Hanwha Systems (272210) Q2 2026 earnings summary

Executive summary

• Achieved record revenue and profit growth in 2Q 2026, driven by strong defense exports and ICT captive sales.

• Revenue for H1 2026 was KRW 1,924.7 billion, with operating income of KRW 137.9 billion and a net loss of KRW 43.0 billion, reflecting a downturn from the previous year’s profit.

• Defense accounted for 60.9% of sales, ICT for 18.7%, and other businesses for 20.5%.

• First deployment of proprietary Engine Control System (ECS) on KDX-I destroyer, marking a technological milestone.

• Included in DJBIC (S&P Global) index as Korea's first defense company, highlighting ESG leadership.

Financial highlights

• Consolidated revenue rose 45% year-over-year and 39% sequentially to KRW 1,117.6 billion in 2Q 2026.

• H1 2026 revenue: KRW 1,924.7 billion (up from KRW 1,458.3 billion in H1 2025).

• Operating profit surged 219% year-over-year and 202% sequentially to KRW 103.7 billion in 2Q 2026.

• Net profit increased 14% year-over-year to KRW 52.7 billion in 2Q 2026, reversing a loss in the previous quarter.

• Net loss for H1 2026 was KRW 43.0 billion, mainly due to discontinued operations and financial costs.

Outlook and guidance

• Ongoing dividend policy aims for a minimum payout of KRW 350 per share through 2027, with 2025 targeting KRW 500 per share.

• The company expects continued growth in defense and ICT, supported by a robust order backlog and new contracts.

• Focus on enhancing shareholder value through stable dividends and periodic policy announcements.

• Management is focused on stable capital allocation, risk management, and expanding global market presence.