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
KC Cottrell shows a pattern of narrowing losses after years of shrinking revenue through 2025, but repeated audit opinion disclaimers and an ongoing listing-eligibility review remain unresolved overhangs.
2025 consolidated revenue was KRW 192.9 billion, down 43.4% from KRW 340.9 billion in 2024, while the operating loss narrowed sharply to -KRW 8.9 billion from -KRW 67.8 billion.
Operating profit turned positive at KRW 1.6 billion with net income of KRW 8.6 billion in Q1 2026, but the company swung back to an operating loss of KRW 3.0 billion in Q2 2026.
The Korea Exchange extended the company's listing-eligibility improvement period to April 16, 2027, leaving it to demonstrate restored financial soundness and internal controls.
Operating cash flow has been negative for four consecutive years from 2022 through 2025, pointing to a gap between improving reported earnings and actual cash generation.
The company is pursuing revenue expansion through Southeast Asian markets (Thailand, Philippines, India) and domestic steel and power plant retrofit orders such as the Yeongheung Unit 5 contract.
Founded in 1973, KC Cottrell is an air-pollution-control engineering company that was spun off from KC Green Holdings and relisted in 2010.
Its core business is supplying, maintaining, and operating dust-collection equipment (electric precipitators and similar systems) and gas-treatment facilities (desulfurization and denitrification) for large emission sources such as coal-fired power plants, steel mills, cement plants, and petrochemical facilities.
Its largest shareholder is KC Green Holdings, and it executes projects at home and abroad through overseas units including Changchun KC Envirotech, KC Cottrell Vietnam, KC Cottrell India, KC Cottrell Taiwan, and Nol-Tec Systems across five countries.
The company states it has completed more than 6,000 projects with a sizable engineering workforce.
It has recently broadened its portfolio into carbon capture, utilization and storage (CCUS), residue hydro-desulfurization catalyst re-manufacturing (RHDS), tunnel and underground-space dust collectors, and semiconductor process F-gas treatment technology.
Revenue is characteristically order-driven and can swing sharply between quarters depending on the progress recognition timing of large plant projects.
In terms of competitive positioning, the company has a long track record in domestic electric precipitator equipment, but recent execution risks have surfaced through cost and progress-payment management issues on large overseas projects such as the Taichung, Taiwan coal power plant and the Long Phu, Vietnam power plant.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩53B | -₩400M | −0.8% |
| 2025Q3 | ₩47.9B | -₩1.6B | −3.3% |
| 2025Q4 | ₩39.7B | -₩6.6B | −16.6% |
| 2026Q1 | ₩24.8B | ₩1.6B | 6.4% |
| 2026Q2 | ₩15.5B | -₩3B | −19.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩421.6B | ₩3.6B | -₩22B | 0.9% | −39.2% | 470.0% |
| 2023 | ₩436.6B | -₩21.1B | -₩44.5B | −4.8% | −108.9% | 899.8% |
| 2024 | ₩340.9B | -₩67.8B | -₩31.1B | −19.9% | −57.6% | 355.7% |
| 2025 | ₩192.9B | -₩8.9B | -₩10.3B | −4.6% | −20.1% | 289.6% |
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 revenue in 2025 was KRW 192.9 billion, down 43.4% from KRW 340.9 billion in 2024, following a two-year sequence of steep declines from KRW 436.6 billion in 2023 and KRW 421.6 billion in 2022.
The operating loss narrowed markedly to -KRW 8.9 billion in 2025 from -KRW 67.8 billion in 2024, and compares against -KRW 21.1 billion in 2023 and a small operating profit of KRW 3.6 billion in 2022, suggesting the company may be passing through a trough.
Net loss attributable to owners also narrowed to -KRW 10.3 billion in 2025 from -KRW 31.1 billion in 2024 and -KRW 44.5 billion in 2023.
On a quarterly basis, revenue was KRW 47.9 billion with an operating loss of KRW 1.6 billion in Q3 2025, and KRW 39.7 billion with an operating loss of KRW 6.6 billion in Q4 2025; revenue then fell further to KRW 24.8 billion in Q1 2026, yet the company posted an operating profit of KRW 1.6 billion and net income attributable to owners of KRW 8.6 billion.
