KCC said on the 7th that its second-quarter 2026 results improved on the back of a recovery in the silicone business and expanded sales of construction materials.
KCC's second-quarter sales on a consolidation basis were 1.806 trillion won, up 12.2% from the previous quarter. Operating profit was 128.9 billion won, up 37.6% from the previous quarter, improving both sales and profitability.
The improvement was led by the silicone institutional sector. In the second quarter, the effects of price hikes and a recovery in demand coincided, pushing up both sales volume and selling prices from the previous quarter. Cost improvements from factory operation streamlining and expense reductions also contributed to the recovery in profitability.
The construction materials institutional sector also saw improved sales and profitability from the previous quarter despite a slowdown in the dwellings market. As sales of industrial insulation increased, the utilization rate of expanded facilities rose and the burden of fixed costs eased. Polyvinyl chloride (PVC) windows were affected by rising materials and supplies prices, but the higher number of home sales last year fed into demand with a time lag, partially offsetting the expense burden.
The paints institutional sector posted higher sales from the previous quarter on stable demand from key downstream industries such as automobiles and ships. However, the improvement in profitability was limited by the burden of materials and supplies prices amid geopolitical uncertainty, and the company is working to defend profitability by improving purchasing terms and diversifying suppliers.
KCC expects increased volumes of insulation used in second-half semiconductor clusters, data centers, and public housing to support the performance of its construction materials business. It also projected that if the silicone institutional sector continues to benefit from a recovery in demand and pricing policies, the company's overall results will keep improving at a modest pace.
A KCC official said, "In the second quarter, price increases and a recovery in sales volume in the silicone institutional sector and rising insulation demand in the construction materials institutional sector led improvements across the company," and added, "In the second half, we will maintain the improving trend by expanding sales of high value-added products and strengthening cost competitiveness."