Samil PwC: "Hanwha Aero Records Highest Revenue Growth Among Top 100 Defense Companies"

Annual Global A&D Industry Report Released

Hanwha Aerospace recorded the highest growth rate in revenue among the top 100 global Aerospace & Defense (A&D) companies.

According to the annual global A&D industry report published by Samil PricewaterhouseCoopers, Hanwha Aerospace ranked 14th among the 100 companies based on revenue. Last year, Hanwha Aerospace posted revenue of 18.712 billion dollars (approximately 28.03932 trillion won), marking a 126.9% increase compared to 2024. This is the highest growth rate among all 100 companies. Its operating profit reached 2.134 billion dollars, a 68% increase from 1.27 billion dollars in 2024. Korea Aerospace Industries (KAI) ranked 65th. KAI's revenue was 2.602 billion dollars, down 2.3% from 2024, but its operating profit rose 7.1% to 189 million dollars.

Last year, the total revenue of the top 100 global A&D companies reached 1.045 trillion dollars, up 13.8% year-on-year, surpassing the 1 trillion dollar mark for the first time. Operating profit also increased by 46.4% to 124.4 billion dollars, reaching an all-time high.

The report identified production shortages as the key challenge currently facing the A&D industry. In the defense sector, the prolonged war in Ukraine and ongoing conflicts in the Middle East have led to a rapid depletion of weapon stockpiles in major countries, intensifying the competition to expand production capacity. With drone, autonomous weapon, and artificial intelligence (AI)-based combat systems emerging as core assets on the future battlefield, global defense companies are accelerating both production expansion and the acquisition of advanced technologies.

Major Performance of the Top 100 Global Aerospace and Defense Companies. Samil PwC

Samil PricewaterhouseCoopers assessed that this global industry environment presents significant opportunities for Korean companies. The report emphasized, "While global demand for weapons is surging, production capacity is failing to keep pace. This is opening up new opportunities for Korea's defense industry, which has price competitiveness, the ability to deliver quickly, and strength in supplying expendable weapons, to rise as one of the world's top four defense powerhouses."

Strategic directions recommended for Korean companies include: expanding country-specific support and localization, establishing integrated power system-based package export models, strengthening R&D in advanced defense science and technology and rapidly adopting civilian technologies, strategically utilizing offset trades, reinforcing security systems related to defense exports, and fostering talent and technology ecosystems. In particular, regarding the space sector, the report stated, "Falling behind in the space race will inevitably increase Korea's reliance on foreign satellites for both security and economic reasons. As a latecomer, Korea needs to focus selectively on reusable launch vehicles, ultra-small satellite constellations, and satellite data services, considering the limitations of its capital resources."

Tae Sung Kim, Leader (Partner) of the Defense Industry Center at Samil PricewaterhouseCoopers, said, "The competitive landscape of the global defense market is rapidly shifting toward expanding production capacity and acquiring advanced technologies. Based on hardware platform competitiveness, strengthening capabilities in advanced technologies such as AI, drones, cyber, and space, while simultaneously responding to global regulations and modernizing supply chains, will be key tasks for Korea's defense industry to emerge as a global security powerhouse."

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