Hanwha Aerospace is projected to record an operating profit approaching 1 trillion won in Q2 2026, according to estimates from six securities firms surveyed within the past month. While profitability in the core ground defense segment is expected to decline compared to last year due to K9 self-propelled howitzer deliveries to Poland and Australia being concentrated in the second half, Hanwha Ocean's improved performance is anticipated to offset this impact. The average Q2 revenue forecast stands at 8.0305 trillion won with operating profit at 965 billion won, representing year-over-year increases of 27.25% and 11.63% respectively, with an estimated operating margin of 12.0%.
Securities Firms Project Q2 Operating Profit at 965 Billion Won
Yonhap Infomax's aggregation of forecasts from six securities firms that provided estimates within the past month shows Hanwha Aerospace's Q2 consolidated revenue at 8.0305 trillion won and operating profit at 965 billion won. Hanwha Ocean's contribution is highlighted as a key factor in defending overall earnings. Baek Ju-ho, a researcher at Hyundai Motor Securities, stated that Hanwha Ocean's Q2 operating profit is expected to exceed 500 billion won, filling the profit gap from ground defense. Jang Nam-hyun, a researcher at Korea Investment & Securities, estimated that ground defense's overseas sales proportion in Q2 would reach 52.7%, down 8.4 percentage points from last year, resulting in both revenue and operating profit declines in that segment compared to the previous year.
Poland and Australia K9 Deliveries Scheduled for Second Half
Kang Tae-ho, a researcher at DS Investment & Securities, analyzed that Q2 Poland-bound Chunmoo deliveries totaled 18 units, fewer than the 18 K9 howitzers and 27 Chunmoo units delivered in the same period last year. K9 shipments to Poland commenced in July, with remaining Chunmoo units also being delivered, leading to expectations that second-half sales will reflect 30 K9 units and over 16 Chunmoo units bound for Poland. Jang projected that second-half ground defense operating profit would increase 51% year-over-year as revenue recognition from Poland, Egypt, and Australia projects accelerates. Baek also anticipated a clear low-first-half-high-second-half earnings pattern driven by expanded K9 and Chunmoo deliveries to Poland.
Spain Joint Development Contract Expected in Q3
Jang Nam-hyun anticipated progress in Spain's self-propelled howitzer project and Poland's third K9 contract. He also noted that negotiations for a ground weapons project exceeding 10 trillion won with Saudi Arabia's Ministry of National Defense are resuming, with increasing prospects for L-SAM exports to the United Arab Emirates. Kang Tae-ho assessed that a joint development contract for tracked self-propelled howitzers with Spain's Indra and Santa Barbara could be signed during Q3, following the resolution of their legal dispute. He analyzed that price competitiveness, performance advantages, and local production strategies would serve as strengths in the U.S. wheeled self-propelled howitzer modernization project. The average target price from six securities firms stands at 1.605 million won, 70.2% above the current stock price of 943,000 won, with Korea Investment & Securities setting the highest target at 2 million won and Hyundai Motor Securities the lowest at 1.39 million won.
FAQ
What is Hanwha Aerospace's projected Q2 2026 operating profit?
Six securities firms surveyed within the past month project Hanwha Aerospace's Q2 2026 operating profit at 965 billion won, representing an 11.63% increase compared to the same period last year.
When are K9 howitzer deliveries to Poland and Australia scheduled?
K9 self-propelled howitzer deliveries to Poland and Australia are concentrated in the second half of 2026, with K9 shipments to Poland commencing in July and analysts expecting 30 K9 units and over 16 Chunmoo units to be delivered to Poland in the second half.
What is the average target stock price for Hanwha Aerospace?
The average target price from six securities firms is 1.605 million won, which is 70.2% higher than the current stock price of 943,000 won, with the highest target set at 2 million won by Korea Investment & Securities.
