KOSDAQEnergy & Power032820

Woori Technology, Incorporation

₩12,790▲ 1.99%2026-10-02 close

Market Cap

₩2.2T

Turnover

₩26.2B

Volume

2.1M

Shares out.

170M

PER

—

PBR

9.4×

EPS

-₩20

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Nuclear MMIS Monopoly Versus New-Business Losses

The company sits between a strong franchise as the domestic monopoly supplier of nuclear instrumentation and control (MMIS) systems and widening operating losses plus rising financial leverage caused by new-business investment.

1
Founded in 1993 as an instrumentation and control specialist, it spans nuclear monitoring and control systems, railway platform screen doors and signalling, defense parts, and green new businesses.
2
2025 consolidated revenue rose 22.3% to KRW 87.1bn but the company posted an operating loss of KRW 5.5bn; in H1 2026 revenue was KRW 36.8bn with an operating loss of KRW 7.9bn.
3
On August 10, 2026 it signed a vendor-managed inventory (VMI) agreement with Korea Hydro & Nuclear Power for nuclear I&C parts; the company said order backlog stood at KRW 100.4bn at end-Q1 2026.
4
In a March 2026 interview management targeted KRW 160bn revenue and KRW 30bn operating profit for 2026, yet confirmed H1 results imply a low run-rate against that target.
5
The debt-to-equity ratio rose from 83.9% in 2023 to 172.1% in 2025, 2025 operating cash flow was negative, and repeated private convertible bond issues leave potential dilution outstanding.

Business structure

Woori Technology, founded in 1993 and listed on KOSDAQ in 2000, is an instrumentation and control specialist whose main lines are nuclear power plant monitoring and control systems and railway platform screen doors and train signalling systems (per the FnGuide company profile).

Its core asset is the nuclear man-machine interface system (MMIS), and the company states it is the sole domestic supplier of the MMIS distributed control system (DCS).

The portfolio splits into nuclear, defense, social overhead capital (rail), and renewables and environment; in defense, subsidiaries Woori HQ and Woori DS supply K2 tank road wheels and climate systems plus run-flat tires for combat vehicles (Businesspost, February 2026).

The same report noted defense was the single largest segment at 49.3% of revenue as of Q3 2025. In February 2026 TheBell reported management expected over KRW 40bn from defense this year, in the KRW 60bn range from the systems division that houses nuclear, and over KRW 20bn from multipurpose reactor work.

New businesses span four tracks: the Aphae offshore wind project in Sinan, low-temperature pyrolysis recycled oil at Wave Jeongeup, incineration-ash resource recycling via subsidiary ELC, and smart farming.

Customers are concentrated in the public and large-corporate sphere, including Korea Hydro & Nuclear Power and Doosan Enerbility in the nuclear chain, defense primes such as Hyundai Rotem, and metro operators.

Nuclear I&C carries high entry barriers through safety-grade qualification and reference records, but order timing and volume also depend on national reactor construction and equipment-upgrade schedules.

Earnings trend

Quarterly revenue · Operating profit

₩22.6B-₩700M25Q2₩21.2B-₩600M25Q3₩24.8B-₩1.2B25Q4₩17B-₩6.7B26Q1₩19.8B-₩1.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩49.5B₩4.8B2022₩63.2B₩6.7B2023₩71.3B₩600M2024₩87.1B-₩5.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩22.6B	-₩700M	−2.9%
2025Q3	₩21.2B	-₩600M	−3.1%
2025Q4	₩24.8B	-₩1.2B	−4.7%
2026Q1	₩17B	-₩6.7B	−39.7%
2026Q2	₩19.8B	-₩1.1B	−5.7%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩49.5B	₩4.8B	₩3.4B	9.7%	3.5%	69.7%
2023	₩63.2B	₩6.7B	₩5B	10.6%	4.9%	83.9%
2024	₩71.3B	₩600M	-₩3.6B	0.8%	−3.2%	136.8%
2025	₩87.1B	-₩5.5B	₩800M	−6.3%	0.6%	172.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

Annual revenue grew for four straight years: KRW 49.5bn in 2022, KRW 63.2bn in 2023, KRW 71.3bn in 2024 and KRW 87.1bn in 2025. Profitability moved the other way. The operating margin fell from 9.7% in 2022 and 10.6% in 2023 to 0.8% in 2024, then turned negative in 2025 with a KRW 5.5bn operating loss (-6.3% margin).

