Hanwha Aerospace (012450) Q4 2024 earnings summary

Executive summary

• Annual revenue for 2024 reached KRW 11.25 trillion, up 43% year-over-year, with operating profit tripling to KRW 1.72 trillion, surpassing KRW 10 trillion in revenue and KRW 1 trillion in operating profit for the first time.

• Q4 2024 revenue was KRW 4.83 trillion, up 56% year-over-year, and operating profit was KRW 892.5 billion, more than tripling from the prior year.

• Growth was driven by strong performance in Land Systems and Hanwha Systems, with significant contributions from overseas defense exports, while Aerospace segment faced continued operating losses.

Financial highlights

• Net profit for 2024 rose 161% year-over-year to KRW 2.05 trillion; Q4 net profit up 938% year-over-year to KRW 2.05 trillion.

• Total assets at year-end were KRW 42.9 trillion, liabilities KRW 31.9 trillion, and net debt ratio increased to 64%.

• Land Systems Q4 revenue grew 75% year-over-year to KRW 3.36 trillion, with operating profit up 172% to KRW 869.8 billion.

• Aerospace segment Q4 revenue rose 39% year-over-year to KRW 595.2 billion, but posted an operating loss of KRW 46 billion due to GTF RSP-related costs.

• Hanwha Systems Q4 revenue increased 19% year-over-year to KRW 933.5 billion, with operating profit up 60% to KRW 29.1 billion.

Outlook and guidance

• Land Systems revenue expected to grow ~20% in 2025, with export share rising and deliveries to Poland, Australia, and Egypt increasing.

• Margins for Land Systems expected to remain stable in 2025, with operating profit growth in line with revenue.

• Aerospace division anticipates revenue and profit improvement in 2025, though GTF RSP-related losses may rise.

• Hanwha Systems projects further sales and operating profit growth year-over-year.