KOSDAQIT & Software351330

ISAAC Engineering

₩3,470▲ 1.31%2026-10-02 close

Market Cap

₩28.4B

Turnover

₩52,122,130

Volume

20,000 shares

Shares out.

8.3M

PER

—

PBR

1.0×

EPS

-₩1,084

Dividend Yield

0.00%

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

Report overview

Revenue Growth, Widening Losses at Isaac Engineering

Isaac Engineering grew revenue year over year in 2025, but both its operating loss and net loss widened at the same time, deepening financial strain.

1
2025 revenue rose to roughly KRW 79 billion, up more than 15% year over year, yet the operating margin worsened to -9.1%.
2
Over the most recent four quarters (Q3 2025 to Q2 2026), the net loss attributable to owners repeated at roughly KRW 2.9-3.0 billion per quarter, a pattern largely disconnected from revenue swings.
3
The debt ratio jumped from 46.1% in 2022 to 124.1% in 2025, while total equity fell from about KRW 47.9 billion to KRW 34.6 billion over the same period.
4
The business is anchored on supply relationships with large industrial groups such as Samsung Engineering and SK Hynix, making results sensitive to their capex cycles.
5
Expanding AI-factory and robot-automation investment by Korea's leading chipmakers is a positive industry backdrop, though a specific link to new orders for Isaac Engineering is not confirmed in public disclosures.

Business structure

Isaac Engineering was founded on November 28, 2006 to supply factory automation solutions across manufacturing sectors including semiconductors, electronics, steel, heavy industry, power generation, pharma/bio, and secondary batteries, and it listed on KOSDAQ on March 21, 2021.

Its core businesses comprise production facility automation solutions, digital factory solutions covering PLM, digital manufacturing, visualization and 3D CAD, an IoT platform, ultra-high-voltage power equipment preventive diagnosis solutions, and sales of industrial automation equipment and programs.

Since converting to a corporation in early 2007, the company has provided operation technology (OT) services to major manufacturing industries such as semiconductors, steel, and power generation, and it has built its own big-data lab to develop a proprietary big-data analytics platform applied to its smart-factory solutions.

According to the company's quarterly report disclosed in early 2024, it held a frame agreement with Samsung Engineering under which it was the sole supplier for HVAC control on domestic and overseas plant projects for two years without bidding, at fixed unit prices, and it was described as holding a dominant position in SK Hynix's main utility control system segment.

As of that same disclosure, the company was registered as a supplier of industrial automation solutions to more than 70 large and mid-sized domestic companies, including Samsung Engineering, SK Hynix, Hyundai Steel, POSCO, and Dongkuk Steel.

Because its revenue base is tied to capex orders from a handful of large semiconductor and steel clients, results are highly sensitive to each customer's investment cycle.

Affiliates include Isaac E&I and Isaac PDS, while a formerly capital-impaired affiliate, Marathon Electric Korea, is understood to have gone through a liquidation process.

In the factory automation and smart-factory market, the company competes against large domestic system integrators and engineering firms, and it has pursued a strategy of extending price-competitive solutions to small and mid-sized manufacturers as well.

Earnings trend

Quarterly revenue · Operating profit

₩19B-₩1.5B25Q2₩20.2B₩300M25Q3₩24.3B-₩3.6B25Q4₩14.1B-₩2.5B26Q1₩18.4B-₩1.5B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩59.7B₩2.4B2022₩100.5B₩100M2023₩68.5B-₩4.5B2024₩79B-₩7.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩19B	-₩1.5B	−8.1%
2025Q3	₩20.2B	₩300M	1.3%
2025Q4	₩24.3B	-₩3.6B	−14.7%
2026Q1	₩14.1B	-₩2.5B	−17.9%
2026Q2	₩18.4B	-₩1.5B	−8.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩59.7B	₩2.4B	₩2.1B	4.0%	4.3%	46.1%
2023	₩100.5B	₩100M	-₩65,824,226	0.1%	−0.1%	56.7%
2024	₩68.5B	-₩4.5B	-₩7B	−6.6%	−17.1%	67.0%
2025	₩79B	-₩7.2B	-₩8.6B	−9.1%	−25.1%	124.1%

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

Earnings analysis

Annual revenue jumped from about KRW 59.7 billion in 2022 to KRW 100.5 billion in 2023, then fell to KRW 68.5 billion in 2024 before rebounding to KRW 79.0 billion in 2025, up more than 15% year over year.

Operating results, however, moved in the opposite direction: after a profit of KRW 2.36 billion in 2022 and a marginal profit of about KRW 0.13 billion in 2023, the company posted an operating loss of KRW 4.54 billion in 2024 and KRW 7.18 billion in 2025, with losses widening each year.

The operating margin similarly deteriorated from 4.0% in 2022 to 0.1% in 2023, then to -6.6% in 2024 and -9.1% in 2025, worsening regardless of the revenue recovery.

Net income attributable to owners followed the same pattern, swinging from a profit of KRW 2.07 billion in 2022 to a loss of roughly KRW 0.07 billion in 2023, then widening to losses of KRW 6.96 billion in 2024 and KRW 8.62 billion in 2025.

