Hanwha Aerospace (012450) Q4 2025 earnings summary

Executive summary

• Achieved record sales of 26,608 Bn KRW in 2025, up 137% year-over-year, with operating profit rising 75% to 3,034 Bn KRW.

• 4Q25 sales increased 73% YoY to 8,326 Bn KRW, but operating profit declined 16% YoY to 753 Bn KRW.

• Major contracts signed in Land Systems, Aerospace, Hanwha Systems, and Hanwha Ocean, expanding global defense and aerospace presence.

Financial highlights

• 2025 net profit was 2,142 Bn KRW, down 16% YoY, with net profit margin dropping to 8.0% from 22.6%.

• 4Q25 net profit fell 54% YoY to 934 Bn KRW, with net profit margin at 11.2%.

• Total assets rose 24% YoY to 53,825 Bn KRW; cash and equivalents up 138% to 7,902 Bn KRW.

• Net debt reduced by 35% YoY to 4,493 Bn KRW.

Outlook and guidance

• Land Systems expects increased domestic and export sales in 2026, with new contracts to be reflected in backlog.

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

• Hanwha Systems and Hanwha Ocean anticipate YoY increases in sales and operating profit.