PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close
Paseco returned to annual profit in 2025 but still shows large quarter-to-quarter earnings swings tied to seasonality, while pursuing a new growth avenue through window air conditioner exports to Europe that began in France in May 2026.
2025 consolidated revenue reached KRW 167.9bn with operating profit of KRW 3.3bn, turning around from an operating loss the prior year.
Quarterly results show a wide gap between the peak summer quarter and the off-peak first and fourth quarters.
Paseco reportedly holds over 70% share of the domestic window air conditioner market and began European exports via France starting in May 2026.
The kitchen and living appliance segment weakened due to a slowdown in domestic housing construction activity.
Raw material and logistics cost volatility has been cited as a drag on profitability in the seasonal appliance segment.
Paseco was founded in 1986 and listed on KOSDAQ in 2000, and its business is organized around three segments: seasonal appliances (kerosene stoves, heaters, window air conditioners), kitchen appliances (gas cooktops, hoods, induction ranges), and living appliances (humidifiers, water purifiers, etc. via OEM/ODM).
The company's flagship product is the window air conditioner, which it was the first in Korea to commercialize, and it reportedly holds over 70% share of the domestic market.
Paseco holds more than 70% of the domestic window air conditioner market, and gained recognition by exporting window air conditioners to Europe ahead of larger conglomerates.
Seasonal appliances are exported to more than 30 countries, while the living appliance segment generates revenue mainly through built-in appliance OEM/ODM contracts with construction firms and large corporations.
Before the window air conditioner, wick-type kerosene stoves were the company's main export product, with a long track record in the Middle East, the United States, and Europe.
More recently, the company has leveraged an integrated indoor-outdoor unit design that requires no wall penetration to enter the European market, where building facade regulations are strict, starting sales in France in May of this year, marking the first time a Korean company supplied window air conditioners to the European market.
Kitchen appliances such as gas cooktops and induction ranges are produced in-house and are closely linked to built-in demand from domestic construction firms, making the segment sensitive to the housing cycle.
In terms of competitive positioning, Paseco overlaps with smaller appliance makers such as Winix and Shinil Electronics in seasonal appliances, while it has captured a niche in window air conditioners that larger appliance makers have not yet fully entered.
However, global appliance makers including Samsung Electronics and LG Electronics have reportedly increased cooling appliance sales in Italy, France, and Spain.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩47.5B | ₩1.7B | 3.6% |
| 2025Q3 | ₩56.4B | ₩5.4B | 9.5% |
| 2025Q4 | ₩29.7B | -₩1.5B | −5.0% |
| 2026Q1 | ₩28.1B | -₩3.4B | −12.0% |
| 2026Q2 | ₩46.7B | ₩2.4B | 5.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩200.5B | ₩15.8B | ₩9.2B | 7.9% | 8.6% | 40.3% |
| 2023 | ₩147.5B | -₩1.2B | ₩800M | −0.8% | 0.8% | 29.9% |
| 2024 | ₩157.8B | -₩16.8B | -₩16.8B | −10.7% | −20.2% | 44.9% |
| 2025 | ₩167.9B | ₩3.3B | ₩3.7B | 2.0% | 4.3% | 29.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
On a consolidated basis, 2025 revenue reached KRW 167.9bn, up 6.4% from KRW 157.8bn in 2024, while operating profit turned positive at KRW 3.3bn, reversing an operating loss of KRW 16.8bn the prior year. Net profit attributable to owners also swung to a profit of KRW 3.7bn from a net loss of KRW 16.8bn in 2024.
The operating margin improved from -10.7% in 2024 to 2.0% in 2025. The company attributed the improvement in earnings mainly to higher window air conditioner sales driving profitability gains.
Meanwhile, in 2023 the company posted revenue of KRW 147.5bn and an operating loss of KRW 1.2bn, yet still reported a small net profit of KRW 0.8bn, and in 2022 it recorded its best result of the past four years with revenue of KRW 200.5bn and operating profit of KRW 15.8bn (7.9% margin).
