Hanwha Aerospace Surpasses KRW 1 Trillion in Quarterly Operating Profit for the First Time, Driven by Defense and Subsidiary Growth

Q2 Sales Reach KRW 9.2929 Trillion, Operating Profit at KRW 1.3655 Trillion
Hanwha Ocean and Hanwha Systems Achieve Record-High Results

Hanwha Aerospace achieved its highest-ever quarterly operating profit in the second quarter of this year, driven by an expansion of ground defense exports and strong performances from its subsidiaries. The continued growth of both the ground defense and aerospace businesses, as well as record-breaking results from Hanwha Ocean and Hanwha Systems, provided significant support for the company's improved performance.

On July 31, Hanwha Aerospace announced that its consolidated sales for the second quarter of this year reached KRW 9.2929 trillion, with an operating profit of KRW 1.3655 trillion. Compared to the same period last year, sales increased by 47% and operating profit rose by 59%. This is the first time the company has surpassed KRW 1 trillion in quarterly operating profit.

The ground defense sector posted sales of KRW 2.1075 trillion and an operating profit of KRW 533 billion. In Korea, increased orders for key mass-production projects such as the Cheonho wheeled anti-aircraft gun and Cheongeom missile contributed to growth, while overseas, scheduled deliveries to countries like Poland, Egypt, and the Middle East proceeded smoothly, boosting performance.

The order backlog expanded to KRW 38.3 trillion, reflecting the additional export contract for K9 self-propelled howitzers to Finland in April and the supplementary supply contract for Cheonmu multiple rocket launchers to Estonia in May.

The aerospace division returned to profitability, supported by increased military orders, recording sales of KRW 760 billion and an operating profit of KRW 37 billion.

Subsidiaries also contributed to the improved results. Hanwha Ocean recorded its highest-ever quarterly sales and operating profit, with sales of KRW 5.4432 trillion and operating profit of KRW 736.1 billion, as the share of high-profit vessels such as LNG carriers increased. Hanwha Systems also achieved record results, with sales of KRW 1.1176 trillion and operating profit of KRW 103.7 billion, driven by growth in defense exports such as multifunction radar (MFR).

Hanwha Aerospace expects to maintain strong results in the second half of the year, supported by the second execution contract for mass production of K9 artillery for Poland and planned deliveries of K9 artillery to Egypt and Australia. The company also plans to actively participate in the government's advanced aircraft engine development project, using the recently released prototype of its unmanned aerial vehicle engine, to strengthen domestic aerospace independence and export competitiveness.

A representative from Hanwha Aerospace stated, "We expect to maintain strong results in the second half, based on the mass production of the second execution contract for K9 artillery for Poland and deliveries of K9 artillery to Egypt and Australia," and added, "We will actively participate in the development of advanced aircraft engines, leveraging the technological capabilities we have demonstrated through the unmanned aerial vehicle engine prototype."

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