PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩60 per share · Prices as of the 2026-10-02 close
Daemo, a hydraulic-breaker-focused excavator attachment maker, has continued an earnings recovery trend with quarterly fluctuations since returning to annual profit in 2025.
Consolidated operating profit reached KRW 1.91 billion in 2025, sharply up from KRW 0.12 billion a year earlier, marking recovery from the 2023 operating loss
After operating losses in the third and fourth quarters of 2025, the company posted consecutive operating profits in the first and second quarters of 2026
An export-driven business with roughly 70% of shipment revenue from overseas, maintaining long-term partnerships with Hyundai Construction Equipment and Canada's BTI Inc.
The company has expanded its stake in its Indian subsidiary to 99.99% as part of efforts to build an export base in emerging markets
Structural challenges persist, including a prolonged domestic construction slump and intensifying competition from Chinese equipment
Founded in 1989 and listed on KOSDAQ in 2019, Daemo is a specialized manufacturer of excavator attachments based at the Sihwa industrial complex in Gyeonggi Province.
Its core products—hydraulic breakers, quick couplers, and crushers—are sold worldwide, with roughly 70% of shipment revenue generated through overseas exports. Hydraulic breakers, mounted at the end of an excavator arm to crush rock or concrete, account for the largest share of the company's sales.
Daemo offers a total of 20 breaker models ranging from a 0.6-ton mini class to a 100-ton heavy class, with the 20-ton class contributing the largest share of sales while demand for smaller units has been rising.
Its largest domestic customer, Hyundai Construction Equipment, has sourced Daemo's products under an ODM arrangement since 2013 and resells them under its own HDB brand, bundling excavators with breakers as a sales strategy.
In North America, Latin America, and Africa, Daemo supplies products under the BX and BXR brands through a technology partnership with Canada's BTI Inc., forming a key pillar of its overseas distribution network.
Low-cost domestic manufacturers, the recent rise of Chinese equipment makers, and expanding OEM package sales by excavator manufacturers are cited as factors intensifying competition.
The company aims to become a comprehensive special-purpose construction equipment maker by 2030, expanding its product lineup with excavator tuning equipment and smart readers.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩13.3B | ₩2B | 15.4% |
| 2025Q3 | ₩8.8B | -₩100M | −1.3% |
| 2025Q4 | ₩9.7B | -₩500M | −5.0% |
| 2026Q1 | ₩11.7B | ₩1B | 8.7% |
| 2026Q2 | ₩11.6B | ₩1B | 8.4% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩54.8B | ₩2.1B | ₩1.3B | 3.9% | 2.7% | 46.4% |
| 2023 | ₩44.4B | -₩400M | -₩200M | −0.9% | −0.5% | 36.2% |
| 2024 | ₩41.3B | ₩100M | ₩100M | 0.3% | 0.3% | 32.4% |
| 2025 | ₩40.7B | ₩1.9B | ₩1.9B | 4.7% | 3.9% | 34.7% |
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 40.73 billion, slightly down from KRW 41.32 billion a year earlier, while operating profit expanded sharply to KRW 1.91 billion from KRW 0.12 billion, lifting the operating margin from 0.3% to 4.7%.
Net profit attributable to owners also rose from KRW 0.13 billion to KRW 1.89 billion, showing a clear earnings recovery.
Per the company's own disclosure, this improvement reflects a decline in revenue caused by a global construction machinery slowdown linked to the Russia-Ukraine war and inflation, offset by higher net profit driven by currency gains and cost reductions.
In 2023, the company posted revenue of KRW 44.41 billion alongside an operating loss of KRW 0.38 billion and a net loss of KRW 0.24 billion, while 2022 saw comparatively stronger results with revenue of KRW 54.80 billion and operating profit of KRW 2.13 billion, underscoring wide earnings swings over the past three years.
