Korea Aerospace Industries (047810) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was KRW 828.3bn, down 7.1% year-over-year, with operating profit up 14.7% to KRW 85.2bn and net income up 3.1% to KRW 57.1bn; H1 2025 revenue was KRW 1,527.6bn and net profit KRW 86.2bn, both down year-over-year.

• New orders in Q2 2025 reached KRW 3,162.2bn, with a robust backlog of KRW 26.7tn across domestic, export, and aerostructure segments.

• Major business segments include fixed-wing, rotary-wing, aerostructure, and space, with ongoing R&D and global market expansion.

• The company is not classified as an SME and holds a stable AA- credit rating.

Financial highlights

• Gross profit improved 16.2% year-over-year to KRW 154.6bn in Q2 2025; gross margin for H1 2025 was 18.0% (down from 18.7% YoY).

• SG&A expenses rose 17.9% year-over-year to KRW 69.3bn.

• Total assets grew 17% since December 2024 to KRW 9,393.8bn; liabilities increased 21.1% to KRW 7,629.2bn.

• Cash and cash equivalents rose 69.7% to KRW 194.6bn compared to December 2024, but H1 2025 cash was KRW 84.5bn (down from KRW 114.7bn YoY).

• Basic EPS for H1 2025 was KRW 887 (down from KRW 1,765 YoY).

Outlook and guidance

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

• Order backlog remains robust at KRW 26.7tn, providing visibility for future revenue.

• The company is expanding into new business areas, including space and advanced mobility, and expects continued growth in defense and civil aerospace.

• Focus on R&D investment and international market expansion.