In other words, revenue peaked in 2022, fell sharply in 2023, and has recovered gradually through 2024 and 2025.
Quarterly results show clear seasonality: third-quarter 2025 revenue of KRW 56.4bn and operating profit of KRW 5.4bn marked the strongest quarter of the year, but fourth-quarter 2025 revenue fell to KRW 29.7bn with an operating loss of KRW 1.5bn.
The first quarter of 2026 saw the loss widen further with revenue of KRW 28.1bn and an operating loss of KRW 3.4bn, before the second quarter of 2026 returned to profit with revenue of KRW 46.7bn and operating profit of KRW 2.4bn, an improvement over the same period a year earlier when second-quarter 2025 operating profit was KRW 1.7bn.
The combined net profit attributable to owners over the trailing four quarters (Q3 2025 through Q2 2026) was roughly KRW 3.1bn, underscoring how heavily the peak third quarter continues to shape full-year results.
The domestic seasonal appliance market is heavily influenced by weather variables such as summer heatwaves and monsoon rains and winter cold spells.
In the summer of 2026, overlapping heatwave forecasts at home and abroad drove broad-based strength in the shares of seasonal appliance makers producing dehumidifiers and window air conditioners.
In Europe, analysts note that a market where residential air conditioning penetration had stood below 25% due to a relatively mild climate and a high share of older buildings is now entering a rapid growth phase amid climate change.
Europe's older, historically preserved buildings and facade regulations have often restricted exterior wall modifications or outdoor unit installation, which is why window air conditioners with an integrated indoor-outdoor unit design that eliminates the need for separate outdoor units and piping work have drawn attention as an alternative.
That said, global appliance makers including Samsung Electronics and LG Electronics have reportedly increased cooling appliance sales in Italy, France, and Spain as well. In Korea, Winix and Shinil Electronics are often grouped alongside Paseco as seasonal appliance names during the summer.
The kitchen and living appliance segment is closely tied to the domestic housing construction cycle, and that segment's performance deteriorated due to a slowdown in housing construction activity.
Paseco began full-fledged European window air conditioner exports via France in May 2026, reporting cumulative export value of $1.56 million in the region.
The company said it plans to gauge demand in the French market before gradually expanding its export footprint across Europe, starting with the initial supply volume to France and progressively increasing supply as it monitors local market response.
According to the French importer, Paseco's window air conditioners have been chosen locally despite being priced roughly three times higher than mobile air conditioners sold in the market, on the strength of noise reduction technology, cooling efficiency, and design.
This extends a strategy already applied in Vietnam, the Philippines, Singapore, and Chile, and now Europe as well. Domestically, the company maintains an edge in wick-type stoves and window air conditioners and is pursuing lineup expansion into higher value-added wellness appliances and commercial equipment markets.
However, the kitchen and living appliance segment remains affected by the domestic housing market slowdown, and the timing of its recovery depends on construction cycle indicators.
Given the seasonal nature of the business, future results are likely to continue showing large quarter-to-quarter swings depending on the intensity of summer heatwaves and monsoon rains and the pace of European export volume expansion.
Paseco's share price trades above its net asset value, reflecting a certain premium to book value.
Given the return to annual profit in 2025 and the scale of combined earnings over the trailing four quarters, the price-to-earnings multiple at which the stock currently trades sits on the higher side relative to periods when the company posted solid results in the past.
This can be interpreted as partly reflecting seasonal and growth themes such as expectations around the 2026 summer heatwave and the expansion of European exports. Dividends were resumed alongside the return to profit in 2025, and their continuation will depend on future earnings stability.
It is also worth noting that the stock belongs to the small-cap segment of KOSDAQ, where trading volume and price volatility tend to be relatively high.
Because quarterly results vary widely, it may be more useful to examine annual-level trends rather than linking a single quarter's temporary earnings improvement directly to valuation.
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 2026-08-23
Paseco became the first Korean company to export window air conditioners to Europe, starting in France in May 2026. Its integrated indoor-outdoor unit design that requires no wall penetration has been seen as well-suited to Europe's residential environment with strict facade regulations.
