KPS Q2 Earnings: Revenue Beats Expectations, Investment Opportunity?

1. KPS Q2 Earnings: 6% Revenue Growth, Beating Market Expectations

KPS reported consolidated revenue of KRW 454 billion in Q2 2025, surpassing the market consensus of KRW 426.8 billion by 6%, demonstrating robust growth. While operating profit and net profit slightly missed expectations at KRW 65.6 billion and KRW 50.9 billion respectively, the revenue growth is interpreted as a positive signal.

2. Drivers of Robust Growth: Core Business Strength and Nuclear Power Expansion

This growth is attributed to KPS’s strong position in the power plant maintenance market and its benefit from the nuclear power expansion policy. Revenue growth in the nuclear/pumped storage segment was particularly notable, and the steady growth of overseas business also contributed positively.

3. Investment Opportunities and Risks: Growth Potential and Profitability Improvement Challenges

• Opportunities: Nuclear power expansion policy, overseas business growth potential, robust revenue growth
• Risks: Operating and net profit below expectations, exchange rate volatility, regulatory and policy changes, ongoing litigation

4. Investment Strategy: Positive Long-Term Outlook, Consider Short-Term Volatility

KPS is viewed positively from a long-term investment perspective, underpinned by stable fundamentals and growth potential. However, careful investment decisions are needed, considering short-term stock price volatility and profitability improvement challenges.