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
Smotronic swung back to two consecutive profitable quarters in the first half of 2026 after a sharp earnings deterioration in 2025, while its controlling shareholder changed again from Futronic to Autronic.
Net profit turned positive for two straight quarters in Q1-Q2 2026, with Q2 revenue the highest among the last five quarters.
2025 saw operating profit collapse to just KRW 0.45 billion (0.1% margin) and an owner net loss of about KRW 10.6 billion.
The largest shareholder changed twice within about a year, from Dadam Harmony No.1 to Futronic to Autronic, driven by Blackstone's acquisition of Futronic.
Partner firm Rihaon filed a roughly KRW 700 million damages lawsuit over a cut in India production order volumes.
The company renamed itself from Woosu AMS to Smotronic in March 2026 while expanding its EV driveline component portfolio.
Smotronic was founded in 1983 as Woosu Machinery and listed on KOSDAQ in 2003; it renamed itself from Woosu AMS to Smotronic in March 2026. Starting from its 2003 listing, the company entered the India and Czech Republic markets in 2007 and later expanded production with an aluminum die-casting plant.
Its product lineup spans internal-combustion parts such as engine brackets, transmissions, gear shaft forks, steering knuckles and intake manifolds, alongside EV driveline components including rotor shafts, differential assemblies, PMSM motors and inverters.
Its main customers are Hyundai Motor and Kia, and it operates as a Tier-1 supplier involved from new-model development through mass production.
In July 2025, Busan-based auto parts maker Futronic became the largest shareholder with an 18.27% stake acquired through open-market purchases and a block deal, displacing former controlling entity Dadam Harmony No.1, which had been linked to former HN Inc. head Jeong Dae-sun.
In July 2026, global private equity firm Blackstone agreed to acquire a majority stake in Futronic for roughly KRW 1 trillion, prompting Futronic's 28.91% Smotronic stake to be transferred to Autronic, the holding company controlled by founder Ko Jin-ho's family, making Autronic the new largest shareholder.
This was widely interpreted as a governance restructuring designed to keep control of Smotronic within the founding family separate from the Futronic sale.
Amid intensifying competition as large conglomerates such as Hyundai Mobis and Samsung Electro-Mechanics enter the actuator market, affiliate Futronic is pursuing a strategy to extend its actuator technology into robotic joints, a factor that could also influence Smotronic's business positioning.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩93.5B | ₩800M | 0.8% |
| 2025Q3 | ₩94.4B | ₩500M | 0.5% |
| 2025Q4 | ₩92.5B | -₩1.5B | −1.6% |
| 2026Q1 | ₩95B | ₩3.4B | 3.6% |
| 2026Q2 | ₩105.2B | ₩3B | 2.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩356.9B | ₩1.7B | -₩17.5B | 0.5% | −24.0% | 280.7% |
| 2023 | ₩348B | ₩8.4B | ₩10.2B | 2.4% | 12.4% | 203.6% |
| 2024 | ₩354.2B | ₩9B | ₩7.3B | 2.6% | 8.1% | 217.1% |
| 2025 | ₩368.6B | ₩500M | -₩10.6B | 0.1% | −13.5% | 240.8% |
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
Consolidated 2025 revenue rose to KRW 368.6 billion from KRW 354.2 billion in 2024, but operating profit fell sharply to just KRW 0.45 billion from KRW 9.05 billion in 2024, pushing the operating margin down to 0.1%.
Owner net income turned negative at roughly KRW -10.6 billion in 2025, reversing the profitable trend of KRW 10.2 billion in 2023 and KRW 7.3 billion in 2024.
By quarter, Q4 2025 was the weakest, posting an operating loss of KRW 1.52 billion and a net loss of KRW 6.83 billion, the key driver of the annual deterioration, while Q2 2025 (-KRW 1.7 billion) and Q3 2025 (-KRW 1.1 billion) also recorded net losses.
