Business · Companies · 4 hrs ago
Korea Aerospace Industries beats earnings estimates but trails order target
Korea Aerospace Industries reported stronger third-quarter earnings than analysts expected, even as its new orders remained far below its annual goal.
The South Korean company makes aircraft, including the KF-21 fighter, for domestic and export customers.
Revenue rose 51.6% from a year earlier to 1.0643 trillion won, while operating profit increased 31.9% to 79.4 billion won.
Orders through the first three quarters totalled about 2.2 trillion won, roughly 20% of the company’s 10.4 trillion won target for the year.
Kiwoom Securities lowered its share-price target from 230,000 won to 185,000 won but kept its buy recommendation.
Possible contracts include a 3 trillion won helicopter deal and a KF-21 export agreement with Indonesia, involving 16 aircraft and valued at about 4 trillion won.
Kiwoom expects fourth-quarter operating profit to rise sharply, while the company’s progress toward its annual order goal depends in part on whether these deals are completed.
Korea Aerospace Industries reported third-quarter operating profit above market and Kiwoom Securities estimates.
Revenue rose 51.6% year on year to 1.0643 trillion won, while operating profit increased 31.9% to 79.4 billion won.
Orders through the third quarter totaled about 2.2 trillion won, or roughly 20% of the company’s 10.4 trillion won annual target.
Kiwoom maintained its buy rating but cut its target price from 230,000 won to 185,000 won.
The brokerage said potential fourth-quarter contracts could bring annual orders closer to the target.
- Who
- Korea Aerospace Industries reported the results. Kiwoom Securities assessed them.
- What
- Third-quarter earnings beat estimates, while orders through the quarter reached about 20% of the annual target.
- When
- The results were for the third quarter of 2026. The article was published on November 3, 2026.
- Where
- Not stated
- Why
- Revenue and operating profit benefited from export profitability recovering, including an estimated 40 billion won gain from changes in export project costs linked to a stronger won.
This story does not have two clearly opposing sides.
Korea Aerospace Industries reported revenue of 1.0643 trillion won and operating profit of 79.4 billion won.
The company had secured about 2.2 trillion won in orders, around 20% of its annual target.
Malaysia began full-scale aircraft deliveries under its finished-aircraft export program.
Kiwoom forecast operating profit of 170.2 billion won, up 121.0% year on year.
- Third-quarter revenue
- 1.0643 trillion won
- Third-quarter operating profit
- 79.4 billion won
- Orders through third quarter
- About 2.2 trillion won
- Annual order target
- About 10.4 trillion won
- Kiwoom target price
- Cut from 230,000 won to 185,000 won
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What people are saying
I expect that if discussions on additional orders beyond Indonesia become active, this will act as a catalyst for the share price to rise.