LIG Defense&Aerospace (079550) Q4 2025 earnings summary

Executive summary

• FY25 4Q sales reached KRW 1,404.8 billion, up 20.3% year-over-year, with cumulative FY25 sales at KRW 4,306.9 billion, a 31.5% increase year-over-year.

• Operating income for FY25 4Q was KRW 42.1 billion, down 23.8% year-over-year, while cumulative operating income rose 44.5% to KRW 322.9 billion.

• Net income for FY25 4Q was negative KRW 26.0 billion, a sharp decline from KRW 65.8 billion in FY24 4Q, mainly due to a one-off impairment related to Ghost Robotics.

• Order backlog at the end of FY25 4Q stood at KRW 26.23 trillion, with new orders in 4Q totaling KRW 4.16 trillion.

Financial highlights

• FY25 4Q sales increased by 20.3% year-over-year; cumulative sales up 31.5%.

• FY25 4Q operating income decreased by 23.8% year-over-year; cumulative operating income up 44.5%.

• FY25 4Q net income dropped by 139.5% year-over-year to negative KRW 26.0 billion; cumulative net income nearly flat year-over-year.

• Net income attributable to shareholders for FY25 4Q fell 90.8% year-over-year.

Segment performance

• Precision Guided Munitions (PGM) sales rose 38.1% year-over-year, driven by MSAM-II and SAAM programs.

• C41 segment sales increased 17.2% year-over-year, supported by TMMR system and CIWS-II R&D.

• AEW segment sales up 19.0% year-over-year, with contributions from KF-21 and Naval EW System.

• ISR segment sales declined 17.4% year-over-year due to completion of several mass production programs.

• Overseas sales benefited from UAE MSAM-II and Indonesian Police programs; Ghost Robotics contributed KRW 5.5 billion in 4Q.