1. What Happened? Q2 Profitability, But a Shaky First Half

KB AutoSys reported revenue of KRW 213.2 billion and operating profit of KRW 5.4 billion in Q2 2025, a significant improvement from Q1. However, for the first half, revenue declined 11.6% year-over-year, with both operating and net income turning negative. Net income was particularly weak, down 91.1% YoY to KRW 0.7 billion.

2. Why Did This Happen? Sluggish Auto Market and Weakening Financials

  • Global automotive market slowdown and increased competition
  • Rising raw material prices and exchange rate volatility
  • Growing financial burden from high debt-to-equity ratio (250.27%)

3. What’s Next? Uncertainty Remains, Key Variables to Watch

While the Q2 rebound is positive, its sustainability is uncertain. The following factors are expected to heavily influence KB AutoSys’s future performance:

  • Success of EV transition strategy
  • Debt reduction efforts and outcomes
  • Global automotive market and raw material price trends

4. What Should Investors Do? Cautious Approach, Continuous Monitoring Required

Despite the Q2 improvement, short-term investors should proceed with caution, considering the company’s financial health and market uncertainties. Long-term investors should closely monitor the company’s EV strategy, debt reduction efforts, and overseas performance when making investment decisions.