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, business divisions, and Hanwha Systems.

• Net profit surged 188% year-over-year to KRW 525.9 billion, reflecting improved margins and profitability.

• Pre-tax profit was KRW 554.6 billion for Q1 2026.

Financial highlights

• Total assets stood at KRW 56,542.8 billion, liabilities at KRW 39,203.1 billion, and net debt to equity ratio at 41%.

• Operating profit margin improved to 11.1% from 9.7% YoY; net profit margin increased to 9.1% from 3.3% YoY.

• Land systems Q1 sales were KRW 1,221.1 billion (+5% YoY), with domestic sales up 41% YoY and export sales down 13% YoY.

• Aerospace Division Q1 sales were KRW 661.2 billion (+25% YoY), operating profit KRW 22.6 billion.

• Hanwha Ocean Q1 sales were KRW 3,209.9 billion (+2% YoY), operating profit KRW 441.1 billion (+71% YoY).

Outlook and guidance

• Export and domestic volumes in land systems expected to increase from Q2 and in the second half, with stronger performance anticipated in H2.

• Export volumes from Poland, Egypt, and Australia expected to contribute more significantly from Q2 onward.

• 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.

• Hanwha Ocean expects slight year-over-year sales and revenue growth.