[Click eStock] "Keilum to Benefit from Aircraft Engine Supercycle... The Only Company in Korea with All Four Major NADCAP Certifications"

Keilum, a specialist in aircraft engine parts, is expected to benefit structurally from the long-term growth phase of the global aviation industry and the ongoing shortage of parts supply. In particular, Keilum's technology competitiveness—being the only company in Korea to possess all four major NADCAP special process certifications—and its foundation of long-term orders are seen as the driving forces of its growth.

On July 15, independent research firm ValueFinder predicted in its analysis report on the aircraft engine industry that, by 2044, the global operating fleet will expand to roughly twice its current size, while bottlenecks in aircraft engine parts production will persist. As a result, it assessed that Keilum, as a global Tier-1 parts supplier, will be a primary beneficiary of this structural growth.

According to the report, the global aircraft engine market is expected to grow at an average annual rate of approximately 5.5% through 2033. As of the end of May, outstanding orders for aircraft from Boeing and Airbus totaled around 16,000 units, equivalent to about 12 years’ worth of industry-average production volume.

Founded in 2009, Keilum is a manufacturer of aircraft engine parts and plant equipment that was listed on the KOSDAQ market in 2017. It is the only Tier-1 aircraft engine parts supplier in Korea to have signed a direct supply contract with France’s Safran, and it holds the nation’s only comprehensive NADCAP certifications for all four critical special processes necessary for high-temperature aircraft engine component production: EDM, HT, NDT, and WLD. In addition, Keilum possesses capabilities in 5-axis CBN creep feed grinding technology and in-house CBN wheel design.

Keilum recorded consolidated sales of 8.17 billion won in 2025. In the first quarter of this year, the company posted sales of 2.66 billion won, operating profit of 900 million won, and an operating margin of 3.3%.

ValueFinder researcher Jeon Woobin stated, "Keilum's key investment point is its order backlog of approximately 200 billion won secured based on long-term contracts with global clients such as Safran and Hanwha Aerospace. This corresponds to about 2.4 years' worth of its 2025 consolidated sales and, when considering only aircraft components, equates to approximately 8 years' worth of its engine division sales, ensuring long-term revenue visibility."

He further analyzed, "Since CFM plans to increase LEAP engine production from 1,407 units in 2024 to 2,600 units by 2028, Keilum’s orders for LPT vanes should also increase proportionally in line with the expanded production."

The potential for improved profitability was also highlighted. Jeon explained, "If the company succeeds as planned in internalizing the Honeycomb Liner material process in the second half of this year, and in obtaining the NADCAP VPA coating certification by the end of 2027, the parts portfolio will expand from being centered on Low Pressure Turbines (LPT) to also include High Pressure Turbines (HPT) and Thermal Barrier Coating (TBC) modules. As a result, the operating margin for the aircraft engine division could rise to over 16%."

Additionally, participation in the mutual growth MOU for domestic production of aircraft engines led by Hanwha Aerospace and Keilum’s supply of equipment for the geothermal power project of the U.S. company Fervo Energy were highlighted as future growth engines.

In summary, as the global aircraft engine supercycle and parts shortages continue, Keilum is expected to achieve stable growth and improved profitability thanks to its status as the only company in Korea with four NADCAP certifications and a strong foundation of long-term orders.

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