Korea Aerospace Industries (047810) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue was KRW 891.8bn and operating profit KRW 74.3bn, both up year-over-year.

• H1 2024 revenue reached KRW 1.63 trillion with net income of KRW 90.7 billion, reflecting stable performance in defense and civil aerospace.

• New orders in Q2 were KRW 2,854.8bn, with a backlog of KRW 23.3tn across domestic, export, and aerostructure segments.

• The company maintains a diversified portfolio, with 46.6% of sales from fixed-wing aircraft, 15.8% from rotary-wing, 27.0% from airframe parts, and 10.7% from other businesses.

• Major customers include the Korean government (58.9% of sales), Boeing, Airbus, and export markets such as Poland.

Financial highlights

• Q2 2024 revenue was KRW 891.8bn, up from KRW 733.5bn in Q2 2023; H1 2024 operating income was KRW 122.3bn with a 7.5% margin.

• Net income improved to KRW 55.4bn in Q2 and KRW 90.7bn for H1 2024.

• Gross margin expanded to 14.9% in Q2 and was 14.1% for H1 2024.

• Basic EPS for H1 2024 was KRW 943.

• Cash and cash equivalents at period-end were KRW 1,442.9bn, up from KRW 503.1bn year-over-year.

Outlook and guidance

• 2024 full-year order target is KRW 5,914.7bn, with a cumulative backlog supporting future growth.

• Expansion into LAH mass production, KUH derivatives, KF-21 mass production, and space solutions.

• Ongoing R&D investment is 4.6% of sales, focusing on next-generation aircraft, satellites, and space launch vehicles.

• Continued focus on domestic defense programs and international aerostructure contracts.

• Government defense spending and backlog support a positive medium-term outlook.