Contec (451760) Q1 2025 earnings summary

Executive summary

• Provides full-spectrum solutions in the space industry, covering both upstream (satellite and component development, manufacturing) and downstream (ground stations, data processing, analytics, and communication terminals).

• Listed on KOSDAQ in November 2023, with recent expansion through acquisition of AP Satellite and global partnerships.

• Holds 49 patents (15 domestic, 34 overseas) and maintains a strong R&D focus, with 8% of Q1 2025 revenue invested in research.

Financial highlights

• Q1 2025 consolidated revenue: KRW 18.8 billion, up from KRW 15.8 billion in Q1 2023 but down from KRW 69.0 billion in FY2024.

• Q1 2025 operating loss: KRW -5.2 billion; net loss: KRW -4.8 billion; EPS: KRW -293.

• Cash and cash equivalents at Q1 2025: KRW 108.3 billion.

• Gross margin for Q1 2025: 9.8%.

Outlook and guidance

• Positioned for growth in downstream services, with market expansion expected in satellite data and value-added services.

• Government and private sector investments in the Korean space industry are increasing, supporting future demand.