Hanwha Aerospace (012450) Q2 2025 earnings summary

Executive summary

• Sales surged 169% year-over-year in 2Q25, driven by strong growth in Land Systems and consolidation of Hanwha Ocean and Philly Shipyard sales.

• Operating profit rose 156% year-over-year, with Land Systems leading gains, while Aerospace and Hanwha Systems saw profit declines due to one-off costs and shipyard expenses.

• Net profit increased 80% year-over-year, with operating profit margin at 13.8%.

• Major contracts and joint ventures were signed in Land Systems and Aerospace, including K9, Chunmoo, and L-SAM II deals.

Financial highlights

• 2Q25 sales reached 6,274 Bn KRW, up 169% year-over-year and 14% sequentially.

• Operating profit was 864 Bn KRW, up 156% year-over-year and 54% sequentially.

• Net profit was 288 Bn KRW, up 80% year-over-year and 37% sequentially.

• Operating profit margin was 13.8%, down 0.6 percentage points year-over-year.

• Pretax profit margin improved to 7.5%, up 2.4 percentage points year-over-year.

Outlook and guidance

• Land Systems expects further increases in domestic and export sales and operating profit in the second half of 2025.

• Aerospace anticipates higher sales and GTF engine deliveries, but RSP operating losses are expected to expand.

• Hanwha Systems projects growth in defense and ICT sales and operating profit year-over-year.

• Hanwha Ocean expects continued sales and operating profit growth, with commercial and offshore segments contributing.