Korea Aerospace Industries (047810) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 51.6% YoY to KRW 1,064.3bn and operating profit increased 31.9% to KRW 79.4bn; net income fell 51.2% to KRW 19.0bn.

• Export-led Q3 orders reached KRW 1,580.6bn, up 502.4% YoY; September backlog was KRW 26,285.5bn on a separate basis. 9M operating cash outflow was KRW 486.1bn.

Financial highlights

• 9M consolidated revenue was KRW 3,324.9bn vs KRW 2,229.7bn in 9M 2025; gross profit was KRW 431.2bn vs KRW 399.1bn.

• 9M operating income was KRW 195.0bn vs KRW 192.2bn; net income was KRW 97.4bn vs KRW 125.2bn.

• Q3 revenue was KRW 1,064.3bn vs KRW 702.1bn; operating income was KRW 79.4bn vs KRW 60.2bn, and net income was KRW 19.0bn vs KRW 39.0bn.

• 9M consolidated operating cash outflow was KRW 486.1bn, compared with KRW 741.9bn outflow in 9M 2025; financing cash inflow was KRW 931.8bn.

• Q3 gross margin was 15.9%, operating margin 7.5% and net margin 1.8%, down 1.8, 1.1 and 3.8 percentage points YoY, respectively.

Outlook and guidance

• FY26 revenue guidance is KRW 5,730.6bn; 9M revenue of KRW 3,324.8bn represented 58.0% progress.

• FY26 new-order guidance is KRW 10,438.3bn; 9M orders of KRW 2,210.0bn represented 21.2% progress.

• Additional orders and major domestic and export contracts are targeted for 4Q26; LAH deliveries are scheduled to resume in 4Q26.

• Planned 2026–28 investment totals KRW 654.4bn for buildings, machinery, IT/equipment and tooling, with stated aims including production efficiency and project execution.

• KF-21 is moving from system development toward mass production; development priorities include launch vehicles, satellites, UAVs and crewed-uncrewed systems.