Korean defense firms are on track to post impressive first-quarter results, driven by growing international demand. A recent survey by local brokerages, released Sunday, predicts significant year-on-year growth for Korea’s four major defense companies.
The companies include Korea Aerospace Industries (KAI), Hanwha Aerospace, Hyundai Rotem, and LIG Nex1. Analysts expect their combined operating profit to reach 657 billion won ($461 million) for Q1. This figure represents a huge jump from the 197.1 billion won reported during the same period last year.
Their total sales are also set to rise sharply. Forecasts show a 24.5 percent increase to 5.1 trillion won, reflecting the solid global appetite for advanced military equipment.
Among these Korean defense firms, Hanwha Aerospace is expected to lead the pack. Analysts predict its operating profit will soar to 328.7 billion won in Q1, up from 37.4 billion won a year ago. Sales will likely grow 14.7 percent, reaching 2.12 trillion won.
Hanwha’s success comes largely from strong international orders. Its key products, such as the K-9 self-propelled howitzer and the Chunmoo multiple rocket launcher, remain in high demand.
Korean defense firms are benefitting from ongoing global tensions. The prolonged war in Ukraine, increased conflict in the Middle East, and U.S.-China rivalry have all boosted weapons sales.
To maintain momentum, Hanwha plans to invest 11 trillion won by 2028. The company aims to become a global leader, targeting 70 trillion won in sales and 10 trillion won in operating profit by 2035.
Meanwhile, Hyundai Rotem also expects strong results. Demand for its K2 Black Panther battle tank could drive Q1 operating profit to 201 billion won, compared to 44.68 billion won last year. Sales may rise 71.3 percent to 1.28 trillion won.
KAI, the only Korean aircraft maker, predicts a 19.4 percent jump in operating profit to 57.3 billion won. Sales are projected to increase 9.6 percent, reaching 811 billion won.
KAI anticipates even stronger earnings in the second half of the year. The company plans to secure 8.5 trillion won in aircraft orders, including deals for the FA-50 light attack jet and the Surion helicopter, especially in the Philippines and the Middle East.
Clearly, Korean defense firms are entering 2025 with growing momentum and global confidence.
