rising costs worsened profitability. Furthermore, increased non-operating expenses, including losses from investments in associates, also contributed to the net loss.

3. Investment Strategy: Prudent Approach and Close Monitoring Required

In the short term, Inseon E&T’s stock price is likely to be negatively impacted. Investors need to take a cautious approach and closely monitor future earnings improvements and changes in the macroeconomic environment. In particular, they should pay attention to changes in construction waste processing volume and unit price, performance of the auto recycling business, and the impact of macroeconomic indicators such as interest rates, exchange rates, and oil prices after Q3.

4. Key Investment Points

  • Short-term Outlook: Potential for stock price decline due to sluggish earnings and market uncertainty.
  • Mid- to Long-term Outlook: Growth potential based on ESG management and technological competitiveness. Recovery of the construction market is a key variable.
  • Investment Strategy: Cautious approach to short-term investments. Monitoring of earnings and macroeconomic indicators after Q3 is essential.