Korea Aerospace Industries (047810) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw continued sales growth across all business segments despite some delivery schedule adjustments.

• Revenue for H1 2026 was KRW 2.22 trillion, with net income of KRW 78.3 billion, reflecting a significant year-over-year decline in both sales and profit.

• Order backlog remains robust at KRW 25.75 trillion, supporting future revenue visibility.

• The business is diversified across fixed-wing, rotary-wing, aerostructure, and satellite/other segments, with a strong focus on defense contracts and growing export markets.

• Major domestic and export contract wins are expected in the second half, supporting future order backlog.

Financial highlights

• Q2 2026 revenue rose 41.0% year-over-year to ₩1,167.9 billion.

• H1 2026 consolidated revenue: KRW 2.26 trillion (down from KRW 3.70 trillion in H1 2025).

• Operating income dropped 43.1% year-over-year to ₩48.4 billion in Q2 2026; H1 2026 operating income was KRW 115.6 billion (down from KRW 269.2 billion in H1 2025).

• Net income decreased 35.2% year-over-year to ₩37.0 billion in Q2 2026; H1 2026 net income was KRW 78.3 billion (down from KRW 187.3 billion in H1 2025).

• Gross profit margin declined from 18.7% to 10.7% year-over-year in Q2; H1 2026 gross margin was 11.7% (down from 16.4% in H1 2025).

Outlook and guidance

• Full-year revenue guidance is ₩5,730.6 billion, with 39.4% achieved by Q2.

• Order backlog of KRW 25.75 trillion provides strong revenue visibility.

• Continued focus on export growth, especially in Poland, Southeast Asia, and the Middle East.

• Ongoing investment in R&D and production capacity to support new programs and international expansion.

• Annual sales growth is expected to remain robust, driven by new domestic deliveries.