Operating cash flow was positive at KRW 1.84 billion in 2023 and KRW 8.17 billion in 2024, but turned negative again in 2025 at KRW -3.72 billion.

On a quarterly basis, Q3 2025 was the only one of the last five quarters with an operating profit, at KRW 0.27 billion on revenue of KRW 20.23 billion, yet even that quarter posted a net loss to owners of about KRW 85 million, so the operating profit did not translate into a bottom-line profit.

From Q4 2025 (revenue KRW 24.26 billion, operating loss KRW 3.58 billion, net loss to owners KRW 2.95 billion) through Q1 2026 (revenue KRW 14.09 billion, operating loss KRW 2.52 billion, net loss KRW 2.92 billion) and Q2 2026 (revenue KRW 18.45 billion, operating loss KRW 1.47 billion, net loss KRW 3.03 billion), the net loss to owners stayed within a narrow band of roughly KRW 2.9-3.0 billion each quarter, largely independent of revenue swings, pointing to a structural loss pattern.

Over this period, total equity declined from about KRW 47.9 billion in 2022 to KRW 34.6 billion in 2025 while total liabilities rose from KRW 22.1 billion to KRW 43.0 billion, pushing the debt ratio from 46.1% to 124.1%, which suggests accumulated losses have eroded capital even as reliance on external funding increased.

Industry analysis

Samsung Electronics has been deploying AI autonomous robots in core semiconductor processes as of April 2026 to optimize yield and automate logistics as part of its 2-nanometer process push, and SK Hynix has also fully deployed AI vision robots on its HBM4 production lines to lower defect rates and accelerate internalization of intelligent manufacturing systems.

As of 2026, Korea has the world's highest robot density at 1,220 units per 10,000 workers, roughly seven times the global average of 177. The global robot installation market reached a record $16.7 billion (about KRW 24 trillion) in 2026.

Earlier, in October 2025, Nvidia supplied 50,000 of its latest GPUs each to Samsung Electronics and the SK group to build AI-based 'AI factories' for their semiconductor production lines, as part of a wide-ranging collaboration.

This trend could be read as a favorable backdrop for industrial automation and OT service providers whose main clients are large manufacturers, but publicly available sources do not confirm what specific role or order volume Isaac Engineering has secured within these new investment projects.

The factory automation and smart-factory market involves competition from large system integrators as well as numerous small and mid-sized engineering firms, meaning companies with high dependence on a small number of customers can see wider swings in results tied to the timing and scale of those customers' orders.

Outlook

No source was found in which the company has publicly presented specific numeric guidance for the second half of 2026 or beyond.

However, whether the frame agreement with Samsung Engineering (a two-year, fixed-unit-price exclusive contract) and its position within SK Hynix's main utility control system, both confirmed as of an early-2024 disclosure, remain intact going forward could offer a clue to future revenue stability.

The ongoing expansion of AI-factory and robot-automation investment in downstream industries such as semiconductors and secondary batteries carries potential to translate into demand for automation solutions if the company's core customers increase related capital spending, though this has not yet been confirmed through specific new order results.

The widening operating losses and rising debt ratio through 2025 could constrain new investment or hiring, meaning a recovery in profitability needs to be confirmed first from an earnings perspective.

The repetition of net losses to owners of similar magnitude each quarter over the last four quarters (Q3 2025 through Q2 2026) suggests a structural cost burden may have taken hold regardless of revenue fluctuations, a point that will need to be checked for improvement in upcoming quarterly results.

The progress of the liquidation process at affiliate Marathon Electric Korea and the earnings contribution of remaining affiliates such as Isaac E&I and Isaac PDS also remain variables that could continue to affect the consolidated financial statements.

Valuation

PER

—

PBR

1.0×

ROE

-28.3%

EPS

-₩1,084

BPS

₩3,438

Dividend per share

₩0

Isaac Engineering has posted operating losses for three consecutive fiscal years, putting it in a zone where traditional earnings-based valuation metrics are difficult to apply meaningfully.

Looking at the relationship between the share price and net assets, the price level relative to the company's equity base sits close to book value, without a clearly large premium or discount.

On the dividend side, the company has not paid a cash dividend through its most recent fiscal year, so there is no track record of shareholder returns through dividends to reference.

Gauging the current position against the valuation band established since listing would require first observing a turn to profitability, and until then market expectations about net-asset value and growth potential are likely to have a greater influence on price formation.

The decline in total equity and the rise in the debt ratio in recent years are factors that could exert downward pressure on net-asset value itself, so changes in the capital structure warrant continued attention alongside any valuation comparison.

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

Bull factors

Entry barriers built on large-client relationships

As of an early-2024 disclosure, the company held a two-year, fixed-price exclusive frame agreement with Samsung Engineering and was described as holding a dominant position in SK Hynix's main utility control system segment.

It is registered as a supplier of industrial automation solutions to more than 70 large and mid-sized domestic companies, giving it a relatively broad client base. If these relationships persist, they could function as a structural advantage that is difficult for new entrants to replicate.

