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
Daeah T&I, the leading domestic railway signaling company, extended revenue and net-income growth through 2025 even as operating margin narrowed, and now faces major catalysts in the GTX-C line breaking ground and the nationwide rollout of KTCS-2.
2025 consolidated revenue reached KRW 153.19 billion and owners' net income KRW 20.46 billion, both up from the prior year.
The GTX-C line broke ground in late April 2026, setting the stage for revenue recognition on a roughly KRW 79 billion signaling contract.
The localized KTCS-2 program is set to expand from the Gyeongbu high-speed line to the Honam and Suseo lines, with the company viewed as the only provider capable of offering a full total solution.
Quarterly results remain volatile: operating profit fell to KRW 0.62 billion in Q1 2026 before partially recovering to KRW 1.80 billion in Q2.
Diversification into dairy manufacturing/distribution and venture investment is underway, but both remain at an early stage with no confirmed revenue contribution yet.
Daeah T&I is a railway signaling and control systems specialist founded in 1995 and listed on KOSDAQ in 2001, positioned as the leading domestic company in the railway signaling field.
Its core business covers the development, supply, and maintenance of centralized traffic control (CTC) systems, electronic interlocking devices, the Korean Train Control System (KTCS-2), and the wireless-based urban rail train control system (KTCS-M).
The company works with Korea National Railway, Hyundai Rotem, SK Ecoplant, and the Egyptian National Railway, securing orders from overseas public agencies and companies beyond the domestic market.
Overseas projects include the modernization of Egypt's railway signaling system, the Jakarta LRT in Indonesia, and the Manila MRT-7 signaling system in the Philippines. The company currently operates through seven subsidiaries to pursue technology development and market expansion at home and abroad.
As part of diversification, it entered the premium dairy manufacturing and distribution business in the first half of 2025 and established an Indonesian local subsidiary in the third quarter of that year to target the Southeast Asian market directly.
In terms of competitive positioning, Hyundai Rotem's rail solutions division and S-Traffic also operate in the rail infrastructure and signaling space, but the company is viewed as effectively the only provider capable of offering a total solution in the KTCS-2 market.
In the control-systems segment, a consortium led by the company won a roughly KRW 250 billion contract for the Second Railway Traffic Control Center project in 2023, leading the transition toward an AI and big-data-based control system.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩38.7B | ₩3.3B | 8.5% |
| 2025Q3 | ₩30.3B | ₩1.5B | 5.1% |
| 2025Q4 | ₩44.7B | ₩1.1B | 2.6% |
| 2026Q1 | ₩28.6B | ₩600M | 2.2% |
| 2026Q2 | ₩30.5B | ₩1.8B | 5.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩105.5B | ₩9.4B | ₩8.4B | 8.9% | 7.6% | 81.6% |
| 2023 | ₩112.3B | ₩3.6B | ₩10.7B | 3.2% | 8.8% | 106.6% |
| 2024 | ₩149.1B | ₩7.9B | ₩14.7B | 5.3% | 11.0% | 118.6% |
| 2025 | ₩153.2B | ₩7.6B | ₩20.5B | 4.9% | 13.3% | 118.4% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Consolidated revenue in 2025 reached KRW 153.19 billion, up 2.7% from KRW 149.15 billion the prior year, continuing a growth trend. However, operating profit came in at KRW 7.56 billion, slightly down from KRW 7.91 billion a year earlier, pushing the operating margin down from 5.3% to 4.9%.
In contrast, owners' net income rose 38.9% to KRW 20.46 billion from KRW 14.72 billion, extending the earnings recovery seen after KRW 8.42 billion in 2022 and KRW 10.75 billion in 2023.
On a quarterly basis, revenue peaked at KRW 38.73 billion with operating profit of KRW 3.28 billion in Q2 2025, before falling to KRW 30.26 billion and KRW 1.54 billion in Q3, then rising again to KRW 44.74 billion in revenue in Q4 while operating profit stayed at KRW 1.15 billion.
In 2026, revenue and operating profit fell further to KRW 28.58 billion and KRW 0.62 billion in Q1, before partially recovering to KRW 30.46 billion and KRW 1.80 billion in Q2, illustrating the revenue and profit swings typical of a project-based, percentage-of-completion business.
