SolDefense Reports Operating Loss of 7.8 Billion Won in Q1 2026, Turns to Deficit
Defense company SolDefense (formerly Hucentech) reported a consolidated operating loss of 7.81 billion won in Q1 2026, turning to deficit from a net profit of 4.35 billion won in the same period last year.
Separate operating loss of 9.47 billion won. Consolidated revenue increased to 8.69 billion won (from 5.79 billion won YoY), but profitability deteriorated due to a surge in SG&A expenses (2.65 billion won), including 1.28 billion won in warranty expenses.
Strong financial structure: cash and cash equivalents of 11.93 billion won, net debt of -10.26 billion won (net cash). Total assets 59.57 billion won, equity 50.85 billion won.
Corporate credit rating upgraded to BBB- (stable) in March 2026 from BB in prior year. Trading suspension lifted in May 2025 after passing listing eligibility review.
Multiple ongoing criminal complaints and civil lawsuits related to embezzlement and breach of trust (total 9.57 billion won). Full allowance for doubtful accounts on illegal activity receivables and others (6.85 billion won).
Issued 2.6 billion won convertible bonds in September 2025 (6th series, maturity 2030). Granted 800,000 stock options (exercise price 4,000 won).
Acquired 338,742 treasury shares in Q1 2026 (small scale). No dividend plan.
Defense division order backlog of 37.69 billion won (increased from year-end 2025). Key contracts like KF-21 in progress.