Hanwha Aerospace Group Posts Record Q2 Profits on Defense, Shipbuilding Demand

Hanwha Aerospace, South Korea's leading defense contractor, reported record second-quarter revenue of 6.27 trillion won ($4.5 billion), a 169% increase year-on-year, driven by strong land defense sales and stable performance from its shipbuilding unit, Hanwha Ocean. Net profit surged nearly 80% to 287.7 billion won, supported by exports of defense systems like the Chunmoo multiple rocket launcher and equity gains from Hanwha Ocean, which itself returned to profitability with a second-quarter operating profit of 371.7 billion won due to high-value LNG carrier sales. Hanwha Aerospace plans to expand orders in the Middle East and Europe and advance its space ambitions with the upcoming fourth launch of the Nuri rocket, for which it secured exclusive manufacturing and launch rights through 2032. Meanwhile, Hanwha Systems, the group's defense solutions arm, saw a 73.9% rise in net profit to 47 billion won, bolstered by exports of military radar and communication products despite a drop in operating income mainly due to investments in the U.S. shipbuilder Hanwha Philly Shipyard. The overall growth reflects Hanwha Group's diversified strength across defense, shipbuilding, and aerospace sectors, as they focus on productivity improvements, cost-cutting, and new market entries including potential U.S. ammunition ventures. These results highlight Hanwha's strategic positioning amid global defense demand and its increasing footprint in international markets.