Industry tailwind from expanding semiconductor robot-automation investment

Samsung Electronics and SK Hynix continue to deploy AI robots in core semiconductor processes and HBM4 production lines, and their AI-factory collaboration with Nvidia is expanding.

Korea holds the world's highest robot density per worker, indicating a solid underlying demand base for manufacturing automation investment. The fact that Isaac Engineering's core clients sit at the center of this trend can be viewed as a potential business opportunity.

The revenue base itself has been recovering

In contrast to the sharp revenue decline in 2024, 2025 revenue rose more than 15% year over year to about KRW 79.0 billion. Recent quarterly revenue has ranged between roughly KRW 14.1 billion and KRW 24.3 billion, showing that underlying demand for the business has continued. If profitability improvements follow, this revenue recovery could form a basis for an earnings turnaround.

Bear factors

Structural deterioration in the profit and loss structure

The operating margin deteriorated for three straight years, from 4.0% in 2022 to -9.1% in 2025, and the net loss to owners widened from KRW 6.96 billion in 2024 to KRW 8.62 billion in 2025.

Over the last four quarters, the net loss to owners repeated at roughly KRW 2.9-3.0 billion each quarter, a pattern that barely shifted whether revenue rose or fell. Revenue recovery alone has not resolved the profitability problem.

Financial structure changes narrowing the capital buffer

Total equity fell from about KRW 47.9 billion in 2022 to KRW 34.6 billion in 2025, while the debt ratio jumped from 46.1% to 124.1% over the same span. Operating cash flow also swung from a net inflow of KRW 8.17 billion in 2024 to a net outflow of KRW 3.72 billion in 2025, indicating weaker internal cash generation. As losses accumulate, reliance on external funding could increase further.

Earnings volatility tied to customer concentration

Quarterly revenue over the last four quarters swung sharply, from KRW 14.1 billion to KRW 24.3 billion, reflecting a structure in which results are driven by the order timing of a small number of large clients.

If capex plans at core clients such as Samsung Engineering or SK Hynix are delayed or reduced, this could directly affect results. Unless clear progress on customer diversification is confirmed, this volatility could persist.

Risk factors

Financial soundness risk

The debt ratio surged from 46.1% in 2022 to 124.1% in 2025, while total equity declined from KRW 47.9 billion to KRW 34.6 billion over the same period. Operating cash flow also turned negative again in 2025, which could raise concerns about internal cash-generating capacity. If this trend continues, the need for additional capital raising or borrowing could arise.

Order and revenue concentration risk

The company's revenue is heavily dependent on supply relationships with a small number of large industrial groups such as Samsung Engineering and SK Hynix. If the frame agreement or supply status with these clients changes upon renewal, or if order volumes shrink, this could directly affect results. The large swings in recent quarterly revenue can also be read as a reflection of this concentration.

Affiliate and consolidated-entity risk

One of the company's affiliates, Marathon Electric Korea, is understood to have previously fallen into capital impairment and to have gone through a liquidation process.

Because multiple affiliates are included in the consolidated financial statements, weak performance or restructuring at an individual affiliate could affect consolidated profit and capital. Affiliate-related disclosures will need to continue to be monitored going forward.

What to watch next

Mid-November 2026 (around the statutory filing deadline for the Q3 quarterly report)
Once Q3 2026 results are disclosed, it will be worth checking whether the net loss to owners continues to repeat at the roughly KRW 2.9-3.0 billion level seen over the prior four quarters.
During Q4 2026
Watch for disclosures or reports on new capex or contract renewals from core clients such as Samsung Engineering and SK Hynix to gauge whether the industry tailwind translates into actual new orders.
Late March 2027 (expected disclosure of the FY2026 annual report)
When the confirmed FY2026 annual results are released, check both whether the operating loss narrows and whether the debt ratio and total equity trend begins to reverse.
Upon future periodic and ad-hoc disclosures
It will be necessary to continue tracking whether the liquidation of affiliate Marathon Electric Korea is completed and how the earnings contribution of remaining affiliates affects the consolidated financial statements.

Overall view

Isaac Engineering's 2025 revenue rose more than 15% year over year, showing recovery in business scale, but its profit and loss structure deteriorated for a third consecutive year, with the operating margin falling to -9.1% and the net loss to owners widening to KRW 8.62 billion.

Over the last four quarters, the net loss to owners repeated at roughly KRW 2.9-3.0 billion each quarter, suggesting a structural cost burden that is largely disconnected from revenue fluctuations.

Over the same period, the financial structure also weakened, with the debt ratio jumping from 46.1% to 124.1% and total equity declining.

The supply relationships with Samsung Engineering and SK Hynix, along with expanding AI-factory and robot-automation investment in the semiconductor industry, can be cited as potential business opportunities, but public sources do not yet confirm whether these have translated into concrete new orders or improved profitability.

Ultimately, assessing this stock requires weighing the positive factors of revenue recovery and industry tailwinds against the negative factors of widening losses and a weakening financial structure, while watching how upcoming quarterly results and financial metrics evolve.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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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.