Hanwha Aerospace (012450) investor relations material

Executive summary

• Q1 2026 consolidated sales reached KRW 5,751 billion, up 5% year-on-year, with growth in all major segments and notable gains in Aerospace and Hanwha Ocean.

• Operating profit increased 21% year-on-year to KRW 638.9 billion, driven by Hanwha Ocean and higher divisional sales.

• Net profit for Q1 was KRW 525.9 billion, up 188% year-on-year, reflecting improved margins and profitability.

• Growth was supported by strong domestic sales and significant contributions from Hanwha Systems and Hanwha Ocean.

Financial highlights

• Operating profit margin improved to 11.1% from 9.7% year-on-year.

• Pretax profit margin rose to 9.6% from 4.2% year-on-year.

• Net profit margin increased to 9.1% from 3.3% year-on-year.

• Total assets stood at KRW 56,543 billion and total liabilities at KRW 39,203.1 billion.

• Net debt to equity ratio was 41%, up from 27% at year-end 2025.

Outlook and guidance

• Export and domestic volumes in land systems are expected to increase from Q2, with stronger performance anticipated in the second half.

• Export volumes from Poland, Egypt, and Australia are expected to drive growth, with seasonality favoring the second half.

• Aerospace anticipates further sales growth and higher GTF engine deliveries, though RSP operating loss may expand.

• Hanwha Systems projects continued growth in defense and ICT sales and operating profit.

• Separate net debt is expected to rise by year-end due to increased working capital and investments.