In Q2 2026, however, revenue shrank further to KRW 15.5 billion and the company reverted to an operating loss of KRW 3.0 billion and a net loss of KRW 0.1 billion.
These quarter-to-quarter swings illustrate an order-driven business highly sensitive to the timing of project revenue recognition and cost-ratio fluctuations. On the balance sheet, the debt ratio spiked to 899.8% in 2023 from 470.0% in 2022, then eased to 355.7% in 2024 and 289.6% in 2025, though it remains elevated.
Operating cash flow was negative for four straight years -KRW 121.7 billion (2022), -KRW 92.8 billion (2023), -KRW 11.3 billion (2024), and -KRW 26.1 billion (2025) -suggesting a gap between the narrowing accounting losses and actual cash generation.
The air-pollution-control equipment industry is a classic order-driven business whose performance tracks capacity additions and aging-equipment replacement investment across heavy industries such as power generation, steel, cement, and petrochemicals.
Domestically, new coal-fired power plant orders have entered a limited phase, and demand is now centered on performance-upgrade and replacement work on existing facilities, such as the Yeongheung Unit 5 electric precipitator replacement contract.
Overseas, coal power and industrial-facility projects are proceeding in Southeast Asia (Thailand, Philippines, India) as well as in Taiwan and Vietnam, and the company has identified these regions as targets for order expansion.
However, large overseas projects carry significant uncertainty around cost management and progress-payment collection, as illustrated by the cost dispute on the Taichung, Taiwan power plant project that contributed to an audit opinion disclaimer.
As decarbonization policy spreads, demand for new environmental technologies such as CCUS and semiconductor process byproduct (F-gas) treatment is expanding, which can be interpreted as a diversification opportunity for incumbent dust-collection and desulfurization/denitrification equipment makers.
The competitive landscape features numerous domestic and international environmental equipment providers competing project by project, meaning the outcome of individual large contracts can materially swing the earnings cycle.
In June 2026, the Korea Exchange granted the company a listing-eligibility improvement period through April 16, 2027, leaving it to prove restored financial health and normalized internal controls within that window.
The company has laid out a plan to repay borrowings in stages with a target of full repayment by the end of 2027, and to improve cash flow by collecting progress payments from the Taichung, Taiwan and Long Phu, Vietnam projects.
To strengthen management transparency, it is also revamping internal controls, incorporating outside-director recommendations from the Korea Listed Companies Association, tightening monitoring of estimated cost changes, formalizing approval procedures for major bid contracts, and setting up a dedicated audit organization.
On the commercial side, the company said it aims to rebuild its revenue base by pursuing expanded orders in Southeast Asian markets (Thailand, Philippines, India) and domestic steel and power projects, supported by a recovering credit rating.
In July 2026 it won an order from Korea South-East Power for the replacement of collecting plates and discharge electrodes on the Yeongheung Unit 5 electric precipitator, valued at KRW 8.63 billion with a contract period from July 21 to December 29, 2026.
New-business efforts continue through CCUS commercialization, tunnel and underground-space dust collectors, and semiconductor F-gas treatment technology development aimed at new markets.
On profitability, the company has stated it intends to shift from volume-driven to quality-driven order intake and tighten project execution budget management to improve margins.
After several years of net losses through 2025, net income attributable to owners turned positive on a trailing four-quarter basis (Q3 2025 through Q2 2026), moving the stock into a range where a price-to-earnings multiple can be calculated.
That said, given the alternation between quarterly profits and losses, this multiple can shift considerably depending on which twelve-month window is used as the reference. The shares currently trade in a range that carries a premium to owners' equity per share rather than a discount to net asset value.
The company does not currently pay a dividend, so dividend-based comparisons with dividend-paying peers in the sector are not directly applicable.
Given the special circumstance of an ongoing listing-eligibility improvement period, valuation metrics here may be more sensitive to balance-sheet and listing-continuity issues than for a typical earnings-cycle company.
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
The operating loss narrowed sharply in 2025 compared with the prior year, and both operating profit and net income turned positive in Q1 2026. Even as revenue declined, this was accompanied by an improved cost ratio and expense efficiencies, which can be read as the company passing through an earnings trough. However, the return to a loss in Q2 2026 means this trend has not yet stabilized.
The company is building a new-business portfolio beyond traditional air-pollution-control equipment through CCUS commercialization, tunnel and underground-space dust collectors, and semiconductor F-gas treatment technology.
