PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
Earnings rebounded sharply in Q2 2026, but a large Q4 2025 loss and wide quarterly swings mean the pace of the company's stated AI-farming transition and value-up targets is the key thing to watch.
FY2025 consolidated revenue was KRW1.4847tn with operating profit of KRW31.2bn (2.1% margin), up from KRW18.5bn a year earlier, but owner net profit stayed negative at KRW-16.8bn for a second straight year.
An operating loss of KRW-16.0bn and owner net loss of KRW-40.5bn in Q4 2025 weighed heavily on the full year, before Q2 2026 posted the best quarter in five, with operating profit of KRW41.2bn and owner net profit of KRW26.2bn.
The company launched its vision-AI-based unmanned autonomous-operation tractor, the HX Series AI, in April 2026, targeting 300 domestic unit sales for the year.
A self-disclosed value-up plan filed in May 2026 set a target to raise consolidated revenue to KRW3.59tn and the price-to-book ratio to 2x by 2030.
The company was selected as the final operator of the Ministry of Agriculture's national agricultural AI-transformation platform project, securing policy backing for its new-business push.
Daedong is a South Korean agricultural machinery maker founded in 1947 that produces and sells tractors, combines, rice transplanters, small construction machinery, and engine/auto parts at home and abroad.
It is known overseas under the 'KIOTI' brand and runs subsidiaries in the United States, China, and Europe to manage its global markets directly.
As of 2024, exports accounted for 65.3% of revenue, making it an export-oriented company that ranks third in the North American compact tractor market and first in the domestic tractor market.
Subsidiary Daedong Mobility handles smart mobility products such as electric golf carts, low-speed vehicles, and electric two-wheelers, while Daedong Agtech develops smart-farm solutions and Daedong Robotics develops agricultural and industrial robots, driving diversification within the group.
The company is vertically integrated with parts affiliates Daedong Gear and Daedong Metal for joint R&D and customized solution development.
It was recently selected as the final operator of the Ministry of Agriculture, Food and Rural Affairs' national agricultural AI-transformation platform project, giving it policy support for new-business expansion. Global competitors include large players such as John Deere and Kubota, while TYM is a key domestic rival.
The company is in the process of shifting its business model from a pure equipment seller toward an AI- and data-based agricultural solutions platform.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩414.6B | ₩25.1B | 6.1% |
| 2025Q3 | ₩354.1B | ₩400M | 0.1% |
| 2025Q4 | ₩329.3B | -₩16B | −4.9% |
| 2026Q1 | ₩377.7B | ₩6B | 1.6% |
| 2026Q2 | ₩467.1B | ₩41.2B | 8.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.5T | ₩88.3B | ₩38.6B | 6.0% | 11.2% | 263.1% |
| 2023 | ₩1.4T | ₩65.4B | ₩17.6B | 4.6% | 3.9% | 239.0% |
| 2024 | ₩1.4T | ₩18.5B | -₩30.7B | 1.3% | −7.1% | 254.7% |
| 2025 | ₩1.5T | ₩31.2B | -₩16.8B | 2.1% | −3.5% | 251.9% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05
Daedong's consolidated revenue eased slightly from KRW1.4637tn in 2022 to KRW1.4334tn in 2023 and KRW1.4156tn in 2024, before rising again to KRW1.4847tn in 2025.
Operating profit fell from KRW88.3bn (6.0% margin) in 2022 to KRW65.4bn (4.6%) in 2023 and KRW18.5bn (1.3%) in 2024, then improved to KRW31.2bn (2.1%) in 2025.
Owner net profit, however, swung from gains of KRW38.6bn in 2022 and KRW17.6bn in 2023 to losses of KRW-30.7bn in 2024 and KRW-16.8bn in 2025, marking a second consecutive loss year.
Q4 2025 in particular saw an operating loss of KRW-16.0bn and an owner net loss widening to KRW-40.5bn, dragging down the full-year result.
