KAI's Q3 Operating Profit Up 32% Year on Year on Strong Complete Aircraft Exports

Revenue rises 52% to KRW 1.0643 trillion
KF-21 mass production and resumption of LAH deliveries

Korea Aerospace Industries (KAI) posted a 32% increase in operating profit in the third quarter of this year compared with the same period last year, driven by expanded exports of complete aircraft and mass production of the KF-21, South Korea's homegrown fighter jet.

View of the main building at KAI headquarters. KAI

KAI said on Nov. 3 that it recorded consolidated revenue of KRW 1.0643 trillion and operating profit of KRW 79.4 billion in the third quarter of this year. These figures were up 51.6% and 31.9%, respectively, from a year earlier. Its operating margin improved to 7.5%, from 6.1% in the first quarter and 4.1% in the second quarter.

Revenue from domestic projects rose 83% year on year to KRW 493.7 billion. Deliveries of fixed-wing aircraft, including the KF-21, which completed about 10 years and six months of development and began deliveries to the Air Force in September, and the FA-50GF, drove the growth. Rotary-wing development projects, including the Marine Attack Helicopter (MAH) and Mine Countermeasure Helicopter (MCH), also contributed to the increase in revenue.

Deliveries of the Light Armed Helicopter (LAH) Miron were disrupted by delays in engine supplies, but KAI plans to resume deliveries in the fourth quarter.

Revenue from complete aircraft exports rose 78% year on year to KRW 291.4 billion. Revenue was recognized in line with progress on overseas projects, including the FA-50M for Malaysia, FA-50PL for Poland, FA-50PH for the Philippines and KT-1B for Indonesia. Revenue from the civil aircraft structures business also increased 7% to KRW 262.8 billion.

Complete aircraft exports and civil aircraft structures exports accounted for 28% and 25% of total revenue, respectively, bringing the share of overseas exports to 53%.

KAI expects to sustain its growth in the fourth quarter, supported by the full-scale start of KF-21 mass-production deliveries, the resumption of LAH deliveries and deliveries of the FA-50M to Malaysia. Its order backlog stood at KRW 26.2855 trillion at the end of the third quarter.

A KAI official said, "We expect to achieve annual revenue of more than KRW 5 trillion, supported by major mass-production and export projects in the fourth quarter as well."

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