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
HizeAero returned to annual operating profit in 2025 after four years of losses and has posted rising quarterly profits into 2026, making the durability of gains from Boeing's 787/737 production ramp-up the key watch item.
2025 consolidated revenue of KRW 84.6bn and operating profit of KRW 4.6bn marked the first annual profit since 2021
Q2 2026 operating profit of KRW 2.29bn was the highest in the trailing five quarters, with net income rising for four straight quarters
The company maintains sole-source supply status to Boeing for the B787 wing fixed trailing edge and Section 11 fuselage structure
Boeing is raising 787 output from 7-8 to a 2026 target of 10 per month, though engine-related delays continue to create variability
The debt ratio eased from 183.1% in 2024 to 159.0% in 2025 but remains elevated
HizeAero was established in 2001 to assemble and sell aircraft and aircraft-related parts, and listed on KOSDAQ in 2015.
The company is a comprehensive aircraft parts manufacturer whose core products are parts for Boeing's B787, B737 and B767 programs, supplying under a Tier 1/Tier 2/Tier 3 structure depending on the program. Its main customers are Boeing, ACM and COMAC.
In particular, the company maintains sole-source supply status for key components such as the B787 wing fixed trailing edge (FTE) and part of the fuselage known as Section 11. Revenue is generated mainly through its parts division and assembly division.
Consolidated subsidiaries include Gaon I&T (textile/aerospace materials), HizeAero Composite Materials Co. (a composite parts specialist), and HIZE USA INC.
The company has pursued a strategy of internalizing processes from material machining through surface treatment to final assembly in order to secure cost competitiveness.
Building on these capabilities, it has also been pursuing diversification into space and satellite businesses, alongside efforts to reduce reliance on Boeing as a single customer.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩17.4B | ₩800M | 4.6% |
| 2025Q3 | ₩21.5B | ₩800M | 3.7% |
| 2025Q4 | ₩26.9B | ₩1.4B | 5.1% |
| 2026Q1 | ₩20.3B | ₩1.2B | 5.8% |
| 2026Q2 | ₩25.2B | ₩2.3B | 9.1% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩58.8B | -₩8.4B | -₩12.3B | −14.4% | −21.2% | 126.2% |
| 2023 | ₩80.8B | -₩4.5B | -₩7.6B | −5.6% | −15.7% | 140.0% |
| 2024 | ₩86.5B | -₩2.2B | -₩9.4B | −2.6% | −25.5% | 183.1% |
| 2025 | ₩84.6B | ₩4.6B | ₩2.1B | 5.4% | 5.0% | 159.0% |
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
2025 consolidated revenue was KRW 84.6bn, similar to KRW 86.5bn in 2024, but operating profit swung to KRW 4.6bn (operating margin 5.4%) from an operating loss of KRW 2.2bn (-2.6%) in 2024.
Net income attributable to owners also turned to positive KRW 2.1bn in 2025 from negative KRW 9.4bn in 2024, ending three consecutive years of net losses from 2022 through 2024.
Before this turnaround, revenue had grown to KRW 58.8bn in 2022 and KRW 80.8bn in 2023, yet operating losses of KRW 8.4bn and KRW 4.5bn respectively persisted despite that growth.
On a quarterly basis, operating profit moved from KRW 0.80bn in Q2 2025 to KRW 0.80bn in Q3, KRW 1.38bn in Q4, KRW 1.18bn in Q1 2026 and KRW 2.29bn in Q2 2026, showing an overall improving trend despite some fluctuation.
Net income attributable to owners rose for four consecutive quarters, from roughly KRW 6 million in Q2 2025 to KRW 0.44bn in Q3, KRW 0.68bn in Q4, KRW 1.10bn in Q1 2026 and KRW 1.68bn in Q2 2026.
However, according to data compiled by financial information provider WiseReport, in Q1 2026 consolidated revenue rose 7.7% year over year while operating profit fell 26.8%, a divergence attributed to cost pressures weighing on profitability.
Cash flow from operations improved from net outflows of KRW 7.7bn in 2022 and KRW 4.2bn in 2023 to inflows of KRW 1.8bn in 2024 and KRW 6.7bn in 2025, indicating cash generation improving alongside the earnings recovery.
The debt ratio rose from 126.2% in 2022 to 140.0% in 2023 and 183.1% in 2024 before easing to 159.0% in 2025, though the absolute level remains elevated.
HizeAero's earnings are directly linked to the pace of Boeing's 787 and 737 production normalization. Boeing has stated it plans to expand 787 output from about seven per month to a 2026 target of 10 per month through the North Charleston facility expansion.
However, aviation industry analysts have noted that while the 787 program showed strong momentum in the second half of 2025, actual production in the first quarter of 2026 slipped below the target rate of eight per month amid GEnx engine supply delays, before showing signs of recovering back toward the target rate as those delays eased.
The 737 MAX line has also targeted raising output to around 47 per month by late spring or early summer of 2026, and both programs underpin expanding order volumes for parts suppliers.
Boeing's 787 order backlog stood at roughly 993 aircraft, equivalent to several years of output even at a 14-per-month rate, suggesting a solid medium-to-long-term demand base.
That said, the pace of ramp-up can swing quarter to quarter depending on quality and logistics issues across the engine and airframe supply chain, exposing supplier revenue to that same volatility.
Domestically, similar Boeing/Airbus-facing parts suppliers such as Samco and AeroSpace Technology(AeroTec) compete in the space, and HizeAero seeks differentiation through its sole-source position on specific B787 components.
