Third-quarter earnings for 2026
Sales surpass 1 trillion won
Net profit plunges 51% year-on-year
Down more than 70% from two years ago
Operating profit rises but margin retreats
Korea Aerospace Industries' net profit in the third quarter of this year fell more than 70 percent from two years ago, the company said Tuesday.
KAI reported consolidated sales of 1.06 trillion won ($794 million) for the third quarter, down 8.9 percent quarter-on-quarter from 1 trillion won in the previous quarter.
Net profit for the period came in at 19 billion won, down 48.5 percent from 37 billion won the previous quarter and 51.1 percent from 39 billion won in the same period last year. Pre-tax profit also fell to 21.8 billion won, down 12.2 percent quarter-on-quarter and 51.9 percent year-on-year.
A comparison of third-quarter results over the past three years shows the profitability decline in sharper relief. KAI's third-quarter net profit shrank every year — from 67.9 billion won in 2024 to 39 billion won in 2025 and 19 billion won this year — a 72 percent drop in two years. Over the same period, sales rose 17 percent, from 907.2 billion won to 1.06 trillion won, yet the net profit margin tumbled from 7.5 percent in the third quarter of 2024 to 5.6 percent a year later and just 1.8 percent this year.
Third-quarter operating profit reached 79.4 billion won, up 31.9 percent year-on-year and 63.9 percent quarter-on-quarter. However, some analysts say the gains reflect a low base from the third quarter of last year and the second quarter of this year rather than genuine improvement. Against the third quarter of 2024, operating profit is no more than 4.1 percent above the 76.3 billion won recorded then. The operating profit margin also hit 7.5 percent, the lowest third-quarter reading in the past three years from 2024 to 2026.
The same pattern of top-line growth masking weak profitability carried through the first three quarters of this year. Cumulative sales reached 3.32 trillion won, up 49.1 percent from 2.23 trillion won in the same period last year, but cumulative operating profit grew only 1.4 percent to 195 billion won. The cumulative operating profit margin slipped 2.7 percentage points to 5.9 percent from 8.6 percent a year earlier. Cumulative net profit fell 22.2 percent year-on-year to 97.4 billion won, down from 125.2 billion won.
yeongdai@heraldcorp.com
