Hanwha Aerospace (012450) Q1 2025 earnings summary

Executive summary

• 1Q25 sales surged 278% year-over-year to 5,484 Bn KRW, with operating profit up 3,060% to 561 Bn KRW, and net profit up 7,902% to 209 Bn KRW, driven by strong defense and shipbuilding performance.

• Major business highlights include new MOUs in land systems and aerospace, first showcase of L-SAM at IDEX2025, and delivery of the 200th LNG carrier.

Financial highlights

• Operating profit margin rose to 10.2% from 1.2% year-over-year, but declined sequentially from 18.6%.

• Pretax profit margin increased to 4.8% year-over-year, but dropped from 43.9% in the previous quarter.

• Net profit margin improved to 3.8% year-over-year, down from 42.4% sequentially.

• Total assets grew 1% to 43,828 Bn KRW; total liabilities up 5% to 33,700 Bn KRW; equity down 11% to 10,128 Bn KRW.

Outlook and guidance

• Land Systems expects further increases in domestic and export sales and operating profit.

• Aerospace anticipates higher sales and GTF engine deliveries, but expects RSP operating loss to expand.

• Hanwha Systems and Hanwha Ocean both forecast year-over-year growth in sales and operating profit.

• Land Systems aims to expand global production and diversify regional exposure.