On a quarterly basis, the second quarter of 2025 delivered strong results with revenue of KRW 13.31 billion and operating profit of KRW 2.05 billion (an operating margin of roughly 15%), but the third quarter saw revenue fall to KRW 8.80 billion with an operating loss of KRW 0.12 billion, followed by a fourth quarter with revenue of KRW 9.68 billion, an operating loss of KRW 0.49 billion, and a net loss of KRW 0.09 billion.
Performance then recovered in the first quarter of 2026 with revenue of KRW 11.74 billion, operating profit of KRW 1.02 billion, and net profit of KRW 1.12 billion, representing year-over-year increases of 31% in revenue and 116% in operating profit according to the company's own disclosure.
The second quarter of 2026 sustained this with revenue of KRW 11.59 billion, operating profit of KRW 0.97 billion, and net profit of KRW 1.05 billion, marking two consecutive quarters of stable profitability.
Total equity held broadly steady, moving from KRW 47.56 billion in 2022 to KRW 48.13 billion in 2025, while the debt ratio declined from 46.4% to 34.7%, indicating improved financial stability.
The global excavator market is estimated at roughly USD 90.75 billion in 2026 and is projected to grow at a compound annual rate of 6.16% through 2034, with the Asia-Pacific region holding a dominant 55.54% share as of 2025.
The excavator attachments market itself is projected to expand from about USD 6.29 billion in 2026 to USD 10.44 billion by 2035, reflecting a niche but steadily growing segment.
However, while a delayed recovery in Korea's domestic construction market continues to weigh on the domestic revenue base, overseas markets are showing mixed signs of recovery by region.
As of the second quarter of 2026, HD Hyundai Construction Equipment's North American sales reportedly rose about 7% year over year, and Doosan Bobcat's North American sales rebounded roughly 3%, which may signal an inflection point in North American construction machinery demand that had been sluggish until recently.
Daemo occupies a dual position as both a component supplier to excavator manufacturers and a seller of its own brand, meaning its performance tends to track excavator sales volumes and construction equipment utilization rates in end markets.
Competitively, the company faces a market where global OEMs such as Caterpillar and Komatsu are expanding their own attachment offerings while low-cost Chinese manufacturers continue to encroach on market share.
Daemo has expanded its stake in its Indian subsidiary, Daemo Engineering India, to 99.99% to boost market share in India and build an export base, a move interpreted as an effort to diversify revenue through emerging markets.
The company is also strengthening production infrastructure through the construction of a smart factory within the Sihwa MTV industrial complex and the relocation of its headquarters and plant, with the completion and ramp-up timing of this project potentially becoming a variable for future cost structure improvement.
On the product side, Daemo continues to expand its lineup with new offerings such as excavator tuning equipment and smart readers as it targets becoming a comprehensive special-purpose construction equipment maker by 2030.
Having posted operating profit for two consecutive quarters in the first and second quarters of 2026, whether this recovery trend continues into the second half is a key point to watch.
Given the export-heavy nature of its business, trends in the won-dollar exchange rate and the pace of construction market recovery in key export destinations are likely to have a direct impact on performance.
Amid the ongoing domestic construction slowdown, the company is also pursuing competitiveness improvements through supplier plant innovation programs and technology exchanges with global companies.
Daemo's share price sits at a level broadly comparable to the owners' net asset value per share, suggesting neither a pronounced premium nor discount to book value at present.
During the 2023 net loss period, earnings-based valuation was effectively meaningless, but the return to profit in 2025 and continued earnings recovery in the first half of 2026 have restored conditions under which an earnings-based valuation can be applied.
That said, given the volatility evident in the operating losses of the third and fourth quarters of 2025, caution is warranted against judging valuation based on any single quarter's earnings.
On dividends, the company has continued to pay cash dividends recently, though the absolute yield level remains low, and whether earnings recovery translates into dividend expansion remains to be seen.
It is also worth noting that many names within the construction machinery sector tend to trade at relatively low valuation multiples.
