경동나비엔

Business Overview

Revenue mix (as of H1 2024, cited from web-aggregated data, C). The exact segment revenue mix per the original 2025 annual business report is unavailable.

Overseas revenue accounts for roughly 70%, of which North America (U.S.) makes up more than 60%. The company maintains the No. 1 share in the North American condensing boiler and water heater market, with condensing water heater segment share of roughly 40% (web research). Through new products such as the condensing hydro furnace, it is pursuing expansion into the roughly $600 billion global HVAC market. To expand domestic production capacity, the company is building new parts and injection-molding buildings and expanding the heat-exchanger building at the Seotan plant (investment of approximately KRW 101.2bn, 17.31% of equity capital); the investment period end date was revised to 2026-06-30 in a disclosure (2026-02-13).

5-Year Financial Trend

In 2025, operating profit rose +8.15% YoY (margin 9.54%), while net income fell -27.87% YoY (margin 5.97%), diverging in direction. Non-operating gains/losses (possibly FX-related) are presumed to be a factor, but detailed line items are unavailable, so the cause is not asserted definitively. Cumulative H1 2026 net income (KRW 126.46bn) already exceeded full-year 2025 net income (KRW 89.70bn) (semiannual report, receipt no. 20260814003740).

Recent Quarterly Results (2026)

The sum of Q1 and Q2 results — revenue (KRW 813.52bn) and operating profit (KRW 148.07bn) — matched the cumulative figures pre-confirmed in the semiannual report. The company attributed the Q2 earnings improvement to a lower effective tariff burden following a change in how U.S. steel and aluminum tariffs are applied, and to the recognition of non-operating income from refunds of tariffs paid in 2025 (quoted from the company's 2026-08-11 disclosure commentary).

Valuation (Fact-Based Multiples)

EV/EBITDA could not be calculated because depreciation, total borrowings, and cash-equivalent figures were unavailable (not obtained). Reference figures from web research (PER approx. 7.83x, PBR approx. 1.24x, from sources such as FnGuide) are included for reference only, as their calculation date and methodology are not clearly specified.

Competitive Landscape

The domestic residential boiler market is a two-horse race between Kyungdong Navien and Kiturami, with the two companies' combined share at roughly 70%, while Rinnai Korea is reported to hold third place at roughly 15% (web-aggregated data). Key competitors in the North American tankless water heater market are Rheem, Rinnai, Noritz, and A.O. Smith, and Kyungdong Navien (Navien) maintains the No. 1 share in the condensing boiler and water heater segment (web research). The North American tankless water heater market is projected to grow to approximately $7.9 billion by 2030 (8.1% CAGR, 2023-2030). Not obtained: exact official domestic and North American market share figures as of 2026, direct segment-level revenue/operating-profit comparison data for competitors, and specific competitor share figures in the new HVAC business area.

Investor Flows (Supply-Demand)

Cumulative trading trends by investor type (foreign/institutional/individual), daily supply-demand trends, securities-lending-balance indicators, the foreign investment limit utilization rate, and the margin balance are all unavailable (KRX Information Data System login data was not cross-checked; pykrx was not installed). For reference, foreign ownership was recorded at 7.19% as of 2025-12-31 (company IR shareholder status), indicating a modest rise to 8.04% since then (both figures are Grade-C sources; a precise time-series comparison is unavailable).

Governance & Capital Structure

Source: Kyungdong Navien's official IR shareholder status (estimated as of year-end 2025, Grade C) · The 2026-08-18 foreign-ownership figure is cross-verified via WISEfn (A). The original DART disclosure was not cross-checked, so this is treated as a provisional figure.

Kyungdong Navien is controlled by its largest shareholder, the unlisted Kyungdong One Co., Ltd. (whose equity is held by related parties including owner Chairman Son Yeon-ho, his eldest son Vice Chairman Son Heung-rak, and his eldest daughter President Son Yoo-jin). The appointment of Vice Chairman Son Heung-rak as co-CEO on 2025-03-26 formalized the transition to third-generation management (per multiple media reports). Detailed figures such as Kyungdong One's stake in Kyungdong Navien (56.72%, per media reports as of December 2022) and the individual stakes of Son Yeon-ho, Son Heung-rak, and Son Yoo-jin in Kyungdong One (27.45%, 24.00%, and 9.37% respectively, as of December 2022) have not been confirmed as updated since, so they are treated as reference figures only. Overseas subsidiaries are reported to number 13, located in the U.S., China, Russia, the U.K., Mexico, Uzbekistan, and elsewhere, but individual ownership percentages are unavailable.

Macro Environment

Since roughly 58-60% of consolidated revenue is generated by the U.S. subsidiary, the KRW/USD exchange rate (a 10-month low, marking a shift toward won strength) exerts downward pressure on translated revenue and profit, while the sharp drop in U.S. housing starts and the slowdown in the Harvard JCHS remodeling-spending outlook are seen as constraining North American demand growth. The 15% U.S. reciprocal tariff, combined with the company's preemptive price increases and the Q2 2026 tariff-refund effect, contributed to the quarter's earnings improvement (per the company's commentary).

Risk Factors