Hanwha Aerospace, South Korea’s largest defense company, falls 6%

Shares in Hanwha Aerospace, South Korea’s largest defense company, fell more than 6% on Tuesday after the company reported worse-than-expected fourth-quarter revenue and pretax profit.

Sales for the fourth quarter rose 72.56% year-on-year to 8.33 trillion Korean won, but fell short of LSEG’s forecast of 8.64 trillion won.

Pre-tax profit fell 72% to 602 billion won, well below the expected 1.2 trillion won, while operating profit fell 16% to 753 billion won.

Despite the net profit falling 54% to 934 billion won, it exceeded expectations and was a positive topic. According to LSEG’s calculations, net profit was expected to be 717.2 billion won.

Annual revenue soared 137% year-on-year to reach 26.61 trillion Korean won, falling slightly short of the expected 27.01 trillion won.

Pretax profit decreased slightly to 2.15 trillion won, a 19% year-on-year decline, and was lower than the expected 2.73 trillion won.

Hanwha has recorded record operating profits for the fourth consecutive year, and its net profit numbers also exceeded expectations.

Operating profit increased 75% year on year to 3.03 trillion won, while net profit fell 16% year on year to 2.14 trillion won, exceeding the forecast of 1.65 trillion won.

On a year-to-date basis, Hanwha stock is up 18.92%, following a strong rally in 2025 and rising 193% on top of a 154% rise in 2024.

Hanwha is the 11th largest stock on the Kospi, with a market capitalization of approximately $42.03 billion.

The company has received orders from multiple European countries as demand for defense platforms increased after the Russia-Ukraine war.

Since 2022, Hanwha has sold the K9 Thunder self-propelled howitzer and the Chunmu multiple rocket system to Poland, Estonia, Romania, and Norway.