Hanwha Aero Reports Operating Profit of 704.9 Billion KRW Last Year, Up 76% Year-on-Year

Impact of Strong Defense Export Performance

Hanwha Aerospace achieved its highest-ever performance last year, driven by strong exports in the defense sector.

Hanwha Aerospace announced on the 23rd that its consolidated operating profit for last year was tentatively estimated at 704.9 billion KRW, a 76.1% increase compared to the previous year.

Sales rose 32.7% year-on-year to 9.3697 trillion KRW. Net profit surged 576.9% to 992.3 billion KRW. Both sales and net profit reached record highs.

Operating profit in the fourth quarter of last year was 289.5 billion KRW, up 79.6% from the same period the previous year. Sales increased 32.6% to 3.4424 trillion KRW, and net profit skyrocketed 2350.6% to 213.2 billion KRW.

Breaking down last year’s performance by business segment, the defense sector saw sales increase 102% to 4.1338 trillion KRW and operating profit rise 172% to 572.7 billion KRW, supported by strong export growth. This was due to an expanded export portfolio including ground weapon systems such as the K-9 self-propelled howitzer and Cheonmu, as well as supplying modular charge system (MCS) to the UK’s BAE Systems.

In the aerospace sector, sales increased 18% year-on-year to 1.6105 trillion KRW, while operating profit fell 97% to 400 million KRW. Sales grew due to increased engine maintenance and new parts supply driven by the recovery of civil aviation demand. However, operating profit significantly declined due to losses related to the 'Geared Turbofan' (GTF) engine, in which the company participates as part of an international joint development project (RSP).

Subsidiary Hanwha Vision recorded sales of 1.0538 trillion KRW and operating profit of 137.1 billion KRW. The company explained this was due to expanding its closed-circuit television (CCTV) business beyond North America into Europe.

Hanwha Aerospace also announced that it has decided to pay a cash dividend of 1,800 KRW per common share to enhance shareholder value, with plans to implement it after approval at the shareholders’ meeting next month. This dividend represents an 80% increase compared to the previous year.

Hanwha Aerospace stated, "This year will be the first year in which exports surpass domestic sales on an annual basis by expanding exports to the global market. We will leap forward as a truly export-oriented global company."

This content was produced with the assistance of AI translation services.