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
Kencoa Aerospace posted two consecutive quarters of operating and net profit in Q1-Q2 2026, but four straight years of annual losses through 2025 and its dependence on US aircraft customers remain key points to watch.
Both Q1 2026 (revenue KRW 29.2bn, operating profit KRW 0.22bn) and Q2 2026 (revenue KRW 28.5bn, operating profit KRW 1.18bn) turned profitable, with net income attributable also positive for two straight quarters.
Full-year 2025 revenue fell to KRW 76.4bn from KRW 86.2bn in 2024, with an operating loss of KRW 9.2bn and net loss attributable of KRW 15.5bn, marking a fourth straight year of annual losses.
The debt ratio fell to 45.2% in 2025 from around the 200% range in 2022-2023, while equity attributable to owners expanded from KRW 38.1bn in 2022 to KRW 160.3bn in 2025.
The company counts Boeing, Airbus, Lockheed Martin, Pratt & Whitney, NASA, and SpaceX among its customers, with dual manufacturing bases in Sacheon, Korea, and Georgia/California in the United States.
Only two brokerages, Korea Investment & Securities and Eugene Investment & Securities, cover the stock, and both have reportedly withheld a target price (not-rated) recently, leaving thin market consensus.
Kencoa Aerospace, listed on KOSDAQ in 2020, is an aerospace and defense parts specialist whose business spans commercial and defense aircraft structure manufacturing, MRO services including passenger-to-freighter (P2F) conversion and depot-level military aircraft overhaul, space launch vehicle components, and supply of specialty aerospace raw materials.
The Kencoa Group counts Boeing, Lockheed Martin, Gulfstream, Spirit Aerosystems, Pratt & Whitney, General Dynamics, PPG, NASA, SpaceX, and Blue Origin among its customers.
In Korea, the company supplies aircraft structures and parts to domestic and overseas Tier-1 firms from its Sacheon plant, where the Kencoa Group, with more than 20 years of precision machining and sheet-metal expertise recognized by customers, supplies aircraft structures and assembly as a Tier-1 supplier.
In the United States, it leverages the capability built by a US subsidiary acquired in 2017 (Kencoa Aerospace LLC) to supply aircraft fuselage and engine parts locally, and holds a dedicated aerospace raw-material supplier in its US subsidiary, California Metal.
On the equipment side, it maintains equipment specialized in machining hard-to-cut materials such as steel and titanium, including machines capable of processing parts up to a 20-meter long bed, and participates in Airbus passenger-to-freighter conversion programs (A330/A320/A321).
In the past, the company completed the initial delivery of a small attack helicopter fuselage for Boeing in the United States, and has mass-produced the rear fuselage and flight control components of the domestic Suryeon (KUH) helicopter for more than five years, demonstrating rotary-wing structure production capability.
On the quality side, the company holds AS9100 and Airbus/Boeing technical and quality certifications and has obtained P2F-related patents to strengthen its MRO business competitiveness. The company has stated its intention that its future core industry will expand its business scope to Advanced Air Mobility (AAM).
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩21.6B | -₩1.8B | −8.3% |
| 2025Q3 | ₩17.8B | -₩4.3B | −24.2% |
| 2025Q4 | ₩20.2B | -₩3.2B | −16.0% |
| 2026Q1 | ₩29.2B | ₩200M | 0.7% |
| 2026Q2 | ₩28.5B | ₩1.2B | 4.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩75.9B | ₩8B | ₩3.2B | 10.5% | 8.5% | 240.1% |
| 2023 | ₩91.1B | ₩900M | -₩1.8B | 1.0% | −3.2% | 156.6% |
| 2024 | ₩86.2B | -₩5.4B | -₩7.7B | −6.2% | −4.2% | 38.0% |
| 2025 | ₩76.4B | -₩9.2B | -₩15.5B | −12.1% | −9.7% | 45.2% |
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
Consolidated revenue for 2025 fell to KRW 76.4bn from KRW 86.2bn in 2024, while the operating loss widened to KRW 9.2bn from KRW 5.4bn in 2024, and the net loss attributable to owners grew to KRW 15.5bn, marking a fourth consecutive year of annual losses.
