South Korean defense contractor Hanwha Systems reported an 80% plunge in third-quarter net profit to 8.1 billion won ($6 million), even as its operating profit jumped 44% on robust military equipment orders.
The company’s sales edged up 3% to 639.2 billion won in the quarter, supported by major defense export deals including a 1.2 trillion won radar system contract with Saudi Arabia and equipment deliveries to Poland.
Defense exports now account for about 20% of revenue, up from 17% in the first half, driven by initial shipments of K2 fire control systems to Poland. The company expects this ratio to climb further by 2025 as deliveries to Saudi Arabia ramp up.
The military technology provider is also expanding its footprint in the U.S. through a pending acquisition of Philly Shipyard, where it plans to take a 60% stake. The deal is expected to close next quarter, though specific business plans remain under wraps.
Management forecasts new orders will top 4 trillion won this year, surpassing last year’s 3.8 trillion won, as domestic demand combines with growing international sales. Recent export wins include multi-function radar systems for the UAE and communication networks for Poland’s armed forces.
