Kenko Aerospace Achieves Best Performance Since Inception... Operating and Net Profit Turn Positive with Record-High Sales

Kenkoreaerospace achieved its best performance since its founding last year. Thanks to double-digit sales growth, it recorded the highest sales ever, and both operating profit and net profit turned positive for the first time since its listing in 2020.

Kenkoreaerospace announced on the 23rd that its consolidated operating profit and net profit for last year reached 8 billion KRW and 3.2 billion KRW respectively, marking a successful turnaround.

During the same period, sales increased by 39% year-on-year to 75.9 billion KRW, continuing an eight-quarter streak of record-breaking performance. This growth was driven by the passenger-to-freighter conversion (MRO) business entering a full-fledged growth trajectory.

The space materials business also contributed to the strong results. The quarterly sales of the space materials division at its U.S. subsidiary, California Metal, showed steep growth. It is expected to achieve rapid growth by solidifying its position in the U.S. launch vehicle market, which is growing at over 30% annually.

Performance this year is also anticipated to be strong. As the MRO business enters a phase of production stabilization, sales growth is accelerating. In particular, shipments of the second batch of Airbus A330 MRO orders will begin this year, with an order value of approximately 120 billion KRW expected to be reflected in sales.

A company official stated, “As initial deliveries of the second batch of passenger-to-freighter conversion orders begin this year, we expect to maintain stable business performance. Although significant profitability improvements are unlikely in the first half due to the reflection of initial costs, gradual profit margin growth is expected from the second half as production stabilization progresses for the second batch.”

Kenkoreaerospace is establishing itself as a leading company in the global aerospace value chain. With the boom in front-end markets such as air transportation, aircraft production is also entering a boom period. The company is receiving business expansion proposals from existing clients as well as new business proposals from global aerospace companies. It plans to diversify its business portfolio through various new ventures such as space satellite imaging.

Min-kyu Lee, CEO of Kenkoreaerospace, said, “Continuing record-breaking sales for consecutive quarters, 2022 marked the highest-ever performance in sales and operating profit. Based on the growth of businesses showing stable growth and profitability, we will focus on securing growth momentum in MRO, space launch vehicles, and space satellite imaging, establishing ourselves as a leading domestic company in the global aerospace market.”

This content was produced with the assistance of AI translation services.