Why did Hanwha Aerospace report a net loss in the third quarter?

Hanwha Aerospace attributed the weaker performance partly to K9 self-propelled howitzer deliveries to Poland being postponed until the fourth quarter. Some weapons deliveries had also been completed ahead of schedule in the second quarter, and the company cited one-off costs.

How did Hanwha Aerospace’s Pratt & Whitney engine partnership affect its aerospace division?

Increased deliveries of geared turbofan engines to its client led to higher losses under the risk- and revenue-sharing partnership with Pratt & Whitney. Under the arrangement, engine suppliers share development and production costs in exchange for a portion of future revenue.

What did Hanwha Aerospace expect to support an earnings recovery in the fourth quarter?

The company expected planned deliveries of K9 howitzers and Chunmoo multiple rocket launchers to Poland to support a recovery. It also pointed to progress on K9 projects in Egypt and Australia.

Hanwha Aerospace swings to Q3 net loss due to delayed weapons deliveries

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Summary

Hanwha Aerospace swung to a net loss in the third quarter, as delayed weapons deliveries and one-off costs weighed on results. The company reported a net loss of 36.7 billion won for July-September, compared with a profit of 699 billion won a year earlier. It attributed part of the decline to K9 howitzer deliveries to Poland being postponed until the fourth quarter. Hanwha expected earnings to recover in the fourth quarter, supported by planned deliveries and progress on projects in Egypt and Australia.

Key Facts

Operating profit fell 46.2 percent year on year to 452 billion won, while revenue declined 6 percent to 6.09 trillion won.
Hanwha Aerospace said some weapons deliveries had been completed ahead of schedule in the second quarter.
The ground defense division recorded revenue of 1.24 trillion won and operating profit of 21.7 billion won.
The company’s order backlog stood at 35 trillion won at the end of September.
The aerospace division posted revenue of 659.9 billion won and an operating loss of 2.4 billion won.

By Yonhap

Published Oct 29, 2026 4:15 pm KST

K9 self-propelled howitzers are deployed during an Army field exercise in Incheon, Oct. 15. Yonhap

Korean defense firm Hanwha Aerospace said Thursday it swung to a net loss in the third quarter, weighed down by delayed weapons deliveries and one-off costs.

The company posted a net loss of 36.7 billion won ($27.5 million) for the July-September period, reversing a profit of 699 billion won a year earlier, according to a regulatory filing.

Operating profit fell 46.2 percent on-year to 452 billion won, while revenue declined 6 percent to 6.09 trillion won.

Hanwha Aerospace attributed the weaker performance partly to the postponement of K9 self-propelled howitzer deliveries to Poland until the fourth quarter. Some weapons deliveries had also been completed ahead of schedule in the second quarter.

The company's ground defense division reported revenue of 1.24 trillion won and operating profit of 21.7 billion won. Its order backlog stood at 35 trillion won as of the end of September.

The aerospace division posted revenue of 659.9 billion won and an operating loss of 2.4 billion won, as increased deliveries of geared turbofan (GTF) engines to its client led to higher losses under its risk- and revenue-sharing partnership (RSP) program with U.S. engine maker Pratt & Whitney.

Under the RSP arrangement, aircraft engine suppliers share development and production costs in exchange for a portion of future revenue.

Hanwha Aerospace expected earnings to recover in the fourth quarter, supported by planned deliveries of K9 howitzers and Chunmoo multiple rocket launchers to Poland, along with progress on K9 projects in Egypt and Australia.

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