This aligns with decarbonization policy and tightening semiconductor process regulations, and can be read as a foundation for medium-term business diversification.
The company has stated it aims to rebuild its revenue base by expanding orders in Southeast Asian markets (Thailand, Philippines, India) and domestic steel and power projects.
New orders have continued, including a July 2026 contract with Korea South-East Power for the Yeongheung Unit 5 electric precipitator replacement worth KRW 8.63 billion.
Revenue fell sharply for two straight years, from KRW 436.6 billion in 2023 to KRW 340.9 billion in 2024 and KRW 192.9 billion in 2025.
Q2 2026 revenue of KRW 15.5 billion was also far below the KRW 53.0 billion recorded in the same period a year earlier, illustrating a structural vulnerability in which the revenue base can shrink quickly when large projects are absent.
Operating cash flow has been negative for four consecutive years from 2022 to 2025 (-KRW 121.7 billion, -KRW 92.8 billion, -KRW 11.3 billion, -KRW 26.1 billion).
Regardless of the narrowing accounting losses, cash has continued to flow out, meaning improved reported earnings have not yet translated into improved cash flow.
The debt ratio spiked to 899.8% in 2023 before easing to 289.6% in 2025, yet it remains elevated.
This coincides with disclaimer audit opinions for fiscal 2024 and the first half of 2025 and the resulting listing-eligibility improvement period through April 16, 2027, meaning balance-sheet strain and listing-continuity uncertainty exist simultaneously.
A disclaimer of opinion on the fiscal 2024 audit report triggered delisting eligibility, and trading was suspended in March 2025; even after obtaining an unqualified opinion through a re-audit, the Korea Exchange granted an improvement period only through April 16, 2027.
Market commentary has noted that if financial soundness and normalized internal controls are not demonstrated within that window, delisting discussions could resurface.
There has been a case where the auditor could not confirm the reasonableness of an increase in total estimated costs on the Taichung, Taiwan AQCS retrofit project, contributing to a disclaimer of opinion.
Delays in collecting progress payments or additional cost overruns on overseas projects such as Long Phu, Vietnam could again increase financial strain.
The company entered a corporate workout program in 2024 and has been carrying out balance-sheet restructuring with its main creditor bank, with guarantee obligations tied to overseas projects flagged as a financial risk.
With total assets having shrunk to roughly KRW 209.5 billion as of Q1 2026 and the debt ratio still around 250%, liquidity management remains an ongoing challenge.
The Q3 2026 quarterly report filing will show which direction revenue and profitability move after the Q1 2026 profit and Q2 2026 loss.
This is the contract completion date for the Yeongheung Unit 5 electric precipitator replacement work, a point to check the related revenue recognition and margin contribution.
Whether the fiscal 2026 audit opinion remains unqualified is a key precondition for the listing-eligibility review.
This is the expiration date of the Korea Exchange's listing-eligibility improvement period, when the exchange will evaluate the company's implementation of its improvement plan and going-concern status to make a final listing decision.
This is the company's stated target deadline for fully repaying its borrowings, a point at which the actual progress of repayment can be checked against the announced balance-sheet improvement plan.
KC Cottrell narrowed its losses through the large revenue decline and net losses that persisted into 2025, and briefly turned profitable in Q1 2026, only to swing back to a loss in Q2 2026, reflecting significant quarter-to-quarter volatility.
Operating cash flow has remained negative for four consecutive years, indicating a gap between improving reported earnings and actual cash generation.
Following disclaimer audit opinions for fiscal 2024 and the first half of 2025, the company was granted a listing-eligibility improvement period through April 16, 2027, during which it must demonstrate restored financial soundness and normalized internal controls.
At the same time, it is pursuing revenue-base expansion through Southeast Asian markets (Thailand, Philippines, India), domestic steel and power equipment replacement orders such as Yeongheung Unit 5, and new businesses including CCUS and semiconductor F-gas treatment.
The debt ratio is trending lower but remains elevated, and cost and progress-payment management risks on large overseas projects persist. Investors will want to monitor whether the audit opinion remains unqualified through the improvement period, the pace of new order wins, and the trajectory of cash flow recovery.
Report written 2026-09-05 · Data as of 2026-09-04
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