Hanwha Systems (272210) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 increased 31% year-over-year, driven by strong defense exports and the consolidation of Hanwha Philly Shipyard.

• Operating profit declined 44% year-over-year due to losses from Hanwha Philly Shipyard.

• Net profit dropped 52% year-over-year, reflecting higher expenses and shipyard consolidation impact.

Financial highlights

• 2025 consolidated revenue reached KRW 3,664.1 billion, up 31% year-over-year.

• Operating profit was KRW 123.5 billion, down 44% year-over-year.

• Net profit was KRW 215.9 billion, a 52% decrease year-over-year.

• 4Q 2025 revenue rose 50% year-over-year to KRW 1,398.1 billion, but net profit margin turned negative at -1.7%.

Outlook and guidance

• 2026 revenue guidance: up to 20% growth expected for both Defense and ICT segments.

• Defense operating profit expected to see marginal growth due to increased self-funded R&D.

• ICT operating profit anticipated to remain solid on revenue expansion.

• Others segment expects a rebound in operating profit in 2026.