First-half Business Performance This Year…Daedong Smiled Over “Scale,” TYM Over “Substance”

Record-high first-half performance in 2026 despite slump in global agricultural machinery market Improved product mix centered on mid- to large-sized equipment and construction equipment in the North American market proved effective Daedong posts record-high sales of KRW 844.8 billion…TYM posts operating profit of KRW 62.6 billion, “profitability sharply improved”

이현우 Reporter
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Daedong and TYM improved their performance in the first half of 2026 through product diversification and stronger dealer networks, despite a slump in the global agricultural machinery market and contractions in the North American and domestic markets. Daedong recorded its highest-ever revenue of 844.8 billion won, while TYM led in profitability with operating profit of 62.6 billion won and an operating margin of 11.3%. Both companies plan to expand parts and service revenue as well as AI, robotics, and autonomous driving technologies in the second half of the year.

Daedong's AI tractor, the HX1400 (left), and TYM's T6115 tractor (Photo courtesy of Daedong and TYM)
Daedong’s AI tractor, HX1400 (left), and TYM’s tractor T6115 (Photo courtesy of Daedong, TYM)

While the global agricultural machinery market continues to remain sluggish, domestic comprehensive agricultural machinery makers Daedong and TYMboth posted surprise performances in the first half of this year. Even amid contraction in key markets such as North America, the strategy of diversifying product portfolios around mid- to large-sized tractors and compact construction equipment(CCE) and strengthening dealer networks drove earnings growth.

Sales went to Daedong, profitability to TYM…The secrets behind their different No. 1 positions
According to the Financial Supervisory Service’s electronic disclosure system on the 10th, Daedong recorded consolidated sales of KRW 844.8 billion and operating profit of KRW 47.3 billion in the first half of 2026. Sales rose 5.4% and operating profit increased 0.9% from the same period a year earlier, breaking the company’s previous record for first-half sales(the previous record was KRW 835.8 billion in the first half of 2023). In particular, in the second quarter alone, it posted sales of KRW 467.1 billion and operating profit of KRW 41.2 billion, achieving its best-ever quarterly performance and turning the deficit trend from the first quarter into a surplus.

TYM, which announced its results earlier on the 6th, also recorded an “earnings surprise”. TYM’s first-half sales increased 13.1% year on year to KRW 552.2 billion, while operating profit surged 59.1% to KRW 62.6 billion. Net profit jumped by as much as 148.0% to KRW 56.7 billion.

Comparing the two companies’ performances, Daedong showed clear strength in scale growth, while TYMstood out in substance(profitability). TYM’s first-half operating margin was 11.3%, far surpassing Daedong’s 5.6%. While TYMgreatly improved profitability by increasing the share of high-horsepower tractor sales and enhancing management efficiency, Daedong’s figure is interpreted as reflecting R&D and future-business investment costs in future growth engines such as AI·robotics.

Product mix improvement that overcame the limits of “negative growth in North America” 
This performance is all the more meaningful because it was achieved under adverse conditions in the global market. In the first half of this year, the North American agricultural machinery market contracted by 13% year on year, and the domestic market also shrank by 3.4% . The key to overcoming these limits was improving the high-value-added product mix and expanding territory.

Daedong moved beyond its strength in compact tractors and diversified its lineup into high-value-added mid- to large-sized tractors(HX models)and compact construction equipment such as skid loaders·and mini excavators(CCE). As a result, sales volumes of HX models and CCE in North America in the first half jumped 55% and 28% year on year, respectively. The expansion of its dealer network to 600 locations, based on an 8,900-pyeong logistics warehouse established in Tacoma, U.S., in the third quarter of last year, also supported the results.

TYMfocused on increasing the share of tractor sales in the mid- to large-horsepower range, led by new models tailored to the North American market(T4058P·T5075 and others). It is interpreted that, even amid uncertainties such as U.S. tariffs and logistics risks, the company’s efforts to strengthen technical training for dealers and its parts supply system, thereby raising service satisfaction, bore fruit.

Recurring sales·future technology…second-half momentum also accelerating
The growth momentum of both companies is expected to continue in the second half. This is because, along with equipment sales, the foundation for recurring revenue(Recurring Revenue) from parts·and services is becoming more firmly established. In Daedong’s case, first-half parts sales increased 20% year on year to KRW 56.7 billion, and the company is pursuing an expansion of customer contact points based on its connected platform.

Competition to preempt future agricultural technologies is also set to begin in earnest. Daedong Vice Chairman Won Yoo-hyun said, “We will make this year the first year of a major transition to AI·robotics and push future businesses such as precision agriculture·AI agricultural machinery·and agricultural robots even more strongly”.

TYM also plans to solidify its global territory based on autonomous tractors and technological innovation. An industry official analyzed, “Even amid the global downturn, K-agricultural machinery has succeeded in improving its fundamentals by expanding its territory into mid- to large-sized equipment and construction equipment in the North American market”, adding “management of tariff and exchange-rate volatility in the second half will determine the direction of future performance”.

 

This article has been automatically translated by AI (Artificial Intelligence).

이현우 Reporter
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