Kenkoua Aerospace, 1Q Operating Profit Turns Positive... "Record High for 1st Quarter"

[Asia Economy Reporter Hyunseok Yoo] Kencoa Aerospace announced on the 14th that it recorded an operating profit of 200 million KRW in the first quarter on a consolidated basis, achieving a turnaround. Consolidated sales also reached 10.2 billion KRW, marking the highest first-quarter performance in the company's history. This is the first time sales have exceeded 10 billion KRW in a first quarter.

With mass production sales in the cargo aircraft modification sector being fully realized, the headquarters' standalone sales grew by 147.37% year-on-year to 4.7 billion KRW. The company expects that the recent increase in cargo aircraft demand will be further reflected in future results. Additionally, if sales in the recovering commercial aircraft sector improve, the company anticipates an even steeper growth trajectory.

The company expects performance growth to expand further from the second quarter onward. Full-scale shipments of the cargo aircraft modification business began in March, the last month of the first quarter. Moreover, as it is pursuing M&A in the rapidly growing U.S. launch vehicle market, the company explained that significant growth is achievable.

Furthermore, Kencoa USA, the U.S. subsidiary conducting the recently spotlighted U.S. launch vehicle business, is a first-tier vendor for Lockheed Martin and Boeing. It achieved its highest quarterly operating profit in the past three years. This is interpreted as a result of increased profit margins driven by the expansion of U.S. defense projects and growth in the launch vehicle market.

Min-kyu Lee, CEO of Kencoa, said, “We consider the realization of operating profit in the first quarter very meaningful amid the challenging conditions in the aerospace manufacturing industry. This year will be a year of achieving the best growth across various business areas, including space launch vehicle business, U.S. defense business, and MRO.”