South Korean defense contractor Hanwha Aerospace delivered a record third-quarter operating profit of 856.4 billion won ($630 million), driven by accelerating weapons exports to Europe and the Middle East, though profitability margins compressed as production ramped up.
Revenue surged 147 percent year-over-year to 6.49 trillion won, while operating profit climbed 79 percent, according to the company’s regulatory filing. Net income reached 712.2 billion won, more than doubling from the prior year.
The land defense division generated 572.6 billion won in operating profit on sales of 2.11 trillion won, benefiting from expanded production of K9 self-propelled howitzers and Chunmoo rocket systems. The recently consolidated Hanwha Ocean shipbuilding unit contributed 289.8 billion won to operating profit.
Operating margins, however, declined to 13.2 percent from 18.1 percent a year earlier, reflecting increased costs as the manufacturer scales up capacity to fulfill contracts. The company maintains an order backlog of 31 trillion won, with approximately 70 percent derived from overseas customers — a segment typically commanding higher margins than domestic sales.
Recent contract wins include a Norwegian order for 24 K9 howitzers announced in September and missile systems for Middle Eastern buyers. The company is constructing manufacturing facilities in Romania to service European defense contracts valued at 1.4 trillion won.
