PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩30 per share · Prices as of the 2026-10-02 close
Victek has expanded its order backlog on growing electronic-warfare and power-supply exports, but operating profit slowed and net losses returned in the first half of 2026, leaving earnings stability still to be confirmed.
FY2025 consolidated revenue reached KRW 83.0 billion and operating profit KRW 4.4 billion, up 16% and 140.5% year-on-year respectively, extending an earnings recovery.
In Q1 and Q2 2026, operating profit stayed positive but net income turned negative for two consecutive quarters.
Brokerage analysis has noted rapid backlog growth driven by expanding exports of electronic-warfare and power components to domestic weapons-system makers.
The company is preparing multiple new businesses including marine ESS power management, standard ground-defense batteries, satellite power systems, and anti-drone solutions.
Government defense budget expansion—with force-improvement spending set to grow 12.1% annually under the 2025-2029 mid-term defense plan—underpins the sector backdrop.
Victek was founded in 1990 and incorporated in 1996 as a defense and electronics component specialist, operating through two main segments: defense and civilian business.
In defense, the company produces electronic-warfare direction-finding systems, military power supplies, electro-optical equipment, IFF (identification friend-or-foe) devices, TICN (Tactical Information Communication Network) equipment, and other defense products.
Its flagship shipboard direction-finding system, SONATA, was jointly developed with the Agency for Defense Development, and the company separately developed a compact electronic-warfare system, ACES, to expand electronic-warfare revenue.
Its high-voltage power supply (HVPS) is applied across multiple defense systems, including the power module for the KF-21 fighter's AESA radar, export tank thermal-imaging units, and self-propelled artillery fire-control systems.
Its main counterparties are the Defense Acquisition Program Administration and prime contractors such as Hanwha Systems, giving it an indirect export structure through completed weapons-system makers.
In its civilian business, Victek operates unmanned public bicycle rental systems such as Seoul's Ttareungyi, also supplying related equipment such as QR terminals. In 2024, it established a subsidiary, Victek MHD-Rockland, to supply aircraft parts and conduct PBL and MRO business, extending into aviation maintenance.
Given this structure, Victek functions largely as a Tier-2 vendor supplying components and subsystems to larger defense prime contractors.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩14.7B | ₩900M | 5.9% |
| 2025Q3 | ₩24.5B | ₩1.4B | 5.8% |
| 2025Q4 | ₩28.8B | ₩2B | 7.0% |
| 2026Q1 | ₩20.9B | ₩200M | 0.9% |
| 2026Q2 | ₩22.6B | ₩600M | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩74.4B | ₩1.7B | -₩200M | 2.2% | −0.4% | 57.6% |
| 2023 | ₩54.9B | -₩4.3B | -₩4.2B | −7.9% | −7.5% | 74.2% |
| 2024 | ₩71.5B | ₩1.8B | ₩3.8B | 2.5% | 6.6% | 84.0% |
| 2025 | ₩83B | ₩4.4B | ₩4.4B | 5.3% | 7.3% | 108.2% |
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
Victek's FY2025 consolidated revenue rose 16.0% year-on-year to KRW 82.96 billion from KRW 71.49 billion, while operating profit surged 140.5% to KRW 4.37 billion from KRW 1.82 billion, lifting the operating margin from 2.5% to 5.3%.
Net income attributable to owners grew 15.2% to KRW 4.40 billion, confirming a multi-year earnings recovery.
This follows FY2023, when revenue fell to KRW 54.9 billion and the company posted an operating loss of KRW 4.34 billion (a -7.9% margin) and a net loss of roughly KRW 4.2 billion, making the 2024-2025 recovery a clear reversal from that trough.
Quarterly trends, however, have been uneven: operating profit rose from KRW 861 million in Q2 2025 to KRW 1.43 billion in Q3 and KRW 2.01 billion in Q4, but then fell sharply to just KRW 195 million in Q1 2026 despite higher revenue of KRW 20.94 billion, and remained subdued at KRW 624 million in Q2 2026.