The company and market data providers attributed this to early-stage investment costs and stabilization expenses in green new businesses offsetting growth in nuclear and other legacy lines, and TheBell reported an operating loss of KRW 6.7bn and a net loss of KRW 7.9bn from the incineration-ash recycling business on a cumulative Q3 2025 basis.

Net profit attributable to owners was a small positive KRW 0.8bn in 2025 even though the consolidated net loss was KRW 4.1bn, because much of the loss was allocated to subsidiaries with non-controlling interests.

Quarterly, revenue was KRW 22.6bn in Q2 2025 (operating loss KRW 0.7bn), KRW 21.2bn in Q3 (loss KRW 0.6bn) and KRW 24.8bn in Q4 (loss KRW 1.2bn), followed by KRW 17.0bn with a KRW 6.7bn operating loss in Q1 2026 and KRW 19.8bn with a KRW 1.1bn loss in Q2 2026, for an H1 2026 total of KRW 36.8bn revenue and a KRW 7.9bn operating loss.

The Q1 2026 operating loss was the largest in the disclosed quarterly window, and Q2 2026 revenue was below the KRW 22.6bn of the year-earlier quarter.

Net results diverge sharply from operating results: Q1 2026 showed KRW 28.9bn of net profit attributable to owners despite the operating loss, while Q2 2026 and Q4 2025 recorded attributable net losses of KRW 18.3bn and KRW 15.3bn, leaving the last four quarters combined in attributable net loss.

On the balance sheet, the debt-to-equity ratio climbed from 69.7% in 2022 to 83.9% in 2023, 136.8% in 2024 and 172.1% in 2025, while 2025 operating cash flow swung to an outflow of KRW 18.8bn from an inflow of KRW 3.9bn in 2024.

Industry analysis

The end market has two pillars, new domestic reactor construction and equipment upgrades at operating reactors, and Woori Technology supplies parts and systems into both.

Recent order flow is visible in the upgrade cycle: in May 2026 it disclosed a KRW 9.24bn contract to supply data acquisition system (DAS) electronic card upgrade materials for Hanul Unit 1 running to January 13, 2028, and in August a roughly KRW 8.47bn DAS supply contract for the Kori 3 and 4 plant computer upgrade running to February 21, 2028 was reported.

The company said rising power demand from AI data centers and semiconductor clusters, along with wider discussion of new reactor construction, could expand order opportunities for nuclear I&C systems (Newspim, August 10, 2026).

Roles in the domestic chain are clearly divided: Doosan Enerbility handles main equipment and firms such as KEPCO E&C handle design, while nuclear I&C is the area where Woori Technology claims a monopoly position.

Small modular reactors use the same MMIS concept, and the company has signed an agreement with the innovative SMR technology development program to develop a standard safety-system MMIS platform for modular reactors.

That national project, however, targets standard design approval by 2028, so revenue conversion still lies ahead.

In offshore wind, the end market for part of its new businesses, permitting, community acceptance and project financing have long been bottlenecks, though some projects are moving into execution, with the 390MW Sinan-Ui project signing roughly KRW 2.89tn of project finance and an EPC contract in April 2026 and starting construction.

Outlook

Management's 2026 plan is aggressive. In a March 2026 Dealsite interview, CFO Jeon Dae-young said the target was KRW 160bn of consolidated revenue, KRW 30bn of operating profit and KRW 20bn of net profit, with the nuclear division alone expected to deliver KRW 75bn of revenue and KRW 32bn of operating profit.

The rationale is that deliveries of main MMIS units for Shin-Hanul 3 and 4 begin in 2026, a larger and higher-margin volume than the spare parts supplied until then.

As noted, however, confirmed H1 2026 results were KRW 36.8bn of revenue and a KRW 7.9bn operating loss, so how much main-unit nuclear revenue is recognized in the second half is decisive for the target. On the order side, the VMI agreement signed with KHNP on August 10, 2026 is a new variable.

The company said individual item supply contracts could be signed as early as the following month, starting with power supply units, and that annual additional contracts of over KRW 10bn would be possible if coverage expands to items such as CPU boards (Newspim).