Performance then improved, with Q1 2026 narrowing the loss to revenue of KRW377.7bn and operating profit of KRW6.0bn, and Q2 2026 delivering the best quarter in five, with revenue of KRW467.1bn, operating profit of KRW41.2bn, and owner net profit of KRW26.2bn.
Management stated that first-half 2026 revenue was a record for both the second quarter and the half. On cash flow, operating cash flow of KRW+255.5bn in 2024 turned negative to KRW-56.7bn in 2025, suggesting increased working-capital pressure.
The debt ratio eased from 263.1% in 2022 to 239.0% in 2023 before rising again to 254.7% in 2024 and 251.9% in 2025.
The global tractor market is seeing autonomous driving, electrification, and precision agriculture emerge as key trends, with demand for unmanned autonomous-operation technology expanding as farm populations age and labor grows scarce.
Responding to this shift, Daedong commercialized Korea's first straight-line autonomous-driving rice transplanter in 2019, passed the industry's first national test for autonomous field operation in 2023, and launched the vision-AI-based unmanned autonomous tractor HX Series AI in April 2026.
The company holds the top market share in the domestic tractor market and third place in the North American compact tractor segment, positioning it between large global players such as John Deere and Kubota and domestic rival TYM.
The government is also providing policy support for agricultural AI transformation, and Daedong was selected as the final operator for the Ministry of Agriculture's national agricultural AI-transformation platform project.
A distinguishing feature is that Daedong's small-plot-specialized vision-AI tractor addresses a segment that large global makers such as John Deere and Kubota have not yet commercialized.
That said, global farm-equipment demand is heavily tied to the agricultural cycle, including grain prices and farm income, making it cyclically volatile and exposed to external variables such as tariffs and exchange rates, a common burden across the industry.
At its '2026 Tech Day' in April 2026, Daedong unveiled a 'physical AI for agriculture' transformation strategy, featuring demonstrations of unmanned autonomous-operation AI tractors, an agricultural robot development roadmap, and indoor/outdoor autonomous transport and mowing robots.
The newly launched HX Series AI targets up to 300 domestic unit sales in 2026, and the company said it plans to roll out the product to North America and Europe in stages going forward.
On May 7, 2026, the company self-disclosed a value-up plan setting a target to raise consolidated revenue from around KRW1.4tn in 2025 to KRW3.59tn by 2030, a 19.3% average annual growth rate, with new businesses (AI equipment, agricultural robots, precision agriculture, smart farming, smart mobility) targeted at 39.4% average annual growth and existing businesses (tractors, combines, rice transplanters, small construction machinery, engine parts) targeted at 15.3%.
The same plan set goals to raise the price-to-book ratio from 0.5x to 2x and the price-to-earnings ratio to around 10x, alongside a shareholder-return direction of gradually raising the dividend payout ratio to around 20% by 2030.
Daedong Mobility's 'DDM Modular Mobility Platform' concept and Daedong's agricultural robot platform 'RMRP-100' each won a main award at the 2026 Red Dot Design Award in June, showcasing design competitiveness in new businesses.
These mid-to-long-term targets are the company's own stated plan, and whether they are actually achieved needs to be verified progressively through future quarterly results and the revenue contribution of new businesses.
The price-to-book ratio, on a self-calculated basis, sits well below 1x and below the roughly 0.69x average PBR level of the past five years, placing it in a discounted range relative to net assets.
The price-to-earnings ratio is not meaningful given that net profit has remained negative over the most recent four quarters, unlike the profitable 2022-2023 period, making earnings-based valuation metrics difficult to apply for now.
Dividends have been paid consistently each year, though the yield itself runs below the industry average, and the company has stated in its value-up plan a direction to gradually raise the payout ratio.
