Hanwha Aerospace (012450) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated sales reached KRW 5,751 billion, up 5% year-on-year, with operating profit at KRW 638.9 billion, up 21% year-on-year, driven by Hanwha Ocean, Aerospace, and higher divisional sales.

• Net profit for Q1 was KRW 525.9 billion, up 188% year-on-year, with pre-tax profit at KRW 554.6 billion.

• The company maintains a diversified portfolio in aerospace, defense, marine, IT services, and space, with significant domestic and export sales contributions.

• Growth was supported by strong domestic sales and significant contributions from Hanwha Systems and Hanwha Ocean.

• Major investments in production capacity, R&D, and global expansion continue, with robust order backlogs and ongoing capital projects.

Financial highlights

• Total assets stood at KRW 56,543 billion and total liabilities at KRW 39,203.1 billion.

• Operating profit margin improved to 11.1% from 9.7% year-on-year.

• Net profit margin increased to 9.1% from 3.3% year-on-year.

• Net income attributable to owners of parent was KRW 260.7 billion, up from KRW 59.5 billion in Q1 2025.

• Basic and diluted EPS for Q1 2026 were KRW 4,999, compared to KRW 1,299 in Q1 2025.

Outlook and guidance

• Export and domestic volumes in land systems are expected to increase from Q2, with stronger performance anticipated in the second half.

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

• Hanwha Systems projects continued growth in defense and ICT sales and operating profit.

• Expansion into global markets and new business areas, including unmanned systems and green marine solutions, is anticipated to drive future revenue.

• Separate net debt is expected to rise by year-end due to increased working capital and investments.