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
Wonjoon, a leading maker of heat-treatment furnaces for battery materials, is expanding into new products even as its most recent quarters show a sharp revenue contraction and widening losses.
Forms a two-player leadership structure with Hanwha's machinery unit in Korea's cathode-material furnace market, with a long transaction history with the POSCO group
2025 consolidated revenue was KRW 149.1 billion with an operating profit of KRW 7.0 billion, but the company swung to an owners' net loss of KRW 13.1 billion
Revenue over the most recent four quarters (2025Q3 through 2026Q2) has contracted sharply, with operating and net losses widening
Expanding into furnaces for silicon anode materials and solid-state batteries, with overseas references including QuantumScape
2025 operating cash flow improved sharply to KRW 32.6 billion and the debt ratio declined, but the recent widening of quarterly losses is a burden on the balance sheet
Wonjoon is an EPC turnkey engineering company that designs, manufactures, and commissions heat-treatment (calcination) furnaces required for producing cathode and anode materials, the core materials of lithium-ion batteries.
Independent research firm Stunning Value Research assessed that Wonjoon holds EPC turnkey capability, handling the design, manufacturing, and commissioning of battery-material calcination furnaces in a single process.
Its main products are the roller-conveyor continuous RHK furnace and the high-volume batch-type PK furnace, supplying heat-treatment equipment for both cathode and anode materials.
Korea's furnace market is estimated at around KRW 300 billion, and within this market Wonjoon is the market leader with an estimated share of about 50%.
Domestically, Hanwha's machinery division is cited as Wonjoon's main competitor, with Ecopro BM reportedly relying mainly on Hanwha's machinery unit while POSCO Chemical (now POSCO Future M) has mainly used furnaces made by Wonjoon.
Its main customers are secondary battery material producers used in electric-vehicle batteries, including POSCO Chemical, LG Chem, and Ecopro BM, though a heavy reliance on a small number of clients such as POSCO Chemical is cited as a drawback.
New businesses include PK furnaces for silicon anode and artificial graphite anode materials, which are being supplied to Daejoo Electronic Materials and, more recently, SK Materials Group Foteon.
Overseas, the company operates subsidiaries in Germany, China, the United States, Poland, and Canada, and in 2021 it supplied heat-treatment equipment to QuantumScape, a leading US solid-state battery developer.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩23.9B | ₩3.5B | 14.6% |
| 2025Q3 | ₩13B | -₩1.2B | −9.1% |
| 2025Q4 | ₩15B | ₩2.1B | 13.7% |
| 2026Q1 | ₩600M | -₩4.5B | −736.1% |
| 2026Q2 | ₩3.5B | -₩14.2B | −410.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩143.2B | ₩10.9B | ₩15.2B | 7.6% | 13.6% | 41.2% |
| 2023 | ₩137.3B | ₩4.6B | ₩5.6B | 3.4% | 4.7% | 68.1% |
| 2024 | ₩149.9B | ₩12.4B | ₩3.7B | 8.3% | 3.1% | 106.7% |
| 2025 | ₩149.1B | ₩7B | -₩13.1B | 4.7% | −12.4% | 64.3% |
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 149.1 billion, roughly in line with 2024's KRW 149.9 billion, but operating profit fell to KRW 7.0 billion (a 4.7% operating margin) from KRW 12.4 billion (8.3% margin) in 2024, a clear margin deterioration.
Notably, 2025 saw an owners' net loss of KRW 13.1 billion, swinging from a net profit of KRW 3.7 billion in 2024.
Looking further back, 2023 revenue was KRW 137.3 billion with operating profit of KRW 4.6 billion, down 4% and 57% respectively from 2022 (revenue KRW 143.2 billion, operating profit KRW 10.9 billion); the company attributed the decline to higher cost of sales and selling/administrative expenses stemming from rising raw material costs as well as weaker results at an overseas affiliate, with trial-and-error costs in silicon anode equipment also cited as a factor.
In 2024, revenue grew 9.1% year over year and the operating margin recovered to 8.3%, with net profit turning positive at KRW 3.7 billion, only for the company to swing back into a net loss in 2025.
