Daewon Electric Wire Q1 2026 Revenue Surges 32% YoY to $1.11B
Daewon Electric Wire (006340) posted total Q1 2026 revenue of $1.11B, including $111M from its wire & cable segment. Revenue jumped 32% year-over-year, though operating income declined.
- Daewon Electric Wire (006340) Q1 revenue surged 32% YoY to $1.11B, but operating income fell on soaring copper costs
- Shares hit the daily limit-up as investors priced in long-term AI power grid demand
Daewon Electric Wire (006340) disclosed Q1 2026 revenue of $1.11B in its quarterly report filed with DART, up 32% from $845M in the same period last year.
Earnings at a Glance
Revenue grew sharply, but operating income contracted. Rising raw material costs — particularly copper — appear to have compressed margins.
- Revenue: $1.11B, +32% YoY (Q1 2025: $845M)
- Wire & cable segment revenue: $111M (per Investing.com)
- Operating income: declined YoY (specific figure not disclosed in the filing — independent verification required)
- Copper rod (CU-ROD) average unit price: $13.12/kg vs. $10.20/kg a year ago, +29% YoY
Market Reaction
Shares hit the daily upper limit circuit following the earnings release, according to Lead Economy. Despite a 35% drop in operating income, expectations surrounding AI data center power grid expansion drove the rally. Donghaeng Ilbo compared Daewon's results against rival Daehan Electric Wire, while Pinpoint News cited overseas order wins and new business initiatives as grounds for a potential re-rating.
Segment Breakdown
- Wire & cable segment: core revenue driver within the $1.11B total — domestic $97.6M, exports $12.9M, other $5.1M (per DART filing)
- OEM automotive parts segment: revenue of $176M, with 99.7% derived from domestic OEM supply to automakers
- Wire & cable revenue mix by product: power cables 59%, communication cables 31%, winding wire 6%, specialty cables 3%, other 1%
This article was auto-generated based on the original DART regulatory filing and domestic and international media reports. It is intended solely for the rapid delivery of key data points immediately following disclosure. Readers are advised to consult the company's official filing before making any investment decisions.
006340Frequently Asked Questions
Why did operating income decline despite the strong revenue growth?
Copper prices — the key raw material for wire and cable — surged sharply. Per the DART filing, copper rod (CU-ROD) unit prices rose 29% year-over-year. When input cost increases outpace the ability to raise selling prices, margins compress and operating income falls.
What is the OEM automotive parts business?
OEM (Original Equipment Manufacturing) refers to producing components supplied under another company's brand. Daewon Electric Wire also manufactures automotive parts delivered directly to automakers on an OEM basis. This segment generated approximately $176M in Q1 revenue.
Why did the stock hit the daily upper limit if operating income declined?
Markets are pricing in long-term growth driven by rising power demand from AI data center expansion, which is expected to structurally increase demand for wire and cable products. Investors are valuing future growth potential over near-term earnings. That said, this reflects market sentiment — actual earnings improvement will need to be confirmed in future results.
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