S-1 (012750) Q1 2026 earnings summary

Executive summary

• 1Q26 sales remained flat year-over-year, with growth in Security and Building Management offset by a decline in Security SI revenue.

• Q1 2026 consolidated sales reached KRW 673.7 billion, with security and infrastructure segments contributing nearly equally.

• Operating profit dropped significantly due to a one-off severance pay expense related to an average wage ruling.

• Maintains a robust nationwide sales and service network, with ongoing R&D and innovation in AI, cloud, and IoT-based solutions.

• Revenue CAGR from FY21 to FY25 was 5.7%, maintaining a solid growth trend.

Financial highlights

• 1Q26 sales: KRW 6,737 hundred million (KRW 673.7 billion), down 0.1% YoY and 14.1% QoQ.

• 1Q26 operating profit: KRW 207 hundred million (KRW 20.7 billion), down 62.4% YoY and 62.9% QoQ.

• 1Q26 net profit: KRW 215 hundred million (KRW 21.5 billion), down 48.8% YoY and 40.6% QoQ.

• FY25 sales: KRW 28,894 hundred million, up 3.0% YoY; net profit: KRW 1,786 hundred million, up 1.1% YoY.

• Dividend payout ratio for FY2025: 60.6%; cash dividend per share: KRW 3,200.

Outlook and guidance

• Plans to expand into AI, robotics, and integrated facility management solutions for mid- to long-term growth.

• Continued investment in new businesses, R&D, and technology acquisition.

• Dividend payout ratio for FY26 targeted at 50–60%, continuing stable shareholder returns.