HIGEN Motor (160190) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was KRW 18.6 billion, a slight increase year-over-year, but the company posted an operating loss of KRW 3.4 billion and a net loss of KRW 3.2 billion for the quarter.

• Gross margin turned negative in Q1 2026, with cost of sales exceeding revenue, reflecting margin pressure.

• The company maintains a strong cash position (KRW 17.2 billion) and low leverage, with a capital adequacy ratio of 7.4%.

• The business is diversified across industrial motors, servo & robot, and EV mobility, with industrial motors accounting for nearly 80% of Q1 sales.

Financial highlights

• Q1 2026 revenue: KRW 18.6 billion (up slightly YoY); operating loss: KRW 3.4 billion; net loss: KRW 3.2 billion.

• Gross profit was negative (KRW -264 million), with a gross margin of -1.4%.

• Cash and cash equivalents at quarter-end: KRW 17.2 billion.

• Total assets: KRW 162.7 billion; total liabilities: KRW 58.1 billion; total equity: KRW 104.6 billion.

• R&D expense for Q1: KRW 522 million (2.8% of sales).

Outlook and guidance

• The company is investing in R&D for next-generation motors, robotics, and EV modules, targeting growth in automation, mobility, and robotics markets.

• Anticipates increased demand from regulatory changes (IE4 efficiency standards in 2027) and ongoing electrification trends.

• Plans to leverage government projects and expand into niche and global markets, especially in robotics and mobility.