Korea Aerospace Industries (047810) Q3 2025 earnings summary

Executive summary

• Revenue for 3Q 2025 was KRW 702.1bn, down 22.6% year-over-year from KRW 907.2bn.

• Net income for 3Q 2025 was KRW 39.0bn, down 42.6% year-over-year; YTD net income was KRW 125.2bn.

• The business spans military and civil aircraft, helicopters, UAVs, satellites, and MRO services, with a strong domestic defense focus and growing export markets.

• New orders in 3Q 2025 totaled KRW 262.4bn, with a backlog of KRW 26.2tn; YTD backlog was KRW 26.3tn.

Financial highlights

• Gross profit for 3Q 2025 was KRW 124.3bn, down 7.1% year-over-year.

• Operating profit for 3Q 2025 was KRW 60.2bn, down 21.1% year-over-year; YTD operating income was KRW 192.2bn.

• SG&A expenses increased 11.5% year-over-year to KRW 64.1bn.

• Operating margin was 8.57%, slightly up from 8.41% in 3Q 2024.

• Basic EPS for YTD 2025 was KRW 1,285, down from KRW 1,765 YoY.

Outlook and guidance

• Order backlog of KRW 26.3tn provides strong revenue visibility.

• Ongoing development of KF-21 fighter and expansion in satellite and space business expected to drive future growth.

• Management expects continued investment in R&D and production capacity.

• Forward-looking statements indicate potential risks and uncertainties that may impact future results.