South Korea’s largest defense firm Hanwha Aerospace slumps 6%

Shares of South Korea’s largest defense firm Hanwha Aerospace plunged more than 6% Tuesday, after the company reported worse than expected numbers for its fourth quarter revenue and pre-tax profit on Monday.

Revenue in the fourth quarter rose 72.56% year on year to 8.33 trillion South Korean won, but missed LSEG estimates of 8.64 trillion won.

Pre-tax profit plunged 72% to 602 billion won, a massive miss compared to expectations of 1.2 trillion won, while the company’s operating profit dipped 16% to 753 billion won.

Net profit was a bright spot, coming in above expectations despite a 54% decline at 934 billion won. LSEG estimates had pegged net profit at 717.20 billion won.

Annual revenue skyrocketed 137% year on year to hit 26.61 trillion South Korean won, but marginally missed estimates of 27.01 trillion won.

Pre-tax profit fell slightly to 2.15 trillion won, down 19% from the same period a year ago and missing expectations of 2.73 trillion.

Hanwha had logged its fourth consecutive year of record operating profits, while net profit numbers beat expectations.

Operating profit rose 75% year on year to 3.03 trillion won, while net profit declined 16% year on year to 2.14 trillion won, beating expectations of 1.65 trillion won.

On an year-to-date basis, Hanwha shares have climbed 18.92%, following a blistering rally in 2025 which saw shares climb 193%, on top of a 154% jump in 2024.

Hanwha is the 11th largest stock on the Kospi, with a market cap of about $42.03 billion.

The company has seen demand for its defense platforms grow after the Russia-Ukraine War, with orders from multiple European countries.

Since 2022, Hanwha has sold its K9 Thunder self propelled howitzer to Poland, Estonia, Romania and Norway, as well as its Chunmoo multiple launch rocket systems.