In 2026, however, a clear recovery emerged: Q1 revenue reached KRW 95.0 billion with operating profit of KRW 3.38 billion and net profit of KRW 4.17 billion, and Q2 revenue climbed further to KRW 105.2 billion, the highest of the last five quarters, with operating profit of about KRW 3.04 billion and net profit of about KRW 3.06 billion.
This means the first half of 2026 delivered two consecutive quarters of net profit, a clear contrast to the three consecutive quarters of net losses recorded in 2025.
The debt ratio eased from 280.7% in 2022 to 203.6% in 2023 before climbing again to 217.1% in 2024 and 240.8% in 2025, staying above 200% throughout the four-year window and pointing to elevated financial leverage.
Operating cash flow peaked at KRW 31.1 billion in 2023, plunged to KRW 1.68 billion in 2024, and recovered to KRW 10.2 billion in 2025.
Given that 2022 revenue of KRW 356.9 billion still came with a large net loss of about KRW -17.5 billion, the past four years show a highly volatile pattern that has swung repeatedly between profit and loss.
Korea's auto parts industry is in a transitional phase where structural demand softening for internal-combustion parts and a shift toward EV driveline components are occurring simultaneously.
According to FnGuide's corporate analysis, Smotronic's revenue grew as it shifted from transmission and engine parts toward electrification, but rising cost burdens and expenses eroded profitability during that transition.
The same analysis noted the company is combining die-casting-based lightweight material technology with electronics-based circuit design to strengthen its competitiveness in electrified components.
Expansion of its third India plant is also cited as a factor stabilizing the supply chain by accelerating Asia and North America export localization and diversifying customers across North America, Europe and Southeast Asia.
As a Tier-1 supplier to Hyundai Motor and Kia, its performance is directly tied to the automakers' production plans and ordering policies, and it has recently faced friction with a partner over order-volume adjustments at an overseas production site.
In the electrified component space, large conglomerates such as Hyundai Mobis and Samsung Electro-Mechanics are also expanding into the actuator and drive component market, making the competitive landscape for small and mid-sized suppliers more complex.
The Futronic-Autronic group that controls Smotronic is pursuing a strategy to extend actuator technology beyond automotive into the humanoid robot market, raising the possibility that the addressable end-market could broaden from automotive to robotics.
The two consecutive profitable quarters in the first half of 2026 suggest some easing of cost pressure from the electrification transition, but whether this continues past Q3 needs to be confirmed in upcoming results.
Capacity expansion through the third India plant is cited as a foundation for growing Asia and North America export volumes and diversifying the customer base.
However, the damages lawsuit from partner Rihaon, which stemmed from disagreement over volume guarantees for an India production project, remains a case illustrating partner-management risk amid overseas production expansion, regardless of the litigation's outcome.
With the largest shareholder having shifted from Futronic to Autronic while keeping control within founder Ko Jin-ho's family, whether business ties with the Futronic-Autronic group deepen going forward is a variable for medium-term strategy.
Blackstone is reportedly planning to focus on supporting overseas market development rather than deeply engaging in management after acquiring Futronic, a dynamic that could indirectly affect Smotronic's export strategy as well.
No specific public revenue guidance or new order disclosures from the company have been identified, so continued monitoring through future filings and IR materials is warranted.
On a trailing four-quarter basis (Q3 2025 through Q2 2026), the company remains in a net-loss position, making it difficult to gauge the share price against earnings in the usual sense. That said, back-to-back net profits in Q1 and Q2 2026 indicate that earnings recovery is underway on a quarterly basis.
According to data from iTooza, the average price-to-earnings ratio over the past five years stood at roughly 26.8 times, with an average price-to-book ratio of about 1.5 times. Relative to net asset value, the current share price sits close to book value without a large premium or discount.
No dividends appear to have been paid in recent years, suggesting that earnings recovery trends, rather than dividend appeal, are the key variable in how the shares are assessed. A debt ratio persistently above 200% is another factor that should be weighed alongside any valuation judgment.
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
Both operating profit and net income turned positive in Q1 and Q2 2026, with Q2 revenue of KRW 105.2 billion marking the highest of the last five quarters. This stands in sharp contrast to the operating and net losses of Q4 2025. Notably, revenue growth and margin improvement were confirmed together for two consecutive quarters.
