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Hanwha Aerospace, HD HHI log record revenue on banner year for K-defense

Published: 10 Feb. 2026, 07:00 Updated: 10 Feb. 2026, 14:13

Hanwha Aerospace's Chunmoo multiple rocket launcher system [HANWHA AEROSPACE]

Korea’s defense and shipbuilding heavyweights posted record revenue and profit last year, with Hanwha Aerospace and HD Hyundai Heavy Industries (HD HHI) riding strong overseas demand for weapons systems and high-value ships.

Hanwha Aerospace, widely seen as the bellwether of Korea’s defense industry, reported consolidated sales of 26.61 trillion won ($18.18 billion) and operating profit of 3.03 trillion won last year, the company said in a regulatory filing on Monday. The figures represent on-year increases of 136.7 percent and 75.2 percent each, marking the company’s third consecutive year of record results, while the company's shares surged 162.9 percent over the course of last year.

The ground defense division was the main driver, posting an operating profit of 2.01 trillion won — surpassing the 2 trillion won mark for the first time. The strong performance followed aggressive expansion into Europe, including exports of K9 self-propelled howitzers to Norway and Chunmoo multiple rocket launchers to Estonia.

Domestic contracts also contributed, including a 705.4 billion won deal to mass-produce the L-SAM long-range surface-to-air missile and a 225.4 billion won contract for Cheongeom air-launched antitank guided missiles for helicopters. As of the end of last year, the company’s ground defense division’s order backlog stood at about 37.2 trillion won.

Korea’s Nuri rocket lifts off for a fourth launch from the Naro Space Center in Goheung County, South Jeolla, on Nov. 27, 2025. [KIM KYOUNG-ROK]

The aerospace division, which had struggled in recent years, returned to profitability with an operating profit of 2.3 billion won, helped by growth in both civilian and defense sales. A major event this year will be the fifth launch of a Nuri space rocket, scheduled for the third quarter. Hanwha Ocean also posted an operating profit of 1.11 trillion won last year.

The outlook for this year remains upbeat. Hanwha Aerospace said it signed a $922 million contract last month with Norway’s Defence Materiel Agency to supply 16 Chunmoo launchers, guided missiles and integrated logistics support. The deal drew attention as Hanwha beat competitors including defense companies Lockheed Martin and KNDS. Deliveries to Poland this year are expected to include more than 30 K9 howitzers and over 40 Chunmoo launchers.

“We believe exports of Chunmoo to North America are also possible,” a Hanwha Aerospace official said during a conference call. “We are closely monitoring demand for Chunmoo systems in Eastern Europe, Northern Europe and the Middle East, including existing K9 customers such as Estonia and Norway.”

The USNS Alan Shepard, a U.S. Navy vessel, departs after completing scheduled maintenance at a pier near HD Hyundai Heavy Industries’ medium-sized ship division in Ulsan. [HD HYUNDAI HEAVY INDUSTRIES]

HD Korea Shipbuilding & Offshore Engineering, which also reported its 2025 earnings on Monday, said its sales rose 17.2 percent on year to 29.93 trillion won, while operating profit jumped 172.3 percent to 3.9 trillion won — both all-time highs. The company attributed the results to increased deliveries of high-value ships such as liquefied natural gas (LNG) carriers and continued productivity improvements across its shipbuilding subsidiaries.

The standout performer was HD HHI, often dubbed the flagship of Korea’s shipbuilding sector. Operating profit surged 188.9 percent to 2.04 trillion won in 2025, driven mainly by a strong performance in commercial vessels. The company merged with affiliate HD Hyundai Mipo last year.

“LNG carrier prices are expected to rise, and early orders increased in the second half of last year and early this year in anticipation of higher ship prices,” an HD Korea Shipbuilding & Offshore Engineering representative said. “As Chinese participation is increasingly excluded from overseas projects, Korea’s share of the LNG shipbuilding market is likely to be maintained.”

HD HHI is also expanding its naval maintenance, repair and overhaul (MRO) business. The company recently won a contract to conduct scheduled maintenance on the USNS Cesar Chavez, a 41,000-ton dry cargo ship assigned to the U.S. Navy’s Seventh Fleet. It marks the company’s second U.S. Navy MRO contract, following the USNS Alan Shepard deal in August last year.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]