Waveus Order Backlog Surges 107% in Six Months... "Second-Half Revenue to Accelerate"

Waveus, a spatial information platform specialist, is accelerating improvements in its second-half performance, leveraging growth in its core business—system integration (SI) and system management (SM)—as well as a large order backlog. Although total sales shrank in the first half of the year due to a decrease in low-margin equipment sales, core business revenue and profitability actually improved.

According to a corporate analysis report published on October 1, 2026, by Independent Research R, Waveus recorded consolidated revenue of KRW 26.47 billion in the first half of this year, marking a decline compared to the same period last year. However, service revenue generated over time from public system construction and development (SI) and maintenance (SM) reached KRW 25.24 billion, up 9.9% from KRW 22.97 billion in the same period last year.

In particular, SM service revenue, which is based on recurring contracts, increased by 20.4% year-on-year. Although total revenue fell as low-margin product sales—which spiked temporarily in the first half of last year—decreased, the proportion of high-margin service revenue grew.

As a result, the gross profit margin also improved. Waveus’ gross profit margin in the first half of the year rose 5.7 percentage points, from 21.0% last year to 26.7% this year. Independent Research R analyzed that it is necessary to look not only at headline figures but also at the changes in revenue composition and profitability.

During the first half, Waveus also expanded its pool of specialists for future growth businesses. In order to apply and commercialize GeoAI—an integration of spatial information and AI—through projects such as urban safety AI and an integrated AI licensing demonstration project, the company recruited over 20 specialists with 15–20 years of experience, including 2 PhDs and 6 master’s degree holders. The report noted that increased labor costs during this process were one of the factors behind higher selling and administrative expenses in the first half.

A major driver for second-half performance improvement is the substantial expansion of the company's order backlog. Waveus’ officially disclosed order backlog surged 107% in just six months, from KRW 16.94 billion at end-2025 to KRW 35.12 billion at the end of June 2026. Of this, the volume to be recognized as revenue in the second half amounts to KRW 17.71 billion.

There were also several large contracts, especially in the public sector. Waveus secured a contract worth KRW 14.38 billion for integrated maintenance of the National Health Insurance Service’s systems; KRW 7.14 billion for infrastructure maintenance for Korea Land & Housing Corporation (LH); and KRW 3.36 billion for Phase 3 of the Next-Generation Real Estate Integrated Management System. In particular, the National Health Insurance Service contract was renewed with an increase of 15.4% over the previous agreement, demonstrating potential for recurring contracts based on existing customers.

Taking into account the current order backlog and recurring revenue, Independent Research R forecasts that Waveus’ core business revenue will surpass last year’s KRW 54.23 billion. The report estimates 2026 core business revenue at over KRW 57.9 billion. Revenue recognition from existing contracts as well as the seasonal concentration of public SI projects in the second half are expected to contribute to improved results.

In new growth sectors, Waveus is expanding GeoAI and digital twin businesses—integrating spatial information and AI. Waveus has built and operated major public spatial information systems such as the Korea Land Information System (KLIS), 1SaPyeonRi, and the Real Estate Integrated Management System, leveraging over 20 years of experience in spatial information system development and operation. The company also operates proprietary platforms including GeOnPaaS, GeOnDT, GeOnCity, GeOnAirX, and GeOnAI.

The company’s strategy is to leverage accumulated data and digital twin technologies from its existing spatial information business to respond to AI demand in the public sector and expand into high value-added platform business areas. Starting with urban safety AI, Waveus aims to foster GeoAI as a new growth engine.

Its financial structure is also supporting business expansion. According to Independent Research R, as of June 2026, Waveus’ net financial assets stand at KRW 39.43 billion, exceeding its market capitalization of about KRW 29.57 billion. The company maintains a zero-debt policy with no financial institution borrowings, a debt ratio of 46.3%, and an equity ratio of 68.3%.

A Waveus representative commented, “The first half was a period of temporary decline in equipment sales and the augmentation of specialists for future new businesses. As we have laid the groundwork for second-half performance improvement through growth in our core spatial information SI and SM business and an increase in order backlog, we will continue to reinforce the competitiveness of our existing business while expanding new growth areas such as GeoAI and digital twins to secure sustainable growth engines.”

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