Europe is known for low residential air conditioning penetration, and analysts suggest cooling appliance demand could grow if heatwaves recur.
2025 consolidated revenue rose 6.4% year over year to KRW 167.9bn, with both operating profit and net profit attributable to owners swinging from losses to profits. The company cited higher window air conditioner sales as the main driver of the earnings improvement.
The profit trend continued into the second quarter of 2026, with revenue of KRW 46.7bn and operating profit of KRW 2.4bn.
Paseco reportedly holds over 70% share of the domestic window air conditioner market. As the brand that first commercialized window air conditioners in Korea, it has established brand recognition and distribution networks. This domestic dominance serves as a foundation for its expansion into new overseas markets.
Following an operating profit of KRW 5.4bn in the third quarter of 2025, the company posted operating losses of KRW 1.5bn and KRW 3.4bn in the fourth quarter of 2025 and first quarter of 2026, respectively. Such quarterly variation stems from a business structure heavily weighted toward seasonal appliance sales. Weather conditions in a given quarter can significantly shift the direction of annual results.
The kitchen and living appliance segment reportedly deteriorated due to a slowdown in domestic housing construction activity. Because this segment relies on OEM/ODM contracts with construction firms and large corporations, a delayed recovery in the construction cycle could slow the segment's revenue recovery. The segment also draws relatively less market attention compared with seasonal appliances.
The seasonal appliance segment has been noted as having its profitability negatively affected by climate variability and volatility in raw material and logistics costs. If cost pressures intensify, the recent return-to-profit trend could face renewed pressure.
As a small-cap KOSDAQ stock, trading volume tends to be limited and price volatility relatively high, which is also worth noting.
The seasonal appliance segment has been cited as having profitability negatively affected by climate variability and volatility in raw material and logistics costs. Given the company's exposure to overseas exports, currency fluctuations can also affect costs and revenue. A renewed rise in raw material prices could constrain the ongoing margin improvement trend.
Global appliance makers including Samsung Electronics and LG Electronics have reportedly increased cooling appliance sales in Europe. If these larger players enter the window air conditioner market more aggressively, Paseco's niche market position could weaken. Domestically, competition with seasonal appliance makers such as Winix and Shinil Electronics also continues.
The kitchen and living appliance segment reportedly deteriorated due to a slowdown in housing construction activity. If the recovery in the construction cycle is delayed, weak sales in that segment could persist for longer. This could partly offset the earnings improvement seen in the seasonal appliance segment.
The third-quarter 2026 earnings release, covering the seasonal appliance peak, should be checked to see how much of the summer heatwave and European export effect actually flowed through to revenue and margins.
The full-year 2026 earnings release and dividend decision disclosure should be checked to see whether the dividend policy resumed in 2025 continues and whether the annual profit trend persists.
It is worth monitoring whether additional disclosures or reports emerge about new export bases or expanded volumes in Europe beyond France, to gauge the pace of progress in the European business.
Alongside the off-peak seasonal appliance results, it is worth examining whether the kitchen and living appliance segment shows signs of recovery and how domestic housing construction indicators are evolving.
Paseco returned to annual profit in 2025, moving past the sizable losses of 2024, though quarterly results still show a wide gap between peak and off-peak seasons.
Its push into the European market with window air conditioners is still in its early stages, having begun in France in May 2026, and the pace of export base expansion and local market reception will be a key variable in determining whether this becomes a new growth pillar.
On the other hand, the kitchen and living appliance segment has weakened amid a slowdown in domestic housing construction, remaining a factor that offsets overall performance.
Raw material and logistics cost volatility, along with the expanding presence of large appliance makers in the European cooling market, are variables that warrant continued attention.
The current share price trades at a premium to net asset value, suggesting that seasonal earnings variability and the progress of the European business will continue to be reflected in how the market values the company.
Investors may want to keep monitoring the upcoming third-quarter results and disclosures related to the expansion of European exports to track the company's progress.
Report written 2026-09-05 · Data as of 2026-09-04
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