In defense, subsidiary Woori DS is preparing a first delivery to Hanwha Aerospace after Hyundai Rotem while exports tied to Poland expand, and management projected continued growth.

Among new businesses, the sequence to watch includes EPC selection, project financing and construction start for Aphae offshore wind, regulatory treatment of selling prices after commercial operation of the Wave Jeongeup recycled oil plant, and whether ELC's resource recycling reaches breakeven.

Valuation

PER

—

PBR

9.4×

ROE

-2.1%

EPS

-₩20

BPS

₩1,134

Dividend per share

₩0

Earnings-based multiples are hard to compute at all: attributable net income over the last four quarters combined was negative, so no price-earnings ratio is shown, and the 2025 full year was also loss-making at the operating line.

That narrows the market's reference to net-asset-based multiples, and the current level sits at a large premium to book value per share, high relative to averages for KOSDAQ electrical, electronic and power equipment peers.

In addition, self-calculated and exchange-published book values differ depending on how treasury shares and non-controlling interests are treated, so the calculation basis matters more than any single multiple. No dividend is paid, so an income-oriented approach does not apply.

In short, the prevailing multiple reflects forward scenarios such as main-unit revenue from Shin-Hanul 3 and 4, delivery on company guidance, and new businesses reaching breakeven, far more than confirmed results, and whether those scenarios materialize determines whether the multiple is supported.

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 2026-09-04

Bull factors

Domestic MMIS monopoly and reactor upgrade orders

The company says it is the sole domestic supplier of the nuclear MMIS distributed control system and that MMIS DCS work accounts for a large share of the KRW 100.4bn order backlog as of end-Q1 2026 (Newspim, August 10, 2026).

Beyond new build, upgrade work at operating reactors is showing up in actual contracts, including roughly KRW 9.2bn of DAS materials for Hanul Unit 1 in May 2026 and about KRW 8.5bn of DAS for Kori 3 and 4 in August.

Safety-grade qualification and delivery references make it difficult for an alternative supplier to emerge quickly.

Main-unit deliveries and a new VMI channel

Management said main MMIS unit deliveries for Shin-Hanul 3 and 4 begin in 2026 and carry larger volumes and margins than spare parts (Dealsite, March 2026).

In addition, the VMI agreement signed with KHNP on August 10, 2026 lets the supplier pre-stock parts and deliver and settle immediately upon demand, and the company says it is KHNP's first VMI arrangement with a small or mid-sized firm.

Management expects annual additional contracts of more than KRW 10bn if coverage widens to items such as CPU boards.

Diversification into defense and offshore wind installation

Defense was the largest single segment at 49.3% of revenue as of Q3 2025 (Businesspost, February 2026), and TheBell reported expanding exports tied to Poland with expectations of over KRW 40bn of segment revenue in 2026.

In offshore wind, the company secured a foundation installation vessel it describes as the only one held domestically and signed a charter contract for the Sinan-Ui site to generate income before Aphae construction begins (TheBell, February 2026). The structural shift reduces reliance on nuclear alone.

Bear factors

Gap between guidance and confirmed results

Management targeted KRW 160bn of revenue and KRW 30bn of operating profit for 2026 (Dealsite, March 2026), but confirmed H1 2026 results were KRW 36.8bn of revenue and a KRW 7.9bn operating loss.

Q2 2026 revenue of KRW 19.8bn was below KRW 22.6bn a year earlier, and the Q1 operating loss of KRW 6.7bn was the largest in the disclosed quarterly window. The full-year outcome therefore hinges heavily on how much main-unit nuclear revenue is recognized in the second half.

Rising leverage and cash outflow

The debt-to-equity ratio more than doubled in two years, from 83.9% in 2023 to 136.8% in 2024 and 172.1% in 2025, with total liabilities of KRW 214.1bn in 2025 well above total equity of KRW 124.4bn. Operating cash flow swung to an outflow of KRW 18.8bn in 2025 from an inflow of KRW 3.9bn in 2024.

With new-business investment and working capital pressing at the same time, reliance on external funding can increase.

