Hanwha Aerospace Secures KRW 3 Trillion Operating Profit, Targets 25% Annual Growth Through 2030

[Korea Financial Times, Shin Haeju] Hanwha Aerospace recorded its best-ever performance last year. The company presented guidance to sustain 20-25% annual growth through 2030, with ground defense expected to account for the largest share.

During an earnings conference call on the 9th, Hanwha Aerospace announced consolidated revenue of KRW 26.6078 trillion and operating profit of KRW 3.0345 trillion for last year. These figures represent year-on-year increases of 137.7% and 75.2%, respectively.

The ground defense division posted revenue of KRW 8.1331 trillion and operating profit of KRW 2.0129 trillion last year, surpassing KRW 2 trillion in operating profit for the first time in history.

The company completed delivery of all 212 units just three years after signing the first execution contract for K9 self-propelled howitzers, and also finished delivering six units from the second execution contract, demonstrating its delivery capabilities.

This year, the company plans to deliver more than 30 K9 howitzers and over 40 Chunmoo launcher units to Poland. K9 deliveries to Australia are expected to gain momentum starting this year, and with 40-50% of total production volume for Egypt also scheduled for delivery, export momentum is expected to diversify.

Regarding the 16% year-on-year decrease in fourth-quarter operating profit, the company cited one-time costs and an increased share of domestic sales. One-time costs totaling KRW 95 billion were recognized, including approximately KRW 55 billion in business-related provisions and about KRW 40 billion in costs deferred to the second half.

A company official explained, "In terms of product mix, the biggest impact came from a 2 percentage point increase in domestic sales and a 2 percentage point decrease in exports."

The aerospace division recorded revenue of KRW 2.5131 trillion last year, marking three consecutive years of growth. Notably, annual sales of GTF engines surpassed 1,000 units, securing a long-term revenue structure in the aftermarket where engine maintenance demand arises.

Subsidiary Hanwha Ocean recorded revenue of KRW 12.6884 trillion and operating profit of KRW 1.1091 trillion.

For the space business, key objectives include the fifth Nuri rocket launch scheduled for the third quarter this year and development of a propulsion system for a lunar lander by 2032.

Regarding site selection for a U.S. MCS (Modular Charge System) smart factory, a company official stated, "We are reviewing various options for entering the U.S. ammunition business from multiple angles and carefully examining the conditions for site selection."

Shin Haeju (hjs0509@fntimes.com)