South Korea’s largest defense firm Hanwha Aerospace slumps 6%
A large screen shows images of Unmanned Combat Vessels (USV) at the Hanwha exhibition booth during Security Equipment International (DSEI) at London Excel on September 10, 2025 in London, England.
John Keeble | Getty Images News | Getty Images
Shares of South Korea’s largest defense firm Hanwha Aerospace fell more than 6% on Tuesday after the company reported worse-than-expected numbers for fourth-quarter revenue and pre-tax profit on Monday.
Revenue in the fourth quarter rose 72.56% year-on-year to 8.33 trillion South Korean won, but missed LSEG’s forecasts of 8.64 trillion won.
Pretax profit fell 72% to 602 billion won; This was a huge loss compared to expectations of 1.2 trillion won; The company’s operating profit fell 16% to 753 billion won.
Net profit was a bright spot, beating expectations despite falling 54% to 934 billion won. LSEG estimates had pegged net profit at 717.20 billion won.
Whole year numbers
Annual revenue rose 137% year on year to 26.61 trillion South Korean won, but narrowly missed estimates of 27.01 trillion won.
Pre-tax profit fell slightly to 2.15 trillion won, down 19% from the same period a year ago, below expectations of 2.73 trillion won.
Hanwha achieved record operating profits for the fourth consecutive year, while net profit figures also exceeded expectations.
Operating profit rose 75% year-on-year to 3.03 trillion won, while net profit fell 16% year-on-year to 2.14 trillion won, beating expectations of 1.65 trillion won.
Share the earnings
Year-to-date, Hanwha shares are up 18.92%, following a 154% rise in 2024 and a 193% rise in 2025.
Hanwha is the 11th largest stock on Kospi, with a market capitalization of approximately $42.03 billion.
The company saw increased demand for its defense platforms following the Russia-Ukraine War, with orders coming in from many European countries.
Since 2022, Hanwha has been selling the K9 Thunder self-propelled howitzer as well as the Chunmoo multiple launch rocket systems to Poland, Estonia, Romania and Norway.