Net income swung even more widely: owners' net income jumped to KRW 3.27 billion in Q4 2025, then reversed into net losses of KRW 419 million and KRW 567 million in Q1 and Q2 2026, respectively.
The fact that operating profit stayed positive in both of those quarters while net income turned negative suggests that non-operating items are exerting a material influence on the bottom line.
Over the trailing four quarters (Q3 2025-Q2 2026), combined revenue was roughly KRW 96.8 billion with operating profit of about KRW 4.25 billion, an operating margin of around 4.4%—below the 5.3% margin recorded for full-year 2025.
South Korea's defense market is shaped by government mid-term defense plans and budget allocation.
The 2026 defense budget was set at KRW 65.8 trillion, including KRW 19.9 trillion for force-improvement spending, and the 2025-2029 mid-term defense plan calls for defense spending to grow 7.3% annually and force-improvement spending 12.1% annually, reflecting a sustained buildup amid geopolitical tension.
As of 2024, small and medium-sized enterprises made up 46 of 84 domestic defense companies (55.8%), yet accounted for only KRW 1.5 trillion (5.8%) of the sector's KRW 26.7 trillion total revenue, underscoring an industry structure dominated by large prime contractors.
Within this structure, Victek operates as a Tier-2 vendor supplying components and subsystems to prime contractors such as Hanwha Systems, meaning its ultimate export exposure depends on those primes winning contracts.
SK Securities said in a March 2026 report that Victek is benefiting from structural changes tied to expanding exports of domestic weapons systems, noting that opportunities are growing as Korea's defense industry expands its role in the global security supply chain.
Yuanta Securities also issued a report in April 2026 pointing to expanding electronic-warfare system orders and entry into the power management device business as growth drivers.
That said, since larger defense primes such as LIG Nex1 and Hanwha Systems integrate entire weapons systems in the electronic-warfare and power-device segments, component suppliers like Victek may have relatively limited bargaining power.
Victek said in December 2025 that it completed domestic development of submarine electronic-warfare equipment and achieved its first mass-production shipment, while it is also carrying out a third-phase mass-production contract with Hanwha Systems (contract period February 2025 to January 2027, valued at roughly KRW 3.71 billion), making follow-on orders around that contract's expiry a point to watch.
On the new-business front, an SK Securities report described the company as preparing an eco-friendly marine energy storage system (ESS) battery management system, a standard 6T ground-defense battery, satellite power systems, and an integrated anti-drone solution combining kilometer-range precision LiDAR with electronic-warfare jamming technology.
In June 2026, the company said it completed construction of a marine ESS power management facility at its Songdo headquarters in Incheon and held a completion ceremony, suggesting that business is moving from development toward production readiness.
In December 2025, it also signed an agreement for the development and commercialization of an intelligent high-power compact jammer, indicating continued expansion of its electronic-warfare product lineup.
Most of these new businesses remain at an early commercialization stage, however, and the timing and scale of any actual revenue contribution will need to be confirmed sequentially through future disclosures and contract announcements.
Victek's price-to-earnings multiple is built on an earnings base that swung from a loss in 2023 to a recovery in 2024-2025, and because the absolute size of profit remains modest, the valuation multiple tends to trade closer to the upper end of the range seen during past profitable periods.
Its price-to-book ratio sits in a range that reflects a modest premium to net asset value rather than a discount. The company does pay a dividend, but given the size of earnings relative to the share price, the dividend yield tends to run lower than that of other defense component peers.
Given that the trailing four-quarter results have moderated somewhat relative to the full-year 2025 figures, how the valuation is interpreted may shift depending on upcoming quarterly results.
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
SK Securities said in a March 2026 report that expanding sales of export-oriented electronic-warfare and power components to domestic weapons-system makers is behind the earnings growth. The 16% revenue increase and 140.5% operating-profit jump in FY2025 can be read as a result of this structural shift. A continued rise in the order backlog could improve revenue visibility going forward.
Victek is preparing several new businesses, including a marine ESS battery management system, a 6T ground-defense battery, satellite power systems, and an integrated anti-drone solution.
