Hanwha Aerospace delivered its strongest quarterly performance on record, driven by robust demand for South Korean military equipment across Europe and continued growth in its shipbuilding operations.
The defense contractor reported second-quarter sales of 6.27 trillion won ($4.5 billion), representing a 169% increase from the same period last year. Operating profit surged 156% to 864 billion won, though margins compressed slightly to 13.8% from 14.4% a year earlier.
The land systems division emerged as the standout performer, generating 1.77 trillion won in revenue and 554 billion won in operating profit. The unit benefited from accelerated deliveries of its Chunmoo multiple rocket launcher system to Poland, with 51 units shipped in the first half alone. Management raised full-year delivery guidance from 50 to 80 units.
Hanwha Ocean, the company’s shipbuilding subsidiary, contributed 3.29 trillion won in sales and 372 billion won in profit, led by demand for liquefied natural gas carriers. However, the aerospace division posted a 12 billion won operating loss due to one-off costs and continued losses from its risk-sharing partnership programs.
The company said it plans to expand its order book with a focus on the Middle East and Europe in the second half, while exploring entry into the US ammunition market using proceeds from a recent 4.2 trillion won rights offering.