Owners' net income also swung widely by quarter, from KRW 5.68 billion in Q2 2025 to KRW 3.99 billion in Q3, KRW 6.33 billion in Q4, KRW 2.06 billion in Q1 2026, and KRW 1.93 billion in Q2 2026.
On the cash-flow side, operating cash flow showed a large inflow of KRW 48.59 billion in 2024 but reversed to an outflow of KRW 1.51 billion in 2025, reflecting how the timing of contract-payment collections drives large year-to-year swings in cash generation.
The debt ratio rose from 81.6% in 2022 to 106.6% in 2023 and 118.6% in 2024, before leveling off at 118.4% in 2025, while owners' equity expanded from KRW 133.77 billion in 2024 to KRW 154.30 billion in 2025, indicating that the capital base grew alongside the top line.
The domestic railway signaling market has entered a medium- to long-term order cycle driven by large-scale investment under the government's Fourth National Railway Network Plan (2021-2030) and resignaling demand tied to GTX and urban rail projects.
Korea National Railway plans to sequentially roll out KTCS-2 across the national high-speed rail network by 2028, starting with the Gyeongbu line, with installation projects for the Honam and Suseo lines expected to be tendered sometime in 2027.
Analysis suggests adopting KTCS-2 could deliver roughly KRW 1.21 trillion in cost savings compared with upgrading the existing foreign-made ATC signaling system, reinforcing the economic rationale for localization.
Structurally, urban rail systems use manufacturer-specific signaling systems that create interoperability challenges, and the company developed KTCS-M, based on the international IEEE1474 standard, to address this issue.
Competitor Hyundai Rotem posted KRW 2.09 trillion in revenue (36% of its total) from its rail solutions division in 2025, growing into a comprehensive rail vehicle and signaling player, which differs from the company's focus as a dedicated signaling specialist in both business scope and revenue scale.
In the KTCS-2 market, the company is viewed as effectively the only provider capable of offering a total solution, suggesting its position could gain visibility as the localization program advances.
Internationally, the value of global railway construction projects is estimated at roughly USD 6 trillion amid the spread of low-carbon transportation, and the company's track record in Egypt, Indonesia, and the Philippines could translate into opportunities to participate in overseas signaling projects.
The GTX-C line saw construction delayed after its January 2024 groundbreaking ceremony, but on April 30, 2026, Hyundai Engineering & Construction began fieldwork on the Yangju Deokjeong Station-Deokjeong Depot section and the Uijeongbu Station section, creating conditions for signaling-related revenue recognition to move forward.
The company holds a roughly KRW 79 billion signaling supply contract for the GTX-C line secured in 2024, and related revenue is expected to be recognized progressively as excavation permits are issued section by section.
In the control-systems area, a project to integrate control systems across Seoul's urban rail Lines 1 through 9 into a smart control system is underway with a completion target of December 2026.
The Second Railway Traffic Control Center project, targeted for completion in June 2027, is expected to continue upgrading control systems using AI, cloud, and big-data technologies.
Overseas, the company is using the Indonesian local subsidiary established in the third quarter of 2025 as a base to directly pursue the Southeast Asian rail infrastructure market, including the Jakarta LRT.
The order backlog grew from KRW 250.3 billion in 2022 to KRW 435.9 billion in 2023 and KRW 501.1 billion in 2024, and one outlet reported in May 2026 that the backlog remained at around KRW 501.1 billion as of the end of 2025.
On the diversification front, production facilities and distribution networks for a premium dairy brand are being built out, and the pace at which this new business contributes to revenue remains something to monitor.
The current share price trades at a certain premium to net asset value at a stage when owners' net income continues on a profitable footing, which is also reflected in the self-calculated price-to-book ratio running somewhat above the exchange's officially published figure.
On the earnings side, while full-year net income in 2025 rose from the prior year, the wide swings seen across the most recent four quarters (Q3 2025 through Q2 2026) mean that annual results alone warrant caution when interpreting valuation.
The company did not pay a dividend in its most recent fiscal year, meaning shareholder returns currently depend on reinvestment and business diversification rather than dividends.
Given the percentage-of-completion revenue recognition structure typical of project-based businesses, quarterly results carry large base effects, so it is worth examining the order backlog and project schedules together rather than drawing conclusions from net income at any single point in time.
