LIG Defense&Aerospace (079550) Q1 2026 earnings summary

Executive summary

• Sales for Q1 2026 reached KRW 1,167.9 billion, up 28.7% year-over-year and down 16.9% sequentially from FY25 4Q.

• Operating income surged 56.1% year-over-year to KRW 171.1 billion, with a margin of 14.7%.

• Net income attributable to shareholders rose 69.9% year-over-year to KRW 139.9 billion.

• The report covers Q1 2026, highlighting defense and aerospace operations, recent corporate changes, and financial performance.

• Significant overseas sales growth, notably from the UAE MSAM-II program and new subsidiaries in the US.

Financial highlights

• Gross margin improved to 21.7% from 19.1% year-over-year.

• Basic EPS for Q1 2026 was KRW 6,405, up from KRW 3,778 in Q1 2025.

• Overseas sales accounted for 34.7% of total sales, up from 20.4% a year ago.

• Operating loss related to Ghost Robotics was approximately KRW 13 billion.

• Net income increased 69.4% year-over-year to KRW 135.4 billion.

Outlook and guidance

• First export contract for the SAAM missile system signed with the Royal Malaysian Navy, valued at approximately KRW 140 billion.

• Stable order backlog of KRW 25.3 trillion at Q1-end, with expectations for continued growth in defense exports and domestic contracts.

• Dividend policy targets a payout ratio of 25% of net income, with a minimum dividend of KRW 500 per share.

• Anticipated additional orders under Malaysia's naval fleet-modernization program.

• Foundation established for future multi-layered naval air-defense system exports.