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
Operating profit jumped to KRW 1.91 billion in 2025 from KRW 0.12 billion a year earlier, moving past the 2023 loss. The company posted operating profits of KRW 1.02 billion and KRW 0.97 billion in the first and second quarters of 2026 respectively, extending the streak to two consecutive profitable quarters. The company has disclosed that cost reductions and currency effects contributed to the improved net profit.
About 70% of revenue comes from overseas exports, with breakers supplied to Hyundai Construction Equipment under an ODM arrangement and access to North American and African markets through a partnership with Canada's BTI Inc. These long-standing customer relationships serve as a stable revenue foundation.
Daemo has raised its stake in its Indian subsidiary to 99.99% to expand market share in India and build an export base.
It is also continuing to broaden its product lineup with new offerings such as excavator tuning equipment and smart readers as part of a goal to become a comprehensive special-purpose construction equipment maker by 2030.
Revenue in 2025 stood at KRW 40.73 billion, well below the KRW 54.80 billion recorded in 2022. The ongoing domestic construction slowdown continues to make it difficult to expand the revenue base.
After a strong second quarter in 2025, the company posted operating losses of KRW 0.12 billion and KRW 0.49 billion in the third and fourth quarters, respectively. This quarter-to-quarter volatility makes performance forecasting difficult.
Low-cost Chinese attachment makers are eroding market share at the same time that global excavator manufacturers such as Caterpillar and Komatsu expand their own branded attachment offerings. Competition from small domestic low-cost manufacturers also remains a persistent burden.
With roughly 70% of revenue coming from overseas exports, movements in the won-dollar and other exchange rates have a direct impact on margins. The company disclosed that a stronger dollar contributed to improved net profit in 2025, but exchange rate moves in the opposite direction could weigh on results.
The company disclosed that cost reduction efforts contributed to improved net profit in 2025; if raw material or logistics costs rise again, these cost improvements could reverse.
The company itself has cited geopolitical and economic factors such as the Russia-Ukraine war and inflation as causes of the global construction machinery market slowdown. Changes in trade and tariff policy in key export destinations are also a variable that could affect export volumes and profitability.
The third-quarter 2026 earnings disclosure should be checked to see whether the seasonal weakness seen in the third and fourth quarters of 2025 recurs, or whether the earnings recovery seen in the first half continues.
Progress on the ramp-up of the Indian subsidiary, Daemo Engineering India, and its export base, along with whether India-related sales begin to show up in results, warrants monitoring.
The completion and start-up timing of the smart factory and headquarters/plant relocation project within the Sihwa MTV industrial complex, and any resulting changes to the cost structure, should be reviewed.
The annual business report and audit report for fiscal year 2026 should be checked to confirm finalized full-year results and any changes in segment revenue composition.
Given the export-heavy business structure, the impact of exchange rate trends on quarterly margins warrants ongoing monitoring.
Daemo is a specialized excavator attachment maker centered on hydraulic breakers, operating with a high export ratio and relationships with established customers such as Hyundai Construction Equipment and BTI Inc.
After a loss in 2023, the company returned to profit with operating income of KRW 1.91 billion in 2025 and sustained profitability through the first and second quarters of 2026, though quarterly volatility remains significant, as shown by the operating losses in the third and fourth quarters of 2025.
Amid an ongoing domestic construction slowdown, the company is pursuing emerging-market and production-base investments—including an expanded stake in its Indian subsidiary and construction of a smart factory—that are worth watching from a medium- to long-term growth perspective.
However, the rise of low-cost Chinese manufacturers and the expansion of OEM package sales by excavator makers remain competitive headwinds.
The financial structure appears stable, with a declining debt ratio, and the key points to watch going forward are whether seasonal volatility recurs in the second half and how exchange rates and overseas demand trends evolve. This report is for informational purposes only and does not constitute a buy or sell recommendation.
Report written 2026-09-05 · Data as of 2026-09-04
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