KOSDAQAerospace & Defense462350

Innospace

₩6,430▲ 3.71%2026-10-02 close

Market Cap

₩219.2B

Turnover

₩1.9B

Volume

300,000 shares

Shares out.

33.9M

PER

—

PBR

—

EPS

-₩2,888

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

Innospace: Relaunch Ahead, Losses Continue

Innospace is preparing for a November 2026 HANBIT-Nano relaunch and SEBIT follow-up tests, but two consecutive flight anomalies and losses far outpacing revenue remain unresolved.

1
The December 2025 first commercial launch of HANBIT-Nano failed to reach orbit due to a combustion chamber rupture, and the relaunch is now targeted for November 2026 after root-cause analysis.
2
The multi-purpose suborbital rocket SEBIT also ended its first test flight early in August 2026 due to a trajectory anomaly.
3
2025 revenue was KRW 2.7 billion, with an operating loss of KRW 72.2 billion and a net loss of KRW 75.1 billion, widening from the prior year.
4
In January 2026, the company secured a 5-year preferential launch site in Portugal's Azores islands, adding a third overseas launch base after Brazil and Australia.
5
In the defense segment, a mock launch vehicle supply contract with LIG D&A is planned to generate roughly KRW 12.4 billion in revenue from 2025 to 2027.

Business structure

Innospace is Korea's only space launch vehicle company built on hybrid rocket propulsion technology.

Its business is organized around rocket propulsion system manufacturing and rocket-related technical services, and it operates subsidiaries in Brazil, Europe, and the UAE to provide satellite launch services to satellite operators.

Its main products are the HANBIT-Nano, HANBIT-Micro, and HANBIT-Mini family of small hybrid launch vehicles.

It has also developed the multi-purpose suborbital rocket SEBIT, which, unlike orbital launch vehicles, flies to altitudes below 100km and targets a test-and-verification service market spanning space, defense, bio-medical, and new-materials industries.

In the defense segment, a supply contract for three types of mock launch vehicles with LIG D&A is planned to generate roughly KRW 12.4 billion in revenue between 2025 and 2027.

Hybrid propulsion technology allows thrust control and restart, making it applicable to existing guided weapon systems such as air-to-air, air-to-surface, and surface-to-surface missiles, high-speed target drones, and decoys, creating overlap between the launch vehicle and defense businesses.

Its launch site network has expanded from the Alcantara Space Center in Brazil to Australia, and, following a January 2026 contract, to Santa Maria Island in Portugal's Azores, giving it three overseas launch site rights.

The company listed on KOSDAQ in July 2024 and, given continuing heavy R&D spending since listing, remains an early-stage growth company without a stable revenue base yet.

Earnings trend

Quarterly revenue · Operating profit

₩500M-₩16.7B25Q2₩1.1B-₩18.6B25Q3₩1B-₩23B25Q4₩1.4B-₩12.4B26Q1₩2.5B-₩15.8B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩300M-₩25.8B2022₩200M-₩15.9B2023₩14,708,000-₩32.9B2024₩2.7B-₩72.2B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩500M	-₩16.7B	−3705.2%
2025Q3	₩1.1B	-₩18.6B	−1702.8%
2025Q4	₩1B	-₩23B	−2395.3%
2026Q1	₩1.4B	-₩12.4B	−885.6%
2026Q2	₩2.5B	-₩15.8B	−640.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩300M	-₩25.8B	-₩48.3B	−7546.0%	—	−128.1%
2023	₩200M	-₩15.9B	-₩83.2B	−6883.1%	−419.9%	21.3%
2024	₩14,708,000	-₩32.9B	-₩33.3B	−223717.9%	−75.5%	26.5%
2025	₩2.7B	-₩72.2B	-₩75.1B	−2630.5%	−144.3%	34.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-05

Earnings analysis

2025 consolidated revenue was KRW 2,746.49 million, up sharply from KRW 14.71 million in 2024, though the absolute scale remains small.

Over the same period the operating loss was KRW 72,246 million and the net loss attributable to owners was KRW 75,097 million, more than double the prior year's operating loss of KRW 32,904 million and net loss of KRW 33,346 million.

KB Securities analyzed in an April 2026 report that most of 2025 revenue, about 81.3%, came from product sales such as sounding rockets and engine components.

On a quarterly basis, revenue slipped slightly from KRW 1,094.72 million in Q3 2025 to KRW 959.95 million in Q4 2025, then rose for two consecutive quarters to KRW 1,397.26 million in Q1 2026 and KRW 2,471.75 million in Q2 2026.

