FRTEK: 1Q26 Sales Plunge, Operating Loss; Cash Dividend of 75 Won Confirmed
Consolidated 1Q26: Revenue KRW 4.08bn (down 55.6% YoY), Operating loss KRW 0.51bn (vs profit of KRW 0.64bn), Net loss KRW 0.32bn (vs profit of about KRW 1.44bn)
Standalone 1Q26: Revenue KRW 4.03bn, Operating loss KRW 0.70bn, Net loss KRW 0.49bn
Cash dividend of KRW 75 per share approved (total KRW 0.86bn); policy to pay out over 40% of consolidated net income
High customer concentration: KT accounts for 82.8% of sales (KRW 3.38bn)
Debt-to-equity ratio 23.5% (vs 21.4% at year-end); solid financial position
Cash and equivalents sharply declined to KRW 3.22bn (from KRW 20.12bn at year-end) due to increased investment in short-term financial instruments
FRTEK US LLC remains deeply insolvent (net liabilities KRW 11.33bn); potential need for deconsolidation
New order in March 2026: KRW 3.38bn for KT KELIS repeaters; total order backlog KRW 15.48bn
R&D expenditure KRW 0.34bn (8.3% of sales); ongoing development in 5G/6G and O-RAN equipment