Hanwha Aero's Q2 Overseas Sales Surge 5x... "Defense Synergy"

"Driving Export Performance of Poland K9 and Cheonmu"
Defense Orders Backlog Exceeds Approximately 30 Trillion Won

Hanwha Aerospace's defense division has entered a growth trajectory. With the global bestseller self-propelled howitzer K9 and the recently increasing demand for the multiple launch rocket system Cheonmu, exports have fully commenced, resulting in overseas sales in the second quarter increasing more than fivefold compared to the same period last year. Overall operating profit also recorded an all-time high on a quarterly basis.

Hanwha Aerospace's K9 self-propelled howitzer (right) and K10 ammunition carrier (Provided by Hanwha Aerospace)

Hanwha Aerospace announced on the 31st that it recorded consolidated sales of 2.786 trillion KRW and operating profit of 358.8 billion KRW in the second quarter. Compared to the second quarter of last year, when Hanwha Defense and Hanwha Defense Systems merged into an integrated corporation, sales increased by 46% and operating profit by 357%, showing the emergence of integration synergy.

By business segment, the defense division achieved sales of 1.3325 trillion KRW and operating profit of 260.8 billion KRW, increasing by 122% and 1089% respectively compared to the same period last year. Exports to Poland, which temporarily decreased in the first quarter, increased in the second quarter with the supply of six K9 units and eighteen Cheonmu units, resulting in overseas sales (761.4 billion KRW) increasing more than fivefold compared to the same period last year.

The aerospace business recorded sales of 562.4 billion KRW, a 40% increase compared to the same period last year, and operating profit of 7.5 billion KRW, a 36% increase. This was influenced by the increase in aircraft engine parts sales due to the rising demand for aircraft maintenance following the end of COVID-19 and the continuous increase in overseas travelers.

Hanwha Vision recorded sales of 315.9 billion KRW, an 11% increase compared to the same period last year, as CCTV sales continued to grow in the North American and European markets. Operating profit was 38.9 billion KRW, a 15% decrease compared to the same period last year due to a decline in sales of high-margin products.

A Hanwha Aerospace official stated, "At the end of the second quarter, the total order backlog was approximately 30.3 trillion KRW. We will continue to expand overseas markets in the second half of the year and stably supply existing volumes to solidify our position as an export company whose exports exceed domestic sales for the first time this year."