FnGuide attributed the deterioration to the fact that revenue declined due to slowing global demand and production adjustments by major customers in the US commercial and defense aircraft segment, while the aerospace raw-material segment also saw revenue decline amid changing market demand.
The operating margin plunged from 10.5% in 2022 to 1.0% in 2023, then deteriorated further to -6.2% in 2024 and -12.1% in 2025, marking three straight years of margin erosion.
On a quarterly basis, losses persisted through Q3 2025 (revenue KRW 17.8bn, operating loss KRW 4.3bn) and Q4 2025 (revenue KRW 20.2bn, operating loss KRW 3.2bn, net loss attributable KRW 9.7bn), before revenue surged to KRW 29.2bn in Q1 2026, turning to an operating profit of KRW 0.22bn and net income attributable of KRW 0.94bn, with the profitable trend continuing into Q2 2026 (revenue KRW 28.5bn, operating profit KRW 1.18bn, net income attributable KRW 0.33bn).
Thinkpool noted that Q1 2026 revenue marked the highest quarterly result in the past three years, up 21% from the previous record set in Q3 2023.
Over the trailing four quarters (Q3 2025-Q2 2026), the net loss attributable to owners totaled KRW 11.3bn, still in negative territory, making it a key question whether two profitable quarters will translate into an annual turnaround.
In Q4 2025, the net loss (KRW 9.7bn) was notably larger than the operating loss (KRW 3.2bn), suggesting non-operating items may have had a substantial impact, though further confirmation of the details would be needed.
The global aircraft parts industry is a highly cyclical sector driven by the pace of production-rate normalization at Boeing and Airbus and the recovery of air travel demand.
According to FnGuide, 2025 saw slowing global demand and production adjustments by major customers in the US commercial and defense aircraft segment, a factor interpreted as having affected the domestic aircraft-parts value chain broadly.
By contrast, demand for civil and defense aircraft structure production and parts machining picked up again in 2026, with Wiseport explaining that performance improved significantly on the back of increased structure production and parts machining demand for civil and defense aircraft, expanded aerospace raw-material supply, and growth in the US defense and launch vehicle parts business, with expanded deliveries to major customers and growth in MRO businesses such as PTF conversion and military aircraft depot overhaul contributing to revenue growth.
In the space segment, increasing launch cadence from private launch companies such as SpaceX and Blue Origin translates into demand for raw materials and parts, and Kencoa is positioned to directly supply titanium and nickel superalloys locally through its US subsidiary.
Domestically, the company is classified as an aircraft-parts producer alongside larger defense and aerospace firms, but its revenue scale is far smaller, placing it among KOSDAQ small- and mid-cap names.
The passenger-to-freighter conversion market is cited as a medium-to-long-term growth driver for the MRO segment, linked to e-commerce-driven cargo demand and the recycling of aging passenger aircraft.
However, the aerospace parts industry has strict certification and quality standards and significant revenue volatility tied to changes in customer production plans, making revenue concentration among a small number of large customers a key variable in performance.
Taken together, company disclosures and market data suggest that the earnings improvement in the first half of 2026 reflects a combination of expanded deliveries in the aircraft parts business, increased aerospace raw-material supply, and growth in the US defense and launch vehicle parts business.
Wiseport noted that expanded deliveries to major customers and growth in MRO businesses such as PTF conversion and military aircraft depot overhaul contributed to revenue growth.
The growing revenue contribution from P2F conversion programs and military depot MRO is notable from the standpoint of building a recurring revenue base.
However, no specific 2026 annual guidance or major new order disclosures were confirmed, so whether the two consecutive profitable quarters will continue into Q3 and Q4 needs to be verified through upcoming earnings disclosures.
Analyst coverage also remains thin: only two brokerages, Korea Investment & Securities and Eugene Investment & Securities, cover Kencoa, and both are reportedly not-rated without a target price, indicating that market consensus has yet to thicken.
The company's local US production and supply setup may be cited as a factor reducing exposure to trade-policy shifts, but the structural link between its performance and US customers' production plans remains unchanged.
Although Kencoa Aerospace turned profitable for two consecutive quarters in the first half of 2026, on a trailing four-quarter basis (Q3 2025-Q2 2026) it remains in net loss territory, so earnings stability has not yet been fully confirmed.
