Hanwha Systems (272210) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue rose 30% YoY to KRW 831.6bn and operating profit rose 60% to KRW 99.1bn; net profit fell 97% to KRW 3.8bn. Revenue and operating profit declined 6% and 19% QoQ.

• 9M revenue was KRW 2,363,668m and operating income KRW 302,429m, both above the prior-year period; net loss of KRW 39,172m included a KRW 161,506m discontinued-operations loss.

Financial highlights

• Q3 EBIT was KRW 133.7bn, down 1% YoY and up 86% QoQ; net profit was down 97% YoY and 93% QoQ.

• 9M gross profit was KRW 482,868m versus KRW 343,624m; profit from continuing operations was KRW 122,334m versus KRW 300,655m.

• Cash and cash equivalents were KRW 437,025m at Sep. 30, 2026, versus KRW 325,484m at year-end 2025; total assets were KRW 9,971,712m.

• Debt ratio was 140.71% at Sep. 30, 2026, versus 106.50% at year-end 2025; borrowings were KRW 2,166.0bn, up KRW 691.6bn YoY.

Segment performance

• Defense Q3 revenue was KRW 617.4bn, up 28% YoY and down 12% QoQ; operating profit was KRW 76.0bn, up 53% YoY and down 27% QoQ, with a 12.3% margin.

• ICT Q3 revenue was KRW 212.6bn, up 37% YoY and 14% QoQ; operating profit was KRW 24.0bn, up 100% YoY and 16% QoQ, with an 11.3% margin.

• 9M Defense revenue was KRW 1,789,216m and operating income KRW 248,736m; ICT revenue was KRW 572,165m and operating income KRW 58,116m, all above the prior-year period.

• Defense profit improvement reflected higher export revenue; ICT growth reflected captive sales and increased system-integration project revenue.