Hanwha Corporation (A000880) Q3 2025 earnings summary

Executive summary

• Consolidated sales rose 46% year-over-year to KRW 17.8T, driven by defense exports and shipbuilding.

• Operating profit surged 156% year-over-year to KRW 1.34T, with strong contributions from non-financial subsidiaries.

• Net income increased 444% year-over-year to KRW 1.03T, reflecting robust performance in defense, shipbuilding, and insurance.

• Achieved consolidated revenue of ₩53.7 trillion for the first nine months of 2025, with net income of ₩1.76 trillion, reflecting growth across multiple business segments.

• Operating profit reached ₩3.75 trillion, up from ₩2.42 trillion in the prior year, driven by improved performance in explosives, shipbuilding, and financial services.

Financial highlights

• Separate revenue declined 14.4% year-over-year to KRW 1.08T; operating profit rose 10.4% to KRW 65B.

• Consolidated non-financial sales up 55% year-over-year; financial sales up 32%.

• Revenue for the first three quarters of 2025 was ₩53.7 trillion, down slightly from ₩55.6 trillion in 2024, mainly due to lower sales in the photovoltaic and construction segments.

• Gross profit margin improved to 14.4% from 12.1% year-over-year.

• Earnings per share (EPS) for the period was ₩5,763, up from ₩3,920 in the previous year.

Outlook and guidance

• Defense and aerospace expected to maintain solid order backlog and export growth.

• Shipbuilding profitability projected to improve in merchant segment.

• Renewable energy faces Q4 losses due to U.S. customs delays and lower shipments.

• Insurance profit to improve through stable amortization and asset management.

• The group expects continued growth in shipbuilding, defense, and financial services, with ongoing investments in renewable energy and global expansion.