The company's near-term outlook depends heavily on how stably Boeing's 787 and 737 production rate increases proceed. As 787 output approaches the 10-per-month target, there is potential for increased parts order volume, though the timeline could also be delayed by engine and supply-chain issues.
Financial information provider WiseReport has noted expectations for qualitative and quantitative growth in R&D and manufacturing capability for HizeAero tied to global aircraft manufacturing industry growth and the establishment of the Korea AeroSpace Administration (KASA).
The company is also working to expand into space and satellite parts through synergy with its composite-materials subsidiary, a diversification path worth monitoring as a way to reduce reliance on Boeing as a single customer over the medium to long term.
Given that quarterly operating and net profit have continued to improve into 2026, whether this trend persists into the second half of the year, along with whether cost pressures ease further, will be key.
With the debt ratio still elevated, the pace at which earnings improvement translates into balance-sheet stabilization is also worth watching.
The company returned to annual profit in 2025 for the first time in four years and has continued to post rising quarterly profits into 2026, and the market appears to be pricing in this earnings recovery to some degree.
The shares trade at a level below net asset value, which can be interpreted as reflecting a discount tied to the multi-year loss history and still-elevated debt ratio. No dividend was paid based on the most recent fiscal year, making dividend-related metrics of limited use for comparison at present.
Because the shift from losses to profit is still relatively recent, how the market values the stock going forward may depend on the degree to which quarterly earnings continuity is confirmed.
Views on the appropriateness of any particular valuation multiple can vary by investor, and this report does not offer a conclusion on that point.
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
Boeing has set targets of raising 787 output to 10 per month and 737 MAX to about 47 per month by 2026. HizeAero holds sole-source status on components such as the B787 FTE and Section 11, giving it potential to benefit from rate increases. The roughly 993-aircraft 787 backlog points to a substantial medium-to-long-term demand base.
After three consecutive years of net losses from 2022 to 2024, the company posted operating profit of KRW 4.6bn and net profit of KRW 2.1bn in 2025. Net income attributable to owners rose for four consecutive quarters from Q2 2025 through Q2 2026, continuing the recovery trend. Cash flow from operations has also posted net inflows for two straight years since 2024.
The company is expanding into space and satellite parts businesses through synergy with its carbon-composite-materials subsidiary. Expectations have also been raised around R&D and manufacturing capability growth tied to the establishment of the Korea AeroSpace Administration (KASA). This can be viewed as a medium-to-long-term attempt to reduce reliance on Boeing as a single customer.
The debt ratio eased from 183.1% in 2024 to 159.0% in 2025 but remains above the 126.2% and 140.0% levels seen in 2022 and 2023. The accumulated losses of the prior three years still weigh on the balance sheet, and the pace of further improvement will depend on whether profitability is sustained.
According to WiseReport data, in Q1 2026 revenue rose 7.7% year over year while operating profit fell 26.8%. This illustrates that revenue growth does not automatically translate into profit growth, and the possibility of recurring cost or labor cost pressure cannot be ruled out.
Revenue is concentrated in Boeing's B787, B737 and B767 programs, so production disruptions or delivery delays in any specific aircraft program can directly affect results. Indeed, the 787 program fell short of its target production rate in the first quarter of 2026 due to engine supply delays.
Since most revenue is derived from Boeing-related programs, adjustments to Boeing's production rates, delivery delays, or quality issues can pass directly through to supplier revenue. The 787 program has a history of falling short of production targets due to engine delays, and this volatility could continue.
The debt ratio remained elevated at 159.0% as of end-2025, and the company has a history of issuing convertible bonds (CB) and exchangeable bonds (EB), which could affect the capital structure or share count depending on future conversion or repayment terms. If the earnings recovery does not persist, financial strain could increase again.
Prices of aerospace-grade materials such as titanium, labor costs, and KRW/USD exchange-rate movements directly affect costs. The Q1 2026 case in which operating profit declined despite revenue growth illustrates that such cost pressures can genuinely erode profitability.
The Q3 2026 quarterly report is expected around this time, and it will be important to check whether revenue growth continued and whether the cost pressure seen in Q1 2026 has eased.
This is a point to check via industry news whether Boeing's 787 production rate has approached its target of 10 per month and whether engine supply delay issues have been resolved.
If disclosures emerge regarding conversion requests or redemption of previously issued convertible/exchangeable bonds, it will be necessary to check for share dilution or changes in capital structure.
This is when the 2026 annual business report is expected to be filed, allowing confirmation of whether annual profitability was sustained for a second straight year and whether the debt ratio continued to improve.
HizeAero achieved a swing to operating and net profit in 2025 after three consecutive years of net losses from 2022 to 2024, and net income attributable to owners has risen for four consecutive quarters from Q2 2025 through Q2 2026, indicating a recovery trend.
This trend is tied to the production rate increases underway in Boeing's 787 and 737 programs, with the company's sole-source position on key B787 components underpinning that exposure.
That said, periods such as Q1 2026, where operating profit fell despite revenue growth due to cost pressures, can recur, and while the debt ratio has declined, it remains at an elevated level.
The 787 program itself has at times fallen short of its production targets due to engine supply delays, meaning supplier results are not immune to that volatility.
On the diversification front, expansion into composites and aerospace is underway, though its revenue contribution currently appears to be at an early stage.
Overall, the direction of the earnings recovery is evident, but its durability and the pace of balance-sheet improvement will need further confirmation through upcoming quarterly results and the progress of Boeing's production normalization.
Report written 2026-09-05 · Data as of 2026-09-04
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