Amid Blackstone's acquisition of Futronic, the Smotronic stake was transferred to founder Ko Jin-ho's family holding company Autronic, keeping control within the founding group.
The company holds an EV driveline portfolio including rotor shafts, PMSM motors and inverters, positioning it to respond to automakers' electrification shift. Affiliate Futronic's strategy to extend actuator technology into the robotics market also raises the possibility of future collaboration.
The company has operated overseas production subsidiaries in India and the Czech Republic since 2007, and is expanding its third India plant to boost export volumes to Asia and North America. It is also pursuing customer diversification to broaden its supply chain across North America, Europe and Southeast Asia. This can be read as an attempt to reduce reliance on Hyundai Motor and Kia.
2025 operating profit fell sharply to KRW 0.45 billion from KRW 9.05 billion in 2024, with the operating margin at just 0.1%. Owner net income turned negative at about KRW -10.6 billion, reversing the profitable trend of 2023-2024. Q4 saw simultaneous operating and net losses that drove the annual deterioration.
The debt ratio stood at 280.7% in 2022, 203.6% in 2023, 217.1% in 2024 and 240.8% in 2025, staying above 200% for four straight years. Operating cash flow also swung widely, dropping to KRW 1.68 billion in 2024. This financial structure, combined with earnings volatility, could strain capital flexibility.
The largest shareholder changed twice within about a year—from Dadam Harmony No.1 to Futronic to Autronic—driven by the external event of Blackstone's Futronic acquisition. At the same time, partner Rihaon filed a roughly KRW 700 million damages suit alleging a unilateral cut in India production order volumes. The overlap of governance change and partner friction has kept market attention on management stability.
The company's results are heavily dependent on Hyundai Motor and Kia's production plans and ordering policies. The 2025 results showed that even as revenue grows during the shift from internal combustion to electrification, rising cost burdens can erode profitability. Changes in automakers' electrification pace or volume allocation could directly affect performance.
The largest shareholder changed twice in the past year, driven by the external capital-markets event of Blackstone's Futronic acquisition. Future strategic shifts within the Futronic-Autronic group or further stake movements could affect Smotronic's management direction. Disclosure and procedural risks tied to intra-group stake transfers should also be considered.
The debt ratio has stayed above 200% for four consecutive years, a high-leverage structure that could be sensitive to changes in interest rates or funding conditions.
The damages lawsuit from partner Rihaon, while modest in claimed amount, raises questions about contract and volume-management practices during overseas production expansion. Depending on the outcome, additional financial or reputational burden cannot be ruled out.
Q3 2026 earnings release will show whether the profit streak from Q1-Q2 continues and whether revenue growth persists.
Confirmation is needed via disclosures on whether Autronic's roughly KRW 28.2 billion acquisition of the Smotronic stake has actually closed and whether governance remains stable afterward.
The progress of the first-instance trial in Rihaon's damages lawsuit and the company's response should be tracked.
Progress on the third India plant expansion and whether resulting Asia/North America export growth translates into actual revenue and orders should be checked.
Smotronic showed a recovery pattern in the first half of 2026, returning to two consecutive profitable quarters after operating and net income deteriorated sharply in 2025. Over the same period, revenue also hit its highest quarterly level in five quarters, accompanying the profit recovery with scale growth.
However, a debt ratio above 200% for four straight years and the large net loss in 2025 highlight significant earnings volatility.
The controlling shareholder changed twice within about a year, moving from Dadam Harmony No.1 to Futronic and then to Autronic, against the backdrop of the external capital-markets event of Blackstone's acquisition of Futronic.
The damages lawsuit from partner Rihaon remains a case that exposed volume-management risk amid overseas production expansion.
Expansion of the third India plant and growth of the EV driveline component portfolio point toward a medium-term diversification direction, but whether these translate into revenue and profit will require continued confirmation through upcoming quarterly results and disclosures.
Report written 2026-09-05 · Data as of 2026-09-04
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