Accumulated convertibles and volatile net results

On August 5, 2026 the board approved a KRW 40bn 20th series private convertible bond with 0% coupon and 0% yield to maturity, and reporting on the filing noted that including the KRW 32.15bn outstanding balance of earlier series 17, 18 and 19, potential conversion shares total 13,168,491, or 7.62% of shares outstanding (DigitalToday, August 5, 2026).

Under such a structure, valuation gains and losses on conversion rights can swing quarterly net results sharply, as seen in attributable net profit of KRW 28.9bn in Q1 2026 followed by a KRW 18.3bn net loss in Q2, both diverging from operating results. Potential dilution and net-result volatility therefore need to be assessed together.

Risk factors

New-business profitability and regulation

TheBell reported a KRW 6.7bn operating loss and KRW 7.9bn net loss from the incineration-ash recycling business on a cumulative Q3 2025 basis, and management set 2026 breakeven as the goal.

For the waste-plastic recycled oil business, whether domestic rules recognize pyrolysis output at high-value naphtha pricing was flagged as the decisive variable, and the company was reported to be negotiating with overseas buyers in parallel (Dealsite, March 2026).

If pricing and regulatory frameworks are delayed, the timeline for narrowing new-business losses can slip as well.

Project delays in offshore wind

The Aphae offshore wind project has reported progress on fixed-price contract selection and permitting, but with total project cost around KRW 420bn it must clear EPC selection and project financing before construction (Dealsite, March 2026).

In Korea's offshore wind market, actual commercial operation lags far behind licensed capacity, with community acceptance, permitting and project finance repeatedly cited as bottlenecks. If construction slips, so does the payback timeline for pre-invested assets such as the foundation installation vessel.

Customer and policy concentration

Nuclear revenue is concentrated among a few buyers such as KHNP and Doosan Enerbility, and order timing and volume depend on national reactor construction and upgrade plans plus power supply policy.

Expectations tied to overseas reactor projects rest on host-country decisions and export negotiations, variables outside the company's control. Because a single contract can approach roughly 10% of annual revenue, a schedule change on one project alone can amplify quarterly earnings volatility.

What to watch next

September to October 2026
Whether the first individual item supply contract under the KHNP VMI agreement, starting with power supply units, is disclosed. The key is whether management's reference to 'as early as next month' converts into an actual contract, and at what size and duration.
Mid-November 2026
The Q3 2026 report. The focus is whether main-unit MMIS revenue for Shin-Hanul 3 and 4 has begun to be recognized, whether the H1 operating loss narrows, and how far results have progressed against the company's full-year target.
Q4 2026
Whether the Aphae offshore wind project signs an EPC contract, closes project financing and fixes a construction start date. The scale of charter revenue from leasing the foundation installation vessel to the Sinan-Ui site is also worth tracking in reported results.
March 2027
The FY2026 annual report. Segment revenue and profit disclosures will show the actual contribution of nuclear, defense and environment lines, whether new businesses such as ELC reached breakeven, and whether the debt ratio and operating cash flow improved.
From August 13, 2027
The conversion request period for the KRW 40bn 20th series private convertible bond opens. Investors should track conversion activity including earlier outstanding series and any conversion price adjustment filings for their effect on share count.

Overall view

Woori Technology claims a monopoly supply position in domestic nuclear instrumentation and control (MMIS), and contracts are visible in both new reactor construction and upgrades at operating plants.

The KRW 100.4bn backlog at end-Q1 2026, DAS contracts for Hanul Unit 1 and Kori 3 and 4, and the VMI agreement with KHNP are facts pointing to a widening business base.

Financial metrics have moved the other way: revenue grew from KRW 49.5bn in 2022 to KRW 87.1bn in 2025, but the operating margin fell from double digits into loss, the debt-to-equity ratio rose to 172.1%, and 2025 operating cash flow was an outflow.

H1 2026, with KRW 36.8bn of revenue and a KRW 7.9bn operating loss, leaves a wide gap versus the company's annual target. Net results reverse direction sharply from quarter to quarter under the influence of non-operating items such as convertible bonds, so they should be read separately from the operating trend.

The story therefore narrows to three things: the pace of main-unit Shin-Hanul revenue recognition in the second half, whether new-business losses shrink, and how potential dilution is handled. This report is for information purposes only and contains no buy or sell opinion or price target.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.