KP Aero Industries케이피항공산업

KP Aero Industries swung to a large TTM net loss in H1 2026 despite a small operating profit, and its shares are down sharply over the past month and quarter.

The company makes aircraft parts, jigs and fixtures for aviation and defense customers, including Korea Aerospace Industries and Korean Air. Its trailing twelve-month revenue is about ₩54.1B, but operating income is only about ₩0.3B and net income is about -₩13.6B, with borrowings of about ₩34.8B against cash of about ₩10.8B. The share price closed at ₩6,420 on 26 October 2026, down 15.1% over one month and 16.5% over three months.

What stands out

• Trailing revenue of ₩54.1B is slightly above the 2025 full-year figure of ₩53.9B, but operating margin has fallen from 4.9% in 2025 to about 0.5%.
• The TTM net loss of about -₩13.6B (net margin -25.2%) is far larger than the 2025 net profit of ₩1.6B, and the data does not explain the cause.
• Free cash flow is negative at about -₩7.7B, and liabilities are 189.8% of equity, so debt is a notable feature of the balance sheet.
• Recent filings include a debt guarantee decision, a loan extension, a major sales or supply contract and a trading halt in August 2026; the data gives no detail on their size or terms.
• The DCF fair value range in the data is very wide (bear ₩0, base ₩338, bull ₩4,077), well below the current price, and the model is not a forecast.
• Foreign ownership is small at 1.2%, and the data shows foreign net selling over the last 20 days.

What to watch

• Next periodic results and any further amendments to the half-year report, since the TTM figures show a sharp deterioration.
• Details of the debt guarantee and loan extension filings, including amounts and conditions, which are not in the data.
• Whether the August 2026 major contract translates into revenue and whether the trading halt reasons are disclosed in full.