1. What Happened? KOTs Technology Releases H1 2025 Earnings
KOTs Technology released its H1 2025 earnings report on August 18, 2025. The company returned to profitability, fueled by strong K-Defense exports and enhanced technological competitiveness. Investments in future growth drivers are also actively underway.
2. Why Does it Matter? Return to Profitability and Growth Potential
KOTs Technology’s return to profitability after recording a loss in 2024 is a highly encouraging sign. The expansion of K-Defense exports and the company’s strategic focus on 4th Industrial Revolution technologies are yielding tangible results. Increased R&D investment is also securing future growth drivers. The order backlog of KRW 42.041 billion is expected to support stable revenue generation for the next 2-3 years.
3. What are the Key Takeaways? Financial Performance and Business Segment Analysis
- Revenue: KRW 13.8 billion (Year-on-year decrease due to project timing and new order delays)
- Operating Profit: KRW 1.4 billion (Return to profitability)
- Net Profit: KRW 1.2 billion (Return to profitability)
- Defense Industry: Expanding K-Defense exports, solid order backlog
- Civilian Industry: Diversification into railways, HVDC, etc.
- R&D: Continuous investment to strengthen technological competitiveness
4. What Should Investors Do? Investment Opinion and Considerations
This report recommends a ‘Buy’ rating for KOTs Technology. Considering the growth of K-Defense, business diversification, a positive order backlog, and future investments, the company’s long-term growth potential is high. However, investors should carefully consider potential risks such as short-term earnings volatility, increasing debt, and historical stock price fluctuations. Consulting with a financial advisor is recommended before making investment decisions.