Hanwha Aerospace Shares Fall 6% After Earnings Miss Estimate

Shares of Hanwha Aerospace fell more than 6 percent on Tuesday after the company reported fourth-quarter revenue and pre-tax profit below market expectations.

Hanwha Aerospace, South Korea’s largest defence firm, said fourth-quarter revenue rose 72.6 percent year on year to 8.33 trillion won, but missed analyst estimates of 8.64 trillion won, according to LSEG data.

Pre-tax profit fell sharply by 72 percent to 602 billion won, far below expectations of 1.2 trillion won. Operating profit also declined 16 percent to 753 billion won.

Net profit was the only positive surprise, coming in at 934 billion won, despite a 54 percent year-on-year decline. Analysts had expected net profit of 717.2 billion won.

Full-Year Results

For the full year, Hanwha reported revenue of 26.61 trillion won, up 137 percent from a year earlier, but slightly below estimates of 27.01 trillion won.

Pre-tax profit declined 19 percent year on year to 2.15 trillion won, missing expectations of 2.73 trillion won.

Operating profit rose 75 percent to 3.03 trillion won, marking the company’s fourth consecutive year of record operating profit.

Net profit for the year fell 16 percent to 2.14 trillion won, but still exceeded analyst expectations of 1.65 trillion won.

Share Performance and Orders

Despite Tuesday’s drop, Hanwha shares remain up 18.9 percent year to date. The stock surged 193 percent in 2025, following a 154 percent rise in 2024.

Hanwha Aerospace is the 11th largest company on South Korea’s Kospi index, with a market capitalisation of around $42 billion.

The company has seen rising demand for its defence systems following the Russia–Ukraine war. Since 2022, Hanwha has secured defence orders from several European countries, including sales of its K9 Thunder self-propelled howitzer and Chunmoo multiple rocket launch systems.