Hanwha Aerospace (012450) Q4 2024 earnings summary

Executive summary

• Annual revenue in 2024 reached KRW 11.25 trillion, up 43% year-on-year, with operating profit tripling to KRW 1.72 trillion, marking record highs for both metrics.

• Q4 2024 revenue was KRW 4.83 trillion, up 56% year-on-year, and operating profit was KRW 892.5 billion, more than tripling from the prior year.

• Net income for Q4 was KRW 2.05 trillion, with pre-tax income at KRW 2.12 trillion.

• Significant growth was driven by Land Systems and Hanwha Systems, while the Aerospace segment faced continued operating losses.

Financial highlights

• Net profit for 2024 rose 161% year-on-year to KRW 2.55 trillion; 4Q24 net profit up 938% year-on-year to KRW 2.05 trillion.

• Operating profit margin improved to 15.3% for 2024 (+7.8%p YoY); 4Q24 margin at 18.5% (+9.5%p YoY).

• Pretax profit for 2024 increased 134% year-on-year to KRW 2.65 trillion; 4Q24 pretax profit up 864% year-on-year.

• Total assets at year-end were KRW 42.9 trillion, liabilities KRW 31.9 trillion, and net debt ratio increased to 64%.

• Land Systems Q4 revenue grew 75% year-on-year to KRW 3.36 trillion, with operating profit up 172% to KRW 869.8 billion.

Outlook and guidance

• Land Systems revenue is expected to grow by approximately 20% in 2025, with export volumes and domestic mass production as key drivers.

• Export share in Land Systems is projected to increase further in 2025, with Poland K9 and Chunmoo deliveries exceeding 2024 levels.

• Aerospace division anticipates revenue growth and profit improvement in 2025, though GTF RSP-related losses may rise.

• Hanwha Systems projects further sales and operating profit growth year-over-year.

• CapEx for 2025 is projected at KRW 500-600 billion, including a new facility in Poland.