However, operating losses persisted in the KRW 12.4-23.0 billion range each quarter, meaning revenue growth did not translate into improved profitability. Combined net loss attributable to owners over the trailing four quarters (Q3 2025-Q2 2026) reached KRW 72,867 million.

Operating cash flow was negative KRW 51,168 million in 2025, an outflow even larger than the net loss, reflecting continued cash consumption from R&D and launch preparation.

Total equity moved from negative KRW 83,816 million (capital impairment) in 2022 to KRW 19,824 million in 2023, KRW 44,186 million in 2024, and KRW 52,029 million in 2025, but this reflects cumulative capital inflows from the IPO and follow-on financing rather than profit.

Industry analysis

With the arrival of the New Space era, demand for small-satellite launches has grown and numerous startups have entered the small launch vehicle market. iM Securities analyzed in an April 2025 report that Innospace's launch service contracts totaled 13, worth about KRW 22.7 billion, as of February 2025.

The same report projected launch frequency rising from 5 in 2025 to 12 in 2026, 20 in 2027, and 32 in 2028, but in practice the first commercial launch in December 2025 failed to reach orbit and the relaunch has been delayed to November 2026.

Hana Securities similarly projected 2025 revenue of KRW 41.5 billion in a February 2025 report, but actual confirmed revenue came in at only KRW 2.7 billion, a wide gap between estimate and outcome.

Domestically, KASA (Korea AeroSpace Administration) has been expanding policy support such as reusable launch vehicle development, while competitors are also advancing small launch vehicle programs, creating a competitive landscape.

Internationally, launch vehicle companies that have already achieved commercial launch success have established an early market position, leaving Innospace as a later entrant still in the technical validation stage.

Overall, Innospace sits at the demonstration and early commercialization stage of the industry cycle, and whether revenue accelerates depends on improving launch success rates.

Outlook

Innospace identified the cause of the failed first commercial launch in December 2025 as a combustion chamber rupture caused by high-temperature combustion gas leaking from the HANBIT-Nano airframe.

The company said the investigation procedure conducted by CENIPA, under the Brazilian Air Force, was also concluded during 2026.

Reflecting design improvements, the relaunch target has been adjusted to November 2026, and this attempt will carry the company's own test satellite InnoSat-0 to comprehensively verify mission performance and system stability.

The multi-purpose suborbital rocket SEBIT conducted its first test flight at Alcantara, Brazil on August 19, 2026 (local time) but ended the mission early due to a trajectory anomaly, and the company said it is analyzing flight data to determine the cause.

Launch site diversification also progressed, as the company secured 5-year preferential rights to the Malbusca launch site on Santa Maria Island in Portugal's Azores in January 2026, extending its footprint from Brazil and Australia into Europe.

The company stated it plans to build core infrastructure such as launch pads at this European site in stages, targeting a commercial launch in Q4 2026.

On the technology front, its dual-propellant regeneratively cooled methane engine combustor technology was designated as KASA's first Space New Technology of 2026, and the LiMEK-04 methane engine for the HANBIT-Micro kick stage also succeeded in a domestic-record 420-second ground combustion test, indicating parallel development of follow-on launch vehicles.

Valuation

PER

—

PBR

—

ROE

-95.3%

EPS

-₩2,888

BPS

—

Dividend per share

₩0

Innospace has not yet generated clear profit, leaving its price-to-earnings ratio in a range that cannot be calculated. Its price-to-book ratio sits below 1x, meaning the shares trade at a discount to net assets. No dividend is being paid, so dividend appeal is difficult to expect under the current structure.

The trading band has historically swung widely around launch events and policy expectations, so market attention tends to focus more on launch success and order growth than on reported earnings.

Ultimately, how the valuation is judged depends on how the HANBIT-Nano relaunch, SEBIT follow-up tests, and the pace of order growth unfold 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 2026-09-05

Bull factors

Launch Site Diversification

Following Brazil and Australia, the company secured a 5-year preferential launch site in Portugal's Azores in January 2026, extending its footprint into Europe.

CEO Kim Su-jong said the deal "secured Innospace's first launch site in Europe, following Brazil and Australia." This reduces dependence on any single launch site and helps spread schedule risk from weather or political variables. The company said it is building infrastructure at this site targeting a Q4 2026 commercial launch.

Expanding Defense Applications

Innospace's hybrid rocket propulsion technology is being highlighted as applicable to existing guided weapon systems such as precision missiles, high-speed target drones, and decoys.

