Hanwha Aerospace (012450) Q2 2025 earnings summary

Executive summary

• Sales surged 169% year-over-year in 2Q25, driven by strong growth in Land Systems and consolidation of Hanwha Ocean and Philly Shipyard sales.

• The reporting period covers the first half of 2025, with significant business expansion, restructuring, and a major spin-off.

• Major contracts and joint ventures were signed in Land Systems and Aerospace, including K9, Chunmoo, and L-SAM II deals.

• Major capital increases and public offerings were completed, raising approximately 4.2 trillion KRW, with new shares issued and listed.

• The company completed a spin-off of its security and industrial equipment business into Hanwha Vision in September 2024.

Financial highlights

• 2Q25 sales reached 6,274 Bn KRW, up 169% year-over-year and 14% sequentially.

• Consolidated revenue for H1 2025 was 11,795,180 million KRW, down from 11,240,121 million KRW in H2 2024.

• Operating profit was 864 Bn KRW in 2Q25, up 156% year-over-year and 54% sequentially.

• Net profit was 288 Bn KRW in 2Q25, up 80% year-over-year and 37% sequentially.

• Basic EPS for H1 2025 was 6,155 KRW, compared to 45,935 KRW in H2 2024.

Outlook and guidance

• Land Systems expects further increases in domestic and export sales and operating profit in the second half of 2025.

• The company expects continued growth in defense and marine segments, leveraging global demand and recent acquisitions.

• Ongoing investments in R&D and production capacity are expected to support future revenue and margin expansion.

• Aerospace anticipates higher sales and GTF engine deliveries, but RSP operating losses are expected to expand.

• Hanwha Ocean expects continued sales and operating profit growth, with commercial and offshore segments contributing.