Kencoa Aerospace (274090) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 16.88 billion, up from KRW 13.85 billion in Q1 2024, reflecting growth in aerospace and defense segments.

• Operating income turned positive at KRW 106 million, compared to a loss of KRW 1.2 billion in Q1 2024.

• Net loss narrowed to KRW 382 million from KRW 1.91 billion in the prior year quarter.

• The company continues to expand production capacity in Korea and the US to meet increasing demand.

Financial highlights

• Gross profit for Q1 2025 was KRW 3.03 billion, up from KRW 1.37 billion in Q1 2024.

• SG&A expenses increased to KRW 2.92 billion from KRW 2.58 billion year-over-year.

• Cash and cash equivalents at quarter-end were KRW 18.36 billion, up from KRW 15.99 billion at the end of 2024.

• Total assets reached KRW 255.9 billion, with total equity of KRW 184.1 billion.

• Net cash from operating activities was KRW 2.10 billion, reversing a negative flow in the prior year.

Outlook and guidance

• The company is expanding facilities in Korea and the US to support new business and increased orders, with completion targeted in 2025.

• Management expects continued growth in aerospace and defense demand, leveraging global supply chain strengths.