Hanwha Aerospace posts record quarterly operating profit, surpassing W1tr for first time

Hanwha Aerospace announced Friday that it posted consolidated sales of 9.29 trillion won ($6.45 billion) and operating profit of 1.37 trillion won in the second quarter of this year, up 47 percent and 59 percent, respectively, from a year earlier. The quarterly operating profit surpassed 1 trillion won for the first time in the company's history.

By business segment, the land defense division posted operating profit of 533 billion won, a 2 percent increase from a year earlier. Domestically, key mass production projects — including the wheeled anti-aircraft gun Cheonho and the Cheongeom — drove the gains. Overseas, delivery schedules in Poland, Egypt and the Middle East were reflected in the results.

The land defense order backlog stood at 38.3 trillion won, incorporating an additional K9 self-propelled howitzer export contract signed with Finland in April and an additional Chunmoo multiple rocket launcher supply contract with Estonia in May.

The aerospace division returned to profit, posting operating profit of 37 billion won as military order volumes increased.

Key affiliates also delivered solid earnings. Hanwha Ocean posted operating profit of 736.1 billion won — its best quarterly result since Hanwha Aerospace acquired it — as the share of high-value vessels such as LNG carriers grew. Hanwha Systems likewise posted a record operating profit of 103.7 billion won, driven by increased supply of its flagship product, the multi-function radar.

A Hanwha Aerospace official said the company expects to sustain strong earnings in the second half of the year, backed by mass production under the second phase of the Poland K9 contract and K9 deliveries to Egypt and Australia. The official added that the company will actively participate in the government's advanced aviation engine development program, drawing on capabilities demonstrated through its recently unveiled unmanned aerial vehicle engine prototype, with the aim of strengthening domestic aviation industry self-reliance and export competitiveness.