Isu Specialty Chemical (이수스페셜티케미컬, 457190.KS), a Korean fine chemicals producer spun off from Isu Chemical in May 2023, posted first-quarter 2026 revenue of KRW 108.6 billion (approximately USD 79 million), up 9.8% year-over-year, as brisk commercial goods sales offset a retreat in core product volumes. Yet operating profit tumbled 42.9% to KRW 3.5 billion and net income halved to KRW 1.9 billion, underscoring significant margin pressure from a shifting product mix and rising production costs.
Revenue Growth Driven by Commercial Goods
Consolidated net sales for the three months ended March 31, 2026 rose to KRW 108.6 billion from KRW 98.9 billion in the same period last year. The gain was concentrated in the commercial goods segment — which encompasses Base Oil, methyl ethyl ketone (MEK) and related intermediates — where revenue surged 44.7% year-over-year to KRW 42.0 billion, accounting for 38.7% of total revenue.
By contrast, the company's flagship fine chemical products division — producing mercaptan chain-transfer agents (TDM, NOM, NDM), isopropyl alcohol (IPA) and specialty solvents — posted a 4.9% year-over-year decline to KRW 63.8 billion, equivalent to 58.7% of the total mix. Average selling prices for the flagship Mercaptan product group edged down to KRW 4,784 thousand per tonne in Q1 2026 from KRW 4,921 thousand in FY2025, reflecting softer petrochemical feedstock markets.
