Korea Aerospace Industries (047810) Q1 2026 earnings summary

Executive summary

• New orders rose 29.4% year-over-year to KRW 309.3bn, with consolidated revenue of KRW 1,092.7bn and net profit of KRW 41.3bn in Q1 2026.

• Operating profit grew 43.4% year-over-year to KRW 67.1bn.

• Main business areas include military and civil aircraft, helicopters, satellites, and aerospace components, with significant R&D investment and a robust order backlog of KRW 26.6 trillion.

• Major customers are the Korean government (52% of sales), Poland and other export markets (28%), and global OEMs like Boeing and Airbus (19%).

Financial highlights

• Revenue increased 56.3% year-over-year to KRW 1,092.7bn, with growth across all business segments.

• Gross profit increased 13.7% year-over-year to KRW 136.8bn, though gross margin declined from 17.2% to 12.5%.

• SG&A expenses decreased 5.3% year-over-year to KRW 69.6bn.

• Cash and cash equivalents rose 166.9% sequentially to KRW 162.6bn.

• Debt-to-equity ratio increased to 474% from 446.6% in the previous quarter.

Outlook and guidance

• 2026 new order guidance set at KRW 10,438.3bn, with a focus on securing the first export contract for KF-21 and expanding exports for KUH and KT-1 platforms.

• Revenue guidance for 2026 is KRW 5,730.6bn, driven by large-scale domestic production and export programs.

• Order backlog remains strong at KRW 26.6 trillion, supporting future revenue.

• Management continues to focus on R&D, supply chain stability, and expanding export markets.

• Dividend policy targets payout of at least 25% of annual net profit for 2025–2027.