On a quarterly basis, 2025Q2 revenue of KRW 23.9 billion and operating profit of KRW 3.5 billion were relatively solid, but volatility increased through 2025Q3 (revenue KRW 13.0 billion, operating loss of KRW 1.2 billion) and 2025Q4 (revenue KRW 15.0 billion, operating profit of KRW 2.1 billion but a net loss of KRW 9.2 billion).
The contraction became even more pronounced in 2026, with 2026Q1 revenue plunging to KRW 0.6 billion alongside an operating loss of KRW 4.5 billion and a net loss of KRW 2.2 billion, while 2026Q2 revenue of KRW 3.5 billion came with an operating loss of KRW 14.2 billion and a net loss of KRW 18.8 billion.
This contraction over the most recent four quarters (2025Q3 through 2026Q2) is stark relative to the company's annual revenue scale, suggesting a delay in the timing of revenue recognition on large projects.
Nonetheless, full-year 2025 operating cash flow improved sharply to KRW 32.6 billion from negative KRW 1.3 billion in 2024, and the debt ratio fell from 106.7% in 2024 to 64.3% in 2025, offering a contrasting signal on the balance sheet side.
Wonjoon's earnings are directly tied to the capital-expenditure cycle of battery-material producers making cathode and anode materials. The heat-treatment equipment business faces high barriers to entry, so only a small number of firms compete, and in Korea Hanwha's machinery division is cited as Wonjoon's main rival.
Wonjoon holds the most RHK furnace delivery track record among domestic firms, which is seen as a technological edge.
However, a structural weakness is that revenue volatility is high depending on whether customers proceed with capital investment, and dependence on POSCO Chemical (now POSCO Future M) in particular has been described as overwhelming.
Following the slowdown in battery-industry demand growth (the so-called chasm) in 2023-2024, cathode-material producers slowed their capacity expansion pace, which appears to have contributed to delays in the timing of furnace orders as well.
In new business areas, the company is broadening its portfolio into equipment for silicon anode and artificial graphite anode materials as well as heat-treatment solutions for solid-state batteries, with analysis suggesting that the expansion of its portfolio from cathode to anode materials is leading to customer diversification.
Because the heat-treatment process that stabilizes the properties of solid electrolytes is considered a key step for solid-state batteries, securing equipment-supply track record ahead of mass production is seen as potentially advantageous in future order competition.
The company has previously stated plans to proceed with preparations for equipment supply in North America and Europe as well as with orders already secured from existing customers, while also actively pursuing new customers, and at the time internally expected revenue to reach roughly 15% above the 2022 record of KRW 143.2 billion.
Actual 2024 revenue came in at KRW 149.9 billion, higher than the prior year but somewhat short of that internal target.
In a February 2026 report, independent research firm Stunning Value Research assessed that cumulative revenue through the third quarter of 2025 reached KRW 134.1 billion, up 16.4% year over year, and that the debt ratio improved from 106.7% at the end of 2024 to 58.6% in the third quarter of 2025, attributing this to a smooth conversion of large orders into revenue and ongoing balance-sheet stabilization.
However, this improving trend reversed into widening net losses in the fourth quarter of 2025 and the first half of 2026, illustrating continued quarter-to-quarter volatility tied to the timing of revenue recognition on large projects.
On the new-business front, the company appears to be continuing efforts to secure new domestic and overseas customers, building on its equipment-supply track record in silicon anode materials and solid-state batteries.
Key items to watch going forward are the timing of resumed revenue recognition on delayed large projects and any disclosures of new orders.
With net losses persisting for four consecutive quarters, the shares have been trading toward the lower end of their historical range relative to net asset value. The absence of recent dividend payments suggests dividend appeal falls short of the industry average.
Compared with the period when the company was profitable, the recent swing to losses is a factor that warrants caution when interpreting valuation metrics. Whether and how quickly earnings recover stands out as a key variable that could influence how the market assesses the company's net asset value going forward.
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
Wonjoon holds the most RHK furnace delivery track record among domestic firms and is regarded as the market leader in Korea's furnace market. It has a long transaction history with the POSCO group, giving it a deep supply track record with a key customer.
Given the industry's high barriers to entry, only a small number of competitors exist, leaving room to maintain a technological edge.
