CS Wind (112610.KS) Q1 2026: Operating Profit Slumps 41% as Foundation Revenue Halves
Offshore foundation sales nearly vanish on a single-client project gap; European tower demand grows 25% but cannot offset the volume collapse, while steel inflation and operating leverage compound the margin squeeze.
Source: Q1 2026 Quarterly Report (21st Fiscal Year, 1st Quarter, January 1 – March 31, 2026) — Filed April 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
CS Wind absorbed one of its sharpest quarterly contractions in recent memory during Q1 2026. Consolidated revenue fell 21.2% year-on-year to ₩711.1 billion while operating profit dropped 40.7% to ₩74.3 billion, compressing the operating margin from 13.9% to 10.4%. The damage was almost entirely concentrated in the offshore wind foundation segment, where a project-timing gap tied to a single major European developer — Customer E, estimated to be Ørsted — erased ₩89.7 billion in year-on-year revenue and sent foundation operating profit down 61.3% to ₩22.3 billion. Net income fell 54.1% to ₩43.9 billion, and ₩32.2 billion of that figure — 73% of the total — was supported by foreign-currency translation gains rather than cash-generating operations, underscoring the fragility of the underlying earnings base. Two mitigating factors are essential context: Q1 2025 carried forward-deferred wind tower revenue that inflated the prior-year base, making the headline comparison steeper than current trading conditions fully warrant; and the sell-side consensus largely treats this quarter as an in-line print rather than an earnings miss, pointing to sequential margin recovery beginning in Q2 as US Pueblo facility utilization ramps and the base effect fades. The company enters Q2 holding a disclosed order backlog of approximately $1.05 billion, providing approximately two quarters of annualized revenue cover.
