Hanwha Aerospace (012450) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in 2Q26 with sales up 47% year-over-year and operating profit up 59% year-over-year, driven by increased domestic and export volumes across all major business segments.

• Net profit surged 278% year-over-year, reflecting improved margins and operational efficiency.

• Report covers the semi-annual period ending June 30, 2026, for a diversified industrial and defense conglomerate with major operations in aerospace, defense, shipbuilding, IT services, and space systems.

• The group completed significant M&A, including the integration of Hanwha Ocean and the addition of new subsidiaries, and executed a major business split in September 2024.

• Key strategic initiatives included expansion in global defense exports, new energy trading ventures, and continued investment in R&D and production capacity.

Financial highlights

• Sales reached 9,293 Bn KRW in 2Q26, up from 6,311 Bn KRW in 2Q25 (47% YoY increase).

• Consolidated revenue for H1 2026 was KRW 15,043.9 billion, with operating income of KRW 2,004.4 billion and net income attributable to owners of the parent at KRW 897.1 billion.

• Operating profit was 1,365 Bn KRW (14.7% margin), up from 861 Bn KRW (13.6% margin) in 2Q25.

• Net profit rose to 1,081 Bn KRW (11.6% margin), up from 286 Bn KRW (4.5% margin) in 2Q25.

• Total assets grew to 58,742 Bn KRW; shareholders' equity up to 20,237 Bn KRW.

Outlook and guidance

• Land Systems expects continued growth in both domestic and export sales.

• Aerospace anticipates increased sales and GTF engine deliveries, though RSP operating loss may expand YoY.

• Hanwha Systems projects further increases in defense and ICT sales and operating profit.

• Hanwha Ocean expects YoY growth as large projects and vessel construction volumes expand.

• The group expects continued growth in defense exports, expansion in energy trading, and further integration of recent acquisitions.