Hanwha Systems (272210) Q2 2025 earnings summary

Executive summary

• Revenue increased 12% year-over-year and 11% sequentially in 2Q 2025, driven by the consolidation of Philly Shipyard, with H1 2025 revenue reaching KRW 1,458.3 billion, up from KRW 1,231.2 billion in H1 2024.

• Net profit rose 74% year-over-year and 15% sequentially in 2Q 2025, with H1 2025 net income at KRW 88.0 billion, a 13.7% increase year-over-year.

• Operating profit declined 60% year-over-year and 42% sequentially in 2Q 2025, while H1 2025 operating income was KRW 91.6 billion, down from KRW 129.9 billion in H1 2024.

• The company maintained robust liquidity and capital structure, with total assets at KRW 8,042.9 billion and a debt-to-equity ratio of 111.3%.

• Gross profit margin improved to 14.1% in H1 2025 from 13.5% in H1 2024.

Financial highlights

• 2Q 2025 revenue: KRW 768.2bn (+12% YoY, +11% QoQ); H1 2025 revenue: KRW 1,458.3bn.

• Operating profit: KRW 33.5bn in 2Q 2025 (-60% YoY, -42% QoQ); H1 2025 operating income: KRW 91.6bn.

• EBIT: KRW 78.4bn in 2Q 2025 (+489% YoY, +99% QoQ).

• Net profit: KRW 47.0bn in 2Q 2025 (+74% YoY, +15% QoQ); H1 2025 net income: KRW 88.0bn.

• Basic EPS for H1 2025 was KRW 380, up from KRW 169 in H1 2024.

Outlook and guidance

• Minimum dividend of KRW 350 per share planned for 2025–2027 to ensure stability.

• Dividend policy to be announced in advance, with changes to record date for predictability.

• The company expects continued growth in defense exports and ICT digital transformation projects.

• Ongoing investments in R&D and capacity expansion are planned to support future growth.

• Management highlighted a strong order backlog of KRW 10.4 trillion as of June 2025.