LIG Defense&Aerospace (079550) Q2 2024 earnings summary

Executive summary

• LIG Nex1 is a leading defense system integrator specializing in advanced weapon systems and military-grade electronics, serving Army, Navy, and Air Force clients with a broad product portfolio.

• The company emphasizes R&D, with 57.5% of its workforce in R&D roles and over half holding advanced degrees.

• Sales for FY24 2Q reached KRW 604.7 billion, up 10.8% year-over-year, with cumulative sales up 25.2% to KRW 1,368.2 billion.

• Operating income for 2Q was KRW 49.1 billion, a 22.2% increase year-over-year; net income rose 44.5% to KRW 45.7 billion.

• Order backlog at the end of FY24 2Q stood at KRW 19 trillion, with new orders of KRW 362.5 billion secured during the quarter.

Financial highlights

• FY2024 2Q sales reached KRW 604.7 billion, with accumulative sales at KRW 1,368.2 billion.

• Operating income for FY2024 2Q was KRW 49.1 billion, and net income was KRW 45.7 billion.

• EBITDA for FY2024 2Q stood at KRW 67.7 billion.

• Gross profit for FY2024 2Q was KRW 91.8 billion, with a gross margin of approximately 15.2%.

• Cumulative net income for FY24 reached KRW 106.2 billion, up 16.3% year-over-year.

Outlook and guidance

• Order backlog as of Dec. 2023 was KRW 19.6 trillion, about 8.5 times FY23 sales, supporting stable growth.

• Expectation to maintain backlog at 3–4 times annual sales for the next five years.

• Anticipated growth in export sales mix, with over 50% of backlog from export programs.