What Happened?

T’way Holdings reported KRW 2.3 billion in revenue for Q2 2025, significantly exceeding the market expectation of KRW 1.1 billion. However, operating income and net income remained negative at KRW -1 billion and KRW -15.6 billion, respectively.

Why These Results?

The revenue increase is attributed to higher sales volume in the PHC pile business. However, the challenging industry environment, losses from investments in affiliates, and increased costs prevented profitability improvements.

What’s Next?

  • Short-term Outlook: Revenue growth is positive, but continued losses limit upward momentum for the stock price. The possibility of a construction market slowdown is also a concern.
  • Long-term Outlook: Sono International’s business strategy and T’way Holdings’ ability to improve profitability are key variables. Growth potential exists if successful restructuring and a construction market recovery occur.

What Should Investors Do?

  • Monitor Q3 earnings to confirm continued revenue growth and potential profitability improvements.
  • Pay attention to Sono International’s specific business plans and the performance of T’way Air.
  • Consider construction market indicators, litigation risks, and volatility in raw material prices and exchange rates.