Q1 2026 Operating and Net Profit Turn Positive, but Cash Decline and Debt Increase Remain Concerns

Q1 2026 revenue KRW 24.4bn, operating profit KRW 1.7bn, net profit KRW 1.1bn, turning positive from full-year losses in 2025 (operating loss KRW 4.8bn, net loss KRW 6.9bn)
Defense/aerospace segment accounts for 95.2% of sales (KRW 23.2bn); automotive parts segment generated new sales of KRW 0.6bn
Total liabilities KRW 121.6bn (end-2025: KRW 125.4bn), total equity KRW 109.8bn (end-2025: KRW 108.4bn), improving debt ratio
Cash and cash equivalents KRW 7.0bn, down 65% from KRW 20.2bn at end-2025
Long-term borrowings increased to KRW 42.3bn (end-2025: KRW 36.6bn), short-term borrowings KRW 27.3bn (end-2025: KRW 26.1bn)\- Convertible bonds early redemption of KRW 7.3bn completed, remaining KRW 0.76bn
ITER blanket shield block contract progress rate 45%, contract liabilities KRW 23.8bn
Discontinued operations (Haman/Yeongcheon) loss KRW 0.32bn
Two pending lawsuits: defendant KRW 0.68bn, plaintiff KRW 0.04bn
Labor commission enforcement fine KRW 0.15bn and industrial safety penalty KRW 0.11bn imposed
Acquisition of land and buildings from related party Shinhwa ENG for KRW 15.1bn

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