The share price trades at a discount to book value (total equity), placing it among names without a large premium to net assets. The company currently pays no dividend, so the appeal from a shareholder-return standpoint remains a task for after earnings stabilize.
The stock has a history of a widely expanded trading band amid space-and-aerospace theme rallies, and a gap between the pace of earnings improvement and share price movement has been observed at times.
It is also worth considering that with only a small number of covering brokerages and no target price currently offered, the market consensus that could serve as a valuation benchmark is not yet substantial.
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 Q1 and Q2 2026 turned to operating and net profit, with Q1 revenue marking the highest level in three years and signaling a resumption of growth. The profitable trend continued into Q2 with revenue of KRW 28.5bn and operating profit of KRW 1.18bn.
This contrasts with the loss-making pattern throughout 2025 and could serve as a reference point for future quarterly checks.
The company has secured top-tier global aerospace customers including Boeing, Airbus, Lockheed Martin, Pratt & Whitney, NASA, and SpaceX.
By distributing manufacturing and supply bases between Sacheon, Korea, and Georgia/California in the US, it has built a structure that reduces supply-chain risk and can respond to local sourcing requirements.
MRO businesses such as P2F freighter conversion and military depot overhaul, along with space launch vehicle parts and raw-material supply, are contributing to revenue growth.
Business diversification away from sole reliance on commercial aircraft is underway, and MRO carries the characteristic of generating recurring revenue.
After a profitable 2022, the company recorded net losses attributable to owners for three straight years from 2023 to 2025, with the 2025 loss (KRW 15.5bn) actually widening from 2024 (KRW 7.7bn). Despite two consecutive profitable quarters, the trailing four-quarter total remains a net loss.
According to FnGuide, the 2025 earnings deterioration stemmed from US customer production adjustments and slowing demand. Given the structure's high reliance on a small number of large customers, changes in specific customers' production plans could directly affect future performance.
Only two brokerages reportedly cover the stock, and both are said to have withheld a target price. With consensus formation limited, information asymmetry among market participants may exist.
High revenue dependence on a small number of large OEMs such as Boeing and Airbus means that changes to their production plans or model adjustments directly affect performance. The 2025 earnings deterioration was also attributed in part to production adjustments by major customers.
With a portion of production and sales conducted locally in the United States, the company is exposed to KRW/USD exchange rate fluctuations, and price swings in specialty metals such as titanium and nickel could also affect its cost structure.
Three of the past four years produced net losses, and quarterly earnings show significant swings, making profit predictability relatively low. While the debt ratio fell to 45.2% in 2025, its history of spiking to around the 200% range in 2022-2023 means capital structure management remains an ongoing task.
Q3 2026 earnings disclosure - check whether the two-quarter profitable trend extends into Q3 and whether revenue growth continues.
Filing of the 2026 annual business report (confirmed full-year results) - check whether the company breaks its four-year streak of annual losses and turns profitable for the full year.
Check for any disclosures of new contracts or supply volumes for SpaceX, NASA, or Boeing from the US subsidiaries (California Metal, Kencoa USA).
Production-rate guidance from the two major OEMs - a useful gauge of the direction of civil aircraft parts demand.
Kencoa Aerospace turned to operating and net profit attributable to owners in both Q1 and Q2 2026, signaling an attempt to break out of the loss-making phase that persisted from 2023 through 2025.
However, on a trailing four-quarter basis (Q3 2025-Q2 2026) it remains in net loss territory, and full-year 2025 results showed declining revenue and a widened operating loss, marking a fourth consecutive year of annual losses, so whether the two-quarter improvement will translate into a full-year turnaround remains unconfirmed.
On the business side, the company's structural strengths include securing multiple top-tier global customers such as Boeing, Airbus, Lockheed Martin, NASA, and SpaceX, and distributing production and supply bases between Korea and the United States.
On the other hand, weaknesses remain in the form of a structure heavily dependent on the production plans of a small number of large customers, and thin market information given that only two brokerages cover the stock with neither offering a target price.
The debt ratio fell from around the 200% range in 2022-2023 to 45.2% in 2025, but given its history, continued monitoring of capital structure management capability is warranted.
Upcoming quarterly results, the full-year 2026 settlement, and any disclosures of new contracts with US space and defense customers are likely to be the key indicators for assessing whether this turnaround attempt continues.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.