Because order-driven infrastructure companies within the KOSDAQ IT/software sector tend to show this kind of earnings volatility, interpreting valuation multiples against industry averages requires an understanding of project delivery timing.
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 2026-08-21
The localized KTCS-2 program is set to expand beyond the Gyeongbu high-speed line to the Honam and Suseo lines, and the company is viewed as effectively the only provider capable of offering a total solution.
The GTX-C line's groundbreaking has also created conditions for revenue recognition on a roughly KRW 79 billion contract. Budgets tied to the localization program have been expanding as its cost-saving benefits gain attention.
Building on its track record in Egypt, Indonesia, and the Philippines, the company established a local subsidiary in Indonesia to pursue the Southeast Asian market directly.
The favorable backdrop of a growing global rail industry, with worldwide railway construction projects estimated at roughly USD 6 trillion amid the spread of low-carbon transportation, also supports this expansion.
Large control-systems projects secured in 2023, including the Second Railway Traffic Control Center (targeted for completion in June 2027) and the integrated smart control system for Seoul subway Lines 1-9 (targeted for December 2026), are proceeding sequentially, broadening the company's footprint in AI and big-data-based control systems.
Because revenue and profit are recognized based on project completion rates, quarterly results swing widely; operating profit fell to KRW 0.62 billion in Q1 2026 and had not fully recovered by Q2. Even as annual results trend upward, the low predictability at the quarterly level is a factor to weigh.
The GTX-C line took roughly two years to move from its January 2024 groundbreaking ceremony to actual construction, illustrating how public-sector projects can face schedule delays tied to policy and administrative procedures. There remains a possibility that the conversion of backlog into revenue could be delayed beyond expectations.
The dairy manufacturing and distribution business entered in the first half of 2025 is still at an early stage with no confirmed revenue contribution, and given its limited connection to the core railway signaling business, the efficiency of resource allocation is worth monitoring.
Because the signaling business recognizes revenue based on project completion percentages, delays in the client's permitting and administrative procedures directly affect results.
As the GTX-C case shows, actual construction can take years to begin even after a groundbreaking ceremony, making it difficult to predict when backlog will convert into actual revenue.
The debt ratio rose from 81.6% in 2022 to 118.4% in 2025, and operating cash flow swung from an inflow of KRW 48.59 billion in 2024 to an outflow of KRW 1.51 billion in 2025, showing large year-to-year variability. Cash generation can fluctuate depending on the timing of payment collections on large projects.
As non-core new businesses such as dairy products and venture investment increase, concerns may arise about the diversion of resources and management attention away from the core railway signaling competency. The timing and scale of monetization for these new businesses remain uncertain.
Provisional Q3 2026 results are due for disclosure - a point to check whether recently weakened operating margin and revenue volatility are improving.
Monitor the progress of excavation permits by section on the GTX-C line - this will indicate whether revenue recognition on the roughly KRW 79 billion contract is accelerating.
Target completion date for the integrated smart control system across Seoul subway Lines 1-9 - worth checking whether it completes on schedule and the size of any follow-on maintenance contracts.
Planned tender for the KTCS-2 installation project on the Honam and Suseo high-speed lines - a point to check whether and to what scale the company wins the order.
Target completion date for the Second Railway Traffic Control Center - worth checking whether the AI and big-data-based control system build-out is completed.
Daeah T&I has built a distinctive position in the domestic railway signaling market, extending revenue and net-income growth through 2025. However, growth in scale has not always moved in lockstep with profitability improvement, as the operating margin narrowed from 8.9% in 2022 to 4.9% in 2025.
With major projects such as the GTX-C groundbreaking, the nationwide KTCS-2 rollout, the Second Railway Traffic Control Center, and the integrated Seoul urban rail control system proceeding sequentially through 2026-2027, the future direction of earnings is likely to hinge on the pace of these projects.
At the same time, non-core diversification such as the dairy business, quarterly earnings volatility, and a rising debt ratio are factors that warrant balanced attention.
Investors will want to continue tracking upcoming quarterly results and the progress of GTX-C- and KTCS-2-related orders to gauge the pace at which backlog converts into revenue.
Report written 2026-09-05 · Data as of 2026-09-04
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