1. What’s the $24M Deal About?

On July 18, 2025, Nexteel secured a $24 million pipe supply contract with Master Pipe Distribution Company, LLC in the US. This represents a substantial 5.9% of Nexteel’s Q1 2025 revenue. The contract period runs for four months, from July to November 2025.

2. Why is This Deal Significant?

Following a sluggish Q1 2025, this contract is projected to boost Nexteel’s short-term revenue. Moreover, it establishes a crucial foothold in the US market, potentially fueling long-term growth.

3. Impact of the Deal and Investment Strategies

Short-Term Impact: Positive impact on Q2 and Q3 2025 earnings is expected. However, actual profitability depends on factors like raw material prices and production costs.
Long-Term Impact: Potential increase in US market share and further contracts, risk diversification through business expansion, and enhanced brand recognition.
Investment Strategies: Investors should seek further information on the contract’s profitability and closely monitor external factors like global economic downturn, raw material prices, and exchange rate fluctuations.

4. Key Investment Risks

  • Potential unforeseen issues during contract execution.
  • US economic downturn and increased competition in the steel market.
  • Fluctuations in the USD/KRW exchange rate.