The recent quarterly path from a large loss in Q4 2025 to a profit in Q2 2026 suggests a possible earnings recovery, but given the wide quarter-to-quarter volatility, further quarters need to be confirmed before it can be considered an established trend.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-05
Q2 2026 delivered operating profit of KRW41.2bn and owner net profit of KRW26.2bn, the best quarterly result in five quarters. First-half 2026 revenue and operating profit both rose, achieving a record first half as the company stated. The swing from a small Q1 loss to a large Q2 profit points to normalized sales entering the peak season.
The company launched Korea's first vision-AI-based unmanned autonomous tractor, the HX Series AI, targeting 300 domestic unit sales a year, with plans to expand to North America and Europe.
It was selected as the final operator for a government national agricultural AI-transformation platform project, providing a policy-backed foundation for new-business growth. Diversification into robotics and mobility continues through affiliates such as Daedong Mobility and Daedong Robotics.
The value-up plan self-disclosed in May 2026 laid out concrete targets to expand revenue to KRW3.59tn by 2030 and raise the dividend payout ratio to around 20%. It set a 39.4% average annual growth target for new businesses, clarifying the direction of the business-structure shift. Execution of the plan can be verified through future quarterly disclosures.
Owner net profit posted losses of KRW-30.7bn in 2024 and KRW-16.8bn in 2025, two consecutive loss years. Operating cash flow also turned negative to KRW-56.7bn in 2025, a reversal from KRW+255.5bn in 2024. The debt ratio has stayed above 250%, leaving balance-sheet improvement as an ongoing task.
Operating profit shrank to just KRW0.45bn in Q3 2025, turned into a KRW-16.0bn loss in Q4, and posted another small loss in Q1 2026, illustrating large quarter-to-quarter swings. A single strong quarter is not sufficient to confirm a sustained improvement. Results can swing widely with seasonality and external variables.
The company's stated target of KRW3.59tn revenue by 2030, or 19.3% average annual growth, is considerably ambitious compared to actual 2025 revenue growth. The 39.4% average annual growth target for new businesses also remains at the planning stage, with actual revenue contribution not yet disclosed. Whether these targets are met needs to be verified through results over the coming years.
Given the high export share, fluctuations in the won-dollar exchange rate and tariff policy changes in key export markets such as the United States can directly affect results. North American and European subsidiary results are also exposed to volatility during local-currency translation.
Farm equipment demand tends to track upstream agricultural conditions such as grain prices and farm income, so a downturn in the global agricultural cycle could slow sales of core products such as tractors and combines.
Expanding new businesses such as AI tractors, robotics, and mobility requires sustained R&D and capital investment, which could pressure near-term profitability. If new businesses fail to contribute revenue as planned, there is a risk that returns on investment could lag.
Q3 2026 consolidated earnings disclosure. Key points to check are whether the Q2 profit turnaround continues and whether new businesses begin contributing to revenue.
Whether the HX Series AI meets its target of 300 domestic unit sales for the year, and disclosure of actual sales figures.
Timing of the AI autonomous tractor's North American market launch and initial market response.
Progress details on the national agricultural AI-transformation platform project and when related revenue begins to be recognized.
Follow-up disclosures on shareholder returns, such as an expanded dividend payout ratio or share buybacks, tied to the value-up plan.
Daedong showed signs of an earnings turnaround, moving from owner net losses through 2025 to a clear profit in Q2 2026.
At the same time, the company is pursuing new businesses such as AI autonomous tractors, agricultural robots, and smart mobility to shift from a pure farm-equipment maker toward an agricultural data and services platform, and it has set a value-up target to more than triple revenue by 2030.
However, the large Q4 2025 loss and wide quarter-to-quarter swings in profitability show that earnings stability has not yet been fully established. A debt ratio above 250% and weaker 2025 operating cash flow are also points that warrant attention.
The revenue contribution of new businesses and the pace of value-up plan execution need to be confirmed progressively through disclosures over the coming quarters.
Investment decisions should be made by readers themselves, taking these earnings and financial metrics together with new-business progress into full account.
Report written 2026-09-05 · Data as of 2026-09-04
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