LIG Defense&Aerospace (079550) Q1 2025 earnings summary

Executive summary

• FY25 1Q sales reached KRW 907.6 billion, up 18.9% year-over-year, driven by domestic mass production and strong export contracts.

• Operating income rose 69.6% year-over-year to KRW 113.6 billion, with an operating margin of 12.5%, up 3.7 percentage points.

• Net income increased 36.8% year-over-year to KRW 82.8 billion.

• The company maintained a robust order backlog of KRW 22.9 trillion, securing major domestic and export contracts, including in the Middle East and Asia.

• Strategic investments included the acquisition of Ghost Robotics and expansion of production and R&D infrastructure.

Financial highlights

• Q1 2025 revenue: KRW 907.6 billion (up 18.9% YoY); operating profit: KRW 113.6 billion (up 69.6% YoY); net profit: KRW 82.8 billion (up 36.8% YoY).

• Gross margin improved to 27.6% from 23.7% YoY.

• EPS for Q1 2025 was KRW 3,864, up from KRW 2,779 in Q1 2024.

• Cash and cash equivalents at quarter-end: KRW 123.0 billion.

• Net income attributable to shareholders: KRW 84.2 billion (up 39.0% YoY).

Outlook and guidance

• Order backlog at end of FY25 1Q was KRW 22.9 trillion, up KRW 2.83 trillion quarter-over-quarter.

• The company expects continued growth in domestic and export defense markets, supported by new product development and ongoing R&D and production investments.