Business · Companies · 3 hrs ago
Hanwha Aerospace profit falls 47% as broker cuts target price
Hanwha Aerospace’s third-quarter operating profit fell 47% from a year earlier, to 452 billion won.
The South Korean defense and aerospace company’s land-defense business was hit by fewer deliveries of high-margin K9 howitzers and Chunmoo rocket systems to Poland.
A broker also cited costs linked to an accident at the company’s Daejeon site, along with weaker results in other business areas.
Kiwoom Securities cut its target price from 1.58 million won to 1.37 million won, reflecting lower profit estimates, but kept its buy rating.
The broker expects Polish deliveries to lift results in the fourth quarter, as K9 and Chunmoo shipments are concentrated in that period.
It also said Chunmoo’s annual delivery guidance had risen from at least 40 units to at least 60.
For 2027, the broker expects land-defense sales and operating profit to grow, supported by a Romanian K9 project, more exports and increased Polish deliveries.
Hanwha Aerospace’s third-quarter operating profit fell 47% year on year to 452 billion won.
Kiwoom Securities cut its target price for the company from 1.58 million won to 1.37 million won, while keeping its buy rating.
The company’s consolidated third-quarter revenue fell 6% to 6.0943 trillion won.
Lower deliveries of higher-margin K9 and Chunmoo systems to Poland weighed on the ground defence business.
Kiwoom expects earnings to recover in the fourth quarter as deliveries to Poland increase.
- Who
- Hanwha Aerospace and Kiwoom Securities.
- What
- Hanwha Aerospace reported a 47% year-on-year fall in third-quarter operating profit, and Kiwoom cut its target price.
- When
- The report was published on October 30, 2026, and covers the third quarter and fourth-quarter outlook.
- Where
- Not stated
- Why
- Lower deliveries of higher-margin K9 and Chunmoo systems to Poland and a 46 billion won provision weighed on earnings.
This story does not have two clearly opposing sides.
Hanwha Aerospace’s consolidated revenue fell 6% year on year and operating profit fell 47%.
Kiwoom Securities cut its target price from 1.58 million won to 1.37 million won and maintained its buy rating.
Kiwoom expects increased deliveries to Poland to support an earnings recovery.
- Third-quarter operating profit
- 452 billion won, down 47% year on year
- Third-quarter consolidated revenue
- 6.0943 trillion won, down 6% year on year
- Kiwoom target price
- Cut from 1.58 million won to 1.37 million won
- Ground defence revenue
- 1.2455 trillion won, down 41% year on year
- Ground defence operating profit
- 21.7 billion won, down 96% year on year
- Provision
- 46 billion won, including 30 billion won in one-off costs linked to an accident at the Daejeon site
1 source
What people are saying
I lowered the 2027 standalone net profit estimate by 13% and adjusted the target price to reflect a decline in the value of major subsidiaries’ stakes.
With deliveries of K9 and Chunmoo to Poland concentrated in the fourth quarter, revenue and profit growth in the ground defence division will resume.
The annual delivery guidance for Chunmoo was also raised from more than 40 units to more than 60 units.