In June 2026, it said it completed a marine ESS power management production facility in Songdo, Incheon, showing progress toward commercialization. With multiple new businesses advancing in parallel, delays in any single project may have a limited impact on the overall growth narrative.
The 2026 defense budget was set at KRW 65.8 trillion, including KRW 19.9 trillion for force-improvement spending, with the 2025-2029 mid-term defense plan targeting 12.1% annual growth in that spending. This budget expansion could provide a favorable backdrop for order flow across defense component suppliers generally.
Victek's electronic-warfare and power devices are applied across major weapons systems including the KF-21 and L-SAM, aligning with this policy direction.
In Q1 and Q2 2026, operating profit remained positive but owners' net income turned into losses of KRW 419 million and KRW 567 million, respectively. The fact that the operating margin fell sharply from the Q4 2025 level even as revenue grew suggests widening volatility in cost structure or non-operating items. If this pattern continues, the predictability of annual results could decline.
As a Tier-2 vendor supplying components and subsystems to large prime contractors such as Hanwha Systems, Victek's ultimate export performance and order intake depend on the primes' business success.
The fact that small and medium-sized enterprises account for only 5.8% of revenue among the 84 domestic defense companies supports the view that component suppliers may have limited bargaining power within this industry structure. Delays or cancellations in a prime contractor's overseas orders could also affect Victek's follow-on volumes.
Most of the new businesses—marine ESS BMS, a 6T ground-defense battery, satellite power systems, and anti-drone solutions—remain in development or early commercialization.
The timing and scale at which the Songdo production facility, completed in June 2026, will translate into actual revenue have not yet been confirmed.
With several new businesses advancing simultaneously, the possibility of delayed commercialization depending on resource allocation and execution speed cannot be ruled out.
Victek's revenue growth is closely tied to the export performance of domestic weapons-system prime contractors, so policy changes in importing countries or shifts in geopolitical conditions could affect order intake.
Changes in export competition among prime contractors could also ripple through to volumes for a downstream component supplier like Victek.
The Q1 and Q2 2026 cases—where operating profit held up but net income swung to a loss—show that non-operating items can materially affect the bottom line. If this volatility persists, the reliability of quarterly earnings forecasts could be reduced.
Victek is a small-cap defense component maker with high revenue dependence on a limited number of prime contractors and specific weapons systems.
While it is pursuing new-business diversification, revenue contribution from these efforts remains modest, meaning changes to existing contract terms or order volumes could have a relatively outsized impact on results.
The Q3 report disclosure will show whether the operating margin recovers toward Q4 2025 levels and whether net income returns to positive territory.
National Assembly deliberation and finalization of the 2027 defense budget and force-improvement spending will indicate budget allocation trends for defense component makers broadly.
Around the expiry of the TMMR third-phase mass-production contract with Hanwha Systems (contract period February 2025-January 2027), it will be worth checking whether a follow-on contract or volume extension is announced.
It is worth watching whether the marine ESS power management production facility in Songdo, Incheon, completed in June 2026, begins generating actual orders or revenue.
Victek is a defense component maker that has clearly recovered in revenue and operating profit during 2024-2025 after posting a loss in 2023, with a growth structure tied to the export expansion of domestic weapons-system prime contractors through its electronic-warfare systems and power supply devices.
Backlog growth and preparation of diversified new businesses—marine ESS, ground-defense batteries, satellite power, and anti-drone solutions—stand out as positive factors.
On the other hand, the fact that non-operating earnings volatility widened in H1 2026, with net income turning negative for two consecutive quarters even as operating profit stayed positive, is a negative factor.
As a Tier-2 vendor dependent on large prime contractors, the company also remains exposed to those primes' ultimate export performance. Most new businesses remain at an early commercialization stage, so the timing of any actual revenue contribution will need to be confirmed sequentially through future disclosures.
Overall, this stock appears to sit at a stage where a structural growth story coexists with near-term earnings volatility.
Report written 2026-09-05 · Data as of 2026-09-04
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