A contract with LIG D&A for three types of mock launch vehicles is planned to generate roughly KRW 12.4 billion in revenue from 2025 through 2027, supplementing cash flow before launch vehicle revenue becomes substantial. Additional contracts remain possible amid rising defense budgets.

New Technology Certification and Core IP

The company's dual-propellant regeneratively cooled methane engine combustor technology was designated as KASA's first Space New Technology of 2026. The LiMEK-04 methane engine for the HANBIT-Micro kick stage also achieved a domestic-record 420-second ground combustion test.

This accumulation of core technology could serve as a technical foundation for expanding the launch vehicle lineup and securing overseas customers.

Bear factors

Repeated Launch Anomalies

The first commercial HANBIT-Nano launch in December 2025 failed to reach orbit after a combustion chamber ruptured due to high-temperature gas leaking from the airframe. The first SEBIT test flight in August 2026 also ended its mission early due to a trajectory anomaly.

Two consecutive flight anomalies could weigh on the credibility of the launch schedules the company has presented.

Losses Far Outpacing Revenue

2025 revenue was only KRW 2.7 billion while the operating loss reached KRW 72.2 billion and net loss KRW 75.1 billion, with losses running tens of times larger than revenue.

Quarterly revenue rose in 2026 (KRW 1.4 billion in Q1, KRW 2.5 billion in Q2), but quarterly operating losses remained in the KRW 12.4-15.8 billion range. Operating cash flow was also negative KRW 51.2 billion in 2025, indicating continued cash consumption.

Gap Between Guidance and Actual Results

Hana Securities projected 2025 revenue of KRW 41.5 billion in a February 2025 report, but actual confirmed revenue was KRW 2.7 billion, less than one-tenth of the estimate. iM Securities' projected launch frequency (5 launches in 2025, among others) also diverged significantly from actual results.

This illustrates how schedule uncertainty inherent to the launch vehicle industry makes revenue estimation difficult.

Risk factors

Technical and Launch Risk

Both HANBIT-Nano and SEBIT experienced flight anomalies on their first attempts. Even after root-cause analysis and design improvements, recurrence prevention has not been fully validated, and schedules could be further adjusted depending on follow-up test results.

Since the launch vehicle industry builds reliability through repeated flight demonstrations, near-term stability cannot be assumed.

Financial and Funding Risk

Operating cash flow was negative KRW 51.2 billion in 2025, reflecting continued cash outflow from R&D and launch preparation. Total equity has been built up through the IPO and follow-on financing, but as long as losses continue, the need for additional funding persists. Depending on the funding method, dilution of existing shareholders' equity value cannot be ruled out.

Regulatory and Multi-Jurisdiction Risk

Launch schedules depend simultaneously on multiple institutional processes, including CENIPA's investigation procedures in Brazil, KASA's launch permit review, and the operational transition of the Brazilian state company ALADA.

The Azores launch site in Portugal also requires coordination with the local operator and the Portuguese space agency. With schedules across multiple countries and institutions intertwined, planned launch dates remain subject to further change.

What to watch next

November 2026
Check whether the HANBIT-Nano relaunch is attempted and whether it reaches orbit - the key is verifying system stability with the InnoSat-0 test satellite payload.
Q4 2026
Monitor progress on commercial launch infrastructure at the Azores site in Portugal and whether an actual launch attempt occurs.
During Q4 2026
Check for disclosure of the SEBIT trajectory anomaly root-cause analysis and the schedule for a follow-up test flight.
Mid-November 2026
Q3 2026 quarterly report filing - check whether the revenue growth trend (KRW 1.4 billion in Q1, KRW 2.5 billion in Q2) continues into Q3, along with the trend in quarterly loss size.

Overall view

Innospace is Korea's only hybrid rocket-based launch vehicle company, expanding its business footprint with overseas launch sites in Brazil, Australia, and Portugal.

However, both the first HANBIT-Nano commercial launch in December 2025 and the first SEBIT test flight in August 2026 failed to complete their objectives due to flight anomalies, meaning technical validation remains ongoing.

Financially, 2025 revenue was KRW 2.7 billion against an operating loss of KRW 72.2 billion and a net loss of KRW 75.1 billion, and while quarterly revenue has grown into 2026, the large-loss structure persists.

The defense segment's mock launch vehicle supply contract and new technology certifications can be viewed as diversification efforts ahead of a full ramp-up in launch vehicle revenue.

Key items to watch going forward include whether the HANBIT-Nano relaunch scheduled for November succeeds, the timeline for SEBIT follow-up tests, and whether the quarterly revenue growth trend continues. This report is for informational purposes only and does not include a buy/sell opinion or a target price.

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.