The company is expanding its portfolio by supplying PK furnaces for silicon anode and artificial graphite anode materials to Daejoo Electronic Materials and SK Materials Group Foteon, among others.
Its 2021 equipment delivery to US solid-state battery developer QuantumScape is cited as a strength in next-generation battery order competition. It is also pursuing customer diversification through overseas subsidiaries in Germany, China, the United States, Poland, and Canada.
Full-year 2025 operating cash flow improved sharply to KRW 32.6 billion from a negative figure in 2024. The debt ratio also declined from 106.7% in 2024 to 64.3% in 2025, showing improved financial stability.
Analysis has also suggested that the smooth conversion of large orders into revenue is helping stabilize the balance sheet.
Revenue in 2026Q1 fell to KRW 0.6 billion and 2026Q2 to KRW 3.5 billion, sharply lower than prior quarters. Over the same period, operating losses widened to KRW 4.5 billion and KRW 14.2 billion respectively, while net losses reached KRW 2.2 billion and KRW 18.8 billion.
Cumulative revenue over the most recent four quarters is markedly lower than the company's annual revenue scale, suggesting a possible delay in revenue recognition on large projects.
A heavy reliance on a small number of clients, including POSCO Chemical (now POSCO Future M), has been cited as a structural weakness. Revenue volatility has also been described as high depending on whether customers proceed with capital investment. A delay or reduction in investment by a specific customer could directly affect results.
Following the slowdown in battery demand growth in 2023-2024, cathode-material producers slowed their capacity expansion pace, and furnace order timing has continued to be delayed as a result.
If the recovery of the capital-investment cycle among upstream material producers is further delayed, the timing at which new orders convert into revenue could also be pushed back.
The widening net losses in the fourth quarter of 2025 and the first half of 2026 can be interpreted as a signal supporting this possibility.
Consecutive net losses reduced total equity at the end of 2025 to KRW 105.9 billion from KRW 119.2 billion at the end of 2024. Large net losses continued in the first half of 2026, raising the possibility that the decline in equity persists. Additional large losses could heighten concerns over financial soundness.
High reliance on a small number of large customers means that a delay in investment or a reduction in contracts by a specific customer could directly hit results.
If the capital-investment cycle of upstream battery-material producers is delayed, there is a risk that new orders and revenue recognition timing could both be pushed back. How quickly customer diversification progresses is key to mitigating this risk.
Domestically, Hanwha's machinery division is cited as Wonjoon's main competitor, and competition for large orders continues. Intensifying entry by overseas players or price competition could weigh on profitability.
Even in newer areas such as silicon anode and solid-state battery equipment, the possibility of new competitors entering cannot be ruled out.
The filing deadline for the 2026 third-quarter report; it will be important to check whether the recent multi-quarter revenue contraction reverses and whether revenue recognition on large projects resumes.
It is worth monitoring for disclosures of new customer wins in North America and Europe, as well as new orders related to silicon anode materials and solid-state batteries.
The timing of the preliminary 2026 full-year earnings release, when it will be worth assessing how much the net-loss trend seen through 2025 and the first half of 2026 improves on a full-year basis.
Whenever there are disclosures of changes in expansion plans or large supply contracts from key customers such as POSCO Future M, it will be necessary to assess the impact on the earnings outlook.
Wonjoon has long maintained a leading position in Korea's heat-treatment equipment market for battery materials and is diversifying its growth drivers by expanding into silicon anode materials and solid-state batteries.
However, recent results have shown pronounced volatility, following a 2025 owners' net loss of KRW 13.1 billion with a sharp revenue drop to KRW 0.6 billion and KRW 3.5 billion in the first and second quarters of 2026 respectively, alongside widening operating and net losses.
This appears tied to a business structure concentrated among a small number of large customers, where quarterly results swing significantly depending on the timing of project-based revenue recognition.
That said, the improvement in 2025 operating cash flow to KRW 32.6 billion and the decline in the debt ratio can be viewed as positive signals for the balance sheet.
Key items to watch going forward include when revenue recognition resumes on delayed large projects, progress in securing new customers in North America and Europe, and whether new businesses in silicon anode materials and solid-state batteries expand their revenue contribution. This report is provided for reference and informational purposes only.
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.