Korea Aerospace Industries (047810) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was KRW 699.3bn, down 5.5% year-over-year, with operating profit at KRW 46.8bn, a 2.5% decrease from Q1 2024, and net income at KRW 29.2bn, a 17.0% decline.

• The company maintains a strong order backlog of KRW 24.3tn, supporting future revenue visibility.

• Major business segments include fixed-wing, rotary-wing, aerostructures, and space, with diversified domestic and export sales.

• New orders totaled KRW 239.0bn in Q1 2025.

Financial highlights

• Gross profit increased 23.1% year-over-year to KRW 120.3bn, with a gross margin of 17.2%.

• SG&A expenses rose 47.9% to KRW 73.5bn.

• Cash and cash equivalents surged to KRW 438.0bn, up 281.9% from December 2024.

• Debt-to-equity ratio increased to 411.4% from 364.7% at year-end 2024.

• Basic EPS for Q1 2025 was KRW 308, down from KRW 376 in Q1 2024.

Outlook and guidance

• Management provided forward-looking statements, noting risks and uncertainties that may impact future results.

• The company expects stable growth, supported by a robust order backlog and ongoing defense and aerospace projects.

• Guidance includes continued investment in R&D and expansion into new aerospace and space markets.

• Dividend policy targets payout of at least 25% of annual net profit (excluding one-off gains) for 2025–2027.